Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 June 2015
Former National Guardsman Sentenced to Two Years Probation for Stealing FirearmRead the Press Release
CONCORD, N.H. – A former private in the New Hampshire National Guard and a current resident of Plaistow, New Hampshire, Eric L. Evers, was sentenced to two years’ probation for stealing a firearm from the New Hampshire National Guard Armory in Manchester, announced Acting United States Attorney Donald Feith.
According to documents filed in United States District Court, Evers, 34, joined the National Guard in December 2009. While participating in a quarterly inspection and maintenance of firearms at the National Guard Armory in Manchester on March 9, 2014, Evers concealed a 9mm Berretta pistol in his pants pocket, left the armory, and hid the pistol in his truck. When Evers returned to the armory, a thorough search for the pistol was being conducted by other guardsmen. This caused Evers to leave the armory, remove the pistol from his truck and bury it in a snowbank near an entrance to the armory’s parking lot, where it was found by another guardsman three days later.
The case was investigated by the U.S. Army, Criminal Investigation Division, the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Manchester Police Department and prosecuted by Assistant United States Attorney Bob Kinsella.
Former Member of the United States House of Representatives Charged with Failing to File Federal Income Tax ReturnsRead the Press Release
CHICAGO ― Melvin Reynolds, 63, a former member of the United States House of Representatives, was indicted yesterday on federal charges alleging that he failed to file income tax returns for the years 2009 through 2012.
Reynolds will appear for his arraignment at a date yet to be determined by the U.S. District Court
According to the indictment, Reynolds received gross income in each year in excess of the minimum amount required to file a tax return. As a result, he was required by law, by April 15 of the following year, to file an income tax return (Form 1040 and accompanying attachments). Reynolds willfully failed to file income tax returns for four consecutive years – 2009, 2010, 2011 and 2012.
Each count of failing to file a federal income tax return carries a maximum sentence of one year in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced the indictment with Stephen Boyd, Special Agent in Charge of the Internal Revenue Service Criminal Investigative Division Chicago.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and William E. Ridgway.
Indictment
Former Boaz Housing Authority Comptroller Charged with Theft of HUD FundsRead the Press Release
BIRMINGHAM -- Federal prosecutors on Thursday charged the former comptroller for the Boaz Housing Authority with stealing federal Housing and Urban Development funds, announced U.S. Attorney Joyce White Vance and HUD Special Agent in Charge Nadine E. Gurley.
The one-count information filed in U.S. District Court charges STANLEY J. KNOP, 47, of Crossville, with stealing HUD funds from Aug. 4, 2010, through Oct. 25, 2013, while he was comptroller of the Boaz Housing Authority, which receives HUD funding. The United States seeks forfeiture of $160,618 that has been identified as proceeds of the theft.
“The U.S. Attorney’s Office is dedicated to holding accountable corrupt public employees who steal federal funds entrusted to their oversight," Vance said. "The substantial sum stolen from the Boaz Housing Authority was much needed by that community, but it was deprived of those funds by the acts of a selfish individual. This prosecution can see that those funds are restored to the community,” she said.
“The charges today demonstrate our commitment to combat the theft of HUD funds, especially when the funds involved are earmarked to assist our neediest families," Gurley said. "The United States Department of Housing and Urban Development, Office of Inspector General, will continue to partner with other federal, state and local authorities to ensure that corrupt individuals do not use their positions to enrich themselves at the government’s expense," she said.
Knop could face a maximum penalty of 10 years in prison and a $250,000 fine if convicted of the theft.
HUD-OIG and the FBI investigated the case, which Assistant U.S. Attorney Laura D. Hodge is prosecuting.
The public is reminded that an indictment or information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former American Samoa Government Official Sentenced to 22 Months in PrisonRead the Press Release
Evelyn Langford 49, of Copperas Cove, Texas, was sentenced today to 22 months in prison and ordered to pay $260,000 in restitution for her convictions for wire fraud and bribery, announced U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division and Special Agent in Charge Paul Delacourt of the FBI’s Honolulu Division.
Langford pleaded guilty on March 20, 2015, to one count of wire fraud and one count of bribery. According to the plea agreement, Langford admitted that in 2012 she was the Director of the Department of Human Resources of the Government of American Samoa (ASG), a territory of the United States located in the South Pacific Ocean. As part of her duties, she was charged with partial oversight of a $24.8 million U.S. Department of Labor (DOL) National Emergency Grant (NEG). The grant was awarded to American Samoa in the wake of a September 2009 tsunami that caused significant damage in American Samoa. Langford admitted that while administering the funds, she accepted payments from a contractor. She then provided that contractor favorable official action.
In February 2012, a company known as the Native Hawaiian Holding Company Inc. (NHHC) entered into a service contract with the ASG. Under this contract, NHHC received approximately $4.7 million of the NEG funds to develop a “contact center” (or call center) industry in American Samoa. The NEG service contract was signed by an NHHC representative, Quin Rudin, and by Langford and other ASG representatives. The contract also contained provisions generally prohibiting employees of the ASG from soliciting or receiving gratuities from NHHC.
Notwithstanding the prohibition from soliciting gratuities, Langford nevertheless requested that Rudin extend her a “loan,” which Rudin agreed to do. Langford received a $10,000 payment from Rudin in April 2012 and a $250,000 payment in May 2012. After receiving the funds, Langford provided favorable official action on behalf of Rudin and NHHC. For example, Langford admitted making arrangements to have NHHC representatives, including Rudin, meet with the Governor of American Samoa for the purpose of “pitching” business ideas to him, including proposals regarding transportation and medical development projects. In addition, Langford concealed the true nature and scope of her dealings with Rudin and NHHC, including by failing to advise other employees of the ASG and employees of the DOL in San Francisco that she had received gifts and payments from NHHC and Rudin and from companies associated with him. Langford, waived indictment and was charged in an information on Jan. 15, 2015. She was charged with wire fraud and bribery concerning programs receiving federal funds in violation.
The individual who made the payments to Langford, Rudin, has been prosecuted separately for a scheme to defraud Cisco Systems Inc., and its subsidiary Cisco Systems Capital Corporation, related to the lease of Cisco equipment. Rudin’s case is pending in the Northern District of California.
The sentence was handed down by District Judge Jon S. Tigar of the Northern District of California, following the guilty plea. Judge Tigar also sentenced the defendant to a three year period of supervised release and ordered her to pay $260,000 in restitution to the ASG. The defendant will begin serving the sentence on Sept. 25, 2015.
The prosecution is the result of a two-year investigation by agents of the FBI’sHonolulu and San Francisco Divisions. The case is being prosecuted by Assistant U.S. Attorneys Kyle F. Waldinger and Hallie Mitchell Hoffman of the Northern District of California, with the assistance of Bridget Kilkenny, Jessica Meegan, Mary Mallory and Allen Williams.
Former American Samoa Government Official Sentenced to 22 Months in PrisonRead the Press Release
SAN FRANCISCO – Evelyn Langford was sentenced today to 22 months in prison and ordered to pay $260,000 in restitution for her convictions for wire fraud and bribery, announced United States Attorney Melinda Haag and Federal Bureau of Investigations Special Agents in Charge David J. Johnson (San Francisco) and Paul Delacourt (Hawaii).
Langford, 49, of Copperas Cove, Texas, pleaded guilty on March 20, 2015, to one count of wire fraud and one count of bribery. According to the plea agreement, Langford admitted that in 2012 she was the Director of the Department of Human Resources of the Government of American Samoa (ASG), a territory of the United States located in the South Pacific Ocean. As part of her duties, she was charged with partial oversight of a $24.8 million U.S. Department of Labor (DOL) National Emergency Grant (NEG). The grant was awarded to American Samoa in the wake of a September 2009 tsunami that caused significant damage in American Samoa. Langford admitted that while administering the funds, she accepted payments from a contractor. She then provided that contractor favorable official action.
In February 2012, a company known as the Native Hawaiian Holding Company, Inc. (NHHC) entered into a service contract with the ASG. Under this contract, NHHC received approximately 4.7 million dollars of the NEG funds to develop a “contact center” (or “call center”) industry in American Samoa. The NEG service contract was signed by an NHHC representative (Quin Rudin) and by Langford and other ASG representatives. The contract also contained provisions generally prohibiting employees of the ASG from soliciting or receiving gratuities from NHHC.
Notwithstanding the prohibition from soliciting gratuities, Langford requested that Rudin extend her a “loan,” which Rudin agreed to do. Langford received a $10,000 payment from Rudin in April 2012 and a $250,000 payment in May 2012. After receiving the funds, Langford provided favorable official action on behalf of Rudin and NHHC. For example, Langford admitted making arrangements to have NHHC representatives, including Rudin, meet with the Governor of American Samoa for the purpose of “pitching” business ideas to him, including proposals regarding transportation and medical development projects. In addition, Langford concealed the true nature and scope of her dealings with Rudin and NHHC. Langford did not advise other employees of the ASG nor employees of the DOL in San Francisco that she had received gifts and payments from NHHC, from Rudin, or from companies associated with Rudin. Langford, waived indictment and was charged in an information on January 15, 2015. She was charged with wire fraud, in violation of 18 U.S.C. § 1343, and bribery concerning programs receiving federal funds, in violation of 18 U.S.C. § 666.
The individual who made the payments to Langford – Quin Rudin – has been prosecuted separately for a scheme to defraud Cisco Systems, Inc. and its subsidiary, Cisco Systems Capital Corporation, related to the lease of Cisco equipment. Rudin’s case is pending in the Northern District of California (case number CR 13-00149 JST).
The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge, following the guilty plea. Judge Tigar also sentenced the defendant to a three year period of supervised release and ordered her to pay $260,000 in restitution to the ASG. The defendant will begin serving the sentence on September 25, 2015.
Assistant U.S. Attorneys Kyle F. Waldinger and Hallie Mitchell Hoffman are prosecuting the case with the assistance of Bridget Kilkenny, Jessica Meegan, Mary Mallory, and Allen Williams. The prosecution is the result of a two-year investigation by agents of the Federal Bureau of Investigation located in Honolulu, Hawaii and San Francisco, California.
Folk Nation/Gangster Disciples Gang Member Sentenced to 20 Years in Federal Sex Trafficking ViolationsRead the Press Release
In El Paso this morning, 24-year-old Folk Nation/Gangster Disciples member Emmanual Lockhart was sentenced to 20 years in federal prison for federal sex trafficking violations announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Philip R. Martinez ordered that Lockhart pay a $2,500 fine and be placed on supervised release for a period of ten years after completing his prison term.
On January 16, 2015, jurors found Lockhart and three other gang members--25-year-old Richard Gray, 26-year-old Deion Lockhart and 29–year-old former El Paso County juvenile probation officer Timothy McCullouch, Jr.—guilty of conspiracy to commit sex trafficking of persons.
Testimony during trial revealed that between May 2012 and March 2013, the defendants were involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang. The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and, in Colorado.
Yesterday, Judge Martinez sentenced Richard Gray and Deion Lockhart to life imprisonment and 300 months imprisonment, respectively, for their roles in the sex trafficking scheme. McCullouch is scheduled to be sentenced at 8:30am on Monday, June 29, 2015. McCullouch faces up to life in federal prison.
This investigation was conducted by the ACTeam (Anti-Trafficking Coordination Team) comprised of personnel from Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), and U.S. Department of Labor together with the El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these defendants on behalf of the Government.
Five Waco Area Aryan Brotherhood Members and Associates Sentenced to Federal Prison for Role in Methamphetamine Distribution OperationRead the Press Release
In Waco, a federal district judge sentenced five Aryan Brotherhood (AB) members and associates to federal prison for their roles in a methamphetamine distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
During yesterday afternoon’s hearing, United States District Judge Walter S. Smith sentenced:
- Robert Eaton (aka “Compound Rob”), age 40, of Kempner, TX, to 35 years imprisonment followed by five years of supervised release;
- Robert Helms, age 30, of Temple, to 211 months imprisonment followed by five years of supervised release;
- Eric Ganos, age 40, of Temple, to 15 years imprisonment followed by five years of supervised release;
- Kirt Easter, age 49, of Belton, to 10 years imprisonment followed by five years of supervised release; and,
- Sonya Whitenburg, age 23, of Flat, TX, to five years imprisonment followed by five years of supervised release.
In addition to the prison and supervised release terms, Judge Smith ordered each defendant to pay a $1,000 fine.
“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
To date, 24 individuals have been sentenced in connection with this investigation. Sentences previously handed down range from 21 months to 188 months in federal prison. Sentencings for eight co-defendants are pending. Vicki Kay Levy, age 52, of Belton, and Wayne Martin Huisinger, age 55, of Belton are set for 1:00pm on July 1, 2015. Henry David Walker (aka “Stalker”), age 52, of Temple; Ronnie Knepler, age 54, of Belton; and Jose Rodriguez, age 25, a resident alien living in Dallas, are scheduled to be sentenced on July 8, 2015. Sylvia O’Neal, age 41, of Temple, is scheduled to be sentenced on August 5, 2015. Amanda Petrie, age 35, of Temple, is set for 1:00pm on August 12, 2015. Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 2, 2015.
