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Wednesday 29 April 2015
Forty Four Defendants Charged in State and Federal CourtRead the Press Release
United States Attorney James L. Santelle announced today that five indictments were unsealed in federal court charging 24 defendants with conspiracy to distribute controlled substances, including heroin, crack cocaine, and cocaine.
Patrick L. YOUNG, age 40
Larry J. GARRETT, age 33
Charlie B. NELSON, age 40
Dai-Cheri RASHADA, age 32
Lamont M DALLAS, age 30
Sebastian O. KING, age 39
Terrance M. JONES, age 35
Marvin C SEAY, age 36
Joel WRIGHT, age 39
Pierre J TYSON, age 42
Bryan I. THOMAS, age 26
Darius L. ALLEN, age 32
Henry T. WADE, age 33
Bernard L. JEDKINS, age 29
Tony GILMORE, age 45
Dionia SCOTT, age 36
Marcus BUTLER, age 31
Shawn TUCKER, age 34
Jondelyn JACKSON, age 26
Myles WASHINGTON, age 26
Lloyd RANDLE, Jr., age 35
Edward TANNER, Jr., age 34
Larry ASHLEY, Jr., age 26
Jerrod PATTERSON, age 28
All the defendants except Randle, Tanner, Ashley, and Patterson are charged with offenses punishable by up to forty years in prison, with a mandatory minimum sentence of five years in prison. Randle, Tanner, Ashley, and Patterson face up to life imprisonment if convicted. Various defendants are also charged with substantive drug distribution counts. The majority of the suspects arrested were members of the Gangster Disciple Street Gang and all of them operated in Kenosha and Racine Counties.
Yesterday, law enforcement officers arrested twelve of these defendants. Five were already in custody. Seven are still at large, including: Larry Garrett, Lamont Dallas,Marcus Butler, Bernard Jedkins, Jerrod Patterson, Lloyd Randle, and Jondelyn Jackson.
In addition, 12 defendants were charged by the Kenosha County District Attorney’s Office with narcotics offenses. Law enforcement arrested four of those defendants; eight are still at large. Law enforcement also arrested eight other individuals on outstanding state warrants or related narcotics charges.
In addition to yesterday’s arrests, law enforcement executed 12 federal search warrants in the Kenosha and Racine areas targeting members of this organization. Four state search warrants were also obtained and executed. Law enforcement recovered approximately 800 grams of crack cocaine, 676 grams of heroin, 227 marijuana plants, 120 pounds of marijuana, and 3.5 grams of hash oil. In addition, there were a total of 25 firearms seized, a CS grenade, and a police scanner.
In making today’s announcement about the federal charges, property searches and seizures, and defendant arrests, United States Attorney Santelle stated: “Following a targeted, focused, and resource-intensive investigation of a violent street gang operating in the Kenosha and Racine areas, most of its many members are now apprehended and brought to justice—ending an extensive criminal operation that compromised the safety and the well-being of our community. The charges in the indictments against them describe a conspiracy to possess and distribute significant amounts of heroin, cocaine powder, and crack cocaine—along with their illegal possession of firearms that underscores the destructive nature of their criminal conduct.” Santelle commended all of the federal, state, and local law enforcement officers and units involved in the investigation. “Through a highly integrated and thoroughly collaborative law enforcement effort, these investigators and agents have made our streets and neighborhoods more secure, and the prosecutions—undertaken by my office in partnership with that of the Kenosha County District Attorney will accomplish the end of this long-time criminal enterprise.”
Kenosha County District Attorney Robert Zapf stated: “I have been around law enforcement and prosecution for the past 40 years and I can honestly say that this operation was one of the most successful (in terms of arrests) and best coordinated federal, state, and local drug investigations and takedowns that I can remember.”
“‘This organization, nicknamed ‘The Firm,’ has been entrenched in the Kenosha area for years dealing heroin and other drugs; however, that reign ended yesterday with charges against more than 40 drug traffickers, thanks to the outstanding and remarkable cooperation among the DEA and its Wisconsin law enforcement partners,” said Dennis A. Wichern, Special Agent in Charge of the U.S. Drug Enforcement Administration Chicago Field Division, which includes Wisconsin. Wichern also praised the dedication and teamwork of the agents, officers and prosecutors who worked tirelessly to dismantle this drug trafficking organization.
Chief John Morrissey of the Kenosha Police Department stated “I know that sometimes citizens get frustrated and think that we are not working drug investigations to the level they need to be. However, they are a priority for our department and our city. This type of operation takes a lot of work and cooperation between many agencies. We understand that at all levels of law enforcement we are dealing with the same issues, same problems and same people. We appreciate the assistance from all the state and federal partners. This operation is a worthy example of everyone working together and combining our resources to deal with these issues.”
“The multiple arrests in Kenosha are another prime example of the importance of our local and federal law enforcement partnerships,” said Robert J. Shields Jr., special agent in charge, FBI Milwaukee. “I commend the efforts of our Southeast Wisconsin Regional Gang Task Force, they have been very effective in getting violent offenders off the streets and into custody.”
Kenosha Sheriff David Beth stated that he is “proud that the Kenosha Sheriff’s Department’s Drug Operations Group (KDOG) partnered with the other law enforcement agencies in the successful and safe apprehension of more than 40 drug traffickers. Today the citizens of Kenosha County have a safer community thanks to the excellent work of all these fine law enforcement officers. The Kenosha Sheriff’s Department stands ready to combat illegal drug activity with all of our resources.”
The investigating agencies included the U.S. Department of Justice, Drug Enforcement Administration and Federal Bureau of Investigation, Kenosha Police Department, Kenosha County Sheriff’s Office, Oak Creek Police Department, Racine Police Department, the Racine County Sheriff’s Office and the Ozaukee County Sheriff’s Office. The United States Marshal Service and the Wisconsin Department of Justice, Division of Criminal Investigation, also assisted with the arrests and search warrants.
These cases are being prosecuted federally by Assistant U.S. Attorneys Mario Gonzales and Margaret Honrath.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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Former Navy Officer Sentenced for Attempting to Entice A MinorRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton sentenced William Daniel Thompson (67) today to 16 years in federal prison for attempting to persuade, induce, and entice two minors to engage in illicit sexual conduct. He pleaded guilty on December 24, 2014.
According to court documents, on September 10, 2014, an FBI agent responded to an advertisement in the “all personals” section of Craigslist, which made reference to a single white male seeking a “family dynamic.” Thompson communicated online with the undercover agent, who was posing as the father of a 10-year-old girl and a 13-year-old boy. During the online conversations, Thompson told the agent that he wanted to engage in sexual conduct with the minors.
On September 11, 2014, Thompson traveled from his home in Manatee County to Altamonte Springs, where he intended to meet the father for the purpose of engaging in illicit sexual conduct. He was subsequently arrested. During an interview with law enforcement, Thompson admitted that he had traveled for the purpose of meeting the father of two children with whom he had been e-mailing since September 10, 2014, and to explore the possibility of having sex with a 10-year-old girl.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Final Defendant Convicted After Five Day Trial of Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – A federal jury today convicted Nikolay Zakharyan, age 24, of Owings Mills, Maryland, for conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Nikolay’s father, Artur Zakharyan, age 54, of Reisterstown, pleaded guilty before trial to his participation in the conspiracy.
The conviction and guilty plea were 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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to their guilty pleas, Elmar Rakhamimov was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov (no relation) and Artur Zakharyan to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York. Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.
According to court documents and testimony at the five day trial, Artur Zakharyan recruited his son, Nikolay Zakharyan, to participate in the scheme. Nikolay Zakharyan assisted in the unloading, accounting, bagging, moving and loading of the master cases of contraband cigarettes. Nikolay Zakharyan traveled to the home of Elmar Rakhamimov to assist during no less than 10 deliveries of contraband cigarettes. Nikolay Zakharyan unloaded the cases of cigarettes from the truck into Elmar Rakhamimov’s garage and counted the number and types of cigarettes delivered to ensure that the delivery was complete. Nikolay Zakharyan also traveled to Elmar Rakhamimov’s home in the days following the delivery of the cigarettes to load them into the vehicle used to transport the contraband cigarettes to Brooklyn, New York.
Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew.
The first transaction occurred at Chesapeake Monuments, a business owned by Ilgar Rakhamimov, on December 11, 2011, when Elmar Rakhamimov and Ilgar Rakhamimov purchased 20 master cases of contraband cigarettes in exchange for $18,000 in cash. After the first transaction, the contraband cigarettes were delivered to and stored at the home of Elmar Rakhamimov in Owings Mills. Prior to each transaction, Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan discussed the transaction on the phone, and frequently met at Elmar Rakhamimov’s home to discuss the purchase and compile and count the money for the transaction.
The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded over the course of the conspiracy was more than $2.5 million.
Following many of the deliveries, the conspirators met at Elmar Rakhamimov’s residence to discuss moving the cigarettes to Brooklyn, New York where the cigarettes were sold at a profit to individuals in New York, who further distributed the contraband cigarettes. The cigarettes were often transported from Maryland to New York by Adam Azerman, who delivered them to Shamil Novakhov, a relative of Ilgar Rakhamimov. Ilgar Rakhamimov brought Novakhov into the conspiracy, and was the primary contact with Novakov throughout the conspiracy. Novakhov’s nephew, Ruslan Ykiew, also would travel from New York to Maryland to obtain contraband cigarettes and transport them to his uncle in New York. Ykiew initially stored the cigarettes in a restaurant he owned. At Novakhov’s request, in 2012 Ykiew rented a warehouse for the storage of the contraband cigarettes. Ilgar Rakhamimov and his co-conspirators paid $30 for each carton of contraband cigarettes, and sold them to buyers in New York for approximately $41 - $45 per carton.
Yelizarov and Elmar Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions.
