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18 June 2015
10 People Arrested in Two Separate Cases for Heroin and Cocaine Trafficking Affecting Multiple Western New York CommunitiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned two separate indictments charging 10 individuals with narcotics trafficking in the Cities of Buffalo, NY and Dunkirk, NY.U.S. Attorney William J. Hochul stated “The two arrest operations conducted today removed major sources of illegal narcotics from flowing into our area. The dangers of both heroin and cocaine are well known, and can include death for the user, and a severe decline in the neighborhood for those who through no fault of their own reside near drug distribution locations. This Office will continue to target and prosecute those who would destroy our community through the peddling of illegal and toxic substances.”
“Throughout this week, two major drug distribution rings were dismantled and their leaders arrested. The arrests of Burgos and Pagan solidify the end of their cocaine distribution operation; every dose they sold throughout the Chautauqua County and adjacent towns fueled drug addiction,” stated DEA Special Agent in Charge James J. Hunt. “Drug addiction has become public health’s archenemy and as heroin related deaths have increased 174%, heroin traffickers have become law enforcement’s priority target which has led to these latest arrests of members of the Molina-Rios heroin trafficking organization. This two year investigation uncovered a heroin distribution network that allegedly distributed up to 1,000 heroin glassines a day, or in other words 1,000 doses of death per day.” SAC Hunt would like to thank the Western District of New York U.S. Attorney’s Office and all of DEA’s law enforcement partners for their diligent work throughout these investigations.”
Daniel Molina-Rios, a/k/a Ponce, 40, Orlando Rios, a/k/a Fifo, 43, Luis Montanez, a/k/a Wichy, 37, and Jose Andujar, 37, all of Buffalo, NY, are charged with conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. The charge carries a minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that multiple law enforcement officers conducted an investigation into a heroin drug trafficking organization operated by Daniel Molina-Rios. According to the indictment and other court documents, since approximately 2014, the organization acquired heroin from the New York City area for distribution in Buffalo. The organization also has an alternate heroin source in Buffalo, that source is identified as Luis Montanez. The Molina-Rios drug trafficking organization distributed heroin through multiple street-level distributors or “runners” who are managed by Jose Andujar and led by Daniel Molina-Rios and Orlando Rios.
Search warrants were executed at the residences of the defendants including 620 Grant Street, 42 Potomac Street, 74 Fillmore Avenue, and 221 Gorton Street, all in Buffalo.
Named in a separate indictment are David Jesus Pagan, 39, Rafael Burgos, Jr., 40, Samuel Hernandez, III, 34, Javier Pagan, Jr., 31, Alvin Torres, Jr., 30, and Angel Pierluissi, 28, all of Dunkirk. The defendants are charged with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine. David Jesus Pagan is also charged with maintaining a premises for manufacturing and distribution of cocaine, possession of a firearm in furtherance of drug trafficking and being felon in possession of a firearm. The charges carry a mandatory minimum 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that between 2013 and June 10, 2015, law enforcement officers have been investigating a drug trafficking organization led by defendants David Jesus Pagan and Rafael Burgos, Jr. During the course of the investigation, it was determined that the defendants distributed multiple kilograms of cocaine throughout the Dunkirk area.
Search warrants were executed at six properties which resulted in the recovery of more than seven kilograms of cocaine and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine.
The indictments are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police Community Enforcement Narcotics Team Western Region, under the direction of Lieutenant Kevin Reyes, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of David Foley. Additional assistance was provided by the Hamburg Police Department, Erie County Sheriff’s Office, Cheektowaga Police Department, Lackawanna Police Department, the Niagara Frontier Transportation Authority Transit Police, Niagara Falls Police Department, Niagara County Sheriff’s Office, Bureau of Indian Affairs, and United States Border Patrol.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
17 June 2015
York Men Sentenced for Long Prison Terms for International Drug TraffickingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that two York men were sentenced yesterday to federal prison for their involvement in the importation and distribution of cocaine and heroin into York County.
According to United States Attorney Peter Smith, Angel Mendez-Castro, age 27, of Puerto Rico and York, was sentenced to 15 years in prison. U.S. District Court Judge Yvette Kane stated during sentencing that he was a “violent “and “crafty kingpin” and that his drug distribution network had a substantial impact upon the York community.
Angel Mendez-Castro previously pleaded guilty to conspiracy to import and distribute over five kilograms of cocaine and heroin from 2010 to 2013. He also admitted to the use of threats of violence against witnesses and the use of firearms to protect the importation of the drugs from Puerto Rico.
Angel Mendez-Castro’s sentence is the culmination of a multi-year investigation by the Pennsylvania State Police and the York County Drug Task Force into the Latin King Street Gang in York. Hundreds of purchases of heroin, cocaine, and crack cocaine were made from over 100 individuals in York, resulting in the arrest of most of those individuals began on February 6, 2013. Thereafter, the United States Attorney’s Office indicted 15 individuals for leadership roles in the heroin and cocaine trafficking, including Angel Mendez-Castro.
Earlier yesterday, Judge Kane sentenced Angel’s brother, Christian Mendez-Castro, a/k/a “King Rampage,” age 22, of Puerto Rico and York to nine years in prison for his involvement in the enterprise. Christian Mendez-Castro entered a previous guilty plea to the drug trafficking conspiracy. On May 13, 2015, Judge Kane sentenced their cousin, Hector Castro Padro, age 29, of Puerto Rico and York. He received a sentence of six years and four months in prison for his drug activities, as well as for possession of a firearm in furtherance of drug trafficking.
As part of this larger investigation, the United States charged others affiliated with the distribution of heroin and cocaine in York. The other cases are as follows:
- William Ortiz, age 53, or York, entered a guilty plea to drug trafficking. On August 21, 2014, he was sentenced to 10 years in prison.
- Luis Angel Ortiz, a/k/a “C Lo,” age 31, of York, entered a guilty plea to drug trafficking. On April 15, 2014, he was sentenced to twelve (12) years and six (6) months in prison.
- Jose Cartegena, Jr., a/k/a “Warrior,” age 35, of York, entered a guilty plea to drug trafficking. On April 28, 2014, he was sentenced to five (5) years in prison.
- Marcus Garcia, a/k/a “King Paradise,” age 28, of York, entered a guilty plea to drug trafficking. On September 5, 2014, he was sentenced to six (6) years and five (5) months in prison.
- David Ramsey, a/k/a “King Knuckles,” age 32, of York, entered a guilty plea to drug trafficking. On December 9, 2014, he was sentenced to five (5) years in prison.
- Carlos Villalongo-Martinez, age 38 of York, entered a guilty plea to drug trafficking. On July 29, 2014, he was sentenced to two (2) years in prison.
- Brandon Jones, age 27, of York, entered a guilty plea to drug trafficking. On June 3, 2014, he was sentenced to six (6) years in prison.
- Antonio Navarro-Garcia, a/k/a “King Trigger,” age 22 of York, entered a guilty plea to drug trafficking. On November 25, 2014, he was sentenced to five (5) years in prison.
- Michael Enriquez, a/k/a “King Rage,” age 30, of Camden, New Jersey, entered a guilty plea to drug trafficking. On January 27, 2015, he was sentenced to ten (10) years in prison.
- Hector Rengifo, age 40, of York, entered a guilty plea to drug trafficking on August 4, 2014. He is awaiting sentencing.
- August Ranalli, age 31, of York, was convicted of drug trafficking and conspiracy after bench trial. His sentencing is scheduled for August 2015.
- Daniel Pacheco-Morales, age 41, of York, entered a guilty plea to drug trafficking. His sentencing is pending.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
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Volusia County Man Sentenced to More Than 16 Years for Production of Child PornographyRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway has sentenced William A. Harvey (50, DeLand) to 16 years and 8 months in federal prison for production of child pornography. He was also ordered to serve a life term of supervision following his release from prison. Harvey pleaded guilty on March 31, 2015.
According to court documents, Harvey produced child pornography at his residence on May 5, 2014. His victim was a 16-year-old autistic girl. Harvey took several photographs of the victim engaged in sexually explicit conduct. The victim told someone about the incident the following day and law enforcement was contacted. Subsequently, a search warrant was executed, during which officers found a computer and an external hard drive in Harvey’s bedroom. A forensic examination of the equipment revealed 20 pornographic images of the victim. The victim had stated that Harvey had used a purple camera to take the photographs of her. That camera was also found during the execution of the search warrant.
This case was investigated by Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the DeLand Police Department. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Virginia Business Owner Charged with Wire Fraud for Stealing $809,205.43 from VictimsRead the Press Release
LOUISVILLE, Ky. – The owner of Patriot Computers, a Virginia corporation, was charged by grand jury indictment today with wire fraud for stealing $809,205.43 from multiple victims, announced Acting United States Attorney John E. Kuhn, Jr.
According to the four count indictment, from December 1, 2012, through April 14, 2014, Mark Allen Hartley, age 55, of Land O Lakes, Florida, devised a scheme to defraud First Citizens Bank of Hardin County, Kentucky, and its customers. At the time, Hartley operated a business called Spartan Group Inc., dba Patriot Computers. Patriot Computers sold computer equipment to its customers on installment sales contracts. Customers of Patriot Computers agreed to have specified amounts of money taken from their paychecks on a regular basis until their purchases were paid in full. These customers completed payment authorization forms for these payment arrangements, and then Patriot Computers submitted these forms to First Citizens Bank in Hardin County, Kentucky. First Citizens Bank, through its bill payment service, would then transfer the payments from each customer’s paycheck to Patriot Computers’ account at Wells Fargo Bank until the customer’s contract with Patriot Computers was paid in full.
As part of the scheme and artifice to defraud, Hartley created fraudulent payment authorization forms and transmitted those, by e-mail, to First Citizens Bank. This caused the bank to transfer unauthorized payments from victims’ paychecks to an account at Wells Fargo Bank, controlled by Hartley. These unauthorized payments totaled approximately $809,205.43.
