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Thursday 23 April 2015
Former Corrections Officer Pleads Guilty to Smuggling Methamphetamine to Prison InmateRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that EUGENE JESUS MENO SUNEGA, age 33, of Sinajana, Guam pled guilty on April 23, 2015, in the U.S. District Court, before Chief Judge Frances Tydingco-Gatewood, to one count of Providing Contraband in Prison. SUNEGA was charged on March 4, 2015 by a federal grand jury in a four-count indictment with Conspiracy to Distribute Methamphetamine, Possession with Intent to Distribute Methamphetamine, Providing Contraband in Prison, and False Statement or Representation. Sentencing for SUNEGA is scheduled for July 27, 2015. The offense of Providing Contraband in Prison carries a statutory maximum sentence of 20 years in prison.
According to court documents, SUNEGA abused his position of trust as a Guam Department of Corrections Officer by attempting to smuggle contraband methamphetamine to prison inmate Gregorio Cruz. The methamphetamine weighed approximately 3.9 grams and was approximately 95.3% pure, according to forensic analysis. SUNEGA also lied to federal agents investigating the incident when he claimed to have never personally smoked methamphetamine.
This incident was discovered by Guam Department of Corrections officials. The federal case is the result of an investigation conducted by the DEA Guam Resident Office and the FBI Guam Resident Agency. Credit is also given to GPD’s Special Investigation Section and to the ATF. The prosecution was handled by Assistant U.S. Attorney Mohammad Khatib.
Former Cordele Resident and Recidivist Sentenced on Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christopher B. Wilcox, aged 41, formerly of Cordele, Georgia, was sentenced to serve a mandatory minimum of ten years (120 months) imprisonment in federal prison for possession of child pornography, followed by 15 years of supervised release. He will also be required to register as a sex offender. The sentence was handed down by Senior U.S. District Court Judge W. Louis Sands on April 23, 2015 in Albany, Georgia.
Mr. Wilcox entered a guilty plea to the charge on December 15, 2014 in Albany, Georgia.
This is not Mr. Wilcox’s first offense involving child victims. At the time of the crime to which he pled guilty, Mr. Wilcox was on supervised release from a previous conviction in the United States District Court for the Middle District of Georgia for possession of child pornography in March, 2003, for which he received a sentence of 33 months in prison. He was also subsequently convicted of aggravated child abuse in Crisp County Superior Court in February 2005, for which he was on probation at the time of his latest offense. Mr. Wilcox is currently serving a 10 year parole revocation of his state sentence based on this new offense.
The current charges stem from a search done of the contents of Mr. Wilcox’s computer by the United States Probation Officer overseeing his supervised release for his 2003 conviction.
The lengthy sentence was a result of his two previous felony convictions.
“With the conviction and lengthy prison sentence of Mr. Wilcox, I am confident that we have taken a significant step to protect child victims. He is a repeat offender. Apparently the only place where we can be assured that he is not re-victimizing the child victims of pornography is in prison, so that is where he’ll spend the next decade,” said U.S. Attorney Michael Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI is pleased with the role that it played in further protecting the children of our community by getting such an individual as Mr. Wilcox off of our streets. The FBI will continue to aggressively identify and investigate such individuals who would exploit and prey on children through child pornography.”
The case was investigated by the Federal Bureau of Investigation, Albany. Assistant United States Attorney Jim Crane prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Florida Man Admits to Extorting Philadelphia NightclubRead the Press Release
PHILADELPHIA - Mario Fresta, 37, of Cape Coral, Florida pleaded guilty today to one count of Hobbs Act extortion, announced United States Attorney Zane David Memeger. U.S. District Court Judge Berle M. Schiller scheduled a sentencing hearing for July 15, 2015.
Fresta was an associate of Dominic Verdi, a-then high ranking official in Philadelphia’s Department of Licenses and Inspections and Public Nuisance Task Force. Verdi had an ownership interest in a beer distributor named “Chappy’s Beer, Butts, and Bets.” Fresta, with or without Verdi’s knowledge, instructed O.N.E. Rittenhouse (“ONE”), a bar and nightclub, that if ONE bought its beer from Chappy’s and hired Fresta as a manager at a weekly rate of $400 in cash, Verdi would use his official position to benefit ONE. Even after Fresta ceased his employment at ONE, Fresta instructed the operators at ONE that ONE needed to continue paying the $400 weekly rate plus an additional $300 in cash kickbacks for Verdi and other L&I officials. Fresta informed the owners of ONE that the kickbacks were to protect ONE from suffering economic harm as a result of enforcement actions from L&I and the PTNF. At Fresta’s direction, one of the operators of ONE made approximately 39 cash deposits, totaling more than $19,900, as a result of Fresta’s claim that these payments were allegedly necessary in order to protect ONE from Verdi “shutting down” the establishment.
Fresta faces a maximum possible sentence of 20 years in prison, a $250,000 fine, three years supervised release and a $100 special assessment. The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joe Khan.
Final Defendant Sentenced to Serve 42 Months in Prison for Money Laundering in Connection with Federal Wireless Telephone Program SubsidiesRead the Press Release
Oklahoma City, Oklahoma –OSCAR ENRIQUE PEREZ-ZUMAETA, of Cancun, Mexico, was sentenced yesterday by United States District Judge Tim DeGiusti to serve 42 months in prison for money laundering in connection with the Federal Communication Commission’s Lifeline Program, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The current Lifeline Program, which was created in 1985, furthers the FCC’s mission to provide all Americans with access to a basic level of telephone service. Since 2005, Lifeline has provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers. The Universal Service Administrative Company (“USAC”) administers the Lifeline Program on behalf of the FCC and under detailed federal regulations. To pay for the program, USAC collects fees from telephone companies, which often pass the fees on to customers as “universal service charges” on monthly telephone bills.
Most participating wireless telephone companies receive a subsidy of $9.25 per month for each qualifying low-income customer. If a qualifying customer lives on “Tribal Lands,” however, the company receives $34.25 per customer. Much of Oklahoma includes Tribal Lands that qualify for the higher monthly subsidy. Before receiving reimbursement, participating telephone companies file forms with the FCC that report the number of Lifeline eligible customers they have served. Companies must also file annual reports to certify that customers who received Lifeline service at an earlier date remain eligible for the program.
Icon Telecom, an Edmond company, was owned exclusively by Wes Yui Chew, also of Edmond. Icon participated in the wireless Lifeline Program from July 2011 until September 2013. An information filed on June 3, 2014, alleged that in September 2011, Icon reported fewer than 2,200 wireless customers who qualified for the Lifeline program. By November 2012, that number had grown to 135,364. The information explains that although it had fewer than ten full-time employees, Icon received a total of $58,283,329 through the Lifeline Program during 2011, 2012, and 2013.
Perez-Zumaeta owned and managed PSPS Sales LLC, a California entity that recruited low-income individuals to apply for Lifeline service through Icon. According to court records, Icon paid over one million dollars to PSPS Sales from December 2011 through April 2013. Perez-Zumaeta was charged with directing PSPS Sales workers to enroll fictitious customers for Icon by using phone book listings and forging Lifeline application forms. He also allegedly directed workers in Mexico to falsify approximately 40,000 Lifeline recertification forms for use in Icon’s fraudulent scheme.
On November 7, 2014, Perez-Zumaeta pled guilty to money laundering by depositing a $52,390.00 check from Icon into a bank account of PSPS Sales on December 7, 2012. He admitted that when he made that deposit, he knew that more than $10,000.00 of those funds was the result of criminal fraud against the FCC.
Perez-Zumaeta has been in federal custody since April 25, 2014, when he was arrested at the San Francisco airport. At his sentencing hearing yesterday, Judge DeGiusti ordered Perez-Zumaeta to serve 42 months in prison, followed by two years of supervised release.
Related Case
On June 12, 2014, Chew pled guilty to money laundering for his transfer of $20,455,829.10 on April 9, 2013, from an Icon account to a personal account. He admitted that when he made that transfer, he knew that Icon had tens of thousands fewer customers than it had reported to the FCC for the first three months of 2013. Also on June 12, 2014, as the sole owner of Icon, Chew also entered a guilty to plea on behalf of the company to knowingly making a false statement to the FCC on May 13, 2013. Chew admitted that in response to a USAC audit request, Icon intentionally fabricated customer recertification forms, which included fictitious signatures. As part of their plea, Chew and Icon agreed to the forfeiture of $20,542,740.73, which the United States seized on October 4, 2013, from a personal account at Ally Bank that belonged to Chew. They also agreed not to contest the forfeiture of $6,485,933.82 seized on October 7, 2013, from two Icon accounts at BancFirst.
On April 2, 2015, Judge DeGiusti ordered that Chew serve 48 months in federal prison, followed by three years of supervised release, and pay a fine of $117,166.48 (which is the anticipated cost of his federal imprisonment). Chew’s company, Icon Telecom, was sentenced to three years of probation. Chew and Icon agreed not to contest the forfeiture of more than $27 million seized during the investigation.
These cases are the result of an investigation by the Office of Inspector General for the Federal Communications Commission; the Federal Bureau of Investigation; and the Internal Revenue Service Criminal Investigation. These cases are being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Scott E. Williams.
Reference is made to the information and other public filings for further information
Federal grand jury indicts two Ferriday residents, Bossier City woman for Veterans Affairs benefits fraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted a Ferriday couple for hiding income in order to receive more than $197,000 in veterans benefits and a Bossier City woman for stealing veterans’ benefits and lying about the income during bankruptcy proceedings.
Alfred Lewis Jr., 67, and Rose M. Lewis, 63, of both of Ferriday, La., were charged by a federal grand jury with one count of conspiracy to commit theft of government funds and one count of theft of government funds. According to the indictment, from January 2004 until November 2013 the Lewis couple conspired to take approximately $197,784 in Veterans Affairs benefits. In July of 2003, the defendants submitted an application to the Department of Veterans Affairs for pension benefits without listing Rose Lewis’ income. The addition of Rose Lewis’ income, which was more than $54,000 in 2008 and 2009, would have made them ineligible to receive the Veterans Affairs benefits.
A federal grand jury also charged Gloria Lynn Perry, 65, of Bossier City, La., in a separate indictment with one count of theft of government funds and one count of false statement in a bankruptcy matter. According to the indictment, Perry illegally received Veterans Affairs benefits on behalf of her mother from April 1, 2008 through July 1, 2014. Her mother had died in February of 2008. Perry also filed for bankruptcy in 2014. On September 5, 2014, she falsely stated on bankruptcy documents that her income other than employment in the past two years was $7,950 in 2013 and $5,967 in 2014. The truth was she obtained at least $12,000 in 2013 and at least $7,000 in 2014 in Veterans Affairs benefits.
If convicted, all three defendants face up to 10 years in prison for the theft count.
The Lewises face up to five years in prison for the conspiracy count, and Perry faces up to five years in prison for the bankruptcy count. They also face three years of supervised release, restitution and a $250,000 fine.
The Veterans Affairs-Office of Inspector General investigated the cases. Assistant U.S. Attorney Cytheria Jernigan is prosecuting the cases.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Federal Jury in Del Rio Convicts Carrizo Springs-Based Alien Smuggling Operation RingleaderRead the Press Release
In Del Rio today, a federal jury convicted 44–year-old Eduardo Rocha, Sr. (aka “Lalo”), for his leadership role in an undocumented alien smuggling ring operating in Carrizo Springs, TX, that tortured victims while waiting for ransom payments announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge James Spero and Dimmit County Sheriff Marion Boyd.
As a result of today’s verdict, Rocha faces up to 20 years in prison each for conspiracy to transport illegal aliens involving serious bodily injury and conspiracy to transport illegal aliens involving serious bodily injury; up to 20 years in prison on each of three separate counts of harboring an illegal alien involving serious bodily injury; and, up to life in prison on each of two counts of conspiracy to commit hostage taking. Sentencing is scheduled for October 14, 2015, at 2:00pm.
Evidence presented during trial revealed that Rocha, Sr. operated his smuggling cell between Carrizo Springs and Piedras Negras, Mexico since at least 2013. Rocha, Sr. claimed to be affiliated with Los Zetas, a trans-national Drug Trafficking Organization operating out of Mexico. Members of Rocha, Sr.’s cell had used buildings located at Rocha’s Carrizo Springs property to hold the illegal aliens before transport further into the United States. Witnesses testified that Rocha held the aliens against their will in an effort to extort more money from family members in the United States.