All of the defendants named above pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Robert Eaton also pleaded guilty to one count of possession of a firearm during a drug trafficking crime and one count of felon in possession of a firearm. David Henry Walker also pleaded guilty to two counts of felon in possession of a firearm. During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation. Both remain in federal custody awaiting jury selection and trial scheduled for August 17, 2015, before Judge Smith. Cooper and Voerhis are charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine and face between five and 40 years imprisonment upon conviction.
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris are prosecuting this case on behalf of the Government.
First Jamaican Man Extradited to United States in Connection with International Lottery Scheme Sentenced to PrisonRead the Press Release
A Jamaican man was sentenced today in Fort Lauderdale, Florida, after he pleaded guilty to his role in an international lottery scheme against elderly victims in the United States.
Damion Bryan Barrett, 28, was sentenced by U.S. District Court Judge William J. Zloch of the Southern District of Florida to serve 46 months in prison and five years of supervised release. Barrett was also ordered to pay $94,456 in restitution.
Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jan. 2015 in Jamaica based on the United States’ request that he be extradited to this country. Barrett was extradited to the United States on Feb. 12 and was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.
On April 10, Barrett pleaded guilty to one count of conspiracy to commit wire fraud. The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.
“This sentence sends a very strong message that scammers operating in foreign countries will be held accountable for the laws they break in the United States,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department is committed to bringing these international fraudsters to justice.”
“This case is an excellent example of coordination between domestic and international law enforcement agencies to hold those who facilitate and participate in fraudulent schemes accountable,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “We will continue to foster this cooperation in order to crackdown on international lottery fraud so that members of our community are protected and are not deprived of their hard earned savings.”
As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings. Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Ferrer commended the investigative efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service. The case was prosecuted by Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bertha Mitrani of the Southern District of Florida.
First Jamaican Man Extradited to United States in Connection with International Lottery Scheme Sentenced to PrisonRead the Press Release
A Jamaican man was sentenced today in Fort Lauderdale, Florida, after he pleaded guilty to his role in an international lottery scheme against elderly victims in the United States.
Damion Bryan Barrett, 28, was sentenced by U.S. District Court Judge William J. Zloch of the Southern District of Florida to serve 46 months in prison and five years of supervised release. Barrett was also ordered to pay $94,456 in restitution.
Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jan. 2015 in Jamaica based on the United States’ request that he be extradited to this country. Barrett was extradited to the United States on Feb. 12 and was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.
On April 10, Barrett pleaded guilty to one count of conspiracy to commit wire fraud. The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.
“This case is an excellent example of coordination between domestic and international law enforcement agencies to hold those who facilitate and participate in fraudulent schemes accountable,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “We will continue to foster this cooperation in order to crackdown on international lottery fraud so that members of our community are protected and are not deprived of their hard earned savings.”
“This sentence sends a very strong message that scammers operating in foreign countries will be held accountable for the laws they break in the United States,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department is committed to bringing these international fraudsters to justice.”
As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings. Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
U.S. Attorney Ferrer and Principal Deputy Assistant Attorney General Mizer commended the investigative efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Bertha Mitrani of the Southern District of Florida and Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Felon from Pojoaque Sentenced to Federal Prison for Unlawfully Possessing AmmunitionRead the Press Release
ALBUQUERQUE – Nicholas Mondragon, 32, of Pojoaque, N.M., was sentenced late yesterday afternoon in federal court in Albuquerque, N.M., to a year and a day in prison for being a felon in possession of ammunition. Mondragon will be on supervised release for three years after completing his prison sentence.
Mondragon pled guilty on July 17, 2014, to a felony information charging him with being a felon in possession of ammunition. In entering the guilty plea, Mondragon admitted that on Feb. 25, 2014, he purchased a box of ammunition in Las Vegas, N.M. Mondragon made the purchase despite knowing that he was prohibited from doing so because he had previously been convicted of multiple felony offenses including disposing of stolen property, aggravated assault against a household member, attempt to commit a felony, theft of a rental property, and theft of government property.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney William J. Pflugrath.
Federal Grand Jury in Fort Wayne Returns a 7 Count IndictmentRead the Press Release
Fort Wayne, Indiana - The United States Attorney's Office announced the return of an indictment charging Kelly Custer, 53, of Fort Wayne, Indiana; William Custer, Jr., 26 of Fort Wayne, Indiana; Ashley Custer, 25, of Fort Wayne, Indiana; and Sidney Custer, 24, of New Haven, Indiana --- with 1 count of conspiracy to commit wire fraud. Kelly Custer was also charged with 3 counts of wire fraud and 3 counts of interstate communications with intent to extort. The government is also seeking forfeiture by way of a money judgment in the amount of approximately $1.5 million as well as forfeiture of real property. .
According to documents filed in this case, on March 19, 2015, individuals reported to law enforcement that they were being extorted by the mafia. The individuals provided information detailing an extortion scheme that started in 2007 when they lived in Fort Wayne and continued as they moved to Florida where they currently reside.
According to the individuals, the extortion began after they were informed by Kelly Custer that the mafia had determined that they owed a debt and that if they did not pay the debt their lives, their friends’, families’ lives or her life would be in jeopardy. The individuals indicated that they initially received all the information concerning the extortion through Kelly Custer, and that she relayed the threats and demands to them personally. After the individuals moved to Florida, however the threats continued from Kelly Custer in the form of texts causing the individuals to believe some messages came from actual mafia members. In February of 2015, the individuals were informed that Kelly Custer had been killed as a result of problems she had with the mafia; however the individuals continued to receive threatening text messages from persons identifying themselves to be mafia members utilizing Kelly Custer’s phone.
The individuals made the demanded payments primarily to Kelly Custer, but also directed payments William Custer, Jr., Ashley Custer, and Sidney Custer on numerous occasions as they were instructed to do in the threatening text messages. The individuals reported that, in response to the threatening text messages, they had paid “the mafia” approximately 1.5 million over the past seven years, and approximately $250,000-$300,000 since moving to Florida. They said that, in response to threats they usually paid between $3,000 and $10,000 at a time, but that on at least one occasion they paid $50,000 after receiving a threatening message indicating that if they did not pay that amount a friend’s daughter would be killed.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nathaniel C. Henson.
The United States Attorney's Office emphasized that an Indictment 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.
Drug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
SAN DIEGO – Drug trafficker Juan Castro-Navarro - who a prosecutor contends used his cell phone to document the kidnapping, torture and murder of a man in retaliation for the theft of 10 pounds of methamphetamine - was sentenced in federal court today to 182 months in prison.
According to court documents, Castro, aka “J,” sent photos of the victim in a series of text messages to fellow traffickers and his girlfriend or wife, at one point telling her during one exchange: “I just want you to know that I love you guys and that I’m only going to kill one more. I have never killed anyone who didn’t deserve it. I’ll see you later.”
Upon receiving the images, the girlfriend replied: “What is this? Are you OK? Thank God. Be careful my love. I love you with all my heart.”
In other text exchanges, Castro and other traffickers bent on revenge for the robbery of the methamphetamine used emoticons to express feelings. According to court records, one individual, identified as Pokemon, texted: “Did you beat him or choke him?” Castro replied: “The second.” Pokemon’s response, “Very well,” and then he used a semi-colon and a parenthesis to denote a winking face.
Castro pleaded guilty on January 13, 2015, to conspiracy to distribute over 40 kilograms of methamphetamine and two kilograms of heroin. In furtherance of the conspiracy, Castro admitted that he managed other codefendants in the distribution of methamphetamine and heroin within California, and from California to Utah, Washington and other parts of the United States. He was sentenced today by U.S. District Judge Gonzalo P. Curiel, who granted the government’s request for a sentencing enhancement because of the evidence of violence found on Castro’s cell phone. At the sentencing hearing, Judge Curiel stated that Castro had become a “monster” based on the violence shown in the case, and deemed the narcotics that Castro trafficked within the United States “poison.”
U.S. authorities did not charge Castro with murder because the U.S. government lacked jurisdiction since it appears the victim was not a U.S. citizen and the crime occurred in Tijuana. However, in order to get the sentencing enhancement, the prosecutor filed, among other things, a supplemental sentencing document – a newspaper article. The article from a Tijuana newspaper said that a dead person wrapped in a blanket, wearing a black sweatshirt and jeans and showing signs of beating on his entire body, was found on January 23, 2014 – the day after Castro sent the text messages. The victim in the text message photos had been wearing the same clothing.
In the spring of 2013, HSI agents began investigating Castro and his distribution network. Their investigation indicated that Castro was a narcotics broker who would pair Mexico-based sources of supply with customers outside California, and facilitate the transportation of narcotics to the customers. To further the investigation, in November 2013 court authorization was received to intercept two telephones used by Castro. During the first 30-day period of interception, agents successfully seized 19 pounds of methamphetamine and over two pounds of heroin from a load car leaving a stash house, located in Ontario, California, used by Castro. Following the seizure, based on interceptions indicating that the stash house was being emptied, a court-authorized search was executed at the stash house and agents seized an additional 41 pounds of methamphetamine, $68,850 and three firearms.
According to court documents, in January 2014, interception continued on one of Castro’s telephones. While intercepting Castro’s telephone, agents learned that Castro and codefendant Oscar Ureta-Cervantes, who has also pleaded guilty to conspiracy to distribute methamphetamine and heroin and awaits sentencing, and another individual known as Marlon coordinated the sale of 10 pounds of methamphetamine. Ureta was to deliver the methamphetamine to an individual known as David in Los Angeles. However, on the morning of January 22, 2014, Ureta was robbed of the 10 pounds of methamphetamine. In retaliation and in order to recover the stolen methamphetamine, a gang member associated with David was kidnapped in Tijuana, Mexico by Marlon and other individuals.
After the kidnapping, Castro joined Marlon. Castro then took photographs of the kidnapped victim with his cell phone and sent them to Ureta, and the girlfriend and others. The first photograph shows an individual with a black eye, tied and taped, sitting in a chair with hands behind his back. The victim is wearing a black sweatshirt and green/gray jeans. After Castro sent the first photograph, he sent a message to Ureta, stating: “I’m so f---ing pissed and these people are doing as I say.” In another conversation, Castro informed Ureta that they were “extracting information” from the victim.
In another conversation, Castro informed Ureta: “I haven’t killed him because he says he is going to bring me 20 pieces” [units of narcotics]. Castro then sent another photograph to Ureta. The photograph shows a person wearing a black and white jacket holding down the victim with one knee on the victim’s back as the person pulls on one end of a baseball bat. The victim is face down on a concrete floor with his pants half off. Another person in a blue plaid shirt is holding the victim’s head down. A third person, wearing black boots, is standing nearby holding a baseball bat.
Half an hour later, Castro sent Ureta another photograph of the victim. The photograph shows the victim, face down and naked from the waist down, with a green plastic bag over his head as one person is stepping on the back of the victim’s head, another is holding the victim’s arms behind his back, and a third is stepping on the victim’s legs. The victim’s buttocks show signs of bruising. Castro then stated that the victim was “gone.” Shortly thereafter, Castro admitted via text message to Pokemon, as noted above, that the victim had been choked. Castro then sent Ureta a final photograph of the victim. The last photograph shows a lifeless body, wrapped in a blanket.
During the torture, Castro also sent his girlfriend the photographs described above and several messages, telling her not to worry because he was working. Castro instructed her to “look at it [the first photograph] and erase it,” and further reminded Eloisa “not to forget to erase” their conversations. Then, in the early morning hours of January 23, 2014, Castro messaged his girlfriend: “Open up, Hun,” showing that Castro had arrived home.
DEFENDANT Juan Castro-Navarro Age: 43 Hometown: Culiacan, Sinaloa, Mexico CHARGESConspiracy to Distribute Methamphetamine and Heroin – Title 21, U.S.C., Sections 841(a)(1) and 846
INVESTIGATING AGENCIES
Maximum penalty: Life imprisonment and a mandatory minimum term of 10 years and $10 million fineDepartment of Homeland Security, Homeland Security Investigations (HSI)
Cranston, Warwick Police Investigation Leads to Federal Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Dennis Bernard, 29, of Cranston, arrested by Cranston and Warwick Police on Thursday on federal drug trafficking charges, was ordered to home confinement with GPS monitoring following an initial appearance today in U.S. District Court in Providence, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Warwick Police Chief Colonel Stephen M. McCartney.
Bernard is charged by way of a federal criminal complaint with one count each of possession with the intent to distribute 28 grams or more of crack cocaine, possession with the intent to distribute heroin, and distribution of crack cocaine.