As part of his plea agreement, Artur Zakharyan is required to forfeit $50,000 believed to be proceeds of the offense, $11,947 and a 1 troy ounce gold bar seized from Zakharyan’s belongings on December 17, 2013, and four troy ounce gold bars and a gold coin seized from his home on December 11, 2013.
Artur and Nikolay Zakharyan each face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Artur Zakharyan for July 9, 2015, at 1:00 p.m. and for Nikolay Zakharyan on July 29, 2015 at 10:00 a.m.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 44, of Reisterstown, Maryland; Ilgar Rakhamimov, age 41, Zarakh Yelizarov, age 52, and Adam Azerman, age 60, all of Pikesville, Maryland; and Shamil Novakhov, age 59, and Ruslan Ykiew, age 40, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Federal Indictment Charges Letter Carrier for Dumping U.S. MailRead the Press Release
CHARLOTTE, N.C. – A federal criminal indictment charging Marlin D. Haley, 22, of Charlotte, with two counts of destroying and delaying U.S. mail was returned by a federal grand jury on Thursday, April 23, 2015, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Haley was arrested this morning and had his initial appearance before U.S. Magistrate Judge David S. Cayer.
Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General joins Acting U.S. Attorney Rose in making today’s announcement.
According to the criminal indictment and court proceedings, on two separate occasions on March 22, 2015 and April 6, 2015, in Mecklenburg County, Haley unlawfully did and attempted to secret, destroy, delay and open U.S. Mail entrusted to him for delivery. The indictment alleges that Haley dumped the mail instead of delivering it to the addressed recipients.
Haley faces a maximum penalty of five years in prison and a $250,000 for each count.
The charges contained in these indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by USPS, Office of the Inspector General. Assistant U.S. Attorney Kenneth Smith is prosecuting the case.
Federal Grand Jury in Florence, South Carolina, Returns IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictment(s) against the following:
Illegal Re-Entry Into U.S. After Being Deported
Jose Matias Benitez, age 43, of Horry County, South Carolina was charged in a 1-count indictment. Jose Matias Benitez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a). The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000. The case was investigated by deportation officers of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Illegal Re-Entry Into U.S. After Being Deported
Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez, age 23, of Horry County, South Carolina was charged in a 1-count indictment. Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a). The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000. The case was investigated by deportation officers of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Identity Theft
Lauren E. Blackwell, age 28, of Bishopville, South Carolina was charged in a 2-count indictment. Lauren E. Blackwell was charged with identity theft, a violation of Title 18, U. S. C. §1028(a)(7), and unauthorized use of a credit card, a violation of Title 18, U. S. C. §1029(a)(2). The maximum penalty Blackwell could receive is 15 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the U.S. Postal Inspection Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Manufacturing and Possessing Counterfeit Money
Donald Gene McIntyre, age 39, of Myrtle Beach, South Carolina was charged in a 2-count indictment. Donald Gene McIntyre was charged with manufacturing counterfeit money, a violation of Title 18, U. S. C. §471, and possession of counterfeit money, a violation of Title 18, U. S. C. §472. The maximum penalty McIntyre could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United State Secret Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Embezzling Social Security Funds
Lucy Wallace, age 52, of Kingtree, South Carolina was charged in a 1-count indictment. Lucy Wallace was charged with embezzling funds from Social Security Administration, a violation of Title 18, U. S. C. §471. The maximum penalty Wallace could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.New York Man Indicted for Trafficking Heroin
Dany Alexis Toro-Munera, age 29, was charged in a 1-count indictment for Possession with Intent to Distribute Heroin, a violation of Title 21, U. S. C. §841(a)(1). The maximum penalty Toro-Munera could receive is 40 years imprisonment and a maximum fine of $2,000,000. The case was investigated by the Florence County Sheriff's Office and the Drug Enforcement Administration Task Force and is assigned to Assistant United States Attorney Christopher D. Taylor of the Florence office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Eleven Defendants Indicted for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 11 defendants have been indicted for their roles in a conspiracy to distribute at least 10 kilograms of methamphetamine worth nearly $500,000.
Mike Kamal Ahmad, also known as “Viper Mike,” 39, Carey Michael Vannostran, 39, and Patrick Thomas Baker, 50, all of Kansas City, Mo.; Lori L. Justus, 51, Nicole Marie Bartram, 35, and Jono Dean Hamlin, 43, all of St. Joseph, Mo.; Scott Dewain Yount, 42, of Maryville, Mo.; Joseph Michael Tooley, 32, of Fordland, Mo.; and Matthew Lee Gusman, 31, Mike Andrews Lawson, Jr., 25, and Kayla Caroline Cornelison, 22, all of Red Oak, Iowa, were charged in an indictment returned under seal by a federal grand jury on April 15, 2015. That indictment was unsealed and made public following the arrests and initial court appearances of the defendants.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2010, to April 15, 2015.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government $494,200, which allegedly was received in exchange for the unlawful distribution of methamphetamine, based on a conservative average street price of $1,400 per ounce and the total conspiracy distribution of at least 10 kilograms. Ahmad would be required to forfeit to the government a 2001 Dodge Viper and a 2003 Hummer H2, both of which allegedly were used to facilitate the drug-trafficking conspiracy.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force and the Drug Enforcement Administration.
El Paso Man Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
In El Paso, 44–year-old Albert Hibbert was sentenced to 15 years in federal prison for receipt of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term handed down yesterday, U.S. District Judge Philip R, Martinez ordered that Hibbert pay a $1,000 fine, be placed on supervised release for a period of 20 years after completing his prison term and register as a sex offender.
According to court records, the HSI El Paso Cyber Crimes Group identified the defendant, who goes by the username “swelldad”, during an investigation involving suspected child pornography called Operation Protego. On April 3, 2014, Hibbert consented to a residential search by investigators. Evidence gathered during that search included the defendant’s laptop computer. A subsequent search of the computer revealed the presence of more than 400 images and 13 videos depicting the sexual exploitation of minors downloaded from the Internet.
On January 22, 2015, Hibbert pleaded guilty to one count of receipt of child pornography. He has remained in federal custody since his arrest on April 3, 2014.
“HSI is committed to protecting our children from individuals who exploit and prey on them,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “We will continue to work with our law enforcement partners and the U.S. attorney’s office to arrest and prosecute such individuals in our community.”
This case was investigated by Homeland Security Investigations together with the Texas Rangers. Assistant U.S. Attorney Robert Almonte prosecuted this case on behalf of the Government.
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, 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.
Daniel Musa Sentenced to 51 Months in Prison for Using Withheld Employee Taxes for His Own BenefitRead the Press Release
United States Attorney Andrew M. Luger announced the sentence of DANIEL NOK MUSA, 56, to 51 months in prison for withholding taxes from his employees but failing to pay them to the Internal Revenue Service. The defendant was sentenced on April 22, 2015, before U.S. District Judge John R. Tunheim in Minneapolis, Minn.
According to his guilty plea and documents filed in court, between 2002 and October 31, 2009, MUSA owned and operated home health care businesses known generally as “Life Care.” His employees were personal care attendants. As the owner of this business, MUSA withheld income taxes and Social Security and Medicare taxes from his employees’ paychecks. However, beginning in 2002, MUSA did not pay the full amounts owed, and repeatedly paid little or nothing to the IRS. Beginning in March 2006 and for the 12 subsequent tax quarters, MUSA paid only a portion or none of the money withheld from his employees’ paychecks. During that period, MUSA deducted a total of $101,340 from his employees’ paychecks and kept $85,122 for his own personal use. In total, MUSA failed to pay $284,000 in employment taxes.
According to his guilty plea and documents filed in court, MUSA evaded paying taxes by, among other things, falsely telling revenue officers that he was shutting down his business, when in fact he only shifted his business into different shells. For example, in 2005, MUSA operated Life Care as a sole proprietorship called Life Care Home Health Care. When the IRS began trying to collect unpaid unemployment taxes, MUSA reconstituted Life Care as Life Care Home Health, LLC. In 2006, MUSA again changed the name of the entity to avoid taxes, this time calling it Life Care PCA, LLC. MUSA reconstituted the business between 2007 and 2013 under four additional names to avoid paying taxes.
According to his guilty plea and documents filed in court, MUSA spent the money he stole on an extravagant lifestyle. He bought multiple houses, luxury vehicles, and other extravagances. MUSA also spent a large amount of money at Mystic Lake Casino, losing between $1,000 and $2,000 per week. Between 2006 and 2011, MUSA was at Mystic Lake at least 462 times.
The investigation was conducted by the Internal Revenue Service-Criminal Investigations Division.
This case was prosecuted by Assistant United States Attorney Michael L. Cheever.
Defendant Information:
DANIEL NOK MUSA, 56
Shakopee, Minn.
Convicted:
• Failure to account for and pay over withheld taxes, 14 counts
Sentenced:
• 51 months in prison
• 3 years supervised release
• $284,000 restitutionConvicted domestic violence offender sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Convicted domestic offender Zachary Burton Taylor, 22, of Stonewood, West Virginia, was sentenced today to 18 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Taylor was convicted in December 2012 of the misdemeanor offense of “Domestic Battery” in the Magistrate Court of Harrison County, West Virginia. As a result of the conviction, Taylor is prohibited from possessing a firearm. During a subsequent May 2014 arrest, Taylor was discovered in possession of a stolen .22 caliber pistol.
Taylor pled guilty in November 2014 to one count of “Prohibited Person in Possession of Firearm – Misdemeanor Crime of Domestic Violence,” following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Contract Postal Worker Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID HENRY, age 31, of Covington, was sentenced today for theft of mail.
According to court records, as a result of multiple complaints of missing mail from highway contract route No. 76 (“Route 76”) in Mandeville, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into Route 76 in an effort to determine the cause of the lost mail. On April 23, 2014, HENRY, admitted to taking three cards that he believed to have contained cash. HENRY also admitted to taking cash from the mail on three or four other occasions.
Today, U.S. District Court Judge Ivan L.R. Lemelle sentenced HENRY to three years probation and a $250.00 fine.