If convicted at trial, Hartley could be sentenced to no more than 20 years in prison for each count, fined $250,000 for each count and sentenced to 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the Federal Bureau of Investigation (FBI).
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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.
Utah Man Sentenced to Prison for Soliciting Gifts and Property Under False PretensesRead the Press Release
ALBUQUERQUE – Michael Vernon Rupert, 44, of Cedar City, Utah, was sentenced this morning in federal court in Las Cruces, N.M., to a year and a day in prison for soliciting gifts and property under false pretenses. Rupert will be on supervised release for three years after completing his prison sentence. He also was ordered to pay $6,884.63 in restitution to the victims of his crimes.
Rupert, a former U.S. Army Sergeant was arrested on a criminal complaint in Utah on Oct. 11, 2013, and was transferred to Las Cruces federal court to answer the charges on Nov. 12, 2013. According to the criminal complaint, Homeland Securities Investigations (HSI) initiated an investigation into Rupert in Nov. 2012, after receiving information that Rupert was soliciting military and law enforcement type clothing and shooting gear from manufacturers by falsely claiming to be a U.S. Army Command Sergeant Major stationed at White Sands Missile Base. During the solicitations, Rupert claimed the goods would be used for testing and evaluation by the U.S. Army and implied that the Army would purchase large quantities of the manufacturers’ products depending on testing and evaluation, and his recommendation. HSI’s investigation revealed that Rupert solicited merchandise valued at approximately $35,000.00 from 37 manufacturers and distributors between July 2012 and May 2013. Although Rupert relocated from Hondo, N.M., to Alton, Utah, in Oct. 2012, he unlawfully solicited approximately $32,000.00 of merchandise before moving to Utah.
The criminal complaint further alleges that Rupert continued his unlawful solicitation scheme when he moved to Utah, and that an investigation by Utah state authorities led to the discovery of three more manufacturers and distributors from whom Rupert unlawfully solicited merchandise. In Oct. 2013, Utah authorities searched a trailer Rupert was towing as he was in the process of moving to Missouri and found merchandise sent to him by a number of the manufacturers who had responded to Rupert’s solicitations.
On Jan. 15, 2014, Rupert was indicted on three counts of unlawful solicitation and use of gifts. According to the indictment in July 2012, Rupert solicited gifts and property from three companies by falsely claiming that they were for use by the U.S. Army. At the time of the offenses charged in the indictment, Rupert was residing in Hondo.
On Feb. 21, 2014, Rupert pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of HSI with assistance from the Kane County (Utah) Sheriff’s Department, and was prosecuted by Assistant U.S. Attorney Edwin Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office.
United States Returns Stolen Antique Books to the National Library of SwedenRead the Press Release
Richard Zabel, the Deputy United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return of two antique books that were stolen from the National Library of Sweden in the 1990s.
Deputy U.S. Attorney Richard Zabel said: “For hundreds of years, the National Library of Sweden’s collection of books, maps, and manuscripts was treasured by the kings and queens of Sweden. In many ways, the Library contains the cultural memory of Sweden. The theft of pieces of a nation’s memory and heritage creates holes in its intellectual soul. There is no repair for such holes without the recovery of what was taken. I’m proud that this Office has been at the forefront of recovering what has been taken from many different nations’ cultural histories, including Sweden today.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “We are honored to be part of reparation ceremonies, like the one we are holding here today, because we are able to return a piece of missing history to a country. The books returned today are a significant part of Sweden’s history. The FBI will continue to work with our law enforcement partners to investigate and hopefully return stolen artifacts and cultural items to their home countries.”
The two books being returned are part of a group of at least 56 rare or one-of-a-kind books that were stolen from the National Library of Sweden’s collection by Anders Burius (“Burius”), a former employee of the Library, between 1995 and 2004. After stealing the books, Burius consigned or sold the books to Ketterer Kunst (“Ketterer”), an auction house in Germany. In 2004, Burius confessed to the book thefts and admitted to Swedish law enforcement officials that he had sold and/or consigned the books to Ketterer under the alias “Carl/Karl Fields.” Shortly after confessing to the thefts, Burius committed suicide. Swedish authorities subsequently received information that 13 of the stolen books had been sold by Ketterer to individuals and/or entities in the United States.
The books being returned today are a Christopher Scheiner book entitled “Oculus, hoc est: fundamentum opticum, in quo ex accurate oculi anatome, abstrusarum experientiarum sedula pervestigatione,” printed in 1619 by Danielem Agricolam Oeniponti (the “Scheiner book”), and a Nicolo Sabbattini book entitled “Practica di fabricar scene, e machine ne’teatri. Ristampata di nouo coll’ Aggiunta del secondo libro,” printed in 1638 by Battista Giouannelli Pietro de’Paoli e Gio (the “Sabbatini book”). The Scheiner book, which is a famous work in the history of optics, was purchased on May 28, 1999, by bookseller Jonathan A. Hill, who had no knowledge of the book’s theft. Mr. Hill subsequently sold the Scheiner book to Cornell University, which also had no knowledge of the book’s theft, and which, after being contacted by the FBI about the theft, voluntarily agreed to return the book to the Library. The Sabbatini book, an important work concerning stagecraft and theater machinery, was purchased on November 19, 2001, by Richard Lan, a gallery owner in New York. Lan had no knowledge of the Sabbatini book’s theft and, after being contacted by the FBI about the theft, voluntarily agreed to return the book to the Library.
The United States Attorney’s Office for the Southern District of New York entered into stipulations with Cornell University and the gallery owner, in which both Cornell University and Lan consented to tender their respective books to the FBI, to allow for the return of these books to the National Library of Sweden. The stipulations were so ordered by the United States District Court on June 1, 2015. The Scheiner book and the Sabbatini book were returned to representatives of the National Library of Sweden earlier today at a repatriation ceremony held at the United States Attorney’s Office in New York.
A list of missing books stolen from the National Library of Sweden between 1995 and 2004 can be found here.
Mr. Zabel praised the investigative work of the FBI in this matter, and its ongoing efforts to find and repatriate stolen property.
This matter is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Christine I. Magdo and Sarah E. Paul are in charge of the case.
United States Repatriates Seven Boa Constrictors to BrazilRead the Press Release
Seven boa constrictors seized in connection with an illegal wildlife smuggling scheme have been returned to the government of Brazil, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John W. Huber of the District of Utah.
“This case exhibited many of the hallmarks that make illegal wildlife trafficking a growing international scourge, including actors motivated by greed who illegally smuggled rare and precious wildlife across international boundaries,” said Assistant Attorney General Caldwell. “The return of the precious snakes to Brazil brings to an end this years-long international saga, and serves as an example of our commitment to working with law enforcement partners in Brazil and elsewhere to combat transnational crime.”
“The successful prosecution of Mr. Stone and the recovery and repatriation of the offspring from this rare and valuable leucistic boa constrictor are due to the exceptional cooperation between the United States and Brazilian authorities,” said U.S. Attorney Huber. “The illegal wildlife trade threatens the survival of many threatened and endangered species and Mr. Stone’s conviction in this case demonstrates our resolve to prosecute those who engage in such activities.”
The seven boa constrictors are the offspring of a rare and extremely valuable white (leucistic) boa constrictor known as “Lucy” or “Diamond Princess” that was found in the Niterói district of Rio de Janerio in 2006. Because of its rarity, Brazilian authorities housed the white boa at the Niterói Zoo, a private foundation that rescued and rehabilitated injured wild animals. In January 2009, Jeremy Stone, a Utah-based collector, breeder and seller of reptiles, traveled to Brazil, secured possession of the snake and unlawfully returned with it back to the United States.
After learning that Stone was marketing snakes bred from a rare white boa, the Brazilian government requested assistance from the United States in securing the return of the leucistic boa and any offspring. Thereafter, pursuant to a mutual legal assistance treaty, federal investigators obtained a warrant authorizing the seizure of the snake and any offspring from Stone’s property in Utah. In executing the warrant, agents from the FBI learned that the leucistic boa constrictor had died. Agents turned the offspring over to the U.S. Marshals Service, which delivered the eight surviving offspring to the Hogle Zoo in Salt Lake City. One of the snakes died shortly thereafter.
In July 2014, Stone pleaded guilty plea to unlawfully transporting wildlife into the United States. As part of his plea agreement, Stone agreed to forfeit the boa’s offspring to the United States.
In October 2014, the government of Brazil filed a petition asserting its ownership of the white boa and its offspring because it had been caught in the Brazilian wild. Thereafter, the United States asked the court to amend the preliminary order of forfeiture to recognize Brazil’s claim to the snakes. In February 2015, the court entered a final order of forfeiture awarding the white boa’s seven surviving offspring to the government of Brazil.
The Criminal Division’s Asset Forfeiture and Money Laundering Section and Office of International Affairs, as well as the U.S. Attorney’s Office of the District of Utah and the FBI, worked jointly with the government of Brazil to secure the repatriation of the seven offspring.
United States Repatriates Seven Boa Constrictors to BrazilRead the Press Release
WASHINGTON – Seven boa constrictors seized in connection with an illegal wildlife smuggling scheme have been returned to the government of Brazil, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John W. Huber of the District of Utah.
“This case exhibited many of the hallmarks that make illegal wildlife trafficking a growing international scourge, including actors motivated by greed who illegally smuggled rare and precious wildlife across international boundaries,” said Assistant Attorney General Caldwell. “The return of the precious snakes to Brazil brings to an end this years-long international saga, and serves as an example of our commitment to working with law enforcement partners in Brazil and elsewhere to combat transnational crime.”