Evidence also revealed that Rocha ordered his accomplices to torture the illegal aliens being held captive in an effort to extort money. A female was raped multiple times, and family members were made to listen over the telephone as aliens were tortured with a hammer, and threatened with decapitation and mutilation. A family member in Virginia called 911, which prompted a rescue operation by Dimmit County Sherriff’s Deputies, Agents with Homeland Security Investigations, and U.S. Border Patrol on May 4, 2014.
Jurors also made a special finding in their verdict that the smuggling offenses each involved serious bodily injury. They also found that Rocha’s Carrizo Springs property should be forfeited to the United States.
Co-conspirators Atanacio Daniel Castro, Eduardo Rocha, Jr., Christopher Jones, Tara Cournoyer, and Esmeralda Cruz remain in federal custody. All have already pleaded guilty to federal conspiracy charges relating to their involvement in Rocha, Sr.’s smuggling operation and are awaiting sentencing.
This case was investigated by HSI agents out of Eagle Pass, TX, with the support of the Dimmit County Sheriff’s Office, U.S. Border Patrol, and the Texas Department of Public Safety criminal laboratory. The case was prosecuted by Assistant United States Attorneys Matthew Watters and Patrick Burke.
Federal Indictment Charges East Providence Resident with Conspiracy, Transportation of Minors and Sex Trafficking of MinorsRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence has returned a six-count indictment charging Reginald Chaney, a/k/a “Reggie”, 19, of East Providence, with conspiracy, sex trafficking of a child and transportation of a minor. It is alleged that Chaney conspired to recruit, transport and coerce two minor females to engage in commercial sex acts.
The indictment charges Chaney with conspiracy to commit sex trafficking of a child, conspiracy to transport a minor, and two counts each of sex trafficking of a child and transportation of a minor.
The indictment, returned on Wednesday, is announced by United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England; Providence Police Chief Colonel Hugh T. Clements, Jr.; East Providence Police Chief Christopher J. Parella; and Seekonk, Mass., Police Chief Craig A. Mace.
According to information provided to the court previously, on or about January 18, 2015, Reginald Chaney met two young females, ages 15 and 16, and drove them to a residence in East Providence. It is alleged that at the direction of Chaney, photographs were taken of the victims for the purpose of being displayed on Backpage.com. Later that evening the victims were driven by Chaney to a motel in Seekonk, Mass., and the photographs were then posted on Backpage.com.
It is alleged that on several occasions between on or about January 18, 2015, and January 30, 2015, Chaney arranged for meetings between the victims and individuals who responded to advertisements on Backpage.com, offering the victims for the purposes of commercial sexual activity. The meetings allegedly occurred at motels in Seekonk, Mass., and at locations in Providence, Warwick, Charlestown and Narragansett.
Reginald Chaney was arrested in East Providence by East Providence Police on January 29, 2015, based on information developed during an investigation conducted by the Providence Police Department with assistance of Homeland Security Investigations. Chaney is currently being held in Rhode Island state custody as a superior court probation violator on a 5-year suspended sentence imposed on January 14, 2015, on a weapons charge.
An arraignment date in federal court on the indictment returned on Wednesday has not yet been scheduled. An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Conspiracy to commit sex trafficking of a child and sex trafficking by force or coercion of a child is punishable by statutory penalties of up to life in federal prison with a mandatory minimum term of 15 years and a fine of up to $250,000. Conspiracy to transport a minor and transportation of a minor are punishable by statutory penalties of up to life in federal prison with a mandatory minimum term of 10 years and a fine of up to $250,000.
The case is being prosecuted jointly in federal court by Assistant U.S. Attorney Pamela E. Chin and Assistant Rhode Island Attorney General Daniel Carr Guglielmo.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Federal Charges Filed Against Five Crews Involved in Violent Robberies Throughout Metro AreaRead the Press Release
HOUSTON - In an effort to stem the influx of violent crime in the Houston area, U.S. Attorney Kenneth Magidson announced the filing of five criminal complaints charging 22 defendants with either bank robbery or commercial robbery as well as various firearms charges. Magidson made the announcement along with Perrye K. Turner, special agent in charge of the FBI, and Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), as well as various state and local authorities.
The charges in the five separate but similar cases represent a joint initiative aimed at reducing violent takeover robberies of local businesses by organized crews of armed robbers. The criminal complaints were filed April 20-22, 2015, as four of the defendants were taken into custody. An additional 17 defendants have been transferred from state custody to federal custody. Three of those defendants will make their initial appearances in federal court April 24, 2015, at 10:00 a.m. before U.S. Magistrate Judge Frances Stacy, while the remaining 14 are expected to appear April 27-28, 2015, before U.S. Magistrate Judge Stephen Smith. The last defendant remains a fugitive and a warrant remains outstanding for his arrest. Anyone with information about the whereabouts of Michael Cornelious, 25, is asked to contact the FBI at 713-693-5000.
In the first case, Cornelious, Kevin Wayne Viser, 37, Fareed Jerrell Barefield, 26, Carey Dion Mitchell, 24, Johnny Ray Jones, 38, and James Leonard Ferguson, 33, all of Houston, are charged with aiding and abetting bank robbery and aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence. On Aug. 5, 2013, Jones and Ferguson allegedly entered the JP Morgan Chase Bank located at 2929 Shaver Street in Pasadena and ordered customers and employees to the floor at gun point and stole U.S. currency. The complaint filed in that case alleges that while Jones and Ferguson were in the bank, Viser, Barefield, Mitchell and Cornelious were outside conducting surveillance. Cornelious communicated with the suspects inside the bank through an open cell phone connection.
In the second unrelated case, Keith Deshawn Stephens, 27, Keon Kervin Jackson, 26, and Duquam Orlander Mathis, 21, all of Houston, are charged with aiding and abetting bank robbery and discharging a firearm during and in relation to a crime of violence. The criminal complaint alleges that on July 16, 2014, Mathis and Jackson entered the JP Morgan Chase Bank located at 6810 Fry Road in Katy and ordered customers and employees to the floor at gun point. They stole a large amount of U.S. currency, while one of them allegedly fired a shot into the bank’s ceiling to make sure no one followed when they exited. While Mathis and Jackson were in the bank, Stephens was outside of the bank conducting surveillance and communicating with Mathis and Jackson through an open cell phone connection.
The third criminal complaint announced today alleges Calvin Smith, 18, Rodney Ford, 18, Jamone Jones, 20, and Jerrol Bluford, 21, all of Houston, were part of a separate crew responsible for dozens of violent takeover robberies occurring in Harris County. All four men are charged with a federal offense known as the Hobbs Act, interference with commerce by robbery and using and carrying of a firearm during and in relation to a crime of violence. According to the charges, on Jan. 25, 2015, Smith, Ford, Jones and Bluford entered the Metro PCS store at 834 Little York Road #B in Houston. Two of the men were allegedly armed with handguns. Employees of the store were ordered at gunpoint to open the safe and registers in the business and a small amount of U.S. currency was stolen.
The fourth case involves the violent robbery or attempted robbery of three commercial businesses in the North Houston area. Jerrieus Williams, 30, Alonzo Flowers, 22 , Kye Rue, 22, Andre Coleman, 23, and Paul McCoy Jr., 23, all of Houston, are charged with Hobbs Act conspiracy to interfere with commerce by robbery and aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence. On Jan. 14, 2015, Flowers, Coleman and McCoy allegedly entered Jet Pawn, a federal firearms licensee located at 6135 F.M. 2920 in Spring. They were armed with handguns. One of the store employees was ordered at gunpoint to open the safe, from which cash and a firearm were taken. Additionally, 25 guns were stolen from cases on the sales floor. While the robbery was in progress, Williams was across the street conducting surveillance and communicating through an open cell phone line with Coleman. Rue acted as the driver of the getaway car and was waiting outside of the store when the robbers exited.
These same defendants were also allegedly involved in the armed robbery of Cash America Pawn, located at 3211-B F.M. 1960 in Humble on Jan. 9, 2015. The day before the robbery, Williams and Rue cased the pawn store, while Williams and McCoy were identified as the actual robbers. McCoy allegedly held a gun to the head of the store manager and Rue acted as the getaway driver, according to the complaint. These defendants also allegedly attempted to rob the Mad Dog Smoke Shop at 966 West F.M. 1960 in Houston on Jan. 29, 2015. Flowers and Rue allegedly entered the smoke shop with guns and masks covering their faces. However, an employee of the business retrieved his firearm and shot at the suspects, at which time the suspects fell to the ground, but managed to escape before police could arrive. The suspects dropped a firearm, which was later identified as a firearm stolen from Jet Pawn, according to the allegations.
In the final case announced today, Keith Deshawn Stephens, 27, Zachary Loudd, 23, Jerrel James, 21, Andrew Holley, 22 and Crystal Lewis, 22, all of Houston, are charged with aiding and abetting bank robbery and aiding and abetting the use and carrying of a firearm during and in relation to a crime of Violence. On June 27, 2014, three defendants entered the JP Morgan Chase Bank located at 4755 W. Panther Creek in The Woodlands. They ordered customers and employees to the floor at gunpoint and stole a large amount of U.S. currency.
Those charged with aiding and abetting bank robbery face up to 25 years imprisonment, while the conspiracy to interfere with commerce by robbery or interference with commerce by robbery have maximum penalties of 20 years in federal prison. For those charged with aiding and abetting in the possession or using and carrying a firearm during and in relation to a crime of violence, they face a mandatory seven years in prison which must be served consecutively to the other sentence imposed. If convicted of the discharge of a firearm, those defendants face a mandatory 10-year consecutive sentence.All of the charges also carry as punishment a possible $250,000 fine.
The charges in the respective cases are the result of an investigation by the FBI and ATF along with sheriff’s offices in Harris, Montgomery and Fort Bend Counties, police departments in Houston and Pasadena, Texas Rangers and the Harris County District Attorney’s Office with the assistance of CrimeStoppers.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal and Local Law Enforcement Team up for Emphasis Operation in Downtown SeattleRead the Press Release
A four-month undercover law enforcement operation is culminating this week with state and federal arrests of more than 95 defendants whose drug dealing and related criminal activity has plagued downtown Seattle, announced Acting U.S. Attorney Annette L. Hayes. The Seattle Police Department, FBI, King County Prosecutors Office, and the U.S. Attorney’s Office are coordinating a strategy aimed at removing what has become an open air drug market at Pike/Pine and Third Avenue in downtown Seattle. Thirty-seven people have been indicted federally –primarily those drug dealers with the most serious criminal histories. The defendants will appear in U.S. District Court in Seattle over the next few days.
“This operation is about much more than locking up offenders. It is about taking back a key part of our city by addressing the range of factors that allowed it to become a one-stop shop for drugs,” said Acting U.S. Attorney Annette L. Hayes. “We are pleased to be working closely with the City and our federal and local law enforcement partners who all bring important tools to bear to this problem. In our case, we will be asking judges to ban these offenders from coming back to the Pike/Pine area and will hold those who do to account, so that we can return the area to everyone who lives, works and visits our great city.”
The detention motions filed in the federal cases detail the crime problem in the Pike/Pine corridor. In 2014, there were over ten thousand calls for police service in this area alone – an average of twenty-seven calls per day. Four of the seven most dangerous blocks in the entire city fall within this area, as measured by the number of violent crimes. For a three-year period beginning near the end of 2010, there were over 500 violent crimes that occurred on these blocks. Although not all of the violence is directly linked to the drug trade, the open drug market in the area has contributed to a sense of lawlessness, and appears to have brought a number of people to the area with serious criminal histories. Some of the violent incidents include: the March 2015 shooting of a man at 3rd and Pine resulting in serious injuries; the January 2015, shooting of a sixteen-year-old and a twenty-five-year old when more than a dozen shots were fired near Third Avenue and Pine Street; robberies and beatings of citizens in summer 2013; and the March 2013, injury to a twenty-three-year-old woman who was walking just outside of Pike Place Market and was hit by a stray bullet.
“The FBI partners regularly with the SPD Major Crimes Task Force in stopping individuals who violate the law and endanger our community,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle Division. “In this operation, it was our intent to make an immediate, positive impact on a drug market operating brazenly in the heart of our city.”