U.S. Attorney Polite praised the work of the U. S. Postal Inspection Service, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
Cleveland man faces drug and firearm chargesRead the Press Release
A federal grand jury returned a two-count indictment charging Tremaine D. Cowan, 24, of Cleveland, with possessing with intent to distribute crack cocaine and with being a felon in possession of firearms and ammunition, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on or about February 22, 2015, Cowan possessed with intent to distribute less than 28 grams of crack cocaine.
Count 2 of the indictment alleges that on or about February 22, 2015, Cowan possessed a Smith & Wesson, model 642, .38 caliber revolver; a Beretta, model 950BS, .22 caliber semi-auto pistol; and ammunition, after having been convicted of felonious assault, escape and receiving stolen oroperty, all in the Cuyahoga County Common Pleas Court.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wellsville Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charleston man sentenced to 14 years in federal prison for heroin traffickingRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Jon Paul Clements, 33, of Charleston, West Virginia, was sentenced to 14 years in federal prison for selling heroin. Clements pled guilty in October of 2014 to four counts of distributing heroin in the Charleston area.
At his guilty plea hearing, Clements admitted that he repeatedly sold heroin to a confidential informant working with law enforcement at various times and locations in July and August of 2014. Clements was sentenced as a career offender based on his criminal history that included prior convictions for robbery, unlawful wounding, and possession with intent to deliver marijuana.
“We’re fighting back hard against the spread of heroin in West Virginia,” said U.S. Attorney Goodwin. “Honest citizens shouldn’t have to worry about career criminals selling drugs in their communities. Now this defendant will have a long time in federal prison to think about the families and neighborhoods he damaged.”
The case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman was in charge of the prosecution.
Centralia Resident Convicted on Federal Charges for Burglarizing Gun DealerRead the Press Release
A Centralia resident pleaded guilty on April 29, 2015, in United States District Court for burglarizing the Buchheit of Centralia farm and home supply store and stealing thirty nine guns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dakota R. Moss, 19, faces a maximum of up to 40 years in prison for his crimes.
Moss was arrested days after the burglary and indicted by a federal grand jury in December 2014. Moss’ accomplice was not identified because that person is a juvenile.
Facts revealed in Court showed that on November 29, 2014, the Buchheit of Centralia farm and home supply store was burglarized and thirty nine firearms were stolen, along with at least one thousand rounds of ammunition. The burglary was accomplished using a full size pickup truck, which was stolen from the Centralia, Illinois High School. The suspects utilized the stolen truck to ram the locked security gate to make entry onto Buchheit’s parking lot, where the suspects then broke out store windows to make entry into the store. The surveillance video established that the initial burglary occurred at approximately 2:40 am. However, the video evidence revealed that the two suspects left the scene and returned to steal additional firearms and ammunition on two occasions - thereby making a total of three separate entries into the store between 2:40 am and 4:00 am.
Further, Moss and his juvenile accomplice were armed while inside of Buchheit’s and intended to shoot anyone who interrupted the burglary – including police. The complaint alleged that Moss and his accomplice stole the firearms in order to sell the guns; and that Ferguson, Missouri, was among the potential destinations for the weapons. The affidavit also states that the two planned on participating in the ongoing rioting and looting of businesses in the Ferguson, Missouri, area, however the plan did not materialize.
Centralia Police and agents from the ATF identified the suspects soon after the burglary and have recovered 37 of the 39 stolen guns as of this date. Anyone with knowledge of the remaining stolen firearms or the ammunition is encouraged to call law enforcement.
United States Attorney Stephen R. Wigginton credited the law enforcement response when he stated, "The ATF and the Centralia police department have done a fantastic job investigating this case. We fully support their continued investigation to ensure that everyone associated with this event is brought to justice. Moss is facing a longer time in prison than the time he has been on this earth, and for good reason: this was potentially a horribly violent crime which could easily have led to massive numbers of deaths [referring to the numbers of guns and the amount of ammunition taken]" United States Attorney Wigginton also praised the cooperation from Clinton County State’s Attorney John Hudspeth and said, "The State’s Attorney has been a valuable partner in this investigation who personally worked with the United States Attorney’s Office to ensure that justice is done. We look forward to continuing this joint investigation to ensure that everyone who participated in the crime is prosecuted to the fullest extent of the law. We will not stop looking for the remaining unrecovered weapons."
Moss was convicted of stealing firearms from a federal firearms licensee, possession of stolen firearms, being a felon in possession of firearms, and carry and use of a firearm during a crime of violence. The first three charges are all punishable by not more than 10 years’ imprisonment, a $250,000 fine, and not more than 5 years supervised release. Carry and use of a firearm during a crime of violence carries an additional mandatory consecutive sentence of not less than 5 years. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Sentencing has been scheduled for July 31, 2015.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia Police Department, along with the Clinton County State’s Attorney’s office. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Cedar Rapids Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
A Cedar Rapids man who illegally possessed a firearm pled guilty yesterday in federal court in Cedar Rapids.
Kendan Fonville, also known as “Fudd,” age 22, from Cedar Rapids, Iowa, was convicted of one count of Possession of a Firearm by an Unlawful Drug User and one count of Possession of a Firearm with an Obliterated Serial Number.
In a plea agreement, Fonville admitted that he illegally possessed a Bersa Thunder .380 caliber pistol in March 2012. Fonville admitted that the pistol had an obliterated serial number, that he knew the serial number was obliterated, and that he was an unlawful drug user at the time he possessed the pistol.
Fonville has been in the custody of the United States Marshals Service since his arrest in October 2014. After a detention hearing on October 22, 2014, Chief United States Magistrate Judge Jon Stuart Scoles ordered that Fonville be detained pending trial. In so doing, Judge Scoles concluded that Fonville “is virtually a one-man crime spree.” Judge Scoles explained that “despite being only 22 years old, [Fonville] has approximately 30 convictions,” including “11 convictions for assault, 6 convictions for interference with official acts, 4 convictions for public intoxication, and 3 convictions for trespass.”
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Fonville remains in custody of the United States Marshal. Fonville faces a possible maximum sentence of 15 years’ imprisonment, a fine of up to $500,000, $200 in special assessments, and up to 6 years of supervised release following any imprisonment.
Cedar Rapids Police Chief Wayne M. Jerman stated following the plea, “The city has been concerned about the level of gun crime that has been occurring. I truly appreciate the efforts of the prosecutors, investigators, and the patrol officers who remain committed to keeping Cedar Rapids safe.”
The case is being prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Ravi T. Narayan, and was investigated by the Federal Bureau of Investigation Safe Streets Task Force and the Cedar Rapids Police Department.
Court file - https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-117-LRR.
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Career Offender Drug Dealer Sentenced to More Than Fourteen Years in Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Dustin Dylan Glass, age 28, from Monroe, Georgia, was sentenced today by the Honorable C. Ashley Royal, United States District Judge in Athens, Georgia. Mr. Glass was sentenced to 170 months imprisonment for distribution of methamphetamine.
Mr. Glass pled guilty to the charge on December 22, 2014. As part of his plea agreement, Mr. Glass admitted to selling methamphetamine on June 12, 2014 and stipulated to possessing 7.77 grams of actual methamphetamine. Mr. Glass’ prior state convictions include sale of methamphetamine, possession of methamphetamine, aggravated assault, possession of a firearm during the commission of a felony, and battery. Last month, an indictment was filed in the Superior Court of Newton County charging Mr. Glass with the offenses of violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act (3 counts), conspiracy to commit murder, aggravated assault (7 counts), violation of the Street Gang Terrorism and Prevention Act (15 counts) and possession of firearm during commission of a felony (7 counts). The Newton County prosecution is pending.
“Mr. Glass has demonstrated a dangerous propensity for drug dealing and violence,” said U.S. Attorney Michael Moore. “Today’s sentence of more than fourteen years in federal prison punishes Mr. Glass for his status as a career offender, and the citizens of Monroe will be safer while he serves time behind bars.”
The case was investigated by the Monroe Police Department. Assistant United States Attorney Peter Leary prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Buffalo Man Sentenced on Drug ChargesRead 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 Melvin Tucker, 29, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, crack cocaine, was sentenced to 36 months by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the prosecution, stated that between the summer of 2012 and April 3, 2013, the defendant, along with several co-defendants, possessed and distributed crack cocaine. Specifically, as part of this conspiracy, a co-defendant maintained several locations on the grounds of the Perry Housing Projects in Buffalo. Tucker purchased crack cocaine from this co-defendant and then distributed the drug to his own customers. Tucker did not sell cocaine base to customers on the grounds of the Perry Housing Projects, rather to customers in other parts of Buffalo.On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.
Tucker was arrested in April 2013 along with 11 others. Defendants Nannette Brown, Brandon Atkins, Eric Ross, and Phayon Redmond have also been convicted. Charges are pending against Tyshawn Bradley, Dallas McLamore, Tashawn Gay, David Varner, Latifah Donaldson, and Tara Robinson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Buffalo Man Sentenced for Wire FraudRead 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 Dewayne Vass, 30, of Buffalo, NY, who was convicted of wire fraud affecting a financial institution, was sentenced to 30 months in prison by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $2,400.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant was part of a scheme to defraud the government by obtaining money from the filing of false tax returns. Vass received the proceeds from one of the fraudulent tax returns which was filed with the Internal Revenue Service and for which the refund was placed on a prepaid debit card. The defendant used that card to obtain cash from an ATM totaling $6,248. The intended fraud of the Internal Revenue Service totaled $72,589.00.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of a joint investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division.
Buffalo Man Sentenced for Bank RobberyRead 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 Ronald McClendon, Jr., 27, of Buffalo, N.Y., who was convicted of bank robbery, was sentenced to five years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on July 5, 2013, co-defendant Adlyn Marie Echevarria Robles entered M&T Bank, located at 1580 Hertel Avenue in Buffalo. Robles passed the teller a demand note threatening the use of a weapon. The teller gave Robles a specific amount of money. Robles exited the M&T Bank branch with the money, and entered a vehicle driven by McClendon who drove away from the area.
