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3 June 2015
Houston Man Heads to Federal Prison for Sex Trafficking of ChildrenRead the Press Release
HOUSTON – Dominique Howard aka “Lucci,” 25, has been handed a 14-year sentence for his conviction of trafficking children under 18 for commercial sex, announced U.S. Attorney Kenneth Magidson. Howard pleaded guilty March 26, 2014.
Today, U.S. District Judge Keith Ellison handed Howard a sentence of 168 months in federal prison to be immediately followed by 10 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be required to register as a sex offender. Additional information was presented today including that Howard had prostituted at least three minor victims during this time frame as well as adult victims.
Howard admitted that during parts of 2013, he used force, fraud or coercion to cause at least one minor girl under age 18 to engage in commercial sex acts. He took the victim from Colorado and transported her to Texas, without her prior knowledge. Upon arrival, the victim was photographed and the pictures were posted in online ads for prostitution. While in Texas, the minor victim was forced to engage in “two-girl specials” with other victims even though she did not want to do so. Howard gave the minor victim drugs and alcohol and kept all of the monies she earned. Howard also kept the her cell phone and told her that all of her phone calls would have to go through him. Despite requests by the minor victim to be taken back to Colorado, Howard continued to prostitute her and refused to take her home.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
This case, prosecuted by Assistant United States Attorney Julie N. Searle and Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Honduran National Sentenced for Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENNIS NUNEZ-LACAYO, age 28, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for violations of the Federal Gun Control Act.
U.S. District Judge Susie Morgan sentenced NUNEZ-LACAYO to serve 13 months imprisonment, followed by 1 year of supervised release. Following incarceration, NUNEZ-LACAYO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about June 4, 2014, NUNEZ-LACAYO, an alien present illegally in the United States, was found in possession of a firearm.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHARLES ADONAY-LAINES, age 23, a citizen of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien previously convicted of an aggravated felony.
According to the Indictment, on or about April 12, 2015, ADONAY-LAINES was found in the United States after having been officially deported on or about October 13, 2013, following a conviction for being an illegal alien in possession of a firearm.
ADONAY-LAINES faces a maximum term of imprisonment of twenty years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for September 30, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Charles Adonay-Laines Factual Basis (953.11 KB)
Grand Jury Charges Kankakee County Man with Bank Fraud Related to Construction LoansRead the Press Release
Springfield, Ill. – A federal grand jury has indicted a Bourbonnais, Ill., man, Daniel Ballard, 56, on charges of bank fraud in an indictment returned yesterday. The U.S. Clerk of the Court will issue a summons to Ballard to appear for arraignment in federal court in Urbana.
The three-count indictment alleges that Ballard obtained a construction loan in December 2009, in the amount of $260,000, to build a residence at 3013 Stone Fence Drive in Bourbonnais. As part of the fraud scheme, and to allegedly obtain money from the bank to build the residence on Stone Fence Drive, Ballard obtained additional construction loans to build or remodel buildings on other properties he owned in Bradley, Ill.: 411 N. Center; 248 N. Center; and 471 N. Grand. An explicit term of the construction loan disbursing agreement required that work for which Ballard was requesting payment be completed before the bank would disburse funds to the title company.
From December 2009 to May 2012, as part of the scheme to defraud, Ballard allegedly falsely stated or caused others to falsely state in documents submitted to the title company that costs had been incurred for labor and / or materials for construction at the Bradley, Ill., properties. In fact, the indictment alleges the costs of labor and materials were substantially below the amount represented or were not furnished to the Bradley properties at all. As a result, the bank was allegedly exposed to a loss of more than $400,000.
If convicted, each count of bank fraud carries a penalty of up to 30 years in prison and a fine of up to $250,000.
The charges are the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Assistant U.S. Attorney Eugene M. Miller is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Four People Arrested and Charged in Cross-Country Insider Trading SchemeRead the Press Release
The owner and operator of a stock trading operation and three of his associates were arrested today on charges arising from their alleged participation in a multi-year insider trading scheme that netted more than $3.2 million in illicit profits, announced today by U.S. Attorney Paul J. Fishman for the District of New Jersey.
Steven Fishoff, 58, of Westlake Village, California, Ronald Chernin, 66, of Oak Park, California, Steven Costantin aka Steven Constantin, 54, of Farmingdale, New Jersey, and Paul Petrello, 53, of Boca Raton, Florida, are each charged by complaint with one count of conspiracy to commit securities fraud. Fishoff is charged with four substantive counts of securities fraud, Chernin and Petrello are each charged with two counts of securities fraud and Costantin is charged with one count of securities fraud.
The defendants were arrested by FBI agents this morning at their respective residences. Costantin is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark, New Jersey, federal court. Fishoff is scheduled to appear before U.S. Magistrate Judge Kenly Kiya Kato in Riverside, California, federal court, Chernin is scheduled to appear before U.S. Magistrate Judge Carla Woehrle in Los Angeles, Californina, federal court, and Petrello is expected to appear before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach, Florida, federal court.
“The defendants and their associates were entrusted with confidential, nonpublic information about companies and time and time again, they allegedly violated that trust by illegally trading the companies’ stock for substantial profits,” said U.S. Attorney Fishman. “They allegedly rigged the game so they would always win, and their profits came at the expense of legitimate investors, who were not privy to this inside information.”
“Insider trading is an investigative priority of the FBI,” said Special Agent in Charge Richard M. Frankel for the FBI in Newark, New Jersey. “The FBI is committed to stopping insider trading and will hold those who perpetrate these schemes accountable because their illegal activities undermine the integrity of the U.S. financial markets and weaken investor confidence.”
“We allege an insider trading scheme based on a short-selling business model designed to systematically profit on confidential information obtained under false pretenses,” said Senior Associate Director Sanjay Wadhwa for Enforcement in the SEC’s Regional Office in New York. “But the defendants’ short selling proved to be short-sighted as they overlooked the fact that their trading patterns would be detected and they would be caught by law enforcement.”
According to the complaint unsealed today, Fishoff, Chernin, Costantin, Petrello and others, acting individually and through their associated trading entities, engaged in an insider trading scheme in which they netted more than $3.2 million in illicit profits over three years by executing illegal trades through trading entities that they controlled.