“The successful prosecution of Mr. Stone and the recovery and repatriation of the offspring from this rare and valuable leucistic boa constrictor are due to the exceptional cooperation between the United States and Brazilian authorities,” said U.S. Attorney Huber. “The illegal wildlife trade threatens the survival of many threatened and endangered species and Mr. Stone’s conviction in this case demonstrates our resolve to prosecute those who engage in such activities.”
The seven boa constrictors are the offspring of a rare and extremely valuable white (leucistic) boa constrictor known as “Lucy” or “Diamond Princess” that was found in the Niterói district of Rio de Janerio in 2006. Because of its rarity, Brazilian authorities housed the white boa at the Niterói Zoo, a private foundation that rescued and rehabilitated injured wild animals. In January 2009, Jeremy Stone, a Utah-based collector, breeder and seller of reptiles, traveled to Brazil, secured possession of the snake and unlawfully returned with it back to the United States.
After learning that Stone was marketing snakes bred from a rare white boa, the Brazilian government requested assistance from the United States in securing the return of the leucistic boa and any offspring. Thereafter, pursuant to a mutual legal assistance treaty, federal investigators obtained a warrant authorizing the seizure of the snake and any offspring from Stone’s property in Utah. In executing the warrant, agents from the FBI learned that the leucistic boa constrictor had died. Agents turned the offspring over to the U.S. Marshals Service, which delivered the eight surviving offspring to the Hogle Zoo in Salt Lake City. One of the snakes died shortly thereafter.
In July 2014, Stone pleaded guilty plea to unlawfully transporting wildlife into the United States. As part of his plea agreement, Stone agreed to forfeit the boa’s offspring to the United States.
In October 2014, the government of Brazil filed a petition asserting its ownership of the white boa and its offspring because it had been caught in the Brazilian wild. Thereafter, the United States asked the court to amend the preliminary order of forfeiture to recognize Brazil’s claim to the snakes. In February 2015, the court entered a final order of forfeiture awarding the white boa’s seven surviving offspring to the government of Brazil.
The Criminal Division’s Asset Forfeiture and Money Laundering Section and Office of International Affairs, as well as the U.S. Attorney’s Office of the District of Utah and the FBI, worked jointly with the government of Brazil to secure the repatriation of the seven offspring.
United States Files Suit against Spectrum Brands for Failing to Report Safety Hazard in Defective CoffeemakersRead the Press Release
Dozens of Burns Reported When Coffee Pot Handle Repeatedly Broke
The Department of Justice and the Consumer Product Safety Commission (CPSC) jointly announced today the filing of a complaint against Spectrum Brands Inc., alleging that the company and its former subsidiary, Applica Consumer Products, failed to timely report a hazardous defect involving handles that detached from Black & Decker brand SpaceMaker coffee pots.
Spectrum Brands is a Delaware corporation headquartered in Middleton, Wisconsin, that distributes a wide variety of brand-name small appliances, hardware, and home and garden products. Applica Consumer Products was the Florida company that imported and distributed the coffeemaker. Applica became a subsidiary of Spectrum in 2010, and the two companies merged in 2014.
The complaint, filed in U.S. District Court for the Western District of Wisconsin, charges that the companies knowingly violated the reporting requirements of the Consumer Product Safety Act with respect to defective carafe handles that could detach and cause hot coffee to pour onto consumers. As set forth in the complaint, the coffeemakers generated hundreds of complaints from consumers over more than three years before Applica finally notified the CPSC of the carafe defect and recalled the product. Dozens of consumers contacted the company to report burns related to the handle suddenly detaching. The complaint, filed by the Department of Justice on behalf of the CPSC, seeks civil penalties and permanent injunctive relief.
The government also alleges that, in addition to failing to notify the CPSC of the defect “immediately” as required by law, the companies continued to distribute a small number of the defective coffeemakers to retailers even after the recall was announced.
“Hundreds of consumers complained to the company about this dangerous defect over the years,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We rely on companies to report these safety issues immediately, as the law requires, to prevent unnecessary injuries. The Department of Justice will continue to protect the public against companies that put profits over safety.”
“We believe Spectrum Brands and Applica Consumer Products knew about the hazard with these coffeemakers for years,” said CPSC Chairman Elliot F. Kaye. “Despite the fact that these firms were required to report potential hazards and risks to CPSC immediately, it appears they chose to profit from continued sales instead. Their failure to follow the law and report, resulted in dozens of injuries to unsuspecting customers.”
The companies distributed the coffeemakers from 2008 to 2012. The complaint alleges that beginning as early as 2009 and continuing until April 2012, the companies received approximately 1,600 consumer complaints about defective carafe handles. The coffeemakers were recalled in June 2012.
The matter is being handled by the Civil Division’s Consumer Protection Branch and the CPSC’s Office of the General Counsel.
The claims made in the complaint are allegations only, and there has been no determination of liability.
United States Attorney Wigginton Announces Press EventRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that there will be a press event held tomorrow, Thursday, June 18, 2015, at 1:00 PM at the Office of the United States Attorney for the Southern District of Illinois, located at Nine Executive Drive, Fairview Heights, IL, 62208-1344, concerning the announcement of a Health Care Fraud Investigation and resultant Charges. This press conference will follow a press conference in Washington, DC at 11:00 AM Eastern hosted by the Attorney General and the Secretary of Health and Human Services to announce a major crackdown on health care fraud in sixteen districts, including the Southern District of Illinois.
Media are advised to have press credentials and to arrive in sufficient time to allow for security screening prior to the event.
Uniontown Man Sentenced to 3 Years in Prison for Possessing Sexual Images of ChildrenRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has been sentenced in federal court to 36 months imprisonment, followed by eight years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill imposed the sentence on Jeremy S. Burnworth, 36, of Uniontown, Pennsylvania.
According to information presented to the court, on or about June 2, 2014, Burnworth knowingly possessed images in digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Reserve Township Police Department, and the Pennsylvania Office of Attorney General for conducting the investigation that led to the successful prosecution of Burnworth.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorney's Office indicts two cases where women were working with a male to sexually exploit childrenRead the Press Release
DENVER – The U.S. Attorney’s Office has obtained federal grand jury indictments in two separate unrelated cases where a woman, working with a male, sexually exploited a child, captured the abuse on camera or transmitted it live via the internet, thus producing child pornography. One case was investigated by the FBI, and the other case was investigated by the Colorado Springs Police Department’s Internet Crimes Against Children (ICAC) Task Force and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
On June 15, 2015, Mr. Matthew Scott Holt, age 34 and Ms. Jordain Larsen, age 26, of Westminster, were advised in court on charges contained in an Indictment that a federal grand jury returned on June 9, 2015. Four of the counts charged Holt and Larsen together with production, and aiding and abetting one another’s production, of child pornography. Seventeen of the remaining counts charged either Holt and Larsen with production of child pornography. The last count charges Holt with distribution of child pornography. Prior to the indictment, both defendants had been arrested for child pornography production offenses based on charges filed in Criminal Complaints. Both defendants were also ordered to be held without bond pending a resolution of their cases.
According to court documents, the Larimer County Sheriff’s Office initiated the investigation after downloading child pornography from a residence in Westminster, Colorado. After the Larimer County Sheriff’s Office referred the case to the Westminster Police Department, WPD continued the investigation, including obtaining and executing a state search warrant. Shortly after the execution of that warrant, WPD found pornographic images of Holt with a child under the age of three and it also found child pornographic images of a second child under the age of 12. WPD then requested the assistance of the FBI. On May 14, 2015, Holt was located in Fort Collins in a shopping center parking lot where he was living out of his car, and he was arrested on a federal Criminal Complaint. As detailed in that Complaint, FBI’s review of Holt’s computers revealed multiple child pornographic images of Ms. Larsen engaged in sexual conduct with the same child under the age of three who was depicted in child pornographic images with Holt. Ms. Larsen was arrested on a federal Criminal Complaint shortly thereafter. Holt and Larsen have appeared before a U.S. Magistrate Judge, where they have been advised of their rights and the charges pending against them.
In a second case, on May 6, 2015, a federal grand jury returned an Indictment charging both Mr. Brandon Tyler Hill, age 29, of Colorado Springs, and Ms. Rhiannon Carnahan, age 29, of Woodland Park, Colorado, charging both with counts of production, and aiding and abetting one another’s production, of child pornography and transportation, and aiding and abetting one another’s transportation, of child pornography. Prior to the indictment, Mr. Hill and Ms. Carnahan were charged via Criminal Complaints. Both defendants are detained without bond pending a resolution of their cases. Hill and Carnahan have appeared before a U.S. Magistrate Judge, where they have been advised of their rights and the charges pending against them.
If convicted on the child pornography production counts, Ms. Larsen, Mr. Holt, Mr. Hill and Ms. Carnahan each face not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine, for each count. Holt, Hill and Carnahan each also faces not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine if convicted of distribution or transportation of child pornography.
The Holt and Larsen case was investigated by the Federal Bureau of Investigation (FBI), the Westminster Police Department and the Larimer County Sheriff’s Office. The Hill and Carnahan case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with support provided by the Woodland Park Police Department.
Holt and Larsen are being prosecuted by Assistant U.S. Attorney Judith Smith, Chief of the Special Prosecutions Section of the U.S. Attorney’s Office Criminal Division, and Hill and Carnahan are being prosecuted by Assistant U.S. Attorney Alecia Riewerts, Project Safe Childhood Coordinator.
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney's Office Initiative Reviews Disability Access at Metro Atlanta CourthousesRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has initiated a review of local courthouses in the Northern District of Georgia to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”). This initiative is being conducted in accordance with the federal government’s congressionally-mandated responsibility to review compliance with the ADA.
“Access to local courthouses is a fundamental part of our society that everyone in our district is entitled to enjoy,” said John A. Horn, Acting U.S. Attorney for the Northern District of Georgia. “We are hopeful that our local courthouses will partner with us on this very important initiative to ensure that they are in full compliance with the law.”
