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11 June 2015
Honduran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE MARTINEZ-ROMERO, age 32, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced MARTINEZ-ROMERO to five months incarceration and a $100 special assessment fee. MARTINEZ-ROMERO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, MARTINEZ-ROMERO was encountered by federal agents on March 5, 2012. He had previously been removed from the United States on April 16, 2007.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Hidalgo Man Sentenced for Lasering a Texas Department of Public Safety HelicopterRead the Press Release
MCALLEN, Texas – A Hidalgo man has been ordered to federal prison following his conviction of pointing a laser at a Department of Public Safety (DPS) aircrew while they were piloting an aircraft, announced U.S. Attorney Kenneth Magidson. Jose Porfirio De Leon, 25, pleaded guilty Jan. 8, 2015.
Today, Chief U.S. District Judge Ricardo Hinojosa ordered De Leon to serve a total of 24 months in federal prison to be immediately followed by a one-year-term of supervised release.
On April 9, 2014, a DPS pilot and a tactical flight officer were operating an aircraft designated as DPS 118. They were conducting a law enforcement mission in support of the U.S. Border Patrol attempting to detain aliens who had illegally crossed into the United States. At approximately 9:45 p.m. west of Hidalgo, the aircrew was illuminated by a green laser beam several times.
Using night vision devices and onboard sensors, the aircrew was able to detect the source of the laser in the vicinity of the De Leon’s residence and directed law enforcement officers on the ground to the location. Subsequently, De Leon’s girlfriend brought the laser out of the residence and gave it to the officers. He later admitted to illuminating DPS 118 with a green laser.
De Leon will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI and DPS. Assistant U.S. Attorney (AUSA) Steven Schammel prosecuted the case with AUSA Alexandro Benavides handling the sentencing today.Hartville Woman Pleads Guilty to Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hartville, Mo., woman pleaded guilty in federal court today to using a minor to produce child pornography.
Chelese Penn, 25, of Hartville, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to both counts contained in a Jan. 20, 2015, federal indictment.
Penn admitted that she used a minor, identified as Jane Doe #1, to produce child pornography between July 1, 2012, and Oct. 3, 2014. Penn also pleaded guilty to receiving and distributing child pornography over the Internet during that time.
Under federal statutes, Penn is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
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."
Four Employees and Two Investors Sentenced in Health Insurance Fraud SchemeRead the Press Release
BOSTON – Six individuals were sentenced today for their role in a scheme perpetrated through HMA Direct, a Massachusetts health insurance company.
William O’Brien, of West Barnstable, Mass., was sentenced to 18 months in prison and three years of supervised release; Kevin Brown, of Chinquapin, N.C., was sentenced to one year and one day in prison and three years of supervised release; Michael Cassandro, of Middleton, R.I., was sentenced to eight months in prison and three years of supervised release; Shelley Lenkutis, of Framingham, was sentenced to three years of probation, the first six months of which is to be served in home confinement; Francis Gaetani, of Sutton, Mass., was sentenced to one year of probation, the first six months of which is to be served in home confinement; Ronald Anger, also of Sutton, was sentenced to one year of probation, the first four months of which must be served in home confinement. All of the defendants were ordered to pay restitution and forfeiture.
HMA Direct offered self-funded insurance plans to small businesses in New England. At the heart of HMA Direct’s business was “carving out” from its clients’ self-funded plans those employees who had significant health risks, and then, through false statements, arranging for those employees to be insured through traditional health insurance providers such as Blue Cross Blue Shield, Harvard Pilgrim, Tufts Health Plan, and United Healthcare.
O’Brien, Brown, Cassandro and Lenkutis participated in the carve-out scheme and subsequent lies to the health insurance providers. O’Brien also arranged for Gaetani and Anger, who were investors in HMA Direct, to pretend that they were satisfied customers of the company and to provide fake references to prospective clients. In addition, after state and federal agencies began investigating HMA Direct, Lenkutis and others destroyed and altered documents in order to conceal evidence of the illegal scheme.
Between August and September 2014, O’Brien, Brown, Cassandro and Lenkutis pleaded guilty to conspiracy to commit mail fraud, wire fraud, health care fraud, and false statements relating to health care matters. In addition, Lenkutis pleaded guilty to obstruction of justice; O’Brien, Brown and Cassandro pleaded guilty to health care fraud; and O’Brien pleaded guilty to wire fraud and obtaining customer information from a financial institution by false representations. Gaetani and Anger each pleaded guilty to wire fraud. The defendants were indicted in August 2011.
United States Attorney Carmen M. Ortiz; Susan Hensley, Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Regional Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Kristina E. Barclay and Gregg Shapiro.
Four Charged with Running an Investment Fraud SchemeRead the Press Release
United States Attorney James L. Santelle announced today that a 31-count indictment was handed down Tuesday charging four individuals with running an investment fraud scheme from 2008 through 2012. Todd Dyer, age 51, a resident of Lake Geneva, Wisconsin, was charged in all 31 counts, including 21 counts of wire fraud, five counts of money laundering, and five counts of transporting funds obtained from fraud across state lines. Nicholas Hindman, age 63, a resident of Glen Ellyn, Illinois, was charged with engaging in the scheme with charges of wire fraud, money laundering, and transporting funds obtained from fraud across state lines. Melvin Krumdick, age 73, a resident of Oak Park, IL, was also charged with engaging in the scheme and with wire fraud and money laundering counts. Tracy Bolton, age 47, a resident of Lakemoor, IL, was also charged with engaging in the scheme to defraud and with counts charging wire fraud and interstate transportation of funds obtained by fraud. Each wire fraud count carries a maximum penalty of 20 years in prison, the money laundering counts and interstate transportation of funds obtained by fraud each carry a maximum penalty of 10 years imprisonment.
According to the indictment, the defendants created and marketed investment entities that were involved in purchasing valuable and scarce Midwest farmland property. The defendants offered investors an opportunity to invest in these entities by selling investors common stock, limited partnership interests, and stock warrants. Despite representations to the contrary, none of the investment entities ever purchased any farmland. According to the indictment, investors gave the defendants approximately $1.5 million, and instead of using the funds to purchase farmland, the defendants diverted the money and used it for personal purposes or to pay costs necessary to continue the promotion of the fraud scheme.
The case was investigated by agents from the Internal Revenue Service Criminal Division, and agents the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Joseph R. Wall and Benjamin W. Proctor.
The public is cautioned that criminal charges do not constitute evidence of 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 West Brook Booster Club President Sentenced for Wire FraudRead the Press Release
BEAUMONT, Texas – A 53-year-old Beaumont man has been sentenced to federal prison for wire fraud violations in the Eastern District of Texas, announced U.S. attorney John M. Bales.
William Elzy Kelley, Jr., also known as Bo Kelley, pleaded guilty on Apr. 13, 2015, to wire fraud and was sentenced to one year and one day in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, Kelley was president of the West Brook High School Football Booster Club from 2012 to February 2014. During which time Kelley had access to the Booster Club’s funds, which were kept in separate checking and savings accounts. From Sep. 2013 through Feb. 2014, Kelley withdrew funds from these accounts to pay personal expenses, including, but not limited to rent payments at Stoneleigh Apartments, college tuition, and other household bills. Kelley carried out the scheme by withdrawing cash and depositing it into his personal bank account and by using the debit card and writing checks on the account for his personal use. Kelley is specifically charged with using the Booster Club debit card to make a payment to Stoneleigh Apartments in the amount of $922.42 on Dec. 3, 2013.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this or any other matter related to fraud, please call the Federal Bureau of Investigation at 409-832-8571.
This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, and the Jefferson County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Christopher T. Tortorice.
Former University of Kentucky Professor Sentenced for Wire FraudRead the Press Release
LEXINGTON — Dongping “Daniel” Tao, a former mining engineering professor at the University of Kentucky, who previously admitted to defrauding the University and a private company out of tens of thousands of dollars, has been sentenced to one year in prison.
Today, U.S. District Judge Karen Caldwell sentenced Tao, 52, for wire fraud. In addition to the 12-month term of incarceration, Judge Caldwell ordered that Tao pay a $10,000 fine, $59,411.86 in restitution to the University, and $2,280.00 in restitution to Georgia-Pacific, LLC, a private company for whom he worked as a consultant.
At his guilty plea in February of this year, Tao admitted that he received grant money from the University that was intended for mining engineering research, but used the money for his consulting business, paying for travel, materials, and services.
Tao then sought payment from his consulting clients, as reimbursement for expenses that he had actually used the University’s money to pay. Tao also admitted that he fabricated and altered invoices, to show fictitious costs, and submitted those invoices to the University and Georgia-Pacific for payment. Tao then received payment for these fraudulent expenses.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, FBI, jointly announced the sentence. The investigation was conducted by the FBI, the University Police Department, and the University Internal Audit Department. Assistant U.S. Attorney Andrew T. Boone prosecuted this case on behalf of the federal government.
Former House Speaker Gordon Fox Sentenced to 3 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Former Rhode Island House Speaker and former Vice-Chairman of the City of Providence Board of Licenses Gordon D. Fox, 53, of East Providence, was sentenced today to 3 years in federal prison for stealing $108,000 donated by campaign supporters to pay for personal expenses; his acceptance of a $52,000 bribe to advocate and move for issuance of a liquor license for an East Side restaurant while serving as Vice-Chairman of the City of Providence Board of Licenses in 2008; and his failure to account for these illegal sources of income on his tax returns.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Fox to serve two years supervised release upon completion of his prison term, and to pay $109,000 in restitution. Fox pleaded guilty on March 3, 2015, to wire fraud, bribery and filing a false tax return.
Fox has been ordered to self-surrender to begin serving his prison sentence by July 7, 2015.
An 18-month federal grand jury investigation led by prosecutors from the United States Attorney’s Office and the Rhode Island Attorney General’s Office, and investigators from the FBI, IRS and Rhode Island State Police, included the execution of court authorized search warrants at the former speaker’s home and State House office in March of 2014; the issuance of more than 200 subpoenas; the examination of more than 36,000 bank, government, personal, and campaign records belonging to former Speaker Fox; and forensic examinations of numerous computers and other electronic devices.
United States Attorney Peter F. Neronha commented, "It is a great irony that the man in Rhode Island once most responsible for securing the passage of laws somewhere along the way decided he no longer needed to follow them. And the laws former Speaker Fox chose not to follow were not just any laws, but rather laws designed to ensure the integrity of the legal and political process. In short, he violated his oath to the people of Rhode Island. He promised to do their business, not his own. His failure to keep that promise has brought him down today, and deservedly so.
“I want to thank the FBI and IRS Special Agents, Rhode Island State Police Detectives, and the federal and state prosecutors, whose outstanding work has secured justice and ensured that Rhode Island can chart a new path forward. Hopefully, Rhode Island can take advantage of it."
Attorney General Peter F. Kilmartin said, “From day one, I pledged the resources of my office, and when the allegations surrounding the acceptance of a bribe by Gordon Fox arose, and it was recognized that the federal statute of limitations for that offense had expired, this office made a commitment to the United States Attorney to proceed with the prosecution of that charge in state court if necessary. The State, working jointly with the United States Attorney, was ready to prosecute the bribery charge had this case not been resolved in Federal Court, and this case now stands as a testament to the commitment of both offices to aggressively prosecute corrupt public officials.”