Fishoff is the president and sole owner of Featherwood Capital Inc. (Featherwood), a trading entity that he operates out of his home. Featherwood maintained numerous stock trading accounts in its own name and in various additional names under which Featherwood did business (DBAs), including Gold Coast Total Return Inc. (Gold Coast), Seaside Capital Inc. (Seaside) and Data Complete Inc. (Data Complete).
Chernin, an attorney who was disbarred in California for misappropriation of client assets, is a friend and longtime business associate of Fishoff. Corporate documents list Chernin as the president of Gold Coast and Fishoff as an officer. Chernin is president of the trading entity Cedar Lane Enterprises Inc. (Cedar Lane) and an officer of Data Complete.
Costantin, a former pipefitter by trade, is Fishoff’s brother-in-law and a friend and business associate of Chernin. Corporate documents list Costanstin as president of Seaside. In brokerage account documents, Fishoff identifies himself as Seaside’s owner. Costanstin is also the vice president and secretary of Cedar Lane.
Petrello is the president and owner of two trading entities, Brielle Properties Inc. and Oceanview Property Management LLC and a friend and longtime business associate of Fishoff.
On numerous occasions, the conspirators obtained material, nonpublic information related to publicly traded companies and traded on that information before it became public. Between June 2010 and July 2013, Fishoff, Chernin, Costantin and a business associate referred to in the complaint as “Trader A” expressed interest in participating in at least 14 stock offerings by publicly traded companies. Before providing these individuals with confidential information concerning the companies or the terms of the proposed sales, the investment bankers first required that Fishoff, Chernin, Costantin, Trader A and their associated trading entities, agree to be “brought over the wall,” or “wall-crossed,” standard industry terms which meant that they were required to keep the information disclosed to them confidential and could not buy or sell the stock based on the information.
Fishoff, Chernin, Costantin and Trader A agreed to these disclosure and trading restrictions and then flagrantly breached the agreements. In instances where Fishoff was not personally wall-crossed in an offering, Chernin and Costantin tipped Fishoff telephonically or by email about the offering prior to the public announcement. Even where Fishoff ostensibly was a party to the confidentiality agreement, through his affiliation with the wall-crossed trading entity, Fishoff himself breached the agreement by trading on the confidential information and by providing the information to Petrello so that Petrello could engage in parallel trading. There were also instances where Chernin and Costantin violated the terms of the confidentiality agreements by trading themselves before the offering. The conspirators traded through the accounts of the trading entities or through related accounts that they controlled. The conspirators shared the proceeds of the insider trading scheme, with Fishoff wiring money to Chernin and Costantin for their services and Fishoff receiving compensation from Petrello for the offering-related tips that Fishoff provided to him.
The conspiracy count with which each defendant is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the aggregate loss to victims or gain to the defendants. Each of the substantive securities fraud charges carry a maximum penalty of 20 years in prison and a $5 million fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Frankel, for the investigation leading to today’s arrests and complaint. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Andrew Calamari. He also thanked special agents of the FBI, Los Angeles (Ventura Resident Agency and Riverside Resident Agency) and FBI, Miami (West Palm Beach Resident Agency) for their assistance.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, New Jersey and Acting Chief Barbara Ward for the of the Office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Four People Arrested and Charged in Cross-Country Insider Trading SchemeRead the Press Release
Illegally Traded on Inside Information in Violation of Confidentiality Agreements, Netting More Than $3.2 Million During Three-Year Scheme
NEWARK, N.J. - The owner and operator of a stock trading operation and three of his associates were arrested today on charges arising from their alleged participation in a multi-year insider trading scheme that netted more than $3.2 million in illicit profits, New Jersey U.S. Attorney Paul J. Fishman announced.
Steven Fishoff, 58, of Westlake Village, California; Ronald Chernin, 66, of Oak Park, California; Steven Costantin (a/k/a Steven Constantin), 54, of Farmingdale, New Jersey; and Paul Petrello, 53; of Boca Raton, Florida, are each charged by complaint with one count of conspiracy to commit securities fraud. Fishoff is charged with four substantive counts of securities fraud, Chernin and Petrello are each charged with two counts of securities fraud, and Costantin is charged with one count of securities fraud.
The defendants were arrested by FBI agents this morning at their respective residences. Costantin is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Fishoff is scheduled to appear before U.S. Magistrate Judge Kenly Kiya Kato in Riverside, California, federal court; Chernin is scheduled to appear before U.S. Magistrate Judge Carla Woehrle in Los Angeles federal court, and Petrello is expected to appear before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach, Florida, federal court.
“The defendants and their associates were entrusted with confidential, nonpublic information about companies, and, time and time again, they allegedly violated that trust by illegally trading the companies’ stock for substantial profits,” U.S. Attorney Fishman said. “They allegedly rigged the game so they would always win, and their profits came at the expense of legitimate investors, who were not privy to this inside information.”
FBI Special Agent in Charge, Newark, Richard M. Frankel stated: “Insider trading is an investigative priority of the FBI. The FBI is committed to stopping insider trading and will hold those who perpetrate these schemes accountable because their illegal activities undermine the integrity of the U.S. financial markets and weaken investor confidence.”
“We allege an insider trading scheme based on a short-selling business model designed to systematically profit on confidential information obtained under false pretenses,” said Sanjay Wadhwa, Senior Associate Director for Enforcement in the SEC’s New York Regional Office. “But the defendants’ short selling proved to be short-sighted as they overlooked the fact that their trading patterns would be detected and they would be caught by law enforcement.”
According to the complaint unsealed today:
Fishoff, Chernin, Costantin, Petrello, and others, acting individually and through their associated trading entities, engaged in an insider trading scheme in which they netted more than $3.2 million in illicit profits over three years by executing illegal trades through trading entities that they controlled.
Fishoff is the president and sole owner of Featherwood Capital Inc. (Featherwood), a trading entity that he operates out of his home. Featherwood maintained numerous stock trading accounts in its own name and in various additional names under which Featherwood did business (DBAs), including Gold Coast Total Return Inc. (Gold Coast), Seaside Capital Inc. (Seaside), and Data Complete Inc. (Data Complete).