“The successful operations this week underscore the value of collaborative enforcement efforts with our Federal and regional partners,” said Chief Kathleen O’Toole. “We will continue our collective efforts to promote safe and healthy neighborhoods, Downtown and throughout the City.”
Defendants who have been charged federally sold a wide array of drugs in the Pike/Pine area. Undercover officers bought heroin, cocaine, methamphetamine, prescription drugs and marijuana from offenders whose criminal histories include convictions for attempted rape, robbery, burglary, assault, drug trafficking and illegal use and possession of firearms.
“Seattle residents and visitors should not be forced to navigate a dangerous open-air drug market between the downtown retail core and Pike Place Market,” said Mayor Murray. “Our comprehensive nine-and-a-half block strategy will help break the cycle of addiction by expanding LEAD diversions, while removing violent repeat offenders from our streets. My thanks to the men and women of Seattle Police Department, as well as our federal and local law enforcement partners, for their success in one of the largest criminal investigations in Seattle history.”
“Downtown Seattle is a regional jewel that belongs to all of us,” said King County Prosecutor Dan Satterberg. “Drug dealing, and the misery, violence and crime that follows in its wake, has no place in our downtown. We will shut it down with every tool we have.”
“Legalizing and regulating marijuana and using harm reduction tools to address hard drug addiction does not mean standing by as the heart of our downtown continues for years to house a large-scale, outdoor market for illegal drug sales,” said City Attorney Pete Holmes. “Smarter public policies on drugs never meant that we have to accept open-air drug markets. The approach we’re taking today is an effort to strike the balance necessary to enforce the law and clean up downtown without falling back into the wasteful and counterproductive cycle of the War on Drugs.”
This initiative is jointly led by the Seattle Police Department and the FBI. The federal cases are being prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods. The King County prosecutions are being coordinated by Senior Deputy Prosecutor Mary Barbosa.
Farmington Woman Pleads Guilty to Committing Wire Fraud to Facilitate Scheme to Defraud Insurance CompaniesRead the Press Release
ALBUQUERQUE – Michelle Smith, 33, of Farmington, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to committing wire fraud in furtherance of a scheme to defraud insurance companies. Under the terms of her plea agreement, Smith will be sentenced to a prison term within the range of 18 to 24 months. The plea agreement also provides for the entry of an order requiring Smith to pay restitution to the victims of her criminal conduct as well as the entry of a money judgment against Smith in the amount of $128,371.00, which represents a portion of the profit she derived from her criminal activity.
Smith was charged in Feb. 2014 in an indictment that included 14 counts of wire fraud and four counts of aggravated identity theft. The charges arose out of Smith’s scheme to defraud Allstate Workplace Division and American Heritage Life Insurance (Allstate) of approximately $224,000.00 in advance commissions by submitting fraudulent policy enrollments. At the time of the offenses charged in the indictment, Smith was employed by Wells Insurance Agencies (Wells), exclusive brokers for Allstate with offices in Farmington, as an insurance agent to sell Allstate insurance policies.
According to the indictment, Allstate paid its brokers a commission for each Allstate insurance policy the broker sold. When Allstate received a new policy enrollment, Allstate paid the broker an advance commission amounting to a percentage of six months’ work of premiums on the policy. If the enrollee canceled the policy or fails to pay premiums for six months, the broker was required to return the advance commission to Allstate. When Smith was employed by Wells, Wells paid Smith 70% of the advance commissions she generated by submitting Allstate insurance policy enrollments.
The indictment alleged that from Aug. 2009 through May 2010, Smith devised and engaged in a scheme to defraud Allstate and Wells by submitting fraudulent policy enrollments and obtaining advance commissions to which she was not entitled. During the ten month period, Smith submitted enrollments in the names of approximately 150 different enrollees for a total of approximately 505 Allstate insurance policy enrollments. The enrollment forms transmitted electronically to Allstate by Smith were in the names of individuals who had not purchased insurance from Allstate and had forged signatures. Between Nov. 2009 and April 2010, Smith received approximately $224,000.00 in advance commissions based on the fraudulent enrollments she submitted to Allstate.
Today Smith pled guilty to Count 13, a wire fraud charge, of the Indictment and admitted that between Nov. 2009 and April 2010, she devised a scheme to fraudulently obtain advance commission payments from Allstate and Wells. She further admitted facilitating the scheme by submitting 505 insurance policy enrollments to Allstate, all of which were fraudulent because none of the persons listed on the enrollment forms had agreed to purchase insurance policies from Allstate. Smith acknowledged that as a result of her fraudulent scheme, Allstate issued approximately $324,239.00 in advance commission payments and that she personally received at least $128,371.00 of those payments.
A sentencing hearing for Smith has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
FCI Gilmer inmate convicted, sentenced for unlawful possession of opioid medicationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jerry Gifford, 43, an inmate at the Federal Correctional Institution, Gilmer was convicted and sentenced today for unlawful possession of Buprenorphine, a narcotic medication, United States Attorney William J. Ihlenfeld, II, announced.
An investigation revealed that Gifford arranged to have Suboxone, an opioid medication used to treat addiction and dependence, shipped into the prison in letters addressed to a fellow inmate. He pled guilty today to one count of “Attempted Possession of a Prohibited Object (Buprenorphine).” He was sentenced to an additional six months in prison.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Federal Bureau of Prisons and the FCI Gilmer Special Investigative Services Unit investigated.
U.S. Magistrate Judge John S. Kaull presided.
Edwards County Woman Pleads Guilty to Bank Embezzlement ChargeRead the Press Release
Rachel J. Knasinski, 33, of West Salem, Illinois, pleaded guilty to bank embezzlement charges brought in an Information filed in United States District Court in Benton, Illinois, on April 22, 2015, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Knasinski admitted in her guilty plea that from November 2011, to on or about January 9, 2015, in Edwards County, Knasinski, being an employee of The First State Bank of West Salem, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud The First State Bank of West Salem, did willfully embezzle the sum of over $300,000 of the moneys or funds intrusted to the custody or care of The First State Bank of West Salem.
Knasinski faces a possible penalty of up to 30 years imprisonment, up to $1,000,000 fine, and supervised release of up to 5 years at her sentencing, which has been set for August 4, 2015, in United States District Court in Benton, Illinois.
The investigation in this case was conducted by the Federal Bureau of Investigation.
The case is being handled by Assistant United States Attorney George Norwood.
District Court Enters Permanent Injunction to Prevent Chicago Company and Two Individuals from Distributing Adulterated Mung Beans and Soybean SproutsRead the Press Release
The U.S. District Court for the Northern District of Illinois entered a consent decree for permanent injunction against Wholesome Soy Products Inc., Julia Trinh and Paul Trinh to prevent them from distributing adulterated mung bean and soybean sprouts, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Northern District of Illinois on April 3, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, Wholesome Soy received, processed, manufactured, prepared, packed, held and distributed ready-to-eat mung bean and soybean sprouts. Wholesome Soy operated at 1150 West 40th Street in Chicago.
“We must work to ensure that the food we buy from store shelves is safe and produced under sanitary conditions,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will continue to work with our partners at FDA to accomplish that goal.”
The complaint alleged that Julia Trinh is the owner and president of Wholesome Soy, and that until recently, she was responsible for purchasing supplies and equipment, managing contracts and agreements with contractors, handling customer service, hiring, firing, scheduling training, implementing procedures and maintaining quality assurance. The complaint also alleged that Paul Trinh was a manager at Wholesome Soy, and that until recently, he was responsible for production operations, sprout processing and training new hires.
The complaint alleged that the company’s food was prepared, packed and/or held under insanitary conditions and that the defendants failed to institute practices and procedures necessary to ensure that the company can receive, process, manufacture, prepare, pack, hold and distribute food under sanitary conditions.
According to the complaint, the FDA conducted inspections of the company’s facility from Aug. 12, 2014 through Sept. 3, 2014, and in October 2014. As described in the complaint, FDA found insanitary conditions and significant sanitary deficiencies in the October inspection that were repeat observations from the previous inspection. The repeated deficiencies included employee practices that allowed for potential contamination of food contact surfaces and food products; cleaning practices that were inadequate; pest control measures that were ineffective; equipment and utensils that were not properly maintained; and a sprout production environment that was not properly maintained.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree for permanent injunction. Under the permanent injunction, Wholesome Soy, Julia Trinh and Paul Trinh are permanently restrained from directly or indirectly receiving, processing, manufacturing, preparing, packing, holding and/or distributing at the facility at 1150 West 40th Street any article of food, unless the defendants make several changes to their facility, including remedial measures and an implementation of a Listeria monitoring program.
The government is represented by the Civil Division’s Consumer Protection Branch with the assistance of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Deutsche Bank's London Subsidiary Agrees to Plead Guilty in Connection with Long-Running Manipulation of LIBORRead the Press Release
DB Group Services (UK) Limited, a wholly owned subsidiary of Deutsche Bank AG (Deutsche Bank), has agreed to plead guilty to wire fraud for its role in manipulating the London Interbank Offered Rate (LIBOR), a leading benchmark interest rate used in financial products and transactions around the world. In addition, Deutsche Bank entered into a deferred prosecution agreement to resolve wire fraud and antitrust charges in connection with its role in both manipulating U.S. Dollar LIBOR and engaging in a price-fixing conspiracy to rig Yen LIBOR. Together, Deutsche Bank and its subsidiary will pay $775 million in criminal penalties to the Justice Department.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
DB Group Services (UK) Limited has agreed to plead guilty to one count of wire fraud, and to pay a $150 million fine, for engaging in a scheme to defraud counterparties to interest rate derivatives trades by secretly manipulating U.S. Dollar LIBOR contributions.
In addition, Deutsche Bank entered into a deferred prosecution agreement today and admitted its role in manipulating LIBOR and participating in a price-fixing conspiracy in violation of the Sherman Act by rigging Yen LIBOR contributions with other banks. The agreement requires the bank to continue cooperating with the Justice Department in its ongoing investigation, to pay a $625 million penalty beyond the fine imposed upon DB Group Services (UK) Limited and to retain a corporate monitor for the three-year term of the agreement.
Together with approximately $1.744 billion in regulatory penalties and disgorgement—$800 million as a result of a Commodity Futures Trading Commission (CFTC) action, $600 million as a result of a New York Department of Financial Services (DFS) action, and $344 million as a result of a U.K. Financial Conduct Authority (FCA) action—the Justice Department’s criminal penalties bring the total amount of penalties to approximately $2.519 billion.
“For years, employees at Deutsche Bank illegally manipulated interest rates around the globe – including LIBORs for U.S. Dollar, Yen, Swiss Franc and Pound Sterling, as well as EURIBOR – in the hopes of fraudulently moving the market to generate profits for their traders at the expense of the bank’s counterparties,” said Assistant Attorney General Caldwell. “Deutsche Bank is the sixth major financial institution that has admitted its misconduct in this wide-ranging criminal investigation, and today’s criminal resolution represents the largest penalty to date in the LIBOR investigation.”
“Deutsche Bank secretly conspired with its competitors to rig the benchmark interest rates at the heart of the global financial system,” said Assistant Attorney General Baer. “Deutsche Bank’s misconduct not only harmed its unsuspecting counterparties, it undermined the integrity and the competitiveness of financial markets everywhere.”
“Deutsche Bank admitted to manipulating benchmark interest rates in currencies around the globe in order to benefit trading positions,” said Assistant Director in Charge McCabe. “This wide reaching investigation represents yet another step in the FBI’s ongoing effort to find and stop those who deliberately participate in complex financial crimes to further their own bottom line.”
Deutsche Bank was a member of the panel of banks whose submissions were used to calculate the LIBORs for a number of currencies, including U.S. Dollar, Yen, Pound Sterling and Swiss Franc LIBOR, as well as EURIBOR (the Euro Interbank Offered Rate).
According to the agreements, from at least 2003 through early 2011, numerous Deutsche Bank derivatives traders—whose compensation was directly connected to their success in trading financial products tied to LIBOR—engaged in efforts to move these benchmark rates in a direction favorable to their trading positions. Specifically, the derivatives traders requested that LIBOR submitters at Deutsche Bank and other banks submit contributions favorable to trading positions, rather than rates that complied with the definition of LIBOR. Through these schemes, Deutsche Bank defrauded counterparties who were unaware of the manipulation. Deutsche Bank admitted that the conduct affected the resulting LIBOR fix on various occasions.