Attorney General Kilmartin further stated, “Gordon Fox is not the first public official that our two offices have jointly prosecuted. While we can all hope it’s the last time we prosecute a public official, unfortunately history has taught us that it will happen again. But, let this serve as a warning to all public officials in this state, whether they are the Speaker of the House or a local board member - if you break the law, violate the trust the voters put in you, and abuse your office, you will be held accountable. You can be assured, as can the public, that we stand together, as federal and state prosecutors, with a single purpose, and will continue to work with our prosecutorial and law enforcement partners to ensure justice prevails.”
At the time of his guilty plea, Fox admitted to the Court that from February 2008 until March of 2014, just prior to the execution of federal search warrants at his State House office and home, he repeatedly used money received from campaign donors to pay for personal expenses. After transferring the money from his campaign accounts to his personal accounts, former Speaker Fox used the money - $108,000 in all - to pay the mortgage on his home, the loan payments on his car, and the balance on his personal American Express card, which he used to make purchases at various retail outlets. Fox admitted that in order to conceal his fraudulent conduct, he falsified his mandatory Rhode Island Board of Elections filings.
Additionally, Fox admitted to the Court that in 2008, while serving as an appointed member and Vice-Chairman of the City of Providence Board of Licenses, he accepted a $52,000 bribe from the owners of Shark Sushi Bar and Grill to help secure a liquor license for the establishment. At the time, there was considerable neighborhood opposition to the application. At a hearing in August 2008, Vice-Chairman Fox, pursuant to his agreement with the Shark Bar partners, spoke in detail regarding why the license should be awarded, and moved the Board to approve the Shark Bar’s application. The Board voted to approve the Shark Bar’s application.
Additionally, Fox admitted to the Court that for the tax years 2008 through 2012, he filed false tax returns, in that he knowingly omitted personal income he received as a result of his receipt of the bribe in 2008 and his fraudulent transfers from his campaign accounts to his personal accounts.
Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division said, “Gordon Fox accepted a bribe, used campaign donations for his own personal use and lied on his tax return. The FBI will continue to go after corrupt individuals like him who abuse their elected office and betray the public’s trust.”
“Public servants are entrusted by all of us to act in the best interests of the citizens they serve,” said Special Agent William Offord, IRS Criminal Investigation. “Gordon Fox betrayed the public’s trust and his sentencing today sends a clear message - corruption at all levels of government will not be tolerated. IRS-CI will continue to lend our financial expertise to these important prosecutions.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, "I commend all the Troopers, Detectives, FBI and IRS agents as well as the prosecutors from the US Attorney's office and Attorney General's office for their dedication and commitment to justice".
The case was jointly prosecuted by Assistant U.S. Attorneys Dulce Donovan and Adi Goldstein, and Rhode Island Assistant Attorney General J. Patrick Youngs.
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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/
United States Attorney’s Office
Jim Martin
(401) 709-5357Rhode Island Attorney General’s Office
Amy Kempe
(401) 274-440 ext. 2234###
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]Former Head of Real Estate Investment Firm Sentenced to 8 Years in Prison for the Sale of Unregistered SecuritiesRead the Press Release
SACRAMENTO, Calif. — Akbar Bhamani, 61, of Carmichael, was sentenced today by United States District Judge Troy L. Nunley to eight years in prison for two counts of selling unregistered securities, United States Attorney Benjamin B. Wagner announced. Bhamani was sentenced to 49 months on count one and 48 months on count two, to be served consecutively.
According to court documents, Bhamani was the founder and chief executive officer of Heaven Investments Holding Corporation (HIHC), a Sacramento company that was family-owned and operated. From February 2007 through August 2008, Bhamani and his employees solicited investors to participate in its investment programs, including the Tenants in Common (TIC) program. The TIC program was to use investor money to develop four properties, including a hotel in Oakland. HIHC sold fractionalized ownership interests to investors in each of the properties. These fractionalized interests qualified as securities, which defendant never registered with the SEC. Investors in HIHC lost between $2.5 million and $7 million.
During the sentencing hearing, a number of letters from investors who collectively lost millions of dollars were read describing the devastating impact of their losses, including in some cases, the loss of retirement money and life savings. In sentencing Bhamani, Judge Nunley commented that the defendant’s sole focus was on marketing and revenue, noting that he continued to misrepresent the profitability of the company to investors just months before filing for bankruptcy on behalf of the company in August 2008. Judge Nunley ordered the defendant to pay restitution, the amount of which will be determined at a later proceeding.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith prosecuted the case. The remaining defendants have pleaded guilty and await sentencing.
Former Dolton Certified Water Operator Charged with Falsifying Drinking Water Sampling DataRead the Press Release
Chicago — A former Dolton certified water operator was indicted yesterday on charges that, for several years, he routinely falsified paperwork to make it appear that Dolton was properly sampling its drinking water for microbiological contaminants. Dolton purchases its drinking water from the City of Chicago, which treats Lake Michigan water. However, Dolton is still required to test its drinking water for the presence of coliform bacteria in order to ensure that it has not become contaminated locally.
According to the six count indictment, between January 2008 and continuing through August 2013, Philip Kraus, 63, of Thornton, falsified records in order to conceal the fact that he was not sampling Dolton’s water system in accordance with the Safe Drinking Water Act and the U.S. EPA regulations that implement the Safe Drinking Water Act. Kraus will appear before for an arraignment at a later date determined by U.S. District Court.
Each month, Dolton was required to collect 25-30 samples of its drinking water from various points representative of the entire drinking water distribution system and thereafter to take those samples to a certified laboratory for testing. The samples were to be tested for the presence or absence of coliform bacteria – the presence of coliform bacteria in the drinking water may indicate that the drinking water is contaminated with microbiological contaminants. The indictment alleges that, contrary to the required sampling protocol, Kraus routinely collected multiple drinking water samples each month from only one or a few locations but falsely represented on Dolton paperwork and on forms submitted to Dolton’s contract laboratory that the samples were taken from representative locations throughout Dolton. The laboratory then transmitted the test results and the false sample site data to the Illinois EPA, which implements the federal Safe Drinking Water Act in Illinois pursuant to authorization from U.S. EPA. IEPA and U.S. EPA rely upon the test results and sample site data to ensure that Dolton was distributing to its residents and businesses drinking water free of microbiological contaminants. The contract laboratory is not accused of any wrongdoing.
The indictment charges Kraus with one count of engaging in a multi-year scheme between January 2008 and August 2013 to submit material false statements and five additional counts, each of which charges Kraus with causing the submission of a false statement to IEPA on a particular date in 2013.
The indictment alleges that all of the test results from the samples submitted to the contract laboratory were negative for the presence of coliform bacteria. The government does not possess information indicating that any person was harmed as a result of the alleged offenses.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Randall K. Ashe, Special Agent-in-Charge of the U.S. EPA’s Criminal Investigation Division in Chicago.
"The residents of the Village of Dolton relied upon Mr. Kraus, the Village’s Certified Water Operator, to make sure that their drinking water was properly sampled and tested for microbiological contamination." said Mr. Fardon. "Mr. Kraus violated the trust of the residents of Dolton, and, although we have no evidence that Mr. Kraus’ conduct caused any actual harm, it did create a very real risk of contamination going undiscovered."
Each of the six counts carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorney Timothy J. Chapman.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Former Cedar Rapids Fragrance Hut Owner Sentenced to Federal Prison for Selling Synthetic Drugs, Identity TheftRead the Press Release
The former owner of the Fragrance Hut in Cedar Rapids, who sold synthetic drugs from his store was sentenced yesterday to more than 11 years in federal prison.
Matthew James McCauley, age 39, from Cedar Rapids, Iowa, received the prison term after his September 29, 2014 guilty pleas to maintaining a premises for the distribution of controlled substances and aggravated identity theft.
At the earlier plea hearing, McCauley admitted he opened the Fragrance Hut, formerly located at 2902 First Avenue NE in Cedar Rapids, for the purpose of distributing illegal synthetic controlled substances, commonly referred to as “spice” or “K2.” Court documents reflect McCauley opened the Fragrance Hut in February 2014, and that the store sold synthetic cannabinoid products with names like “WTF,” “Diablo,” “Purple Haze,” “Fairly Legal,” “Green Giant,” and “Smoking Santa.” At the sentencing hearing, McCauley admitted to placing online orders for well over 2 kilograms of synthetic cannabinoid products for the store during May and June 2014. McCauley also admitted to having stolen the identity of another individual during and in relation to a wire fraud scheme. Court documents reflect McCauley created a false driver’s license using another individual’s name and date of birth. McCauley then used that name and date of birth to obtain a fraudulent line of credit to purchase jewelry at a local jewelry store.
McCauley was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. McCauley was sentenced to 134 months’ imprisonment, consisting of 110 months’ imprisonment on the drug charge, and two consecutive years on the identity theft charge. Special assessment totaling $200 were imposed, and he was ordered to make $4,975.21 in restitution to the identity theft victim. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
McCauley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are CR14-94-LRR and 14-MJ-186.
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Florida Man to Serve 46 Months in Prison for Insurance Fraud SchemeRead the Press Release
CONCORD, N.H. – Jerry Marino, 71 of Odessa, Florida was sentenced in United States District Court for the District of New Hampshire to 46 months in prison for a fraud scheme that involved the submission of fraudulent information to insurance companies, announced Acting United States Attorney Donald Feith.
The death benefit from a high value life insurance policy is usually between $5 million and $10 million. To purchase a policy, a person must be at least 70 years old and have a personal financial net worth that is at least equal to the policy’s death benefit. The premiums for a policy cost several hundred thousand dollars per year. For each high value policy he sold, an insurance agent in Manchester, Colin Lindsey, received a commission that was approximately equal to the policy’s annual premium.
While managing a real estate trust in Florida in 2006, Marino agreed to refer applicants for high value policies to Lindsey. In exchange, Lindsey agreed to pay Marino for each policy he sold to a person who was referred to him by Marino.
In 2006 and 2007, Marino provided documents to Lindsey that fraudulently stated that residential and commercial properties in the real estate trust had a collective value of more than $500 million, and that 41 different people owned approximately 4 percent of the trust. Marino knew the properties were worth substantially less than $500 million. He also knew that all 41 owners of the trust were people of modest financial means who were not financially eligible to buy high value policies.
As a result, fourteen high value policies were issued, Lindsey received commissions totaling more than $6.5 million, and Marino received referral fees totaling approximately $2.4 million. The fees were paid by checks that were mailed to Florida and through the electronic transfers of funds from a bank account in New Hampshire to bank accounts in Florida.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Bob Kinsella.
Fifth Defendant Charged with Attempt and Conspiracy to Provide Material Support to ISILRead the Press Release
Defendant Allegedly Was Part of ISIL Foreign Fighter Support Network and Solicited Funds to Send a Co-Defendant Overseas to Join ISIL
Earlier today, a second superseding indictment was unsealed charging Akmal Zakirov, 29, an Uzbeki national, with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The defendant, who is charged along with four Brooklyn, New York, residents whose arrests have previously been announced, is scheduled to be arraigned at 2:00 p.m. today before U.S. Magistrate Judge Viktor V. Pohorelsky of the Eastern District of New York.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Commissioner William J. Bratton of the New York City Police Department (NYPD) and Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York Field Office.