Chernin, an attorney who was disbarred in California for misappropriation of client assets, is a friend and longtime business associate of Fishoff. Corporate documents list Chernin as the president of Gold Coast and Fishoff as an officer. Chernin is president of the trading entity Cedar Lane Enterprises Inc. (Cedar Lane) and an officer of Data Complete.
Costantin, a former pipefitter by trade, is Fishoff’s brother-in-law and a friend and business associate of Chernin. Corporate documents list Costanstin as president of Seaside. In brokerage account documents, Fishoff identifies himself as Seaside’s owner. Costanstin is also the vice president and secretary of Cedar Lane.
Petrello is the president and owner of two trading entities: Brielle Properties Inc. and Oceanview Property Management LLC, and a friend and longtime business associate of Fishoff.
On numerous occasions, the conspirators obtained material, nonpublic information related to publicly traded companies and traded on that information before it became public. Between June 2010 and July 2013, Fishoff, Chernin, Costantin, and a business associate referred to in the complaint as “Trader A” expressed interest in participating in at least 14 stock offerings by publicly traded companies. Before providing these individuals with confidential information concerning the companies or the terms of the proposed sales, the investment bankers first required that Fishoff, Chernin, Costantin, Trader A, and their associated trading entities, agree to be “brought over the wall,” or “wall-crossed,” standard industry terms which meant that they were required to keep the information disclosed to them confidential and could not buy or sell the stock based on the information.
Fishoff, Chernin, Costantin, and Trader A agreed to these disclosure and trading restrictions and then flagrantly breached the agreements. In instances where Fishoff was not personally wall-crossed in an offering, Chernin and Costantin tipped Fishoff telephonically or by email about the offering prior to the public announcement. Even where Fishoff ostensibly was a party to the confidentiality agreement, through his affiliation with the wall-crossed trading entity, Fishoff himself breached the agreement by trading on the confidential information and by providing the information to Petrello so that Petrello could engage in parallel trading. There were also instances where Chernin and Costantin violated the terms of the confidentiality agreements by trading themselves before the offering. The conspirators traded through the accounts of the trading entities or through related accounts that they controlled. The conspirators shared the proceeds of the insider trading scheme, with Fishoff wiring money to Chernin and Costantin for their services, and Fishoff receiving compensation from Petrello for the offering-related tips that Fishoff provided to him.
The conspiracy count with which each defendant is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the aggregate loss to victims or gain to the defendants. Each of the substantive securities fraud charges carry a maximum penalty of 20 years in prison and a $5 million fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s arrests and complaint. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Andrew Calamari. He also thanked special agents of the FBI, Los Angeles (Ventura Resident Agency and Riverside Resident Agency) and FBI, Miami (West Palm Beach Resident Agency) for their assistance.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit and Barbara Ward, Acting Chief of the of the Office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Former U.S. Penitentiary Guard Sentenced for Smuggling Contraband into the Federal Prison in AtlantaRead the Press Release
ATLANTA - Dirk Antonious Engram, Jr., has been sentenced to federal prison for taking bribes to smuggle contraband into U.S. Penitentiary-Atlanta while he worked there as a corrections officer. He admitted that he charged $500 every time he smuggled cigarettes, marijuana, or other contraband into the prison for inmates.
“Corrupt corrections officers compromise prison safety while they profit from the underground economy that unfortunately exists in prison,” said Acting U.S. Attorney John Horn. “Prison is supposed to be a place where the controls are strong enough that additional crime is impossible, but this breaks down instantly when the officers themselves participate in the corruption.”
“The sentencing of Mr. Engram marks the end of his career as a federal corrections officer and the beginning of his time as a federal inmate,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI will continue to vigorously investigate all allegations of corruption within this or other correctional facilities as part of the overall effort to ensure safety and order for both inmates and staff at these facilities.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In November 2013, Engram began working as a corrections officer at U.S. Penitentiary-Atlanta, a medium-security prison with approximately 2,000 male inmates. In 2014, Engram began smuggling contraband into the prison for inmates who befriended him. Engram charged $500 each time that he smuggled cigarettes, marijuana, or other contraband into the prison.
He was arrested on September 11, 2014, by agents with the FBI after he accepted a bribe to smuggle what he believed was heroin into the penitentiary.
Dirk Antonious Engram, Jr., 27, of Atlanta, was sentenced to two years, four months in prison to be followed by three years of supervised release. Engram pleaded guilty to the charges on March 24, 2015.
This case was investigated by the FBI.
Assistant United States Attorney William G. Traynor prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Sycamore Resident Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
ROCKFORD — A former Sycamore, Ill. resident was sentenced today by U.S. District Judge Frederick J. Kapala for possessing child pornography. MICHAEL PODOLSKY, 27, now of Elkader, Iowa, who pled guilty to the charge on January 27, 2015, was sentenced to 97 months imprisonment, to be followed by 5 years of supervised release. In his written plea agreement, Podolsky admitted that on and prior to July 12, 2013, he owned and was in possession of a computer at his home in Sycamore that contained more than 600 images of children engaged in sexually explicit conduct, and that among the images he possessed were images that depicted prepubescent minors engaged in sadistic conduct and violence.
The sentencing was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent‑in‑Charge of the Chicago Office of the Federal Bureau of Investigation; and Glenn Theriault, Chief of the Sycamore Police Department.
The government was represented by Assistant United States Attorney Michael D. Love.
Former Internal Revenue Service Employee Pleads Guilty to Charges Related to a Wire Fraud and Identity Theft SchemeRead the Press Release
In Austin today, 57-year-old former Internal Revenue Service employee Kenneth Goheen of Austin pleaded guilty to federal charges in connection with a stolen identity refund fraud scheme announced Acting United States Attorney Richard L. Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and U.S. Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge Ruben Florez, Dallas Field Division
Appearing before United States Magistrate Judge Andrew Austin, Goheen pleaded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty, Goheen, a former Tax Examining Technician, admitted that he wrongfully obtained identification information from Individual Tax Identification Number (ITIN) applicants and used it to file more than 50 fraudulent tax returns between March 2013 and January 2015. Goheen collected over $120,000 in refunds based on those fraudulent tax returns.