According to an affidavit in support of a criminal complaint filed with the court, during the month of June, members of the Cranston Police Special Investigations Unit and the Warwick Police Special Operations Group worked collaboratively to investigate Bernard’s alleged drug trafficking activities in Cranston and Warwick. During the investigation, a Warwick undercover detective allegedly made at least four purchases of crack cocaine.
On Thursday, one day after the alleged fourth purchase, law enforcement executed a court authorized search warrant at Bernard’s Cranston residence where they located and seized nearly 45 grams of crack cocaine and nearly 21 grams of heroin stashed inside a backpack found hidden in bedroom closet, and $5,000 in cash found concealed inside a panel in a bathroom. Additionally, law enforcement seized $1,251 in cash and 2.4 grams of crack cocaine located in the kitchen, and various items used in the packaging and distribution of drugs.
Law enforcement also seized a BMW automobile, a Rolex watch and other assorted jewelry which the investigation revealed were allegedly purchased by Bernard with proceeds allegedly derived from the sale of crack cocaine and heroin.
A criminal complaint 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. Attorneys Pamela E. Chin and Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force assisted Cranston and Warwick Police in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact:
Jim Martin
(401) 709-5357
Email: [email protected]
on Twitter @USAO_RI
Child Pornography SentenceRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that Joshua Hamilton Purvis was sentenced for possession of child pornography in violation of 18 U.S.C. Section 2252A(a)(5)(B). Purvis was sentenced to serve 120 months imprisonment and a life time term of supervised release by Judge Kristi Dubose. A minimum mandatory sentence of 120 months imprisonment is required when the defendant has prior qualifying convictions. He was also required to obtain mental health treatment, forfeit his telephone and pay a $100 Special Assessment.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney's Office for the Southern District of Alabama, AUSA Sean P. Costello.
Child Pornography SentenceRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that Joshua Hamilton Purvis was sentenced for possession of child pornography in violation of 18 U.S.C. Section 2252A(a)(5)(B). Purvis was sentenced to serve 120 months imprisonment and a life time term of supervised release by Judge Kristi Dubose. A minimum mandatory sentence of 120 months imprisonment is required when the defendant has prior qualifying convictions. He was also required to obtain mental health treatment, forfeit his telephone and pay a $100 Special Assessment.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney's Office for the Southern District of Alabama, AUSA Sean P. Costello.
Barge Captain Sentenced to Six Months for Fatal 2005 Explosion That Discharged Slurry Oil in Chicago Canal and Marine CompanyOrdered to Pay over $5.3 Million in RestitutionRead the Press Release
CHICAGO — The captain of a petroleum barge that exploded in 2005, resulting in the death of a crew member, was sentenced to six months in federal prison today after being convicted of felony maritime negligence and causing thousands of gallons of oil to pollute the Chicago Sanitary and Ship Canal. The corporate barge owner, convicted of the same offenses, was sentenced to three years of supervised release and make restitution in excess of $5.3 million to the National Pollution Funds Center for the monies it paid out as a result of the spill. The defendants, DENNIS MICHAEL EGAN and EGAN MARINE CORP., were found guilty in June 2014 following a bench trial.
Egan, 36, of Topeka, Ill., and formerly of Lemont, and Egan Marine Corp., of Lemont, were each convicted of one count of negligent manslaughter of a seaman and one count of negligently discharging oil pollution to a navigable waterway. The verdict was delivered in an oral ruling from the bench by U.S. District Judge James Zagel in June 2014. In addition to the prison sentence, Judge Zagel also ordered Dennis Egan to one year of supervised release. Judge Zagel has scheduled a hearing for July 1 to rule on restitution amounts to the family of the victim.
According to the evidence at trial and court records, on Jan. 19, 2005, a fully-loaded Egan Marine Corp. tank barge, known as the EMC-423, being pushed by the tow boat Lisa E, was transporting approximately 600,000 gallons of clarified slurry oil (CSO) from the ExxonMobil Oil Corp. refinery near Joliet to the Ameropan Oil Corp. facility near the canal and California Avenue in Chicago. CSO is a byproduct of petroleum refining that can also be used as fuel, among other uses. Egan Marine Corp. employee Dennis Michael Egan was the pilot of the Lisa E and Captain of the vessels. As captain, Egan was responsible for the actions of his three-man crew and the safe operation of the vessels. About 4:40 p.m., just after clearing the Cicero Avenue Bridge and heading northeast parallel to the I-55 Stevenson Expressway, a large explosion, originating in one of the EMC-423’s four cargo tanks, occurred aboard the barge. As a result, the EMC-423 sank, discharging thousands of gallons of CSO and other oils into the canal. Immediately after the blast, crewman Alexander Oliva, 29, who had been aboard the barge, was determined to be missing. His body was recovered from the canal near Laramie Avenue on Feb. 4, 2005.
Finding both defendants guilty following trial, Judge Zagel ruled that the explosion occurred when the open flame from a propane fueled torch, which Alex Oliva was using to heat the barge’s cargo pump in preparation for offloading, came into contact with ignitable CSO vapors being vented from a storage tank headspace to the deck of the barge within mere inches of the cargo pump. The use of any open flame on a loaded petroleum barge is a violation of Coast Guard regulations and safe industry practice. The barge did have a lawful onboard heating system, but it was disconnected from the cargo pump, thereby requiring the crew to use an alternative means of heating the cargo pump for offloading. Judge Zagel concluded that the defendants were negligent because they knew that the crew occasionally used an open flame to heat the cargo pump but nonetheless permitted the crew to engage in the illegal and unsafe practice. As a result, the defendants were found guilty of negligently causing the death of Alex Oliva and negligently violating the Clean Water Act by discharging thousands of gallons of oil into the Canal, in violation of the Clean Water Act.
The total cleanup and other costs from the spill exceeded $12 million, more than $5.3 million of which was paid by the National Pollution Funds Center from a federal trust fund used to pay the costs of mitigating oil spill incidents, as well as legitimate damage claims of affected third parties. The fund was established by the Oil Pollution Act of 1990 following the Exxon Valdez spill in Alaska.
In imposing sentence, Judge Zagel remarked that when bad things don’t happen for a long period of time, there is a distinct risk that the level of care is lowered and this is the case where the catastrophe occurred.
“This case provides a tragic example of what happens when a vessel captain, and his employer, violate their special duty of care to their crew and the public by disregarding basic safety requirements,” said U.S. Attorney Zachary T. Fardon. “The ultimate tragedy of their crimes is that Alex Oliva would not have lost his life if the defendants valued basic safety higher than expediency.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Neal R. Marzloff, Special Agent-in-Charge of the U.S. Coast Guard Investigative Service, Central Region in Cleveland; and Justin Oesterreich, Acting Special Agent-in-Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division in Chicago.
The government was represented by Assistant U.S. Attorneys Timothy Chapman and Matthew Hiller and Special Assistant U.S. Attorney Crissy Pellegrin, of the U.S. EPA’s Office of Regional Counsel for Region 5 in Chicago.
Attorney General Loretta E. Lynch Statement on the U.S. Supreme Court Ruling in Obergefell v. HodgesRead the Press Release
Attorney General Loretta E. Lynch released the following statement today after the Supreme Court ruling in Obergefell v. Hodges:
“Today, the Supreme Court of the United States has recognized the equality, dignity and essential humanity of our gay and lesbian brothers and sisters and reaffirmed this country’s bedrock principle – engraved over the entrance to the Court itself – that all Americans are entitled to equal justice under law. By putting an end to an era of state-sanctioned discrimination, the decision lights the way to a future of acceptance, inclusion and opportunity for gay and lesbian Americans and their families. It encapsulates a nation’s enormous leap of understanding – rooted in compassion, tolerance and empathy – and reflects the countless hearts touched and minds opened along the way. It vindicates an idea whose time has come at last.
Today’s result would not have been possible without the passionate advocacy and innumerable acts of personal bravery of generations of leaders, who have fought for the simple freedom to pursue their own happiness with those whom they love. Their fight, galvanized by the Stonewall riots nearly a half-century ago, was waged in the face of pervasive bigotry and widespread resistance and its progress was never guaranteed. But after too many lifetimes of isolation, humiliation and harassment – and steeled by unimaginable courage and indomitable conviction – gay and lesbian citizens across the country bravely came out into the open and awakened the conscience of a nation. Their courage has led us to this day; to a decision from the nation’s highest court declaring them to have full and equal rights to marry in the country they fought to change; and to a victory that they have justly and finally won.
I have no illusions that Obergefell v. Hodges spells the end of anti-gay prejudice. Difficult legal issues lie ahead and the protections written into law are not all they should be. That’s why this march must go on and why this cause will endure, until all Americans – regardless of sexual orientation – are afforded the equal rights, equal treatment and equal opportunity they deserve. But on a day like today – a day that marks a watershed moment in the progress of this movement, in the story of this community and in the history of this nation – it is proper that we pause and take stock of just how far we have come. The Justice Department is proud to have been a part of this journey, from Attorney General Eric Holder’s unwavering leadership in advancing the cause of equality to the groundbreaking progress we have witnessed today. Going forward, we are committed to standing on the side of equality – and standing with the LGBT community – to keep up the fight for safety, opportunity, dignity and justice for all.”
Arizona Man Pleads Guilty to Federal Wire Fraud Charges in New MexicoRead the Press Release
ALBUQUERQUE – Joseph Lawler, 54, of Peoria, Ariz., entered a guilty plea in federal court in Albuquerque, N.M., to a 12-count superseding indictment charging him with wire fraud offenses. The guilty plea, which was entered without the benefit of a plea agreement, was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Lawler pled guilty to all 12 counts of a superseding indictment that was filed on June 9, 2015, and alleged that between Aug. 2010 and July 2014, Lawler engaged in an illegal scheme to defraud investors of hundreds of thousands of dollars. Lawler executed the scheme by causing others to create a company, Projaris Management, LLC (Projaris), that purported to provide investment services. He also caused others to open four accounts for Projaris at a bank in Farmington, N.M., and one account at a bank in Phoenix, Ariz. Although the bank accounts were not in Lawler’s name and he was not an authorized signer, Lawler exercised sole control over the bank accounts.
The superseding indictment alleged that Lawler used Projaris and the bank accounts to execute a scheme to defraud investors in Projaris by making false representations to obtain investment funds which he used for other purposes. Lawler falsely represented to investors that their funds would be invested in gold, silver, real estate, or real estate investment trust funds. Instead, Lawler used investors’ funds to pay other Projaris investors who threatened to report him to law enforcement authorities. Lawler also used investors’ funds to pay for his living expenses and vehicles.
The superseding indictment includes forfeiture allegations which assert that Lawler derived at least $288,889.50 as a result of his criminal conduct and which require that Lawler forfeit money or assets in that amount.
A sentencing, Lawler faces a statutory maximum penalty of 20 years in prison on each of the 12 wire fraud charges in the superseding indictment. A sentencing date has not been set.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Tara C. Neda.
Albuquerque Man Charged with Crimes Arising Out of Pharmacy Robbery in June 2013Read the Press Release
ALBUQUERQUE – Eddie Gallegos, 38, of Albuquerque, N.M., made his initial appearance in federal court this morning on an indictment charging him with crimes arising out of the June 21, 2013 armed robbery of a pharmacy in Albuquerque. Gallegos remains in federal custody pending arraignment and a detention hearing scheduled for June 29, 2015.
The four-count indictment alleges that Gallegos (1) violated the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) branded a firearm during a crime of violence; (3) violated the Safe Doses Act by stealing medical products; and (4) possessed Oxycodone with intent to distribute. According to the indictment, Gallegos allegedly committed the four offenses by robbing Phil’s Pills, a pharmacy located at 5510 Lomas Blvd. NE in Albuquerque, at gunpoint on June 21, 2013.
The charges in the indictment carry the following statutory maximum penalties on conviction: Hobbs Act – 20 years of imprisonment; Safe Doses Act – 30 years of imprisonment; possession of Oxycodone with intent to distribute – 20 years in prison. The statutory maximum penalty for a conviction for brandishing a firearm during a crime of violence is a mandatory seven years in prison to be served consecutive to any prison sentence on the other sentence imposed on the other charges.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Albanian National Pleads Guilty to Attempting and Conspiring to Support TerroristsRead the Press Release
District Court Ruled that the Fruits of FISA Surveillance Were Admissible in this Case
Agron Hasbajrami, 31, an Albanian citizen and resident of Brooklyn, New York, pleaded guilty today to attempting and conspiring to provide material support to terrorists before U.S. District Judge John Gleeson of the Eastern District of New York. At sentencing, the defendant faces up to 20 years in prison.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department.
As part of the plea, Hasbajrami agreed to be deported from the United States at the conclusion of his sentence, and the government agreed to allow the defendant to preserve his right to challenge on appeal the lawfulness of surveillance obtained or derived from the FISA Amendments Act of 2008 (FAA), a question of first impression in the Second Circuit. The U.S. District Court of the Eastern District of New York ruled in February 2015 that the fruits of FISA surveillance in this case were admissible.
