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Friday 1 May 2015
Harrisburg Man Sentenced to 7 Years for Armed Bank RobberyRead the Press Release
HARRISBURG-The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Judge Yvette Kane sentenced Tashan Lantiqua Layton, age 24, of Harrisburg, yesterday to 84 months in prison for bank robbery.
During the sentencing hearing, Assistant U.S. Attorney Joseph Terz stated that on March 30, 2013, Layton entered the Sovereign Bank branch at 519 South 29th Street, Harrisburg, Pennsylvania, pointed a gun at a bank manager, and demanded money. Layton admitted to the Court that the gun he pointed at the bank employee was loaded. Customers were present in the bank at the time of the incident.
The 84-month sentence Layton received represents the high end of the guidelines range he faced. The Court rejected defense counsel's request for a downward variance.
The investigation was conducted by the Harrisburg Police Department and the FBI.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Guatemalan Native Charged with Illegal ReentryRead the Press Release
Cesar Augusto Perez, a/k/a “Erick Alberto Perez,” 41, of Philadelphia, PA, was charged on April 30th by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 26, 2015, Perez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about July 9, 1999 and April 6, 2006.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Special Assistant United States Attorney Jordan Strauss.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SERGIO TULIO VARGAS-VARGAS, age 25, a citizen of Guatemala, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, VARGAS-VARGAS reentered the United States after having been previously deported on October 25, 2012. If convicted, VARGAS-VARGAS faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Sergio Tulio Vargas-Vargas Indictment
Government Moves to Dismiss Rim Fire IndictmentRead the Press Release
FRESNO, Calif. — The government has moved to dismiss the federal indictment against Keith Matthew Emerald, 33, of Columbia, California, United States Attorney Benjamin B. Wagner announced. The indictment alleged that Emerald had caused the Rim Fire, which burned approximately 250,000 acres of land, and that he had made a false statement to federal investigators regarding the origin of that fire.
In its motion to dismiss, filed today, the government advised the United States District Court that two witnesses had unexpectedly died in recent months, since the filing of the indictment last August. The government’s motion characterized one witness as critical to the case and stated that he had been expected to provide trial testimony regarding his discussions with Emerald shortly after Emerald had been rescued from the vicinity of the Rim Fire’s origin. That witness died in a workplace accident in February. The second witness was the helicopter pilot who first responded to the Rim Fire. That witness had been expected to testify about the initial response to the Rim Fire and the rescue of the defendant very close to the Rim Fire’s point of origin. That witness died in March of cardiac arrest. These witnesses’ prior statements are inadmissible hearsay and cannot be used as evidence at trial.
In its motion, the government stated that it had reassessed the case in light of the loss of this anticipated trial testimony and determined that without that testimony it was unlikely to prove the charges in the case beyond a reasonable doubt to the unanimous satisfaction of a trial jury. Accordingly, it was in the interests of justice to dismiss the case.
United States Attorney Wagner stated, “I appreciate the hard work done by the US Forest Service in investigating this case, and I understand that the government’s motion to dismiss will be frustrating to some. However, when circumstances change after indictment, and our judgment is that a case is no longer likely to be proven beyond a reasonable doubt, it is our obligation to the defendant and to the Court to dismiss that case.”
The United States Attorney also noted that the indictment contained only allegations; a defendant is always presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Georgia Man Pleads Guilty in Stolen Identify Refund Fraud SchemeRead the Press Release
PITTSBURGH - An individual from the State of Georgia pleaded guilty in federal court to charges of wire fraud conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.
Mark Williams, a/k/a Frank White, 45, of Summerville, Ga., pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Williams, along with other co-conspirators, conspired to steal identities of other persons that were used to file false electronic federal tax returns between 2011 and 2015 which requested federal income tax refunds into bank accounts in Pittsburgh and in Georgia.
Judge Fischer scheduled the sentencing for Sept. 3, 2015. The law provides for a maximum total sentence of not more than 44 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Mark Williams.
Gang Member Sentenced to Life for South San Francisco Murders, Attempted Murder of Federal Agents and Racketeering ConspiracyRead the Press Release
Victor Flores, 23, of Petaluma, California, a member of the 500 Block/C Street Gang of South San Francisco, was sentenced to life in prison, announced U.S. Attorney Melinda Haag, Acting Special Agent in Charge Tatum King of Homeland Security Investigations and Special Agent in Charge David J. Johnson of FBI.
Flores was convicted after a three-month trial spanning from April through July of 2014 before the Honorable U.S. District Judge Susan Illston. According to the evidence presented at trial, during the evening of Dec. 22, 2010, Flores, along with fellow 500 Block/C Street gang member Joseph Ortiz, shot at seven victims who they perceived to be members of the rival Cypress Park Locos gang as the victims walked down Eighth Lane in South San Francisco. Gonzalo Avalos, Omar Cortez and Hector Flores were killed while three of the others were wounded. In addition, on May 3, 2012, when special agents of the Los Angeles Special Response Team of Homeland Security Investigations tried to arrest Flores at his home in Petaluma, Flores shot at the agents with an AK-47-style assault rifle, emptying two full magazines of ammunition and wounding three agents before eventually surrendering to law enforcement.
The jury convicted Flores of racketeering murders of Avalos, Cortez, and Flores; racketeering attempted murders of the other four victims on Eighth Lane; attempted murders of three federal agents; using a firearm in furtherance of the December 22, 2010, and May 3, 2012, murders and attempted murders; conspiring to conduct the affairs of the 500 Block/C Street Gang through a pattern of racketeering; conspiring to commit murder in aid of racketeering; and conspiring to commit assault with a dangerous weapon in aid of racketeering.
“Nothing can erase the pain and sorrow caused by Flores’ vicious, unrepentant, criminal behavior,” said U.S. Attorney Haag. “I hope that the life sentence imposed against him brings some measure of relief to Flores’ victims and their families and that they will at least feel a sense of justice. I am extraordinarily proud of the professionalism and bravery demonstrated by the men and women of law enforcement in this case. They are true heroes and we are especially thankful for their service and commitment to the pursuit of justice.”
“Today’s sentence assures that no one else will risk being killed or maimed by an individual who has shown no regard for our laws or human life,” said Acting Special Agent in Charge King. “As we said when this defendant was arrested, ‘justice is patient and justice is resolute.’ Well today, justice was served. We owe a profound debt of gratitude to the prosecutors in this case, the FBI and the investigators with the police departments in South San Francisco and Daly City, all of whom worked tirelessly in collaboration with HSI to bring this outcome about.”
“The South San Francisco Police Department is very pleased with today’s sentencing of Victor Flores,” said Chief of Police Jeff Azzoparti. “Our ultimate goal as a police department is to provide a safe community for our residents to live in. Flores is an extremely violent criminal and today’s sentence removes Flores from our streets and brings us closer to a safer community. Our thoughts are with the victim’s families and while today’s sentence will not bring back their loved ones, hopefully it helps bring closure to the case knowing justice has been served. The South San Francisco Police Department is determined to rid our community of violent gang members and we will continue to utilize any and all resources available to us to meet that end. We would like to thank the Department of Homeland Security and the U.S. Attorney’s Office for their steadfast contributions in this case, which ultimately brought it to a successful resolution.”
“The conviction of Victor Flores for murder and for his attempted murder of three Department of Homeland Security agents represents a significant victory for the rule of law and for the agents and officers who put their lives on the line every day to enforce those laws,” said Special Agent in Charge Johnson. “The severity of the sentencing demonstrates that our court system will not tolerate violent behavior towards law enforcement agents and those who engage daily in the pursuit of justice.”
Assistant U.S. Attorneys Acadia L. Senese, Stephen Meyer and Benjamin Tolkoff are prosecuting this case, with the assistance of paralegal Kevin Costello and legal technician Daniel Charlier-Smith. The sentence imposed on Flores is the culmination of a lengthy investigation initiated by the South San Francisco and Daly City Police Departments more than four years ago. In 2011, Homeland Security Investigations joined the investigation and the FBI investigated the attempted murder of the Homeland Security Investigations agents. In all, more than 19 defendants were charged and convicted in crimes related to the 500 Block/C Street Gang activity.
Gang Member Sentenced to Life for South San Francisco Murders, Attempted Murder of Federal Agents, and Racketeering ConspiracyRead the Press Release
SAN FRANCISCO – Victor Flores, a member of the 500 Block/C Street Gang of South San Francisco, was sentenced to life in prison announced United States Attorney Melinda Haag, Homeland Security Investigations Special Agent in Charge Tatum King, and FBI Special Agent in Charge, David J. Johnson.
Flores, 23, of Petaluma, Calif., was convicted after a three-month trial spanning from April through July of 2014 before the Honorable Susan Illston, U.S. District Judge. According to the evidence presented at trial, during the evening of December 22, 2010, Flores, along with fellow 500 Block/C Street gang member Joseph Ortiz, shot at seven victims who they perceived to be members of the rival Cypress Park Locos gang as the victims walked down Eighth Lane in South San Francisco. Gonzalo Avalos, Omar Cortez, and Hector Flores were killed while three of the others were wounded. In addition, on May 3, 2012, when special agents of the Los Angeles Special Response Team of Homeland Security Investigations tried to arrest Flores at his home in Petaluma, Flores shot at the agents with an AK-47-style assault rifle, emptying two full magazines of ammunition and wounding three agents before eventually surrendering to law enforcement.
The jury convicted Flores of: (1) the December 22, 2010, racketeering murders of Avalos, Cortez, and Flores; (2) the December 22, 2010, racketeering attempted murders of the other four victims on Eighth Lane; (3) the May 3, 2012, attempted murders of three federal agents; (4) using a firearm in furtherance of the December 22, 2010, and May 3, 2012, murders and attempted murders; (5) conspiring to conduct the affairs of the 500 Block/C Street Gang through a pattern of racketeering; (6) conspiring to commit murder in aid of racketeering; and (7) conspiring to commit assault with a dangerous weapon in aid of racketeering.
“Nothing can erase the pain and sorrow caused by Flores’ vicious, unrepentant, criminal behavior. I hope that the life sentence imposed against him brings some measure of relief to Flores’ victims and their families, and that they will at least feel a sense of justice,” U.S. Attorney Haag said. “I am extraordinarily proud of the professionalism and bravery demonstrated by the men and women of law enforcement in this case. They are true heroes and we are especially thankful for their service and commitment to the pursuit of justice.”
“Today’s sentence assures that no one else will risk being killed or maimed by an individual who has shown no regard for our laws or human life,” said Tatum King, Acting Special Agent in Charge for Homeland Security Investigations (HSI) San Francisco. “As we said when this defendant was arrested, ‘justice is patient and justice is resolute.’ Well today, justice was served. We owe a profound debt of gratitude to the prosecutors in this case, the FBI, and the investigators with the police departments in South San Francisco and Daly City, all of whom worked tirelessly in collaboration with HSI to bring this outcome about.”
“The South San Francisco Police Department is very pleased with today’s sentencing of Victor Flores,” said Chief of Police Jeff Azzoparti. “Our ultimate goal as a police department is to provide a safe community for our residents to live in. Flores is an extremely violent criminal and today’s sentence removes Flores from our streets and brings us closer to a safer community. Our thoughts are with the victim’s families, and while today’s sentence will not bring back their loved ones, hopefully it helps bring closure to the case knowing justice has been served. The South San Francisco Police Department is determined to rid our community of violent gang members and we will continue to utilize any and all resources available to us to meet that end. We would like to thank the Department of Homeland Security and the United States Attorney’s Office for their steadfast contributions in this case, which ultimately brought it to a successful resolution.”
“The conviction of Victor Flores for murder, and for his attempted murder of three Department of Homeland Security agents represents a significant victory for the rule of law and for the agents and officers who put their lives on the line every day to enforce those laws,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The severity of the sentencing demonstrates that our court system will not tolerate violent behavior towards law enforcement agents and those who engage daily in the pursuit of justice.”