As alleged in the indictment and other court filings, the investigation began last year when Abdurasul Hasanovich Juraboev, one of Zakirov’s co-defendants, came to the attention of law enforcement. Juraboev posted on an Uzbek-language website that propagates ISIL’s ideology his offer to engage in an act of martyrdom on U.S. soil on behalf of ISIL, such as killing the President of the United States. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on Feb. 25, 2015, at John F. Kennedy International Airport in New York City, where he was attempting to board a flight to Istanbul. Juraboev previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States in March 2015.
Zakirov, co-defendant Abror Habibov and others allegedly helped to fund Saidakhmetov’s efforts to join ISIL. Specifically, Zakirov and Habibov discussed providing their own money to purchase Saidakhmetov’s plane ticket and to cover his travel expenses, and they also solicited money for that purpose from other individuals. In the week leading up to Saidakhmetov’s scheduled departure, several individuals transferred a total of approximately $2,400 into Zakirov’s personal bank account, funds which were intended to facilitate Saidakhmetov’s travel to join ISIL.
“Zakirov is the fifth to be charged as part of the network of individuals alleged to have conspired and attempted to provide material support to ISIL,” said Acting U.S. Attorney Currie. “Our efforts to investigate terrorist support groups are ongoing -- we are committed to disrupting and deterring those who seek to support ISIL, whether by lending themselves or their funds to ISIL’s cause.”
“Any material support of a terrorist organization not only threatens our national security but violates federal law,” said Assistant Director in Charge Rodriguez. “In this case, Zakirov is alleged to have been part of a team committed to financing terrorist efforts. Fortunately, the FBI’s Joint Terrorism Task Force identified and stopped such activity. We will continue to work with our partners to uphold our mission and proactively protect the people of the U.S., both home and abroad, through these types of intelligence-based investigations.”
“This indictment illustrates the NYPD’s ongoing commitment to stem the efforts of organizations such as ISIL who do not hesitate to promote their violent ideology both here and abroad,” said Commissioner Bratton. “I would like to commend the efforts of the Joint Terrorism Task Force investigators, along with our many law enforcement partners, who continue to thwart the efforts of those who would advance a terrorist agenda.”
“Providing material support to terrorist organizations that seek to do us harm represents a clear and present danger to the United States,” said Special Agent in Charge Parmer. “Today’s indictment should serve as a warning to all those who attempt to assist ISIL and other terrorist organizations that no stone will go unturned to identify, apprehend, and have them prosecuted to the fullest extent of the law.”
If convicted, Zakirov faces a maximum sentence of 30 years in prison. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined Acting U.S. Attorney Currie in extending his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state and local agencies from the region. The case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s Counterterrorism Section.
Zakirov Superseding Indictment
Fifth Defendant Charged with Attempt and Conspiracy to Provide Material Support to ISILRead the Press Release
Earlier today, a second superseding indictment was unsealed charging Akmal Zakirov with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The defendant, who is charged with four Brooklyn residents whose arrests have previously been announced, is scheduled to be arraigned at 2:00 p.m. today before United States Magistrate Judge Viktor V. Pohorelsky at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; William J. Bratton, Commissioner, New York City Police Department (NYPD); and Raymond R. Parmer, Jr., Special Agent-in-Charge, Homeland Security Investigations (HSI), New York.
As alleged in the indictment and other court filings, the investigation began last year when Abdurasul Hasanovich Juraboev, one of Zakirov’s co-defendants, came to the attention of law enforcement. Juraboev posted on an Uzbek-language website that propagates ISIL’s ideology his offer to engage in an act of martyrdom on U.S. soil on behalf of ISIL, such as killing the President of the United States. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on February 25, 2015, at John F. Kennedy International Airport where he was attempting to board a flight to Istanbul, Turkey. Juraboev previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States in March 2015.
Zakirov, co-defendant Abror Habibov, and others, allegedly helped to fund Saidakhmetov’s efforts to join ISIL. Specifically, Zakirov and Habibov discussed providing their own money to purchase Saidakhmetov’s plane ticket and to cover his travel expenses, and they also solicited money for that purpose from other individuals. In the week leading up to Saidakhmetov’s scheduled departure, several individuals transferred a total of approximately $2,400 into Zakirov’s personal bank account, which funds were intended to facilitate Saidakhmetov’s travel to join ISIL.
“Zakirov is the fifth to be charged as part of the network of individuals alleged to have conspired and attempted to provide material support to ISIL,” stated Acting United States Attorney Currie. “Our efforts to investigate terrorist support groups are ongoing -- we are committed to disrupting and deterring those who seek to support ISIL, whether by lending themselves or their funds to ISIL’s cause.” Mr. Currie extended his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state, and local agencies from the region, and to the FBI Norfolk Division.
“Any material support of a terrorist organization not only threatens our national security but violates federal law. In this case, Zakirov is alleged to have been part of a team committed to financing terrorist efforts. Fortunately, the FBI’s Joint Terrorism Task Force identified and stopped such activity. We will continue to work with our partners to uphold our mission and proactively protect the people of the U.S., both home and abroad, through these types of intelligence-based investigations,” said FBI Assistant Director-in-Charge Rodriguez.
“This indictment illustrates the NYPD’s ongoing commitment to stem the efforts of organizations such as ISIL who do not hesitate to promote their violent ideology both here and abroad,” said Police Commissioner Bratton. “I would like to commend the efforts of the Joint Terrorism Task Force investigators, along with our many law enforcement partners, who continue to thwart the efforts of those who would advance a terrorist agenda.”
“Providing material support to terrorist organizations that seek to do us harm represents a clear and present danger to the United States,” said HSI Special Agent-in-Charge Parmer. “Today’s indictment should serve as a warning to all those who attempt to assist ISIL and other terrorist organizations that no stone will go unturned to identify, apprehend, and have them prosecuted to the fullest extent of the law.”
If convicted, Zakirov faces a maximum sentence of 30 years in prison. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Peter W. Baldwin are in charge of the prosecution, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s Counterterrorism Section.
The Defendant:
AKMAL ZAKIROV
Age: 29
Nationality: Uzbeki
E.D.N.Y. Docket No. 15-CR-095 (WFK)
Federal Grand Jury Indicts Iraqi-Born US Citizen for Making False Statement to the FBIRead the Press Release
DALLAS – A Mesquite, Texas man, Bilal Abood, 37, has been charged in a federal indictment with one count of making a false statement to a federal agency, announced Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office.
Abood has been in federal custody since his arrest last month by special agents with the FBI on a related criminal complaint.
According to the indictment, on March 29, 2013, Abood attempted to depart the United States from Dallas Fort Worth International Airport, but was not allowed to board the flight. While at the airport, FBI agents asked Abood about his planned travel, and he initially advised agents that he was merely planning to travel to Iraq to visit family. During a subsequent interview, agents asked Abood again about his attempted travel — specifically asking if he intended to go to Syria to fight, and Abood stated that was not his intent. Later in that interview, however, Abood admitted that his intent on March 29, 2013, was to go to Syria to fight against the Assad regime, claiming he wanted to fight with the Free Syrian Army (FSA).
On approximately April 29, 2013, Abood left the United States through Mexico and traveled through various countries into Turkey. Upon Abood’s return to the United States on Sept. 16, 2013, the FBI interviewed him again. In that interview, Abood admitted traveling to Syria through Turkey, and claimed that he went there to fight with the FSA and that he had stayed in an FSA camp. Abood stated that he became frustrated with a lack of action and wanted to return to the United States. He denied ever providing financial support to al-Nusrah Front (ANF), the Islamic State of Iraq and the Levant (ISIL) or any other terrorist organization.
A review of Abood’s computer on July 9, 2014, pursuant to a federal search warrant, revealed Abood pledged an oath to Abu Bakr al-Baghdadi, the leader of ISIL, on June 19, 2014. The search warrant also revealed that Abood had been on the internet viewing ISIL atrocities such as beheadings, and had used his twitter account to tweet and retweet information on al-Baghdadi.
On April 14, 2015, FBI agents went to Abood’s residence to return his computer that was seized in the 2014 search warrant. Abood admitted to the agents that he knew it was a crime to lie to an FBI agent, and Abood denied to the agents that he had ever pledged allegiance to al-Baghdadi.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, Abood faces a maximum statutory sentence of eight years in federal prison and a $250,000 fine.
The case is being investigated by FBI’s Dallas Division. The prosecution is being handled by the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the National Security Division’s Counterterrorism Section.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3061
Columbia, South Carolina----United States Attorney Bill Nettles stated that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Three Indicted in Jewelry Store Robberies
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today an indictment charging Charles Eloys Johnson, 35, of San Leandro, California; Aquabeus Moore, age 34, of Riverdale, Georgia; and Jerry Harbin, age 29 of Antioch, California, with their roles in two separate jewelry store robberies.
The indictment alleges that all three defendants conspired to rob Sylvan Jewelers in Columbia, SC on February 19, 2015 as well as MP Demetre Jewelers in Charleston, SC on March 4, 2015. The three are also charged with robbing those locations, on those dates, as well as possessing a firearm during the respective robberies. The conspiracy and robbery counts carry up to twenty years imprisonment under 18 U.S.C. § 1951(a) and the gun charges carry a mandatory consecutive five years imprisonment under 18 U.S.C. § 924(c).
The indictment is the result of an investigation conducted by the Federal Bureau of Investigations, City of Charleston Police Department and Columbia Police Department. Assistant United States Attorney Nathan Williams of the Charleston office is prosecuting the case.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Doylestown Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA - Kurt Krumpholz, 55, of Doylestown, Pennsylvania, was charged today by indictment with attempting to entice a minor, production of child pornography, and receipt of child pornography announced United States Attorney Zane David Memeger.
The indictment alleges that from November 2014 through January 2015, Krumpholz enticed and coerced minors, who were 11 and 14 years old, to engage in sexually explicit conduct for the purpose of producing child pornography and did receive that child pornography.
The indictment also alleges that in January 2015, Krumpholz used the Internet to attempt to persuade an individual whom Krumpholz believed to be a minor to engage in illegal sexual activity.
If convicted the defendant faces a maximum possible sentence of life and a mandatory minimum term of incarceration of 15 years, a minimum five years up to a lifetime of supervised release, a $1.75 million dollar fine, mandatory restitution, forfeiture, and a $700 special assessment. .
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations, East Norriton Police Department, Montgomery County Detectives, and Bucks County Detectives and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Director of the University of South Carolina’s Center for Manufacturing and Technology Pleads Guilty to FraudRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gail Shurling, 62, has entered a guilty plea in federal court in Columbia to Wire Fraud, a violation of 18 U.S.C. § 1343. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose Shurling’s sentence after the U.S. Probation Office prepares a presentence report.
Evidence presented at the change of plea hearing established that Shurling was the Director of the Center for Manufacturing and Technology (CMAT) at the University of South Carolina. As director, Shurling submitted fraudulent documentation that allowed CMAT to obtain federal grant money. The fraudulent documentation indicated that work was completed for the center when it had not been. Additionally, Shurling approved contracts and payments to shell corporations that were controlled by friends, family members, and herself for work that was not completed. In total, Shurling submitted approximately $336,000 worth of fraudulent documentation to the University, the Government, and to the entity responsible for administering the grant money.