On July 24, 2013, Robles entered the M&T Bank at 709 Elmwood Avenue in Buffalo and passed the teller a demand note threatening the use of a weapon. The teller gave Robles a specific amount of money. Robles exited the M&T Bank branch with the money, and once again entered a vehicle driven by McClendon who drove away from the area.
McClendon drove Robles to both M&T Bank branches knowing that Robles was going to rob the banks. Robles was sentenced to 24 months in prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force which includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
Black Disciples Gang Leader Sentenced to 15 Years in Prison for Drug DistributionRead the Press Release
CHICAGO — A high-ranking leader of the Black Disciples street gang was sentenced today to 15 years in federal prison after being convicted of narcotics distribution. The defendant, WALTER BLACKMAN, 52, of Gary, Indiana, pleaded guilty in August 2014 to distribution of illegal narcotics. Today’s sentence was imposed by United States District Court Judge Edmond E. Chang. Blackman has been in federal custody since his arrest in April 2013. He must serve at least 85 percent of his sentence.
Blackman was a high-ranking leader of the Black Disciples street gang in Chicago. He distributed drugs – including crack cocaine, powder cocaine, and heroin – and controlled the Black Disciples gang members’ drug trafficking in the city of Chicago’s far south side, including the violence-plagued Roseland and Altgeld Gardens communities. According to the government’s sentencing memorandum, Blackman admitted that he had approximately 500 subordinate gang members underneath his control in his territory in “the hundreds,” being part of the Roseland neighborhood of Chicago named for the three-digit streets.
Blackman’s charges in this case, namely sixteen counts of drug distribution, are a small sample of his larger drug trafficking operation in and outside the Black Disciples street gang – an operation that encompassed multiple drug types, multiple years, and multiple states. The defendant was a repeat and large scale supplier of controlled substances, selling and distributing crack cocaine, powder cocaine, and heroin in the Chicago area and elsewhere, including Wisconsin, to numerous wholesale customers.
The Court held Blackman responsible for distributing approximately 4,000 grams of crack cocaine, 1,000 grams of powder cocaine, and approximately 390 grams of heroin. Blackman also possessed firearms during his drug trafficking activities.
“This sentence holds the defendant accountable for the narcotics enterprise he controlled, and for his role in the accompanying gang and gun violence that harms our communities,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “I want to thank our local, state, and federal law enforcement partners for their brave and outstanding work which has resulted in a major impact on this street gang’s narcotics operation and illegal activities,” Mr. Fardon added.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Internal Revenue Service’s Criminal Investigation Division and the Chicago Police Department’s Gang Investigations Division also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF). The Indianapolis, Milwaukee, Minneapolis and Omaha offices of the FBI also assisted with the investigation.
The government was represented by Assistant U.S. Attorneys Carol A. Bell and Sarah Streicker.
Black & Decker Agrees to Pay $1.575 Million for Delay in Reporting Hazards in Cordless Electric LawnmowersRead the Press Release
The Department of Justice and the Consumer Product Safety Commission (CPSC) jointly announced today that Black & Decker (United States) Inc. has agreed to pay a $1.575 million penalty to settle allegations that it knowingly violated the reporting requirements of the Consumer Product Safety Act (CPSA) with respect to cordless electric lawnmowers that started spontaneously and that continued to operate after consumers released the lawnmower handles and removed the safety keys. Black & Decker has also agreed to establish and maintain a compliance program with internal recordkeeping and monitoring systems to keep track of information about product safety hazards. The settlement agreement is awaiting judicial approval.
Black & Decker has previously paid four civil penalties relating to Black & Decker’s untimely reporting of defects and risks presented by other Black & Decker products.
“Not for the first time, Black & Decker held back critical information from the public about the safety of one of its products,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will continue to protect the public against companies that put profits over safety.”
“Black & Decker’s persistent inability to follow these vital product safety reporting laws calls into question their commitment to the safety of their customers,” said Chairman Elliot F. Kaye of the CPSC. “They have a lot of work to do to earn back the public’s trust. Companies are required to report potential product hazards and risks to CPSC on a timely basis. That means within 24 hours, not months or years as in Black & Decker’s case.”
The complaint relates to cordless lawnmowers manufactured and sold by Black & Decker from 1995 to 2006. According to the complaint, in as early as November 1998, Black & Decker started receiving reports that its cordless electric lawnmowers continued to run even after a user released the lawnmower’s handle and removed the safety key, referred to as a continuous-run defect. A second defect involved lawnmowers that unexpectedly started even though the handle was released and the safety key removed, referred to as a spontaneous ignition defect.
The United States alleged that between 1998 and 2009, Black & Decker received more than 100 complaints regarding the continuous-run or spontaneous ignition defects. Dozens of these complaints specifically reported that the lawnmower continued to run or exhibited spontaneous ignition after the lawnmower’s handle was released and the safety key was removed. The United States further alleged that, after consulting an outside expert, the company knew in 2004 that the lawnmowers could continue to run even if a user released the handle and removed the safety key. Despite knowledge of all of this information, Black & Decker failed to report to the CPSC until early 2009, even though federal law requires “immediate reporting.”
The complaint further notes that at least two consumers informed Black & Decker that the lawnmower’s blades started unexpectedly while the consumer cleaned them, resulting in injury. The complaint states that in one case, the lawnmower continued to run, with the handle released and without the safety key, for several hours while the consumer sought treatment in a hospital emergency room for injury to the consumer’s hand, and after fire department personnel arrived and removed the blade.
In addition to the civil penalty, Black & Decker agreed to be bound by a consent decree of permanent injunction that prohibits the company from committing future violations of the CPSA. The consent decree requires that Black & Decker continue to implement and maintain a robust compliance program that ensures timely, truthful, complete and accurate reporting to the CPSC as required by law. In addition Black & Decker is subject to liquidated damages for each day the company is not in compliance with the consent decree.
The government is represented by former Trial Attorney Dan Baeza of the Civil Division’s Consumer Protection Branch, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel.
In agreeing to settle this matter, Black & Decker has not admitted that it knowingly violated the CPSA.
Bangor Man Sentenced to Probation for Possessing Marijuana in Acadia National ParkRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Alexander J. Batson, 22, of Bangor, was sentenced today in U.S. District Court by Magistrate Judge John C. Nivison to two years of probation and fined $1,000 for possessing marijuana. Batson pleaded guilty to the charge on February 6, 2014.
According to court records, on May 27, 2014, rangers at Acadia National Park spotted an open container of alcohol in Batson’s car. The rangers located Batson, who confirmed the vehicle and open container belonged to him. Batson also admitted to having marijuana and consented to a search of his car. The search revealed 63 grams of marijuana, an electronic scale, several plastic bags, and $3,200 in cash, all belonging to the defendant. Batson admitted that he sold marijuana.
The investigation was conducted by the National Park Service.
Armed Career Criminal Sentenced to More Than 16 Years for Gun ChargeRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Henry Noble (37, Atlantic Beach) to 16 years and three months in federal prison for being a felon in possession of a firearm. He pleaded guilty on December 5, 2014.
According to court documents, Noble was seen outside a young girl’s bedroom window at midnight on July 27, 2014. A neighbor saw him and called 911. Officers from the Atlantic Beach Police Department responded, they observed Noble at the bedroom window, and then ordered him to ground. Noble fled from the officers, but was apprehended after a short foot chase. The officers found a loaded .45 caliber pistol in his pocket. The firearm had been previously stolen during a residential burglary.
Noble was previously convicted of several felonies, including robbery, aggravated battery, and drug charges, and therefore is prohibited from possessing a firearm or ammunition under federal law. As such, he qualifies for an enhanced penalty under the Armed Career Criminal statute.
This case was investigated by the Atlantic Beach Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Jason Mehta and Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Amherst Man Arrested, Charged with Possession of 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 Timothy Murphy, 50, of Amherst, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, on October 15, 2014, law enforcement officers searched the defendant’s residence on Kings Highway in Amherst. The officers recovered a computer being used by Murphy. A subsequent forensic examination determined that the computer contained approximately 123 images and one video of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contained depictions of violence.
The defendant made an initial appearance before U.S. District Judge Hugh B. Scott. Murphy is being held pending a detention hearing on May 5, 2015 at 2:00 p.m.
The 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.
Alicia Keir Charged with Involuntary ManslaughterRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today the filing of an Information charging Alicia Keir, 24 of Demotte, Indiana, with involuntary manslaughter for the death of her newborn child by failing to summon medical attention
On October 10, 2011, Keir was aboard a cruise ship on the high seas, gave birth alone and failed to obtain any medical attention. The child died from exposure and lack of care. Jurisdiction for acts occurring upon the high seas can be in the district where a defendant resides. In conjunction with the Information, Keir has filed a Petition to Enter a Plea of Guilty to the involuntary manslaughter charge.
The United States Attorney’s Office emphasized that an Information is merely an allegation and not proof of guilt. All persons charged are presumed innocent until and unless proven guilty in court.
This case was the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by the Assistant United States Attorneys Randall M. Stewart and Gary T. Bell.
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Albuquerque Man Sentenced to Thirteen Years for Conviction on Federal Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gilbert Gonzales, 34, of Albuquerque, N.M., was sentenced today in federal court to 156 months in prison followed by three years of supervised release for violating the Hobbs Act and federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Gonzales was arrested in June 2013, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on May 25, 2013, in Bernalillo County, N.M. According to the criminal complaint, an APD officer found a firearm and ammunition in a vehicle Gonzales was driving during a routine traffic stop. At the time, Gonzales was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses in the 2nd Judicial District Court for the State of New Mexico.