As part of the review, nine local courthouses are being asked to complete and return a survey form. Once the survey forms are completed, investigators may follow up with on-site inspections to confirm survey responses and to evaluate compliance with the ADA regulations. The U.S. Attorney’s office hopes to work cooperatively with local courthouses that are found to be non-compliant. The goal is to ensure that government facilities, services, and programs are accessible to persons with disabilities.
The courthouses under review are in DeKalb, Fayette, Floyd, Fulton, Gwinnett, Hall, Rockdale, Spalding, and Troup counties. Any member of the public who wishes to file a complaint alleging that a courthouse or any other place of public accommodation with the Northern District of Georgia is not accessible to people with disabilities may contact the U.S. Attorney’s Office by phone at 404-581-4626 or email at [email protected].
Additional information about the ADA can be found at www.ada.gov, or by calling the toll-free information line at the Civil Rights Division of the Justice Department at (800)514-0301 (voice) and (800)514-0383(TTY).
Assistant United States Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.Two U.S. Bureau of Prisons Corrections Officers Charged with Assaulting Prison Inmate and Obstructing JusticeRead the Press Release
Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney A. Lee Bentley III of the Middle District of Florida announced today the indictment by a federal grand jury of U.S. Bureau of Prison (BOP) Correction Officers (COs) William Houghton and Eddie Rodas-Castro.
The indictment charges CO Houghton with violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, on March 22, 2014, by striking the inmate repeatedly in the head and face, causing him injury. The indictment also charges CO Houghton and CO Rodas-Castro with obstruction of justice by falsifying BOP reports and making false statements to federal investigators regarding the assault.
This case is being investigated by the FBI and the U.S. Department of Justice’s Office of Inspector General, and is being prosecuted by Trial Attorney Roy Conn of the Civil Right Division and Assistant U.S. Attorney Robert Bodnar of the Middle District of Florida.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
Two U.S. Bureau of Prisons Corrections Officers Charged with Assaulting Prison Inmate and Obstructing JusticeRead the Press Release
Ocala, FL – U.S. Attorney A. Lee Bentley III and Vanita Gupta, head of the Civil Rights Division announced today the indictment by a federal grand jury of U.S. Bureau of Prison (BOP) Correction Officers (COs) William Houghton and Eddie Rodas-Castro.
The indictment charges CO Houghton with violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, on March 22, 2014, by striking the inmate repeatedly in the head and face, causing him injury. The indictment also charges CO Houghton and CO Rodas-Castro with obstruction of justice by falsifying BOP reports and making false statements to federal investigators regarding the assault.
This case is being investigated by the FBI and the U.S. Department of Justice’s Office of Inspector General, and is being prosecuted by Trial Attorney Roy Conn of the Civil Right Division and Assistant U.S. Attorney Robert Bodnar of the Middle District of Florida.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
Three drug defendants appear in federal court in BeckleyRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that three drug dealers made appearance in federal court in Beckley today. Evelyn Ann Sizemore, 32, of Lewisburg, pled guilty to using a communication facility to facilitate a felony, admitting that on December 9, 2014, she used a telephone around Lewisburg to send a text message to arrange a drug deal. Shortly after the text message was sent, Sizemore sold heroin to a confidential informant working with law enforcement. Sizemore faces up to four years in prison and a $250,000 fine when she is sentenced on October 8, 2015.
Two additional drug defendants from Huntington, West Virginia were also sentenced today in Beckley federal court. Randolph Ingram, 55, was sentenced to four years in prison for using a communication facility to facilitate a felony, and Rachel Jade Corrigan, 26, was sentenced to three years of probation for aiding and abetting the distribution of heroin. Ingram and Corrigan pled guilty in February of 2015. Ingram admitted using a telephone to help arrange the sale of heroin in Lewisburg, and Corrigan admitted that after the Ingram sold the heroin, she concealed the money in her underwear to take it to Huntington.
The cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Inititative, a part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale and misuse of prescription drugs and heroin in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Texas Man Sentenced for Stealing Nearly $1 Million from St. Joseph EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Weatherford, Texas man was sentenced in federal court today for a mail fraud scheme in which he embezzled nearly $1 million from Herzog Contracting Corporation in St. Joseph, Mo.
Daniel Reif, 49, of Weatherford, was sentenced by U.S. District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Reif to pay $1,318,042 in restitution and forfeit to the government $105,000 seized from his TD Ameritrade account and a 2010 Tige boat and trailer. Reif made a $225,000 payment prior to today’s hearing as settlement of civil and criminal forfeiture.
On Jan. 22, 2015, Reif pleaded guilty to one count of mail fraud and one count of filing a false income tax return. Reif admitted that he engaged in a scheme to defraud Herzog from January 2006 through Aug. 26, 2011.
Herzog, which constructs railroads, highways, bridges, and airports, has a regional office in Irving, Texas. Reif began working for Herzog in the Irving office in August 2005. Reif was the manager of signals for Herzog and responsible for procuring materials and services from vendors in order to fulfill the needs of existing jobs; he was also responsible for oversight of the installation and performance of those services and materials. Reif was authorized to approve payments to vendors under his supervision and responsibility.
Reif founded his own company, Railway Signal Solutions, LLC (RSS), in February 2005. Reif began ordering project materials and services from supply vendors through RSS, then re-selling those products and services to Herzog at inflated prices. The RSS invoices made it appear as though the materials and services were being provided directly by RSS, an ostensibly independent supply vendor.
In the scheme, Reif established a fictitious character named “Gene Schmitt” who purportedly worked at RSS and communicated with Reif via e-mail. Over 100 emails between Reif and Reif, acting as Schmitt, were found by Herzog during the company’s internal investigation.
Reif, on behalf of RSS, paid the original, true vendors with a personal credit card or cashier’s check. Reif then, through RSS, invoiced Herzog for a higher price. The difference between the true price and Reif’s inflated price varied from 10 percent to over 100 percent. After RSS invoiced Herzog, Reif actually authorized payment of the inflated invoices himself.
Herzog reported that RSS invoiced $2,821,180.19, while the true cost of materials was $1,932,417, resulting in a difference of $888,762. Herzog paid Reif/RSS an additional $91,845 for products with no real customers identified, which establishes the total loss of $980,608. This loss figure is conservative, as it does not include $346,175 which Reif/RSS invoiced to Herzog but which could not be matched or estimated.
The plea agreement cites one instance of a $292,241 check from Herzog made payable to RSS that was mailed on March 10, 2010. The check was sent as payment for two invoices, one of which was sent by RSS to Herzog for a signal material package in the amount of $246,856. Reif, through his company RSS, had paid $152,686 for this same part, thus marking up the part by $94,170 and defrauding Herzog that same amount.
Reif also admitted that he filed a false federal income tax return for the year 2008. According to the plea agreement, Reif claimed $990,159 in business expenses, although $498,301 of his business expenses had already been reimbursed by Herzog, his employer. The return materially understated his taxable income, resulting in a tax loss to the government of $192,230.
According to court documents, Reif claimed substantially inflated and fraudulent expenses on federal income tax forms for travel and entertainment, depreciation, shipping and supplies. The total tax loss for tax years 2008 to 2011 is $337,434.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and IRS-Criminal Investigation.
Sterling Heights Man Sentenced for Sports BriberyRead the Press Release
A Sterling Heights man was sentenced to almost six years in federal prison today for sports bribery, fraud and unlawfully possessing a gun, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Special Agent in Charge Anthony V. Mohatt, U.S. Department of Agriculture, Office of Inspector General.
U.S. District Judge Mark Goldsmith sentenced Ghazi Manni, 58, to 70 months in prison, three years of supervised release, and ordered him to pay restitution of $700,000 and to forfeit $700,000 to the government.
According to court records, between December 2005 and December 2006, Manni and codefendant Mitchell Karam, who is awaiting sentencing, paid money to a professional jockey to influence the results of races at Tampa Bay Downs in Tampa, Florida, and elsewhere. The indictment alleges that Manni and Karam then used the simulcast pari-mutuel wagering system to place bets on the fixed races. Manni pleaded guilty to paying University of Toledo athletes to affect the point spread of football and basketball games in 2005 and 2006. He also pleaded guilty to paying a jockey to fix horse races at a racetrack in Florida from 2004 to 2006. He also pleaded guilty to paying cash for food stamps at King Cole Foods in 2010 and 2011. Manni had been previously convicted by a jury of unlawfully possessing a gun and ammunition, and today was resentenced for those crimes as well.
Before imposing the sentence, Judge Goldsmith noted that Manni’s crimes all were the product of deliberation and spanned long periods. He also noted that Manni’s sports bribery crimes destroyed the careers of the athletes he had corrupted. Judge Goldsmith stated that the sentence was necessary to protect the public from further crimes by Manni.
“These bribery offenses were significant crimes not only because they affected fair play in the particular games and races involved, but also because they exploited young athletes and undermined public confidence in the sports themselves,” McQuade said.
The sports bribery cases were investigated by special agents of the Federal Bureau of Investigation. The food stamp fraud case was investigated by the United States Department of Agriculture, Office of Inspector General.
St. Louis man is sentenced to prison after traveling to Denver to have sex wtih mother and two minor daughtersRead the Press Release
DENVER – Darwin Gilbert Gowen, age 62, of St. Louis, Missouri, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 135 months (just over 11 years) in federal prison, followed by 10 years on supervised release for travel with intent to engage in illicit sexual conduct, the U.S. Attorney’s Office and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) announced. Gowen, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Gowen was first charged by Criminal Complaint on June 20, 2014. He was indicted by a federal grand jury in Denver on July 2, 2014. He pled guilty before Judge Jackson on March 31, 2015. He was sentenced on June 16, 2015.