Assistant United States Attorneys Acadia L. Senese, Stephen Meyer, and Benjamin Tolkoff are prosecuting this case, with the assistance of paralegal Kevin Costello and legal technician Daniel Charlier-Smith. The sentence imposed on Flores is the culmination of a lengthy investigation initiated by the South San Francisco and Daly City Police Departments more than four years ago. In 2011, Homeland Security Investigations joined the investigation and the Federal Bureau of Investigations investigated the attempted murder of the Homeland Security Investigations agents. In all, more than 19 defendants were charged and convicted in crimes related to the 500 Block/C Street Gang activity.
Former center township official sentencedRead the Press Release
INDIANAPOLIS - United States Attorney, Josh J. Minkler, announced today the sentencing of the former chief financial officer for Center Township in Indianapolis. Alan Mizen 59, Zionsville, was sentenced to 18 months imprisonment by U. S. District Judge Sarah Evans Barker after his conviction for theft of federal program funds.
"The citizens of Marion County deserve better from their public officials,” said Minkler. “I hope this sends a loud and strong message to anyone who abuses the public trust in Indiana. The U. S. Attorney’s Office will you hold you strictly accountable.”
Mizen served as the chief financial officer for Center Township. In June 2010, he set up an account with PNC Bank and deposited a check in the amount of $343,541.08 that was drawn from public funds. Mizen then used the computerized accounting system at the Center Township Trustee’s Office to create a false invoice indicating that he had written the check to the “Treasurer of State.”
Mizen then transferred the funds to various personal accounts that he maintained. From these personal accounts, Mizen used over $200,000 towards the purchase of a residence in Zionsville, the purchase of a Toyota Tacoma pickup truck, the funding of his child’s college education, personal vacations, the purchase a diamond necklace and diamond ring for $8,900 during a trip to the Cayman Islands and made other consumer purchases. Mizen used embezzled taxpayer funds to finance these personal expenditures from June 10, 2010, through July 2012.
Minkler stated that this case was the result of outstanding law enforcement work by the
Federal Bureau of Investigation and Indiana State Board of Accounts with the assistance of the Internal Revenue Service. All three agencies are partners in the U.S. Attorney=s Public Integrity Working Group, which was launched in April 2012, with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana.
We are glad that the citizens of Center Township are getting the funds that were taken from them by Mr. Mizen,” said Indiana State Board of Accounts State Examiner, Paul Joyce. “We all have the right to expect honest representation from our elected and/or appointed officials at all levels of government. I hope that those few public servants that decide to violate this trust will see that we, in conjunction with our state and federal partners, are prosecuting these officials and realize that this is not acceptable and we will hold them accountable.”
According to Senior Litigation Counsel Bradley A. Blackington, who prosecuted the case for the government, Mizen was ordered to pay $343,000 in restitution. This restitution will be paid in full from funds in the accounts maintained by Mizen that were frozen by the government as part of the investigation.
Former University Administrative Assistant Pleads Guilty to Embezzling over $300,000 from EmoryRead the Press Release
ATLANTA - Brenda Michael, who embezzled more than $300,000 from Emory University by using a fake PayPal account, has pleaded guilty to wire fraud.
“Michael brazenly abused her position with Emory University by misdirecting student payments to a personal account for more than a year,” said Acting U. S. Attorney John Horn. “Those funds were owed to the school, paid by students working on their college education.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Brenda Michael was employed as an administrative assistant with Emory University from 2007 through 2014. From 2012 to 2014, while enrolling students for certain classes and programs, she began directing students to make tuition and fee payments which were due to Emory University to a PayPal account. Unbeknownst to the students, the PayPal account where they sent funds was the defendant’s own personal account. She then spent the funds on personal expenses. In total, she fraudulently received more than $317,000 from her scheme.
Sentencing for Michael, 53, of Atlanta, Georgia, is scheduled for July 8th, 2015 at 10:00 a.m. before United States District Judge Willis B. Hunt.
This case is being investigated by the Federal Bureau of Investigation. Emory University has fully cooperated in this investigation.
Assistant United States Attorney Jamie L. Mickelson is prosecuting the case.
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.
Former Puerto Rico Police Officers Sentenced for Civil Rights and Obstruction of Justice Violations Related to Fatal BeatingRead the Press Release
Former Puerto Rico Police Officers Jimmy Rodriguez Vega and David Colon Martinez were sentenced today for civil rights and obstruction of justice violations related to the fatal beating of Jose Luis Irizarry Perez, 19, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office. Rodriguez Vega was sentenced to serve 33 months months in prison for violating Irizarry Perez’s civil rights by striking him with a police baton during the incident, and Colon Martinez was sentenced to serve 24 months for making false statements to a Special Agent of the Federal Bureau of Investigation (FBI) and to the federal grand jury during the federal civil rights investigation.
With the issuance of today’s sentences, all six former Puerto Rico police officers who pled guilty for their roles in the beating and obstruction of the subsequent civil rights investigation have been sentenced. According to documents filed in connection with the underlying guilty pleas, Rodriguez Vega and former Puerto Rico Police Sergeant Erick Rivera Nazario violated the constitutional rights of Irizarry Perez by striking him with their police batons while Colon Martinez physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008. As part of his guilty plea, Rodriguez Vega admitted that after Rivera Nazario struck Irizarry Perez, while he was restrained and not posing a threat to any officer, Rodriguez Vega swung his own police baton as if it were a baseball bat into the victim’s forehead. In conjunction with his guilty plea, Colon Martinez admitted that he falsely told the FBI and the grand jury that he did not see anyone else hit Irizarry Perez, whereas in truth he observed Rodriguez Vega and Rivera Nazario swing their batons into Irizarry Perez’s head and upper body, after which the victim collapsed to the ground.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release. During the three-year term, the defendants will be under federal supervision, and risk additional prison time should they violate any terms of their supervised release.
“The former police officers convicted for their roles in the fatal beating and obstruction of the subsequent investigation violated their sworn oaths to the young victim, his family, and the public at large,” said Principal Deputy Assistant Attorney General Gupta. “Unfortunately, egregious civil rights violations by a few individuals, such as in this case, damage the public’s trust in law enforcement. That’s why the department will steadfastly continue to investigate and prosecute these matters, but also work with law enforcement to rebuild that trust and ensure all individuals’ civil rights are protected under the law.”
“Today’s sentencing brings a measure of justice to the family of Jose Luis Irizarry Perez,” said U.S. Attorney Rodriguez-Vélez. “The U.S. Attorney’s Office reaffirms its commitment to vigorously prosecute those who abuse their power and official positions at the expense of constitutionally guaranteed civil rights.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.
Former Mayor of Manalapan, New Jersey, Sentenced to Five Years in Prison for Mortgage Fraud, Identity Theft and Obstruction of JusticeRead the Press Release
TRENTON, N.J. – The former mayor of Manalapan, New Jersey, was sentenced today to 60 months in prison for defrauding an investment client of $250,000 and submitting a falsified loan application in order to purchase farmland in Monmouth County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 37, was previously convicted by a federal jury on all 11 counts of an indictment charging him with wire fraud, an illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. Lucas was convicted following a two-week trial before U.S. District Judge Freda L. Wolfson, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached Bobby Janowski, who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Janowski, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Janowski that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Janowski that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’ out-of-state relative, Thomas Littlefield, without his knowledge or permission.
On Feb. 22, 2010, Lucas authorized the wiring of $250,000 from Janowski’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Littlefield’s name and Social Security number without Littlefield’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Littlefield concerning a transaction for the purchase of the Burke Farm property.
In addition to the prison term, Judge Wolfson sentenced Lucas to serve three years of supervised release and forfeit Burke Farm.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Richard M. Frankel; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Matthew Skahill in Camden and Rahul Agarwal in Newark, both of the U.S. Attorney’s Special Prosecutions Division.
Defense counsel: Mario F. Gallucci Esq., and Michael DeSantis Esq., of Staten Island, New York
Former Manatee County Probation Officer Convicted of Stolen Identity Tax Refund FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Marcus Lowe guilty of conspiracy to commit wire fraud, theft of government funds, and aggravated identity theft; wire fraud; theft of government funds; and aggravated identity theft. He faces a maximum penalty of 5 years for the conspiracy count, 20 years for the wire fraud count, 10 years on each of the two theft counts, to be followed by a mandatory consecutive term of at least two years in federal prison for the aggravated identity theft counts. His sentencing hearing has not yet been scheduled. Lowe was indicted on December 4, 2014.
According to evidence presented at trial, Lowe worked as a Manatee County Probation Officer at the Manatee County Jail in 2012. As a result of that job, he had access to the personal identifying information of numerous inmates. He provided that information to other co-conspirators who, in turn, used those identities to file false and fraudulent income tax returns with the IRS. The attempted loss to the government from the fraudulent tax returns charged in the indictment exceeded $74,000.
This case was investigated by Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Former Hampshire County loan officer convicted of bank fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kimberly Haslacker, 39, of Romney, West Virginia, was convicted of bank fraud in federal court today after she admitted to using her position as a bank loan officer to obtain fraudulent loans, United States Attorney William J. Ihlenfeld, II, announced.
Haslacker was formerly employed as a loan officer at The Bank of Romney. She used her position to submit false and fraudulent loan applications in her own name and in the names of friends and relatives. Using this scheme, she obtained nearly $170,000.00 in unlawful loan proceeds.
Haslacker pled guilty today to a criminal Information charging her with one count of “Bank Fraud.” She faces up to 30 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Former Deputy Executive Director of Port Authority and Former Deputy Chief of Staff in N.J. Governor’s Office IndictedRead the Press Release
Allegedly Misused Government Property to Punish Fort Lee Mayor for Not Endorsing Gov. Christie’s Re-election
Second Former Port Authority Official Pleads Guilty in Connection with His Role in Scheme
NEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey and a former member of Gov. Christopher J. Christie’s senior staff have been charged with a scheme to misuse Port Authority resources to facilitate and conceal the causing of traffic problems in Fort Lee, New Jersey, to punish the borough’s mayor for not endorsing the Governor’s re-election.
The charges were announced today by U.S. Attorney Paul J. Fishman, along with Inspector General Michael Nestor of the Port Authority, Office of Inspector General, and FBI Special Agent in Charge Richard M. Frankel, Newark Division.
William E. Baroni Jr., former deputy executive director of the Port Authority, and Bridget Anne Kelly, former deputy chief of staff to Gov. Christie, were each charged by a federal grand jury in a nine-count indictment unsealed today. David Wildstein, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to a separate information charging him with two counts of conspiracy for his role in the scheme.
“Public officials must use government resources for proper government purposes,” U.S. Attorney Fishman said. “The indictment alleges, and Wildstein admitted, that the three defendants used Port Authority resources to exact political retribution against a public official who would not endorse the Governor for re-election, and concocted and promoted a bogus cover story to execute their plan and to cover their tracks.”
“William Baroni, Bridget Anne Kelly, and David Wildstein were held to a high standard of conduct due to the power they were entrusted with by the public,” Special Agent in Charge Frankel said. “These individuals breached that trust and as a consequence should be held accountable.”
“These high level government officials misused the Port Authority, its employees, and their public positions for political purposes with total disregard of the negative consequences it would have on the public and Port Authority,” Inspector General Nestor said. “This case should serve as a wake-up call and warning to those public servants who might consider abusing their official positions for their personal benefit, or the benefit of others.”
Baroni and Kelly are each charged with conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. All of the charges relate to the defendants’ alleged scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes, located in Fort Lee, to the upper level of the George Washington Bridge, and the toll booths servicing those lanes. It is alleged this was done to punish Mayor Sokolich for not endorsing Gov. Christie’s re-election bid. Wildstein pleaded guilty to conspiring to misuse the property of an organization receiving federal benefits and conspiring to injure and oppress certain individuals’ civil rights in connection with his role in causing traffic problems to punish Mayor Sokolich.
According to documents filed in this case and statements made in court:
In August 2013, after Kelly confirmed that Mayor Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.
From the morning of Sept. 9, 2013, to Sept. 13, 2013, the conspirators allegedly caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, the conspirators caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes and for residents, whose streets were choked with traffic.