As a result of his guilty plea, Goheen faces up to 20 years in federal prison for wire fraud and a mandatory two years in federal prison for aggravated identity theft. Sentencing is expected to occur later this year in front of United States District Judge Lee Yeakel.
This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Matt Harding is prosecuting this case on behalf of the Government.
Former Garland, Texas, Man Sentenced to Eight Months in Federal Prison for Aiming a Laser Pointer at HelicopterRead the Press Release
DALLAS — A former resident of Garland, Texas, who pleaded guilty earlier this year to an indictment charging one count of aiming a laser pointer at an aircraft, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Steven Alexander Chavez, Jr., 23, was sentenced by Chief U.S. District Judge Jorge A. Solis to eight months in federal prison.
According to documents filed in the case, in August 2013, Chavez knowingly aimed the beam of a laser at a Texas Department of Public Safety (DPS) helicopter. Chavez aimed the laser at the helicopter from the backyard of a friend, while the helicopter was flying overhead.
A few days later, special agents with the FBI arrested Chavez in Lubbock, Texas, where he had recently relocated from Garland. Following his initial court appearance, he was released on bond.
The FBI, Texas DPS and Garland Police Department investigated. Special Assistant U.S. Attorney Lara Burns prosecuted.
Former Federal Pretrial Services Employee Admits to Willfully Violating a Court Order Sealing an IndictmentRead the Press Release
Greenbelt, Maryland – Michelle Lee Davis, age 37, of Laurel, Maryland pleaded guilty today to criminal contempt.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office.
Davis was an employee of the U.S. Probation and Pretrial Services for the District of Maryland from February 1998 to October 2014. In recent years, including in April 2014, Davis served as an administrative technician with the Pretrial Services office in Greenbelt, in which she conducted record and criminal history checks of new defendants, scheduled initial appearances with a U.S. magistrate judge, and opened and closed files related to defendants on pretrial release.
According to her plea agreement, on March 24, 2014 a magistrate judge ordered the sealing of an indictment that charged two defendants with a drug conspiracy. The initial appearance of one of the charged defendants was held on April 15, 2014, at which time Davis learned of the defendant’s identity. Davis did not disclose to her supervisors or colleagues that she knew the defendant. During two telephone conversations that day, Davis disobeyed and resisted the court order sealing the indictment by disclosing the existence and details of the sealed indictment and the identity of the defendant charged in the sealed indictment, to an acquaintance of Davis and the defendant.
U.S. District Judge Peter J. Messitte has scheduled sentencing for September 18, 2015 at 9:30 a.m., at which time Davis faces a sentence of a fine or imprisonment, or both, within the court’s discretion.
United States Attorney Rod J. Rosenstein commended the FBI and DEA for their work in the investigation. Mr. Rosenstein praised the U.S. Probation and Pretrial Services for their assistance in the investigation, and thanked Assistant U.S. Attorneys Kelly O. Hayes and Arun G. Rao, who are prosecuting the case.
Former Corprate President Sentenced for Conspiring to Smuggle Magnesium Powder into the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Wright, 64, of Ellwood City, Pennsylvania, who was convicted of conspiring to smuggle merchandise into the United States, was sentenced to time served and two years supervised release by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay $1,933,999 in restitution. Wright has also forfeited $75,000.Assistant U.S. Attorney Michael DiGiacomo who handled the case, stated that the defendant was the president of ESM Group, Inc., a specialty metal powders supplier. While president Wright sought to expand ESM's customer base to include the defense industry. In order to do so the defendant, entered into an agreement with Superior Metal Powders Inc., whereby Superior Metal Powders was to obtain and Market on behalf ESM Group Inc., this special form of magnesium powder.
At the time, the United States had a 305.56% antidumping duty in place with respect to the type of Magnesium powder Superior Metal Powders was importing on behalf of ESM Group, Inc. While the agreement between ESM and Superior Metal Powders was in place the defendant learned the Magnesium powder Superior Metal Powders was obtaining on behalf of ESM Group Inc., from China was being imported in a manner that avoided the 305.56% anti-dumping duty. After learning of this fact, Wright still authorized additional shipments of the Magnesium Powder knowing they were being imported in violation of the anti-dumping duty. The total amount of lost duty to the United States from January 2005 through May of 2005 was approximately $1,933,999.
The magnesium powder was used to produce countermeasure flares which are used by the Department of Defense in military aircraft to divert heat-seeking missiles.
In April 2010, Wright, Gregory Magness, Justin Magness, William Nehill, and Eldon Bott were charged with participating in a conspiracy to import Chinese magnesium into the United States. All defendants now stand convicted.
The sentencing is the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, and the Department of Defense Criminal Investigative Service, under the direction of Edward T. Bradley, Special Agent in Charge, Northeast Field Office.
Federal Authorities Prosecute Passport OffensesRead the Press Release
SAN FRANCISCO – Federal authorities continue to devote resources to investigating and prosecuting federal passport offenses, announced United States Attorney Melinda Haag and U.S. Department of State, Diplomatic Security Service Special Agent in Charge David Zebley.
Illustrative of the cases being pursued are the following 12 cases, each of which involves a defendant accused or convicted of misrepresenting their identity on applications for United States passports or committing related offenses in violation of either 18 U.S.C. § 1542, false statement in application for a passport, or 18 U.S.C. § 1028, fraud in connection with identification documents:
CONVICTED:
Trinidad Campos Castro, of King City, Calif., was convicted of applying for a United States passport using another person’s birth certificate and related Social Security Administration benefit fraud. Castro was sentenced to eight months of imprisonment in September, 2014, and was ordered to repay $25,641 in restitution to the Social Security Administration.
Erick Jimenez, formerly of San Rafael, Calif., was convicted of applying for a United States passport and falsely stating that he was born in the United States. Jimenez was sentenced to eight months of imprisonment and three years of supervised release in October, 2014.
Jesus Sanchez Bastidas, formerly of Santa Rosa, Calif., was convicted of applying for a United States passport and falsely stating that he was born in the United States. Bastidas was sentenced to five months of imprisonment and three years of supervised release in October, 2014.