According to court documents, Gowen was arrested by HSI agents at Denver International Airport (DIA) after he traveled with intent to have sex with two minor children. Specifically, the investigation began when an HSI special agent based in Greeley, Colorado, who was working in an undercover capacity as a 37-year-old single mother of two minor daughters, ages 15 and 11, came into contact with Gowen. The special agent, acting in the undercover persona, communicated with the defendant who expressed an interest in having sex with the mother and both daughters.
During the conversations, which took place primarily via email and text, the defendant stated that he was “a 60 year old male, widowed . . . wanting to experience the wild side of life.” He also said he “adored chubby girls” . . . and was “looking for naughty daughters . . . who love to hook up with a kinky mom for mom daughter fun.” Further investigation revealed that the individual was the defendant, Gowen, of St. Louis, Missouri.
Gowen told the undercover agent that he was going to fly to Denver to see her and have sex with her and her daughters. HSI agents confirmed that the defendant had arranged to fly to Denver on June 19th. On that date, he flew from St. Louis to DIA. Gowen met a female HSI agent, who purported to be the mother of the two minor children, at the DIA baggage claim. After the two discussed that he flew to Denver for the express purpose of having sex with the two minor children, he was arrested.
This case was investigate by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The Denver Police Department and the Colorado State Patrol assisted with the arrest at DIA.
Gowen was prosecuted by Assistant U.S. Attorney Alecia Riewerts, the Project Safe Childhood Coordinator for the District of Colorado.
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.
St. John the Baptist Parish Man Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHARLIE ENGLISH III, age 33, a resident of LaPlace, was sentenced today for his role in a conspiracy to defraud the Gulf Coast Claims Facility (GCCF) in the aftermath of the Deepwater Horizon oil spill.
U.S. District Judge Helen G. Berrigan sentenced ENGLISH to a term of three years probation. ENGLISH was also ordered to pay restitution in the amount of $257,400 to the GCCF.
The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. ENGLISH worked as a claims adjuster for the GCCF. Beginning in or about September 2010, ENGLISH, provided fraudulent documentation to his co-conspirators who posed as claimants, and submitted and/or caused to be submitted, via the internet, false claims for loss earnings representing that the claimants were employed in a commercial fishing business before the oil spill when in fact the claimants did not work in the commercial fishing industry. ENGLISH was to share in the claim proceeds in exchange for his assistance with the claims. Based on the fraudulent documentation, the GCCF issued approximately $257,400 to undeserving individuals.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans was in charge of the prosecution.
Sioux City Man Who Discharged a Firearm While Carjacking a Family Sent to Federal PrisonRead the Press Release
A man, who assaulted his girlfriend and during the assault pointed a gun at her face and threatened to kill her, was sentenced June 16, 2015, to 13 years in federal prison.
Angel Gomez, age 23, from Sioux City, received the prison term after a February 2, 2015, guilty plea to discharging a firearm in furtherance of a crime of violence.
At his plea hearing and sentencing, the United States produced evidence showing on August 23, 2014, Angel Gomez possessed, brandished and fired a warning shot from the handgun in furtherance of a carjacking. The victims of his carjacking were a family, including a child, who was visiting the War Eagle Monument in Sioux City, Iowa. The evidence also revealed Gomez undertook the carjacking as part of another criminal plot.
At the time of the carjacking he had already physically assaulted, threatened, and abducted his paramour when she attempted to end her intimate relationship with him. Gomez even fired a warning shot from the handgun during the abduction to overcome her refusal to get into his car and to scare off another person attempting to aid her. The possession of the firearm in furtherance of the carjacking was part of Gomez’s plan to escape with her girlfriend.
Gomez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gomez was sentenced to 156 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $165 in restitution to one of the crime victims. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Gomez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sioux City Police Department, the Iowa Department of Transportation, and the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4085.
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Shipping Company Fined $750,000 for Environmental CrimesRead the Press Release
CAMDEN, N.J. – Norbulk Shipping UK LTD, a company based in Glasgow, United Kingdom, and operator of the vessel M/V Murcia Carrier, pleaded guilty today to failing to maintain an accurate oil record book and providing false statements to the U.S. Coast Guard concerning the vessel’s garbage record book, New Jersey U.S. Attorney Paul J. Fishman and the U.S. Department of Justice Environment and Natural Resources Division announced.
Immediately following the guilty plea in Camden federal court, the company was sentenced by U.S. District Judge Joseph H. Rodriguez to pay a criminal penalty of $750,000 and placed on probation for three years.
“Illegal discharges at sea damage our environment and endanger those who work in and enjoy our coastal waters,” U.S. Attorney Fishman said. “As we have shown before, shipping companies that engage in these criminal practices and deliberately discharge oil – and then lie about it to the Coast Guard – will be prosecuted.”
“Our oceans are life giving and life sustaining resources that our country and our world depend upon,” Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division, said. “Ignoring perfectly legal and feasible ways to dispose of waste, the defendants chose instead to dump directly into the ocean. Today the company will pay a price for this inexcusable and criminal act.”
“Marine environmental protection is one of the Coast Guard’s primary missions,” Capt. Benjamin Cooper, the Sector Commander at Coast Guard Sector Delaware Bay, said. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future brazen illegal oil discharges into the sea.”
According to documents filed in this case and statements made in court:
The Act to Prevent Pollution from Ships (APPS) requires vessels like the M/V Murcia Carrier to maintain an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded. Vessels like the M/V Murcia Carrier also must maintain a garbage record book that fully and accurately records the discharge of all garbage into the sea from the vessel.
On April 27, 2014, crew members of the M/V Murcia Carrier, at the direction of Chief Mate Valerii Georgiev, dumped overboard several barrels containing hydraulic oil. While Norbulk and Georgiev dispute the number of barrels dumped into the sea, the government believes it was approximately 20 barrels. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. It was not recorded in either the ship’s oil record book or garbage record book, as required. In an effort to conceal the dumping, crewmembers presented a U.S. Coast Guard boarding team with a false oil record book and garbage record book when the vessel arrived in Gloucester, New Jersey.
On June 15, 2015, Georgiev pleaded guilty to failing to maintain an accurate oil record book in violation of APPS. He is scheduled to be sentenced July 8, 2015.
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office, District of New Jersey, and Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice.
Defense counsel:
Georgiev: Michael Twersky Esq., Philadelphia
Norbulk: George Kontakis Esq., New York
Shipping Company Fined $750,000 for Environmental CrimesRead the Press Release
Norbulk Shipping UK Ltd, a company based in Glasgow, United Kingdom, and operator of the M/V Murcia Carrier, pleaded guilty to failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS) and providing false statements to the U.S. Coast Guard concerning the vessel’s garbage record book. The company was sentenced to pay a criminal penalty of $750,000 and placed on three years of probation by the Honorable Joseph H. Rodriguez, the Department of Justice Environment and Natural Resources Division and the U.S Attorney’s Office for the District of New Jersey announced today.
“Our oceans are life giving and life sustaining resources that our country and our world depend upon,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Ignoring perfectly legal and feasible ways to dispose of waste, the defendants chose instead to dump directly into the ocean. Today the company will pay a price for this inexcusable and criminal act.”
“Illegal discharges at sea damage our environment and endanger those who work in and enjoy our coastal waters,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “As we have shown before, shipping companies that engage in these criminal practices and deliberately discharge oil – and then lie about it to the Coast Guard – will be prosecuted.”
APPS requires vessels like the M/V Murcia Carrier to maintain a record known as an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded. Additionally, vessels like the M/V Murcia Carrier must maintain a record known as garbage record book that fully and accurately records the discharge of all garbage into the sea from the vessel.
On April 27, 2014, crew members on board the M/V Murcia Carrier dumped overboard several barrels containing hydraulic oil, at the direction of the vessel’s Chief Mate Valerii Georgiev. While Norbulk and Georgiev dispute the number of barrels dumped into the sea, the government believes that approximately 20 barrels were dumped overboard. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. The dumping was not recorded in either the ship’s oil record book or garbage record book as required. In an effort to conceal the dumping, crewmembers presented a U.S. Coast Guard boarding team with a false oil record book and garbage record book when the vessel arrived in Gloucester, New Jersey.
On June 15, 2015, Georgiev also pleaded guilty to failing to maintain an accurate oil record book in violation of APPS. He is scheduled to be sentenced at a future date.
“Marine environmental protection is one of the Coast Guard's primary missions,” said Captain Benjamin Cooper, the Sector Commander at Coast Guard Sector Delaware Bay. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future brazen illegal oil discharges into the sea.”
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The case was prosecuted by Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office for the District of New Jersey.
Second of Two Men Sentenced in Bank Robbery in Twin FallsRead the Press Release
BOISE - Juan Loredo, 22, of Salinas, California, was sentenced today to 155 months in prison followed by five years of supervised release for bank robbery by use of dangerous weapons, and brandishing of firearms during the commission of a felony offense, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered forfeiture of the three firearms involved in the bank robbery. Loredo pleaded guilty on March 24, 2015.
According to court documents, on November 20, 2014, Loredo and his co-defendant Shawn Smith, 19, also of Salinas, California, robbed the First Federal Bank in Twin Falls, Idaho. As the men entered the bank, Loredo brandished a sawed-off shotgun, and Smith brandished a semi-automatic pistol at the tellers and manager. They stole $7,351, all of which was recovered by police when the men were arrested after a high-speed vehicle chase, and foot pursuit.
Smith was sentenced on June 9, 2015, to 119 months in prison.
“Those who use firearms to commit violent crimes, such as bank robberies, will be vigorously investigated and prosecuted,” said Olson. “Innocent people who simply go to work each day in commerce, or who go into our banks to transact their daily business, must not be put in fear for their lives.”
The men were apprehended by, and the case was investigated by, the Twin Falls Police Department. The Bureau of Alcohol, Tobacco and Firearms assisted in the investigation and prosecution of these offenses.