In April 2014, a federal grand jury filed a five-count superseding indictment charging Gonzales with two counts of being a felon in possession of a firearm, possession of a stolen firearm, robbing a business engaged in interstate commerce, and brandishing a firearm during a crime of violence. According to the superseding indictment, Gonzales unlawfully possessed firearms in Bernalillo County on May 25, 2013 and June 5, 2013, and unlawfully possessed a stolen firearm on May 25, 2013. It also charged Gonzales with interfering with interstate commerce by robbing a commercial business at gunpoint on May 29, 2013, and with brandishing a firearm at an employee of the business during the robbery.
On Jan. 27, 2015, Gonzales pled guilty to the armed robbery of a business engaged in interstate commerce and to brandishing a firearm during that robbery. In his plea agreement, Gonzales admitted that on May 29, 2013, he obstructed interstate commerce by robbing Southwest Communications, located at 120 San Pedro SE in Albuquerque. Gonzales further admitted brandishing a firearm at an employee of that business during the armed robbery.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. The case was prosecuted by Assistants U.S. Attorneys David M. Walsh and Louis E. Valencia as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
16 Members and Associates of 7th Street Murda Squad Indicted on Federal Drug ChargesRead the Press Release
Memphis, TN – Sixteen members and associates of a violent, drug trafficking street gang were recently indicted on federal drug charges.
This morning members of the Memphis Drug Enforcement Administration Task Force arrested nine of the defendants named in the indictment. Assisting the task force in making the arrests were officers from the Memphis Police Department’s Organized Crime Unit, the Narcotics Unit from the Shelby County Sheriff’s Office, the Bartlett Police Department, the Collierville Police Department, the Germantown Police Department, the Tennessee Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The indictment and arrests are the result of an extensive investigation conducted by federal, state, and local law enforcement officials on the 7th Street Murda Squad, a criminal organization comprised of various gangs, including members of the Gangster Disciples and Vice Lords.
According to the indictment, the investigation of the 7th Street Murda Squad began in late 2012. During the investigation, officials were able to determine that members and associates of the gang were distributing large quantities of narcotics, primarily cocaine and methamphetamine, throughout the Western District of Tennessee.
Nine Defendants Arrested:
David Lenard Matlock, 32, Memphis
Joe Jones, 36, Memphis
Alvin Lewis, 41, Memphis
Carbin Junior Bullard, 55, Memphis
Albert Demarcus Calhoun, 23, Memphis
Marquice Bell, 28, Blytheville, AR
Christopher Adas Nelson III, 42, (In State Custody)
Roderick McNary, 38, Memphis
Charles Eugene Seaborn, 38, Memphis7 At-Large Defendants:
Tavious Swift, 35, Memphis
Ronnie Kenneth Malone, 45, Memphis
Larry Hill, 45, Memphis
Antonio Anderson, 29, Memphis
Cal Griffin, 39, Memphis
Eric Grove, 38, Memphis
Markeith DeWayne McDaniel, 35, MemphisFive firearms were also seized during the early morning round-up: an AK-47; two 12-guage shotguns; .44 caliber revolver; and 9mm Ruger.
Nine of the defendants face a sentence of up to life in federal prison if convicted: Matlock, Jones, Jackson, Swift, Malone, Hill, Anderson, and Bullard. Another five defendants face a sentence of up to 40 years if convicted: Bell, Grove, Calhoun, McDaniel, and Nelson.
The case was investigated by the Memphis DEA Task Force. Assistant U.S. Attorney Daniel French is representing the government in this case.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
10 Arrested in Large-Scale Drug and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Several South Texas men and one from Houston have been arrested on charges including a marijuana trafficking conspiracy and laundering monetary instruments during an Organized Crime Drug Enforcement Task Force Operation (OCDETF) dubbed “Operation Black Mask,” announced U.S. Attorney Kenneth Magidson.
Josue Estrada, 37, of Rio Grande City, was arrested today and is expected to make his initial appearance in McAllen tomorrow at 9:00 a.m. before U.S. Magistrate Judge Peter Ormsby.
Gustavo Garza-Avalos aka Tavo, 36, of Houston, was arrested yesterday as were Rio Grande City residents Roel Rodriguez, 18, Elijio Perez, 24, Juan Antonio Perez aka Nune, 24, Luis De La Cruz, 47, Edgar Marroquin-Benavides, 35, Ricardo Gonzalez, 40, Jairo Gonzalez-Hernandez aka Toluca, 27, and Manuel Everardo Lopez aka Aldo, 33. Garza-Avalos made his initial appearance today in Houston, while the others appeared before Judge Ormsby in McAllen. All were ordered into custody pending their respective detention hearings.
The indictment remains sealed as to those charged but not as yet in custody.
All were charged in a sealed indictment returned March 11, 2015, which was unsealed upon each arrest.
The indictment charges all with conspiracy to possess with the intent to distribute more than 1000 kilograms of marijuana between June 1, 2012, and the date of the indictment. Rodriguez and Elijio Perez are also charged with conspiracy to commit money laundering on Dec. 2, 2013. A third count also charges Elijio Perez with being felon in possession of a firearm on that date.
Also included in the indictment is a notice that the government is seeking a personal money judgment from the defendants in the amount of $250,000.
If convicted of the marijuana conspiracy, each faces not less than 10 and up to life in federal prison as well as a possible $10 million fine. If convicted of the money laundering charge, Rodriguez and Elijio Perez face up to 20 years in federal prison and a possible $500,000 fine (or twice the value of the monetary instrument or funds involved in the transactions or both). Elijio Perez further faces another 10 years in prison on the firearm charge, upon conviction.
The investigation leading to the indictment was conducted through OCDETF in Corpus Christi, McAllen, Falcon Dam and Houston by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service—Criminal Investigation, The Bureau of Alcohol, Tobacco, Firearms and Explosives, Border Patrol, Alice Police Department, sheriff’s offices in Jim Wells and Harris Counties, Starr County High Intensity Drug Trafficking Area Task Force, Texas Department of Public Safety and the United States Marshals Service.
The case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.***media Advisory***Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Assistant Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant Special Agent in Charge Mark E. Godshall of Homeland Security Investigations in Albuquerque, and Chief Gorden Eden, Jr., of the Albuquerque Police Department will hold a press conference to discuss charges recently filed pursuant to two federal initiatives TODAY, APRIL 29, 2016 AT 1:00 P.M. at the U.S. Attorney’s Office. No further information will be released until the press conference.
WHO: U.S. Attorney Damon P. Martinez for the District of New Mexico
Special Agent in Charge Carol K.O. Lee, FBI’s Albuquerque Division
Special Agent in Charge Will R. Glaspy, DEA’s El Paso Division
Assistant Special Agent in Charge Mark Murray, ATF’s Phoenix Division
Assistant Special Agent in Charge Mark E. Godshall, HSI Albuquerque
Police Chief Gorden Eden, Jr., APD
WHAT: Announcement of charges filed under two federal initiatives
WHEN: WEDNESDAY, APRIL 29, 2015, 1:00 P.M.
WHERE: U.S. Attorney’s Office
10th Floor Multi-Media Room (Reception on 9th Floor)
201 Third Street NW
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 12:45 pm. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Tuesday 28 April 2015
Yamada Manufacturing Co. Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
Yamada Manufacturing Co. Ltd. has agreed to plead guilty and to pay a $2.5 million criminal fine for its role in a conspiracy to fix prices and rig bids for manual (non-electric or non-hydraulic-powered) steering columns installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court of the Southern District of Ohio in Cincinnati, Yamada Manufacturing, based in Kiryu City, Gunma Prefecture, Japan, conspired to rig bids and fix prices of steering columns sold to certain subsidiaries of Honda Motor Co. Ltd. in the United States and elsewhere. According to the charge, Yamada carried out the conspiracy from at least as early as the fall of 2007 and continuing until as late as September 2012. Yamada Manufacturing has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.
“Yamada’s collusion deprived Honda and its U.S. customers the benefits of freely set prices for manual steering columns, a simple but necessary auto part,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Companies that conspire to undermine competition and harm U.S. consumers will continue to be held accountable for their crimes.”
According to the charge, Yamada Manufacturing, and others participating in the scheme, conspired through a meeting and conversations in which they discussed and agreed upon bids and price quotations to be submitted to Honda. Based on those discussions, Yamada Manufacturing and its co-conspirators sold steering columns to Honda at collusive and non-competitive prices and employed measures to keep their conduct secret.
Including Yamada Manufacturing, 35 companies and 29 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of more than $2.5 billion in criminal fines.
Yamada Manufacturing is charged with one count of price fixing and bid rigging in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office with assistance from the U.S. Attorney’s Office for the Southern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Yamada Information
Worley Women Sentenced for Theft from Coeur d'Alene TribeRead the Press Release
COEUR D'ALENE - Twilla Marie St. Pierre, 37, of Worley, Idaho, was sentenced today to five years of probation for theft from a tribal organization, the Benawah Market, U.S. Attorney Wendy J. Olson announced. U.S. District Judge William Fremming Nielsen, from the Eastern District of Washington, also ordered St. Pierre to pay restitution in the amount of $2,978.54 to the Coeur d’Alene Tribe, and $19,686.50 to Travelers Claims Hartford. St. Pierre pleaded guilty on February 3, 2015.
According to the plea agreement, St. Pierre admitted that on August 21, 2014, she, along with two others entered the closed market and stole cash and checks totaling approximately $22,650.
The case was investigated by Coeur d’Alene Tribal Police and Federal Bureau of Investigation (FBI).
Ware Police Department Enters into Agreement to Guarantee Effective Communication for Hearing ImpairedRead the Press Release
BOSTON – The U.S. Attorney’s Office entered into an agreement today with the Ware Police Department resolving a complaint that the Department lacked effective means to communicate with people who are deaf or hard of hearing.
“Equal access to justice requires that law enforcement be able to effectively communicate with all arrestees, witnesses, and victims to ensure they understand their rights,” said U.S. Attorney Carmen Ortiz. “Through their cooperation and commitment to implementing this agreement, the Ware Police Department is taking a critical step in effecting these necessary changes.”