The conspirators allegedly agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety. On Sept. 9, 2013, after Baroni received an email that Mayor Sokolich had called about an urgent matter of public safety, Wildstein sent an email to Baroni reiterating that Baroni should maintain “radio silence” toward the mayor. When Kelly was made aware of Mayor Sokolich’s communication regarding an urgent matter of public safety, she thanked Wildstein for confirming that Baroni had maintained “[r]adio silence” toward Mayor Sokolich. As alleged in the indictment, on Sept. 12, 2013, Baroni instructed a Port Authority employee through coded language that the employee should not contact Mayor Sokolich.
The conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.
On Nov. 25, 2013, with Kelly’s and Wildstein’s knowledge, Baroni provided false and misleading testimony about the lane and toll booth reductions to the N.J. Assembly Transportation, Public Works, and Independent Authorities Committee. Baroni knowingly and intentionally made misleading statements and false representations, including: (1) communications between members of the Port Authority Police Department and Wildstein triggered the lane and toll booth reductions; (2) the lane and toll booth reductions were part of a one-week traffic study; and (3) the failure to communicate with Fort Lee and the executive director of the Port Authority was simply the result of communication breakdowns at the Port Authority.
On the count of conspiracy to misuse property of an organization receiving federal benefits, the defendants and Wildstein each face a maximum potential penalty of five years in prison and a fine of $250,000. On the count of misusing property of an organization receiving federal benefits, the defendants each face a maximum potential penalty of 10 years in prison and a fine of $250,000. On each of the wire fraud conspiracy and wire fraud counts, the defendants face a maximum potential penalty of 20 years in prison and a fine of $250,000 per count. On the count of conspiring to injure and oppress certain individuals’ civil rights, the defendants and Wildstein each face a maximum potential penalty of 10 years in prison and a fine of $250,000. On the count of acting under color of law to deprive certain individuals of their civil rights, the defendants face a maximum potential penalty of one year in prison and a fine of $250,000.
U.S. Attorney Fishman credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Frankel; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s charges and guilty plea.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division, and Assistant U.S. Attorneys Paul Murphy and David W. Feder of the Criminal Division.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
William E. Baroni: Michael Baldassare Esq., Newark
Bridget Anne Kelly: Michael Critchley Sr. Esq., Roseland, New Jersey
David Wildstein: Alan L. Zegas Esq., Chatham, New Jersey
Former DISD Employee and Co-Conspirator Sentenced for Roles in Mail Fraud ConspiracyRead the Press Release
DALLAS — A former employee with the Dallas Independent School District (DISD) and her co-conspirator, who each pleaded guilty to one count of conspiracy to commit mail fraud, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Maricella Reed, 41, who was employed by the DISD as a data specialist in the worker’s compensation section of the district’s Risk Management Department, was sentenced in March by U.S. District Judge Sidney A. Fitzwater to 24 months in federal prison.
Today, Judge Fitzwater sentenced Reed’s co-conspirator, Adrian Bevelle, 32, to 39 months in federal prison. They were ordered to pay, jointly and severally, more than $161,000 in restitution. Reed is currently serving her sentence; Bevelle must surrender to the Bureau of Prisons on June 16, 2015.
According to documents filed in the case, from May 2009 to May 2011, Reed used her position to cause unauthorized payments be issued to Bevelle. Bevelle was not a DISD employee nor was he a worker’s compensation claimant; he was not entitled to any benefits from the DISD worker’s compensation program.
Reed altered information sent to Accounts Payable, substituting Bevelle’s name in place of legitimate claimants and adding Bevelle’s name and payment amounts to the list of legitimate claimants. Reed also created and submitted payment voucher forms for Bevelle in various amounts. Based on the information Reed provided, Accounts Payable issued checks to Bevelle and mailed the checks to him at various addresses in Dallas and Irving. Bevelle received, endorsed and cashed the checks at various locations.
The U.S. Postal Inspection Service investigated. Special Assistant U.S. Attorneys Dan Gividen and Michelle Allen-McCoy prosecuted.
Felon Impersonates Federal Agent while Armed with GunRead the Press Release
ATLANTA - Daniel M. Harbison has been arraigned on federal charges of being a felon in possession of a firearm while impersonating a DEA agent after he allegedly performed a traffic stop of an off-duty Doraville police officer.
“Posing as a federal agent creates a genuine safety risk for everyone involved, as well as bystanders, especially when a firearm is present,” said Acting U.S. Attorney John A. Horn. “The event is deeply unsettling to the victim and threatens to undermine legitimate police encounters that take place every day.”
Daniel R. Salter, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division said of the case, “When Mr. Harbison pretended to be a DEA agent, he undermined the hard work and dedication of all DEA agents and the other dedicated law enforcement officers who legitimately earned their badges. His actions were exposed because of the hard work conducted by the Doraville Police Department, the Federal Bureau of Investigation’s Atlanta office and DEA. This defendant will now have to pay the price for the crimes he committed.”
“Doraville Police's ability to rapidly react to the DEA impersonator landed him where he needs to be, behind bars. Had he not stopped our officer, who knows what damage he could have done to citizens? We are thankful for both the local and Federal cooperation that will insure Harbison's activity will be fully prosecuted. It is still unknown how many victims remain, but we can say there won't be more,” said John King, Chief of Police, Doraville Police Department.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In the spring of 2015, Harbison began impersonating a Drug Enforcement Administration (“DEA”) officer. Specifically, on April 3, 2015, in Doraville, Georgia, Harbison conducted a traffic stop of a Chevrolet Suburban by activating light-emitting diode (“LED”) lights on his vehicle similar to those of a law-enforcement vehicle, except the lights were green and possibly white instead of blue and white. Unbeknownst to Harbison, the Chevrolet Suburban was being driven by an off-duty Corporal with the Doraville Police Department. During the unauthorized traffic stop, Harbison wore a T-shirt printed with the letters “DEA,” carried what appeared to be a .45 caliber handgun in a thigh holster, and possessed an identification card purportedly issued by the DEA. The Doraville Corporal also saw that Harbison possessed a realistic gold and blue badge embossed with the letters “US.”
The Doraville Corporal told Harbison that he was a Doraville Police Officer and asked Harbison why his LED lights were green and white. The indictment alleges that in response to the question, Harbison replied that his LED lights were green and white because he was a federal officer. The Doraville Corporal then stated that other police officers were in route to check the validity of Harbison’s law enforcement credentials – whereupon Harbison returned to his car and fled the scene.
Further investigation led Doraville and Dunwoody Police Officers to Harbison’s residence and ultimately, officers arrested him. From Harbison’s residence, police officers recovered several items, including: (a) a Springfield .45 caliber handgun, (b) a DEA T-shirt, (c) LED lights, (d) an identification card purportedly issued by the DEA, and (e) a gold and blue badge embossed with the letters “US.” Harbison has previously been convicted of a felony and as a result, could not legally possess the gun.
On April 23, 2015, a grand jury charged Harbison, 40, of Dunwoody, Georgia, with being a felon in possession of a firearm.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Doraville Police Department, and Drug Enforcement Administration.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin E. Sanders are prosecuting the case.
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/gan/.
Federal Indictment Charges South Carolina Man with Sex Trafficking of A MinorRead the Press Release
CHARLOTTE, N.C. – A South Carolina man charged with sex trafficking of a minor was arrested yesterday in Columbia, S.C., announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. On April 22, 2015, a federal grand jury returned the two-count criminal indictment against Martin Allen Meggett, 27, of West Columbia, S.C.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Sheriff Bruce Bryant of the York County Sheriff’s Office in South Carolina join Acting U.S. Attorney Rose in making today’s announcement.
The indictment alleges that on or about September 9, 2014 and September 10, 2014, in Mecklenburg County, Meggett knowingly harbored, transported, provided and obtained by any means a person he knew was under 18 for the purpose of engaging in a commercial sex act. The indictment also alleges that Meggett transported the minor across state lines for the purposes of prostitution.
Following his arrest, Meggett had his initial appearance in federal court in Columbia where he remains in federal custody. He will be transferred to the Western District of North Carolina to appear before a U.S. Magistrate Judge when the court schedules his arraignment and detention hearings.
The penalty for each count is a mandatory minimum of 10 years and a maximum of life in prison. The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation of the case was jointly handled by the FBI and the York County Sheriff’s Office. The prosecution of the case is handled by Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s office in Charlotte.
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 U.S. 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.
Federal Court Sentences Former Elementary School After-School Coordinator on Charge of Production of Child PornographyRead the Press Release
DAVENPORT, IA- On May 1, 2015, Ian Dishon David Isabel, age 30, formerly of Davenport, Iowa, was sentenced by United States District Court Judge James E. Gritzner to 360 months in prison, after pleading guilty to production of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Isabel was also ordered to serve 10 years of supervised release following his term of imprisonment, and to pay $100 towards the Crime Victims Fund. Isabel will also be required to register as a sex offender.
On April 2, 2014, a custodian at Hayes Elementary School discovered what was later determined to be a hidden camera in the girls’ bathroom. The school principal and the Davenport Police Department were notified of the discovery. Isabel was the coordinator of the Stepping Stones after-school program at Hayes Elementary, and was working during the time the custodian found the hidden device. A search by a Davenport police detective found additional hidden devices in the same bathroom. Isabel became aware of the investigation, and fled from the school, claiming illness. The United States Secret Service, Cyber-Crimes Unit, also became involved in the investigation. Items were seized from a subsequent search of Isabel’s residence and a storage unit. Isabel fled and was later arrested on April 11th at a state park in Adams County, Illinois. Additional items were seized from Isabel’s vehicle. A subsequent forensic examination of the computer equipment and storage devices seized found over 100 separate images of children from Hayes Elementary captured during a time period of December 29, 2013 to April 2, 2014. Images found also showed a subject identifiable as Isabel placing the hidden cameras in the bathrooms.
This case was investigated by the United States Secret Service Cyber-Crimes Task Force, the Davenport, Iowa, Police Department and the Adams County, Illinois Conservation Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Entrepreneur Sentenced, Ordered to Forfeit $650,000 for Distributing Anabolic Steroids as Dietary SupplementsRead the Press Release
Memphis, TN – Joseph De Melo, Sr., a 59-year-old resident of New Orleans, LA, was sentenced yesterday to 15 months in federal prison for illicitly distributing anabolic steroids and intentionally misbranding a dietary supplement that secretly contained erectile dysfunction drugs.
De Melo owned Rezultz Distribution LLC, a supplement retail store located in Carrollton, Texas. He used the establishment to sell purported dietary supplements throughout the United States, including the Western District of Tennessee.
In September 2012, De Melo began conspiring with individuals to distribute pills of products containing anabolic steroids, which are Schedule III controlled substances. By the time De Mello’s illegal endeavors ended in September 2013, approximately 40,000 pills had been distributed nationwide.
Over the aforementioned time period, De Melo also distributed a purported dietary supplement called "Vertical," which contained unlisted erectile dysfunction drugs; false and misleading ingredients were listed on the drug’s labeling.
De Melo managed to obtain over $650,000 in proceeds from his scheme, which he deposited into various financial accounts. In addition to his sentence, De Melo has agreed to forfeit the proceeds made from his illicit pill distribution.
De Melo was sentenced by U.S. District Judge S. Thomas Anderson. There is no parole offered in the federal prison system.
The case was investigated by the Food and Drug Administration Office of Criminal Investigation. Assistant U.S. Attorneys Tony R. Arvin, Christopher E. Cotten, and Damon K. Griffin represented the government in this case.
Eight Persons Charged with Robbing Metro Drug Dealers; One Charged with Murder of WitnessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GREGORY DENSON, 52, COREY DENSON, 31, CARL SINGLETON, 30, JOE LEE MILLER, 30, QUINCY JYNES, 27, BRIDGETT MILES, 44, ESCARLITA CARMOUCHE, 48, and ANNETTE ROBINSON, 37, all of New Orleans, were charged today in a fourteen-count Superseding Indictment. All defendants were charged with Conspiracy to violate the Hobbs Act, which prohibits interference with interstate commerce through violence. Defendants DENSON, COREY DENSON, MILLER, JYNES and SINGLETON are also charged with various robberies and weapons offenses. DENSON is charged with the murder of an individual to stop that individual from providing information to law enforcement authorities about his (DENSON’S) activities. MILLER and JYNES are charged with helping to dispose of the body.