United States Attorney Bill Nettles stated, "Public corruption is not limited to elected officials, it extends to anyone who misuses the public's money or abuses the public's trust. The U.S. Attorney's Office, along with our law enforcement partners, will continue to fight public corruption in all its forms.”
Special Agent in Charge Duane Townsend of the United States Department of Commerce, Office of the Inspector General, commented, “the cooperative effort leading to this prosecution is yet another example of how Department of Commerce, Office of Inspector General’s Special Agents work diligently to disclose any criminal activity affecting Department-funded activities. This case will serve to bring to justice another perpetrator of fraud, recover taxpayer funds, and most importantly, serve as a deterrent to those who might consider abusing programs intended to benefit the public for personal enrichment. We very much appreciate the cooperation of the United States Attorney’s Office for supporting us in this mission.”
Mr. Nettles stated the maximum penalty for Wire Fraud is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by agents of the Office of the Inspector General, Department of Commerce, and the FBI. Assistant United States Attorney Jim May of the Columbia office is prosecuting the case.
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Department of Justice Announces 50 States and Territories Have Committed to Ending Prison RapeRead the Press Release
In the second year of the implementation of the standards set forth in the Prison Rape Elimination Act (PREA), 50 jurisdictions submitted statements of compliance or assurances that they commit to spend 5 percent of certain Department of Justice grant funds to come into compliance. In FY 2015, 10 states certified that they are in full compliance with the PREA standards. These states are Iowa, Maine, Mississippi, Missouri, New Hampshire, New Jersey, North Dakota, Oregon, Tennessee and Washington. In FY 2015, 40 jurisdictions submitted an assurance. In FY 2014, the first year of implementation of the PREA standards, 48 of the 56 jurisdictions subject to PREA were either in compliance or submitted assurances to spend 5 percent of certain grant funds to come into compliance. The department saw a significant increase in states that have attained full compliance this year. In FY2014 two states submitted certifications.
“The very hard work of implementing new policies and practices, and transforming cultures in confinement agencies and facilities in ways that promote the sexual safety of inmates, residents and detainees, is well underway,” said Assistant Attorney General Karol V. Mason of the Office of Justice Programs. “The large number of jurisdictions that submitted certifications and assurances this year to the Department of Justice, the significant numbers of agencies and facilities that are conducting PREA audits and the increasing support for PREA in the law enforcement and corrections fields suggest a building momentum. We are committed to increasing this momentum, and working with the remaining five states and the one territory that did not respond.”
Certifications, assurances and related documentation were submitted to the Bureau of Justice Assistance (BJA), a component of Department of Justice’s Office of Justice Programs (OJP), and are available at https://www.bja.gov/Programs/15PREA-AssurancesCertifications.pdf.
The PREA statute, which was passed in 2003 with unanimous support from both chambers of Congress, required the establishment of the national PREA standards for the detection, prevention, reduction and punishment of prison rape. The standards took effect on Aug. 20, 2012, and apply to federal, state and local confinement facilities which includes adult prisons and jails, juvenile facilities, lockups and community confinement facilities.
Understanding that the standards could take a number of years to fully implement, the PREA statute allows a governor whose state or territory is not yet in full compliance to submit an assurance to the Department of Justice that not less than 5 percent of certain Department of Justice grant funds will be used solely for the purpose of enabling the jurisdiction to achieve and certify full compliance with the standards in future years. A total of 56 jurisdictions are subject to PREA – 50 states, five territories and the District of Columbia. The six jurisdictions that are unwilling to commit department grant funds to implement the national PREA standards are subject to the loss of 5 percent of certain Department of Justice grant funds they would otherwise receive. In FY2014, eight jurisdictions were unwilling to commit department grant funds to implement the standards.
Information about grant funds impacted by PREA in FY 2014 and FY 2015 is available in the PREA section of BJA’s web page. This information includes lists of FY 2014 department grant reductions (in jurisdictions that submitted neither an assurance nor a certification) and reallocations (in jurisdictions that submitted an assurance) amounts by state and territory, and a summary of PREA implementation activities supported by FY 2014 Department of Justice reallocation grants. Department grant reduction and reallocation amounts for FY 2015, along with a summary of activities supported by reallocation grants, will be posted on BJA’s web page as soon as they are finalized.
To assist states and localities with implementation, BJA has funded the National PREA Resource Center to provide training and technical assistance for those in the field who are working to come into compliance with the standards. These resources are available at www.prearesourcecenter.org.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: BJA, the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. To learn more about OJP, visit www.ojp.gov.
Couple Arrested for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Alfred Dasilva, 46, of Greece, NY and Sharon Sexton, 45, of Gates, NY, were arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the investigation began when a school resource officer employed by the Gates Police Department was informed by a school official that Sexton was taking nude photos of a female student. The ensuing investigation determined that Sexton sent these photos to her boyfriend, Alfred Dasilva. Sexton was interviewed by law enforcement and admitted to both taking the photos and then sending them to Dasilva. She told officers that she took the photos and sent them to Dasilva because he asked her to, and that Dasilva used the naked photos to “fantasize.”The complaint also states that federal investigators examined Dasilva’s cellphone and also located a video of a child performing oral sex on Dasilva. The complaint identifies Sexton as the person who took the video. Several online chats were also recovered from the cellphone in which Sexton and Dasilva graphically discussed engaging in sexual conduct with children.
One of the text messages from Dasilva to Sexton referred to “kids at school.” At the time, Sexton was employed as a daycare worker at a local child care facility. Dasilva is also being prosecuted by the Monroe County District Attorney’s Office for sexual acts involving a minor. Anyone with information regarding Dasilva or Sexton’s contact or attempted contact with minors should call the Federal Bureau of Investigation in Rochester at 585-546-2220.
The defendants made an initial appearance this afternoon before U.S. District Judge Charles J. Siragusa and are being detained. A detention hearing is scheduled for June 15, 2015 at 10:00 a.m. before U.S. Magistrate Judge Marian W. Payson.
The criminal complaint is the culmination of a joint investigation by the Gates Police Department and the Federal Bureau of Investigation Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
The fact that the defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Convicted Felon Sentenced to 10 Years in Federal Prison for Possessing FirearmRead the Press Release
ABILENE, Texas — A convicted felon from Abilene, Texas, who pleaded guilty to a federal firearm offense, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Brandon Joseph Cormier, 26, was sentenced to 120 months in federal prison by Chief U.S. District Judge Jorge A. Solis. Cormier pleaded guilty in February 2015 to an indictment charging one count of being a felon in possession of a firearm.
According to documents filed in the case and information presented during court hearings, Cormier admitted that he is a convicted felon and that on September 10, 2014, he knowingly possessed a Bersa, 380 Plus, .380 caliber semi-automatic pistol. That same day, Cormier was allegedly involved in a shooting following a traffic stop by a Texas Department of Public Safety (DPS) officer in Nolan County. During that stop, Cormier allegedly retrieved a firearm from his vehicle and fired shots at the DPS officer.
The Texas Ranger Division of the Texas DPS and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Juanita Fielden prosecuted.
Conspirator Sentenced to over Five Years in Prison in Car Dealership Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Juan Carlos Willis, age 41, of Hyattsville, Maryland late yesterday to 61 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft in connection with a scheme to use the stolen identity of others to purchase expensive cars.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge James Murray of the United States Secret Service B Washington Field Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, Willis, Kenneth Watford, Flinton Newton and others obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, then posed as those individuals at automotive dealerships in order to apply for vehicle financing.Willis and his coconspirators filled out credit applications and obtained loans in the names of the identity theft victims to purchase, or attempt to purchase, expensive cars from dealers in Maryland and Virginia.They intended to either use the luxury vehicles themselves, or rent or sell them.
On June 23, 2012, Willis, Watford and a coconspirator used the identity of another person to complete and submit a credit application for $77,450 in financing at BMW of Silver Spring, Maryland, to purchase a 2011 BMW 750. On July 26, 2012, Watford was arrested while driving the BMW in Bowie, Maryland. Inside the BMW were the victim’s credit reports from three credit bureaus.
On July 19, 2012, Willis and Newton went to Capitol Cadillac in Greenbelt.Newton posed as another person whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the victim’s name.Willis used online access to an insurance policy written on Watford’s business to obtain proof of insurance in support of the vehicle purchase.
Later that evening, Willis and Newton drove to Mercedes-Benz of Silver Spring where Newton again posed as the victim.The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056.They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit.Willis again presented the auto insurance policy in Watford’s business name in support of the vehicle purchases.
The dealership manager saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Willis and Newton. Willis acknowledged that his role in the scheme was to locate vehicles and provide insurance information.
The total attempted loss as a result of the fraudulent scheme was between $400,000 and $1 million.
Flinton Newton, age 34, of Bartlett, Tennessee previously pleaded guilty in connection with the scheme and was sentenced to 42 months in prison.Following a six day trial, Kenneth Watford, age 55, of Bowie, was convicted by a federal jury on April 16, 2015 of conspiring to commit wire fraud, three counts of wire fraud, attempting to commit wire fraud, four counts of aggravated identity theft, possessing a firearm by a convicted felon, credit card fraud and two counts of attempted credit card fraud.Watford is scheduled to be sentenced on July 28, 2015 at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service, U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake and Special Assistant United States Attorney James I. Pearce, who prosecuted the case.
Clinton Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that that James Senior, 39, of Clinton, Maine pleaded guilty today in U.S. District Court to pharmacy robbery.Court records show that on March 31, 2015, Senior entered the Rite Aid Pharmacy in Newport, Maine, approached the pharmacy counter, presented a note that demanded oxycodone and threatened that employees would be harmed if they did not comply. While Senior waited, he told the employees to “hurry up” and “get moving.” He absconded with three bottles of oxycodone and hydrocodone-ibuprofen pills.
Law enforcement officers released a video of the robbery. After receiving a tip, they confirmed that Senior was the robber by comparing the video footage to a known photograph of Senior. Officers also recovered the three pill bottles that Senior had discarded a short distance from the pharmacy. The next day, Senior surrendered to the Waterville Police Department and admitted that he was the robber.Senior faces a maximum sentence of 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Newport Police Department, the Maine State Police, the Waterville Police Department, and the Federal Bureau of Investigation.
Charlotte Man Charged with Tax Evasion for Using Shell Companies to Hide IncomeRead the Press Release
CHARLOTTE, N.C. – A criminal bill of information was filed today in federal court charging Chris Yung Le, 63, of Charlotte, with tax evasion, for using shell companies to hide his and others’ income, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) joins Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents, Le was the owner and operator of two companies, Columbia General Services Corp. (Columbia General) and Comprehensive Administrative Services Corp. (CAS). Court documents show that Le maintained separate bank accounts for each company, but had listed for both businesses the same address as his Charlotte residence. According to documents filed with the court, from about 2007 to about 2013, the two companies primarily served as shell entities for income generated by other businesses, and Le used the companies’ bank accounts to conceal his and other individuals’ personal earnings from the IRS. Court records reflect a series of bank transactions Le conducted in order to hide personal income. Also, court records indicate that Le did not report income of at least $469,000 on his personal tax returns for tax year 2013. The additional tax due on this unreported income is approximately $131,322.