“This case, like many others before it, has shown that the application of lawful surveillance can allow the United States government to detect and disrupt a terrorist in the United States,” said Acting U.S. Attorney Currie. “The defendant’s plea today leaves no question as to his role in a very serious terrorism offense, and if he chooses to bring an appeal, we are confident we will prevail in the appellate court as well.”
“Today’s guilty plea is the result of a thorough investigation conducted by the New York FBI’s Joint Terrorism Task Force,” said Assistant Director in Charge Rodriguez. “I want to thank all of the agencies that participate on the FBI JTTF. Together we are able to use our combined legal and investigative tools to quickly identify and disrupt threats to our community.”
“This case is another example that shows that when people in the New York area conspire with, attempt to join, or fund a terrorist organization, even in the Tribal Area of Pakistan, they will be uncovered by the agents and detectives of the JTTF, and they will face the full consequences of the law,” said Commissioner Bratton.
According to court documents and statements made in court today, in September 2011, Hasbajrami attempted to travel to the Federally Administered Tribal Areas of Pakistan (the FATA) for the purpose of joining a radical jihadist insurgent group. In addition, he sent over $1,000 in multiple wire transfers abroad to support terrorist activities in Pakistan and Afghanistan. In pursuing his goal of fighting jihad, the defendant exchanged email messages with an individual in Pakistan who told him that he was a member of an armed group that had murdered American soldiers and kidnapped Westerners. In one email message, Hasbajrami stated that it was difficult to ask for money from fellow Muslims because they became apprehensive “when they hear it is for jihad.” In another email, he stated that he wished to travel abroad to “marry with the girls in paradise,” using jihadist rhetoric to describe a reference to his desire to die as a martyr himself.
On Sept. 5, 2011, Hasbajrami purchased a one-way airline ticket to travel to Turkey the following day. Based on Hasbajrami’s email communications, he intended to travel from Turkey to the FATA to join a jihadist group. On Sept. 6, 2011, the defendant was arrested at John F. Kennedy International Airport. At the time of his arrest, he was carrying a tent, boots and cold weather gear. A search of the defendant’s residence revealed, among other items, a note reading “Do not wait for invasion, the time is martyrdom time.”
Upon receiving notice that evidence in his case had been obtained or derived from surveillance conducted pursuant to the FAA, Hasbajrami was permitted by the District Court to withdraw his prior plea, and he thereafter moved to suppress the fruits of such evidence, arguing that certain provisions of the act were unconstitutional. On Feb. 20, 2015, the District Court denied the defendant’s motion, ruling that the fruits of the FAA surveillance, including the defendant’s post-arrest statements, were admissible. Under the terms of the plea agreement, Hasbajrami preserved his right to appeal the District Court’s decision on his suppression motion to the Second Circuit Court of Appeals.
Assistant Attorney General Carlin joined Acting U.S. Attorney Currie in thanking the federal, state and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York.
The government’s case is being prosecuted by Assistant U.S. Attorneys Seth D. DuCharme, Saritha Komatireddy, Peter Baldwin and Matthew Amatruda of the Eastern District of New York, and Trial Attorney Danya Atiyeh of the National Security Division’s Counterterrorism Section.
Albanian National Pleads Guilty to Attempting and Conspiring to Support TerroristsRead the Press Release
Agron Hasbajrami, 31, an Albanian citizen and resident of Brooklyn, New York, pleaded guilty today to attempting and conspiring to provide material support to terrorists before U.S. District Judge John Gleeson of the Eastern District of New York. At sentencing on July 30, 2015, the defendant faces up to 20 years in prison.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department.
As part of the plea, Hasbajrami agreed to be deported from the United States at the conclusion of his sentence, and the government agreed to allow the defendant to preserve his right to challenge on appeal the lawfulness of surveillance obtained or derived from the FISA Amendments Act of 2008 (FAA), a question of first impression in the Second Circuit. The U.S. District Court of the Eastern District of New York ruled in February 2015 that the fruits of FISA surveillance in this case were admissible.
“This case, like many others before it, has shown that the application of lawful surveillance can allow the United States government to detect and disrupt a terrorist in the United States,” said Acting U.S. Attorney Currie. “The defendant’s plea today leaves no question as to his role in a very serious terrorism offense, and if he chooses to bring an appeal, we are confident we will prevail in the appellate court as well.”
“Today’s guilty plea is the result of a thorough investigation conducted by the New York FBI’s Joint Terrorism Task Force. I want to thank all of the agencies that participate on the FBI JTTF. Together we are able to use our combined legal and investigative tools to quickly identify and disrupt threats to our community,” stated FBI Assistant Director-in-Charge Rodriguez.
“This case is another example that shows that when people in the New York area conspire with, attempt to join, or fund a terrorist organization, even in the Tribal Area of Pakistan, they will be uncovered by the agents and detectives of the JTTF, and they will face the full consequences of the law,” said Police Commissioner Bratton.
According to court documents and statements made in court today, in September 2011, Hasbajrami attempted to travel to the Federally Administered Tribal Areas of Pakistan (the FATA) for the purpose of joining a radical jihadist insurgent group. In addition, he sent over $1,000 in multiple wire transfers abroad to support terrorist activities in Pakistan and Afghanistan. In pursuing his goal of fighting jihad, the defendant exchanged email messages with an individual in Pakistan who told him that he was a member of an armed group that had murdered American soldiers and kidnapped Westerners. In one email message, Hasbajrami stated that it was difficult to ask for money from fellow Muslims because they became apprehensive “when they hear it is for jihad.” In another email, he stated that he wished to travel abroad to “marry with the girls in paradise,” using jihadist rhetoric to describe a reference to his desire to die as a martyr himself.
On Sept. 5, 2011, Hasbajrami purchased a one-way airline ticket to travel to Turkey the following day. Based on Hasbajrami’s email communications, he intended to travel from Turkey to the FATA to join a jihadist group. On Sept. 6, 2011, the defendant was arrested at John F. Kennedy International Airport. At the time of his arrest, he was carrying a tent, boots and cold weather gear. A search of the defendant’s residence revealed, among other items, a note reading “Do not wait for invasion, the time is martyrdom time.”
Upon receiving notice that evidence in his case had been obtained or derived from surveillance conducted pursuant to the FAA, Hasbajrami was permitted by the District Court to withdraw his prior plea, and he thereafter moved to suppress the fruits of such evidence, arguing that certain provisions of the act were unconstitutional. On Feb. 20, 2015, the District Court denied the defendant’s motion, ruling that the fruits of the FAA surveillance, including the defendant’s post-arrest statements, were admissible. Under the terms of the plea agreement, Hasbajrami preserved his right to appeal the District Court’s decision on his suppression motion to the Second Circuit Court of Appeals.
Assistant Attorney General Carlin joined Acting U.S. Attorney Currie in thanking the federal, state and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York.
The government’s case is being prosecuted by Assistant U.S. Attorneys Seth D. DuCharme, Saritha Komatireddy, Peter Baldwin and Matthew Amatruda of the Eastern District of New York, and Trial Attorney Danya Atiyeh of the National Security Division’s Counterterrorism Section.
The Defendant
AGRON HASBAJRAMI
Age: 31
Docket No.: 11 CR 623 (S2) (JG)
2 Sentenced to Prison for Defrauding Union and PPO Insurance Plans by Seeking Millions of Dollars for Unneeded Medical ProceduresRead the Press Release
SANTA ANA, California – Two Southern California residents were sentenced today to federal prison in connection with a scheme to defraud union and PPO health insurance programs by submitting bills for more than $71 million in medical procedures performed on insurance beneficiaries who received free or discounted cosmetic surgery.
An investigation into the fraudulent scheme – which was run out of a surgery center in Orange known at various times as Princess Cosmetic Surgery, Vista Surgical Center and Empire Surgical Center – showed that many of the bills were for unneeded medical procedures. At today’s sentencing, prosecutors took a very conservative position, based on a careful medical review of only some of the claims, that the documented loss figure related to unnecessary medical procedures was at least $2.6 million.
The two defendants sentenced today by United States District Judge Josephine L. Staton are:
Theresa Fisher, 45, of Tustin, who was sentenced to 41 months in federal prison and ordered to pay $2.6 million in restitution; and
Lindsay Hardgraves, 30, of San Pedro, who was sentenced to five months in prison and ordered to pay restitution in the amount of $85,000.
Following a jury trial in March, Fisher was found guilty of five counts of mail fraud, and Hardgraves was convicted of two counts of mail fraud.
The evidence at trial showed that marketers, who are sometimes known as cappers, lured patients to the surgery center. When patients came to the surgery center for a consultation, they were told that they could receive free or discounted cosmetic surgeries if they underwent multiple, medically unnecessary procedures that would be billed to their union or PPO health care benefit program. The unnecessary procedures typically performed on the “patients” were endoscopies (usually esophagogastroduodenoscopies, or EGDs), colonoscopies and cystoscopies. Once the health care benefit program paid the claims, the patients were given free or discounted cosmetic surgeries, including “tummy tucks,” breast augmentations, and liposuction. Further, tummy tucks were billed as hernia repair surgeries.
A large number of the fraudulent claims were submitted to the International Longshore and Warehouse Union and Operating Engineers Union health insurance plans.
Fisher was a consultant at the surgery center, and Hardgraves was a marketer.
A third defendant in the case – Vi Nguyen, 31, of Placentia, who also worked as a consultant at the surgery center – pleaded guilty to four counts of mail fraud on January 16. Nguyen is scheduled to be sentenced by Judge Staton on July 10.
This case is the product of an investigation by the Federal Bureau of Investigation, the United States Department of Labor – Office of Inspector General, United States Department of Labor – Employee Benefits Security Administration, and the Office of Personnel Management – Office of Inspector General.
25 June 2015
Wooster man faces counterfeiting chargesRead the Press Release
A federal grand jury returned a two-count indictment charging Ryan E. Ramey, 30, of Wooster, with passing and creating counterfeit currency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 charges Ramey with passing counterfeit ten dollar, fifty dollar, and one hundred dollar Federal Reserve Notes from on or about June 1, 2013, to on or about June 28, 2013.
Count 2 charges Ramey with creating counterfeit ten dollar, fifty dollar, and one hundred dollar Federal Reserve Notes during the same time period.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, 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 investigation preceding the indictment was conducted by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge 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.
Woman Admits Making False Statements to Receive Emergency Witness Assistance Program FundsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LACEY BLAND, 35, of New Haven, pleaded guilty today in New Haven federal court to making a false statement to law enforcement.
According to court documents and statements made in court, BLAND was a potential witness in a federal matter. After BLAND reported concerns about her safety, the U.S. Attorney’s Office sought and obtained authorization to provide Emergency Witness Assistance Program (EWAP) funds for her to change her residence. BLAND subsequently told an employee of the U.S. Attorney’s Office and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that she had found a new residence and that a rental check in the amount of $3,600 should to made payable to a person she stated was the landlord’s wife. BLAND also requested $399 in cash for payment to the movers.
An investigation revealed that the “landlord’s wife” was, in fact, an associate of BLAND’s who was unrelated to the landlord or premises to which BLAND stated she was moving. BLAND never received EWAP funds.
The charge of making a false statement to law enforcement carries a maximum term of imprisonment of five years and a fine of up to $250,000. BLAND is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on September 17, 2015.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Willoughby Hills woman faces tax chargesRead the Press Release
An information was filed harging Thronda Deloach, 39, of Willoughby Hills, with three counts of making a false tax teturn and two counts of failure to file income tax return, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The information charges that between 2007 and 2011, Thronda Deloach operated two daycare centers and used money belonging to the daycares to fund her lavish lifestyle without reporting it as income. In total, Deloach misappropriated approximately $1.3 million from the daycares for her own use and did not report any of this money as income on her 2007, 2008, or 2009 individual tax returns. Deloach did not file any individual tax returns for 2010 or 2011, even though her income exceeded the threshold of income requiring an individual to file a tax return. Had she reported this income, she would have owed the Internal Revenue Service an additional $395,556.00 in personal income taxes.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the 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 case is being prosecuted by Assistant United States Attorney Adam Hollingsworth after an investigation by the Internal Revenue Service -- Criminal Investigation.
An information is only a charge 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.
Wayne Woman Pleads Guilty to Destruction of Government PropertyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JENNIFER LIND PALMER, a/k/a Jennifer L. Barnes and a/k/a Jennifer L. Dunn, age 34, of Wayne, Oklahoma, pled guilty to Destruction of Government Property, in violation of Title 18, United States Code, Section 1363 and Title 18, United States Code, Section 2.
The charges arose from an investigation by the National Park Service and the Bureau of Alcohol, Tobacco and Firearms. The defendant was indicted in April, 2015.
The Indictment alleges that from on or about July 15, 2012 to on or about July 20, 2012 in the Eastern District of Oklahoma, the defendant did willfully injure, and attempt to injure property of the United States and of any department or agency thereof to wit: destruction and attempted destruction of Park Fee machines owned by the National Park Service, said destruction and attempted destruction exceeded the sum of $1,000.00.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Edward Snow represented the United States.