The agreement requires the Ware Police Department to contract with a qualified sign language interpreting agency and provide sign language interpreters to arrestees, detainees, suspects, victims, witnesses, complainants, and visitors who are deaf or hard of hearing. The agreement also requires the Ware Police Department to establish nondiscriminatory policies and to train all officers on communication with persons who are deaf or hard of hearing.
This complaint arose under the Americans with Disabilities Act which requires the Ware Police Department, as a public entity, to ensure effective communication with people with disabilities.
This matter was handled by Assistant U.S. Attorneys Michelle Leung of Ortiz’s Civil Rights Enforcement Team and Kevin O’Regan, Chief of the Springfield Branch Office.
Two Plead Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARA AITCH, age 39, and WENDY ERVIN, age of 42, both of New Orleans, each pled guilty on Tuesday, April 28, 2015, to one count of conspiracy to commit wire fraud relating to the fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
On March 12, 2015, AITCH and ERVIN were indicted along with 18 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud and the BP fraud.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. In November, 2010, AITCH and ERVIN conspired with LISA CRINEL to apply for disaster assistance funds, and represent that they were employees of LACE, a reception hall owned and operated by LISA CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE HOME CARE SERVICES, INC.
Based on their fraudulent applications, the co-defendants received a total of $35,800 in GCCF funds, monies neither were entitled to receive.
AITCH and ERVIN both face a maximum term of imprisonment of five (5) years, a $250,000 fine, and three (3) years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for July 29, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the U. S. Department of Health and Human Services, Office of Inspector General in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Two Individuals Charged for Possessing Stolen Personal Identification Information at Fort Lauderdale-Hollywood International AirportRead the Press Release
Two Miami Dade County residents were charged for their participation in a stolen identity fraud conspiracy based on information discovered while they were boarding a flight at the Fort Lauderdale-Hollywood International Airport.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Godfrey Teekah, Jr., 28, and Phillip Collins, 29, both of Miami Gardens, were each charged by indictment with conspiracy to possess fifteen or more unauthorized access devices (social security numbers issued to other persons), in violation of Title 18, United States Code, Section 1029(b)(2), possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The defendants face a maximum statutory sentence of five years in prison for the conspiracy charge, ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to court documents and statements made in court, Teekah and Collins were allegedly in possession of the stolen personal identification information of real persons with the intent to use that information in order to defraud others. The defendants were allegedly stopped while attempting to board a flight at Fort Lauderdale-Hollywood International Airport in February of 2013. The defendants were allegedly found in possession of more than 326 names, social security numbers, and dates of birth, belonging to other individuals. In addition, the defendants allegedly possessed nine debit cards in the names of other individuals.
The defendants had their initial appearances today before United States Magistrate Judge Patrick M. Hunt.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Trio Sentenced for Drug RobberyRead the Press Release
Two Cedar Rapids men and one Cedar Rapids woman were sentenced in federal court today for their June 9, 2014, robbery of a drug dealer of his methamphetamine and cash. Leonard Landt, age 28, was sentenced to 77 months’ imprisonment in federal prison. Snofawn Torres, age 22, was sentenced to 44 months’ imprisonment in federal prison. Bart Waddell, age26, was sentenced to 57 months’ imprisonment in federal prison.
All three were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Each defendant must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
All three are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Patrick Reinert and Lisa Williams and investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Iowa Division of Narcotics Enforcement, Cedar Rapids Police Department and the Drug Enforcement Task Force comprised of Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-119.
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Toledo man sentenced to 12 years in prison for child pornographyRead the Press Release
A Toledo man was sentenced to 12 years in prison for receipt and distribution of child pornography and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jason H. Quinney, 40, was living in a YMCA shelter near two schools when he shared images of children engaged in sexually explicit conduct.
U.S. District Judge Jack Zouhary sentenced Quinney to 150 month in prison.
The investigating agency in this case is the United States Secret Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Michael J. Freeman.
Three Mexican nationals indicted for distributing black tar heroinRead the Press Release
A 24-count federal indictment was filed charging three Mexican nationals for conspiring to sell black tar heroin across Northern Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Victor Morales-Garcia, 38, of Columbus, Mario Perez Sanchez, age unknown, and Pedro Ortega-Gomez, 36, both of Madison, Ohio, are charged with conspiring to sell black tar heroin in Lake, Cuyahoga, Erie and Huron counties.
The men had a base of customers from Huron County who travelled on a daily basis to purchase the heroin. Most of these sales took place between the far west suburbs of Cuyahoga County to Painesville in Lake County, according to court documents.
This group utilized numerous men to act as couriers as deliver the heroin to customers. Many of these couriers were brought illegally to the United States from the Nayarit/Tepic area of Mexico to the Painesville area with the promise of working on a farm or in an automobile garage. Once in Ohio, these individuals became couriers for the drug trafficking group, according to court documents.
On April 6, law enforcement officials stopped a car being driven by Gomez and discovered a large bag of heroin, all individually packaged in small balloons. Subsequent searches led to the discovery of a .22-caliber revolver, numerous wire transfer receipts showing thousands of dollars being wired to Mexico, drug ledgers and cash, according to court documents.
“This is a drug trafficking group whose tentacles spread from Mexico to all over Northern Ohio,” Dettelbach spread. “They preyed on people for profit.”
“These three defendants operated a revolving door distribution center of black tar heroin,” Anthony said. “This is another great example of the tireless, collaborative efforts by the Northern Ohio Law Enforcement Task Force to take suppliers of dangerous narcotics off our streets. “
This case is the being prosecuted by Assistant U.S. Attorney Robert F. Corts following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Third Clarksville Man Sentenced to Life in Prison in Large Scale Drug Distribution ConspiracyRead the Press Release
Demetrius Duncan, aka Whirley, 34, of Clarksville, Tennessee, was sentenced today to life in prison for his role in a large cocaine distribution conspiracy, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. There is no parole from federal sentences.
Duncan, along with Chris Young, aka Soulja C and Alto Parnell, aka AP, were indicted in January 2011 and convicted at a jury trial on August 23, 2013, of participating in a lengthy conspiracy to distribute 500 grams or more of cocaine and 280 grams or more of crack cocaine. Duncan was also convicted of other charges including being a felon in possession of firearms, and possessing firearms in furtherance of a drug trafficking felony.
“The sentence imposed by the Court was mandated by federal law and reflects the harm that such defendants do to their communities, said U.S. Attorney David Rivera.” “Previous sentences imposed for a multitude of offenses apparently had no effect on deterring Duncan from future criminal behavior.”
Based on Duncan’s involvement in the drug conspiracy, and his previous convictions, which included three drug trafficking felonies and two felonies involving armed violence, Chief U.S. District Judge Kevin H. Sharp sentenced him to the mandatory sentence of life in prison on the drug conspiracy followed by a mandatory consecutive sentence of five years in prison for possessing a firearm in furtherance of drug trafficking.
The trial proof showed that Duncan regularly obtained drugs from Brian Vance, aka Bird, another Clarksville resident who was a ranking member of the Vice Lords street gang, and that the conspiracy involved at least 500 grams of powder cocaine and 280 grams of crack cocaine. Vance previously pleaded guilty and was sentenced to 200 months in prison.
Much of the drugs distributed in this conspiracy were supplied through Robert Porter of Clarksville, Tenn., who also pleaded guilty and has already been sentenced to 300 months in prison.
Duncan’s co-defendants at trial, Alto Parnell and Chris Young, were also previously sentenced to life in prison due to their involvement in the drug conspiracy, and their criminal records.
Duncan was one of 32 defendants charged in a lengthy investigation focusing on drug trafficking in the Clarksville, Tenn. area. The investigation uncovered substantial gang activity within the drug conspiracy and multiple firearms were seized during the take-down phase of the investigation in December 2010.
The investigation was conducted by the DEA, the Tennessee Bureau of Investigation and the Clarksville Police Department, with assistance from other state, local, and federal agencies. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne T. Ingram represented the United States.
Statement of U.S. Attorney Barbara L. McQuade on Officer ShootingRead the Press Release
“Yesterday's shooting was a tragedy and we offer our deep condolences to the family. Police work sometimes requires use of deadly force, but officers may use only as much force as is reasonable under the circumstances. In a situation like this, it is important to protect the rights of both the deceased and the officer. Therefore, we are closely monitoring the investigation."Statement by Attorney General Lynch on Supreme Court Arguments on Same-Sex MarriageRead the Press Release
Attorney General Loretta Lynch released the following statement regarding arguments before the U.S. Supreme Court on same-sex marriage:
“I am committed – as is this department – to ensuring equal dignity and equal treatment for all members of society, regardless of sexual orientation. As we argued today before the Supreme Court, same-sex couples deserve that treatment now. ”
St. Petersburg Man Pleads Guilty to Theft of Government FundsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Michael Cornell (53, St. Petersburg) today pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Cornell’s mother was the recipient of Social Security benefits. She died on February 2, 2010, and all of her benefits ended upon her death. The Social Security Administration did not receive notice of her death and, until October 2013, monthly benefit checks continued to be sent to a post office box that Cornell shared with his mother. Cornell forged his mother’s signature and deposited the checks into a bank account that they shared. He then transferred the funds to a personal account for his use. The total amount paid out after his mother’s death was $44,448. Of that, the SSA was able to recover $12,440 from Cornell’s bank accounts.
This case was investigated by the Social Security Administration – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.
Springfield Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today as the result of a child pornography investigation that began in Australia.
Joshua Ryan Clark, 27, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 11 years and eight months in federal prison without parole. The court also ordered Clark to pay $3,000 in restitution to his victims.
On Jan. 26, 2015, Clark pleaded guilty to receiving and distributing child pornography. According to court documents, Clark actively traded child pornography via e-mail, including depictions of prepubescent children (as young as three years old) engaged in all manner of sexual activity. Clark directly contacted other pedophiles via e-mail and text; Clark claimed in a chat with another pedophile that he had sodomized a 12-year-old victim (which the government has not been able to corroborate) and expressed a desire in another message to rape a child.