A signed plea agreement was also filed today and Chris Le is expected to appear before a U.S. Magistrate Judge in the coming days to formally accept the plea. The tax evasion charge carries a maximum penalty of five years in prison and a $100,000 fine. As part of his plea agreement, Chris Le has agreed to pay restitution, the amount of which will be determined by the Court.
In a related prosecution, Mark Tuan Le, an internal medicine physician and former owner of Northcross Medical Center, previously pleaded guilty to health care fraud conspiracy in connection with a healthcare fraud scheme that billed health insurers for services that were not provided, and for evading over $800,000 in taxes in 2009 and 2010 by funneling money to companies and bank accounts controlled by Mark Le and others. In parallel civil proceedings, Mark Le has also agreed to pay $6.2 million to the United States to settle related civil fraud allegations. Mark Le currently awaits sentencing.
The investigation into Chris Le was handled IRS-CI. The criminal prosecution is handled by Assistant U.S. Attorney Kelli Ferry.
Charge of "Causing A Death" Added to Indictment Against Main Line DoctorRead the Press Release
PHILADELPHIA – A superseding indictment was filed today against Dr. Jeffrey Bado, 59, of Philadelphia, PA, charging him with distribution of a controlled substance resulting in death and 82 additional counts of distribution of controlled substances. Bado, a doctor of Osteopathic Medicine, was first indicted on February 4, 2015 for the alleged illegal distribution of pain medications from his Philadelphia and Bryn Mawr medical offices. The superseding indictment also contains the original two counts of maintaining a drug-involved premises, 200 counts of illegally distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and for no legitimate medical purpose, 33 counts of health care fraud, and four counts of making false statements to federal agents.
According to the superseding indictment, on January 24, 2011, Bado knowingly and intentionally distributed pills containing oxycodone to J.A.-1, and the death of J.A.-1 resulted from the use of those substances. The indictment alleges that Bado had been writing prescriptions for J.A.-1 despite the fact that, when tested at Bado’s office, the victim tested positive for illegal street drugs. Bado allegedly gave prescriptions for large numbers of oxycodone pills to “patients” who paid in cash for an “office visit” during which the “patient” would receive, at most, a cursory physical examination and little other medical care or treatment. The superseding indictment alleges that Bado’s prescribing mirrored the needs of drug addicts and drug traffickers. Bado would allegedly comply with patient requests for pills with specific concentrations of oxycodone, and Bado would allegedly switch patients to pills with a higher street value even though there was no medical justification for the switch. Bado allegedly continued to prescribe high amounts of oxycodone even when he knew that his patients were addicted to oxycodone, were using illegal drugs, or were not even taking the oxycodone pills as prescribed.
If convicted of all charges, Bado faces an estimated sentencing guideline range of at least 24 years in prison with a mandatory minimum sentence of 20 years in prison up to life in prison, a special assessment of $32,200, substantial fines, criminal forfeiture, and supervised release.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, the Haverford Township Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorneys Nancy Beam Winter and Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Career Criminal Gets More Than 15 Years in PrisonRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi man has been handed a significant sentence following his conviction of possession of a firearm by a convicted felon, announced U.S. Attorney Kenneth Magidson. John Eric Garcia, 27, entered a plea of guilty Thursday, Feb. 5, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Garcia to a 200-month-term which will be followed by five years of supervised release. In handing down the sentence, Judge Ramos further noted that Garcia’s criminal history was extensive and very serious.
At the time of his guilty plea, Garcia admitted that on July 18, 2014, he had seven firearms in the bedroom of the Corpus Christi home he shared with his mother, one of which had been reported stolen. Garcia also admitted having more than 100 rounds of ammunition. Garcia has previous convictions out of Nueces County for possession of a weapon on school premises, deadly conduct, aggravated assault and escape. As such, he his prohibited by federal law of possessing firearms or ammunition.
Law enforcement officers had discovered the firearms while executing a search warrant at Garcia’s house, which was obtained as the result of an undercover drug-trafficking investigation targeting Garcia.
Garcia has been in custody since his arrest on July 18, 2014, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sam Brown IV is prosecuting the case.
CPA Sentenced for Embezzling $2.8 Million from EmployerRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL SAPERA, age 55, a resident of Mandeville, was sentenced today after previously pleading guilty to a four-count Bill of Information charging him with bank fraud, aggravated identity theft, and wire fraud. These charges related to his embezzlement of approximately $2.8 million from his employer over a 19-year period.
U.S. District Judge Eldon E. Fallon sentenced SAPERA to a total of 82 months in prison, composed of a term of 58 months as to the charges of bank fraud and wire fraud plus a consecutive term of 24 months for the charge of aggravated identity theft. In addition, the defendant was order to pay restitution in the total amount of $2,847,752, including $2,541,752 to victim Perlis, Inc. SAPERA was further sentenced to a three-year term of supervised release following his release from prison, and a $400 special assessment.
According to court documents, SAPERA, a Certified Public Accountant, was employed at Perlis, Inc., a retail clothing business headquartered in New Orleans, beginning in 1990. SAPERA most recently functioned as the Chief Financial Officer and Director of Information Technology for the company and thereby had access to various corporate bank accounts. As a part of his embezzlement scheme, SAPERA forged the signature of his employer on approximately 430 stolen corporate checks totaling $2,192,500, and then endorsed the checks to himself. SAPERA then deposited the stolen checks into his personal bank account. SAPERA also conducted 45 fraudulent wire transfers, totaling $582,080, from the company’s corporate bank account to his personal account without authorization, consent, or knowledge by the owners of the company. More recently, SAPERA also transferred $35,000 from the company’s corporate PayPal account to his personal PayPal account without authorization, consent, or knowledge by the owners of the company. In all, SAPERA’S criminal conduct resulted in an illegal gain to him in the amount of $2,809,580, and caused the company to incur a total loss for restitution purposes of $2,847,752.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Broward Resident Sentenced for Stealing Personally Identifiable Information of Magazine Subscription CustomersRead the Press Release
A Broward resident was sentenced to 34 months in prison, followed by three years of supervised release, for her participation in an identity theft fraud scheme involving the personally identifiable information (PII) of magazine subscription customers.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Eartha Ann Worthy, 29, previously pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft.
According to court documents, law enforcement agents executed a search warrant at a residence and found the PII belonging to 36 individuals, including their names, addresses, credit card information, dates of birth or social security numbers, on order sheets (taken from a direct call telemarketing center) related to magazine subscriptions. The owner of the residence explained that Worthy was employed as a supervisor with a company that sells magazine subscriptions and that Worthy was the source of the PII.
Worthy admitted to providing information to the residence’s owner and stated that she knew that the information she was providing was being used for fraudulent purposes. Worthy stated that the residence’s owner used the stolen credit card information to pay bills and make small purchases. Worthy also provided PII to another individual, who was involved in a tax refund fraud scheme.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Bellevue Man Sentenced to 30 Years for Producing and Transporting Child PornographyRead the Press Release
Christopher D. Brackett, 37, was sentenced in federal court in Omaha, Nebraska, for producing, transporting, and possessing child pornography. Brackett was convicted after a jury trial on all three charges. The Honorable Lyle E. Strom, Senior United States District Court Judge, sentenced Brackett to a term of imprisonment of 360 months for producing child pornography, 360 months for transporting child pornography, and 240 months for possessing child pornography. The sentences were ordered to run concurrently. There is no parole in the federal prison system. After his release from prison, Brackett will begin a 20-year term of supervised release.
Brackett was previously convicted in Des Moines County, Iowa, for sexual exploitation of a minor. He photographed a 15-year-old female engaged in sexually explicit conduct. As a result of this prior conviction, he was subject to a 25-year mandatory minimum sentence for producing child pornography.
Brackett traveled from Nebraska to Ohio on two occasions between May and August, 2013, where he photographed a 16-year-old girl engaged in sexually explicit conduct. He transported the images back to Nebraska. He met the girl online and began a relationship with her. He requested more sexually explicit images from her and, when she declined, he exerted pressure on her. When she attempted to end the relationship, he threatened to, and ultimately did, post advertisements on Craigslist purporting to be from the 16-year-old girl. The advertisements listed the girl’s telephone number and address and encouraged others to call or stop by the house to engage in sexual relations. She began receiving numerous texts from interested individuals.
The girl confided in her parents and was brought to her local police department. On September 17, 2013, officers with the Bellevue Police Department in Nebraska executed a search warrant upon Brackett’s residence. Sexually explicit photos of the 16-year-old were found on a Sony laptop computer and Dell desktop computer in the residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Bellevue Police Department and the Nebraska Internet Crimes Against Children Task Force.
Beaver Falls Man Admits Travelling to North Carolina with Teen for SexRead the Press Release
PITTSBURGH - A Beaver County resident pleaded guilty in federal court to a charge of travel with intent to engage in illicit sexual conduct, United States Attorney David J. Hickton announced today.
Donald L. Starkey, 57, of Beaver Falls, Pa., pleaded guilty to one count before United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that on June 4, 2012, Starkey, then 54 years of age, transported a 15-year-old female from Pennsylvania to North Carolina and engaged in sexual intercourse en route and while in North Carolina. A bystander observed Starkey and the minor female playing pool at a truck stop in Guilford County, North Carolina, and reported them to local authorities.
Judge Cohill scheduled sentencing for Sept. 10, 2015, at 11 a.m. The law provides for a maximum total sentence of not less than 15 years in prison or more than life, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The court detained Starkey pending his sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Beaver County District Attorney’s Office conducted the investigation that led to the prosecution of Donald L. Starkey.
Beaumont Federal Inmate Sentenced for Drug Transaction during VisitationRead the Press Release
BEAUMONT, Texas – A 37-year-old federal inmate has been sentenced for receiving contraband in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Donald James Bratton, Jr., of Little Rock, AR, pleaded guilty on Jan. 6, 2015, to attempting to obtain a prohibited object by a federal inmate and was sentenced to 37 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 1, 2012, Bratton, Jr., was visited by his father, Donald James Bratton, Sr., at the U.S. Penitentiary in the Federal Correctional Complex in Beaumont. During the visitation, officers using surveillance equipment observed Bratton Jr. obtain an object from the waistband of his father. Officers responded to the visitation room and separated the Brattons. The item contained 12.25 grams of heroin. The father and son were indicted by a federal grand jury on Oct. 1, 2013. Bratton Sr. was sentenced to 3 years of probation on May 12, 2015.
Bratton Jr. was convicted of being a felon in possession of a firearm in the Western District of Arkansas on Mar. 31, 2010, and sentenced to 211 months in federal prison. He must serve his 37 month sentence from this conviction following the conclusion of his current prison sentence.
This case was investigated by the Drug Enforcement Administration and Bureau of Prisons, Special Investigations and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 45-year-old Palestine, Texas man has been sentenced to federal prison for distributing methamphetamine, announced U.S. Attorney John M. Bales today.
