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25 June 2015
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.
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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.
Minkler sworn in as United States AttorneyRead the Press Release
INDIANAPOLIS - Today, United States District Court Chief Judge Richard L. Young, swore Josh Minkler in as the United States Attorney for the Southern District of Indiana. Under federal law, the United States District Court for the Southern District of Indiana appointed Minkler to fill the position effective immediately.
Minkler previously served as Acting United States Attorney, First Assistant U.S. Attorney and Drug and Violent Crime Unit Chief. Minkler has been an Assistant U.S. Attorney since 1994.
“I would like to thank the judges of the United States District Court for their faith in asking me to lead the United States Attorney’s Office,” said Minkler. “I am grateful for the opportunity to work for the public as our office goes forward to justly enforce the laws that unite us as a great nation.”
A native of Muncie, Indiana, Mr. Minkler graduated Muncie Northside High School in 1981, Wabash College in 1985 and Indiana University School of Law, Bloomington 1988.
“The Indiana Federal Community Defender congratulates Josh Minkler on being named United States Attorney for the Southern District of Indiana,” said Chief Federal Defender Monica Foster. “The Court could not have selected a smarter, more experienced, and fair person to lead the Office of the United States Attorney. Though we are foes in the courtroom, we have the utmost respect for his abilities and his character. He brings to the office a level of experience that will serve the citizens of the Southern District well in the struggle for justice.”
FBI Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Division congratulates Mr. Minkler on his appointment and looks forward to continuing their professional partnership. “The Southern District of Indiana is fortunate to have a United States Attorney of such a high caliber serving its citizens. It has been a distinct pleasure working alongside Josh and collaborating on the priorities of the Department of Justice.”
“Josh Minkler is an experienced and seasoned prosecutor who will make a fine United States Attorney,” said Special Agent in Charge of the DEA in Chicago, Dennis Wichern. “On behalf of all the employees of the DEA, we wish he and his staff all the best. The Office is in good hands under his guidance.”
Milwaukee Man Pleads Guilty to Federal Gun Charges as an Armed Career CriminalRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on June 24, 2015, Justin King Nalls (age: 27) of Milwaukee, Wisconsin, appeared in federal court in Green Bay and pleaded guilty to a single count of being a felon in possession of a firearm. Based on his prior record of violent felonies, Nalls qualifies as an Armed Career Criminal under federal law.
Nalls was arrested in October of 2014 for his role in the armed robbery of a Kewaunee County tavern. Further investigation linked Nalls to an additional armed robbery in Sheboygan County and a violent robbery in the City of Milwaukee. Nalls and a female associate placed ads offering prostitution services online, and then robbed at gunpoint those who responded to the advertisements. A search of Nalls’ residence and vehicle yielded a loaded .44 revolver and ammunition for a .357 caliber firearm, both of which are illegal for Nalls or any felon to possess.
Based on two previous armed robbery convictions in 2005, and a burglary conviction in 2009, Nalls falls under the Armed Career Criminal Act which requires that he serve not less than 15 years and up to a lifetime in prison. He is scheduled to be sentenced on September 14, 2015. He remains incarcerated pending that hearing.
The case was investigated by the Kewaunee County Sheriff’s Department, the City of Kewaunee Police Department, the Kewaunee County District Attorney’s Office, the Wisconsin Department of Justice - Division of Criminal Investigation, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). This case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
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Miami Gardens Resident Pleads Guilty in Stolen Identity Tax Refund Fraud Scheme Involving Identities from the Florida Department of Children and Families DatabaseRead the Press Release
A Miami Gardens resident pled guilty today in a stolen identity tax refund fraud scheme involving personal identification information taken from the State of Florida Department of Children and Families database.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Kyron Jonathan Nedd, 22, of Miami Gardens, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A(a)(1).
According to court documents, between February 1, 2014, and July 18, 2014, a total of 379 fraudulent federal income tax returns, for tax year 2013, were filed with the IRS from Nedd’s residence in Miami Gardens. The returns claimed $843,295 in tax refunds. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.
Court documents state that on February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (PII) - names, dates of birth and social security numbers - of hundreds of individuals. Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (DCF) database. IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts were used in fraudulent returns filed from Nedd’s residence.
According to court documents, federal law enforcement agents interviewed Nedd after serving the federal search warrant. Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and prepared without the taxpayers’ permission.
Nedd is scheduled to be sentenced on September 2, 2015 at 8:30 a.m., before the Honorable Robert N. Scola, Jr., United States District Judge. At sentencing, the defendant faces a maximum of ten years of imprisonment for the access devices charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
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
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS RAMIREZ-VASQUEZ, age 38, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about March 29, 2015, RAMIREZ-VASQUEZ was found in the United States after having been officially deported and removed on or about April 17, 2000.
RAMIREZ-VASQUEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for August 6, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Carlos Ramirez-Vasquez Factual Basis.pdf (48.01 KB)
Man Arrested, Charged with Possession of Firearm by Convicted FelonRead the Press Release
St. Thomas, USVI – Dwayne Fahie, 26, made his initial appearance in District Court today before U.S. Magistrate Judge Ruth Miller after his arrest for Possession of a Firearm by a Convicted Felon and Possession of an Unlicensed Firearm, United States Attorney Ronald W. Sharpe announced. Fahie was released after posting a $50,000 property bond.
On June 4, 2015, a federal grand jury returned a three-count indictment against Fahie, charging him with two counts of Possession of a Firearm by a Convicted Felon and one count of Possession of an Unlicensed Firearm. According to the indictment, Fahie was found in possession of a firearm after he was convicted in the Superior Court of reckless endangerment. If convicted of Possession of a Firearm by a Convicted Felon under federal law, Fahie faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of Possession of a Firearm by a Convicted Felon under territorial law, he faces a maximum sentence of 20 years in prison and a $25,000 fine. For Possession of an Unlicensed Firearm, Fahie faces a maximum sentence of five years in prison and a $15,000 fine.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty. This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo- protte.
Leaders of Brownsville, Brooklyn-Based Gang Convicted of Racketeering, Murder in Aid of Racketeering, and Other ChargesRead the Press Release
Earlier today, following approximately eight weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Paul Rivera and Michael Garrett on charges of racketeering, murder, sex trafficking, narcotics trafficking, money laundering, and witness tampering. These charges arose out of the defendants’ participation in and leadership of a gang known as “Together Forever” or the rap group “TF Mafia” (also referred to as “TF”) that for many years engaged in narcotics trafficking, sex trafficking, gang activity, and related violence in areas including the Brownsville neighborhood of Brooklyn, New York, an area victimized by a high rate of gang and drug related violent crime. When sentenced by United States District Judge Kiyo A. Matsumoto, both defendants face a mandatory minimum sentence of life imprisonment on the most serious charge.
The verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“With this verdict, the jury sent a message that our community will not stand for those who prey upon young, vulnerable girls for their own financial gain and supply our neighborhoods with dangerous narcotics,” stated Acting United States Attorney Currie. “We also hope that this verdict brings some closure to the family of Robert Barber, who was gunned down by these defendants in their effort to protect their illegal enterprise.” Mr. Currie extended his thanks to the Internal Revenue Service – Criminal Investigation, New York City Police Department, the Pennsylvania State Police, the New Jersey State Police, and the United States Attorney’s Office for the Middle District of Pennsylvania.
As proven at trial, the defendants’ were leaders of TF Mafia, a Brooklyn-based rap group, and Together Forever, a group that has operated in various neighborhoods of Brooklyn since the 1980s. The gang had members engaged in criminal activity in Brooklyn as well as in other parts of New York and in Pennsylvania. In connection with their leadership of TF, Rivera and Garrett plotted to kill — and killed — Robert Barber in the summer of 2011 because they perceived Barber, who was a member of a rival gang, as a threat to TF’s control of narcotics sales in Brownsville. On the evening of August 22, 2011, Rivera observed Barber walking outside the tattoo shop run by Rivera, which was located at 361 Sutter Avenue in Brownsville. Rivera took a firearm that had been supplied by Garrett, stood in the entrance to the tattoo shop, and shot Barber once, killing him. Garrett subsequently provided Rivera with payment, in the form of money and heroin, for the murder.
The jury also found the defendants guilty of interstate prostitution and sex trafficking, including sex trafficking by force, fraud, or coercion, and sex trafficking of one or more minors, which activities were committed as part of TF’s illegal activities. At trial, two victims testified about their involvement with TF, including one victim who became involved with TF when she was 14 years old, and another who testified that she began working as a prostitute for the defendants shortly after she met them, which, as proven at trial, was when she was 15 years old.
The jury found also found the defendants guilty of narcotics trafficking conspiracy, involving cocaine base, heroin, cocaine, and marijuana, and firearms offenses, including use of a firearm to cause the death of Robert Barber. Garrett was also convicted on money laundering, and Rivera was convicted of witness tampering and attempted obstruction of justice related to his efforts to convince a witness to cease cooperating with the government.
The government’s case is being prosecuted by Assistant United States Attorneys Taryn Merkl, Alixandra Smith, and Michael Robotti.
The Defendants:
PAUL RIVERA
Age: 48
Brooklyn, NY
MICHAEL GARRETT
Age: 40
Brooklyn, NY
E.D.N.Y. Docket No. 13-149 (KAM)
Lawrence Man Sentenced on Federal Drug ChargesRead the Press Release
CONCORD, N.H. – Leonardo Almonte-Ramirez, 31, of Lawrence, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 33 months in prison for distributing cocaine, and possessing cocaine, crack cocaine, and heroin with the intent to distribute it, announced Acting United States Attorney Donald Feith.
In May 2013, detectives from the Nashua Police Department conducted a controlled purchase of cocaine from the defendant. During a subsequent search of the vehicle from which that transaction occurred, officers located a sophisticated electronic hidden compartment concealing quantities of cocaine, crack cocaine, and heroin; $2,008 in cash; and the social security card and permanent resident card of Leonardo Almonte-Ramirez.
This prosecution arose from an investigation by the police departments of Nashua and Hudson, New Hampshire, in conjunction with the Drug Enforcement Agency and the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Lafayette man pleads guilty to possessing stolen firearmRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man pleaded guilty Wednesday to possessing a stolen handgun.
Cordera Dean Felix, 27, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to one count of possession of a stolen firearm. According to evidence presented at the guilty plea, Lafayette Police arrested Felix on June 27, 2014, near the 900 block of East Simcoe Street on an active warrant. Officers recovered a Glock model 36, .45 caliber pistol from Felix. He stated that he was approached by juveniles who showed him a bag containing approximately eight handguns. He purchased the .45 caliber pistol from them. The handgun was reported stolen from Dave’s Gun Shop in Lafayette.
Felix faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Dominic A. Rossetti is prosecuting the case.
Kenmare, ND, Native Sentence for Attempted Sexual Exploitation of a MinorRead the Press Release
BISMARCK - Acting U. S. Attorney Christopher C. Myers announced that on June 25, 2015, Vernon Brekhus, 36, Kenmare, ND, was sentenced before Daniel L. Hovland to serve 45 years in prison for one count of Sexual Exploitation of a Minor, and 20 years in prison for one count of Possession of Materials Involving the Sexual Exploitation of a Minor, with the two terms of confinement to be run concurrent. Judge Hovland further sentenced Brekhus to a lifetime of supervised release and to also pay $1,500 in restitution, in conjunction with a $200 special assessment to the Department of Justice’s Crime Victims’ Fund.
This case came to the attention of law enforcement when a detective working in an undercover capacity came into contact with Brekhus while working online in an area of the Internet known for incest and sexual exploitation of children. Brekhus later contacted the undercover officer to arrange a Skype video conversation. A search warrant was issued for Brekhus’ residence where a laptop computer, a personal computer, thumb drives, as well as other electronic devices were seized. Upon forensic examination and analysis of the electronic devices indicated, there were 793 pictures and 16 videos containing child pornography.
Judge Hovland also directed that Brekhus must register as a sex offender for the rest of his life.
This case was investigated by the Federal Bureau of Investigation (FBI) and the North Dakota Bureau of Criminal Investigations (BCI) - Internet Crimes Against Children (ICAC) Task Force.
Assistant U. S. Attorney Jennifer Puhl and Assistant U. S. Attorney Gary Delorme prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children (ICAC) Task Force, help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Sues Four Michigan Hospital Systems for Unlawfully Agreeing to Limit Marketing for Competing Healthcare ServicesRead the Press Release
The Department of Justice today sued four Michigan hospital systems that for years unlawfully agreed to allocate territories for marketing, depriving consumers and physicians of important information about competing providers and other benefits of unfettered competition. Three of the systems – Hillsdale Community Health Center, Community Health Center of Branch County, Michigan, and ProMedica Health System Inc. – agreed to settle the charges. The department will continue to litigate against a fourth, W.A. Foote Memorial Hospital, doing business as Allegiance Health, to prohibit agreements that unlawfully allocate territories for marketing of competing healthcare services.
“These hospitals conspired to deprive consumers and physicians of important health information and education,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Instead of putting patients first, these hospitals secretly agreed not to compete. This action will terminate the agreements limiting marketing and make sure the citizens of south-central Michigan will have access to the facts they need to make informed healthcare choices.”