Richard Emmett Monroe, of Windsor, Calif., was convicted of applying for a United States passport and falsely stating his name. Monroe was sentenced to nine months of imprisonment and one year of supervised release in December, 2014.
Jamall Robinson, a/k/a Shakir Bey, formerly of Oakland, Calif., was convicted of conspiring to falsely state his name on an application for a United States passport. Robinson was arrested in January, 2015. Robinson’s scheduled sentencing is set for 9:30 a.m. on June 5, 2015, in front of the Honorable John S. Tigar, United States District Judge, in Oakland.
Neil Kennedy Lockhart, of Oakland, Calif., was convicted of applying for a United States passport and falsely stating he was born in the United States. Lockhart’s sentencing is scheduled for 11:00 a.m., September 4, 2015, before the Honorable Susan Illston, United States District Judge, in San Francisco.
Martha Lidia Donado, of Richmond, Calif., was convicted of possessing a falsely issued United States passport that she obtained by providing biographical information belonging to another person. Donado was sentenced to three years of probation in April, 2015, and she is responsible to pay restitution to the Social Security Administration in the amount of $40,131.00 for benefits she received under the false identity.
CHARGED (Please note, charges described in this document contain only allegations and, as with all defendants, the defendants in the cases listed below must be presumed innocent unless and until proven guilty.):
Maria Elena Hernandez-Garcia, of Salinas, Calif., is alleged to have applied for a United States passport and falsely stated she was born in the United States. Hernandez-Garcia was arrested in February, 2014, but fled after being released on bail in December, 2014. Hernandez-Garcia remains a fugitive.
Laureano Ayala Pulido, of Sunnyvale, Calif., is alleged to have applied for a United States passport and to have made several false statements, including that he was born in the United States. Pulido was arrested in January, 2015, but fled after being released on bail. Pulido remains a fugitive.
Rogelio Salazar, of Salinas, Calif., is alleged to have applied for a passport using a false birth certificate and driver’s license. Salazar was arrested in July, 2014, and his case remains in progress. Salazar’s next scheduled appearance is set for 1:30 p.m. on June 15, 2015 before the Honorable Edwards Davila, United States District Judge, in San Jose.
Arturo Preciado, of San Jose, Calif., is alleged to have applied for a United States passport using a false identity. Preciado made an initial appearance in March, 2015, and his case remains in progress. Preciado’s next scheduled appearance is set for 9:30 a.m. on July 1, 2015, beforethe Honorable Lucy H. Koh, United States District Judge, in San Jose.
Alejandro Musso Cortes, of San Jose, Calif., is alleged to have applied for a United States passport and falsely stated his name and Social Security Number. Cortes was arrested in April, 2015, and his case remains in progress. Cortes’ next scheduled appearance is set for 9:30 a.m. on June 3, 2015, in front of the Honorable Lucy Koh, United States District Court Judge, in San Francisco
These defendants are part of more than 265 Bay Area residents who have been charged with false passport related offenses since 2007. The prosecutions are the result of ongoing investigations by the Diplomatic Security Service.
Anyone with information about false or fraudulently issued passports or entry visas, or the whereabouts of the above fugitives, is encouraged to contact the Diplomatic Security Service at (415) 705-1176.
Everett Man Charged with Conspiring to Obstruct National Security InvestigationRead the Press Release
Boston – This afternoon the United States Attorney’s Office in Boston filed a federal conspiracy charge against a 25 year old Everett man who has been associated with a plot to kill an unnamed target in another state. David Wright a/k/a Dawud Sharif Wright a/k/a Dawud Sharif Abdul Khaliq, was arrested last night by federal authorities and had an initial appearance today in U.S. District Court in Boston. His detention hearing is scheduled for June 19, 2015 at 2:00 p.m.
Wright is charged in a one count complaint which alleges that he conspired with now-deceased Ussamah Abdullah Rahim to obstruct a federal investigation by destroying electronic evidence on Rahim’s smartphone. Rahim was shot and killed yesterday morning after he attacked Boston Police Officers and FBI agents seeking to question him.
As alleged in the complaint affidavit, Rahim, a 26-year-old private security officer, was planning to engage in a violent attack in the United States, and had purchased three military-style fighting knives and a sharpener in furtherance of this plan. In intercepted calls between Wright and Rahim, the men discussed a knife attack on an individual not named in the complaint, and suggested that the target was to be beheaded and have his/her head placed on his/her chest. According to the complaint, such beheadings are a tactic of some foreign terrorist organizations which use such killings in propaganda videos.
The affidavit also alleges that Wright and Rahim met with a third person on a beach in Rhode Island on May 31, 2015, to discuss the planned beheading.
At approximately 5:00 am on June 2, 2015, law enforcement intercepted a call between Wright and Rahim, in which Rahim insisted that he could no longer wait to take action. Instead of carrying on with his plan to behead the planned out-of-state target, Rahim declared that he was going to, “go after” the “boys in blue,” here in Massachusetts, because, “it’s the easiest target.” Rather than discourage Rahim, Wright supported the plan, telling Rahim to prepare his will and to leave his possessions to a named individual. After discussing Rahim’s plan to attack police officers in Massachusetts, Wright advised Rahim to destroy his phone and all of the evidence it contained to prevent “CSI” at “the scene” from obtaining incriminating information.
According to the complaint affidavit, on June 2, 2015, law enforcement officers met with Wright after Rahim attacked officers in Boston and was shot. Wright told officers of a recent rendezvous with Rahim on a beach in Rhode Island, and of Rahim’s intention to behead a specified individual in another state. Wright indicated he agreed with Rahim’s plan and supported it.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This investigation is being conducted by the FBI’s Boston Field Division, Boston Police Department, Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force, including the U.S. Customs and Border Protection, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, U.S. Marshals Service and others. In addition, the Everett Police Department played a critical role in the response.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Massachusetts’s Anti-Terrorism and National Security Unit in coordination with the Department of Justice’s National Security Division.
East Hampton Man Charged with Producing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, announced that KEITH HAESSLY, 45, of East Hampton, was arrested today and charged by federal criminal complaint with possession, distribution and production of child pornography.