Law enforcement officers in Australia discovered several e-mail messages from Clark to a resident of Queensland, Australia, to which Clark had attached images of child pornography – one message contained 100 images of child pornography.
An FBI agent in Springfield received a 16 GB thumb drive from Yahoo! that contained the contents of Clark’s e-mail account, including 2,264 depictions of child pornography. Clark admitted that he used the e-mail account to trade child pornography with numerous individuals beginning in 2006 or 2007.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Sheffield Lake woman sentenced to 12 years in prison for production of child pornographyRead the Press Release
A Sheffield Lake woman was sentenced to 12 ½ years in prison for producing and possessing images of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Megan A. Boyer, 24, was sentenced to 150 months in prison after previously pleading guilty to two counts.
From February 27, 2013, through on or about February 13, 2014, Boyer did use, persuade, induce, entice and coerce a two minors to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct and such visual depiction was produced or transmitted using materials that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer, according to court documents.
Boyer is further charged with possessing a Verizon HTC cell phone, a removable secure digital card (SD card), and several Polaroid photographs that contained child pornography on February 13, 2014, according to court documents.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Elyria Office.
Rhode Island Real Estate Businessman Sentenced to Prison for Tax FraudRead the Press Release
A Cranston, Rhode Island, man was sentenced today to prison for tax fraud in the District of Rhode Island, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
John Fall was sentenced by U.S. District Judge John J. McConnell to serve 30 months in prison and three years of supervised release. On Jan. 26, after a federal jury trial in Providence, Rhode Island, Fall was convicted of one count of corruptly endeavoring to obstruct and impede the IRS, one count of tax evasion and two counts of aiding and assisting in the preparation and filing of false corporate tax returns.
According to the evidence presented at trial, Fall was a real estate consultant who bought, sold and brokered real estate. Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., and Broad Street Investments. Between 1999 and 2010, Fall used numerous nominee entities and business names to conceal his business and financial transactions. Fall also concealed his transactions using multiple bank accounts, including commingled or “warehouse” bank accounts in at least six states, as well as the entities Comfort Dental and Broad Street Investments. To further disguise business and financial transactions, Fall used aliases to conceal his ownership and control over his nominee entities. Fall filed false federal income tax returns for 1998 and 1999, and failed to file tax returns for the tax years 2000 through 2010. The IRS audited Fall for tax years 1998 through 2000, and assessed taxes due and owing totaling approximately $72,000.
Fall also caused the filing of false tax returns on behalf of Comfort Dental for the years 2005 through 2007. Fall caused his wife’s businesses to make payments to various entities that he controlled, which were falsely recorded on the corporate tax returns as deductible business expenses. When Comfort Dental and Fall’s wife were audited by the IRS in late 2008, Fall attempted to obstruct the audit by attempting to obstruct his wife’s compliance with an IRS summons and by encouraging his wife’s accountant to not provide the IRS with information requested. Instead, Fall provided false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS – Criminal Investigation, who investigated the case. Ciraolo also thanked Assistant Chief John Kane and Trial Attorney Jeffrey Bender of the Tax Division, who prosecuted the case, and the U.S. Attorney’s Office of the District of Rhode Island for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Real Estate Businessman Sentenced to Prison for Tax FraudRead the Press Release
WASHINGTON - A Cranston, Rhode Island, man was sentenced today to prison for tax fraud in the District of Rhode Island, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
John Fall was sentenced by U.S. District Judge John J. McConnell to serve 30 months in prison and three years of supervised release. On Jan. 26, after a federal jury trial in Providence, Rhode Island, Fall was convicted of one count of corruptly endeavoring to obstruct and impede the IRS, one count of tax evasion and two counts of aiding and assisting in the preparation and filing of false corporate tax returns.According to the evidence presented at trial, Fall was a real estate consultant who bought, sold and brokered real estate. Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., and Broad Street Investments. Between 1999 and 2010, Fall used numerous nominee entities and business names to conceal his business and financial transactions. Fall also concealed his transactions using multiple bank accounts, including commingled or “warehouse” bank accounts in at least six states, as well as the entities Comfort Dental and Broad Street Investments. To further disguise business and financial transactions, Fall used aliases to conceal his ownership and control over his nominee entities. Fall filed false federal income tax returns for 1998 and 1999, and failed to file tax returns for the tax years 2000 through 2010. The IRS audited Fall for tax years 1998 through 2000, and assessed taxes due and owing totaling approximately $72,000.
Fall also caused the filing of false tax returns on behalf of Comfort Dental for the years 2005 through 2007. Fall caused his wife’s businesses to make payments to various entities that he controlled, which were falsely recorded on the corporate tax returns as deductible business expenses. When Comfort Dental and Fall’s wife were audited by the IRS in late 2008, Fall attempted to obstruct the audit by attempting to obstruct his wife’s compliance with an IRS summons and by encouraging his wife’s accountant to not provide the IRS with information requested. Instead, Fall provided false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS – Criminal Investigation, who investigated the case. Ciraolo also thanked Assistant Chief John Kane and Trial Attorney Jeffrey Bender of the Tax Division, who prosecuted the case, and the U.S. Attorney’s Office of the District of Rhode Island for their substantial assistance.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Readout of Justice Department Officials' Visit in BaltimoreRead the Press Release
The Department of Justice released the following readout of meetings attended by senior department officials to address the ongoing situation in Baltimore:
At the direction of Attorney General Loretta Lynch, the head of the Civil Rights Division, Vanita Gupta, the director of the Community Oriented Policing Services (COPS) office, Ron Davis, and the head of the Community Relations Services (CRS) office, Grande Lum, participated in several meetings today with city leadership, law enforcement, faith leaders, young people and members of the community to discuss the unrest in Baltimore following the death of Freddie Gray. Department officials reiterated their offer to the city to provide federal resources, such as technical assistance to the Baltimore Police Department. Department officials also reaffirmed their commitment to expeditiously and thoroughly carryout the ongoing, independent civil rights investigation into the death of Mr. Gray.
The COPS office assured law enforcement and the community members that the Collaborative Reform Review into the Baltimore Police Department will continue and that the department plans to announce their initial report in the coming weeks. COPS encouraged faith leaders and members of the community who attended the meetings to participate in the Collaborative Reform Initiative and share their stories and provide information that may be useful to the team leading the review. Department officials heard from residents about concerns regarding the Baltimore Police Department and the lack of trust that they feel exists between the police and community.
CRS shared that their conciliators have been on the ground in Baltimore since Thursday and will continue to bring in staff as necessary to help open lines of communication within the community and between the community and local officials.
The department officials thanked community members that have been engaged in constructive discussions, discouraging violence and encouraging peaceful demonstrations. The department officials met with the officer who is still hospitalized after being injured during the violence on Monday afternoon and reiterated that officer safety must remain a priority. Department officials also met with the family of Mr. Gray and expressed their condolences on behalf of the department.
The department officials provided continuous updates throughout the day to Attorney General Lynch and her closest advisors.
Pinedale Man Sentenced to Ten Years in Prison for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Alvin Charley, 36, an enrolled member of the Navajo Nation who resides in Pinedale, N.M., was sentenced today in Albuquerque, N.M., to 120 months in federal prison followed by three years of supervised release for his voluntary manslaughter conviction.
According to court filings, Charley killed another Navajo man on Aug. 15, 2014, by stabbing him in the chest. The crime occurred on the Navajo Indian Reservation in McKinley County, N.M., during a fight between Charley and the victim.
On Jan. 28, 2015, Charley pled guilty to a felony information charging him with voluntary manslaughter. In entering his guilty plea, Charley admitted stabbing the victim in the chest during a fight that began after the two men had been drinking alcohol and arguing.
This case was investigated by the Albuquerque and Gallup offices of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Parkersburg cocaine and heroin dealer pleads guilty in federal courtRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man who had cocaine, heroin, and cash pleaded guilty today to a federal drug charge, announced U.S. Attorney, Booth Goodwin. Dustin Keith Jarvis, 34 pleaded guilty to possession with intent to distribute cocaine today before United States District Judge John T. Copenhaver, Jr. in Charleston.
On April 23, 2014, drug task force officers executed search warrants at Jarvis’ apartment and his rented storage unit in Mineral Wells, West Virginia. Among other items, police seized approximately 120 grams of cocaine, 380 grams of heroin and more than $12,000 in cash. This case is part of a larger cooperative investigation by drug task forces in Wood County, West Virginia and Washington County, Ohio.
Other individuals prosecuted in federal court as part of this investigation include Brent J. Sidwell who pleaded guilty on April 24, 2015, to conspiracy to distribute more than 100 kilograms of marijuana, Timothy Fields who was sentenced to six years in federal prison for conspiracy to distribute cocaine and marijuana, and David Naylor who pleaded guilty to conspiracy to distribute marijuana.
Jarvis faces up to 20 years in prison, and a $1 million fine when sentenced on August 11, 2015.
This case represents the ongoing cooperation between the Parkersburg Drug & Violent Crime Task Force, Washington County, Ohio Major Crimes Task Force, and the Internal Revenue Service. Assistant United States Attorney, Joshua Hanks is in charge of the prosecution.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Palm Beach County Gastroenterologist Sentenced for His Role in an Income Tax Fraud SchemeRead the Press Release
Dr. Krishna Tripuraneni, 56, of Palm Beach County, was sentenced yesterday by U.S. District Court Judge Darrin P. Gayles to two years in prison, to be followed by one year of supervised release and two hundred hours of community service, for his participation in an income tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, made the announcement.
Tripuraneni had previously pleaded guilty to one count of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1).