COUNT
CHARGE
DEFENDANTS
PUNISHMENT RANGE
1
18 U.S.C.1951-Conspiracy to Commit Hobbs Act Robbery
All
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
2
18 U.S.C.1951-Hobbs Act Robbery
Denson, Miller, Jynes
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
3
18 U.S.C. 924(c)-Brandishing a Firearm during and in relation to a crime of violence
Denson, Miller, Jynes
NMT 7 Yrs Consecutive, NMT $250,000 Fine, NMT 2 Yrs Sup. Rel.
4
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Miller
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
5
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Jynes
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
6
18 U.S.C. 924(c)-Brandishing a Firearm during and in relation to a crime of violence
Denson, Corey, Denson
NMT 7 Yrs Consecutive, NMT $250,000 Fine, NMT 2 Yrs Sup. Rel. As to Deft Jynes, a second conviction results in a consecutive 25 yr sentence
7
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Corey, Denson
NMT 10 Years, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
8
18 U.S.C.1951-Hobbs Act Robbery
Denson, Miller, Jynes, Singleton, Corey, Denson
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
9
18 U.S.C. 924(c)-Discharging a Firearm during and in relation to a crime of violence
Denson, Miller, Jynes, Corey, Denson, Singleton
NMT 10 Yrs Consecutive, NMT $250,000 Fine, NMT 3Yrs Sup. Rel. As to Defts Denson and Miller, a 2ndconviction results in a consecutive 25 yr sentence. As to Deft Jynes, a 3rd conviction results in a 2nd consecutive 25 yr sentence.
10
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Miller
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
11
18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm
Jynes
NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
12
18 U.S.C. 1512-Murder of a Federal Witness
Denson
NMT Life Imprisonment or Death, NMT $250,000 Fine, NMT 5 Years Sup. Rel.
13
18 U.S.C. 3-Accessory After the Fact
Jynes, Miller
NMT 15 Years, NMT $250,000 Fine, NMT 3 Yrs. Sup.Rel.
14
18 U.S.C. 1512(c)(2)-Obstructing an Investigation
Jynes, Miller
NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.
U.S. Attorney Polite reiterated that the charges in the Indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Mark A. Miller and Michael M. Simpson are in charge of the prosecution.
Gregory Denson, et al Superseding Indictment
East Saint Louis Man Pleads Guilty to Firearm OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Kasmiel Samuel Sumrall, 28, of East Saint Louis, pled guilty to the charge of Unlawful Possession of a Firearm by a Convicted Felon. The charge carries maximum penalties of ten years in prison, a $250,000 fine, and three years of supervised release. Sumrall is detained (held without bond) pending sentencing set for August 7, 2015.
Court records indicate that Sumrall admitted that on October 6, 2014, in East Saint Louis, he possessed a 9-mm., caliber Ruger semi-automatic pistol handgun, its magazine, and ten rounds of 9-mm., caliber ammunition, after he had previously been convicted on October 30, 2007, of the felony offense of Aggravated Fleeing or Attempting to Elude Police.
The case was investigated by the East Saint Louis Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Liam Coonan.
Detroit man and Fairmont resident sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Caraun Lynn-Montez Key, 23, of Detroit, Michigan, and Michael Coy Wollard, 29, of Fairmont, West Virginia, were each sentenced in federal court today for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Wollard was sentenced today to 41 months in prison after he was discovered in Taylor County, West Virginia in September 2014 in possession of a medication containing pseudoephedrine, an ingredient commonly used to manufacture methamphetamine. He pled guilty in January 2015 to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine,” following a Three Rivers Drug Task Force investigation. He will receive credit for time served since October 2014.
Key was sentenced today to 30 months in prison after he was discovered in possession of a significant quantity of oxycodone in Monongalia County, West Virginia in September 2014. He pled guilty in January 2015 to one count of “Aiding and Abetting the Possession with Intent to Distribute Oxycodone,” following a Mon Valley Drug Task Force investigation. He will receive credit for time served since September 2014.
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
DeQuincy man pleads guilty to counterfeiting $100 billsRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a DeQuincy man pleaded guilty to making $100 counterfeit bills at a casino hotel.
Deldrick Shykil Fowler, 22, of DeQuincy, La., entered a conditional guilty plea on Thursday before U.S. Magistrate Judge Kathleen Kay, to one count of counterfeiting obligations to the United States. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to evidence presented at the guilty plea, surveillance equipment was used to observe Fowler on August 12, 2014, at the Isle of Capri Casino in Lake Charles producing counterfeit $100 bills in a hotel room. Law enforcement seized two counterfeit $100 bills, 16 uncut sheets of $100 bills, and 10 uncut sheets of $100 bills printed on only one side.
Fowler faces up to 20 years in prison, five years of supervised release, and a $250,000 fine. A sentencing date of August 6, 2015 was set.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorneys Robert Abendroth and Howard Parker are prosecuting the case.
Dade City Gang Member Sentenced to 10 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Chanin Terrell Richardson (29, Dade City) to 10 years in federal prison for possessing with the intent to distribute more than 28 grams of cocaine base and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on August 7, 2014.
According to court documents, law enforcement officers executed a search warrant at Richardson’s Dade City residence after undercover officers had repeatedly purchased cocaine base from the home. Agents found Richardson in possession of more than 40 grams of cocaine base, powder cocaine, prescription pills, heroin, marijuana, a semi-automatic pistol, a short-barreled shotgun, and multiple rounds of ammunition. Richardson has previously been convicted of several felony offenses and is a documented member of the “Dade City Boys” criminal organization.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Chalmette Man Indicted for Violations of the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAMIEN WILSON, age 35, of Chalmette, was charged in a three-count Indictment for violations of the Federal Controlled Substances Act, which was recently unsealed.
According to the Indictment, WILSON conspired to possess with the intent to distribute and to distribute a kilogram or more of heroin and distributed heroin on two different occasions.
If convicted, WILSON faces a mandatory minimum sentence of ten years up to life imprisonment, followed by at least five years of supervised release, and a fine of up to $10,000,000.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Damien Wilson Indictment
CCTV America Interviews Deputy Director on Foreign Terrorist FightersRead the Press Release
On April 20th, CCTV America correspondent Jessica Stone interviewed Interpol Washington Deputy Director Geoff Shank on the U.S. National Central Bureau's efforts to interdict foreign terrorist fighters through Interpol's Foreign Terrorist Fighter (FTF) program. The program, announced in September 2014, leverages the unique resources Interpol utilizes to combat transnational crime, including its secure, encrypted communications system, its criminal and analytical databases and its system of advisory notices.
Watch the full interview at http://www.cctv-america.com/2015/04/20/international-police-work-to-stop-foreign-fighters for more details and success stories of the program and for an insider's look at the Interpol Washington office.
Buffalo Man Charged with Producing and Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that David Young, 28, of Buffalo, NY, was arrested and charged by criminal complaint with production and possession of child pornography. The production charge carries a minimum sentence of 15 years and a maximum of 30 years in prison and the possession charge carries a maximum penalty of 20 years in prison along with a $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that a West Seneca Schools resource officer obtained information that the defendant had images of child pornography on cellular telephone. The resource officer notified Cheektowaga Police who began an investigation. The investigation resulted in law enforcement officers locating images of child pornography, some that were produced by the defendant.
Young is being held pending a detention hearing scheduled for May 4, 2015 at 3:00 p.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, Cheektowaga Police Department, under the direction of Chief David Zack and the West Seneca Police Department, under the direction of Chief Daniel Denz.
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.
Buffalo Man Arrested for Drug PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that David Medina, 49, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute heroin. The charge carries a maximum penalty of 20 years and a $1,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the complaint, David Medina was arrested in the City of Buffalo, and was in possession of approximately 100 grams of heroin that was to be distributed.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Medina is being held pending a status conference scheduled for May 13, 2015 at 10:00 a.m.
The criminal complaint is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
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.
Bookkeeper Pleads Guilty to Embezzling from Non-Profit OrganizationsRead the Press Release
Baltimore, Maryland - Sharon Harrison, age 48, of Rosedale, Maryland, pleaded guilty today to embezzling more than $1.3 million from four non-profit organizations for which she worked and which received federal funding.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.
“Non-profit organizations that receive federal funds have a legal duty to use them for the intended purpose,” said U.S. Attorney Rod J. Rosenstein. “Sharon Harrison helped herself to federal funds intended to provide services for disadvantaged children and homeless families in Baltimore.”
According to her plea agreement Sharon Harrison was a bookkeeper or fiscal manager for the following non-profit groups, all of which received federal funds to assist in their mission:
Health, Education, Advocacy, Life Inc. (HEAL) from 2005 to March 2011;
Between Friends, Inc. from September 2008 to November 2011;
Jobs, Housing & Recovery, Inc. (JHR) from May 20, 2013 to February 12, 2014;
and Reservoir Hill Improvement Council (RHIC) from December 2012 to February 2014.HEAL and JHR provided services for the homeless in Baltimore City. Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families. RHIC assessed community needs, developed and implemented solutions on issues common to the Reservoir Hill Community in Baltimore.
Over the course of her employment at HEAL, RHIC, JHR and Between Friends, Harrison embezzled over $1.3 million. Specifically, Harrison admitted that she embezzled: $226,888.34 from HEAL; $784,781.17 from Between Friends; $161,750.14 from JHR; and $133,178.04 from RHIC. As part of her plea agreement, Sharon Harrison agreed to the entry of a restitution order for the full amount of the victim’s losses, $1,306,797.70.
Sharon Harrison faces a maximum sentence of 10 years in prison for federal program theft. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 30, 2015, at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
BNP Paribas Sentenced for Conspiring to Violate the International Emergency Economic Powers Act and the Trading with the Enemy ActRead the Press Release
BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, was sentenced today for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian and Cuban entities subject to U.S. economic sanctions. BNPP was sentenced to a five-year term of probation, and ordered to forfeit $8,833,600,000 to the United States and to pay a $140,000,000 fine. Today’s sentencing is the first time a financial institution has been convicted and sentenced for violations of U.S. economic sanctions, and the total financial penalty—including the forfeiture and criminal fine—is the largest financial penalty ever imposed in a criminal case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement. U.S. District Court Judge Lorna G. Schofield of the Southern District of New York imposed the sentence.
“BNP Paribas flouted U.S. sanctions laws to an unprecedented extreme, concealed its tracks, and then chose not to fully cooperate with U.S. law enforcement, leading to a criminal guilty plea and nearly $9 billion penalty” said Assistant Attorney General Caldwell. “BNPP deliberately disregarded the law and provided rogue nations, and Sudan in particular, with vital access to the global financial system, helping that country’s lawless government to harbor and support terrorists and to persecute its own people. Today’s sentence demonstrates that financial institutions will be punished severely but appropriately for violating sanctions laws and risking our national security interests.”
“BNPP, the world's fourth largest bank, has now been sentenced to pay a record penalty of almost $9 billion for sanctions violations that unlawfully opened the U.S. financial markets to Sudan, Iran, and Cuba,” said U.S. Attorney Bharara. “BNPP provided access to billions of dollars to these sanctioned countries, and did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities. The sentence imposed today is appropriate for BNPP’s years-long and wide-ranging criminal conduct.”
“The sentencing of BNP Paribas Bank and the $9 Billion monetary penalty should sound the alarm to international financial institutions thinking of perpetrating these crimes,” said Chief Weber. “The ability of IRS-CI and our partners to expose blatant violations of U.S. embargos and sanctions has changed the way financial matters are handled worldwide. We will continue to use our financial expertise to uncover these types of violations, as well as methodical and deliberate actions to conceal prohibited transactions from U.S. regulators and law enforcement.”