Edwin William Pacheco pleaded guilty on Feb. 11, 2015, to possession of methamphetamine with the intent to distribute and was sentenced to 21 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Aug. 29, 2014, Pacheco delivered approximately 3.5 grams of methamphetamine to another person in Palestine, Texas. From Aug. 29, 2014 to Oct. 24, 2014, Pacheco distributed at least 10 grams of methamphetamine in Palestine receiving about $2,500. On Sep. 3, 2014, a search warrant was executed at Pacheco’s residence located on W. Debard Street in Palestine. During the search, the officers recovered a .380 caliber pistol, loaded with four bullets, from above a ceiling tile in the hallway of the residence. The officers also recovered numerous rounds of assorted ammunition from a shed on the premises.
Pacheco is a citizen of El Salvador and will face deportation upon his release from prison.
This case was investigated by the Palestine Police Department, the Anderson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Alton Man Pleads Guilty to Federal Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jason Edwards, 28, of Alton, Illinois, pled guilty today to all charges against him in the indictment returned by a Federal Grand Jury in December 2014. All offenses relate to the distribution of cocaine. Specifically, Edwards pled guilty to distribution of cocaine on or about February 20, 2014 in Madison County (Count 1); and distribution of cocaine on or about September 5, 2014 in Madison County (Count 2). All offenses are violations of the Federal Controlled Substances Act.
Count 1 and 2 carry a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. All counts require an assessment of $100.
Information leading to the charges against Edwards was obtaining in an investigation conducted by the Alton Police Department. This case is being handled by Special Assistant United States Attorney Vanessa T. Lu.
Albuquerque Woman Sentenced to Prison for Federal Oxycodone Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Crystal Staggs, 53, of Albuquerque, N.M., was sentenced today in federal court to 63 months in federal prison followed by three years of supervised release for her Oxycodone trafficking conviction.
Staggs was arrested on Aug. 28, 2012, on a criminal complaint charging her with distributing and attempting to distribute Oxycodone to an undercover DEA agent on four occasions from June 13, 2012 through Aug. 28, 2012, in Bernalillo County, N.M. According to the complaint, Staggs sold Oxycodone to the undercover agent as follows: 48 30-mg Oxycodone pills and four 15-mg Oxycodone pills for $1,000.00 on June 13, 2012; 100 30-mg Oxycodone pills for $1,800.00 on June 27, 2012; and 87 30-mg Oxycodone pills and six 15-mg Oxycodone pills for $1,800.00. Staggs was arrested on Aug. 28, 2012, when she attempted to sell 100 30-mg Oxycodone pills to the undercover agent; the pills were in her possession when she was arrested.
In Sept. 2012, Staggs was indicted and charged with three counts of distribution of Oxycodone and one count of possession of Oxycodone with intent to distribute.
On April 8, 2015, Staggs pled guilty to the four-count indictment and admitted to distributing an aggregate of 10.2 grams of Oxycodone to an undercover DEA agent from June 13, 2012 through Aug. 28, 2012.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office and was prosecuted by Assistant U.S. Attorney Shammara Henderson. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Albuquerque Man Sentenced to Fifteen Years for Federal Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Manuel Chavez, 33, of Albuquerque, N.M., was sentenced this afternoon in federal court to 180 months in prison followed by four years of supervised release for his methamphetamine trafficking and firearms conviction.
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 Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Chief Gorden Eden, Jr., of the Albuquerque Police Department, and Bernalillo County Sheriff Manuel Gonzales III.
U.S. Attorney Martinez said that Chavez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Chavez was arrested on April 29, 2014, on a four-count indictment charging him with two counts of being a felon in possession of a firearm and ammunition, one count of possession of methamphetamine with intent to distribute, and one count of using a firearm in relation to a drug trafficking crime. The indictment alleged that Chavez committed the crimes on Sept. 30, 2013 and Oct. 24, 2013, in Bernalillo County, N.M. According to court filings, Chavez was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including conspiracy to possess methamphetamine with intent to distribute, contributing to the delinquency of a minor, aggravated assault against a household member, possession of a controlled substance, attempting to bring contraband into a prison, and aggravated fleeing from a law enforcement officer.
On Dec. 19, 2014, Chavez pled guilty to possession of methamphetamine with intent to distribute and carrying a firearm in furtherance of a drug trafficking crime. In entering his guilty plea, Chavez admitted that on Oct. 24, 2013, he possessed more than 50 grams of methamphetamine with intent to distribute. Chavez also admitted that on the same day, he used and carried two semiautomatic pistols and a semiautomatic rifle in furtherance of a drug trafficking crime.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Brawley and Sarah Jane Mease prosecuted the case.
2010 Congressional Candidate and Campaign Manager for His Opponent Jointly Pled Guilty to Committing Election ViolationsRead the Press Release
A 2010 Congressional candidate for Florida’s 25th Congressional District, along with the campaign manager for an opposing candidate from a different party pled guilty today to violating federal election laws, in violation of Title 18, United States Code, Section 371.
Benjamin G. Greenberg, First Assistant United States Attorney, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Jeffrey Garcia, 42, and Jose Rolando Arrojo, 41, of Miami, pled guilty to conspiring to make and accept excessive contributions to the 2010 Roly Arrojo for Congress Committee, in violation of the Federal Election Campaign Act of 1971. In 2010, the Federal Election Campaign Act of 1971, as amended, established a $2,400 per election limit on contributions from any individual to a federal candidates’ authorized campaign committee. Therefore, because the contributions did not exceed the permissible amount by more than $25,000, Garcia and Arrojo face a maximum possible sentence of one year in prison. Sentencing is scheduled for Garcia and Arrojo on August 27, 2015 at 1:30 p.m. and 2:00 p.m., respectively, before United States District Judge Jose E. Martinez.
According to court documents and information presented in court, during the 2010 election cycle, Garcia was the campaign manager for a candidate (“Candidate A”) opposing Arrojo in the general election. The objective of the conspiracy was to benefit Candidate A by splitting the general election votes of his opponents, by causing and funding the existence of Arrojo’s campaign. The conspirators used third party checks to conceal the contributions. A $12,000 check signed by Garcia, and drawn from the campaign account of Candidate A, was made payable to Palm Media, LLC, a company that was also owned and operated by Garcia. Garcia then signed two checks, made payable to cash in the amounts of $5,000 and $5,500, drawn from the Palm Media, LLC account. These checks were deposited by Arrojo into a personal account. Arrojo subsequently wrote a $10,500 check from the personal account made payable to “Roly Arrojo for Congress” which was deposited into the bank account for the Roly Arrojo for Congress Committee. Arrojo then caused a $10,440 check to issue from the Committee’s account to the Department of State, in order to cover his filing fee expenses. Arrojo submitted this check, along with an Oath of Candidate form, to the Department of State in order to be placed on the ballot in 2010 for Florida’s 25th Congressional District.
Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Kimberly A. Selmore.
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.
"Local Fulcrum" of Cocaine Organization Gets 20 YearsRead the Press Release
PITTSBURGH - A former resident of the Duquesne and Pitcairn suburbs of Pittsburgh, Pennsylvania, has been sentenced in federal court upon his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed a sentence of 20 years imprisonment followed by five years supervised release on Robert Russell Spence, aka “Little Russ” and “Slick”, 40.
The IRS Criminal Investigations section joined the DEA as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. The investigation revealed a major drug distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010. The evidence at trial established that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every man, woman and child current resident of Pennsylvania to have their own $20 rock of crack cocaine and is believed to be one of the largest cocaine prosecutions ever in the Pittsburgh area.
Prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California for recipients, such as Spence in Pittsburgh. Documents and evidence revealed the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007 Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850.00 intended for a co-defendant.
The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 200 airline flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 co-defendant Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and it was found to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh. On Aug. 8, 2009, over $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.
During other times, the conspiracy arranged transportation of cocaine and/or money by means such as chartered private flights and vehicles including tractor trailers. Indicted individuals have performed many different roles within the conspiracy. Some conspirators were suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of tasks such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports. The evidence showed that Spence was the main recipient of the cocaine that came to Pittsburgh and was personally responsible for more than 1500 kilograms of cocaine. Judge Cercone called Spence the “local fulcrum” of this large drug trafficking organization.
Federal agents obtained search warrants and simultaneously executed them in multiple locations in Pittsburgh and California, including a warehouse in a Pittsburgh suburb that Spence had rented under a false name. There, police located a significant stash of drug-processing items and also seized Spence’s vehicles and other assets. Experts testified that a drug dealer can substantially increase their profits by opening the packaged cocaine kilograms, grind the cocaine into a powder and mix in a diluent such as inositol. One of the items located in the warehouse was a hydraulic press which is utilized by drug dealers to forcefully press the now-diluted cocaine back into kilogram size packages in order to maintain the appearance that it is still “pure” and therefore more valuable. This process, sometimes called “re-rocking,” could turn two kilograms into three.
Spence conspired to launder his drug money in multiple ways including obtaining vehicles, prepaid credit cards, hotel reservations, houses, flights, drug processing materials and businesses in the names of other people. Spence also deposited cash in amounts below $10,000 in order to avoid federal laws requiring banks and others to report such transactions. The staggering amounts of money involved were proven by financial documents obtained by federal agents and acknowledged by cooperating witnesses. One witness, for example, testified to being sent to count one million dollars in drug cash for Spence and a separate witness testified to possessing $750,000 in drug cash for Spence on another date.
During his sentencing, Spence stated that he has been known as “a drug dealer all my life” and asked the Court for mercy. Despite his numerous previous convictions, Spence told the Court that “I can change.” Spence alleged that any illegal activities that he had committed were done simply in order to help his children financially, although the trial evidence showed Spence throwing extravagant parties (including those specifically for other drug dealers) and his purchase of expensive vehicles, jewelry and the like for himself. Spence even procured the regular services of a photographer he nicknamed “Paparazzi,” in order to document his lavish lifestyle.
The prosecution countered that Spence had, in person and in writing, threatened multiple prosecution witnesses, including forming the shape of a gun with his fingers while a witness was on the stand, testified falsely under oath and had filed numerous spurious motions in order to obstruct the legal process. The government also noted that Spence has arrests for burglary, drugs, fraud and weapon offenses in addition to more violent offenses like Aggravated Assault and Sexual Assault. The Court was advised that, in addition to a family member being shot to death, Spence’s chosen lifestyle has resulted in him being both shot and stabbed in the past.
Spence was released from prison and was on state parole for a previous conviction at the time he committed the federal charges. As a result, Spence faces the possibility of consecutive prison time from the Pennsylvania Board of Probation and Parole, and also has a pending significant heroin dealing charge in the Cleveland, Ohio area.
Assistant United States Attorneys Ross E. Lenhardt, Michael L. Ivory and Gregory J. Nescott prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service – Criminal Investigations, Drug Enforcement Administration, Pennsylvania Attorney General and many other federal, state and local law enforcement agencies for the investigation leading to the successful prosecution of Spence and the drug trafficking organization.
10 June 2015
Zimmerman Man Found Guilty After Trial of Distribution of Child PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction after a jury trial of LEVI WAYNE BURNS, 40, for distribution of child pornography. BURNS pleaded on guilty on June 5, 2015, to possession of child pornography in the same case. The defendant was charged by indictment on November 20, 2014, with one count of possession and one count of distribution of child pornography. BURNS was convicted in 2005 in Sherburne County, Minn., for criminal sexual conduct in the third degree for engaging in sexual acts with a 15-year-old female child. A sentencing date on the federal conviction has not yet been determined.