Deutsche Bank further admitted that its employees engaged in this misconduct through face-to-face requests, electronic communications, which included both emails and electronic chats, and telephone calls. For example, in an electronic chat on March 22, 2005, a Deutsche Bank U.S. Dollar LIBOR submitter explained how he would manipulate the rate for a trader in New York, stating, “if you need something in particular in the libors i.e. you have an interest in a high or a low fix let me know and there’s a high chance i’ll be able to go in a different level. Just give me a shout the day before or send an email from your blackberry first thing.”
In another example described in the statement of facts, on May 17, 2006, the supervisor of LIBOR submissions in London received a request from a trader in New York asking, “If you can help we can use a high 3m fix tom.” The supervisor replied to the trader and a U.S. Dollar LIBOR submitter, “I’m off but [submitter] is your libor man [] [submitter] could you take a look at 3s libor in the morning for [trader].” The submitter agreed to accommodate the request, replying, “Will do chaps.” The following morning, after he submitted the bank’s contribution, the submitter wrote to the trader, “I went in at 19+ for the 3m libor, as you’ll see it almost manage to reach 19.”
In an example from March 2007, a trader thanked one of Deutsche Bank’s EURIBOR submitters for his help in successfully manipulating EURIBOR, saying in an electronic chat: “Great job on this [Submitter], we can do more of this stuff,” to which the submitter replied, “WE CAN MY FRIEND. WE CAN….” Later that day, the submitter bragged about Deutsche Bank’s manipulation by offices in Frankfurt and London in an email to the head of Deutsche Bank’s Global Finance Unit: “HAVE U SEEN THE 3MK FIXING TODAY? THAT WAS AN EXCELLENT CONCERTED ACTION FFT/LDN. CHEERS.”
Deutsche Bank also admitted to working with other banks to manipulate LIBOR contributions. For instance, in a May 2009 electronic chat exchange, a UBS trader asked a Deutsche Bank trader, “cld you do me a favour would you mind moving you 6m libor up a bit today, i have a gigantic fix. . .” The Deutsche Bank trader agreed. The next day, the Deutsche Bank trader confirmed that the Yen LIBOR submission had been beneficial to the UBS trader, asking “u happy with me yesterday?” The UBS trader acknowledged, “thx.”
By entering into a deferred prosecution agreement with Deutsche Bank, the Justice Department took several factors into consideration, including that Deutsche Bank’s cooperation with the government’s investigation was often helpful but also fell short in some important respects. The department also considered the extensive remedial measures undertaken by Deutsche Bank’s management and its enhanced compliance program. Deutsche Bank has agreed to continue cooperating with the government’s investigation, and the agreement does not prevent the Justice Department from prosecuting culpable individuals for related misconduct. The documents will be filed in federal court in the District of Connecticut.
The Justice Department has previously announced resolutions with five other banks for their roles in manipulation of benchmark interest rates, including Barclays Bank PLC, UBS AG, The Royal Bank of Scotland plc, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) and Lloyds Banking Group plc. The department has also charged 12 individuals as a result of this investigation, and three of those individuals have pleaded guilty. The pending charges are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This ongoing investigation is being conducted by special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office. The prosecution of Deutsche Bank is being handled by Assistant Chief Jennifer L. Saulino and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section and Trial Attorney Richard A. Powers of the Antitrust Division’s New York Field Office. Deputy Chief Benjamin D. Singer and Assistant Chief Sandra Moser of the Criminal Division’s Fraud Section, Trial Attorney Daniel Tracer of the Antitrust Division’s New York Office, Assistant U.S. Attorneys Liam Brennan and Christopher Mattei of the District of Connecticut and the Criminal Division’s Office of International Affairs have also provided valuable assistance in this matter.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation. The Securities and Exchange Commission has also played a significant role in the LIBOR series of investigations. Various agencies and enforcement authorities in the United States and from other nations, including the United Kingdom’s Serious Fraud Office, BaFIN and the European Central Bank, are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
Deutsche Bank Group Services Statement of Facts
Deutsche Bank Group Services Plea Agreement
Deutsche Bank AG Statement of Facts
Deutsche Bank AG Deferred Prosecution Agreement
Cruise Line Employee Admits Abusive Sexual Contact of Sleeping Woman on Cruise ShipRead the Press Release
NEWARK, N.J. – A Mauritius man today admitted sexually abusing a sleeping woman aboard a cruise ship, U.S. Attorney Paul Fishman announced.
Karan Seechurn, 25, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of abusive sexual contact.
According to documents filed in this case and statements made in court:
Seechurn was employed by a cruise line and was responsible for restocking the minibars located in passengers’ rooms. In order to conduct this duty, he was provided with a key that gave him access to passengers’ rooms. Seechurn admitted that on Dec. 23, 2014, while he was off-duty, he entered a passenger’s room and encountered a sleeping woman. Seechurn admitted that he touched the passenger’s genitalia while she was asleep.
The abusive sexual contact charge to which Seechurn pleaded guilty carries a maximum potential penalty of three years in prison. Sentencing is scheduled for August 3, 2015.
The federal government has special maritime jurisdiction over sexual abuse cases, such as those that occur on cruise ships.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office General Crime Unit in Newark.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
seechurn_karan_information.pdf
Colombian Man Convicted of False Claims of U.S. Citizenship and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jaime Tovar-Montoya, a/k/a Jimmy Diaz Tovar (57, Colombia, South America), guilty of making false claims of U.S. citizenship and aggravated identity theft. He faces a maximum penalty of 20 years in federal prison. A sentencing hearing is scheduled for July 21, 2015. Tovar-Montoya was indicted on April 15, 2015.
According to testimony and evidence presented at trial, Tovar-Montoya, a citizen of Colombia, applied for and received a Florida Identification Card in 2010, claiming that he was a U.S. citizen and using the name and birth certificate of a resident of Puerto Rico. Later that year, he used the identification card as proof of identity to apply for a U.S. passport, again claiming to be a citizen of the United States, and using the same name, birth date, and Social Security Number of the Puerto Rico resident.
Under federal law, a person who uses a means of identification of another person without lawful authority in order to commit another felony offense is guilty of aggravated identity theft, which carries a mandatory two-year sentence, in addition to any other sentence received. Having been convicted and adjudicated guilty of two counts of aggravated identity theft, Tovar-Montoya currently faces a mandatory minimum sentence of four years’ imprisonment, in addition to any other sentence he may receive.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
Chula Vista Corporate Officers Guilty of International Trafficking in Counterfeit Cell PhonesRead the Press Release
SAN DIEGO - Three corporate officers of Chula Vista-based Ohr, Inc., as well as the corporation itself, pleaded guilty yesterday to charges related to their international trafficking in counterfeit cell phones.
In pleading guilty, Michael Deitz, Sidney Schwarz, and Leora Schwarz admitted that they were officers of Ohr, Inc., from August 29, 2009, through May 31, 2013. The company was engaged in importing cellular phones and accessories from Taiwan to Chula Vista, which were later sold in retail stores in Mexico.
Deitz admitted that he was responsible for ordering the products sold by Ohr, Inc., while Sidney Schwarz acknowledged he was responsible for paying the suppliers. Deitz and Sidney Schwarz admitted that many of the cellular phones and accessories imported from China for Ohr, Inc., were counterfeit, in that they bore unauthorized copies of trademark owned by Apple, Samsung, Motorola, Nokia, Sony Ericsson and Blackberry, among others. They further admitted that they received at least nine notices from U.S. Customs, advising that the products they had imported were counterfeit and had been seized during the relevant period.
After learning that the source was supplying them with counterfeit goods, Deitz and Sidney Schwarz continued to do business with the supplier. Deitz also acknowledged that he received emails from his suppliers in China, discussing “illegal logos” and “copy logos” in relation to the cellular phone products he was purchasing, which he forwarded to Schwarz for payment of the attached invoices.
Deitz admitted in his plea agreement that he was aware that the items identified in the invoices as “copy,” “copy logo,” and “AAA” were counterfeit, and that all the cell phone housings and batteries that he purchased from China bearing trademarks were counterfeit. Both men and the company admitted that on August 9, 2011, Customs seized a box of goods ordered by Deitz on behalf of Ohr, Inc., and addressed to Schwarz’s residence which contained hundreds of counterfeit Nokia and Blackberry cell phone housings and hundreds of counterfeit Motorola, Sony Ericsson, Blackberry and Samsung cell phone batteries (shipped from the supplier who had previously shipped counterfeit goods that had been seized). The men acknowledged that the value of the counterfeit goods they imported from China was between $120,000 and $320,000, and agreed to forfeit $150,000, the proceeds of the offense.
Leora Schwarz admitted that on January 14, 2010, she received a notice from U.S. Customs, advising her that all importers of electronics and cellular phone products whose commercial value exceeded $2,500 had the duty to present formal entry documents to Customs for such entries. Leora Schwarz was aware that shipments of cellular phone products whose value exceeded $2,500 were being sent to Ohr, Inc. from China, and she took no action to have formal entry documents prepared, intended that the merchandise enter through the mail without formal inspection.
Deitz, Sidney Schwarz and Ohr, Inc, are set to be sentenced on July 24, 2015, at 8:30 a.m. before U.S. District Judge Gonzalo Curiel. Leora Schwarz was sentenced to one year of probation and a $1,000 fine.
DEFENDANTS Case Number: 14-CR-1075-GPC Ohr, Inc. Incorporated: 2007 Chula Vista, California Michael Deitz Age: 39 Chula Vista, California Sidney Schwarz Age: 60 Chula Vista, California Leora Schwarz Age: 32 Chula Vista, California CHARGESDefendants Ohr, Inc., Michael Deitz and Sidney Schwarz
Count 18: Importation Contrary to Law, in violation of Title 18, United States Code, Sections 545 and 2
Maximum penalties: Twenty years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture and $100 special assessment.Criminal Forfeiture, in violation of Title 18, United States Code, Section 981(A)(1)(C) and 982(a)(1)(A) and (B); Title 31, United States Code, Section 5317(c)(1) and Title 28, United States Code, Section 2461(d)
Defendant Leora Schwarz
Failure to Present Entry Documents, a misdemeanor, in violation of Title 19, United States Code, Sections 1433 and 1436(c) and Title 18, United States Code, Section 2
INVESTIGATING AGENCIES
Maximum penalty: One year in prison, a $100,000 fine, a term of supervised release of one year, restitution, and a $25 penalty assessmentHomeland Security Investigations
U.S. Postal Inspection ServiceChinese Nationals Sentenced in New Mexico for Conspiring to Violate Arms Export Control ActRead the Press Release
This afternoon, a federal judge in the District of New Mexico sentenced two Chinese nationals for conspiring to violate the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR) by scheming to illegally export defense articles with military application to the People’s Republic of China, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Damon P. Martinez of the District of New Mexico.
Bo Cai, 29, of Nanjing, China, was sentenced to 24 months in prison and his cousin Wentong Cai, 30, of Chifeng, China, was sentenced to 18 months in federal prison. Both will be deported after completing their prison sentences. The two men were charged in three-count superseding indictment with a scheme to illegally export sensors primarily manufactured for sale to the U.S. Department of Defense for use in high-level applications, such as line-of-sight stabilization and precision motion control systems. The Arms Export Control Act and the ITAR prohibit the export of defense-related materials from the United States without obtaining a license or written approval from the U.S. Department of State.
Bo Cai entered a guilty plea to all three counts of the superseding indictment in July 2014, and Wentong Cai pleaded guilty to Count 3 of the superseding indictment in December 2014. In entering the guilty pleas, each admitted that from March 2012 to December 2013, they conspired with each other to illegally export sensors from the United States to China without first obtaining the required export license. Bo Cai admitted that in March 2012, while he was employed by a technology company in China, he embarked on an illegal scheme to smuggle sensors out of the United States to China for one of his customers despite knowledge that the sensors could not be exported without a license and that the United States did not issue licenses to export the sensors to China. Wentong Cai admitted that while he was in the United States on a student visa, Bo Cai enlisted him to acquire the sensors under the ruse that he planned to use the sensors at Iowa State University where he was a graduate microbiology student.
Court filings indicate that the investigation of this case began in October 2013, when an undercover U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) agent responded to Wentong Cai’s overtures. After negotiations by telephone and email, in December 2013, Bo Cai and Wentong Cai traveled to New Mexico, where they obtained a sensor from undercover HSI agents and developed a plan for smuggling the sensor out of the United States to China. On Dec. 11, 2013, Bo Cai was arrested at an airport in Los Angeles, as he was preparing to board a flight to China, after the sensor was discovered concealed in a computer speaker in his luggage. Wentong Cai subsequently was arrested on Jan. 22, 2014, in Ames, Iowa.