Twelve Charged in Manhattan Federal Court with Narcotics Trafficking and Firearms Possession in Vermont and New York CityRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Eugenia Cowles, Acting United States Attorney for the District of Vermont, Delano A. Reid, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), Michael Greco, the United States Marshal for the Southern District of New York, and Colonel Thomas L’Esperance, Director of the Vermont State Police (“VSP”), announced the unsealing yesterday of an indictment charging 12 defendants with participating in a conspiracy to transport large quantities of crack cocaine and heroin from locations in New York City, to Bennington, Vermont, for resale in Bennington. Seven of the 12 defendants were also charged with possessing and using firearms in connection with the narcotics trafficking conspiracy. Seven defendants were taken into custody on June 23 and June 24, 2015. Six of them were presented in Manhattan federal court on June 24, 2015, before U.S. Magistrate Judge Debra Freeman. One is expected to be presented today.
Manhattan U.S. Attorney Preet Bharara stated: “Yesterday’s arrests show once again that guns and illegal drugs seem to go hand in hand. These defendants allegedly peddled crack cocaine and heroin, shuttling from Manhattan and the Bronx to Bennington, Vermont. Illegal drugs, and the guns that go with them, are not just an urban problem or a local problem but a national one. I thank my colleagues from the U.S. Attorney’s Office in Vermont, as well as all of our law enforcement partners, for their partnership and their dedication to fighting the dangers of drug trafficking in our communities.”
Acting U.S. Attorney Eugenia Cowles stated: “The District of Vermont is pleased to be working with our law enforcement colleagues in New York City to prosecute those who come to Vermont to traffic in guns and drugs. For too long, heroin from New York City and guns from Vermont have been exchanged with lethal consequences in both districts.”
ATF Special Agent in Charge Reid stated: “Up until yesterday, the illicit trade of narcotics for weapons flourished from the streets of New York City to Bennington, Vermont. The United States Attorney's Office, the ATF and its law enforcement partners swiftly gathered the evidence necessary and now, in one fell swoop, have cast a wide, multi-State and multi-jurisdictional net over the alleged illegal activities of the Cory Harris et. al. conspiracy. Their arrests should serve as a stark reminder that the long arm of the law can easily extend into other States when necessary and remove from society those who don't deserve to inhabit it.”
NYPD Commissioner Bratton stated: “These arrests and indictments are the result of our coordinated efforts to stop the sale and distribution of illegal firearms and narcotics. I want to commend the NYPD investigators involved in this case, the U.S. Attorney’s Office, Southern District, and our many law enforcement partners for their cooperation in this case and the resulting arrests.”
U.S. Marshal Michael Greco stated: “My office is completely committed to supporting our local, city, state and federal partners in apprehending the most dangerous criminals on our streets. The continued cooperation of our agencies is paramount to the success of these complex missions. I’m proud to be able to combine our resources and collaborate efforts in order to achieve our common goal.”
Vermont Sate Police Director Thomas L’Esperance stated: “I appreciate the collaboration between the Vermont Drug Task Force, NYPD, The U.S. Attorney’s Offices, ATF and the United Sates Marshals Service. This is a great example of the positive results that are achieved when law enforcement agencies and prosecutors work cooperatively across jurisdictional lines and all levels of government to ensure the safety of our communities.”
As alleged in the Indictment unsealed yesterday in Manhattan federal court and statements made at yesterday’s court proceedings[1]:
From at least 2014 up to and including 2015, CORY HARRIS, 31, DANIEL HERRING, 25, FRANK JENKINS, JR., 21, JARON LANGHORNE, 20, MITCHELL MALDONADO, 24, RAHEEM MALDONADO, 23, UNIQUE NEWELL, 22, ADAM PHILLIPS, 32, KRYSTAL PINSONNEAULT, 32, ANDREW ROBLES, 21, MIGUEL ROBLES, 31, and LUIS ZABALA, 31, conspired to sell controlled substances, including crack cocaine and heroin, in Vermont and elsewhere. Specifically, the Indictment charges (1) HERRING, JENKINS, LANGHORNE, MITCHELL MALDONADO, NEWELL, ANDREW ROBLES, and ZABALA with conspiring to distribute at least 280 grams of crack cocaine, and at least 100 grams of heroin; (2) HARRIS, RAHEEM MALDONADO, and MIGUEL ROBLES with conspiring to distribute at least 100 grams of heroin; (3) PHILLIPS with conspiring to distribute at least 280 grams of crack cocaine; and (4) PINSONNEAULT with conspiring to distribute mixtures and substances containing crack cocaine and heroin. HARRIS, JENKINS, LANGHORNE, MITCHELL MALDONADO, NEWELL, ANDREW ROBLES, and ZABALA are charged with using and possessing firearms between 2014 and 2015, in furtherance of the narcotics trafficking conspiracy. HARRIS is also charged with using firearms in April 2012 in furtherance of possession with intent to distribute marijuana.
During the time period charged in the Indictment, members of the conspiracy obtained crack and heroin from locations in New York City, including Manhattan and the Bronx, and then transported the crack and heroin to Vermont, for distribution in and around Bennington, Vermont. The members of the conspiracy sold crack and heroin from private apartments and certain motels in the Bennington area. Many of the members of the conspiracy used firearms in connection with their narcotics trafficking.
Members of the conspiracy also provided heroin, crack, and other controlled substances to certain women in and around Bennington, who were addicted, or became addicted, to those controlled substances. These women assisted members of the conspiracy with the transportation, storage, and distribution of crack and heroin in exchange for additional controlled substances, or in exchange for cash that the women used, in part, to purchase additional controlled substances.
* * *
Apart from PINSONNEAULT, all of the defendants face mandatory minimum prison terms ranging from five years to 35 years, and maximum prison terms ranging from 40 years to life. PINSONNEAULT faces no mandatory term of imprisonment and faces a maximum term of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
A chart containing the names of the defendants who were arrested today, and the charges and maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York City Police Department, the United States Marshals Service, the Vermont State Police, and the Bennington Police Department.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Hadassa Waxman and Michael Gerber are 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.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Conspiracy to distribute and possess with intent to distribute 280 grams and more of crack cocaine, and 100 grams and more of heroin.
DANIEL HERRING, FRANK JENKINS JR., JARON LANGHORNE, MITCHELL MADONADO, UNIQUE NEWELL, ANDREW ROBLES and LUIS ZABALA
Life in prison
Mandatory minimum: 10 years in prison
Conspiracy to distribute and possess with intent to distribute 100 grams and more of heroin
CORY HARRIS, RAHEEM MALDONADO and MIGUEL ROBLES.
Life in prison
Mandatory minimum: five years in prison
Conspiracy to distribute and possess with intent to distribute 280 grams and more of crack cocaine
ADAM PHILLIPS
Life in prison
Mandatory minimum: 10 years in prison
Conspiracy to distribute and possess with intent to distribute crack cocaine and heroin
KRYSTAL PINSONNEAULT
20 years in prison
Possession of a firearm in furtherance of a narcotics trafficking offense
CORY HARRIS (2 counts), FRANK JENKINS JR., JARON LANGHORNE, MITCHELL MADONADO, UNIQUE NEWELL, ANDREW ROBLES and LUIS ZABALA
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
[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.
Three men from Northeast Ohio accused of defrauding investors out of $17 millionRead the Press Release
Three men from Northeast Ohio were indicted in federal court for their roles in a conspiracy to defraud about 70 investors out of approximately $17 million, law enforcement officials said.
Indicted are Thomas Abdallah, 51, of Brunswick, Mark M. George, 58, of Independence, and Jeffrey L. Gainer, 51, of Akron.
The 12-count indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations, Cincinnati Field Office.
“This case is another sad reminder that so-called investment gurus who make promises of big guaranteed returns should send up red flags,” Dettelbach said. “If something seems too good to be true, it usually is.”
“These defendants callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” Anthony said. “Fraudsters such as these remain a top priority of the FBI.”
“Financial fraud schemes are often described as a house of cards,” Enstrom said. “The underlying structure can fall apart at any time and expose the individuals responsible. Today’s indictment is just one step in holding accountable those who prey on investors for their personal financial gain.”
Kenneth A. Grant, Jerry A. Cicolani and Kelly C. Hood previously pleaded guilty to crimes related to this fraud.
Abdallah and Grant owned and operated KGTA Petroleum, Ltd. They and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. They represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to the indictment.
KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to 5 percent per month or annual payments of approximately 60 percent per year, according to the information. The defendants never filed documentation about KGTA with the Securities and Exchange Commission, according to the indictment.
Together, they obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. They knew KGTA did not have agreements in place to sell oil and fuel, and that investors would not earn 5 percent per month on their investments, according to the indictment.
The defendants used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property. As a result of the conspiracy, the defendants defrauded the investors out of approximately $17 million, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Mark S. Bennett and M. Kendra Klump following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge 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.
Three South Florida Defendants Charged in $10 Million Government Fraud Involving Six Miami Low-Income Housing DevelopmentsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced the filing of charges against three defendants in a joint investigation of individuals who fraudulently obtained federal money and property in connection with the construction of low-income housing developments in Miami-Dade County.
Gonzalo DeRamon, 51, of Coral Gables, a co-founder of Biscayne Housing Group, Inc. (“BHG”), an affordable housing developer in Miami, Florida, was charged by complaint with one count of conspiracy to commit theft of government money (18 U.S.C. § 641), one count of theft of government money (18 U.S.C. § 641), one count of money laundering (18 U.S.C. § 1957), and one count of obstruction of justice (18 U.S.C. § 1519). These charges together carry a maximum potential sentence of forty-five years of imprisonment.
Rene Sierra, 57, of Southwest Ranches, who was the founder of Siltek Affordable Housing, LLC (“Siltek”), a general contractor located in Planation, Florida, and Arturo Hevia, 63, of Miramar, who was the founder of Design Management and Builders Corporation (“DMBC”), a general contractor located in Doral, Florida, were charged by information with one count of conspiracy to commit theft of government property and money (18 U.S.C. § 371). This charge carries a maximum sentence of five years of imprisonment.
Seizure warrants were also filed for the proceeds of the alleged theft of government funds and money laundering.
The charging documents allege the following facts. The criminal scheme involved the following developments for elderly, low-income families or formerly homeless persons in Miami-Dade County (the “Subject Developments”): Bonita Cove: an apartment complex in Little Haiti; Casa Matias: an apartment complex in Homestead; Georgia Ayers: an apartment complex in Opa-Locka; Labre Place: an apartment complex in Overtown; Notre Dame: an apartment complex in Little Haiti; and Village Carver II: an apartment complex in Little Haiti.
The defendants conspired to defraud the federal government in order to embezzle, steal and convert to their own use federal tax credits and funds. The criminal scheme worked as follows: The designated state housing finance agency, Florida Housing Finance Corporation (“FHFC”), selected some of BHG’s low-income developments as eligible to receive federal tax credits and grant monies, including the Subject Developments, for the construction of low-income housing developments.
Once each Subject Development was selected, DeRamon solicited a final construction bid from contractors Sierra and Hevia reflecting the total compensation that these contractors would receive to build each Subject Development. After receiving the final construction bid, DeRamon provided Sierra and Hevia with an inflated price to use in the construction contract for each Subject Development that would be submitted to FHFC’s representatives. DeRamon had an unwritten agreement with Sierra and Hevia that the contractors would keep only their final construction bid amount and would kick back the remaining inflated amount in the contracts to DeRamon and his co-conspirators.
DeRamon, Sierra, and Hevia signed construction contracts with these fraudulently inflated prices for each Subject Development and submitted these contracts to FHFC’s representatives. FHFC’s representatives relied on these fraudulent contracts in determining the amount of federal tax credits and grant monies to issue. As a result of these fraudulently inflated prices in the construction contracts, FHFC allocated in excess of $10 million in federal tax credits and grant monies to the Subject Developments that should not have been allocated. During the course of the scheme, Sierra and Hevia kicked back millions of dollars of these excess federal funds to accounts for the benefit of DeRamon and his co-conspirators.
Mr. Ferrer thanked FBI, HUD-OIG, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael R. Sherwin, Michael N. Berger, Evelyn B. Sheehan and Eloisa D. Fernandez.
A criminal complaint or an information is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Taiwanese National Pleads Guilty to Violating U.S. Sanctions on Exportation of Goods to IranRead the Press Release
In San Antonio, 44-year-old Kunlin Hsieh (pronounced “SEE-uh”) (aka Kunlin Xia), a sales manager for Junbon Enterprises Co., Ltd. in Taiwan, pleaded guilty this morning to conspiring to ship U.S. communications technology to the Republic of Iran. That announcement was made by Richard L. Durbin, Jr., Acting United States Attorney for the Western District of Texas; Special Agent in Charge James Spero, Homeland Security Investigations (HSI), San Antonio; Special Agent in Charge Christopher Combs, Federal Bureau of Investigation (FBI), San Antonio Division; Special Agent in Charge Janice Flores, Defense Criminal Investigative Service (DCIS), San Antonio; and, Special Agent in Charge Tracy Martin, U.S. Bureau of Industry and Security (USBIS), Dallas Field Office.