As alleged in the complaint, hospitals compete to attract patients by advertising, direct mailings to patients, outreach to physicians and employers, conducting health fairs and offering free health screenings. Hillsdale, Allegiance, Branch and ProMedica’s Bixby and Herrick Hospitals – the only hospitals in their respective counties – each competed through marketing to attract patients. The complaint alleges that Hillsdale curtailed this competition for years by entering into agreements with Allegiance, Branch and ProMedica to limit the marketing of competing healthcare services. According to the complaint, the defendants’ agreements deprived patients and physicians of information needed to make informed healthcare decisions. Patients in Hillsdale County, Michigan, were also prevented from receiving free medical services – such as health screenings and physician seminars – that they would have received from Allegiance in the absence of its unlawful agreement with Hillsdale.
The Antitrust Division, joined by the Michigan Attorney General’s Office, filed the civil antitrust lawsuit in the U.S. District Court for the Eastern District of Michigan, while simultaneously filing a proposed settlement that, if approved by the court, would resolve the lawsuit with respect to the three settling systems.
The proposed settlement prohibits Hillsdale, Branch and ProMedica from agreeing with other healthcare providers, including hospitals and physicians, to limit marketing or to divide any geographic market or territory. The proposed settlement also prohibits communications among the defendants about their marketing activities, subject to limited exceptions. The settling hospitals will also implement compliance measures tailored to prevent the recurrence of these types of anticompetitive practices in the future.
Hillsdale is a Michigan corporation headquartered in Hillsdale, Michigan, with a general acute-care hospital located in Hillsdale County, Michigan, that has 47 beds and a medical staff of over 90 physicians.
Allegiance is a Michigan corporation headquartered in Jackson, Michigan, with a general acute-care hospital located in Jackson County, Michigan, that has 480 beds and a medical staff of over 400 physicians.
Branch is a Michigan corporation headquartered in Coldwater, Michigan, with a general acute-care hospital located in Branch County, Michigan, that has 87 beds and a medical staff of over 100 physicians.
ProMedica is an Ohio corporation headquartered in Toledo, Ohio, with locations in northwest Ohio and southern Michigan, including Bixby and Herrick Hospitals in Lenawee County, Michigan. Bixby is a general acute-care hospital that has 88 beds and a medical staff of over 120 physicians. Herrick is a general acute-care hospital with 25 beds and a medical staff of over 75 physicians.
The proposed settlement with Hillsdale, Branch and ProMedica, along with the department’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Hillsdale Complaint.pdf (121.83 KB)
Hillsdale Stipulation and Order.pdf (228.83 KB)
Hillsdale CIS.pdf (63.91 KB)
Justice Department Settles Immigration-Related Discrimination Claim Against Abercrombie & Fitch Inc.Read the Press Release
The Justice Department announced today that it reached an agreement with Abercrombie & Fitch Inc. (Abercrombie), a clothing retailer headquartered in Columbus, Ohio. The agreement resolves a complaint filed with the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), claiming that the company discriminated against a non-U.S. citizen in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that Abercrombie required a non-U.S. citizen, but not similarly-situated U.S. citizens, to produce specific documentary proof of her immigration status for the purpose of verifying her employment eligibility. Specifically, the Department found that Abercrombie required the individual to present a green card. The INA’s anti-discrimination provision prohibits employers from making specific documentary demands based on citizenship status or national origin when verifying an employee’s employment eligibility.
Under the settlement agreement, Abercrombie will pay $3,661.14 in back pay to the complainant and a civil penalty to the United States; establish a back pay fund of $153, 932.00 to compensate other individuals who may have been harmed; and be subject to monitoring of its employment eligibility verification practices for two years.
“The division is committed to identifying and tearing down illegal barriers that prevent authorized workers from working,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Civil Rights Division commends Abercrombie for working with the division to resolve this matter expeditiously.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. Trial Attorney Luz V. Lopez-Ortiz and Paralegal Ryan Thompson investigated this matter.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Jury Finds Woman Guilty on Charges of Conspiracy to Distribute MethRead the Press Release
PITTSBURGH – Racquel Sanchez, who resided in Lehigh Acres, Fl., and Tucson, Az., during the last two years, was convicted at the conclusion of a federal jury trial of conspiring to distribute at least 50 grams of pure methamphetamine or at least 500 grams of a mixture containing methamphetamine, United States Attorney David J. Hickton announced today.
Sanchez, 35, was tried before United States District Court Judge David S. Cercone in Pittsburgh, Pa.
During the 4 days of trial, evidence was presented that, during July 2013, Sanchez, who was residing in Arizona at the time, agreed to supply a Cleveland dealer with 1 pound (approximately 450 grams) of pure methamphetamine. After Sanchez shipped the pure methamphetamine to Cleveland, she flew to Cleveland and accepted delivery of the methamphetamine along with the Cleveland dealer. The methamphetamine was then mixed with another substance to expand its volume and supplied to a dealer in the Pittsburgh area where it was marketed as “molly”, a term for powder ecstasy or powder MDMA.
Judge Cercone scheduled sentencing to occur on November 16, 2015, at 10:00 a.m. The law provides for a maximum total sentence of at least 10 years and up to life in prison and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Police Department, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
Jury Convicts Dayton Man of Distribution and Possession of Child PornographyRead the Press Release
DAYTON – A United States District Court jury convicted Demian Pina, 34, of Dayton, Ohio of distribution and possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigations (FBI), Troy Police Chief Charles Phelps, Dayton Police Chief Richard Biehl, and members of the Internet Crimes Against Children (ICAC) task force, announced verdict reached today, which was returned following a trial that began on May 18 before U.S. District Judge Thomas M. Rose.
In November 2010, an undercover investigator working for the Cuyahoga County, Ohio ICAC was investigating individuals sharing child pornography using peer-to-peer networks. The investigator downloaded 12 image and video files containing child pornography from a person using a particular IP address. Records from the Internet Service Provider determined that the IP addressed received service at Demian Pina’s residence. A search warrant was executed at Mr. Pina’s residence in February 2011, in which various electronic media were seized. Subsequent examination of this computer media identified that two of the desktop computers contained images of child pornography.In November 2012, another undercover investigator working for the Cuyahoga County ICAC downloaded five image files containing child pornography from a person using a different IP address on the same peer-to-peer network. This IP address also received service at Mr. Pina’s residence. On three dates in March 2013, an undercover officer working for the Troy Police Department downloaded via the peer-to-peer network seven image files containing child pornography from the IP address receiving service at Mr. Pina’s residence. A search warrant was executed at Mr. Pina’s residence in June 2013 in which various electronic media were seized. Subsequent examination of this computer media identified that a desktop computer, laptop, and an external hard drive contained images and videos of child pornography.
Mr. Pina was identified as the individual distributing child pornography on the peer-to-peer network. He was indicted in February 2014 on five counts of distribution of child pornography and two counts of possession of child pornography. On June 25, 2015, following a four day jury trial, Mr. Pina was found guilty of all seven counts.
Pina faces between 5 and up to 20 years in prison on the distribution counts and up to 10 years imprisonment on the possession counts. He has been in custody since his arrest on February 26, 2014 and is scheduled for sentencing on October 16, 2015.