Second Man Arrested in Jett CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brandon Peralez, 29, of Rochester, NY, was arrested and charged by criminal complaint with unlawful importation of and conspiracy to import Alpha PVP, a Schedule I controlled substance and attempted possession of Alpha PVP with intent to distribute.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaint, the defendant was arrested in connection with the seizure of two packages sent from China, each containing three kilograms of Alpha PVP. One of the packages was addressed to Jack Jett, at Jett’s residence in Hemlock, NY. Jett was arrested on May 27, 2015 after law enforcement executed a controlled delivery of the package to his residence. The complaint further states that Peralez was present at Jett’s residence when the package was delivered and actually signed for the package.
The second package was addressed to Peralez at his residence in Rochester.
The defendant made an initial appearance before U.S. District Court Judge Charles J. Siragusa and was released on bail.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the New York State Police, under the direction of Major Craig Hanesworth, the Hornell Police Department, under the direction of Chief TJ Murray, the Steuben County Sheriff’s Department, under the direction David V. Cole, and the Ontario County Sheriff’s Department, under the direction of Philip C. Povero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Schuele Boys Gang Member Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Fred Johnson, aka Macaroni, 22, of Buffalo, NY, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that as a member of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Johnson then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
On July 23, 2014, law enforcement officers executed a search warrant at the defendant’s Fisher Street residence and recovered a .22 caliber pistol.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Johnson was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the sixth to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sentencing is scheduled for October 5, 2015 at 12:30 p.m. before Judge Arcara.
Salesman Sentenced to 37 Months in Prison for Role in Bribes-For-Test-Referrals Scheme Involving New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 37 months in prison for his role in a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Len Rubinstein, 44, of Holmdel, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bribery and one count of money laundering. Judge Chesler imposed the sentence today in Newark federal court.
Including Rubinstein, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11 million to date through forfeiture.
According to documents filed in this and other cases and statements made in court:
From May 2012 through April 2013, Rubinstein agreed with BLS president David Nicoll, 41, of Mountain Lakes, New Jersey, his brother, Scott Nicoll, 34, of Wayne, New Jersey, and others to pay doctors to refer patients to BLS for testing of blood specimens. Rubinstein paid cash bribes to doctors as part of the conspiracy. Rubinstein admitted he used Delta Consulting Group LLC – an entity he controlled – to hide the money he received from BLS and used to make bribe payments to doctors.
In addition to the prison term, Judge Chesler ordered Rubinstein to serve one year of supervised release, pay a $10,000 fine, and forfeit $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Charles Uliano Esq., West Long Branch, New Jersey
Rochester Man Pleads Guilty Drug Trafficking and Gun Possession ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jose Guerra Caraballo, 43 of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci to possession of cocaine with intent to distribute and possession of a firearm in the furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $2,000,000 fine.
Assistant U.S. Attorney Robert A. Marangola who is handling the case, stated that between November 2014 and January 2015, law enforcement officers investigated Caraballo and his brother, Jose Miguel Guerra. Controlled purchases of cocaine were arranged and completed between Caraballo and a confidential source. On one occasion a purchase of cocaine, heroin and firearm were discussed. Guerra was to supply the firearm. On January 21, 2015, the confidential source met Caraballo and Guerra to purchase the cocaine, heroin and firearm. The confidential source met Caraballo and Guerra briefly and was shown the firearm and told that they had to go get cocaine.
Caraballo and Guerra were surveilled leaving the area and then observed entering 264 Clifford Avenue in Rochester. Caraballo then called the confidential source and told him he had the cocaine. Several minutes later, Caraballo and Guerra met with the confidential source in a parking lot at 341 E. Ridge Road. They were subsequently arrested by members of the Rochester Police Department. During the search of the vehicle Caraballo and Guerra were in, officers recovered a ROHM. 38 Special revolver, 12 live rounds of .38 Special ammunition, approximately 12.5 grams of heroin, 33 grams of cocaine, marijuana and new/unused glassine bags.
Later that day, officers executed search warrants at 15 Bardin Street, a residence leased by Guerra, and 264 Clifford Avenue, locations identified during the investigation. Law enforcement recovered various items including, a firearm, ammunition, cash, drugs and drug paraphernalia.
During a post-arrest statement, Guerra told officers he and Caraballo picked up cocaine from a location, later identified to be 264 Clifford Avenue that day. Guerra was convicted of carrying a firearm during and in relation to a drug trafficking crime which carries a mandatory minimum penalty of five years in prison and a maximum penalty of life, a fine of $250,000 or both. Guerra is awaiting sentencing on July 13, 2015.
Today’s conviction is the culmination of an investigation on the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Federal Bureau of Investigation.
Caraballo’s sentencing is scheduled for October 19, 2015 at 2:30 p.m. before Judge Geraci.
Rio Rancho Man Pleads Guilty to Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Mathuren, 38, of Rio Rancho, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Mathuren will be sentenced to ten years in federal prison followed by not less than three years of supervised release.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Michael Geier of the Rio Rancho Police Department.
Mathuren, whose prior criminal history includes convictions for possession of marijuana with intent to distribute, possession of methamphetamine, and possession of methamphetamine with intent to distribute, is prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Sandoval County, under this initiative.
Mathuren was arrested on Oct. 28, 2014, on a three-count indictment charging him with being a felon in possession of firearms and ammunition; possession of methamphetamine with intent to distribute; and using and carrying a firearm in furtherance of a drug trafficking crime. According to the indictment, Mathuren committed the three offenses on July 22, 2014, in Sandoval County, N.M. The indictment was superseded on Dec. 16, 2014, to add two additional charges of being a felon in possession of firearms and ammunition on Oct. 28, 2014 – the date on which Mathuren was arrested on the original indictment.
During today’s proceedings, Mathuren pled guilty to Counts 2 and 3 of the indictment. In entering the guilty plea, Mathuren admitted that on July 22, 2014, officers of the Rio Rancho Police Department executed a search warrant on his vehicle and seized approximately 30.3 grams of methamphetamine, drug paraphernalia, a pistol, rifle and ammunition. Mathuren further admitted that the rear stalk of the rifle had been shortened and the pistol had been reported stolen. Mathuren acknowledged that the firearms were “tools of the drug trafficking trade” and that he possessed them to assist him in his drug trafficking activities.
Mathuren previously was charged in July 2014, on related state charges. The state charges were dismissed in favor of federal prosecution after Mathuren was arrested on the federal charges in this case.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rio Rancho Police Department with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
Queens Doctor Sentenced to 54 Months’ Imprisonment for Conspiracy to Distribute OxycodoneRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Gracia L. Mayard, a Queens doctor, was sentenced to 54 months in prison and $20,000 forfeiture by United States District Judge Joseph F. Bianco. Mayard pleaded guilty to conspiring to illegally distribute oxycodone, a highly addictive prescription pain killer, on September 16, 2014.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York; Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department; Joseph A. D’Amico, Superintendent, New York State Police; and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York.
“Dr. Mayard violated his oath and the law by illegally providing vast quantities of these powerful painkillers without medical necessity. Even after surrendering his DEA registration, he wrote a backdated prescription for oxycodone in an attempt to illegally provide pills,” stated Acting United States Attorney Currie. “Health care providers who act as drug dealers are on notice that they will face serious consequences.” Mr. Currie extended his grateful appreciation to each of the law enforcement agencies for their assistance in this case.
During his guilty plea allocution in September 2014, Mayard admitted that in 2012 and 2013, he provided prescriptions to a co-conspirator for patients he had not examined in exchange for cash and continued to write prescriptions after surrendering his DEA registration to prescribe controlled substances on February 7, 2013.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
Mayard’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen Bode is in charge of the prosecution.
The Defendant:
Name: GRACIA L. MAYARD
Age: 63
Residence: Queens, NY
Potosi, Neosho Men Indicted for Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Potosi, Mo., man and a Neosho, Mo., man have been indicted by a federal grand jury in separate and unrelated cases related to child pornography and exploitation.
USA v. Nosser
Kevin Michael Nosser, 37, of Potosi, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo., today.
The federal indictment alleges that Nosser used the Internet and a cell phone to entice a minor in Lawrence County, Mo., to engage in illicit sexual activity on May 22 and 23, 2015.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol and the Lawrence County, Mo., Sheriff’s Department.
USA v. Hilburn
Larry Don Hilburn, 28, of Neosho, Mo., was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, June 16, 2015. The federal indictment charges Hilburn with one count of receiving and distributing child pornography over the Internet on Sept. 8, 2014, and with one count of possessing child pornography on Oct. 1, 2014.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Southwest Missouri Cyber Crimes Task Force.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pensacola Man Indicted for Child Exploitation Crimes (Robertson)Read the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment yesterday charging Pensacola resident John W. Robertson, 68, with attempted enticement of a minor and possession of child pornography. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in May 2015, Robertson knowingly attempted to entice an individual less than 18 years of age to engage in sexual activity, and that he possessed sexualized images and videos involving minors less than 12 years of age.
Robertson originally appeared in federal court last month upon being arrested on a federal criminal complaint. He will be arraigned on the indictment at the United States Courthouse in Pensacola, Florida, and is being held in federal custody at the Santa Rosa County Jail, pending further proceedings.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Florida Department of Law Enforcement, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
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 Office
(850) 216-3854, [email protected]Pensacola Man Indicted for Child Exploitation Crimes (Grafton)Read the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment yesterday charging Pensacola resident Robert M. Grafton Jr., 29, with attempted enticement of a minor and possession of child pornography. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in May 2015, Grafton knowingly attempted to entice an individual less than 18 years of age to engage in sexual activity, and that he possessed sexualized images and videos involving minors less than 12 years of age.
Grafton originally appeared in federal court last month upon being arrested on a federal criminal complaint. He will be arraigned on the indictment at the United States Courthouse in Pensacola, Florida, and is being held in federal custody at the Santa Rosa County Jail, pending further proceedings.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Florida Department of Law Enforcement, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
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 Office
(850) 216-3854, [email protected]Penn Hills Man Admits Participating in Drug Trafficking SchemeRead the Press Release
PITTSBURGH - A Penn Hills resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.