Appearing before Chief United States District Judge Fred Biery, Hsieh pleaded guilty to one count of Conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction and Sanctions Regulations. By pleading guilty, Hsieh admitted that from October 2007 to August 2014, he conspired with others to obtain electronic parts, namely circuit boards with American-made laminates, from U.S. companies without disclosing to them that the parts were destined for Iran. These parts had dual-use military and civilian capability and could be used in such systems as missile guidance systems, secure tactical radio communications, and military radar networks. At no time did Hsieh ever apply for or acquire a U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) license to export goods to the Republic of Iran
Hsieh faces up to 20 years in federal prison and a fine not to exceed $1,000,000. Sentencing is scheduled for September 25, 2015.
Hsieh’s co-defendant, 29-year-old fellow Junbon employee and Latvian citizen Agris Indricevs (pronounced “in-dra-CHEE-vich”) is scheduled for jury selection and trial on August 10, 2015. Indricevs is charged by indictment with Conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction and Sanctions Regulations.
Hsieh and Indricevs have remained in federal custody since being arrested by federal authorities in Albuquerque, New Mexico, on August 13, 2014.
This case was investigated by HSI, Federal Bureau of Investigation (FBI), Defense Criminal Investigative Service (DCIS) and the Department of Commerce-Office of Export Enforcement. Assistant United States Attorney Jay Hulings is prosecuting this case on behalf of the Government.
Sex Offender Sentenced for Failure to RegisterRead the Press Release
BOSTON – A Spencer man was sentenced yesterday in U.S. District Court in Worcester for failing to register as a sex offender.
Larry J. Dupuis, 48, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison and five years of supervised release. In March 2015, Dupuis pleaded guilty to failing to register as a sex offender.
On May 28, 1997, Dupuis was convicted in the Commonwealth of Massachusetts of indecent assault and battery on a person under the age of 14. As a result of the conviction, Dupuis was classified as a sex offender and was required to register as such in each state in which he resides for life. In 2004, Dupuis first registered as a sex offender in Massachusetts. Sometime thereafter he moved to Florida. In 2006, he was arrested in Florida for failing to register as a sex offender and sentenced to 32 months in prison. Following his release, Dupuis moved between Massachusetts and Florida and abided by regulations to register in each state. In August 2015, however, Dupuis began living in Spencer, Mass. and did not re-register as a sex offender.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. The case was prosecuted by Assistant U.S. Attorney Karin M. Bell of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sentencings for June 22 - June 24, 2015Read the Press Release
Lawrence Kevin Paille, 60, of Kapaa, Hawaii, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 24, 2015, for conspiracy to defraud the United States by obstructing the assessment and collection of federal income taxes. Paille received a sentence of 3 years of supervised probation and was ordered to pay a $100.00 special assessment and a restitution amount which will be determined at a later date. Paille’s co-conspirators Joseph Ruben Hill, Lucile Kathleen Hill and Gloria Jean Reeder were convicted by a jury for their parts in the same conspiracy on May 24, 2015, and are scheduled to be sentenced in August. This case was investigated by the Internal Revenue Service.
Jose Arturo Llanez, 36, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 23, 2015, for illegal re-entry of a previously deported alien into the United States. Llanez was arrested in Cheyenne, Wyoming. He received eight months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Amanda Bryn Erin Campbell, 33, of Arvada, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 22, 2015, for conspiracy to defraud the United States by obstructing the assessment and collection of federal income taxes. Campbell received a sentence of 3 years of supervised probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $330,827.00. Campbell’s co-conspirators Joseph Ruben Hill, Lucile Kathleen Hill and Gloria Jean Reeder were convicted by a jury for their parts in the same conspiracy on May 24, 2015, and are scheduled to be sentenced in August. This case was investigated by the Internal Revenue Service.
Conor Michael Latta, 22, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 22, 2015, for conspiracy to distribute 50 grams or more of methamphetamine, and heroin. Latta was arrested in Rock Springs, Wyoming. He received 84 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400 fine and a $100.00 special assessment. This case results from an ongoing
Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.Sandia Pueblo Man Sentenced to Federal Prison for Assaulting Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Ricardo Lamagna, 21, a member and resident of Sandia Pueblo, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 18 months in federal prison followed by three years of supervised release for assaulting a tribal police officer with a dangerous weapon conviction.
Lamagna was arrested on Aug. 8, 2014, on a criminal complaint charging Lamagna with assaulting an officer of the Pueblo of Sandia Tribal Police Department with a dangerous weapon in the early hours of Aug. 5, 2014. The assault occurred on Sandia Pueblo in Bernalillo County, N.M., after the tribal officer responded to a domestic violence call from Lamagna’s residence. The tribal police officer was not injured.
On Dec. 16, 2014, Lamagna entered a guilty plea to a felony information charging him with assault with a deadly weapon. In entering the guilty plea, he admitted assaulting a tribal officer of the Sandia Pueblo Tribal Police Department with a handgun on Aug. 5, 2014, in Indian Country in Sandia Pueblo.
This case was investigated by the Albuquerque office of the FBI with assistance from the Pueblo of Sandia Tribal Police Department, and was prosecuted by Assistant U.S. Attorney David Adams.
San Jose Man Charged with Tax Evasion, Obstructing the Administration of Internal Revenue Laws, Social Security Fraud, and Aggravated Identity TheftRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Walter Rhodes today on tax evasion, obstructing the administration of internal revenue laws, social security fraud, and aggravated identity theft announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the indictment, on August 21, 2009, Rhodes, of San Jose, opened a bank account using another individual’s (Individual A’s) social security number, authorizing himself as a signatory. On December 28, 2010, Rhodes used Individual A’s social security number to complete an IRS W-4 relating to new employment. Rhodes directed the employer to deposit wages from that employment into the bank account previously opened with Individual A’s social security number. These actions caused the IRS to attribute Rhodes’ income to Individual A. Rhodes was charged with one count each of tax evasion, in violation of 26 U.S.C. § 7201; obstructing the administration of internal revenue laws, in violation of 26 U.S.C. § 7212(a); social security fraud, in violation of 42 U.S.C. § 408(a)(7)(B); and aggravated identity theft, in violation of 18 U.S.C. § 1028A.
Rhodes is scheduled to make his initial appearance in federal court in San Jose on July 7, 2015, before the Honorable Howard R. Lloyd, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of tax evasion, the defendant faces a maximum sentence of five years in prison and a fine of $250,000. The maximum sentence for obstructing the administration of internal revenue laws is three years in prison and a $5,000 fine. The maximum sentence for social security fraud is five years in prison and a fine of $250,000. The maximum sentence for aggravated identity theft is two years in prison, to be served consecutively to the underlying felony, and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant U.S. Attorney Jennifer Tolkoff and Assistant United States Attorney Thomas Moore are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rogers Man Sentenced to over 8 Years in Prison for Kidnapping Texas WomanRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Theron Vance, age 22, of Rogers, was sentenced to 100 months in federal prison followed by five years of supervised release on one count of Conspiracy to Commit Kidnapping and one count of Kidnapping, Aiding and Abetting. Vance was found guilty of both counts following a two day jury trial on March 18, 2015. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “With today’s sentence, we hope the victim in this case can rest comfortably knowing that justice has been served to those who terrorized her. Vance and his co-defendants spent four months planning an elaborate scheme to kidnap the victim, which they then carried out in order to prevent her from testifying against one of them in a pending criminal case. I commend our local and federal law enforcement partners for their terrific work in this case. We will continue to aggressively prosecute those who commit violent crimes in order to make the Western District of Arkansas a safer place for all.”
“A violent kidnapping and impersonation of a FBI agent will not be tolerated and this is reflected in Vance’s sentencing today,” stated Assistant Special Agent in Charge David Shepard, with the Federal Bureau of Investigation in Little Rock. “Our communities will now be safer thanks to the diligent work of our partners, the United States Attorney’s Office, and the Bentonville and Dallas Police Departments.”
According to evidence presented during the trial, On June 14, 2014, the Bentonville Police Department received a 911 call from an employee at the Walmart Supercenter that a woman had been kidnapped. Once officers arrived on scene they were able to determine the victim entered the restroom at Walmart and handed an employee a note informing them that she had been kidnapped from Dallas, Texas by her ex-boyfriend Michael Roberts. By the time officers arrived at Walmart, Roberts had fled the scene. According to an interview of the victim, the previous night between 6:00 p.m. and 6:30 p.m. she was walking into her apartment in Dallas, Texas, when she was attacked from behind by Michael Roberts and physically assaulted. The defendant, Theron Vance, was present and assisted Roberts by acting as the lookout. Roberts forced the victim into her apartment and began restraining and choking her when Vance entered the apartment and identified himself as an FBI agent. The victim was told she could either go with the two men or she would be killed. The victim cooperated and packed a bag with her belongings. She was also told to write a note to her roommate explaining her disappearance. She did so, but also left another note in the refrigerator that said “call 911.” The victim was then transported against her will to the Western District of Arkansas in Bentonville by Roberts and Vance. Prior to leaving the Dallas area, defendant Vance took the victim’s phone and broke it on the sidewalk, making it inoperable. On the way to Bentonville the victim advised they stopped in Eufaula, Oklahoma at a gas station, where she left another note in the restroom identifying the vehicle in which she was being transported (this note was later recovered by Oklahoma Police). The victim was brought to the defendant’s residence located at 807 Southwest Krug in Bentonville during the early morning hours of June 14th. Later that day the victim was taken to Walmart where the employee was notified that she had been kidnapped.
While interviewing the victim officers noted that her lip appeared to be busted on the inside of her mouth and she had a large bruise on her right forearm.According to the victim, she was told by Roberts and Vance that she had been kidnapped because they did not want her to testify against Roberts in a pending criminal case in Texas and that they were going to keep her until the proceedings were over. The victim was able to positively identify defendant Vance as one of the individuals that kidnapped her and transported her from Dallas, Texas to Bentonville, Arkansas against her will.
As the Bentonville Police Department was investigating the case, Detectives with the Dallas Police Department searched the victim’s apartment and located the two notes and discovered a blood stain on the carpet.Bentonville Detectives then executed a search warrant at defendant Roberts’ residence, where they located the victim’s bloody clothing.
On June 16, 2014, Vance was located and arrested.Subsequent to being advised of and waiving his Miranda rights he admitted his role in the kidnapping.Specifically, Vance admitted that approximately four months prior to the kidnapping he and Roberts began planning; Vance admitted that a week prior to the abduction, he and Roberts drove to Dallas to scout the area; Vance admitted to wearing a fake FBI badge during the abduction and breaking the victim’s cell phone so they would not be tracked.In addition, Vance disclosed to investigators the location of several items used in the kidnapping, including a blonde wig, razor blades, zip ties and a book on human anatomy.These items were subsequently recovered by investigators.Furthermore, Vance’s vehicle was used to transport the victim from Texas to Arkansas.
Vance’s co-defendants, Michael Roberts, age 25, of Bella Vista, and Jason Petit, age 25, of Fayetteville, were previously sentenced in March.Roberts pleaded guilty to one count of Conspiracy to Commit Kidnapping on November 3, 2014, and was sentenced to 120 months in prison, followed by five years of supervised release.Petit also pleaded guilty to one count of Conspiracy to Commit Kidnapping on October 21, 2014, and was sentenced to 48 months in prison followed by three years of supervised release.
This case was investigated by the Bentonville Police Department, the Federal Bureau of Investigations (FBI), and the Dallas Police Department. Assistant United States Attorney David Harris and Assistant United States Attorney Kim Davis prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Robber Exiled to over 9 Years in Prison for Commercial RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Cornelius Westly Jennings, Jr., age 27, of Washington, D.C., today to 111 months in prison, followed by five years of supervised release, for a conspiracy to rob two businesses and for using a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Michael E. Scott of the Mount Rainier Police Department; and Maryland Attorney General Brian E. Frosh.
According to Jennings’ plea agreement, on May 31 and September 19, 2012, Jennings and his co-conspirators committed three robberies of fast food restaurants. Jennings’ role in the conspiracy included driving his co-conspirators to the robbery site, conducting surveillance of the businesses prior to the robberies, planning the robberies with his co-conspirators, knowing that at least one co-conspirator would be armed with a gun, entering the businesses and participating in the robberies, and receiving a portion of the proceeds of the robberies.