U.S. Attorney Stewart commended the cooperative investigation of this case by the FBI, Troy and Dayton Police Departments, and ICAC task force members. Assistant United States Attorneys Christy L. Muncy and Alex Sistla are representing the government in this case.
Independence Man Sentenced to 15 Years for Federal Gun ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC O’NEAL SELDERS, age 43, of Independence, was sentenced today after previously pleading guilty to a one-count Indictment for a federal gun violation.
U.S. District Judge Eldon E. Fallon sentenced SELDERS to 180 months incarceration, to be followed by 5 years of supervised release and a $100 special assessment.
On July 19, 2012, SELDERS – who has four prior state felony convictions – was arrested by Tangipahoa Sherriff’s Deputies for illegally possessing a .38 caliber revolver within the Eastern District of Louisiana. SELDERS was sentenced to a mandatory minimum due to his classification by federal law as an “Armed Career Criminal.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Houston Man Indicted After Seizure of Loaded Firearm and over 15 Kilograms of CocaineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL MENDEZ, age 51, of Houston, was charged today in a three-count Indictment alleging violations of federal drug and firearms laws. Specifically, the Indictment charges MENDEZ with: conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine hydrochloride; possession with intent to distribute over five kilograms of cocaine hydrochloride; and possession of a firearm in furtherance of a drug-trafficking offense.
According to the Indictment, on June 10, 2015, Louisiana State Police conducted a traffic stop of MENDEZ as he was driving on Interstate 12 in Tangipahoa Parish. During the stop, police discovered over fifteen kilograms of cocaine hydrochloride and a loaded 9 millimeter Glock pistol inside of the car.
If convicted of either drug offense, MENDEZ faces between ten years to life in prison, a $10,000,000 fine, and at least five years of court supervision after his release. If convicted of the gun offense, MENDEZ faces at least five years in prison, a $250,000 fine, and no more than five years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorney Brandon S. Long is responsible for the prosecution.
Michael Mendez Indictment.pdf (300.85 KB)
Hopkins County Residents Arrested and Charged in A Conspiracy to Sell “Spice”Read the Press Release
BOWLING GREEN, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the successful arrest of 13 Hopkins County, Kentucky residents charged with conspiring to distribute synthetic marijuana or “spice.”
Yesterday morning, agents with the Drug Enforcement Administration (DEA), Kentucky State Police (KSP) and Madisonville Police Department arrested the defendants who are all charged in a single count indictment that was unsealed in U.S. District Court in Bowling Green, Kentucky.
According to the indictment, between October 2013, and June 2015, defendants Christopher Ray Barnes, Jessica L. Barnes, Joshua Elias Betar, Jason Matthew Demoss, Kara Ann Green, Nicholas Andrew Hollenbach, Matthew Robert Nash, Jeremy Jay Oglesby, Paula D. Oglesby, Megan Marie Tyson, Uriah Simpson, Roger Dal Thomas, and Jackie Wayne Vincent, Jr., all from Madisonville and surrounding communities, conspired to knowingly and intentionally distribute 100 kilograms or more of synthetic marijuana or “spice,” intended for human consumption.
Further, during the manufacture of “spice,” plant material is sprayed with a chemical compound AB-PINACA, a controlled substance analogue of ADB-PINACA, a Schedule I controlled substance, not legally sold in the United States. The chemical compound is manufactured in China and sold through mail order.
The defendants made their initial appearance before Magistrate Judge H. Brent Brennenstuhl in Bowling Green, yesterday, and all but defendants Green, Tyson, Simpson and Jessica Barnes were ordered to remain in the custody of the U.S. Marshals service pending arraignments and detention hearings to held Monday, June 29, 2015 in Owensboro. Defendant Jason Demoss is in state custody.
If convicted at trial, the defendants could be sentenced to no less than 5 years and no more than 40 years in prison, fined $5,000,000 and serve a four year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by DEA, KSP and the Madisonville Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EUELIO MARQUEZ-CHACON, age 40, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced MARQUEZ-CHACON to time served months imprisonment followed by 1 year of supervised release, and a $100 special assessment.
MARQUEZ-CHACON will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about March 4, 2015, MARQUEZ-CHACON was found in the United States after having been officially deported and removed on or about June 12, 2003.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Grand Forks Man Pleads Guilty to Possession and Receipt of Child PornographyRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on June 24, 2015, Alan Douglas Eslinger, 44, Grand Forks, North Dakota, pleaded guilty before U. S. District Judge Ralph R. Erickson to one count of Receipt of Child Pornography and three counts of Possession of Child Pornography.
This case came to the attention of law enforcement after an agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force (ICAC), discovered a computer geographically located in ND that was sharing child pornography in a peer-to-peer (P2P) network. Homeland Security Investigators traced the IP address to an industrial park located in northeast Grand Forks, ND. Working with the network administrator of the industrial park, BCI agents were able to pinpoint the specific location in the industrial park where Eslinger was operating his computer. Based upon this evidence, BCI Special Agents obtained and executed a search warrant for a garage leased by Eslinger in the industrial park. Seized as a result of the search warrant were various electronic media which contained visual depictions of child pornography.
"Crimes against children will not be tolerated,” said acting Special Agent in Charge William M. Lowder of Homeland Security Investigations (HSI), located in St. Paul, MN. “HSI will continue to work closely with our local and federal law enforcement partners to investigate those who sexually exploit our young people and ensure that these predators feel the full weight of the law.”
The maximum combined penalties for the charges is 80 years in prison, with a minimum of 5 years in count one. Chief Judge Erickson has set a sentencing hearing for September 17, 2015.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigations.
Assistant U. S. Attorney Jennifer Puhl is the prosecutor assigned to the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Gaston Man Sentenced in Counterfeit Erectily Dysfunction Medication CaseRead the Press Release
Contact Person: Dewayne Pearson (803) 929-3000
Columbia, SC - Bill Nettles, United States Attorney for the District of South Carolina, announced today that Arthur Fleming Moler, age 51, of Gaston, was sentenced to 78 months imprisonment for his role in trafficking more than five million dollars’ worth of counterfeit medications. Facts presented during the trial showed that Moler sold and shipped counterfeit goods and medications, including illegal replicas of Viagra and Cialis, from his Columbia based business, South Carolina Liquidations.
According to testimony presented during the case, United States Customs agents discovered counterfeit golf equipment being shipped from China to South Carolina Liquidations at 1215 Shop Road in Columbia, South Carolina. When investigators entered the warehouse, they discovered hundreds of counterfeit designer handbags, sunglasses, electronic equipment and over 230,000 counterfeit erectile dysfunction pills.