According to court documents, Tripuraneni, a physician licensed in the State of Florida who specializes in the field of Gastroenterology, filed fraudulent income tax returns. Tripuraneni's primary place of business is Palm Beach Gastroenterology Consultants LLC (“PBGC”), Wellington, Florida. Tripuraneni also operates two other businesses from this same address, identified as Palm Beach Surgery Center (“PBSC”) and PB Anesthesia Associates, LLC (“PBA”). Tripuraneni is the listed owner of record of PBGC and the Manager and Registered Agent for PBSC and PBA in Florida Corporate records.
For the tax years 2004 to 2008, Tripuraneni knowingly and willfully underreported his income from the above mentioned entities. Tripuraneni received income in the form of direct compensation, distributions, and corporate funds and used these payments to cover personal expenditures. This resulted in the filing of false corporate and personal tax returns by Tripuraneni.
Tripuraneni utilized funds from the above companies to pay for expenses related to a new home that he built in Manalapan, Florida, payments on condominiums that he had purchased, interior design improvements to his residences, and tuition payments for his children. Some of these payments were then fraudulently classified as professional consulting, building repairs, and miscellaneous expenses by the referenced companies.
These falsified profit and loss statements, which included the improper payments, were used by a tax preparer to file Tripuraneni’s corporate and personal income tax returns. Tripuraneni caused the preparation and filing of a false 2006 U.S. Income Tax Return for an S Corporation, IRS Form 1120S; a U.S. Return of Partnership Income, IRS Form 1065 and a U.S. Individual Income Tax Return, IRS Form 1040. These returns were false in that the corporate returns included fraudulent business expenses which reduced the corporations’ income and failed to include the diverted corporate income and to correctly report the defendant’s share of the income generated by these companies, thereby understating the defendant’s total income and the tax due and owing on his personal return.
The false returns resulted in the following misrepresentations and outstanding taxes:
Tax Year Underreported Income Outstanding Taxes 2004 $3,256,616 $1,139,815 2005 $3,940,641 $1,369,581 2006 $4,158,162 $1,533,048 2007 $3,688,283 $1,291,940 2008 $3,084,364 $1,049,593 TOTAL $18,128,066 $6,383,977Mr. Ferrer commended the investigative efforts of the IRS-CI, FBI and DCIS. This case was prosecuted by Assistant U.S. Attorney Christopher J. Clark.
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.justice.gov/usao-sdfl. 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.
Oceanside Lawyer Sentenced to 12 Years in Prison for Defrauding Thousands of Distressed Homeowners in $13 Million Loan Modification SchemeRead the Press Release
SAN DIEGO – Two defendants were sentenced today for their roles in defrauding more than 3,000 homeowners across the nation through a sham law firm in Oceanside, California.
Dean Gregory Chandler, the former President, Chief Executive Officer, and attorney for the company, 1st American Law Center, was sentenced to 144 months. Michael Eccles, a manager in the company’s telemarketing call center, was sentenced to 60 months.
The two defendants were each convicted of multiple felony counts in November 2014, after a three-week jury trial. Chandler was convicted of 8 felony counts: three counts of mail fraud, three counts of wire fraud, and one count of conspiracy and money laundering. Eccles was convicted of five counts: conspiracy and two counts each of mail fraud and wire fraud.
The 1st American Law Center Scheme
According to evidence presented at trial, Chandler created 1st American Law Center in 2009 in partnership with convicted drug trafficker Gary Bobel (who has been separately convicted and sentenced for his role in the scheme). Chandler arranged to have Bobel oversee the call center and its teams of telemarketers, who pitched loan modification services on behalf of the law center. Those telemarketers, including Eccles, promised potential clients that a panel of attorneys would pre-screen applicants’ financial information to ensure that only the most qualified applicants would be approved as clients of the law firm; that a team of attorneys would negotiate with clients’ mortgage lenders; that those attorneys would draft all documents to be submitted to the mortgage lenders; that the “attorney retainer fee,” which averaged $3,495, would be preserved in an attorney-client trust account until the client was satisfied; and that clients were protected by a money-back guarantee.As presented at trial, Michael Eccles was promoted to manager of the call center in December 2009, and he took advantage of the new position to script additional lies for the telemarketers to use with clients, including that the law firm had been in business since 1992; that they had been successfully modifying loans for over 20 years; that they had helped over a hundred thousand homeowners; and that it took attorneys on average 200 hours to complete a successful loan modification – all to suggest that the clients could take hope and comfort in the expertise and established success of the “law firm” they had hired. The telemarketers even persuaded homeowners to pay the company=s fees instead of using their limited funds to stay current on their mortgage payments.
Witness testimony and documentary evidence at trial proved that Chandler had almost no role in the loan modification process, and that nearly all of the statements made by telemarketers to the clients were lies. Chandler, the attorney, did not pre-screen all of the applications or negotiate with lenders. Rather than successfully modifying 98% of their client’s mortgages, as they claimed, the firm failed to modify three out of every four loans. Instead of keeping clients’ payments in an attorney trust account, they were funneled into various other accounts to pay co-schemers, sales commissions, and company expenses. Instead of having funds available to deliver on its money-back guarantee, the firm failed to provide refunds to untold numbers of clients who requested them.
For his part, Chandler served as the face of the law firm, and the firm’s commercial, website, and brochure featured Chandler’s name, image, and state bar license number. Chandler reviewed telemarketer call scripts submitted to him for approval, and also listened in real time and on recordings to telemarketer calls to clients.
Chandler Lied While Trying to Stay One Step Ahead of the Feds
According to evidence at trial, however, Chandler’s chief role was to mislead regulatory and enforcement agencies that threatened the law firm’s profitable operations. In that capacity, in October 2009 Chandler lied under oath in a sworn declaration to an Assistant Attorney General at the California Department of Justice. Multiple witnesses testified that the statements in Chandler’s declaration were false. And when the constant customer complaints threatened the company’s bottom line, Chandler also lied repeatedly to the Better Business Bureau in efforts to try to inflate the law center’s sagging ratings. For his role in the scheme, Chandler earned over $275,000 in about a 14-month period. In July 2010, after the Federal Bureau of Investigation and Internal Revenue Service executed a search warrant at his law firm, Chandler also drained one of the firm’s bank accounts of $16,500 and used it for his own benefit, instead of to pay employees or refund victims. This transaction was the basis of the money laundering charge.Victims Speak
During the trial, multiple victims of the defendants’ fraudulent scheme came from across the country to testify about their experiences. For example, a couple from Evansville, Indiana, both in their 70s, related how they contacted 1st American Law Center to avoid losing the home where they had spent 27 years raising a family, which was specially modified to accommodate their paraplegic son’s wheelchair. Due to medical problems, which forced the husband to retire as an auto mechanic, the couple fell behind on their payments. The couple put their faith in the promise that an attorney would negotiate with their lender. They also counted on the money-back guarantee if the firm was unsuccessful. The couple ultimately lost their home, and their money.With today’s sentencings, thirteen individuals have now been sentenced as a result of the fraudulent operation of 1st American Law Center. Gary Bobel received a sentence of 92 months. Telemarketer Shelveen Singh, who operated out of Riverside, was sentenced to 110 months. Other convicted telemarketers include Travis Iverson, Scott Spencer, Johnny Hearn, Anthony Calandriello, Mark Spencer, and Roger Jones. Information Technology Director Steven Gersztyn was convicted and sentenced for lying to federal agents during the investigation of the case, and Amy Hintz and Sarah Grimm were each convicted of theft of government property for stealing documents while making copies of evidence in the FBI’s custody.
Federal Law Enforcement Condemns Loan Modification Schemers
United States Attorney Laura E. Duffy commented, “The real tragedy of this case is that the defendants chose to profit from the suffering of others. In difficult economic times, they exploited a particularly vulnerable segment of our population—homeowners who were desperately trying to make ends meet and stay in their homes.”“Mr. Chandler and Mr. Eccles misused and abused their positions of trust to prey upon those who were financially vulnerable and desperate to save their homes,” said FBI Special Agent in Charge Eric S. Birnbaum. “The sentences imposed today reaffirm our commitment to hold accountable the guilty who profit by taking advantage of vulnerable people.”
“The defendants used a slew of lies to sell their loan modification services and obtain money from distressed homeowners throughout the United States,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “Loan modification scams thrived for a time, but that time is gone, and as the sentences imposed today show, it’s time for those responsible to face judgment.”
DEFENDANTS Case Number: 12CR4031-BEN Dean Gregory Chandler Age: 50 Fallbrook, California Michael Eccles Age: 35 Vista, California CHARGESDefendant Chandler was convicted of Counts 1-4 and 6-8.
Defendant Eccles was convicted of Counts 1, 3-4, 6 and 7.
Count 1: Conspiracy to commit mail fraud or wire fraud, in violation of 18 U.S.C. § 1349.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Counts 2-4: Mail Fraud, in violation of 18 U.S.C. § 1341.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Counts 6-7: Wire Fraud, in violation of 18 U.S.C. § 1343.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Count 8: Money Laundering, in violation of 18 U.S.C. § 1957.
INVESTIGATING AGENCIES
Maximum Penalties: 10 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Internal Revenue Service, Criminal InvestigationNorth Carolina Man Sentenced in New Mexico for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Travis Lavar Clark, 35, of Raleigh, N.C., was sentenced today in federal court in Las Cruces, N.M., to 51 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction. Clark’s crime of conviction involved possession of more than 750 grams of methamphetamine with intent to distribute.
Clark was arrested on Feb. 20, 2014, in El Paso, Texas, on an indictment filed in the U.S. District Court for the District of New Mexico on Feb. 19, 2014, charging him with possession of methamphetamine with intent to distribute on Nov. 12, 2013, in Doña Ana County, N.M.
On June 10, 2014, Clark pled guilty to the indictment and admitted that on Nov. 12, 2013, law enforcement officer found approximately 757.34 grams of methamphetamine and drug paraphernalia in the trunk of the vehicle he was driving. Clark also admitted that he was being paid to take the methamphetamine from El Paso to open up a “store” in Las Cruces to sell the methamphetamine.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force, and was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.