Specifically, on May 31, 2012, Jennings, Anthony Akrah Morris, and Tiffany Edmundson, robbed a fast food restaurant located in the 15000 block of Old Columbia Pike in Burtonsville, Maryland. The robbers wore masks and Jennings was armed with a handgun, which was brandished at employees in the store. The co-conspirators forced employees to open the restaurant’s safe and stole $1,400 from the safe. The robbers fled in a vehicle being driving by another co-conspirator who was acting as a lookout. Co-conspirator Chavez Tyrone Smith was also in the vehicle
On September 19, 2012, Jennings drove Morris and another co-conspirator to the same fast food restaurant in Burtonsville that he robbed on May 31, 2012. Morris and the other co-conspirator, both armed with guns, entered to restaurant and brandished the guns at individuals inside the restaurant. The co-conspirators forced employees to open the safe and stole $657 in cash, then fled to the vehicle in which Jennings was waiting. Jennings then drove to another fast food restaurant in the 4000 block of Powder Mill Road in Beltsville, where Morris and the co-conspirator again robbed the restaurant, brandishing their firearms at persons in the restaurant. Morris and the co-conspirator took $105 from the restaurant cash registers. After forcing employees to open the safe, Morris and the co-conspirator stole another $900 from the safe. The co-conspirators again ran to the car where Jennings was waiting and Jennings drove away.
Jennings admitted that he received a portion of the money stolen in the three robberies.
Anthony Akrah Morris, age 25, of Burtonsville, Maryland, was convicted after trial and sentenced to 505 months in prison for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery. Chavez Tyrone Smith, age 36, of Washington, D.C., previously pleaded guilty to conspiracy to rob two businesses and to using a firearm during a crime of violence and was sentenced to 16 years in prison. Tiffany Edmundson, age 26, of Greenbelt, Maryland, has pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on September 15, 2015, at 1:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department, Montgomery County Police Department, Mount Rainier Police Department and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein praised the Prince George’s County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance and coordination. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Rittman man charged with damaging a computerRead the Press Release
A federal grand jury returned a one-count indictment charging Jacob B. Ross, 29, of Rittman, with intentionally damaging a protected computer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about March 18, 2013, Ross caused the intentional damage to a protected computer by the transmission of a program, information, code, or command.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, 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 investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge 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.
Postal worker charged with stealing cash from the mailRead the Press Release
A federal grand jury returned an indictment charging Cristi M. Wellen, 36, of Painesville, with stealing cash from various first-class mail while employed by the United States Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Wellen worked at the Post Office’s Cleveland Processing and Distribution Center, and rifled through various envelopes, taking cash from the mail intended for its recipients, according to the indictment.
The U.S. Postal Service Office of Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.
If convicted, the defendant’s sentence will be determined by the court after review of 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.
An indictment is only a charge 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.
Portsmouth Man Sentenced on Narcotics Trafficking and Firearm ChargesRead the Press Release
25 Years in Prison for Distributing in excess of 1,000 grams of heroin
NORFOLK, Va. – Jeremy Lynn Saunders, 33, of Portsmouth, Virginia, was sentenced today to 300 months in prison, followed by 5 years of supervised release, for conspiracy to distribute heroin, cocaine, and cocaine base, and for possession of a firearm in furtherance of a drug trafficking crime.
Saunders pleaded guilty on Jan. 20, 2015. According to court documents, from January 2012 to about August 2014, Saunders distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that he helped manage and that he used firearms to protect. Saunders was found in possession of 39 grams of heroin and a firearm by Portsmouth Police Department officers during the execution of a search warrant at an address located at Seventh Street in Portsmouth on Feb. 6, 2014.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Joseph DePadilla and Andrew Bosse prosecuted the case.
The case was investigated by the DEA’s Washington Office with the assistance of the Portsmouth Police Department as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr2.
Portsmouth Bloods Gang Members Plead Guilty to Conspiracy to Distribute HeroinRead the Press Release
Bought and sold in excess of one kilogram of heroin in Portsmouth and Norfolk
NORFOLK, Va. – Theodore M. Vann, aka Flatline, 32, of Portsmouth, Virginia, and Antwane L. Williams, aka Neno, 26, also of Portsmouth, pleaded guilty today to charges relating to their distribution of heroin in Norfolk. Vann also pleaded guilty to being a felon in possession of a firearm.
Vann and Williams were indicted by a grand jury on May 17, 2015, and will be sentenced on Sept. 24, 2015. Vann faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. Williams faces a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the statement of facts filed with the plea agreements, Vann was the highest ranking member of the Bloods gang set Gorilla Mafia Piru. Together with his fellow gang member and second in command, Antwane Williams, they manufactured and distributed in excess of one kilogram of heroin in Portsmouth from late 2013 to August 2014. Vann and Williams conspired with co-conspirators to distribute heroin in the Ghent area of Norfolk, Portsmouth, and other places throughout the Eastern District of Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the pleas were accepted by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of the Portsmouth Police Department. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse are 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. 2:15-cr-60.
Pennsylvania man, Harrison County resident convicted of lying to purchase a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Deandre Jones, 29, of Irwin, Pennsylvania, and Robert Pannell, 34, of Bridgeport, West Virginia, were each convicted today of unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
In August 2014, the defendants attempted to purchase a 9mm pistol from a licensed firearms dealer in Harrison County, West Virginia. The defendants intentionally misled the firearms dealer by indicating that the pistol was being purchased for Pannell. In fact, the pistol was being purchased for Jones.
The defendants each pled guilty today to “Aiding and Abetting – ‘Straw Purchase’ of Firearm.” They each face up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge John S. Kaull presided.
Parking Heater Company Sentenced to Pay $14.9 Million Criminal Fine for Price Fixing SchemeRead the Press Release
Espar Inc. has been sentenced to pay a $14.9 million criminal fine after pleading guilty to participating in a scheme to fix prices for parking heaters used in commercial vehicles, the Department of Justice announced today.
Espar Inc. pleaded guilty to a one-count felony charge in the U.S. District Court of the Eastern District of New York on March 12. At a hearing held today, the court formally accepted Espar’s plea agreement with the United States and sentenced the company in accordance with that agreement.
“Today’s sentencing drives home the message that the Department of Justice will not tolerate price fixing that thwarts free competition by setting minimum prices and coordinating price increases,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “This conspiracy among sellers of parking heaters resulted in many years of higher prices for aftermarket customers. While the Antitrust Division is pleased with this final resolution of the charge against Espar, we will continue our efforts to root out anticompetitive practices in this industry.”
According to the charge, Espar conspired with others to fix prices for parking heaters in the United States and elsewhere in North America from at least as early as Oct. 1, 2007, until Dec. 31, 2012. Parking heaters are devices that heat the interior compartment of a motor vehicle independent of the operation of the vehicle’s engine. Espar and its co-conspirators discussed parking heater prices for commercial vehicles, agreed to set a price floor for parking heater kits for commercial vehicles sold to aftermarket customers and agreed to coordinate the timing and amount of price increases for parking heaters for commercial vehicles sold to aftermarket customers. The conspiring companies carried out the agreement and exchanged information for the purpose of monitoring and enforcing adherence to the agreement.
Espar has pleaded guilty to a charge of price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.
Today’s sentencing is the result of an ongoing federal antitrust investigation handled by the Antitrust Division’s New York Office with assistance from the FBI’s New York Field Office. Anyone with information concerning price fixing or other anticompetitive conduct in the parking heater industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Owner of California Payment Processing Company Charged with FraudRead the Press Release
The Justice Department announced today that the owner and operator of a payment processing company that was involved in the unauthorized withdrawal of millions of dollars from consumers’ bank accounts was charged with fraud.
The criminal information, filed in the Eastern District of Pennsylvania, charged Neil Godfrey, 76, of Santa Ana, California, with one count of wire fraud. Godfrey owned and operated Check Site Inc., based in Santa Ana, which from 2006 to 2010 enabled fraudulent merchants to withdraw money from consumers’ bank accounts without the consumers’ knowledge or consent. If convicted, Godfrey faces a statutory maximum sentence of 20 years in prison.
According to the information, Godfrey worked with at least two fraudulent merchants who operated websites that purportedly offered payday loans. The websites were simply a ruse to harvest consumers’ bank account information. Instead of providing consumers with payday loans, the merchants operating the websites used the information provided by the consumers in loan applications to withdraw money from the consumers’ bank accounts. Using Check Site, Godfrey knowingly processed the merchants’ fraudulent withdrawals and provided the merchants access to the banking system
“Neil Godfrey used his understanding of the banking system to help his partners in crime steal money from hard-working, often low-income Americans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The amounts that were illegally withdrawn generally did not exceed a few hundred dollars per victim, but the scheme was so massive and went on so long that altogether it added up to millions of dollars in fraudulent withdrawals. As this prosecution demonstrates, the Department of Justice will continue to prosecute individuals and corporations involved in this kind of fraud.”
The information alleged that, once the fraudulent merchant had obtained the consumer’s name and bank account information, the merchants involved in the scheme created a demand draft, also known as a remotely controlled check (RCC). Unlike an ordinary check, an RCC is generally honored without the signature of the account holder. Check Site submitted the RCC to the consumer’s bank. When the RCC was processed, Check Site kept a fee and transferred the remainder of the withdrawal to the merchant.
The information alleged that Godfrey was an expert in finding banks that were willing to facilitate these transactions and ignore the red flags raised by these transactions. Such banks included one located in Irvine, California, and one located in Philadelphia. The information also alleged that Godfrey helped the fraudulent merchants stay off the radar of other banks and regulators so that the fraud could continue. For example, Godfrey advised merchants how to change the names of their companies and set up the facade of a legitimate company to defeat banks’ attempts at due diligence.
In an email message quoted in the information, Godfrey advised a fraudulent merchant that “the lesson we have learned is that we must trick the [bank] folk. It means you need to set up some type of web site front. What we need to do is set up a legitimate website selling anything you can think of – that is what you get approved on. It is irrelevant if anything is ever sold there – just so it exists. . . . In the mean time we set up false credit card approval etcetera. It is this we use to run the transactions. Yes, there will be a lot of returns, but what we do is send through transactions over the next few weeks that don’t have high returns. They stop looking and then we can run the regular stuff. . . . [A]fter several months we junk that company and go to another company.”
“The defendant in this case exploited his knowledge of the banking system and exposed hundreds of consumers to fraud,” said U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania. “Those who circumvent our banking laws in order to enrich themselves by preying on unsuspecting consumers need to be investigated and vigorously prosecuted.”
Principal Deputy Assistant Attorney General Mizer thanked the Federal Trade Commission for providing attorney Michelle Chua to serve as a Special Assistant U.S. Attorney on the case and commended the FBI for its thorough investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Murray of the Eastern District of Pennsylvania and Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch.
A criminal information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of California Payment Processing Company Charged with FraudRead the Press Release
PHILADELPHIA – The Justice Department announced today that the owner and operator of a payment processing company that was involved in the unauthorized withdrawal of millions of dollars from consumers’ bank accounts was charged with fraud. Neil Godfrey, 76, of Santa Ana, California, was charged, by information, with one count of wire fraud. Godfrey owned and operated Check Site Inc., based in Santa Ana, CA.
According to the information, between 2006 and 2010, Check Site enabled fraudulent merchants to withdraw money from consumers’ bank accounts without the consumers’ knowledge or consent. Godfrey allegedly worked with at least two fraudulent merchants who operated websites that purportedly offered payday loans. It is alleged that the websites were simply a ruse to harvest consumers’ bank account information. Instead of providing consumers with payday loans, the merchants operating the websites used the information provided by the consumers in loan applications to withdraw money from the consumers’ bank accounts. It is alleged that using Check Site, Godfrey knowingly processed the merchants’ fraudulent withdrawals and provided the merchants access to the banking system.
“The defendant in this case exploited his knowledge of the banking system and exposed hundreds of consumers to fraud,” said Memeger. “Those who circumvent our banking laws in order to enrich themselves by preying on unsuspecting consumers need to be investigated and vigorously prosecuted.”
The information alleged that once the fraudulent merchant had obtained the consumer’s name and bank account information, the merchants involved in the scheme created a demand draft, also known as a remotely controlled check (RCC). Unlike an ordinary check, an RCC is generally honored without the signature of the account holder. Check Site submitted the RCC to the consumer’s bank. When the RCC was processed, Check Site kept a fee and transferred the remainder of the withdrawal to the merchant.
It is further alleged that Godfrey was an expert in finding banks that were willing to facilitate these transactions and ignore the red flags raised by these transactions. Such banks included one located in Irvine, California, and one located in Philadelphia. Godfrey allegedly helped the fraudulent merchants stay off the radar of other banks and regulators so that the fraud could continue. For example, Godfrey allegedly advised merchants how to change the names of their companies and set up the facade of a legitimate company to defeat banks’ attempts at due diligence.