The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement, the South Carolina Secretary of State’s Office and the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Four Central Valley Men Indicted on Cocaine Trafficking ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Raymond Slaton, 43, of Merced; Sidney Allen, 48, of Merced; Donnell Mays, 39, of Turlock; and Omar Lopez, 22, of Turlock, charging them with federal drug trafficking offenses United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 20, 2015, Mays and Lopez went to Allen’s residence where they delivered a half kilogram of cocaine to Allen and Slaton. Mays and Lopez then left the residence in a car in possession of another half kilogram of cocaine. As law enforcement officers attempted to stop Lopez’s car for a vehicle code violation, Lopez failed to yield. While Mays and Lopez were pursued by patrol units from the Merced Police Department, a bag containing the half kilogram of cocaine was thrown from their car. After a high‑speed chase, Mays and Lopez were arrested.
This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Justice, the Merced Police Department, the California Highway Patrol, the Merced Gang Task Force, and the Merced Narcotic Task Force. Assistant United States Attorneys Kimberly A. Sanchez and Daniel Griffin are prosecuting the case.
If convicted, Slaton, Mays and Allen face a maximum statutory penalty of life in prison, a mandatory minimum of 10 years in prison, and a $10 million fine. Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine.
Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Owner of Ohio Gambling Supplies Store Sentenced to Prison for Running Illegal Gambling Operation, Tax Fraud and Witness TamperingRead the Press Release
The former co-owner of R&J Partnership Ltd., doing business as Reece’s Las Vegas Supply (RLVS), a gambling supplies store located in Dayton, Ohio, was sentenced today to serve two and one-half years in prison, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Reece Powers II, 76, was sentenced today to serve 30 months in prison following his guilty plea on March 31 to multiple federal offenses, including conspiracy to operate an illegal gambling business, operating an illegal gambling business, conspiracy to defraud the Internal Revenue Service (IRS) and witness tampering. Powers was also sentenced to three years of supervised release following his prison sentence and ordered to pay a $400 special assessment, with restitution to be determined at a later date. The charges were part of an indictment unsealed on Sept. 26, 2014. The other defendants charged in that indictment and in related cases, including Douglas A. Sanders, Jason S. Pulaski, Michael E. Gedeon, Jenifer Williams, Walter F. Dyer, Virgil D. Rockwell and Allen G. Beck, were each sentenced yesterday and today after pleading guilty to illegal gambling, obstruction of justice and tax fraud offenses.
According to court documents and statements made in court, between February 2004 and May 2011, Powers oversaw the recruitment of local non-profit charitable organizations to sponsor poker fundraisers that included casino-like card games, such as Texas Hold’em tournaments. Powers entered into arrangements with the charitable organizations to control all of the funds generated from the poker fundraisers.
These poker fundraisers were exempted from the general prohibition against games of chance under then-existing Ohio laws, subject to the requirement that all the funds received from the games of chance, after deducting only prizes paid out and necessary expenses sanctioned under law, be transferred to the charitable organization for their sole benefit and use. Powers, with the help of his co-conspirators, took a portion of the money generated from the poker fundraisers and used those funds to pay the events’ workers, among other things, in violation of Ohio law and federal gambling laws.
Powers provided false accountings to the charitable organizations of the funds received from the events and skimmed a portion of the money. Powers either supervised or personally distributed illegal cash payments to his co-conspirators and employees who worked as card dealers, cashiers, chip sellers, pit bosses, tournament directors and managers. Powers and his co-conspirators also falsely held themselves out as uncompensated volunteers at the poker fundraisers.
In 2009, Powers and Beck, a former business broker, conspired to defraud the IRS in attempting to sell RLVS. Beck previously pleaded guilty to a conspiracy charge. In Powers’ effort to evade taxes, Powers and Beck arranged the sale to make it appear as if the business and its associated real estate was sold for an amount less than its actual sale price.
In February 2010, Powers also tampered with a witness testifying before a federal grand jury by instructing the witness to testify falsely that the witness and other RLVS staffers did not get paid for working at the poker fundraisers. Pulaski, Gedeon, Williams and Dyer each pleaded guilty to committing obstruction of justice by falsely testifying before a federal grand jury that they were uncompensated volunteers at the poker fundraisers.
In addition to Powers’ sentence, U.S. District Judge Timothy Black of the Southern District of Ohio sentenced the other defendants as follows:
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Sanders was sentenced to serve 12 months and one day in prison and three years of supervised release, and ordered to pay a $200 special assessment;
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Pulaski was sentenced today to serve 12 months and one day in prison and three years of supervised release, and ordered to pay a $200 special assessment;
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Gedeon was sentenced to serve one day in prison and three years of supervised release to include two months of home incarceration, and ordered to pay a $200 special assessment;
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Williams was sentenced to serve one day in prison, three years of supervised release to include six months of home incarceration and 50 hours of community service, and ordered to pay a $200 special assessment;
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Dyer was sentenced to serve one day in prison and three years of supervised release, and ordered to pay a $3,000 fine and a $300 special assessment;
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Rockwell was sentenced to three years of probation, and to pay a $1,000 fine and a $100 special assessment; and
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Beck was sentenced to three years of probation and 100 hours of community service, and ordered to pay a $500 fine and a $100 special assessment.
Acting Assistant Attorney General Ciraolo commended the special agents of the IRS-Criminal Investigation, who investigated the case, and Assistant Chief Jorge Almonte and Trial Attorneys Christopher P. O’Donnell and Austin L. Furman of the Justice Department’s Tax Division, who prosecuted the case. Ciraolo also thanked U.S. Attorney Carter M. Stewart of the Southern District of Ohio for the substantial assistance provided by his office.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found on the division’s website.
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Former Employee of Bank of the West Sentenced to Prison for Federal Embezzlement ChargesRead the Press Release
ALBUQUERQUE – Angela Giddings, 38, of Albuquerque, N.M., was sentenced today to 24 months in federal prison followed by three years of supervised release for her convictions on embezzlement by a bank employee and embezzlement from Indian tribal organizations. She also was ordered to pay $217,125.00 in restitution to the Bank.
Giddings was indicted on Dec. 16, 2014, and charged with 12 counts of embezzlement by a bank employee; six counts of embezzlement from Indian tribal organizations; and four counts of aggravated identity theft. Giddings committed these crimes in Bernalillo County, N.M., between Feb. 2, 2013, and July 18, 2014. At the time, Giddings was employed as a customer service manager for Bank of the West.
According to the indictment, Giddings embezzled funds entrusted to the bank by withdrawing and transferring funds from the accounts of customers without authorization and for her own use. Giddings’ unlawful withdraws and transfers ranged from $15,000.00 to $60,000.00. The victims of Giddings’ criminal conduct included the To’hajilee Community School Board and the Cañoncito Band of Navajos. The aggravated identity theft counts charged Giddings with using the names, addresses, and personal identifiers of individuals to commit felony offenses.