In connection with its guilty plea on July 9, 2014, BNPP admitted that from at least 2004 through 2012, it knowingly and willfully moved over $8.8 billion through the U.S. financial system on behalf of Sudanese, Iranian and Cuban sanctioned entities, in violation of U.S. economic sanctions. The majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”
Similarly, from October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.74 billion on behalf of Cuban sanctioned entities. BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal.”
BNPP also engaged in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012—nearly two years after the bank had commenced an internal investigation into its sanctions compliance and pledged to cooperate with the government. The illicit Iranian transactions included transactions for a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company and an Iranian oil company.
In accepting BNPP’s guilty plea, Judge Schofield stated that BNPP’s actions “not only flouted U.S. foreign policy but also provided support to governments that threaten both our regional and national security and, in the case of Sudan, a government that has committed flagrant human rights abuses and has known links to terrorism.” Judge Schofield further stated that the forfeiture of over $8 billion will “surely have a deterrent effect on others that may be tempted to engage in similar conduct, all of whom should be aware that no financial institution is immune from the rule of law.”
The Justice Department is exploring ways to use the forfeited funds to compensate individuals who may have been harmed by the sanctioned regimes of Sudan, Iran and Cuba. As a preliminary step in this process, the Justice Department is inviting such individuals or their representatives to provide information describing the nature and value of the harm they suffered. Beginning today (May 1, 2015), interested persons can learn more about this process and submit their information at www.usvbnpp.com, or call 888-272-5632 (within North America) or 317-324-0382 (internationally).
In addition to its federal criminal conviction, BNPP pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records. BNPP also agreed to a cease and desist order and to pay a civil monetary penalty of $508 million to the Board of Governors of the Federal Reserve System. The New York State Department of Financial Services announced that BNPP agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years a monitorship put in place in 2013; and pay a monetary penalty of $2.24 billion. In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it made in connection with its resolution of these related state and regulatory matters. The Treasury Department’s Office of Foreign Assets Control also levied a fine of $963 million, which will be satisfied by payments made to the Justice Department.
This case was investigated by the IRS-CI’s Washington Field Office and FBI’s New York Field Office. This case was prosecuted by Deputy Chief Craig Timm and Trial Attorney Jennifer E. Ambuehl of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York.
The New York County District Attorney’s Office conducted its own investigation alongside the Justice Department in this case. The Justice Department expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.
BNP Paribas Sentenced for Conspiring to Violate the International Emergency Economic Powers Act and the Trading with the Enemy ActRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, announced that BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, France was sentenced today for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian and Cuban entities subject to U.S. economic sanctions. BNP Paribas was sentenced to a five-year term of probation, and ordered to forfeit $8,833,600,000 to the United States and pay a fine of $140,000,000. Today’s sentencing is the first time a financial institution has been convicted and sentenced based on its violations of U.S. economic sanctions.
BNPP’s sentencing follows its plea of guilty on July 9, 2014, to conspiring to violate U.S. sanctions laws. As part of its plea, BNPP admitted to moving more than $8.8 billion through the U.S. financial system on behalf of sanctioned entities, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. government as being cut off from the U.S. financial system. The total financial penalty imposed on BNPP – $8,973,600,000, including the forfeiture and criminal fine – is the largest financial penalty ever imposed in a criminal case.
U.S. Attorney Preet Bharara said: “BNPP, the world's fourth largest bank, has now been sentenced to pay a record penalty of almost $9 billion for sanctions violations that unlawfully opened the U.S. financial markets to Sudan, Iran, and Cuba. BNPP provided access to billions of dollars to these sanctioned countries, and did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities. The sentence imposed today is appropriate for BNPP’s years-long and wide-ranging criminal conduct.”
Assistant Attorney General Leslie R. Caldwell said: “BNP Paribas flouted U.S. sanctions laws to an unprecedented extreme, concealed its tracks, and then chose not to fully cooperate with U.S. law enforcement, leading to a criminal guilty plea and nearly $9 billion penalty. BNPP deliberately disregarded the law and provided rogue nations, and Sudan in particular, with vital access to the global financial system, helping that country’s lawless government to harbor and support terrorists and to persecute its own people. Today’s sentence demonstrates that financial institutions will be punished severely but appropriately for violating sanctions laws and risking our national security interests.”
Today’s sentencing is part of a resolution announced in July 2014 in which the New York County District Attorney’s Office also announced that BNPP pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records. In addition, the Board of Governors of the Federal Reserve System announced that BNPP agreed to a cease and desist order, to take certain remedial steps to ensure its compliance with U.S. law in its ongoing operations and to pay a civil monetary penalty of $508 million. The New York State Department of Financial Services (DFS) announced that BNPP agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years the term of a monitorship put in place in 2013 and pay a monetary penalty to DFS of $2.24 billion. In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it made in connection with its resolution of these related state and regulatory matters. The Treasury Department’s Office of Foreign Assets Control also levied a fine of $963 million, which will be satisfied by payments made to the Department of Justice.
Based on today’s sentencing proceedings and prior filings in the case, BNPP has admitted and acknowledged that from at least 2004 through 2012, it knowingly and willfully moved over $8.8 billion through the U.S. financial system on behalf of Sudanese, Iranian and Cuban sanctioned entities, in violation of U.S. economic sanctions. The majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”
One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States. As early as August 2005, a senior compliance officer at BNPP warned several legal, business and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars… This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”
Similarly, BNPP provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages. From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.74 billion on behalf of Cuban sanctioned entities. In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal.” In 2006, after certain Cuban payments were blocked when they reached the United States, the bank decided to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.
BNPP also engaged in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the government. The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company and an Iranian oil company.
U.S. District Judge Schofield recognized, in her acceptance of BNPP’s guilty plea, that BNPP’s actions “not only flouted U.S. foreign policy but also provided support to governments that threaten both our regional and national security and, in the case of Sudan, a government that has committed flagrant human rights abuses and has known links to terrorism.” The forfeiture of over $8 billion will “surely have a deterrent effect on others that may be tempted to engage in similar conduct, all of whom should be aware that no financial institution is immune from the rule of law.”
The Justice Department is exploring ways to use the forfeited funds to compensate individuals harmed by the sanctioned regimes of Sudan, Iran, and Cuba. In an effort to better understand who may have been harmed by these regimes, the Justice Department is inviting individuals or their representatives to provide information describing the nature and value of the harm they suffered. Beginning today (May 1, 2015), interested persons can learn more about this process and submit their information at www.usvbnpp.com, or call 888-272-5632 (within North America) or 317-324-0382 (internationally).
In addition to its federal criminal conviction, BNPP pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records. BNPP also agreed to a cease and desist order and to pay a civil monetary penalty of $508 million to the Board of Governors of the Federal Reserve System. The New York State Department of Financial Services announced that BNPP agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years a monitorship put in place in 2013; and pay a monetary penalty of $2.24 billion. In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it made in connection with its resolution of these related state and regulatory matters. The Treasury Department’s Office of Foreign Assets Control also levied a fine of $963 million, which will be satisfied by payments made to the Justice Department.
This case is being prosecuted by the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York and the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS). Assistant U.S. Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo, and Micah W.J. Smith of the Southern District of New York and Deputy Chief Craig Timm and Trial Attorney Jennifer E. Ambuehl of AFMLS are in charge of the prosecution.
The New York County District Attorney’s Office also conducted its own investigation alongside the Department of Justice on this investigation. Mr. Bharara and Ms. Caldwell expressed their gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter. They also thanked the Federal Bureau of Investigation’s New York Field Office and the Internal Revenue Service-Criminal Investigation’s Washington Field Division for their work on the investigation.
Alleged Leader of the Lorenzana Drug Trafficking Organization Extradited to the United StatesRead the Press Release
An alleged leader of an international drug trafficking organization based in Guatemala was extradited to the United States yesterday to face international narcotics trafficking charges in the District of Columbia, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Eliu Elixander Lorenzana-Cordon, 43, was arrested in Guatemala on Nov. 8, 2011, after being indicted for conspiracy to import cocaine into the United States, and has been detained since that time pending extradition. He arrived in the United States yesterday and was arraigned today before U.S. Magistrate Judge Alan Kay of the District of Columbia.
According to allegations contained in the indictment, Lorenzana-Cordon is a leader of an international drug trafficking organization that includes his father and several other family members. Between 1996 and 2012, the organization allegedly received and stored multi-ton quantities of cocaine from Colombia for later importation into Mexico and the United States.
These cocaine shipments, worth millions of dollars, were allegedly transported to El Salvador on “go-fast” boats, and then smuggled into Guatemala by land and air. The cocaine was then inventoried and stored for later export to Mexico and eventually the United States.
On April 27, 2010, the Department of Treasury’s Office of Foreign Asset Control designated Lorenzana-Cordon as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act due to his significant role in international narcotics trafficking and his ties to the Sinaloa Cartel.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Lorenzana-Cordon’s brother, Waldemar Lorenzana-Cordon, was extradited to the United States on Nov. 13, 2014, and is currently awaiting trial. Lorenzana-Cordon’s father, Waldemar Lorenzana-Lima, pleaded guilty on Aug. 18, 2014, to conspiracy to import over 450 kilograms of cocaine into the United States, and is currently awaiting sentencing. All three defendants were charged in the same indictment.
The investigation was led by the DEA’s 959/Bilateral Investigations Unit and Guatemala City Country Office, and was part of the Organized Crime Drug Enforcement Task Force. The case is being prosecuted by the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The department appreciates the assistance provided by the government of Guatemala.
10-Count Indictment Unsealed Charging Eight Individuals with Conspiracy to Distribute, Possession of Synthetic CannabinoidsRead the Press Release
SALT LAKE CITY – A federal indictment unsealed Thursday afternoon charges eight individuals with conspiracy to distribute XLR-11, a synthetic cannabinoid commonly known as spice; possession of spice with intent to distribute; and conspiracy to commit money laundering. The indictment was returned by a grand jury Wednesday afternoon.
Charged in the indictment are Issa Haig Babikyan, age 51, of Carlsbad, Calif.; Michael Suliman Haig Babikyan, age 25, of Murray; Fahad Ali Khalil, age 24, of Murray; Ammar Ibrahim Alobaidi, age 35, of Midvale; Yaser Saeed Majeed Al-Najjar, age 46, of Murray; Joseph Lara Paez, age 39, of Fresno, Calif.; Tiffany Nicole Velo, age 32, of Fresno; and Hanan Saeed, age 43, of Salt Lake City.
The case is being investigated by two FBI task forces, the Safe Streets Task Force and the Wasatch Range Task Force. Member agencies involved in the task forces are the FBI, Salt Lake City, West Valley City, West Jordan and Sandy City police departments; the Utah Highway Patrol, the Utah Department of Public Safety, the Utah Department of Corrections; and the Unified Police Department.
The first count of the indictment charges seven defendants with conspiracy to distribute spice from at least Jan. 31, 2015, through April 29, 2015. Counts two through nine charge various defendants in the case with possession of spice with intent to distribute. Count 10 of the indictment charges Khalil and Saeed with conspiracy to commit money laundering, alleging they conducted transactions involving the proceeds of a specified unlawful activity and that the transactions were designed to conceal and disguise the nature, location, source, ownership, and control of the proceeds of the unlawful activity.
Spice is a mixture of herbs and spices that is typically sprayed with a synthetic compound similar to THC, the psychoactive ingredients in marijuana, according to a DEA Drug Fact Sheet. However, spice is commonly more potent than organic marijuana and the dose can be irregular due to a lack of quality control in the manufacturing process. Spice is commonly purchased in; tobacco shops, various retail outlets, and over the Internet. It is often marketed as incense or “fake weed.” Purchasing over the Internet or from a smoke shop can be dangerous because it is not usually known where the products come from or what amount of chemical is on the organic material.
Issa Haig Babikyan and Michael Suliman Haig Babikyan were arrested Thursday in California and had initial appearances in federal court. Khalil, Alobaidi, Al-Najjar, Velo and Seed were arrested in Utah and will have initial appearances Friday at 1 p.m. in U.S. Magistrate Judge Brooke C. Wells’ courtroom. Paez remains a fugitive in California.