The HSI Albuquerque, New Mexico, office led the investigation of this case with assistance from the U.S. Air Force Office of Special Investigations, the Defense Security Service, HSI in Iowa and Los Angeles and the FBI. Iowa State University cooperated throughout with HSI’s investigation. Assistant U.S. Attorneys Dean S. Tuckman and Fred J. Federici of the District of New Mexico prosecuted the case with assistance from Deputy Chief Deborah Curtis and Trial Attorneys David Recker and Brian Fleming of the Justice Department’s National Security Division. The U.S. Attorney’s Office of the Central District of California and the U.S. Attorney’s Office of the Southern District of Iowa also assisted in the prosecution.
Chinese Nationals Sentenced in New Mexico for Conspiring to Violate Arms Export Control ActRead the Press Release
ALBUQUERQUE – This afternoon, a federal judge in the District of New Mexico sentenced two Chinese nationals for conspiring to violate the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR) by scheming to illegally export defense articles with military application to the People’s Republic of China, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Damon P. Martinez of the District of New Mexico.
Bo Cai, 29, of Nanjing, China, was sentenced to 24 months in prison and his cousin Wentong Cai, 30, of Chifeng, China, was sentenced to 18 months in federal prison. Both will be deported after completing their prison sentences. The two men were charged in three-count superseding indictment with a scheme to illegally export sensors primarily manufactured for sale to the U.S. Department of Defense for use in high-level applications, such as line-of-sight stabilization and precision motion control systems. The Arms Export Control Act and the ITAR prohibit the export of defense-related materials from the United States without obtaining a license or written approval from the U.S. Department of State.
Bo Cai entered a guilty plea to all three counts of the superseding indictment in July 2014, and Wentong Cai pleaded guilty to Count 3 of the superseding indictment in December 2014. In entering the guilty pleas, each admitted that from March 2012 to December 2013, they conspired with each other to illegally export sensors from the United States to China without first obtaining the required export license. Bo Cai admitted that in March 2012, while he was employed by a technology company in China, he embarked on an illegal scheme to smuggle sensors out of the United States to China for one of his customers despite knowledge that the sensors could not be exported without a license and that the United States did not issue licenses to export the sensors to China. Wentong Cai admitted that while he was in the United States on a student visa, Bo Cai enlisted him to acquire the sensors under the ruse that he planned to use the sensors at Iowa State University where he was a graduate microbiology student.
Court filings indicate that the investigation of this case began in October 2013, when an undercover U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) agent responded to Wentong Cai’s overtures. After negotiations by telephone and email, in December 2013, Bo Cai and Wentong Cai traveled to New Mexico, where they obtained a sensor from undercover HSI agents and developed a plan for smuggling the sensor out of the United States to China. On Dec. 11, 2013, Bo Cai was arrested at an airport in Los Angeles, as he was preparing to board a flight to China, after the sensor was discovered concealed in a computer speaker in his luggage. Wentong Cai subsequently was arrested on Jan. 22, 2014, in Ames, Iowa.
The HSI Albuquerque, New Mexico, office led the investigation of this case with assistance from the U.S. Air Force Office of Special Investigations, the Defense Security Service, HSI in Iowa and Los Angeles, the FBI and the U.S. Department of State. Iowa State University cooperated throughout with HSI’s investigation. Assistant U.S. Attorneys Dean S. Tuckman and Fred J. Federici of the District of New Mexico prosecuted the case with assistance from Deputy Chief Deborah Curtis and Trial Attorneys David Recker and Brian Fleming of the Justice Department’s National Security Division. The U.S. Attorney’s Office of the Central District of California and the U.S. Attorney’s Office of the Southern District of Iowa also assisted in the prosecution.
Children’s Summer Camps and the Americans with Disabilities ActRead the Press Release
2015 is the 25th anniversary of the Americans with Disabilities Act (ADA). The U.S. Department of Justice is committed to the goals of the ADA and its enforcement. The United States Attorney’s Office for the Middle District of Pennsylvania is urging everyone to be especially mindful of children protected and helped by the ADA. For that reason, we are marking the ADA’s anniversary by issuing a letter with ADA information to children’s summer camps in counties within the Middle District.
The information is contained in a brochure which briefly describes the ADA’s requirements, lists helpful tips for summer camps and provides resources for further information.
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. This means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are also obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Additional information about the ADA is available at www.ada.gov, or through contacting the ADA information line at (800) 514-0301 (voice) or (800) 514-0383 (TTY).
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Cancer Center Guilty of Purchasing Misbranded Foreign DrugsRead the Press Release
CORPUS CHRISTI, Texas – Dr. Mohamad Ayman Ghraowi has entered a guilty plea on behalf of Corpus Christi-based South Texas Comprehensive Cancer Centers PLLC (STCCC) to a violation of the federal Food, Drug and Cosmetic Act (FDCA), announced U.S. Attorney Kenneth Magidson announced.
STCCC was charged with causing the introduction into interstate commerce of misbranded prescription cancer drugs worth more than $900,000, between Feb. 22, 2010, and Jan. 17, 2012. STCCC was a professional association existing under Texas state law with clinics located within the Southern District of Texas, which provided care and treatment for patients with cancer and blood diseases.
In 2012, the Food and Drug Administration (FDA) received information from the United Kingdom Medicines and Healthcare Products Regulatory Agency regarding the appearance of counterfeit versions of the cancer drug Avastin. Regulators determined that some of these counterfeit drugs may have been illegally imported into the U.S. FDA investigators tracked the counterfeit drugs to a distributor offering numerous misbranded foreign drugs for sale to cancer clinics in the U.S. STCCC was determined to be one of the clinics purchasing misbranded foreign drugs from the distributor.
The FDA is responsible for protecting the health and safety of the American public by ensuring, among other things, that drugs are safe and effective for their intended uses and that the drugs bear labeling that contains true and accurate information. FDA's responsibilities include regulating the manufacture and distribution of drugs, including prescription drugs, shipped or received in interstate commerce, as well as the labeling of such drugs. FDA carries out its responsibilities by enforcing the FDCA and other pertinent laws and regulations.
One of the goals of the FDCA has been to ensure the integrity of America’s drug supply. Congress determined that the public interest in the purity of prescription drugs and pharmaceutical products distributed to American consumers is so great as to warrant imposition of the highest standard of care on those who distribute those products to the public. Under the FDCA, the responsibility for maintaining the quality and safety of drugs is not placed on the innocent public that purchases drugs but rather on those who sell and distribute drugs. Under the FDCA, consumers have a right to expect that drug distributors will be vigilant and responsible in matters that affect the public health.
While the U.S. wholesale distribution market is highly regulated, many other markets around the world are not. Pharmaceutical distributors who circumvent U.S. law and illegally import foreign pharmaceuticals into the United States put American consumers at risk for receiving counterfeit, misbranded or adulterated drugs.
Following the guilty plea, U.S. Magistrate Judge B. Janice Ellington ordered the corporation to serve five years of probation and forfeit $900,000, an amount equivalent to the purchase price of the misbranded drugs.
The case was investigated by FDA - Office of Criminal Investigations, U.S. Department of Health and Human Services – Office of Inspector General, Defense Criminal Investigative Service and the Texas Attorney General’s Office – Medicaid Fraud Control Unit. The case is being prosecuted by Assistant United States Attorney (AUSA) Robert D. Thorpe Jr. and Special AUSA Brittany Jensen.
CEO Who Oversaw Multimillion-Dollar Corporate Accounting Fraud Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEVEN KAITZ, the chief executive officer and one of three owners and principals of G3K Displays, Inc., and related entities (“G3K”) – a New Jersey-based company that provided in-store displays for retailers – pled guilty today in Manhattan federal court to an elaborate scheme to defraud G3K’s lenders and customers out of millions of dollars. Among other things, KAITZ admitted that he and others fraudulently inflated G3K’s sales and accounts receivable to secure millions of dollars in loans, and falsely verified to G3K’s lenders and outside auditors false financial information about G3K. KAITZ was charged along with four others in January 2015, and he pled guilty today before United States District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “With today’s guilty plea, Steven Kaitz has taken responsibility for his role in a scheme to inflate his company’s sales and accounts in order to secure over $18.6 million in loans. Not only did Kaitz obtain these funds for his company through lies and misrepresentations, but he also misappropriated some of the money for himself, spending it on luxury items and kickbacks.”
According to the Indictment and statements made during the plea proceeding:
KAITZ, was one of three owners and principals of G3K, a company that manufactured and designed displays for retailers around the world, including major retailers of sports apparel and footwear.
From approximately 2012 to May 2014, in order to trick various lenders, including Veritas Financial Partners, LLC, and MVC Capital, into lending at least $18.6 million to G3K, KAITZ and others engaged in a scheme to falsely inflate G3K’s revenue and accounts receivable, and as part of the scheme, made and caused to be made materially false and misleading statements about G3K’s financial condition. To create the false impression of sales, the defendants created phony documents, including fake and falsely inflated purchase orders purporting to reflect sales to G3K’s customers. The defendants also tricked certain of the company’s customers into paying falsely inflated invoices from G3K.
The defendants took elaborate steps to keep the scheme afloat and prevent G3K’s lenders and outside auditors from discovering the fraud. For example, KAITZ was involved in the creation of fake email accounts purporting to belong to fictitious employees of Footlocker and Adidas, G3K’s two largest customers. KAITZ and his co-defendants operated these fake email accounts themselves, pretending to be employees of those customers, and then used those fake email accounts to “verify” false information about G3K’s financial condition, including its sales and accounts receivable, to G3K’s lenders and outside auditors. To keep their scheme afloat, KAITZ and the other owners of G3K also utilized shell companies to engage in “round-trip” transactions to create the false appearance that customers were paying G3K’s phony outstanding receivables.
KAITZ and the other owners of G3K further misappropriated approximately $2.8 million of the loan proceeds for their own personal use, to pay for homes and luxury cars, private school tuition, and personal credit card bills, as well as kickbacks to another co-defendant in exchange for her role in the scheme.
As of May 2014, when G3K’s lenders terminated their lending relationships with the company after discovering the fraud, G3K had approximately $18.6 million in loans outstanding.
KAITZ, 56, of Jersey City, New Jersey, pled guilty to one count of conspiracy to commit bank fraud and wire fraud, which carries a maximum sentence of 30 years in prison. As part of the plea agreement, he agreed to pay restitution in the amount of $18,600,000, and he agreed to forfeit $1,382,427. KAITZ is scheduled to be sentenced by Judge Rakoff on September 8, 2015, at 4:00 p.m.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The charges remain pending against KAITZ’s co-defendants, who are presumed innocent unless and until they are proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Complex Frauds & Cybercrime Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Rosemary Nidiry are in charge of the prosecution.
U.S. v. Steven Kaitz, et al. Indictment
Buffalo Man Sentenced for Committing Six Bank RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Michael Mitchell, a/k/a Max, 22, of Buffalo, NY, who was convicted of six counts of bank robbery, was sentenced to 108 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S Attorney Mary Catherine Baumgarten, who handled the case, stated that between October 2013 and January 9, 2014, Mitchell committed six bank robberies and aided another individual in committing a seventh robbery in the Buffalo and Rochester, NY areas.
In October 2013, the defendant planned then aided another individual in robbing the First Niagara Bank at 529 Elmwood Avenue in Buffalo on October 23, 2013. Mitchell also committed the following robberies:
• December 3, 2013, First Niagara Bank, 529 Elmwood Avenue, Buffalo
• December 16, 2013, First Niagara Bank, 805 Main Street, Niagara Falls
• December 26, 2013, First Niagara Bank, 70 Lyell Avenue, Rochester
• December 27, 2013, KeyBank, 201 Amherst Street, Buffalo
• January 3, 2014, M&T Bank, 130 Grant Street, Buffalo
• January 9, 2014, First Niagara Bank, 1248 Abbott Road, LackawannaDuring each of the robberies, Mitchell passed a note to the teller demanding money and threatened the use of a weapon.
“While some bank robbery investigations may take a bit longer than others, this case demonstrates that eventually all who commit such crimes get caught,” said U.S. Attorney Hochul.