On Feb. 13, 2015, Giddings pled guilty to one count of embezzlement by a bank employee and one count of embezzlement from an Indian tribal organization. In entering the guilty plea, Giddings admitted that between Jan. 9, 2012 and July 18, 2014, she misapplied and embezzled money by making unauthorized withdrawals and transfers for her own benefit. She further admitted that on July 18, 2014, she transferred $55,000.00 from a private individual’s account and $60,000.00 from the To’hajilee Community School Board account without authorization and for her own purposes with the intent to defraud.
This case was investigated by the Albuquerque office of the FBI and the Office of Inspector General of the Federal Deposit Insurance Corporation, and was prosecuted by Assistant U.S. Attorney Jeremy Peña.
Former Chairman of International Credit Union Pleads Guilty to Wire FraudRead the Press Release
Samuel J. Cusumano Jr., 65, of Orlando, Florida, pleaded guilty yesterday afternoon to wire fraud in connection with his fraudulent solicitation of more than $17 million from 400 investors of the Swedish-registered Storehouse Credit Union. The guilty plea was announced by U.S. Attorney Pamela C. Marsh for the Northern District of Florida.
During his plea, Cusumano admitted that between 2007 and 2009, as the chairman of the board of Storehouse, he promoted the international credit union as a high yield investment opportunity through intentionally misleading presentations and materials. Cusumano fraudulently induced investors to transfer monies to investment accounts under Cusumano’s control by misrepresenting the rates of return being generated by the business. He falsely claimed that Storehouse used professional currency traders when, in fact, Cusumano personally executed all trades from his home, investing primarily in the Foreign Currency Exchange Market. Although the business was actually losing money, Cusumano created fraudulent financial statements to convince investors that Storehouse was reaching or exceeding the high rates of return that Cusumano had promised them. When investors discovered that they were unable to withdraw their funds due to trading losses, a financial audit was conducted. The audit revealed that investor funds had been depleted, that earnings had been overstated and that Cusumano had used a large portion of the investors’ funds to pay personal expenses. Investors resided in the United States, including in the Northern District of Florida, Canada, Great Britain and Australia.
Sentencing is scheduled for Sept. 22, 2015, at 12:30 p.m. at the U.S. Courthouse in Gainesville, Florida. Cusumano faces a maximum of 20 years imprisonment.
The charges result from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Gregory P. McMahon.
The U.S. Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Chairman of International Credit Union Pleads Guilty to Wire FraudRead the Press Release
GAINESVILLE, FLORIDA – Samuel J. Cusumano Jr., 65, of Orlando, Florida, pled guilty yesterday afternoon to wire fraud in connection with his fraudulent solicitation of more than $17,000,000 from 400 investors of the Swedish-registered Storehouse Credit Union. The guilty plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his plea, Cusumano admitted that, between 2007 and 2009, as the chairman of the board of Storehouse, he promoted the international credit union as a high yield investment opportunity through intentionally misleading presentations and materials. Cusumano fraudulently induced investors to transfer monies to investment accounts under Cusumano’s control by misrepresenting the rates of return being generated by the business. He falsely claimed that Storehouse used professional currency traders when, in fact, Cusumano personally executed all trades from his home, investing primarily in the Foreign Currency Exchange Market. Although the business was actually losing money, Cusumano created fraudulent financial statements to convince investors that Storehouse was reaching or exceeding the high rates of return that Cusumano had promised them. When investors discovered that they were unable to withdraw their funds due to trading losses, a financial audit was conducted. The audit revealed that investor funds had been depleted, that earnings had been overstated, and that Cusumano had used a large portion of the investors’ funds to pay personal expenses. Investors resided in the United States, including in the Northern District of Florida, Canada, Great Britain, and Australia.
Sentencing is scheduled for September 22, 2015, at 12:30 p.m. at the U.S. Courthouse in Gainesville. Cusumano faces a maximum of 20 years imprisonment.
The charges result from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant United States Attorney Gregory P. McMahon.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Former Amtrak Police Officer Pleads Guilty in Manhattan Federal Court to Embezzlement of Union FundsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that ERIC GIVENS, a former police officer with the National Railroad Passenger Corporation (“Amtrak”), and the former treasurer of the national union for Amtrak police officers, pled guilty yesterday in Manhattan federal court to embezzlement of union funds. GIVENS, who was arrested last summer, entered his plea before U.S. District Judge Analisa Torres.
According to the Complaint, Indictment, and plea proceeding:
At the time of his arrest, GIVENS had been employed as a police officer with Amtrak since May 1997, and was most recently assigned to Penn Station, in New York, New York. GIVENS served as the elected treasurer of the Amtrak Police Lodge 189 Labor Committee (the “Labor Committee”), the national union for Amtrak police officers, from 2003 through January 2010. During the same period, and continuing until November 2013, GIVENS also served as the elected treasurer of Amtrak Police Lodge 189 Inc. (the “Lodge”), a fraternal organization affiliated with the Labor Committee.
Starting in at least 2008, GIVENS improperly took more than $100,000 in total from the Labor Committee and Lodge by fraudulently charging personal expenses to the Labor Committee and Lodge and by withdrawing cash for his own purposes, and took steps to hide what he had done. During this period, GIVENS used the debit card of the Labor Committee to pay for, among other things, gasoline and food, and used the debit card of the Lodge to pay for, among other things, travel, hotels in multiple cities, and entertainment in New York and New Jersey. GIVENS also withdrew thousands of dollars in cash from Labor Committee and Lodge bank accounts.
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GIVENS, 52, of East Stroudsburg, Pennsylvania, pled guilty to embezzling union funds. He faces a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for September 24, 2015, at 4:00 p.m., before U.S. District Judge Analisa Torres.
Mr. Bharara praised the outstanding work of the U.S. Department of Labor’s Office of Labor-Management Standards and its Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations. Mr. Bharara also thanked the Amtrak Police Department’s Office of Internal Affairs for its assistance.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.For-profit Education Company to Pay $13 Million to Resolve Several Cases Alleging Submission of False Claims for Federal Student AidRead the Press Release
WASHINGTON – Education Affiliates (EA), a for-profit education company based in White Marsh, Maryland, has agreed to pay $13 million to the United States to resolve allegations that it violated the False Claims Act by submitting false claims to the Department of Education for federal student aid for students enrolled in its programs. EA operates 50 campuses in the United States under various trade names, including All State Career, Fortis Institute, Fortis College, Tri-State Business Institute Inc., Technical Career Institute Inc., Capps College Inc., Driveco CDL Learning Center, Denver School of Nursing and Saint Paul’s School of Nursing, which provide post-secondary education training programs in several professions in the states of Alabama, Florida, Maryland, Ohio and Texas.
“Today’s settlement is an excellent example of cooperation among multiple offices of the federal government to achieve a result that protects federal student aid funding and the interests of individual students,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Schools have an obligation to live up to their commitment to the government and their students when they accept federal student aid funds.”