Several firearms, vehicles, and cash were seized during the execution of the arrest warrants Thursday. Approximately 2,000 pounds of spice were seized during a two-month period of the investigation.
The potential maximum penalty for each of the nine drug counts alleged in the indictment is 20 years and a $1 million fine. Conspiracy to commit money laundering carries a potential 20 year prison sentence. The fine for the money laundering count is up to $500,000 or two times the dollar amount of the property involved in the alleged money laundering transaction.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Thursday 30 April 2015
Yuba City Police Officer and Resident Indicted on Cocaine Conspiracy and Bribery ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Gursharan Phagura, 39, and Harminder Phagura, 35, both residents of Yuba City, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gursharan Phagura and Harminder are accused of conspiring to possess, with intent to distribute, cocaine, as well as accepting and facilitating bribes. The indictment alleges that Harminder Phagura used his authority as a police officer to gather sensitive information, which Gursharan Phagura transmitted to a third party, who was posing as a cocaine trafficker.
Gursharan Phagura is charged separately with possessing, with intent to distribute, cocaine in 2011.
Harminder Phagura and Gursharan Phagura were arrested on April 15, 2015. Harminder Phagura was released on a $100,000 bond. Gursharan Phagura is in pretrial custody.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The Federal Bureau of Investigation also provided resources to the investigation. The Yuba City Police Department has assisted in the investigation. Assistant United States Attorney Paul Hemesath is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Wolcott Man Sentenced to Prison for Participating in Two Criminal SchemesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL MONTEIRO, 36, of Wolcott, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 13 months of imprisonment, followed by three years of supervised release, for participating in two separate criminal conspiracies.
On March 20, 2013, MONTEIRO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. In pleading guilty to this charge, MONTEIRO admitted that participated in a scheme to conceal from the public the true origin of contributions that Roll-Your-Own (“RYO”) smoke shop owners were making to the Chris Donovan for Congress campaign during the 2012 election cycle. During the campaign, MONTEIRO agreed to serve as a conduit for a $2,500 campaign contribution by writing a check in that amount to the campaign and then accepting $2,500 in cash in return. MONTEIRO knew that the purpose of the contributions was to obtain a commitment from Chris Donovan, who at the time was also the Speaker of the Connecticut House of Representatives, to defeat legislation that would strip RYO cigarettes of their tax exempt status. He also understood that the conduit nature of the contribution would prevent the public from drawing a connection between the true source of the contributions and the ultimate failure of any harmful legislation. MONTEIRO further understood that the RYO smoke shop owners had made several additional contributions through other conduits, including his brother and an employee.
On May 21, 2013, MONTEIRO pleaded guilty to one count of conspiracy to commit bank fraud, wire fraud, and money laundering. In pleading guilty to this charge, MONTEIRO admitted that from May to September 2007, he helped recruit two straw borrowers to purchase a total of five houses from co-defendant Filippos Milios, the head of an extensive mortgage fraud conspiracy. MONTEIRO referred these borrowers to Milios knowing that they would not be making down payments on their purchases or living in them as primary residences. Milios used money obtained from the mortgages to pay private lenders. MONTEIRO collected approximately $15,000 in referral fees from Milios, and knew that the fees paid to him were not being disclosed to lenders. Lenders suffered a loss of approximately $783,000 as a result of the five fraudulent transactions in which MONTEIRO was a participant.
MONTEIRO was ordered to forfeit $15,000 and pay restitution in the amount of $783,000.
On January 6, 2015, Milios was sentenced to 97 months of imprisonment for orchestrating the mortgage fraud scheme that involved more than 50 properties and resulted in nearly $5.7 million in losses to lenders.
The conduit campaign contribution conspiracy was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Christopher M. Mattei. The mortgage fraud conspiracy was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
Wentzville Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JAMES STALEY pled guilty to charges involving his scheme to defraud investors by making false promises of high rates of return and minimal risk. With his plea, Staley admitted to defrauding sixteen investors/lenders by causing them to invest over $3.3 million, giving him commissions totaling over $570,000.
According to court documents, in 2007, James Staley operated Wealth Financial International. That same year, he became a sales agent for a Premium Financing Company located in California known as B & B Equity. As a sales agent, Staley found individuals to provide loans for life insurance policies. In many instances, several of these investor/lender’s funds were bundled together to provide financing to purchase one life insurance policy. Staley received a commission for each investor/lender that he found to contribute financing for the purchasing of the life insurance policies. B & B required the lender/investor to invest in the insurance policy for a fixed period of time, varying from 18 months to two years. During this period of time, Staley represented to clients of Wealth Financial that B & B Premium Financing Company would sell the bundled insurance policies on the open market with guaranteed returns. However, Staley was well aware that if B & B was unable to secure a buyer for the bundled insurance policies that his clients would lose all their monies invested in the Premium Financing product sold by B & B.
Staley, Wentzville, MO, pled guilty to four felony counts of wire fraud before United States District Judge E. Richard Webber. Sentencing has been set for July 29, 2015.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Michael Spurgeon, 46, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly manufacturing marijuana. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 2/10/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Gary Franklin, 46, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally receiving, possessing, concealing, selling, or disposing of stolen vehicles that had crossed state lines after being stolen. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 2/12/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Richard Maxson, 26, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally receiving, possessing, concealing, selling, or disposing of stolen vehicles that had crossed state lines after being stolen. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 2/12/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Tad Vandermark, 52, of Syracuse, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of production of child pornography. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has been set for 2/6/2014.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Paul Page, 49, of Indianapolis, Indiana, a defendant in the case US V Bales et al., was sentenced by District Judge Robert L. Miller Jr to 2 years’ probation and to pay $10,000 in fines after pleading guilty to the felony offense of scheming to commit wire fraud.According to documents filed in this case, Page devised a scheme to defraud a bank.When Page learned he needed to make a significant down payment to get a mortgage on a building he intended to buy and rent out to the State of Indiana, another person loaned him the money. Mr. Page promised to repay the loan out of the proceeds when he sold the building. Page knew that banks would require a disclosure of competing loans on a piece of property, and knew how to avoid disclosing this information to the bank. Page “spun” the ownership issue with the bank, and then signed false documents and false certifications.Page failed to inform the bank that a third party had loaned him the down payment in papers Page completed for the mortgage loan. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Thomas Touhey, 56, of Walkerton, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 20 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of unlawful transport of firearms.According to documents filed in this case, law enforcement was investigating complaints of drug trafficking from Touhey’s home as well as two active warrants for Touhey’s failure to register as a sex offender. Officers discovered marijuana and related paraphernalia.Officers also found a loaded shotgun on the premises. Touhey has a prior felony conviction for child molestation. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Webster Parish man sentenced to more than 15 years in prison for child pornography distributionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Minden man was sentenced to 188 months in prison for distributing child pornography.
Michael A. Webb, 26, of Minden, La., was sentenced on Wednesday by United States District Judge S. Maurice Hicks, Jr., on one count of distribution of child pornography. He was also sentenced to serve five years of supervised release. According to evidence presented at the January 21, 2015, guilty plea, Webb responded to a social network online profile for a 13-year-old girl. He sent the girl child pornography, sexually explicit images of himself and arranged to meet the girl in Springhill, La. The online profile for the girl was fake, and Webb actually was communicating with an undercover police officer. Webb was arrested on August 8, 2014 while at work.
The FBI, Webster Parish Sheriff’s Office and the Springhill Police Department investigated the case. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
U.S. Attorney Polite Appointed to AG’s Advisory CommitteeRead the Press Release
Today, Attorney General Loretta E. Lynch announced the appointment of Kenneth A. Polite, U.S. Attorney for the Eastern District of Louisiana, along with five other U.S. Attorneys, to the Attorney General’s Advisory Committee (AGAC).
Created in 1973, the AGAC represents the voice of the 93 U.S. Attorneys across the nation and reports to the Attorney General through the Deputy Attorney General. It provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management and operational issues, helping to shape policies to accomplish the Department’s core mission of serving justice.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “They help introduce new ideas, formulate innovative policies, and design fresh strategies. They foster collaboration across our U.S. Attorney’s Offices and with Main Justice. And, in all of their work, they seek to strengthen and improve law enforcement efforts at every level. As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
Two Sacramento Area Methamphetamine Trafficking Cases Indicted TodayRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today charging a total of six defendants with methamphetamine trafficking offenses, United States Attorney Benjamin B. Wagner announced.
In the first case, Jose Acosta, 34, Jorge Rios, 39, Jose Luis Aguilar, 49, Diego Velazquez, 29, and Feliciano Ochoa Reyes, 30, all Mexican nationals, were charged with conspiring to traffic methamphetamine and use of a communications facility (cellular telephone) in furtherance of a drug trafficking crime. According to court documents, between September 10, 2014, and April 16, 2015, the defendants were engaged in conspiracy to traffic methamphetamine in and around the Sacramento area. Docket # 2:15-cr-092 JAM
In the second case, Alex Velasquez Rangel, of Sacramento, was charged with distribution of methamphetamine between February 12, 2014, and April 22, 2014. Docket # 2:15-cr-093 GEB
Both cases were the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Christiaan Highsmith is prosecuting both cases.
All defendants have been detained pending trial. If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $1 million fine on the conspiracy charge and four years in prison and a $250,000 fine on the use of a communications facility in a furtherance of a drug trafficking offense charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Two Phelps County People Sentenced on Methamphetamine ChargesRead the Press Release
St. Louis, MO – Two Edgar Springs people have been sentenced involving their methamphetamine distribution activities in March 2014 in Phelps County.
RANDY E. KARNES was sentenced today to 72 months in prison; SHANTELLE M. LIBHART was sentenced last week to 84 months in prison. They appeared in St. Louis before United States District Judge E. Richard Webber.
This case was investigated by the South Central Drug Task Force.
Three Warrensburg Residents Among Six to Plead Guilty to Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six defendants have pleaded guilty in federal court for their roles in a conspiracy to distribute methamphetamine and to illegally possessing a firearm.
Phuoc Hong, also known as Tony Hong, 32, of Warrensburg, pleaded guilty before U.S. District Judge Stephen R. Bough on Wednesday, April 29, 2015, to participating in a conspiracy to distribute methamphetamine from December 2013 to May 2014.
Co-defendants Garrett D. Statler, 21, and Alyce M. Maher, 27, both of Warrensburg, Mo.; Dylan K. Avery, 19, of Clinton, Mo.; and Arturo-Lorenzo Roldan, 34, of Independence, Mo., have also pleaded guilty earlier this month to their roles in the drug-trafficking conspiracy. Co-defendant Tony D. Meyer, 42, of Sedalia, Mo., recently pleaded guilty to being a felon in possession of a firearm.
Hong admitted that he sold methamphetamine from his Warrensburg residence and from other locations. During the investigation, an undercover agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives purchased methamphetamine from Hong on 11 occasions and purchased cocaine or crack cocaine from Hong on four occasions.
Hong purchased his methamphetamine from Roldan and purchased his cocaine from a different source. Roldan admitted that he sold Hong approximately one to ounces of methamphetamine per week, later increasing to two to three ounces per week. Hong also supplied methamphetamine to Meyer, Statler, Avery and Maher, who then supplied others.
The investigation resulted in the purchase or seizure of a total of 424.6 grams of methamphetamine, 68.3 grams of cocaine and 65.7 grams of crack cocaine. In addition to the methamphetamine actually purchased from Hong, it is believed that he is responsible for at least another pound of methamphetamine that he sold to Meyer.
Law enforcement officers conducted a search of Roldan’s residence and seized 88.5 grams of methamphetamine and $12,000 that came from the sale of a pound of methamphetamine to another individual. Based on this, Roldan is responsible for approximately 1.65 kilograms of methamphetamine (an estimated two ounces a week for five months (1120 grams), 88.5 grams found during the search and a pound sale (448 grams) represented by the $12,000).
Meyer admitted that he was in possession of a Hi-Point 9mm pistol when his vehicle was stopped by Kansas City, Mo., police officers on Jan. 18, 2014. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Meyer has two prior felony convictions for assaulting a law enforcement officer, four prior felony convictions for possession of a controlled substance, two prior felony convictions for distributing a controlled substance, and prior felony convictions for trafficking in drugs, possessing drug paraphernalia, robbery, assault, and leaving the scene of an accident.