The criminal complaint alleges that in January 2015, the Federal Bureau of Investigation received information that HAESSLY was distributing images of child pornography over the Internet and had engaged in numerous sexually explicit chats related to the sexual exploitation of young boys. Subsequent investigation revealed that HAESSLY has been posing as a female, using the name “Amy Finch,” and used loop recordings of females to entice boys to engage in sexual activity over webcams through video chat programs such as Skype and Omegle. HAESSLY then made recordings of the boys engaged in sexual activity.
Investigators conducted a court-authorized search of HAESSLY’s residence earlier today and seized a laptop computer. HAESSLY was arrested at his place of work.
Following his arrest, HAESSLY appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
The charge of production of child pornography carries a minimum term of imprisonment of 15 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Doña Ana County Clerk’s Office Employee Arrested on Federal Theft and Identity Fraud ChargesRead the Press Release
ALBUQUERQUE – Maria L. Ceniceros, 42, of Las Cruces, N.M., made her initial appearance in federal court this morning on a criminal complaint charging her and a co-defendant with theft of government property and aggravated identity theft charges. Ceniceros remains in federal custody pending a preliminary hearing and detention hearing which are scheduled for June 5, 2015.
The criminal complaint charges Ceniceros and Armando Gutierrez-Torres, 50, a Mexican national who resides in Delicias, Mexico, with conspiracy to commit theft of government property and aggravated identity theft. The charges in the complaint allegedly arise out of a scheme to steal money from the United States by using the identities of individuals without their knowledge or consent to generate and cash fraudulent federal income tax refund checks. It alleges that Ceniceros and Gutierrez-Torres conspired with each other and others to perpetuate the scheme, and that Ceniceros abused her position as a Document Technician at the Doña Ana County Clerk’s Office to facilitate the scheme.
The criminal complaint alleges that the law enforcement authorities learned of the scheme in mid-May 2015, when Ceniceros allegedly approached a co-worker in the Doña Ana County Clerk’s Office and attempted to solicit his participation in the scheme. The co-worker reported the alleged solicitation to law enforcement authorities and agreed to assist officers in conducting an undercover investigation into Ceniceros and Gutierrez-Torres. During the investigation, Ceniceros allegedly provided three fraudulent federal income tax refund checks to the co-worker so that he could cash the checks with the understanding that the proceeds would be divided between Ceniceros, Gutierrez-Torres and the co-worker. Ceniceros and Gutierrez-Torres were arrested on related state charges on May 29, 2015.
Ceniceros was arrested on the federal charges in the criminal complaint on June 1, 2015. Gutierrez-Torres remains in state custody and will be transferred to federal custody to face the charges in the criminal complaint.
If convicted on the theft of government property charge, Ceniceros and Gutierrez-Torres each face a statutory maximum sentence of ten years in prison. If convicted on the aggravated identity theft charge, each faces a mandatory two-year prison sentence that must be served consecutive to any sentence imposed on the theft of government property charge. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by IRS Criminal Investigation and the Doña Ana County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
ceniceros_complaint.pdf (232.2 KB)
Department of Justice Settles Civil Rights Lawsuit Alleging Discriminatory Assistance Animal Policy at Largest Cooperative Development in the United StatesRead the Press Release
Co-op City Agrees to Enhance Accessibility, Pay Civil Penalties and Establish an Aggrieved Persons Fund
The Department of Justice and the Department of Housing and Urban Development (HUD) announced today that the United States has simultaneously filed and settled a civil rights lawsuit against RiverBay Corporation, which manages “Co-op City,” the largest affordable housing cooperative in the United States, alleging that RiverBay failed to provide reasonable accommodations to people who require service or assistance animals. Specifically, the lawsuit alleges that RiverBay maintains and employs an overly burdensome and intrusive policy governing waivers to its no-pets rule, which has deterred and prevented persons with disabilities from obtaining reasonable accommodations, in violation of the federal Fair Housing Act. The consent decree was approved on June 2, 2015, by U.S. District Court Judge Valerie E. Caproni.
“Assistance animals provide vital support and therapeutic benefits for persons with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “This significant settlement underscores the department’s commitment to ensuring that housing providers make reasonable accommodations for individuals who rely on assistance animals to use and enjoy their homes.”
“Housing providers must allow for reasonable accommodations to qualified individuals with disabilities, including granting requests to keep assistance or service animals,” said U.S. Attorney Preet Bharara of the Southern District of New York. “Today’s settlement benefits all those who require or may someday require a service or assistance animal, as it ensures that RiverBay will implement a reasonable accommodation policy consistent with the Fair Housing Act and that people who were unlawfully denied full use of their residences will be compensated appropriately. We thank RiverBay for its cooperation in improving housing accessibility for all of its residents and in providing for a more caring and compassionate environment for Bronx residents.”
“Housing providers have a legal obligation to grant people with disabilities the reasonable accommodations they need,” said Assistant Secretary Gustavo Velasquez of HUD. “Thanks to this settlement, RiverBay residents who need assistance animals or other accommodations will now be able to fully enjoy their homes.”
According to the complaint filed in federal court:
RiverBay, located in the Bronx, New York, is the owner and operator of the largest affordable housing cooperative in the United States, with approximately 15,372 residential units and 60,000 residents. RiverBay has used an unlawful policy governing waivers to its no-pets rule to deny accommodation requests of persons with disabilities, and has engaged in a pattern or practice of discrimination toward persons with disabilities who request accommodations to its no-pets rule. Specifically, until December 2011, when RiverBay amended its policy and application governing reasonable accommodations, RiverBay’s application for requesting a reasonable accommodation to its no-pets rule consisted of five forms (including one required to be completed only in blue ink and another required to be typewritten), prohibited certain breeds of dogs, required animals to be neutered or spayed, imposed annual renewal requirements and required the applicant to provide his or her medical records. In December 2011 and again in July 2014, RiverBay amended its reasonable accommodation policy, but left in place many of the provisions in the first policy, including a prohibition against certain breeds of animals, a prohibition which RiverBay could waive based only on an applicant’s “medical need” for that particular breed.