The government alleged that employees at EA’s All State Career campus in Baltimore altered admissions test results so as to admit unqualified students, created false or fraudulent high school diplomas and falsified students’ federal aid applications, and that multiple EA schools referred prospective students to “diploma mills” to obtain invalid online high school diplomas. These allegations also led to criminal convictions of two All State Careers admission representatives, Barry Sugarman and Jesse Moore, and a test proctor, Jacqueline Caldwell.
“Students who apply for federal financial aid to attend trade and professional schools are required to show that they have the necessary skills to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland. “This settlement resolves the government's allegations that Education Affiliates defrauded the government by changing students' test scores and enrolling students with invalid diploma mill high school ‘diplomas’ ordered online.”
“The various cases that were settled here include numerous allegations of predatory conduct that victimized students and bilked taxpayers,” said Under Secretary Ted Mitchell of the U.S. Department of Education. “In particular, the settlement provides for repayment of $1.9 million in liabilities ordered by Secretary of Education Arne Duncan that resulted from EA awarding federal financial aid to students at its Fortis-Miami campus based on invalid high school credentials issued by a diploma mill. Secretary Duncan made clear that such abusive behavior would not be tolerated, and we will continue to work with the Justice Department and other federal agencies to ensure that postsecondary institutions face consequences when they violate the law.”
The settlement agreement also resolves allegations related to EA schools in Birmingham, Alabama, Houston and Cincinnati, including violations of the ban on incentive compensation for enrollment personnel, misrepresentations of graduation and job placement rates, alteration of attendance records and enrollment of unqualified students.
“Using fake high school diplomas is a particularly insidious abuse of the federal student aid system,” said Inspector General Kathleen Tighe of the U.S. Department of Education’s Office of Inspector General (OIG). “Students received only a worthless piece of paper.” Tighe commended the efforts of OIG staff and Department of Justice attorneys, whose outstanding investigative work led to this significant settlement.
The settlement resolves five lawsuits filed under the whistleblower provisions of the False Claims Act, which permit private citizens to sue on behalf of the United States and share in the recovery. As part of this resolution, the five whistleblowers will receive payments totaling approximately $1.8 million.
The settlements were the result of a coordinated effort by the U.S. Attorneys’ Offices of the District of Maryland, the Southern District of Texas, the Northern District of Alabama, Southern District of Ohio and the Middle District of Tennessee, as well as the Civil Division’s Commercial Litigation Branch, and the Department of Education and its OIG.
The cases are captioned United States ex rel. Roman v. All State Career, Inc. and Education Affiliates, Inc.,Civil Case No. JKB-10-1730 (D.Md.); United States ex rel. Thomas v. Education Affiliates, Inc., Civil Case No. JKB-14-332 (D.Md.); United States ex rel. Andrews v. Education Affiliates, Inc., et al., Civil Case No. H-13-2366 (S.D. Tex.); United States ex rel. Atkins, et al. v. Fortis Institute and Education Affiliates, LLC, Civil Case No. CV-14-1107-S (N.D. Ala.); and United States ex rel. McArthur, Gruff & Associates LLC v. Education Affiliates, Inc., Civil Case No. 1:14-CV-977 (S.D. Oh.). The False Claims Act claims resolved by the settlement are allegations only, and there has been no determination of liability.
Folk Nation/Gangster Disciples Gang Member Receives Life Sentences for Federal Sex Trafficking ViolationsRead the Press Release
In El Paso today, Folk Nation/Gangster Disciples member Richard Gray received three concurrent life sentences 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.
This morning, United States District Judge Philip R. Martinez sentenced Gray to life in federal prison for conspiracy to commit sex trafficking of persons; sex trafficking by force, fraud and coercion; and, sex trafficking of children. Judge Martinez also sentenced Gray to the statutory maximum ten years in federal prison for transportation for prostitution.
This afternoon, Judge Martinez sentenced 26-year-old co-defendant Deion Lockhart to three concurrent terms of 300 months in federal prison followed by ten years of supervised release for conspiracy to commit sex trafficking of persons; sex trafficking by force, fraud and coercion; and, aiding and abetting sex trafficking of children.
On January 16, 2015, jurors returned guilty verdicts against Gray and Lockhart plus two other gang members: 24-year-old Emmanual Lockhart and 29–year-old former El Paso County juvenile probation officer Timothy McCullouch, Jr. Jurors convicted Lockhart and McCullouch of one count of conspiracy to commit sex trafficking of persons. Jurors also convicted McCullouch of one count of sex trafficking of children.
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.
Emmanual Lockhart is scheduled for sentencing tomorrow morning at 8:00am in front of Judge Martinez. McCullouch is scheduled to be sentenced at 8:30am on Monday, June 29, 2015. Both face 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.
Florida Man Convicted of Sex Crimes Against Escondido ChildrenRead the Press Release
SAN DIEGO – Tony McLeod of Tampa, Florida, was convicted by a federal jury this afternoon of multiple counts of sexual crimes against two minors following an eight-day trial before U.S. District Judge Janis L. Sammartino.
A jury deliberated for less than two hours and found McLeod guilty of seven counts of sexual exploitation of a child, one count of attempted sexual exploitation of a child, one count of travel with intent to engage in illicit sexual conduct, and one count of transportation of a minor with intent to engage in criminal sexual activity as to a 14-year-old victim, and one count of attempted sexual exploitation of a child as to a 15-year-old victim. McLeod has been in custody since his arrest in Tampa, Florida in June 2013.
Sentencing is scheduled for September 11, 2015 at 9:00 a.m.
According to evidence presented to the jury, in spring 2013, McLeod struck up a friendship with the minor victims through on-line gaming. These friendships spilled over into phone calls, texts, and video chats between McLeod and the minors in which they discussed their personal lives, including the fact that both minors attended middle school.
Around May of 2013, McLeod’s relationships with the minors turned sexual in nature. The jury found that McLeod engaged in sexual behavior with both minors. Some of this behavior included masturbation and the exchange of sexually explicit photographs and videos.
Both victims testified against McLeod during the trial.
The 14-year-old’s family learned of the illicit relationship, confiscated the minor’s phone and reported the matter to local authorities. In June 2013, McLeod traveled from where he lived in Tampa, Florida to Escondido, California in order to meet up with the child. McLeod picked up the child at school before the end of the school day and took the child to Los Angeles International Airport.
According to testimony at trial, McLeod purchased an airline ticket for the 14-year-old under an alias and they flew to Tampa, Florida. In the meantime, the family reported the minor as missing to Escondido Police Department. The Escondido Police Department tracked down McLeod’s whereabouts and informed the Tampa Police Department that McLeod and the victim (under an alias) were on a flight to Tampa. On arrival of the flight, McLeod was arrested and taken into custody.