Abdul Boyd, 38, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Abdul Boyd was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Oct. 15, 2015. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Abdul Boyd.
Passaic County, New Jersey, Man Sentenced to Five Years in Prison for Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for conspiring to launder money as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Nicholas Tarsia, Jr., 67, of Totowa, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to a superseding information charging him with one count of conspiring to commit money laundering. Judge Simandle imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Tarsia was among 13 defendants charged in a series of indictments returned on July 2012 and November 2013 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Tarsia and his conspirator Timothy Ricks of Essex County, New Jersey, caused $15 million in fraudulent mortgage loans to be funded during 2006, 2007, and 2008, to enable unqualified buyers of real estate to purchase real estate properties. Once the funds for these mortgages were deposited into a title company’s escrow account, Tarsia extracted proceeds from the fraud through wire transfers and checks to himself and his conspirators. Tarsia and conspirator Ricks, in turn, transmitted a portion of those proceeds to other conspirators, including Dwayne Onque and Orlando Allen. In addition, conspirator Darryl Henry, in turn, transmitted a portion of those proceeds to conspirators Kinard J. Henson and Willie W. Richardson.
In addition to the prison term, Judge Simandle sentenced Tarsia to serve three years of supervised release. Restitution will be determined at a hearing scheduled for July 9, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, in Newark, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Telesforo Del Valle Jr. Esq., New York
Parkton Landscaper Admits to Stealing $180,000 from a ClientRead the Press Release
Baltimore, Maryland – Jeffrey Poole, age 40, of Parkton, Maryland, pleaded guilty today to bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea, Poole met the victim when he provided landscaping services. He helped set up the victim’s new computer for on-line banking and gained access to the victim’s personal identity and financial information. Shortly thereafter, Poole used the victim’s identity to establish a PayPal account for the victim, without the victim’s knowledge. Poole used the victim’s personal and financial information to link the victim’s PayPal account to the victim’s checking account, so that payments made with or money transferred from the victim’s PayPal account would be automatically drawn from the victim’s bank account.
From April 2007 through January 2014, Poole repeatedly logged onto the victim’s PayPal account and made purchases for himself. He also initiated money transfers from the victim’s PayPal account into his own PayPal account. He then transferred the victim’s funds to his own bank accounts.
As a result of the scheme, Poole fraudulently obtained or attempted to obtain over $244,000.
Poole faces a maximum sentence of 30 years in prison and a fine of $1 million for bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence imposed. Chief U.S. District Judge Catherine C. Blake scheduled his sentencing for September 23, 2015, at 9:15 a.m.
Poole has agreed to pay restitution of $180,000 for the actual losses incurred by the victim.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Owner of Scrap Metal Business Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Kansas City, Mo., scrap metal business has been sentenced in federal court for tax evasion.
Nellie Brown Boxx, 62, of Kearney, Mo., was sentenced by Chief U.S. District Judge Greg Kays on Tuesday, June 16, 2015, to 18 months in federal prison without parole. The court also ordered Boxx to pay $366,846 in restitution to the IRS and the Missouri Department of Revenue. Boxx paid $50,000 of that restitution amount prior to yesterday’s hearing.
Boxx, the owner of Frank Metal Company in Kansas City, pleaded guilty to tax evasion on Feb. 19, 2015. Boxx admitted that she assisted tax preparers to prepare tax returns that contained false information. For example, Boxx classified purchases such as food items, drinks, jewelry, dry cleaning, household items and high-end clothing as business expenses for her scrap metal company.
According to the plea agreement, Boxx received $320,345 in taxable income in 2008, and owed $87,123 in federal income tax. The court-ordered restitution includes that tax loss as well as additional relevant conduct.
Boxx also admitted that she submitted a false 2008 Form 1040 to a bank in order to receive a financial loan. Boxx also admitted that she made false statements to IRS agents, such as falsely claiming that business documents had been destroyed by water damage from a leak in the roof.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.
Oklahoma Man Charged with Fraud SchemeRead the Press Release
Lee Michael Harrison, 39, of Oklahoma City, Oklahoma, was charged by indictment, unsealed today, with three counts of wire fraud. In 2010 and 2011, Harrison was attempting to establish restaurants and clubs in North Carolina, and to sell a reality television show to the Food Network. He convinced two investors to each invest $20,000 with him by falsely representing that they were investing in a fictitious technology called “Capture” that prevented cell phones from dropping calls and that he allegedly had sold to a prominent New York financier for over six billion dollars.
If convicted, the defendant faces a maximum possible sentence of 60 years of in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Northwest Arkansas Man Sentenced to Prison for Federal Tax FraudRead the Press Release
Fayetteville, Arkansas – A Springdale, Arkansas, man was sentenced today in the U.S. District Court in Fayetteville, Arkansas, for multiple tax crimes, announced U.S. Attorney Conner Eldridge of the Western District of Arkansas and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Doyle Smith, 56, was sentenced to serve 48 months in prison to be followed by five years of supervised release and ordered to pay a $5000 fine. On Feb. 11, following a three-day trial before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas, a jury found Smith guilty of four counts of filing a false tax return, one count of corruptly endeavoring to obstruct and impede the administration of the internal revenue laws and one count of presenting a fictitious financial obligation.
According to evidence introduced at trial, in 2008 and 2009, Smith submitted four false individual federal tax returns for tax years 2005 through 2008, which falsely reported a total of more than $1.4 million in fictitious federal tax withholdings. Based on these fictitious withholding amounts, Smith claimed a total of $1,021,457 in income tax refunds that he was not entitled to receive. Smith also submitted false claims and correspondence to both the Internal Revenue Service (IRS) and third-parties in an attempt to cause the IRS and U.S. Treasury to pay his debts to third parties and to obstruct the IRS’ tax administration efforts. For example, in January 2010, Smith mailed to the Department of Arkansas Finance and Administration a fictitious financial instrument titled “U.S. Treasury Trust Account Money Order.” This fictitious document purportedly obligated U.S. Treasury funds in the amount of $129,439 to pay for outstanding sales taxes that Smith owed to the state of Arkansas.
“Smith, in his fraudulent scheme, attempted to steal taxpayer money from the U.S. Treasury for his own benefit,” said U.S. Attorney Eldridge. “Those who steal from the U.S. Treasury steal directly out of the pockets of the hard-working people of the Western District of Arkansas. With today’s sentence, a strong message has been sent that our office and our law enforcement partners will relentlessly pursue fraud wherever we find it.”
“Individuals like Doyle Smith, who commit criminal tax offenses and attempt to use the U.S. Treasury as their personal slush fund, will be identified, investigated, prosecuted and incarcerated,” said Acting Assistant Attorney General Ciraolo. “The message from today’s sentencing is clear: those who attempt to cheat the system will pay a heavy price for their criminal conduct.”
“Today’s sentencing is a reminder of the penalties individuals face when submitting false claims for federal income tax refunds,” stated Special Agent in Charge Christopher A. Henry of the IRS-Criminal Investigation (CI). “IRS-Criminal Investigation will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system, and our unwavering commitment to protecting the interests of law-abiding taxpayers.”
“It is the Treasury Inspector General for Tax Administration’s mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of the Treasury Inspector General for Tax Administration’s (TIGTA’s) Mid-States Field Division. “TIGTA and its law-enforcement partners will vigorously investigate individuals that attempt to corruptly interfere with the administration of the internal revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law. Today’s sentencing demonstrates that our justice system will not tolerate these types of actions.”
U.S. Attorney Eldridge and Acting Assistant Attorney General Ciraolo commended the special agents of IRS-CI and TIGTA, who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division, who prosecuted the case.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Newton Investment Adviser Arrested for FraudRead the Press Release
BOSTON – A Newton investment adviser was arrested and charged today with pitching fictitious investments to defraud investors out of hundreds of thousands of dollars.
Paul J. Jackson, 58, of Wellesley, was charged with one count of wire fraud.
According to charging documents, Jackson owns and operates Paul J. Jackson & Associates, LLC in Newton, through which he manages retirement funds for clients. Beginning in 2010, Jackson started offering clients and others what appeared to be attractive investment opportunities. The investments Jackson offered typically involved initial public offerings (IPOs) of high-profile companies, but Jackson did not invest the clients’ money as promised. Instead, he took hundreds of thousands of dollars of investor money for his own use. For example, it is alleged that Jackson took $175,000 from one investor to whom he had pitched a lucrative investment in Alibaba’s IPO. Instead of investing the money, Jackson kept $112,000 for himself and gave $60,000 to another investor who had given Jackson more than $450,000 and was demanding his money. When other investors requested their money back, Jackson offered excuses and never told them that he had simply taken their money.
The Massachusetts Securities Division also filed a separate administrative action against Jackson today, charging him with fraud and seeking to bar him from working in the securities industry.
The maximum sentence under the wire-fraud statute is 20 years in prison, three years of supervised release, and a fine of the greater of $250,00 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission during the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nampa Woman Sentenced for Selling Methamphetamine at her ResidenceRead the Press Release
BOISE – Brandi Larrea, 31, of Nampa, Idaho, was sentenced today to 48 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Larrea to serve four years of supervised release following her release from prison. Larrea pleaded guilty on March 26, 2015.
According to the plea agreement, Larrea admitting selling methamphetamine at her residence in Nampa, Idaho, on five separate occasions in January and March of 2013, and from March to May of 2014, totaling 33.3 grams of actual methamphetamine. In June of 2013, law enforcement agents with the Treasure Valley Metro Violent Crimes Task Force and the Federal Bureau of Investigation searched the defendant's residence pursuant to a search warrant and discovered 24 grams of actual methamphetamine and digital scales.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of robation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. 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 cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Nampa Woman Sentenced for Distribution of MethamphetamineRead the Press Release
BOISE – Tara Noelle Rivera, 30, of Nampa, Idaho, was sentenced today to 24 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Rivera to serve three years of supervised release following her release from prison. Rivera pleaded guilty on March 31, 2015.