Moreover, between 1995 and 2014, the Secretary of HUD, the New York State Division of Housing and Community Renewal and the New York City Commission on Human Rights received and investigated multiple complaints about RiverBay’s practices concerning reasonable accommodation requests. HUD issued three separate charges of discrimination against RiverBay and participated in two administrative hearings before an administrative law judge (ALJ) concerning RiverBay’s reasonable accommodation policy. In each proceeding, the ALJ determined that RiverBay had violated the FHA. In addition, between January 2005 and November 2011, RiverBay denied 28 out of 42 requests for reasonable accommodations to its no-pets rule; another two individuals did not complete the application process.
Under the consent decree approved today, RiverBay will adopt the reasonable accommodation policy regarding assistance animals that is included in the consent decree.
In addition, RiverBay has agreed to pay a civil penalty of up to $50,000, and to dedicate as much as $600,000 to compensate people who have been harmed by inadequate accessibility at Co-op City.
Under the settlement, a person may be entitled to receive monetary compensation if he or she was a resident of RiverBay, or associated with a resident of RiverBay, and was:
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prevented or discouraged from requesting to keep an assistance animal;
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denied a request to keep an assistance animal; or
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harassed or otherwise interfered with after requesting to keep an assistance animal.
Individuals who wish to make a claim for discrimination concerning Co-op City on the basis of disability, or with any information about persons who may have such a claim, can contact the U.S. Attorney’s Office of the Southern District of New York by phone at (212) 637-2800, by fax at (212) 637-2702, online at www.justice.gov/usao/nys/civilrights or write to:
United States Attorney’s Office, Southern District of New York
Attn: Civil Rights Unit
86 Chambers Street
New York, New York 10007
Individuals with a disability who believe that they are being discriminated against by their housing provider may contact the Fair Housing and Equal Opportunity Office, Department of Housing & Urban Development, 26 Federal Plaza, Room 3532, New York, New York, 10278-0068 and at (800) 496-4294.
This case is being handled by the U.S. Attorney’s Office of the Southern District of New York’s Civil Rights Unit. Assistant U.S. Attorney Ellen Blain of the Southern District of New York is in charge of the case.
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Department of Justice Announces Investigation of the Jefferson County Jail in Birmingham, AlabamaRead the Press Release
The Justice Department announced today that it has opened an investigation of the Jefferson County Jail in Birmingham, Alabama, focusing on the treatment of juveniles. The investigation will assess whether juveniles are detained at the jail in conditions that pose a serious risk of harm to their physical and psychological well-being.
The department has received allegations that juveniles at the jail are regularly housed with adult detainees, have been victims of sexual abuse and have been approached by adult detainees for sexual activity and favors. Additionally, juveniles, including those with diagnosed mental illnesses and intellectual disabilities, allegedly are routinely placed in solitary confinement or lockdown—sometimes for months at a time—with little or no access to the law library, telephone, commissary, educational opportunities and other services.
“Isolation—particularly the prolonged and restrictive lockdown alleged in Jefferson County—can lead to paranoia, anxiety, depression and suicide, and exacerbate pre-existing psychological harms,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Indeed, the 2012 Report of the Attorney General’s National Task Force on Children Exposed to Violence concluded that ‘[n]owhere is the damaging impact of incarceration on vulnerable children more obvious than when it involves solitary confinement.’"
“Our commitment to finding solutions to problems in Alabama’s troubled jails and prisons is ongoing,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama. “Where possible, the best solution is always a collaborative approach that encourages the state and counties to correct conditions that are constitutionally inadequate. However, we have not hesitated to file suit where necessary.”
The department will conduct the investigation using its authority under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Under CRIPA, the Attorney General has the authority to investigate violations of the constitutional rights of prisoners in “institutions,” including county jails, where such violations are “pursuant to a pattern or practice of resistance to the full enjoyment of such rights.” The Violent Crime Control and Law Enforcement Act authorizes the Attorney General to bring suit against any governmental entity that has engaged in “a pattern or practice” of depriving juveniles of their rights secured by the Constitution or federal statute. The department has conducted similar investigations in other jurisdictions, including of the Leflore County Juvenile Detention Center in Mississippi, the jails on Rikers Island in New York, the Terrebonne Parish Juvenile Detention Center in Louisiana and the Scioto and Marion Juvenile Correctional Facilities in Ohio.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at (855) 258-1432.
Del Rio Texas Mexican Mafia Member Sentenced to 20 Years in Federal PrisonRead the Press Release
In Del Rio yesterday, 45-year old Texas Mexican Mafia (TMM) member Jesus Meza, Jr. (aka “Jesse”) was sentenced to 20 years imprisonment followed by five years of supervised release for violating federal racketeering and drug trafficking statutes announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, Homeland Security Investigations (HSI) Special Agent in Charge James Spero, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit and Texas Department of Public Safety Director Steven McCraw.
On July 24, 2013, Meza pleaded guilty to one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute and one count of conspiracy to possess with the intent to distribute marijuana. From 2010 until his arrest on September 28, 2012, Meza was responsible for collecting the “dime” or drug tax from drug dealers in Del Rio on behalf of the TMM. In this role, Meza harassed and intimidated individuals into paying funds to the TMM. Additionally, in 2012, Meza and fellow TMM member Daniel Rosario Lara (aka “Diablo”), age 31, were tasked with kidnapping and killing another TMM member who violated TMM rules. However, FBI agents and local law enforcement officers were able to intercept Meza and Lara before the kidnapping and murder occurred.
Other sentences previously handed down to co-defendants for their roles in the criminal enterprise include: Daniel Rosario Lara, 240 months imprisonment; 45-year-old Jose Cardona (aka “Tinga”), 240 months imprisonment; 22-year-old Joel Costilla (aka “Sharky”), 235 months imprisonment; and, 22-year-old Jessica Meza, two years imprisonment. Four remaining co-defendants, who have previously entered guilty pleas and are awaiting sentencing, include: 48-year-old TMM Del Rio leader Roberto Villarreal (aka “Flaco”); 42-year-old Ricardo Zapata (aka “Richie”); 28-year-old Joe Lee Jimenez; and, 23-year-old Ray Rene Salgado. Their sentencings are scheduled for later this year.