Co-defendant Sheila L. Cassata pleaded guilty to bank robbery and will be sentenced on June 5, 2015 at 12:00 p.m.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lackawanna Police Department, under the direction of Chief James Michel, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and Rochester Police Department, under the direction of Chief Michael Ciminelli.
Broward Resident Pleads Guilty to Traveling to Colombia to Engage in Sexual Activity with MinorsRead the Press Release
Dennis De Jesus, 46, of Fort Lauderdale, pled guilty to traveling to Colombia in order to engage in illicit sexual activity with two persons under the age of eighteen, enticing the minors to engage in sexual activity, and knowingly possessing a visual depiction of a minor engaged in sexually explicit conduct.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Office, and Luis Sierra, Country Attaché HSI Andean Region, Colombia, made the announcement.
According to court documents and statements made in court, the ICE-HSI’s Attaché Office in Colombia and the Colombian Attorney General’s Technical Investigative Corps Transnational Criminal Investigative Unit (CTI TCIU) conducted an undercover operation into a sex trafficking ring that was suspected of exploiting minors in Colombia.
In September 2014, HSI in Bogotá, Colombia received information that Dennis De Jesus intended to travel, the following month, from the United States to Colombia in order to engage in sexual activity with minors.
In an effort to further the investigation, a confidential source working with law enforcement created an undercover account on a social media internet networking site. De Jesus became a social media friend of the confidential source utilizing the account. During the course of their internet communications, De Jesus discussed his plans to travel to Colombia in order to engage in illicit sexual activity with minors in Colombia.
On October 11, 2014, law enforcement officers executed a search warrant at De Jesus’s home in North Lauderdale, Florida. During the search, agents discovered a computer in De Jesus’s bedroom, in addition to various costumes and masks. A forensic analysis of the computer recovered videos depicted De Jesus with minors wearing costumes and masks. At least one of the recovered videos showed two minors engaging in sexual acts.
Law enforcement also recovered De Jesus’ cellular telephone. The telephone contained text messages between De Jesus, the undercover officer and two minors. In the messages, De Jesus stated that he intended to return to Colombia in order to have a private party with minor females engaged in the sex tourism trade. De Jesus also referenced his previous trip to Colombia, during which time he and a minor engaged in illicit sexual acts. Using his cellular telephone, De Jesus sent photographs of the costumes and presents he intended to give the minors in exchange for the sexual acts.
The investigation further revealed that De Jesus had traveled to Medellin, Colombia in June 2013 and engaged in illicit sexual conduct with minor females.
De Jesus is scheduled to be sentenced on June 30, 2015 at 9:00 a.m. by U.S. District Judge James I. Cohn. At sentencing, De Jesus faces a mandatory minimum term of 10 years in prison up to a statutory maximum term of life in prison. \
Mr. Ferrer commended the investigative efforts of HSI (Miami and Bogota), United States Customs and Border Protection, Department of Justice, Judicial Attaché’s Office in Bogota, Colombia, Broward Sheriff’s Office, Florida Department of Law Enforcement, CTI TCIU, Colombian Navy, Colombian Army Special Forces, and Instituto Colombiano de Bienestar Familiar. This case is being prosecuted by Assistant U.S. Attorneys Francis Viamontes and Jodi Anton.
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.
Boise Man Pleads Guilty to Possession of Meth and Unlawful Possession of a FirearmRead the Press Release
BOISE – Rodolfo Antonio Ortega, 29, of Boise, Idaho, pleaded guilty to one count of possessing methamphetamine for distribution, and one count of felon in possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to court proceedings, Ortega was arrested in a Boise hotel parking lot on October 21, 2014. When the officers searched his car they found a loaded .357 Colt revolver, 9.5 ounces of methamphetamine, scales, baggies, and about $4,774 in cash. Ortega admitted that he is a convicted felon and knowingly possessed the firearm. Ortega has two prior felony convictions. He also admitted that he possessed the methamphetamine with intent to distribute it. According to his plea agreement, Ortega acknowledges that he is a Career Offender, which will enhance the sentencing guideline range applicable to his case.
The penalty for possession of meth with intent to distribute it is not less than 5 years, and not more than 40 years. Possession of a firearm by a convicted felon is punishable by imprisonment for not more than 10 years. Punishment as a Career Offender increases the punishment range. Ortega’s sentencing is set for July 7, 2015 before U.S. District Judge B. Lynn Winmill.
The Indictment was handed down on November 13, 2014. The case was investigated by the Boise City Police Department and the Drug Enforcement Administration.
Armed Robbery Spree Gets Wayne County Man Long Prison TermRead the Press Release
PHILADELPHIA – Dale Mentzer, 37, of Waymart, PA, was sentenced today to 264 months in prison for a string of armed robberies that he committed, between July 11, 2013 and July 19, 2013 with a co-defendant, in Berks, Chester, Lebanon, and Northampton Counties. Mentzer and Heath DeRizzo, 38, of Manheim, PA, were charged with two counts of interference with interstate commerce by robbery, four counts of bank robbery, two counts of use and carrying of a firearm during a crime of violence, and two counts of convicted felon in possession of a firearm. A third defendant, Samantha Henderson, 24, of Fredericksburg, PA, was charged with accessory to robbery after the fact. Mentzer pleaded guilty on December 11, 2014. DeRizzo and Henderson also pleaded guilty and will be sentenced next month. U.S. District Court Judge Edward G. Smith ordered the federal prison term to run consecutive to a 15-year sentence Mentzer is currently serving in Maryland for other robberies. He also ordered restitution in the amount of $8,926, a special assessment of $800, and five years of supervised release.
Mentzer and DeRizzo committed armed robberies at a Sovereign Bank branch in Kutztown, on July 11, 2013; a Northwest Savings Bank branch in Myerstown, on July 16, 2013; a First Cornerstone Bank branch in Phoenixville and The Rodeway Inn motel in Muhlenberg, on July 18, 2013; a National Penn Bank branch, on July 19, 2013; and, that same day, Cihylik Farms in Allen Township. Henderson assisted Mentzer and DeRizzo in their efforts to avoid apprehension.
The case was investigated by the Federal Bureau of Investigation-Allentown Resident Agency, Pennsylvania State Police, East Pikeland Township Police Department, Northampton Police Department, the Northampton County District Attorney’s Office, Kutztown Police Department, Muhlenberg Township Police Department, Worcester County Bureau of Investigation, and FBI Baltimore-Salisbury Resident Agency. It is being prosecuted by Assistant United States Attorney John Gallagher and Special AUSA Kelly Lewis Fallenstein.
Acting US Attorney Jill Westmoreland Rose Statement on the Sentencing of David PetraeusRead the Press Release
Acting U.S. Attorney Jill Westmoreland Rose released the following statement on the sentencing of David Petraeus:
“Good afternoon. David Petraeus appeared before U.S. Magistrate Judge David Keesler of the Western District of North Carolina today and admitted to the unauthorized removal and retention of classified information and lying to the FBI and CIA about his possession and handling of classified information. Petraeus was sentenced to a two-year probationary term and was ordered to pay $100,000 fine. I want to thank my colleagues at DOJ National Security Division, the Charlotte FBI office for leading the investigation, as well as all our investigative partners for their work on the case.”
Acting US Attorney Jill Westmoreland Rose Statement on the Sentencing of David PetraeusRead the Press Release
CHARLOTTE – Acting U.S. Attorney Jill Westmoreland Rose released the following statement on the sentencing of David Petraeus:
“Good afternoon.David Petraeus appeared before U.S. Magistrate Judge David Keesler of the Western District of North Carolina today and admitted to the unauthorized removal and retention of classified information and lying to the FBI and CIA about his possession and handling of classified information.Petraeus was sentenced to a two-year probationary term and was ordered to pay $100,000 fine.I want to thank my colleagues at DOJ National Security Division, the Charlotte FBI office for leading the investigation, as well as all our investigative partners for their work on the case.”
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Acoma Pueblo Man Sentenced to Federal Prison for Assaulting His Intimate PartnerRead the Press Release
ALBUQUERQUE – Brian J. Juanico, 37, a member and resident of the Acoma Pueblo, N.M., was sentenced today in Albuquerque, N.M., to 18 months in federal prison followed by three years of supervised release for assaulting his intimate partner. He also was ordered to pay a fine in the amount of $53,424.00.
Juanico was arrested on Aug. 15, 2014, on a criminal complaint alleging that on April 6, 2014, he assaulted his intimate partner, an Acoma Pueblo woman, by strangulation. According to the complaint, Juanico committed the crime on the Acoma Indian Reservation in Cibola County, N.M. Court records reflect that Juanico was arrested on related tribal charges on May 1, 2014.
Juanico was indicted in Sept. 2014, in an indictment charging him with assaulting his intimate partner on April 6, 2014. The indictment alleged that Juanico strangled and attempted to suffocate the victim three separate and distinct times on that day.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
AUSA Mark Bennett honored for prosecuting mortgage-fraud casesRead the Press Release
Assistant U.S. Attorney Mark S. Bennett was honored this week for his work prosecuting mortgage-fraud cases by the United States Department of Housing and Urban Development – Office of Inspector General.
Bennett has prosecuted nearly 100 defendants involved in mortgage fraud. Northeast Ohio is recognized as one of the areas hardest hit by the mortgage-fraud crisis that swept the country in the early 2000s.
“Your efforts have truly made a difference to the public,” Nicholas Padilla, Jr., the deputy assistant Inspector General for HUD, said in presenting the award.
“Mark has been tenacious in seeking justice for the victims of mortgage fraud, and those who caused so much hardship in our city,” said U.S. Attorney Steven M. Dettelbach.
Among the cases Bennett has prosecuted:
United States v. Thomas France: France, of Strongsville, was sentenced to more than 10 years in prison and ordered to pay more than $3 million in restitution for fraud involving six properties in Medina. France was part of a group that sold the homes at fraudulently inflated purchase prices. All the homes eventually went into foreclosure, resulting in a loss of approximately $3.3 million.
United States v. Anthony Viola and Uri Gofman: Viola, a real estate company owner from Cleveland Heights, was sentenced to more than 12 years in prison and real estate owner Uri Gofman, of Beachwood, was sentenced to more than eight years in prison. A jury convicted Viola and Gofman of multiple counts related to the fraudlulent sale of 34 homes, resulting in a loss of more than $3 million.
United States v. Romero Minor, et. al: Minor, of Macon, Georgia, was sentenced to nearly six years in prison for fraud involving $7.5 million and 48 properties in Mahoning and Trumbull Counties. Minor recruited straw buyers to “purchase” properties in their names. Minor represented to the straw buyers that he needed individuals like them with good credit to apply for mortgage loans on properties in their names as a way of helping other individuals in the community with bad credit who could not purchase homes in their own names, He then conspired with others to prepare and submit fraudulent mortgage loan applications to various mortgage lenders knowing that they contained false information. Minor received thousands of dollars at closing from the mortgage proceeds with the assistance of the title agents. Overall, nine people were convicted of crimes for their roles in the scheme.
Bennett, 45, joined the U.S. Attorney’s Office in 2007. He previously worked for the Ohio Attorney General. He is a graduate of Baldwin Wallace College and the Cleveland-Marshall College of Law and serves on the Legal Aid Society’s board.
Wednesday 22 April 2015
“Mr. Move” Owner Sentenced on Eight Counts of Operating an Illegal Interstate Moving BusinessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DUNWOODIE MCDUFFIE, age 48, a resident of Metairie and the owner of a Metairie moving company, was sentenced today on eight counts of conducting interstate household goods moves without the proper Department of Transportation authorities.
According to court records, MCDUFFIE pled guilty on November 5, 2014, to an eight-count Bill of Information. In 2007, MCDUFFIE applied for authorization to conduct interstate moves with his company Mr. Move, but never followed through with the various requirements to maintain authority to conduct interstate moves. MCDUFFIE nonetheless continued to operate his interstate moving business, knowing that he lacked the proper authority to do so. Each of the eight charges represents a different move conducted by MCDUFFIE’s business in 2013.
U.S. District Judge Martin L.C. Feldman sentenced MCDUFFIE to 6 months imprisonment, to be followed by 1 year of supervised release.