According to the defendant’s guilty plea and as proven at trial, in January 2014, BURNS shared electronically several files containing images and videos of child pornography, including a video depicting two female children between the ages of 10 and 14 engaged in sexual acts. BURNS, who lived in the basement of his parents’ home in Sherburne County, operated a large number of computers and related equipment. In fact, BURNS was using so much computer power that he and his parents were using the heat generated by the defendant’s computers to heat their house that winter, which was one of the coldest in recent Minnesota history.
According to the defendant’s guilty plea and as proven at trial, BURNS was operating a specially built computer with several hard drives, at least one of which was dedicated to storing and sharing child pornography over the internet. The defendant also saved thousands of files of child pornography on a separate external hard drive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, Sherburne County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorneys Katharine T. Buzicky and Sarah E. Hudleston are prosecuting the case.Defendant Information:
LEVI WAYNE BURNS, 40
Zimmerman, Minn.
Convicted:
- Distribution of child pornography, 1 count
- Possession of child pornography, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Woman Indicted and Arrested for Defrauding the Internal Revenue ServiceRead the Press Release
Defendant Faces a Forfeiture Allegation of $227,653.22
On June 3, 2015, a federal grand jury returned a 46-count indictment charging Mariely Malavet-Rivera for wire fraud, theft of public money and aggravated identity theft announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. Internal Revenue Service, Criminal Investigation (IRS-CI) is in charge of the investigation. The indictment was unsealed today as the defendant was arrested.
These charges stem from a scheme utilized by Malavet-Rivera to submit false federal tax returns seeking the additional child tax credit (ACTC) in order to obtain fraudulent refunds from the IRS via check or direct deposit. Personal identification information including individuals’ name, date of birth and social security number were utilized without the knowledge or consent of the individual in order to request and obtain the fraudulent refund. In some instances, defendant obtained this information by preparing the individual’s Puerto Rico tax return for a nominal fee.
The false federal tax returns contained defendant’s own postal address and bank account information so that the fraudulent refunds would be deposited via wire to bank accounts she controlled and the physical checks would be mailed to her address. Defendant then used a means of identification of another person without lawful authority to cash the fraudulent refund checks through an intermediary company.
“Refunds are issued to taxpayers who are entitled to them,” said U.S. Attorney Rodríguez-Vélez. “The U.S. Attorney’s Office will continue to aggressively pursue those who prepare false claims for refunds for the purpose of enriching themselves and depleting the U.S. Treasury.”
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the United States Treasury,” said Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation’s Miami Field Office. “This indictment is another example of our commitment to work with the U.S. Attorney’s Office to vigorously pursue those individuals who steal Puerto Rican identities and file false tax returns for their own personal gain.”
The indictment alleges 30 counts of wire fraud, related to 30 fraudulent refunds paid via direct deposit from 2010 through 2013 to bank accounts controlled by the defendant; eight counts of theft of public money, related to eight fraudulent refund checks received and converted to the defendant’s use; and eight counts of aggravated identity theft, related to the possession and use without lawful authority of a means of identification in relation to theft of public money charged in the indictment. The fraudulent tax refund scheme had a total value of approximately $227,653.22.
The case is being investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Seth A. Erbe. If found guilty, the defendant is facing a maximum penalty of 36 years in prison.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Woman Indicted and Arrested for Defrauding the Internal Revenue ServiceRead the Press Release
SAN JUAN, P.R. – On June 3, 2015, a Federal grand jury returned a forty six-count indictment charging Mariely Malavet-Rivera for wire fraud, theft of public money, and aggravated identity theft announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Internal Revenue Service, Criminal Investigation (IRS-CI) is in charge of the investigation. The indictment was unsealed today as the defendant was arrested.
These charges stem from a scheme utilized by Mariely Malavet-Rivera to submit false Federal tax returns seeking the additional child tax credit (ACTC) in order to obtain fraudulent refunds from the Internal Revenue Service via check or direct deposit. Personal identification information including individuals’ name, date of birth, and social security number were utilized without the knowledge or consent of the individual in order to request and obtain the fraudulent refund. In some instances, defendant obtained this information by preparing the individual’s Puerto Rico tax return for a nominal fee.
The false Federal tax returns contained defendant’s own postal address and bank account information so that the fraudulent refunds would be deposited via wire to bank accounts she controlled and the physical checks would be mailed to her address. Defendant then used a means of identification of another person without lawful authority to cash the fraudulent refund checks through an intermediary company.
“Refunds are issued to taxpayers who are entitled to them,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to aggressively pursue those who prepare false claims for refunds for the purpose of enriching themselves and depleting the U.S. Treasury.”
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the United States Treasury. This indictment is another example of our commitment to work with the U.S. Attorney’s Office to vigorously pursue those individuals who steal Puerto Rican identities and file false tax returns for their own personal gain,” stated Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, Miami Field Office.
The indictment alleges thirty-counts of wire fraud, a violation of Title 18, United States Code, Section 1343, related to thirty fraudulent refunds paid via direct deposit from 2010 - 2013 to bank accounts controlled by defendant, eight counts of theft of public money, a violation of Title 18, United States Code, Section 641, related to eight fraudulent refund checks received and converted to defendant’s use, and eight counts of aggravated identity theft, a violation of Title 18, United States Code, Section 1028A(a)(1), related to the possession and use without lawful authority of a means of identification in relation to theft of public money charged in the indictment. The fraudulent tax refund scheme had a total value of approximately $227,653.22.
The case is being investigated by IRS-CI and prosecuted by Assistant United States Attorney Seth A. Erbe. If found guilty, defendant is facing a maximum penalty of thirty-six years in prison.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Waterloo Felon Sent to Prison for Ten Years for Possessing a Firearm and AmmunitionRead the Press Release
A twice-convicted felon who possessed a firearm and ammunition on the streets of Waterloo last Halloween evening was sentenced yesterday to 10 years in federal prison, the statutory maximum sentence possible for his crime.
Deshawn Brown, age 23, from Waterloo, Iowa, received the prison term after a March 2, 2015, guilty plea to one count of possessing a firearm and ammunition as a felon.
At the guilty plea hearing, Brown admitted that he knowingly possessed a Sig Sauer pistol and .40 caliber ammunition on Halloween in 2014. Defendant learned that an associate’s residence was subjected to a drive-by shooting. In response, Brown went to a local store, purchased ammunition, and then fired several shots near the 1200 block of Willow Street in retaliation for the prior shooting. When police attempted to stop Brown’s car, he failed to stop and fled through a residential neighborhood. Brown only stopped because his car crashed into a garage. At the plea hearing, he also admitted to prior felony convictions in state court for possessing marijuana with intent to deliver and intimidation with a dangerous weapon.
Brown was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa Williams and investigated by the Waterloo Police Department.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-2001.
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Washington Man Sentenced to Six Years in Custody for Theft of 22 Handguns from Newberg Fred MeyerRead the Press Release
PORTLAND, Ore. – Mark Anthony Reyna, 26, from Skagit County, WA was sentenced today by U.S. District Judge Garr M. King to six years in federal prison, following his pleas of guilty to the theft of firearms from a federally-licensed firearms dealer and felon in possession of firearms.
On June 18, 2014, Reyna broke into a locked firearms display located at the Newberg Fred Meyer. The store was open to the public at the time of the theft. Reyna took 22 firearms with a value of over $12,000. Three days after the theft, Reyna was observed by a police officer in Mount Vernon, WA, operating a vehicle; the officer knew that Reyna had an unrelated arrest warrant on file and attempted to stop the vehicle. Following a brief police chase and struggle with the officers, Reyna was arrested. One of the stolen firearms from Fred Meyer, a .40 caliber loaded Ruger pistol, was located in Reyna’s vehicle. During a subsequent police investigation, six of the other stolen firearms were located and seized; 15 stolen firearms are currently unaccounted for.
Several charges are pending against Reyna in Skagit County, WA. He will be transported to that jurisdiction and will receive a sentence concurrent to the federal sentence. The pending charges include the related attempt to elude a pursuing police vehicle and unlawful possession of a stolen firearm. Reyna was prohibited from possessing firearms by virtue of his Skagit County 2014 conviction for disarming a law enforcement officer of his taser.
This case was prosecuted by the Newberg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and by the Mount Vernon Police Department. It was prosecuted by AUSA Fred Weinhouse.
Washington Couple Admit Role in Scheme to Extort Money from Mother While Holding Her ChildrenRead the Press Release
SAN JOSE—Patricia Delatorre and Jesus Salinas pleaded guilty in federal court in San Jose yesterday to conspiracy to commit extortion for their role in a scheme involving the transportation of two minor children across the U.S.-Mexico border, announced United States Attorney Melinda Haag and FBI Special Agent in Charge Dave Johnson.
In pleading guilty, Delatorre and Salinas admitted that between June 2011 and December 2012, they knowingly participated in executing a scheme to extort money from a woman who had asked Salinas for assistance in bringing her minor U.S. citizen children to the United States from Mexico. After Salinas picked up the children in Mexico in July 2011, and after the mother had paid him approximately $1,800, he did not bring the children to the United States as he had promised. After a failed border crossing, Salinas instead brought the children to the residence of Delatorre’s mother, Maria Guadalupe Valenzuela Castaneda, in Juarez, Mexico. Salinas and Delatorre refused to tell the children’s mother the precise address where her children were located. The children resided in Juarez for many months, during which time the mother was permitted periodic contact with the children. For months, the mother sent payments to Delatorre, Salinas, and Valenzuela Castaneda, but the children were never returned. Salinas and Delatorre told the mother on numerous occasions that she owed additional money to them, and she needed to pay the money before the children could be returned to her. Delatorre also threatened to report the mother to immigration authorities as an illegal alien if she stopped making payments.
On December 11, 2012, the FBI, together with Mexican law enforcement, located the children in Juarez, Mexico, in the custody of Castaneda and placed the children into the temporary care of Mexican social services. In March 2013, the children, through the work of the FBI, the Watsonville Police Department, the National Center for Missing and Exploited Children, and the United States Department of State, were repatriated from Mexico to the United States, and reunited with their mother in California.
Delatorre, 28, and Salinas, 35, both of Mount Vernon, Washington, were indicted by a federal Grand Jury on December 19, 2012. Each pleaded guilty to a single count of conspiracy to commit extortion in violation of 18 U.S.C. § 371. Delatorre and Salinas were both ordered detained in a prior pretrial hearing and are in custody pending sentencing. An arrest warrant remains pending for Maria Guadalupe Valenzuela Castaneda.
The sentencing hearing for both Delatorre and Salinas is scheduled for October 5, 2015 at 1:30 p.m. before the Honorable Edward J. Davila, U.S. District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 371 is five years imprisonment and a fine of $250,000, plus restitution as determined by the Court. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Nedrow, Jeff Schenk, and Daniel Kaleba are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Susan Kreider, Laurie Worthen, and Elise Etter. The prosecution is the result of an investigation by the FBI, the Watsonville Police Department, the Department of Homeland Security Customs and Border Protection, and the United States Department of State.