McLeod faces a mandatory minimum sentence of 15 years and up to 30 years in prison for each of the sexual exploitation and attempted sexual exploitation counts, a mandatory minimum sentence of 10 years up to life imprisonment for the transportation of a minor for the purpose of engaging in criminal sexual activity count, and a maximum of 30 years for the travel with intent to engage in illicit sexual conduct count.
McLeod’s arrest and prosecution was the result of coordination between multiple federal and state agencies in both San Diego, California and Tampa, Florida. The U.S. Attorney’s Office commends law enforcement from the FBI, Escondido Police Department, and Tampa Police Department who worked tirelessly to collect and preserve evidence as to numerous electronic devices and interview witnesses in order to bring McLeod to justice.
The U.S. Attorney’s Office appreciates the San Diego District Attorney’s Office, the Florida State’s Attorney’s Office, and the U.S. Attorney’s Office for the Middle District of Florida for their involvement in the case at the outset.
DEFENDANT Case Number: 13CR2297-JLS Tony Lee McLeod Age: 38 Tampa, Florida CHARGESTitle 18, United States Code, Section 2221(a) and (e) – Sexual Exploitation of a Child
LEAD INVESTIGATIVE AGENCY San Diego FBI INVESTIGATIVE AGENCIES Escondido Police Department
Title 18, United States Code, Section 2251(a) and (e) – Attempted Sexual Exploitation of a Child
Title 18, United States Code, Section 2423(b) – Travel with Intent to Engage in Illicit Sexual Conduct
Title 18, United States Code, Section 2423(a) – Transportation of a Minor with the Purpose of Engaging in Criminal Sexual Activity
Tampa Police Department
San Diego Regional Computer Forensics Laboratory
San Diego District Attorney’s Office
San Diego Internet Crimes Against Children Task Force
San Diego Sheriff’s Department
Tampa FBI
United States Marshal’s Service Task Force (Tampa)
Tampa International Airport Police
Florida State’s Attorney’s Office
US Attorney’s Office for the Middle District of FloridaFargo Man Pleads Guilty to Production of Child PornographyRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on June 24, 2015, Dewayne William Barth II, 30, Fargo, North Dakota, pled guilty before U. S. District Judge Ralph R. Erickson to one count each of Production of Child Pornography, Receipt and Distribution of Child Pornography, and Possession of Child Pornography.
This case came to the attention of law enforcement after Homeland Security Investigation Special Agents arrested an individual for production and possession of child pornography in Gatling, Tennessee. A forensic examination of the computer in Tennessee revealed that the individual was sharing child pornography with multiple persons, including Barth. Specifically, Barth produced and distributed images depicting a 3-year-old child engaged in sexually explicit conduct.
A Special Agent with the Homeland Security Investigations obtained and executed a search warrant for Barth’s email account which revealed that Barth was receiving and distributing child pornography via a yahoo email account from May 2014, continuing through October 2014. Internet Crimes Against Children (ICAC) task force members also executed a search warrant at Barth’s residence where law enforcement recovered multiple electronic devices collectively containing more than 11,000 files of child pornography. Sentencing for Barth has been tentatively set for September 16, 2015. The combined maximum penalties on the charges for which Barth pled guilty to is 60 years in prison, with a combined minimum penalty of 20 years.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, and the Fargo Police Department.
Assistant U. S. Attorney Jennifer Puhl is the prosecutor assigned to the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fargo Grocery Store Employees Plead Guilty to Defrauding Food Stamp ProgramRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on June 23, 2015, Lamia Ali, 46, and Abass Hassan Amedi, 50, both from Fargo, ND, pleaded guilty before U. S. District Judge Ralph R. Erickson to conspiracy to commit food stamp fraud.
From March 2011 through March 1, 2013, Ali and Amedi knowingly engaged in fraudulent transactions and purchases with Food and Nutrition Service Program (a federal government program formerly known as Food Stamp Fraud) recipients in order to obtain the monetary value of their SNAP benefits in exchange for cash in amounts less than the face value of the SNAP benefits. Ali operated Noor Al Huda, a neighborhood grocery store located in Fargo. Ali and the co-defendant, Amedi, would allow SNAP recipients to use their Electronic Benefits Transfer (EBT) cards in exchange for cash at the grocery store, a practice commonly known as “discounting” or “cash-back.” As a result of the conspiracy, Ali and Amedi caused a loss of approximately $365,058.10 to the United States Department of Agriculture. Ali and Amedi could be sentenced up to five years imprisonment, a $250,000 fine, and up to three years supervised release.
Judge Erickson has set a sentencing hearing for September 14, 2015, in U. S. District Court, Fargo, North Dakota
This case was investigated by United States Department of Agriculture-Office of Inspector General (USDA-OIG).
Assistant U. S. Attorney Jennifer Puhl is prosecuting the case.
Exeter Man Pleads Guilty to Distributing Crack Cocaine at CasinoRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sekou Lashley, age 36, of Exeter, Pennsylvania pleaded guilty today in U.S. District Court in Scranton to a federal charge of distributing crack cocaine at the Mohegan Sun Casino in Plains Township, Pennsylvania, on March 19, 2015.
According to U.S. Attorney Peter Smith, Lashley was arrested and subsequently indicted by a federal grand jury in Scranton in May. The defendant pleaded guilty before U.S. District Court Judge Malachy E. Mannion. The government filed a plea agreement which is subject to the approval of the Court.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Peter Hobart.
In this case, the maximum penalty under federal law for distributing cocaine is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Elbert County Felon Sentenced for Conspiring to Distribute More Than $130,000 in Methamphetamine While in PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that David Benton, age 49, of Elberton, Georgia was sentenced today to serve 227 months in Federal prison for conspiring to possess with intent to distribute methamphetamine. Mr. Benton was sentenced by the Honorable C. Ashley Royal, Untied States District Judge, in Athens, Georgia.
On October 1, 2013, Mr. Benton was sentenced to state prison for possession of methamphetamine with intent to distribute, fleeing and attempting to elude a police officer, four counts of possession of a firearm by a convicted felon, and theft by receiving stolen property. While in prison, authorities monitored Mr. Benton’s phone calls and learned that he had recruited an accomplice to dig up ammunition boxes buried in South Carolina containing methamphetamine and sell the illegal drugs. On December 7, 2013, law enforcement intercepted Mr. Benton’s accomplice, who led the police to the ammunition boxes, which contained 1.3 kilograms of methamphetamine, with a street value of approximately $130,000.00.
“Mr. Benton told his accomplice on recorded phone calls that selling drugs would make them rich,” said U.S. Attorney Michael Moore. “Instead of getting rich, Mr. Benton bought himself another twenty years in federal prison.”
The case was investigated by the Piedmont Northern Multi-Agent Narcotics Squad, the Elbert County Sheriff’s Office, the Elberton Police Department and the Anderson County Sheriff’s Office in South Carolina. Assistant United States Attorney Peter Leary prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.