U.S. Attorney Polite praised the work of the Department of Transportation, Office of the Inspector General in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
West Dundee Man Indicted for Allegedly Receiving and Possessing Child PornographyRead the Press Release
CHICAGO ― A federal grand jury returned a two count indictment charging BRUCE H. NIGGEMANN with receiving and possessing child pornography, federal law enforcement officials announced today.
Niggemann, 65, of West Dundee, was indicted April 16 on one count of receiving and one count of possessing child pornography, all via computer. The indictment was under seal until Niggemann’s arrest this morning. Niggemann was arraigned earlier today in U.S. District Court before Judge Charles R. Norgle, Sr. He remains in federal custody until a detention hearing scheduled for April 27, 2015 at 11:30 before Magistrate Judge Sheila M. Finnegan.
The indictment also seeks forfeiture of a laptop computer and a desktop computer and hard drives that were seized at Niggemann’s residence when special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Niggemann’s residence in West Dundee.
In the circumstances in this case, receiving child pornography carries a maximum sentence of 40 years and a mandatory minimum sentence of 15 years in prison, while the count of possession carries a maximum sentence of 20 years, and a mandatory minimum sentence of ten years. Each count also carries a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago. The Kane County Sheriff’s Office assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Kaarina Salovaara.
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.
Indictment
Washington Man Sentenced to Prison on Counterfeiting ChargesRead the Press Release
HELENA – A Renton, Washington man, who passed fraudulent money orders in Montana, Idaho, Washington, and Oregon, was sentenced today to 5 years in federal prison. U.S. District Judge Charles Lovell ordered James Henry Hernandez, Jr., 48, to serve 60 months in prison followed by 3 years supervised release. Hernandez was also ordered to pay $30,560 in restitution. In November 2014, Hernandez pleaded guilty to conspiracy to make and possess a counterfeited security of an organization.
Assistant U.S. Attorney Chad Spraker told the court that on August 30, 2013, Butte-Silverbow Law Enforcement officers responded to a report from Lucky Lil’s Casino that a man had passed counterfeit money orders. Upon arriving, officers asked the defendant for identification. He produced a Washington driver’s license with a false name.
During a search of the defendant’s truck, law enforcement found a number of items of contraband and suspected contraband including (1) 77 money grams in envelopes; (2) several cashed money grams; (3) 17 counterfeit $50 bills (4) a ledger listing the names of casinos and stores; (5) computer software, paper, and cutting material commonly used to manufacture counterfeit money orders and currency; (6) an electronic scale, loaded syringes, drug paraphernalia, and a padded mailing envelope with a Washington address containing OxyContin pills; (7) five Washington driver’s licenses with Hernandez’s picture, each with a different name; and (8) a social security card with an alias.
The defendant was interviewed and confessed to manufacturing currency and money orders. Hernandez further stated that he made out the money orders using fraudulent identification documents and then cashed them throughout Montana. He then went to various businesses to purchase items or reloadable debit cards. The investigation revealed the fraudulent money orders had been used to purchase goods and services in several stores throughout the northwest.
The case was investigated by Homeland Security Investigations and the United States Secret Service.
U.S. Customs and Border Protection Officer in El Paso Pleads Not Guilty to Falsification of Records in InvestigationRead the Press Release
In El Paso today, 45-year-old Supervisory Department of Homeland Security U.S. Customs and Border Protection (CBP) officer Marco Antonio Aveytia waived his arraignment and entered a not guilty plea to lying to federal authorities in connection with an ongoing investigation announced Acting United States Attorney Richard L. Durbin, Jr., CBP Deputy Special Agent in Charge Art Martinez, Jr., and Special Agent in Charge Douglas E. Lindquist of the FBI’s El Paso Division.
A federal grand jury indictment returned last Wednesday charges Aveytia with one count of falsification of records in a federal investigation. The indictment alleges Aveytia that on January 26, 2014, Aveytia provided false information that his government issued firearm was stolen during a burglary of his residence.
Upon conviction, Aveytia faces up to 20 years in federal prison and a maximum $250,000 fine.
Aveytia, who was arrested on Monday, is currently on bond awaiting further court proceedings. Jury selection and trial, before U.S. District Judge Philip Martinez, has yet to be scheduled.
The case resulted from a joint investigation by the CBP-Office of Internal Affairs and the FBI. This case is being prosecuted by Assistant United States Attorney Greg McDonald.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Two Six Nation Gang Members from Hammond IndictedRead the Press Release
HAMMOND – Two alleged members of the Two Six Nation street gang were indicted on attempted murder and firearms charges.
Charles Luis Garcia-Berrios, 22, and Julio Ivan Cartagena, 24, both of Hammond Indiana, were indicted on Wednesday, April 15, 2015 in the Northern District of Indiana on charges of attempted murder in aid of racketeering and use of a firearm during and in relation to a crime of violence. The charges arise from a car chase and shooting that occurred on August 31, 2013, during which stray rounds penetrated the house of a Hammond Police Department officer.
Both defendants appeared today before Judge John E. Martin for a hearing. Charles Luis Garcia-Berrios pleaded not guilty, waived detention and was detained pending trial. Julio Ivan Cartagena also pleaded not guilty and has a detention hearing scheduled for April 30, 2015.
The United States Attorney’s Office emphasized that an Indictment is merely an allegation and not proof of guilt. All persons charged are presumed innocent until and unless proven guilty in court.This case is being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Hammond Police Department. This case is being prosecuted by the United States Department of Justice Criminal Division Trial Attorney Andrew Creighton and Assistant U.S. Attorney David Nozick of the Northern District of Indiana.
Two Men Arrested for Conspiracy to Manufacture Marijuana in Rockford Warehouse on 11Th StreetRead the Press Release
ROCKFORD — Two Chicago area men were arrested today after being indicted yesterday by a federal grand jury in Rockford and charged with conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. Arrested were: GEORGE H. BACUS, 51, of Niles, Ill., and JEREMIAH N. CLEMENT, 37, of Des Plaines, Ill. Also charged in the indictment were YOUSIF Y. PIRA, 62, of Chicago, Ill., and JUSTIN T. PAGLUSCH, 33, of Ingleside, Ill. The indictment alleges that between Jan. 2, 2013, and Jan. 6, 2015, the defendants conspired to illegally grow and store marijuana in a warehouse located at 1916 11th Street in Rockford. According to the indictment, Bacus initially contracted to purchase the warehouse on Jan. 2, 2013. The indictment alleges that Clement later entered into a lease with an option to purchase the warehouse. The warehouse was destroyed by a fire on Jan. 6, 2015.
Bacus is scheduled to appear before U. S. Magistrate Judge Iain D. Johnson for an initial appearance today at 3:00 p.m. in federal court in Rockford. Clement is scheduled to appear in federal court in Hartford, Connecticut at 1:30 p.m today. Arrest warrants for Pira and Paglusch were issued on April 21, 2015, and both are still at large.
The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison and a $10 million fine. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Derek Bergsten, Chief of the Rockford Fire Department. The Winnebago County Sheriff’s Department Narcotics Unit and Rockford Police Department Narcotics Unit assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Indictment
Two Iowa Men Sentenced for Armed Robbery of Burlington Junction BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Iowa men were sentenced in federal court today for the armed robbery of a Burlington Junction, Mo., bank.
Donald D. Kestner, Jr., 27, of Mt. Pleasant, Iowa, and Travis Joe Davis, 28, of Fort Dodge, Iowa, were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Kestner was sentenced to 17 years in federal prison without parole. Davis was sentenced to 16 years and eight months in federal prison without parole.
Kestner pleaded guilty on Oct. 28, 2014, to one count of bank robbery and one count of brandishing a firearm during a crime of violence. Davis pleaded guilty on Oct. 30, 2014, to one count of bank robbery. Co-defendant Torrence Joseph O’Neill, also known as “Torry,” 27, of Pleasant, Iowa, pleaded guilty to bank robbery on Oct. 21, 2014, and awaits sentencing.
Kestner, Davis and O’Neill stole $12,282 from Citizens Bank and Trust, 102 W. Main St., Burlington Junction, Mo., on March 21, 2014. Kestner and Davis entered the bank about about 11:10 a.m. while O’Neill waited in their vehicle, a 1996 Ford Explorer, parked in an alley next to the bank.
Upon entering the bank, Kestner and Davis began yelling and brandishing weapons. Kestner brandished a silver semi-automatic pistol and Davis was armed with what appeared to be a black Uzi, but was later determined to be an air pistol. Davis remained in the lobby, while Kestner went behind the teller stations with the three bank employees. Kestner grabbed money from teller drawers. During the robbery, Kestner pointed his gun directly at a teller.
Kestner, Davis and O’Neill were arrested shortly after the robbery occurred. A Maryville Department of Public Safety officer, riding in an airplane being piloted by a citizen, spotted the three men walking and they were arrested by the Missouri State Highway Patrol. The vehicle used in the bank robbery was discovered hidden among some trees.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Nodaway County, Mo., Sheriff’s Department, the Maryville, Mo., Department of Public Safety, the Missouri State Highway Patrol, the Page County, Iowa, Sheriff’s Department and the FBI.
Two Honduran Citizens Plea to Drug and Immigration ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN SANTOS PERDOMO, age 33, and OLVIN SANTOS PERDOMO, age 26, citizens of Honduras who reside in New Orleans, pled guilty today to a five-count Indictment charging them with conspiracy to possess with intent to distribute cocaine and, in the case of MARVIN SANTOS PERDOMO, reentry of an illegal alien.
According to the court records, MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO conspired to distribute and distributed cocaine hydrochloride, a Schedule II controlled drug substance. Additionally, MARVIN SANTOS PERDOMO was illegally in the United States after being previously departed.
U.S. District Judge Stanwood R. Duval, Jr. set sentencing on July 29, 2015. MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO face a maximum term imprisonment of twenty years and/or a fine of $1,000,000.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Two Colombian Citizens Plead Guilty in International Money Laundering ConspiracyRead the Press Release
Two Colombian citizens pled guilty for their participation in an international money laundering conspiracy.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Leonardo Forero Ramirez, 59, and Ubaner Alberto Acevedo Espinosa, 32, each pled guilty to one count of conspiracy to commit money laundering.
According to court documents, both Acevedo and Forero were Colombian citizens residing in Bogota. During 2008 and 2009, Acevedo handled customer accounts at a stock brokerage firm that offered accounts which could be used by customers to receive deposits, wire transfers, and other credit or money, and to disburse the funds through wire transfers and cash or other withdrawals. The stock brokerage firm was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions. Forero was one of Acevedo's customers.
During the course of his participation in this scheme, Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Acevedo was involved in the transfer of approximately $335,000 from IRS undercover accounts in the United States to the stock brokerage firm in Colombia, and the conversion of the dollars into pesos and their withdrawal by Forero. Both Acevedo and Forero knew that the money was derived from criminal activity.
Two other co-defendants indicted in this case are awaiting extradition from Columbia.
Sentencing for both defendants is scheduled before U.S. District Court Judge Ursula Ungaro on July 17, 2015 at 1:30 pm. At sentencing, the defendants each face a maximum of twenty years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
Two Beckley men plead guilty to selling crack cocaineRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Dshawn Dozier, 34, and Michael Hodge, 36, both of Beckley, West Virginia, pleaded guilty today in federal court to distributing cocaine base, commonly known as crack cocaine. Dozier and Hodge both admitted that they sold crack in the fall of 2014 to individuals who were cooperating with law enforcement authorities. Both drug deals took place on Rice Street in Beckley.
Dozier and Hodge face up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for August 13, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigations.
Topeka Man Sentenced on Child Porn ChargesRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to 76 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said today.
James A. Greer, 43, Topeka, Kan., was sentenced Tuesday in U.S. District Court in Topeka. He pleaded guilty to one count of distributing child pornography. In his plea, he admitted that on March 15, 2012, an officer working with an FBI task force in Kansas City, Mo., used the Internet to download child pornography from Greer’s computer in Topeka.
A forensic exam of Greer’s electronic devices revealed approximately 900 image files and 290 video files containing child pornography.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Texas Man Indicted for Attempted Sexual Enticement of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Michael Doherty (51, Texas) with attempted sexual enticement of a minor. If convicted, he faces a mandatory minimum term of 10 years, up to life, in federal prison. The indictment also notifies Doherty that the United States intends to forfeit the electronic media that is alleged to have been used in the commission of the offense.