Under federal statutes, Hong and Roldan are each 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 $10 million. Meyer is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $250,000. Statler is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. Avery and Maher are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million.
Sentencing hearings have been scheduled for Aug. 27 and 28, 2015.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Warrensburg, Mo., Police Department, the Johnson County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Knob Noster, Mo., Police Department, the Sedalia, Mo., Police Department, the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Three Senior Executives of For-Profit Schools Plead Guilty in Manhattan Federal Court to Participating in Student Visa and Financial Aid Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA, three senior executives of privately owned for-profit schools, pled guilty yesterday in Manhattan federal court to criminal conspiracy charges for their involvement in student visa fraud and financial aid fraud schemes. Specifically, the defendants each pled guilty to one count of conspiracy to commit student visa fraud and one count of conspiracy to commit student financial aid fraud, agreed to forfeit $7,440,000 of proceeds of the student visa fraud conspiracy to the United States Government, and agreed to pay $1,000,000 in restitution to the United States Department of Education (“ED”) for losses from the student financial aid fraud conspiracy. The defendants were arrested in May 2014, along with co-defendants Samir Hiranandaney and Seema Shah, following a long-term investigation by the United States Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE-HSI”), the United States Department of State’s Diplomatic Security Service (“DOS-DSS”), and ED’s Office of the Inspector General (“ED-OIG”). SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA entered their guilty pleas yesterday before United States District Judge J. Paul Oetken.
Manhattan U.S. Attorney Bharara stated: “Suresh Hiranandaney, Lalit Chabria, and Anita Chabira turned their for-profit schools into instruments of fraud to exploit our nation’s foreign student visa and domestic student financial aid programs for their own personal financial gain. Education fraud remains a high-priority focus of ours and we will prosecute all those who make a self-serving sham out of education.”
According to the Indictment filed in this case, the Complaint previously unsealed in this case, and other statements made at public court proceedings, including yesterday’s guilty pleas:
Each of the defendants who pled guilty yesterday was associated with the Micropower Career Institute (“MCI”), a for-profit school with five campuses in New York and New Jersey, or the Institute for Health Education (“IHE”), a for-profit school located in New Jersey. SURESH HIRANANDANEY was MCI’s President; his brother-in-law, LALIT CHABRIA, was MCI’s Vice President and IHE’s President; and his sister, ANITA CHABRIA, was MCI’s Vice President.
Foreign citizens are granted F-1 student visas to remain in the United States as long as they are pursuing full courses of study at approved schools. If a student fails to attend classes as required, the school is required to inform immigration authorities so that the authorities may terminate that student’s visa. SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA failed to report to immigration authorities that foreign citizens were not attending classes at MCI and IHE as required.
The defendants and others fraudulently portrayed MCI and IHE to immigration authorities as legitimate institutes of higher learning where foreign students carried full course loads. In reality, the majority of foreign students at MCI and IHE did not attend the required number of classes. SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA failed to report this to immigration authorities as required, while MCI and IHE continued to collect millions of dollars in tuition from foreign students with delinquent attendance. When a campus of MCI came under regulatory scrutiny, the defendants and others transferred foreign students with delinquent attendance to affiliated schools (such as another MCI campus or IHE) that were not under scrutiny.
In another scheme, SURESH HIRANANDANEY, LALIT CHABRIA, ANITA CHABRIA, and others falsified documents in student financial aid files at MCI in order to hide MCI’s failure to timely return financial aid funds received by MCI for domestic students who had dropped out of MCI. In violation of federal laws and regulations governing the administration of financial aid payments to eligible low-income students, MCI failed to return to ED substantial sums of financial aid funds that ED had disbursed to MCI for domestic students who dropped out of MCI without an authorized leave of absence. Specifically, the defendants and others falsified student files by altering documents in the files, or in some cases creating entirely fabricated documents, to conceal MCI’s failure to return such funds to ED and ensure that ED would not terminate MCI’s eligibility for future financial aid funds.
SURESH HIRANANDANEY, 61, LALIT CHABRIA, 54, and ANITA CHABRIA 50, each pled guilty to one count of conspiracy to commit student visa fraud and one count of conspiracy to commit student financial aid fraud, agreed to pay $7,440,000 of proceeds of the student visa fraud conspiracy in forfeiture to the U.S. Government, and agreed to pay $1,000,000 in restitution to ED for losses from the student financial aid fraud conspiracy. Each count carries a maximum of five years in prison. The defendants’ sentencing date is scheduled for September 10, 2015. The penalties described here are prescribed by Congress and provided for informational purposes only, as any sentence imposed on each of these defendants will be determined by Judge Oetken.
The remaining defendants, Samir Hiranandaney, 28, and Seema Shah, 42, face pending criminal conspiracy charges that are contained in the Indictment in this case. The charges against Samir Hiranandaney and Seema Shah are merely accusations and these defendants are presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Bharara praised ICE-HSI, DOS-DSS, and ED-OIG for their work in the investigation this case.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Samson Enzer and Margaret Graham are in charge of the prosecution. Assistant United States Attorney Andrew Adams is in charge of the forfeiture aspects of the case.
Three Defendants Sentenced for Their Involvement in Extensive Tax Refund Fraud SchemeRead the Press Release
Three defendants were sentenced by U.S. District Judge Joan A. Lenard for their involvement in an extensive tax refund fraud scheme. Vory V. Copeland, of Miramar, was sentenced to 111 months in prison, followed by 3 years of supervised release, and ordered to pay joint and several restitution in the amount of $911,539. Marlan L. Copeland, of Miramar, was sentenced to 72 months in prison, followed by three years of supervised release. Brannoc K. Rudd, of Miami Gardens, was sentenced to 60 months in prison, followed by 3 years of supervised release. The three defendants were held jointly and severally liable for restitution. Vory Copeland was ordered to pay restitution in the amount of $911,539. Marlan Copeland and Brannoc Rudd were each ordered to pay restitution in the amount of $285,834.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
After a seven-day trial, a federal jury convicted Vory Copeland of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
After a separate ten-day trial, a federal jury convicted Marlan Copeland and Brannoc Rudd of one count of conspiracy, in violation of Title 18, United States Code, Section 371. Marlan Copeland was also convicted of five counts of theft of government property, in violation of Title 18, United States Code, Section 641, and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Evidence presented at the trials revealed that between January 2010 and April 2010, Vory Copeland and his co-conspirators filed over 150 fraudulent tax returns, including tax returns that included stolen personal identification information. The co-conspirators then cashed many of the fraudulently obtained tax refund checks at a Wachovia Bank in Miami Gardens, Florida. Marlan Copeland and Rudd brought more than twenty checks into the bank, each check reflecting a tax refund issued by the U.S. Department of the Treasury. At the bank, Marlan Copeland and Rudd cashed the checks and fraudulently obtained more than $100,000.00. Although each check had been purportedly signed by the taxpayer, at trial the taxpayers identified the signatures at forgeries.
During the trials, individual victims whose personal identification information had been compromised testified that they had not authorized the defendants to file the fraudulent tax returns or cash the resulting tax refund checks.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys John Gonsoulin and John Byrne.
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.
Thirteen Current and Former Law Enforcement Officers and Two Others Indicted for their Alleged Participation in a Drug Trafficking ConspiracyRead the Press Release
Thirteen current and former law enforcement officers and two other individuals have been indicted and arrested for allegedly protecting narcotics shipments and cash proceeds during transit along the east coast for what they believed was a large-scale drug trafficking organization that was actually an undercover operation by the FBI.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division made the announcement.
“Corruption in local government – especially involving law enforcement – threatens the social compact that binds our communities together,” said Assistant Attorney General Caldwell. “When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer. That is why the Criminal Division of the Department of Justice and our law enforcement partners in North Carolina and throughout the country are determined to root out corruption, wherever and in whatever form it may be found.”
“The actions by these individuals are particularly troubling due to their current and past affiliation with law enforcement,” said U.S. Attorney Walker. “Their alleged conduct was reprehensible and my office will not tolerate this kind of corruption in our district. I am grateful for the outstanding work of the FBI Special Agents who investigated this case.”
“They vowed to protect and serve, but instead these deputies and correctional officers sold their badges and used their law enforcement positions to line their own pockets,” said Special Agent in Charge Strong. “Public corruption at any level is the number one criminal priority of the FBI and we will work aggressively to protect the public trust.”
The following individuals were indicted in the Eastern District of North Carolina and arrested today in a coordinated operation by the FBI:
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Lann Tjuan Clanton, 36, a correctional officer with the Virginia Department of Corrections;
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Ikeisha Jacobs, 32, a deputy with the Northampton County Sheriff’s Office;
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Jason Boone, 29, a deputy with the Northampton County Sheriff’s Office;
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Wardie Vincent Jr., 35, formerly of the Northampton County Sheriff’s Office;
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Adrienne Moody, 39, a correctional officer with the North Carolina Department of Public Safety;
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Cory Jackson, 43, formerly of the Northampton County Sheriff’s Office;
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Jimmy Pair Jr., 48, a deputy with the Northampton County Sheriff’s Office;
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Curtis Boone, 31, a deputy with the Northampton County Sheriff’s Office;
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Antonio Tillmon, 31, a police officer with the Windsor City Police Department;
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Alaina Kamling, 27, a correctional officer with the North Carolina Department of Public Safety;
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Kavon Phillips, 25, a correctional officer with the North Carolina Department of Public Safety;
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Crystal Pierce, 31, of Raleigh, North Carolina;
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Alphonso Ponton, 42, a correctional officer with the Virginia Department of Corrections;
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Thomas Jefferson Allen II, 37, a deputy with the Northampton County Sheriff’s Office; and
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Tosha Dailey, 31, a 911 dispatch operator for Northampton County.
All 15 defendants are charged with conspiring to distribute controlled substances and conspiring to use and carry firearms during and in relation to drug trafficking offenses. Other charges against certain defendants include attempted extortion, attempted possession with intent to distribute controlled substances, money laundering, federal programs bribery and use and carry of firearms during and in relation to crimes of violence and drug trafficking offenses.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency and the North Carolina Department of Public Safety, with assistance from the Halifax County Sheriff’s Office. The case is being prosecuted by Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brian S. Meyers of the Eastern District of North Carolina.
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Thirteen Current and Former Law Enforcement Officers and Two Others Indicted for Their Alleged Participation in A Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – Thirteen current and former law enforcement officers and two other individuals have been indicted and arrested for allegedly protecting narcotics shipments and cash proceeds during transit along the east coast for what they believed was a large-scale drug trafficking organization that was actually an undercover operation by the FBI.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division made the announcement.
“Corruption in local government – especially involving law enforcement – threatens the social compact that binds our communities together,” said Assistant Attorney General Caldwell. “When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer. That is why the Criminal Division of the Department of Justice and our law enforcement partners in North Carolina and throughout the country are determined to root out corruption, wherever and in whatever form it may be found.”
“The actions by these individuals are particularly troubling due to their current and past affiliation with law enforcement,” said U.S. Attorney Walker. “Their alleged conduct was reprehensible and my office will not tolerate this kind of corruption in our district. I am grateful for the outstanding work of the FBI Special Agents who investigated this case.”
“They vowed to protect and serve, but instead these deputies and correctional officers sold their badges and used their law enforcement positions to line their own pockets,” said Special Agent in Charge Strong. “Public corruption at any level is the number one criminal priority of the FBI and we will work aggressively to protect the public trust.”