According to court documents, Rivera admitted to selling methamphetamine to a police informant on three separate occasions in March 2014. Rivera further admitted to selling a 9 millimeter pistol to the informant. Rivera’s case is part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of robation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. 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 cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Monmouth County, New Jersey, Man, Sentenced to 21 Months in Prison, in Racketeering Conspiracy/Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 21 months in prison for his role in a racketeering conspiracy, U.S. Attorney Paul J. Fishman announced.
Michael O’Donnell, 51, Wall Township, previously pleaded guilty before U.S. District Judge Claire C. Cecchi, to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute by participating in the activities of Beteagle, an overseas Website that facilitated online sports betting. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Joseph Graziano, 78, of Springfield, was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick Barone, 45, of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website.
O’Donnell was given access to Beteagle and was considered an “agent” of the website. Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
O’Donnell was an agent who assisted in the illegal gambling business conducted through the website. To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. O’Donnell and his conspirators paid out winnings or collected losses in person. The agent or sub-agent paid a fee to the website for each bettor added to a package. O’Donnell collected money from bettors and then passed a portion of the proceeds to Barone in furtherance of the racketeering scheme.
In addition to the prison term, Judge Cecchi ordered O’Donnell to serve three years of supervised release and pay a $5,000 fine.
Graziano has pleaded guilty to his role in the scheme and is currently scheduled for sentencing on June 25, 2015. Barone was sentenced to 18 months’ imprisonment.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Robert L. Galantucci Esq., Hackensack, New Jersey
Millstone, New Jersey, Mortgage Broker Sentenced to One Year in Prison for Extortion ConspiracyRead the Press Release
TRENTON, N.J. – A Millstone, New Jersey, man was sentenced today to 12 months in prison for conspiring to extort victims out of money and property by falsely stating they were the subjects of IRS criminal investigations, U.S. Attorney Paul J. Fishman announced.
Robert G. Cusic Jr., 46, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with conspiracy to commit extortion under fear of economic harm. U.S. District Judge Anne E. Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Cusic, Thomas G. Frey, 55, of Edison, New Jersey, and another conspirator (identified only as CC-1), schemed to extort and to defraud four victims, including two police officers, by falsely representing to the victims that they were the subjects of criminal investigations, principally by the IRS, in connection with investment properties some of them owned. Cusic falsely represented that while at a property formerly owned by one of the victims, Cusic encountered two IRS special agents (SA-1 and SA-2) who questioned him extensively about some of the victims.
Frey, a lawyer and certified public accountant, falsely told the victims he had ongoing communications with SA-1 about the purported investigation and had a special relationship with SA-1. Frey told the victims if they paid up to $20,000 each, he would call SA-1 and have the investigation converted from a criminal tax investigation to an IRS “desk audit,” a civil matter. Frey and CC-1 falsely stated that if the victims did not retain his services and pay the fee, the investigation would likely result in the arrest of certain victims.
Cusic admitted the goal of the conspiracy was to obtain approximately $80,000 in fees for Frey and to cause the victims to sell certain of the properties to Frey and others. Cusic stood to receive a portion of any fees paid by the victims, a percentage of the sale price of each of the investment properties sold to Frey and others, and property management fees on any of the properties sold.
In addition to the prison term, Judge Thompson sentenced Cusic to serve three years of supervised release and ordered him to pay a $3,000 fine.
Frey previously pleaded guilty before Judge Pisano to two counts of an indictment charging him with conspiracy to commit extortion under fear of economic harm and conspiracy to commit wire fraud. He was sentenced on April 27, 2015, to 27 months in prison.
Fishman credited special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney Davis, Washington Field Division, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense Counsel: Peter R. Willis Esq., Jersey City, New JerseyMiami-Dade County Residents Sentenced for Committing Armed Robbery SpreeRead the Press Release
Michael Childs, 39, and Charles Lovett, 26, both of Opa-Locka, were sentenced by U.S. District Court Judge Joan A. Lenard to consecutive terms of imprisonment totaling 480 months and 141 months respectively, for committing multiple armed robberies.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement.
According to statements made and documents filed in court, Childs and Lovett were charged with committing a series of armed robberies of commercial establishments in late 2013 and early 2014, across Miami-Dade and Broward Counties, including robberies in West Park, Miami Gardens, Opa-Locka, and the City of Miami. Both Childs and Lovett pled guilty to committing multiple armed robberies. Childs also admitted that, in January 2014, during the course of two separate robberies, he used a firearm to shoot at customers and employees inside Opa-Locka and Liberty City convenience stores. Childs, who had previously been convicted of committing a robbery in Pennsylvania, was identified through a forensic examination of fingerprints he left during the course of a robbery at the Liberty City convenience store.
Mr. Ferrer commended the investigative efforts of members of the Violence Reduction Partnership, including ATF, Miami-Dade Police Department (MDPD), the City of Miami Police Department, Opa-Locka Police Department, Miami Gardens Police Department, Broward Sheriff’s Office, and the Hallandale Beach Police Department. The cases were prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Seth M. Schlessinger.
Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
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 Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NAZARIO HERNANDEZ-MALDONADO, 54, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Helen G. Berrigan sentenced HERNANDEZ-MALDONADO to time serviced, 1 year of supervised release, and a $100 special assessment. HERNANDEZ-MALDONADO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about January 23, 2015, HERNANDEZ-MALDONADO was found in the United States after having been officially deported and removed on or about August 8, 1998, and on or about July 1, 2000.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE BENJAMIN LOPEZ-AGUILAR, age 23, a citizen of, 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 April 24, 2015, LOPEZ-AGUILAR was found in the United States after having been officially deported and removed on or about October 15, 2014.
LOPEZ-AGUILAR 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 Helen G. Berrigan set sentencing for August 26, 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.
Jose Benjamin Lopez-Aguilar Factual Basis.docx (19.6 KB)
McLaughlin Man Sentenced for Third Degree BurglaryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Third Degree Burglary was sentenced on June 15, 2015, by U.S. District Judge Charles B. Kornmann.
Blake Crow Ghost, age 21, was sentenced to 6 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Crow Ghost was indicted for First Degree Burglary, Assault with a Dangerous Weapon, and Third Degree Burglary by a federal grand jury on June 23, 2014. He pled guilty to Third Degree Burglary on March 5, 2015.
The conviction arose from a June 22, 2013, incident at McLaughlin, when Crow Ghost and two co-defendants entered a garage and damaged a sitting area, and also removed speakers from the garage and smashed them against the house. Later that night, Crow Ghost joined in physical altercations between his co-defendants and several victims. Crow Ghost kicked one victim while he was on the ground, tackled another victim and caused her to fall into a garage door, and attacked a third victim.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Crow Ghost was immediately turned over to the custody of the U.S. Marshals Service.
Marionville Man Pleads Guilty to Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marionville, Mo., man pleaded guilty in federal court today to child sexual exploitation.
Darren Eugene Schaefer, 36, of Marionville, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to using the Internet and cell phone to attempt to entice a minor to engage in illicit sexual activity.
A task force officer with the Southwest Missouri Cybercrimes Task Force investigated a tip from the National Center for Missing and Exploited Children in May 2014 that Schaefer was contacting underage females on the social networking site MeetMe, asking them if they wanted to meet for sexual acts. Schaefer sent messages indicating that he was interested in sexual contact with seven underage females. After contacting the females using the instant message feature on MeetMe, Schaefer would attempt to move the conversations to cell phone text messages.
During the on-line communications between Schaefer and the underage female victims, Schaefer admitted to the victims that he was 35 years old, and stated that he preferred younger females. In one instance, one of the victims asked Schaefer why he posted his age on MeetMe as 14 years old if he was really 35. Schaefer replied that was the only way he could see underage females on this Web site and communicate with them. One victim asked him if he knew he could get in trouble for what he was doing. He replied he knew he could get in trouble but hoped he would not.
A federal search warrant was executed at Schaefer’s residence on June 17, 2014. Schaefer told officers that he talked to hundreds of girls on various social networking Web sites and that he had contacted underage girls several other times using MeetMe. Schaefer also admitted to meeting at least three underage girls for sexual intercourse over a 10-year period. He reported that he had met all three of them from social networking sites on the Internet. He met two of the girls in Nixa and one at Hood's Truck Stop on 1-44.
Officers seized two laptop computers, two external hard drives and Schaefer’s cell phone. The laptops contained 103 images of child pornography. A total of 474 images of child erotica were located on the multiple electronic media.
Under federal statutes, Schaefer is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Marion County Man Convicted of Federal Firearm OffenseRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Reginald Howard, Jr. (36, Ocala) guilty of possession of a firearm and ammunition by a convicted felon. He faces a mandatory minimum sentence of 15 years, up to life, in federal prison. His sentencing hearing has not yet been scheduled. Howard was indicted on January 7, 2015.
According to the testimony and evidence presented at trial, Ocala Police Department officers were called to a disturbance at a store on November 28, 2014. Officers were told that a man was in the bathroom with a gun. Officers confronted Howard and a subsequent search revealed a loaded, 9mm handgun inside his left rear pocket. Howard stated that he had the firearm for protection. Witnesses reported that Howard had threatened them while displaying the pistol.
Prior to the incident, Howard had been convicted for the sale of cocaine and felony fleeing and eluding law enforcement. As such, he qualifies for an enhanced sentence as an armed career criminal under federal law. At the time of the offense, Howard was under federal supervision.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It is being prosecuted by Assistant United States Attorneys Bryon R. Aven and Robert Bodnar.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.