According to court documents, on March 10, 2015, an FBI agent acting in an undercover capacity (“UC”) responded to an Internet advertisement that Doherty had posted about incestuous sexual encounters. The UC responded to the ad posing as the father of a 10-year-old daughter that he was sexually abusing. Over the next several days, Doherty and the UC discussed the UC’s abuse of his “daughter.” Doherty told the UC that he wanted to watch the UC have sex with the child, and also requested naked photos of the child.
Doherty later told the UC that he traveled to Florida on business and wanted to “watch” the UC and the child. Over the course of the next several days, Doherty and the UC continued to discuss Doherty’s plans to visit. Doherty sent the UC numerous explicit pictures of himself, and he told the UC that when they met, he wanted to have sex with the 10-year-old girl.
On April 8, 2015, Doherty traveled from Miami to Lake Mary, and rented a hotel room. On his way, he stopped and bought a present for the child. When Doherty left his hotel and approached the “father” with whom he had been communicating, he was arrested.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sumter County Man Convicted of Federal Firearm OffenseRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Jerry Wana Taylor (52, Coleman) guilty of possessing a firearm as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing hearing has not yet been set. Taylor was indicted on January 7, 2015.
According to evidence presented at trial, on September 29, 2013, deputies from the Sumter County Sheriff’s Office conducted a traffic stop on a vehicle in which Taylor was a passenger. A subsequent search of the vehicle revealed a loaded .22 caliber handgun inside the fuse box, near the passenger-side floor board. Results of forensic analyses revealed that DNA on the handgun matched Taylor’s DNA.
Taylor was previously convicted of numerous felonies including attempted murder, armed robbery, kidnapping, and burglary and therefore is prohibited from possessing a firearm or ammunition under federal law. As such, he qualifies for an enhanced penalty under the Armed Career Criminal statute.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, the Sumter County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Bryon R. Aven.
Second Defendant in Wentzville Pawn Store Burglary Pleads GuiltyRead the Press Release
St. Louis, MO – BRANDON FOSTER pled guilty to charges involving his participation in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri.
According to statements made in court, Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. on October 16th and stole 33 firearms -- 27 handguns and 6 rifles. On October 17, 2014, ATF attempted to arrest Foster and Thomas using three vehicles. Rather than backing out, Thomas drove forward on the grass, turning right in an attempt to elude the agents. He struck one of the ATF vehicles and then proceeded to back up almost striking an agent. After one shot was fired by an agent, Thomas stopped his car. Upon their arrest, agents recovered a Springfield Armory 9mm pistol equipped with an extended 33-round magazine on the floorboard directly under Foster. Foster admits the theft and possession of the 33 firearms from All Star and the purchasing of the ammunition and magazine from Cabela’s.
Foster, St. Louis City, pled guilty to two felony counts of being a felon in possession of a firearm before United States District Judge Catherine D. Perry. Sentencing has been set for July 23, 2015.
Co-defendant Keenan Thomas pled guilty to related charges and awaits sentencing on June 30, 2015. Eugene Davis is facing trial and is presumed innocent until and unless proven guilty.
Each charge carries a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Same Defendant, Same Bank - But Different RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Wednesday for robbing a bank that he robbed once before eight years ago, U.S. Attorney Barry Grissom said.
Mark Finnigin, 52, Wichita, Kan., was sentenced to 63 months in federal prison. He pleaded guilty to one count of bank robbery. In his plea, he admitted that on July 22, 2014, he robbed Emprise Bank, 2323 S. Hydraulic, in Wichita, Kan. He entered the bank about 9:40 a.m. and demanded a clerk give him $10,000. The clerk put some cash on the counter. Before she could finish, Finnigin took the money and fled the bank. From a nearby store, a surveillance camera recorded him getting in a minivan.
In 2007, he pleaded guilty to robbing the same bank. He was sentenced to 51 months in that case.
Grissom commended the Wichita Police Department, the FBI and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case
Pierre Man Sentenced to 46 Months for Possession of Unregistered FirearmRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man convicted of Possession of an Unregistered Firearm and Prohibited Person in Possession of a Firearm was sentenced on April 20, 2015, by U.S. District Judge Roberto A. Lange.
Clyde Aquallo, age 40, was sentenced to 46 months in custody for Possession of an Unregistered Firearm, and 46 months in custody for a Prohibited Person in Possession of a Firearm, to be served concurrently, two years of supervised release, a $1,000 fine, and a $200 special assessment fee to the Federal Crime Victims Fund.
Aquallo was indicted for Possession of Unregistered Firearm, two counts of a Prohibited Person in Possession of Firearm, Assault with a Dangerous Weapon, Using and Carrying a Firearm and in Relation to a Crime of Violence, and Distribution of a Controlled Substance, by a federal grand jury on December 9, 2014. He was found guilty by a jury on January 30, 2015, of Possession of Unregistered Firearm and one count of Prohibited Person in Possession of Firearm.
On February 27, 2014, Aquallo was living at a residence on the Rosebud Sioux Indian Reservation. As part of a domestic violence call, Rosebud Sioux Tribe Law Enforcement Services were called to the home where he was living and learned there were firearms in the residence that the victim wanted removed from the residence. As the investigation progressed, officers learned Aquallo was using methamphetamine and possessed several firearms, including a sawed-off shotgun, which had a barrel that was too short.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Tim Maher and Carrie Sanderson prosecuted the case.
Aquallo was immediately turned over to the custody of the U.S. Marshals Service.
Pensacola Man Sentenced for Federal Armed Drug Trafficking ViolationsRead the Press Release
PENSACOLA, FLORIDA – Marheem R. Smith, 24, of Pensacola, was sentenced to 8 ½ years in federal prison by Chief United States District Judge M. Casey Rodgers for possessing cocaine with the intent to distribute, possessing a firearm in furtherance of a drug trafficking offense, and possessing a firearm as a convicted felon. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
In October 2014, while attempting to arrest Smith on state charges of aggravated assault and firearm violations, law enforcement officers discovered a loaded Ruger .45 caliber pistol and bags of cocaine located inside a vehicle underneath where Smith was seated. Additionally, the officers found approximately $1,000 and a digital scale on Smith’s person. Inside an apartment linked to Smith, law enforcement seized more than 34 grams of cocaine and materials to convert powder cocaine into crack cocaine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pensacola Police Department, and the Escambia County Sheriff’s Office as part of the ATF Gun Crime Response Team. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Palm Beach County Resident Arrested for Importing FlakkaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, announced Jaime Nicole Lewis, 22 of Palm Beach County, was charged by criminal complaint with importing and possessing with the intent to distribute Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka”. A Pre-trial detention hearing is scheduled for the defendant on Monday, April 27, 2015 at 10:00 a.m. in front of U.S. Magistrate Judge James M. Hopkins in West Palm Beach.
More specifically, the complaint charges Lewis with importing and possessing with the intent to distribute Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka” and the conspiracy to do the same, in violation of Title 21, United States Code, Sections 952(a), 963, 841(a)(1), 841(b)(1)(C) and 846, respectively. If convicted, Lewis faces a maximum statutory sentence of twenty years in prison.
In March of 2015, as a part of an ongoing investigation regarding the illegal drug trafficking of 4-Methyl-N-Ethylcathinone, a/k/a “4-MEC,” Methylone, and powdered MDMA, a/k/a “Molly” and synthetic cathinones, specifically Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka,” DEA agents received information about suspected narcotics packages being delivered to Palm Beach County. DEA Agents in London, England received information from the British authorities on multiple packages that were intercepted from a chemical company in Hong Kong, China. The Chinese based chemical company has been utilizing a shipping Company to transport chemicals to buyers in the United States. The British authorities found multiple packages that contained a white crystallized substance which tested positive for the presence of α-PVP. DEA agents delivered the package in Palm Beach County. A co-defendant of Lewis answered the door and took possession of the package. Additionally, one of the packages was addressed to Lewis and listed Lewis’ telephone number as the contact.
“Synthetic drugs are illegal and present a grave danger to our community, particularly our children,” said United States Attorney Ferrer. “Floridians can be very proud of the hard work and cooperation by federal, state and local law enforcement in identifying and investigating this important case.”
“The manufacture, sale, and abuse of synthetic drugs represents a clear and detrimental danger to our society,” said Drug Enforcement Administration Acting Special Agent in Charge A.D. Wright. “These substances serve no legitimate purpose other than to generate a powerful intoxication for the user while generating enormous illicit profits for the criminal organizations who sell them. These powerful chemicals are generally manufactured and produced in a foreign laboratory environment without safety protocols nor concerns for their potential negative effects which ultimately leaves the users at great risk of death.”
“It is DEA’s global footprint pledge, with the assistance of our law enforcement partners, to remain vigilant in our pursuit of identifying, investigating, arresting, and seizing any illicit assets from those criminal organizations who continue to circumvent the law by producing, transporting, and distributing synthetic drugs. Today’s announcement represents the culmination of months of teamwork between state, local, and federal partners. It should serve notice to any criminal organization operating with a nexus to Florida that law enforcement will not obscurely stand in the shadows, but rather will utilize all available resources to bring them to justice and hold them accountable for their actions.”
Mr. Ferrer commended the investigative efforts of the DEA. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pair Sentenced on Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that James Grimes, aged 29, of Columbus, Georgia was sentenced to serve 97 months in Federal prison for possession of child pornography. He will also be required to register as a sex offender. The sentence was handed down on April 22, 2015, by the Honorable Clay D. Land, Chief U.S. District Court Judge, in Columbus, Georgia.
As part of an ongoing investigation by Homeland Security Investigations, a search warrant was executed at Mr. Grimes’ home on April 30, 2012. During a voluntary, consensual conversation with agents, Mr. Grimes admitted to owning multiple computers and having “illegal stuff” on some of them. He further admitted to accessing wireless modems around his neighborhood, downloading child pornography, and forwarding it to others. At the time of the interview, Mr. Grimes was in possession of more than 600 pornographic images.
“The defendant’s use of unsecured wireless networks to try to hide his crimes did not deter HSI special agents from tracking him down, but it should serve as a reminder to businesses and residents with networks to make sure they are secured,” said Ryan L. Spradlin, acting special agent in charge of HSI Atlanta. “We have seen cases in the past in which law enforcement agencies served search warrants on residences whose only crime was to leave their network unsecured and exploited by child pornographers.”
In a separate case, Kenneth Nichelson, aged 56, of Cataula, Georgia, was sentenced to a term of 180 months’ imprisonment by Judge Land on April 23, 2015. Mr. Nichelson entered a plea of guilty to child pornography on December 14, 2014. He admitted that between June 2010 and March 2011, he purchased nine DVDs depicting child pornography from a company in Toronto, Canada. When arrested on July 8, 2014, Mr. Nichelson was in possession of more than 10, but fewer than 150 images of child pornography on a computer in his home.
A criminal history check on Mr. Nichelson revealed that he had a previous conviction of sexual abuse in the 2nd degree in 1994 in New York. Due to his previous conviction, he was sentenced to an additional 10 years in prison.
“These defendants re-victimized the children who were exploited by the producers of the original child pornography. Their illegal actions are part of the ongoing and unspeakable trade of stealing the innocence from child victims. We will continue to use our resources not only to catch the producers of this filth, but also to catch the people who possess it,” said U.S. Attorney Michael Moore.
Assistant United States Attorney Crawford Seals is prosecuting the case for the Government. Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Pace Doctor Pleads Guilty to Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Dr. Sheila Mohammed, 55, of Pace, Florida, pled guilty today to seven counts of submitting false tax returns. The guilty plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During her plea, Dr. Mohammed admitted that she signed and caused to be filed, false personal tax returns that grossly underreported her total income for tax years 2010 through 2013. In addition, Dr. Mohammed admitted that, as president and owner of The Industrial Medicine Institute, Inc., a medical practice in Pace, Florida, she signed and caused to be filed, false corporate tax returns for The Industrial Medicine Institute, Inc., for the years 2010 through 2012.
As part of the plea agreement, Dr. Mohammed agreed that the restitution amount owed for her crimes is $255,158, and she has agreed to make full restitution to the Internal Revenue Service.
Sentencing is scheduled by Chief United States District Court Judge M. Casey Rodgers on July 20, 2015, at 1:00 p.m. Dr. Mohammed faces maximum penalties of 21 years in prison (three years for each count) and a $700,000 fine ($100,000 for each count).
The charges are the result of an investigation by the Internal Revenue Service – Criminal Investigation, with assistance from the Santa Rosa County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.