In an email message quoted in the information, Godfrey advised a fraudulent merchant that “the lesson we have learned is that we must trick the [bank] folk. It means you need to set up some type of web site front. What we need to do is set up a legitimate website selling anything you can think of – that is what you get approved on. It is irrelevant if anything is ever sold there – just so it exists. . . . In the mean time we set up false credit card approval etcetera. It is this we use to run the transactions. Yes, there will be a lot of returns, but what we do is send through transactions over the next few weeks that don’t have high returns. They stop looking and then we can run the regular stuff. . . . [A]fter several months we junk that company and go to another company.”
Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division said, “Neil Godfrey used his understanding of the banking system to help his partners in crime steal money from hard-working, often low-income Americans. The amounts that were illegally withdrawn generally did not exceed a few hundred dollars per victim, but the scheme was so massive and went on so long that altogether it added up to millions of dollars in fraudulent withdrawals. As this prosecution demonstrates, the Department of Justice will continue to prosecute individuals and corporations involved in this kind of fraud.”
The case was investigated by the FBI. It is being prosecuted by Assistant U.S. Attorney Patrick J. Murray of the Eastern District of Pennsylvania and Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch with assistance from Special Assistant U.S. Attorney Michelle Chua with the Federal Trade Commission.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Over $200,000 in forfeited cash awarded to local law enforcement in Wyoming CountyRead the Press Release
Beckley, W.Va. – U. S. Attorney Booth Goodwin and IRS Special Agent in Charge Thomas Jankowski will be presenting forfeited cash to the Wyoming County Prosecutor’s Office, Wyoming County Sheriff’s Department and the Pineville Police Department as a result of their assistance in the cases of U. S. v. Jerry Harvey, Jr. and U.S. v. James Trent.
WHAT: Presentation of forfeiture proceeds to local law enforcement agencies in Wyoming County as a result of their participation in joint investigations with the IRS.
WHEN: Friday, June 26, 2015, at 10:00am
WHERE: U.S. Courthouse & IRS Complex, 110 North Heber Street, Beckley, WV (weather permitting, the press conference will be in front of the building; if raining, it will take place in the lobby)
WHO: U.S. Attorney Booth Goodwin, IRS Special Agent in Charge Thomas Jankowski, IRS Assistant Special Agent in Charge Guy Ficco, IRS Supervisory Special Agent Jason Gandee, IRS Special Agent Jeff Goode, Wyoming County Prosecutor Mike Cochrane, Wyoming County Sheriff Randall Aliff and Chief Deputy Sherill Parker, and Mayor Tim Ellison, representing the Pineville Police Department
Omaha Man Sentenced to 80 Months for Child PornographyRead the Press Release
Raymond Kudera, age 39, was sentenced June 22 and June 23, 2015, in the United States District Court in Omaha, Nebraska, for receiving child pornography. Kudera was convicted after a jury trial. The Honorable Laurie Smith Camp sentenced Kudera to 80 months imprisonment. There is no parole in the federal prison system. After his release from prison, Kudera must serve a 10-year term of supervised release and register as a sex offender. Kudera was ordered to pay restitution to one of the child victims whose videos he viewed in the sum of $3,000.
Kudera used a file-sharing program to receive child pornography over the internet. On August 17, 2012, agents with Homeland Security Investigations executed a search warrant at Kudera’s apartment. Forensic analysis of Kudera’s computer indicated that his last 30 internet searches were for child pornography. Although he had deleted his child pornography, various images were recovered from a Thumbs.db file. Further forensics revealed a total of 267 child pornographic videos that had been downloaded from a file-sharing program and subsequently deleted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations.
New York City Employee and Nine Others Charged in Manhattan Federal Court with Food Stamp Bribery SchemeRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, Mark G. Peters, the Commissioner of the New York City Department of Investigation (“DOI”), and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of HARRY FLETCHER, an employee of the New York City Human Resources Administration (“HRA”), along with STANLEY HILL, KAREEM WASHINGTON, JAMES FORD, KENNETH WILLIAMSON, MARSHA RALPH, JASON BRYCE, KEVIN WHYTE, YESENIA VELAZQUEZ, and JOSEPH BULL, in connection with a food stamp fraud scheme. The Complaint alleges that FLETCHER, an HRA Eligibility Specialist whose job involved evaluating the issuance of Supplemental Nutrition Assistance Program (“SNAP”) benefits for New York City residents, solicited and accepted cash payments in exchange for issuing SNAP benefits to numerous individuals, including the remaining charged defendants. The defendants were arrested today and presented in Manhattan federal court before U.S. Magistrate Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “Harry Fletcher allegedly stole directly from the tables of some of the most vulnerable of our citizens, pocketing and misusing federal aid resources meant to help the less fortunate New York City residents feed their families.”
DOI Commissioner Peters said: “City workers who steal public funds undercut the effectiveness of government and its ability to help some of the neediest New Yorkers. This is fraud at its most shameful: HRA employees who used their public positions to enrich themselves and their associates, rather than the eligible individuals who willingly and diligently went through the vetting process, according to the charges. DOI will continue to work with its federal, state and City law enforcement partners to make arrests in these types of crimes.”
FBI Assistant Director-in-Charge Rodriquez said: “As alleged today, public funds were allocated to ineligible recipients of social service benefit programs. In a scheme to divert this money to those who did not qualify for assistance, those charged breached the trust of the public and will be held accountable for their actions.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
The New York City Human Resources administration provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among other things, providing food stamps to low-income families and individuals. Although the SNAP benefits program is administered locally through HRA, it is funded entirely by the federal government. To apply for SNAP benefits, an applicant must complete and sign an application form listing, among other things, the applicant’s income and financial assets. HRA Eligibility Specialists such as FLETCHER are supposed to interview SNAP program applicants and review applicant documentation in order to determine if the applicant is eligible to receive SNAP benefits.
Beginning in 2009, FLETCHER approached two landlords, who are referred to in the Complaint as CW-1 and CW-2, and who have pled guilty and are cooperating with the Government, and offered to provide CW-1 and CW-2 with monthly SNAP benefits in return for reoccurring payments of hundreds of dollars in bribes. CW-1 and CW-2 agreed to pay the bribes and, as a result, received tens of thousands of dollars of SNAP benefits for which they were not eligible from 2009 through 2015. CW-1 and CW-2 then recruited other individuals to take part in the scheme – including, but not limited to, the other defendants charged in the complaint – each of whom obtained monthly SNAP benefits arranged by FLETCHER, and without regard to whether the applicant qualified for such benefits, in return for continual bribes. In total, FLETCHER accepted more than $20,000 in bribes for improperly approving over $240,000 in SNAP benefits to CW-1, CW-2 and the remaining defendants. The applicants bribing FLETCHER were ineligible for SNAP benefits due to their income and/or the fact that they did not reside in New York City and thus were not eligible for New York City social service programs.
* * *
FLETCHER, 44, of the Bronx, New York, is charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of solicitation and receipt of bribes, which carries a maximum sentence of 10 years in prison; one count of honest services fraud, which carries a maximum sentence of 20 years in prison; and one count of theft of government funds, which carries a maximum sentence of 10 years in prison.
The following defendants were each charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison and one count of theft of government funds, which carries a maximum sentence of 10 years in prison:
- HILL, 48, Walkill, New York,
- WASHINGTON, 34, White Plains, New York
- FORD, 52, Jamaica, New York
- WILLIAMSON, 51, the Bronx, New York
- RALPH, 38, New Rochelle, New York
- BRYCE, 42, New Rochelle, New York
- WHYTE, 30, Wappingers Falls, New York
- VELAZQUEZ, 37, the Bronx, New York
- BULL, 39, the Bronx, New York
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative work of the DOI and the FBI in the investigation. He also expressed his thanks to the Bronx County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Robert L. Boone is in charge of the prosecution.
The charges contained in the Complaints 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
New York City Employee and Nine Others Charged in Manhattan Federal Court with Food Stamp Bribery SchemeRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, Mark G. Peters, the Commissioner of the New York City Department of Investigation (“DOI”), and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of HARRY FLETCHER, an employee of the New York City Human Resources Administration (“HRA”), along with STANLEY HILL, KAREEM WASHINGTON, JAMES FORD, KENNETH WILLIAMSON, MARSHA RALPH, JASON BRYCE, KEVIN WHYTE, YESENIA VELAZQUEZ, and JOSEPH BULL, in connection with a food stamp fraud scheme. The Complaint alleges that FLETCHER, an HRA Eligibility Specialist whose job involved evaluating the issuance of Supplemental Nutrition Assistance Program (“SNAP”) benefits for New York City residents, solicited and accepted cash payments in exchange for issuing SNAP benefits to numerous individuals, including the remaining charged defendants. The defendants were arrested today and presented in Manhattan federal court before U.S. Magistrate Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “Harry Fletcher allegedly stole directly from the tables of some of the most vulnerable of our citizens, pocketing and misusing federal aid resources meant to help the less fortunate New York City residents feed their families.”
DOI Commissioner Peters said: “City workers who steal public funds undercut the effectiveness of government and its ability to help some of the neediest New Yorkers. This is fraud at its most shameful: HRA employees who used their public positions to enrich themselves and their associates, rather than the eligible individuals who willingly and diligently went through the vetting process, according to the charges. DOI will continue to work with its federal, state and City law enforcement partners to make arrests in these types of crimes.”
FBI Assistant Director-in-Charge Rodriquez said: “As alleged today, public funds were allocated to ineligible recipients of social service benefit programs. In a scheme to divert this money to those who did not qualify for assistance, those charged breached the trust of the public and will be held accountable for their actions.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
The New York City Human Resources Administration provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among other things, providing food stamps to low-income families and individuals. Although the SNAP benefits program is administered locally through HRA, it is funded entirely by the federal government. To apply for SNAP benefits, an applicant must complete and sign an application form listing, among other things, the applicant’s income and financial assets. HRA Eligibility Specialists such as FLETCHER are supposed to interview SNAP program applicants and review applicant documentation in order to determine if the applicant is eligible to receive SNAP benefits.
Beginning in 2009, FLETCHER approached two landlords, who are referred to in the Complaint as CW-1 and CW-2, and who have pled guilty and are cooperating with the Government, and offered to provide CW-1 and CW-2 with monthly SNAP benefits in return for reoccurring payments of hundreds of dollars in bribes. CW-1 and CW-2 agreed to pay the bribes and, as a result, received tens of thousands of dollars of SNAP benefits for which they were not eligible from 2009 through 2015. CW-1 and CW-2 then recruited other individuals to take part in the scheme – including, but not limited to, the other defendants charged in the complaint – each of whom obtained monthly SNAP benefits arranged by FLETCHER, and without regard to whether the applicant qualified for such benefits, in return for continual bribes. In total, FLETCHER accepted more than $20,000 in bribes for improperly approving over $240,000 in SNAP benefits to CW-1, CW-2 and the remaining defendants. The applicants bribing FLETCHER were ineligible for SNAP benefits due to their income and/or the fact that they did not reside in New York City and thus were not eligible for New York City social service programs.
* * *
FLETCHER, 44, of the Bronx, New York, is charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of solicitation and receipt of bribes, which carries a maximum sentence of 10 years in prison; one count of honest services fraud, which carries a maximum sentence of 20 years in prison; and one count of theft of government funds, which carries a maximum sentence of 10 years in prison.
The following defendants were each charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, and one count of theft of government funds, which carries a maximum sentence of 10 years in prison:
- HILL, 48, Walkill, New York,
- WASHINGTON, 34, White Plains, New York
- FORD, 52, Jamaica, New York
- WILLIAMSON, 51, the Bronx, New York
- RALPH, 38, New Rochelle, New York
- BRYCE, 42, New Rochelle, New York
- WHYTE, 30, Wappingers Falls, New York
- VELAZQUEZ, 37, the Bronx, New York
- BULL, 39, the Bronx, New York
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative work of the DOI and the FBI in the investigation. He also expressed his thanks to the Bronx County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Robert L. Boone is in charge of the prosecution.
The charges contained in the Complaints 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
New Haven Crack Cocaine Trafficker Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMEEL WILKES, also known as “Biggs,” 36, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 127 months of imprisonment, followed by 10 years of supervised release, for distributing crack cocaine.
WILKES is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
According to court documents and statements made in court, WILKES operated a large-scale crack cocaine and marijuana trafficking operation in the greater New Haven area.
WILKES has been detained since his arrest on May 15, 2012. On November 24, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
Native of Guatemala Charged with Illegal ReentryRead the Press Release
PHILADELPHIA – Edgar Rolando Lopez, 45, a native of Guatemala, was charged today by indictment with reentry after deportation. According to the indictment, on or about January 20, 2011, Lopez, an alien and native and citizen of Guatemala, was deported and removed from the United States. On June 2, 2015, Lopez was found in the United States, having knowingly and unlawfully reentered without first applying to the Attorney General of the United States or his successor, the Secretary for Homeland Security for permission to reapply for admission, and without receiving in response the express consent of the Attorney General or his successor to reapply for admission.
If convicted, the defendant faces a maximum possible statutory sentence of 20 years in prison, a three year period of supervised release, a fine of up to $250,000 and a $100 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Joel Goldstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.