The following individuals were indicted in the Eastern District of North Carolina and arrested today in a coordinated operation by the FBI:
- Lann Tjuan Clanton, 36, a correctional officer with the Virginia Department of Corrections;
- Ikeisha Jacobs, 32, a deputy with the Northampton County Sheriff’s Office;
- Jason Boone, 29, a deputy with the Northampton County Sheriff’s Office;
- Wardie Vincent Jr., 35, formerly of the Northampton County Sheriff’s Office;
- Adrienne Moody, 39, a correctional officer with the North Carolina Department of Public Safety;
- Cory Jackson, 43, formerly of the Northampton County Sheriff’s Office;
- Jimmy Pair Jr., 48, a deputy with the Northampton County Sheriff’s Office;
- Curtis Boone, 31, a deputy with the Northampton County Sheriff’s Office;
- Antonio Tillmon, 31, a police officer with the Windsor City Police Department;
- Alaina Sue Kamling, 27, a correctional officer with the North Carolina Department of Public Safety;
- Kavon Phillips, 25, a correctional officer with the North Carolina Department of Public Safety;
- Crystal Pierce, 31, of Raleigh, North Carolina;
- Alphonso Ponton, 42, a correctional officer with the Virginia Department of Corrections;
- Thomas Jefferson Allen II, 37, a deputy with the Northampton County Sheriff’s Office; and
- Tosha Dailey, 31, a 911 dispatch operator for Northampton County.
All 15 defendants are charged with conspiring to distribute controlled substances and conspiring to use and carry firearms during and in relation to drug trafficking offenses. Other charges against certain defendants include attempted extortion, attempted possession with intent to distribute controlled substances, money laundering, federal programs bribery and use and carry of firearms during and in relation to crimes of violence and drug trafficking offenses.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency and the North Carolina Department of Public Safety, with assistance from the Halifax County Sheriff’s Office. The case is being prosecuted by Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brian S. Meyers of the Eastern District of North Carolina.
Texas man sentenced to 20 years in prison for methamphetamine distribution conspiracyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Texas man was sentenced to 240 months in prison for conspiring to sell methamphetamine in the Winn Parish area.
Alwyn Nord Stewart Jr., 35, of Houston, Texas, was sentenced by U.S. District Judge Donald E. Walter on one count of conspiracy to distribute methamphetamine. He was also sentenced to five years of supervised release. According to evidence presented at the January 12, 2015, guilty plea, Alwyn Stewart, David Lamont Mangum, 38, and Altomio Kente Phillips, 29, both of Winnfield, and Demetrius Marie Jackson, 31, of Deridder, La., conspired to distribute methamphetamine transported from Houston to the Winnfield area from the beginning of 2011 until September 2012. Stewart was the supplier of methamphetamine to Mangum. Stewart and Mangum would arrange transport of the drugs to Louisiana, and other co-conspirators assisted with the delivery and distribution.
The other conspirators were sentenced on January 27, 2015. Mangum was sentenced to 204 months in prison for the conspiracy count and for one count of possession of a firearm in relation to drug trafficking. He was also sentenced to 10 years of supervised release. Phillips was sentenced to 90 months in prison and 5 years of supervised release for one count of possession with intent to distribute methamphetamine. Jackson was sentenced to one day in prison and five years of supervised release for one count of possession with intent to distribute methamphetamine. Stewart and the other conspirators forfeited the property seized during the case, which includes $29,067 in cash, two plots of land in Winnfield, seven vehicles, and other seized items.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Trend Setters.” The DEA conducted the investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt and dismantle these organizations and to seize their assets.
Assistant U.S. Attorneys James G. Cowles Jr., Brandon B. Brown and Joseph G. Jarzabek prosecuted the case.
Ten Chinese Nationals Charged with Violating Court Orders to Remain in U.S. as Witnesses for ‘Maternity House’ InvestigationsRead the Press Release
A Total of 11 who Fled U.S. Face Charges that include Obstruction of Justice, Lying on Visa Applications, and Violating ‘Material Witness’ Court Orders
SANTA ANA, California – Ten Chinese nationals who fled the United States earlier this month were charged today with violating federal court orders to remain in the country during investigations into “Chinese maternity houses” that allegedly helped women come to the U.S. on fraudulent visas so they could give birth to children who would become U.S. citizens.
Criminal complaints filed in United States District Court this afternoon accuse 10 of the defendants with obstruction of justice and contempt of court for leaving the United States after being ordered to remain in the country and provide information in an investigation into businesses that allegedly helped mainly Chinese women come to the U.S. to give birth.
In addition to the charges related to the alleged violations of the court orders designating them as material witnesses, 10 of the defendants are also charged with making false statements on visa applications for allegedly lying to federal immigration authorities about the true purpose of their trips to the United States.
An eleventh defendant who had not been formally ordered to remain in the United States as a material witness is charged only with visa fraud.
All but one of the defendants were customers of Chinese maternity house operations in Southern California who paid up to $50,000 to obtain temporary visitor’s visas for authorization to travel to the United States by fraudulently claiming their stay was only for several days, according to court documents.
Ten of the defendants are among 29 individuals who were designated by United States Magistrate Judges as material witnesses after they were encountered by federal law enforcement authorities who executed 37 federal search warrants in March across Orange, Los Angeles, and San Bernardino counties. As detailed in the affidavits in support of those search warrants, federal agents are investigating multiple Chinese maternity operations in Southern California for suspected immigration fraud and tax fraud, as well as failing to report foreign bank accounts in China and Hong Kong.
Federal arrest warrants have been issued for all 11 defendants named in the criminal complaints filed today. All but one of the defendants are charged with obstruction of justice and criminal contempt of court, and 10 of them are also charged with making a false statement on a visa application.
The defendants charged today are:
Dongjiang He (贺东江), 46, who last resided in Rancho Cucamonga, allegedly fled with his wife on April 16. On his visa application, Dongjiang He listed his occupation as “Government” and his position as “Project Manager and Secretary General” for the China Nonferrous Metals Techno Economic Research Institute, which is located in the Haidian District in Beijing.
He’s wife, Zhichan Yu (余芝婵), 40, who last resided in Rancho Cucamonga, is a graduate of the Beijing University of Chinese Medicine who allegedly made a false statement on her visa application when she listed that she would be visiting Hawaii for only 15 days, when she actually intended to be in Southern California for several months and give birth.
Jun Xiao (肖俊), 30, and LongJing Yi (易珑静), 30, who last resided in Irvine, allegedly fled on April 4. According to the affidavit in support of the criminal complaint against them, Xiao and Yi made false statements on their visa applications, namely that they would be staying in the United States for only 15 days. Moreover, Xiao and Yi paid only $4,600 of the $32,291 in hospital charges from Yi’s giving birth at an area hospital, according to court documents. In this case, Yi is charged only with visa fraud as she had not yet appeared before a judge in relation to the government’s application to have her designated as a material witness.
Jia Luo (罗佳), 30, who last resided in Rancho Cucamonga, allegedly fled on April 12. According to the affidavit written by a special agent with IRS - Criminal Investigation in support of the criminal complaint against Luo, Luo lied on her visa application and lied to U.S. customs officers in Hawaii when asked her if she was planning on having a baby in the United States.
Renlong Chen (陈人龙), 34, and his wife Wei Wang (王伟), 33, who last resided in Rancho Cucamonga, allegedly fled on April 12. Chen and Wang are accused of making false statements on their visa applications by stating they would be visiting the United States for only eight days, when they actually made arrangements to stay at a Chinese maternity house for three months so that Wang could give birth in the United States.
Jie He (何洁), 29, who last resided in Rancho Cucamonga, allegedly fled on April 13. Jie He allegedly made false statements on her visa application, including that she planned to stay in the United States for only 20 days, when she actually entered into a contract to pay approximately $50,000 to obtain a visa and stay in the United States for several months to give birth. According to the affidavit in this case, Jie He told investigators that she flew into Las Vegas, rather than Los Angeles, because the Chinese maternity operator had advised her that it was easier to enter through Las Vegas, according to an affidavit in the case.
Eryun Zhang (张尔芸), 25; her husband, Liang Ni (倪梁), 25; and her mother, Ji Xu (徐激), 50, who last resided in Rancho Cucamonga, allegedly fled on April 14. According to the criminal complaint, Ni admitted that during an interview conducted at the U.S. Consulate in China, he falsely stated that the purpose of their trip was for their honeymoon, rather than the true reason, which was for Zhang to give birth in the United States. Xu is charged with violating the court’s order to remain in the U.S., but she is not charged with visa fraud.
All of the defendants are fugitives and are believe to be in China at this time.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted, the defendants face statutory maximum sentences of 25 years in federal prison for the charge of false statement on a visa application and five years in federal prison for the charge of obstruction of justice. There is no maximum penalty for the charge of criminal contempt of court.
These cases are the product of a joint investigation conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS - Criminal Investigation.
Release No. 15-040
Sumter Man Sentenced in Federal Court on Drug ChargesRead the Press Release
Contact Person: William Witherspoon (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Kevin Lamont Loney, age 38, of Sumter County, South Carolina was sentenced today in federal court in Columbia, South Carolina, for possession with the intent to distribute 28 grams or more of crack cocaine, 500 grams or more of cocaine and a quantity of marijuana, a violation of 21 U.S.C. §§ 841(a) (1) 841(b) (B) and 841(b)(1)(D). Senior United States District Judge Margaret B. Seymour of Columbia sentenced Loney to 300 months imprisonment (25 years) followed by 8 years of supervised release and a special assessment of $100.
Evidence presented at the change of plea hearing established that a search warrant was executed at Loney’s residence. The search warrant was based upon the purchase of half a kilogram of cocaine from Loney by the police. Based upon this purchase and other information, the officers obtained the search warrant for Loney’s home. During the search, they found more than 500 grams of cocaine, 96 grams of crack cocaine and 20 kilograms of marijuana in Loney’s home. Loney was arrested.
The case was investigated by agents of the Drug Enforcement Administration Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Sumter County Sheriff's Department. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
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Statement by Acting Assistant Attorney General Leslie Overton on Court's Remedy to Address American Express's Antitrust ViolationRead the Press Release
Acting Assistant Attorney General Leslie Overton of the Department of Justice’s Antitrust Division provided the following statement today after the U.S. District Court of the Eastern District of New York issued an order regarding a remedy to address American Express’s illegal conduct:
“We are pleased that the court has ordered American Express to eliminate its illegal anti-steering rules. These rules have stifled competition among credit card networks by blocking merchants from encouraging their customers to use particular credit cards. The court’s remedy will benefit merchants, who pay more than $50 billion in credit card ‘swipe fees’ annually, as well as the consumers who ultimately bear these costs. Merchants’ ability to encourage the use of particular credit card networks will incentivize American Express and its competitors to compete to earn a greater share of a merchant’s business. The court’s order reinforces the victory the department has won for consumers.”
The court’s order prohibits American Express from adopting rules or entering contracts that block merchants from encouraging their customers to use a particular credit card. Under the order, merchants must be permitted to: offer discounts for the use of particular cards; express a preference for particular cards; disclose to customers the cost merchants incur when the customer uses particular credit cards; and engage in other conduct to encourage use of favored credit cards. The order also requires American Express to: repeal any rules that block merchant steering; notify merchants of their freedom to engage in steering activities; and adopt compliance measures to ensure that its employees understand that they cannot continue to block steering by merchants that accept American Express cards.
The U.S. Department of Justice and 17 state attorneys general sued American Express, Visa Inc. and MasterCard International Inc., in 2010 to eliminate restrictions that the three credit card networks imposed on merchants. The civil case, brought under Section 1 of the Sherman Antitrust Act, sought to end the violation and to restore competition.
Settlements with Visa and MasterCard were filed at the same time the case against American Express was begun; the settlements, like the court’s order concerning American Express’s conduct, prohibit Visa and MasterCard from continuing their rules and practices that had obstructed competition. The court approved the settlements on July 20, 2011, and they applied immediately to Visa and MasterCard. American Express was not a party to the settlements, and the litigation against American Express continued.
Over the course of a seven week trial during the summer of 2014, the department presented evidence that these restrictions obstruct merchants from using competition to try to keep credit card fees from increasing.
On Feb. 19, 2015, Judge Nicholas G. Garaufis of the Eastern District of New York issued a decision finding that American Express violated Section 1 of the Sherman Act. The court also entered a scheduling order instructing the parties to submit, within 30 days, a joint proposed remedial order. Today’s order follows the parties’ briefing concerning the proposed remedy.
Amex Remedy Opinion
Amex Injunction Order