Two Sisters-In-Law and Former Tax Return Preparers Sentenced to Prison for Conspiring to Defraud the United StatesRead the Press Release
WASHINGTON – Two Georgia sisters-in-law were sentenced today in the U.S. District Court in Macon, Georgia, for their involvement in a conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Angela Miller, 48, of Milledgeville, Georgia, and Lee Lynwood, 47, of Eatonton, Georgia, were each sentenced to serve 12 months and one day in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $44,214.62. On Feb. 10, Miller and Lynwood pleaded guilty to conspiracy to defraud the United States.
According to court documents, from at least January 2008 through at least March 2010, Miller and Lynwood operated a tax return preparation business and conspired to inflate their clients’ federal tax refunds by manipulating the tax returns to reflect false business income or loss amounts and to claim deductions and credits, such as the First-Time Homebuyer Credit, that the clients were not entitled to receive.
Miller and Lynwood also took steps to continue their scheme by impeding the Internal Revenue Service’s (IRS) efforts to shut down their ability to electronically file tax returns. In May 2008, the IRS notified Miller and Lynwood that their Electronic Filing Number (EFIN) for filing electronic returns at their tax preparation business, A&L Tax Services, was being revoked. Miller and Lynwood then had an acquaintance apply for another EFIN in her name, which Miller and Lynwood used to continue to file fraudulent tax returns and conceal their preparation from the IRS. Further, Miller and Lynwood changed the name of their business to B&F Tax Services and caused a bank account for the B&F Tax Services to be opened in the acquaintance’s name as a nominee.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance, as well as Trial Attorneys Alexander R. Effendi and Hayden M. Brockett of the Tax Division, who prosecuted the case.
Two Georgia Sisters-in-Law and Former Tax Return Preparers Sentenced to Prison for Conspiring to Defraud the United StatesRead the Press Release
Two Georgia sisters-in-law were sentenced today in the U.S. District Court in Macon, Georgia, for their involvement in a conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Angela Miller, 48, of Milledgeville, Georgia, and Lee Lynwood, 47, of Eatonton, Georgia, were each sentenced to serve 12 months and one day in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $44,214.62. On Feb. 10, Miller and Lynwood pleaded guilty to conspiracy to defraud the United States.
According to court documents, from at least January 2008 through at least March 2010, Miller and Lynwood operated a tax return preparation business and conspired to inflate their clients’ federal tax refunds by manipulating the tax returns to reflect false business income or loss amounts and to claim deductions and credits, such as the First-Time Homebuyer Credit, that the clients were not entitled to receive.
Miller and Lynwood also took steps to continue their scheme by impeding the Internal Revenue Service’s (IRS) efforts to shut down their ability to electronically file tax returns. In May 2008, the IRS notified Miller and Lynwood that their Electronic Filing Number (EFIN) for filing electronic returns at their tax preparation business, A&L Tax Services, was being revoked. Miller and Lynwood then had an acquaintance apply for another EFIN in her name, which Miller and Lynwood used to continue to file fraudulent tax returns and conceal their preparation from the IRS. Further, Miller and Lynwood changed the name of their business to B&F Tax Services and caused a bank account for the B&F Tax Services to be opened in the acquaintance’s name as a nominee.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance, as well as Trial Attorneys Alexander R. Effendi and Hayden M. Brockett of the Tax Division, who prosecuted the case.
Trumbull County man sentenced to nearly four years in prison for making threatsRead the Press Release
An Ohio man was sentenced to nearly four years in prison for mailing threatening communications and threatening to damage or destroy a building with an explosive, 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.
Charles James Reighard, 67, of Burghill, was sentenced by U.S. District Judge Sara Lioi to to 46 months in prison, with mental health counseling, and ordered to pay $3,788 in repayment to first-responders
Reighard previously pleaded guilty to two counts. Reighard sent communications to his victim with the intent to extort money from him and which contained a threat to injure him and/or his family. This occurred between September 4, 2014, to on or about October 17, 2014. On October 16, 2014, Reighard engaged in conduct with the intent to convey false or misleading information that the offices at 6630 Seville Drive, in Canfield, Ohio, would be damaged or destroyed by an explosive, according to court documents.
The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould, following an investigation by the Federal Bureau of Investigations of Youngstown, and the Mahoning County Sheriff’s Department.
Trafficker Sentenced for Cocaine and Money Laundering ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced FABIO HIROCHI INOUE, 40,of Anaheim, California, to 51 months in prison and 5 years of supervised release for conspiracy to distribute and possess 5 kilograms or more of cocaine and conspiracy to launder monetary instruments. INOUE previously pled guilty to these charges on May 13, 2014.
The investigation revealed that between April 2013 and September 22, 2013, INOUE flew to North Carolina and Florida to deliver cocaine and collect drug proceeds for a drug trafficking organization operating out of Mexico and California. INOUE made several trips during this time period to meet with traffickers in the Johnston County, N.C., area. During these trips he delivered multiple kilograms of cocaine and collected approximately $185,745 in drug proceeds. INOUE laundered some of the drug proceeds by depositing portions into a bank account in the name of a real estate business located in California. Based on the investigation, the United States Drug Enforcement Administration discovered that INOUE would be flying to the Raleigh Durham International Airport with several kilograms of cocaine on September 22, 2013. Agents found INOUE at the airport and seized his luggage which contained 3,891 grams of cocaine. In total, INOUE was found to be responsible for trafficking 12.7 kilograms of cocaine.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office and the Internal Revenue Service-Criminal Investigation Division. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission
Topeka Jewelry Store Owner Pleads Guilty to Purchasing Stolen JewelryRead the Press Release
TOPEKA, KAN. - The owner of a Topeka jewelry store pleaded guilty Wednesday to knowingly buying jewelry that had been stolen in home invasions, U.S. Attorney Barry Grissom said.
John O. Dasher, 53, Silver Lake, Kan., pleaded guilty in U.S. District Court in Topeka to one count of transporting stolen goods. In his plea, he admitted the crimes occurred from 2010 to 2013 while he owned The Diamond House, 1801 S.W. Gage in Topeka. He knowingly purchased stolen jewelry taken in home invasions.
Dasher paid a fraction of the actual value of the jewelry, which he melted down to form scrap gold. He mailed the gold scrap via the U.S. Postal Service to gold wholesalers Pop Gems International, Gold Empire and Coinex, Inc., in Los Angeles, Calif.
Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 12 months and a day followed by two years on supervised release and a forfeiture money judgment against Dasher of $130,000
Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Milwaukee Area Persons Indicted for Wire, Mail, and Credit Card FraudRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on June 9, 2015, a federal grand jury in Milwaukee returned an indictment charging three persons: Vladimir Sonin of Bayside, Wisconsin (age 50); Natalya Sonina of Bayside, Wisconsin (age 47); and Irina Tinney of Milwaukee, Wisconsin (age 47). Each defendant is charged with thirteen counts of wire, mail, and credit card fraud in violation of Title 18, United States Code, Sections 1029(a)(2), (a)(3), 1341, and 1343. Mr. Sonin and Ms. Sonina are also charged in an additional count of credit card fraud and two counts of aggravated identity theft in violation of Title 18, United States Code, Sections 1028A.
The indictment alleges that during the period from approximately January 1, 2013 until May 13, 2015, the defendants carried out a scheme to defraud and steal money from the IRS and various state treasuries through electronically filed fraudulent tax returns claiming tax refunds in the names of identity theft victims. The indictment further charges that as part of the scheme, the defendants received unauthorized access devices issued by financial institutions in the names of identity theft victims and then caused the IRS and various state treasuries to electronically place stolen refunds onto those unauthorized access devices. Finally, the indictment charges that as part of the scheme, the defendants used the unauthorized access devices at ATMs and then transferred more than $1 million in scheme proceeds to individuals in Ukraine.
Each of the ten mail or wire fraud charges contained in the indictment carries a maximum possible penalty of up to twenty years in prison and a fine of up to $250,000, or both. Each of the four credit card fraud charges contained in the indictment carries a maximum possible penalty of up to ten years in prison and a fine of up to $250,000, or both. Each of the two aggravated identity theft charges contained in the indictment carries a maximum possible penalty of a mandatory two years in prison consecutive to any other sentence and a fine of up to $250,000 or both.
According to United States Attorney James L. Santelle, "Today's charges are the result of collaborative efforts by many federal investigative agencies to dismantle a scheme that was defrauding both federal and state governments in addition to victimizing individuals. These charges reflect our continued commitment to investigate and prosecute criminal conduct such as identity theft that directly impacts the citizenry, including identity theft through which fraudulent claims for tax refunds are made." United States Attorney Santelle specifically commended the participating agencies for their hard work on the joint investigation, which was conducted by Special Agents from the Internal Revenue Service Criminal Investigations Division, the Postal Inspection Service, and the Federal Bureau of Investigation.
“IRS Criminal investigation is committed to rigorously pursuing identity thieves who steal from American taxpayers,” said IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office. “Today’s indictment should serve as a warning to identity thieves that we, along with our law enforcement partners and the United States Attorney's Office, will pursue those criminals who prey on innocent victims and bring them to justice.”
This case is assigned to Assistant United States Attorney Stephen A. Ingraham for prosecution.
The public is cautioned that an indictment is merely the formal method of presenting charges in federal court and does not constitute evidence of the defendant’s guilt. The defendant is presumed innocent until such time, if ever, as the government establishes her guilt beyond a reasonable doubt.
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Three Men Indicted on Sex Trafficking ChargesRead the Press Release
BOSTON – Three men were indicted yesterday on charges related to the interstate sex trafficking of a minor and several other women.
Tyrell Gorham, a/k/a Sheek, 30, of Lewiston, Maine; Chelanjei Greene, a/k/a Young, 32, of Brockton; and Lee Young, a/k/a Chop, 32, of Brockton, were indicted for sex trafficking of a minor, interstate transportation of a minor for purpose of prostitution, and sex trafficking through force, fraud, or coercion. The defendants were initially arrested and charged in a criminal complaint on May 5, 2015, and have since been held in federal custody.
According to a criminal complaint, an undercover law enforcement operation conducted in February 2013 identified three adult women and one minor woman as victims of a sex trafficking ring. The investigation revealed that Gorham allegedly used social media to identify and target vulnerable women living in the Portland, Maine area, and then either lured or transported them to the Greater Boston area where Gorham, Greene, and Young would force them to work as prostitutes, posting advertisements for their services on backpage.com. The defendants required the victims to have sex with 10 to 15 customers per day and turn over their earnings to them.
The charges of sex trafficking of a minor and interstate transportation of a minor for the purpose of prostitution provide a minimum mandatory sentence of 10 years and no greater than a lifetime in prison, three years of supervised release, and a fine of $250,000. The charge of sex trafficking through force, fraud, or coercion provides a minimum mandatory sentence of 15 years and no greater than a lifetime in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation’s Boston Child Exploitation Task Force (CETF). Significant investigative assistance was provided by the FBI; the Boston Police Department Child Abuse and Human Trafficking Units; the Arlington, Malden, Norwood, Revere, Saugus, Woburn, and Brockton Police Departments; the Massachusetts State Police; and the Massachusetts State Police Human Trafficking Unit of the Massachusetts Attorney General’s Office.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Emily Cummings and Timothy Moran of Ortiz’s Civil Rights Enforcement Team.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.