This investigation was conducted by the FBI together with HSI, Texas Department of Public Safety--Criminal Investigations Division, and the DEA. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, and U.S. Customs and Border Protection also assisted in the investigation.
Conspiracy, fraud and money laundering charges filed against Holland residentsRead the Press Release
A federal grand jury returned a 58-count second superseding indictment against Mark O. Wittenmyer, 54, of Holland, Ohio; Robert Milam, 65, of League City, Texas; Lonny Remmers, 57, of Corona, California; Mark Aller, 50, of Birmingham, Michigan; and Douglas Boyce, 57, of Maumee, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The existing superseding indictment contains multiple charges including conspiracy, wire fraud, money laundering, securities fraud, and access device fraud. The new superseding indictment adds a sixth defendant, Arvel Ray Henderson II, 46, of Holland, Ohio, who is charged along with Wittenmyer with a money-laundering conspiracy. Henderson is also charged with four individual counts of money laundering.
The indictment charges that from in or around January 2003, and continuing through May 2014, Wittenmyer, Milam, Remmers, Aller, Boyce, and others, conspired to solicit and collect investments, expenses, consulting fees, salaries and other payments in connection with investment and financing transactions induced by false and fraudulent pretenses, representations, and promises. The conspirators utilized several business entities to promote and induce investments, including Spring Valley Marketing Group, Community ISP, Momentum Management, OnLetterhead, bSecured Solutions, New Dimension Fund, and RM Capital, according to the indictment.
False statements were made to investors, lenders, and other participants regarding past successes in arranging investments transactions for the purpose of inducing investments. Wittenmyer used the participation, and purported participation, of attorneys and other professionals to confer an aura of legitimacy to potential investors. Wittenmyer often fraudulently requested that investors and lenders advance funds for travel, legal fees, and other various expenses, which the conspirators then used for personal living expenses, according to the indictment.
In addition to each defendant being charged with one count of conspiracy to commit wire fraud, Wittenmyer is charged with eight counts of wire fraud, 32 counts of money laundering, six counts of securities fraud, and two counts of access device fraud. Milam is also charged with two counts of wire fraud and one count of money laundering. Remmers is also charged with two counts of wire fraud. Aller is also charged with three counts of wire fraud and one count of money laundering, and Boyce is charged with one count of money laundering. As indicated, Henderson is charged with one count of conspiracy to launder money, and four separate counts of money laundering.
If convicted, each defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including any prior criminal record, respective roles in the offense and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, both of Toledo. The case is being prosecuted by Assistant United States Attorneys Gene Crawford and James V. Moroney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Coatesville Man Charged with Child ExploitationRead the Press Release
PHILADELPHIA - David Slater, 52, of Coatesville, PA, was charged by information, filed May 29, 2015, with two counts of use of an interstate commerce facility to entice a minor to engage in sexual conduct, announced United States Attorney Zane David Memeger. According to the information, on June 1, 2013 and November 11, 2013, Slater used the internet to entice and coerce persons whom he believed were under the age of 18 to engage in sexual activity.
If convicted the defendant faces a maximum possible sentence of life imprisonment in prison, a $500,000 fine, 5 years up to a lifetime of supervised release, and a $200 special assessment.
The case was investigated by FBI, the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Clay County, Iowa, Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced May 26, 2015, to 11 years in federal prison.
Todd Daugherty, 52, from Spencer, Iowa, received the prison term after a February 19, 2015, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Daugherty admitted his involvement in a conspiracy from about 2013 and continuing through May 2014 that distributed more than 50 grams of actual (pure) methamphetamine in Spencer, Iowa, and the surrounding area. Daugherty would obtain the methamphetamine from Minnesota and later distribute the methamphetamine to multiple customers in Iowa. A traffic stop was conducted of Daugherty in Minnesota in which four ounces of methamphetamine was seized.
Daugherty was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Daugherty was sentenced to 132 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Daugherty is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, Minnesota Bureau of Criminal Apprehension, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, and the Minnesota State Patrol.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4067. Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Sentenced to More than Three Years’ Imprisonment After Unlawfully Applying for Credit in Someone Else’s NameRead the Press Release
A man who unlawfully used another individual’s identity to apply for credit was sentenced to more than three years in federal prison.
Terry L. Gantt, 28, from Cedar Rapids, received the prison term after pleading guilty to wire fraud and identity theft.
At the plea hearing, Gantt admitted that, between November 2012 and February 2013, he knowingly participated in a scheme to defraud by using another identity, including the social security number, to apply for credit in that person’s name.
Gantt was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He received a sentence of 38 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $2,963.76 in restitution.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and was investigated by the United States Postal Inspection Service and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-142-LRR.
Follow us on Twitter @USAO_NDIA.
Carlsbad Man Pleads Guilty to Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Jacob J. Loredo, 29, of Carlsbad, N.M., pled guilty yesterday in federal court in Las Cruces, N.M., to violating federal firearms and drug trafficking laws.
Loredo was arrested on Feb. 19, 2015, and charged in a criminal complaint with conspiracy to possess methamphetamine with intent to distribute in Eddy County, N.M. According to the criminal complaint, on that day, agents with the Pecos Valley Drug Task Force executed a search warrant on Loredo’s residence and vehicle where they seized ammunition, two firearms, $4,955.00 in cash, approximately an ounce of methamphetamine, scales and other drug paraphernalia. According to court documents, at the time, Loredo was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of cocaine, a felony offense.
During yesterday’s proceedings, Loredo pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm. Loredo admitted that on Feb. 19, 2015, law enforcement officers recovered methamphetamine and two firearms from his residence in Carlsbad.
At sentencing, Loredo faces a statutory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Under the terms of his plea agreement, Loredo also is required to forfeit the $4,995.00 seized from this residence as well as the firearms and ammunition. Loredo remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
California Man Pleads Guilty to Obtaining a Controlled Substance by Fraud and Billing Medicaid for a Fraudulent PrescriptionRead the Press Release
BOISE - Michael James Lott, 32, of Roseville, California, pleaded guilty on June 3, 2015, to acquiring and obtaining a controlled substance by misrepresentation, fraud, and deception and false statement relating to health care matters, U.S. Attorney Wendy J. Olson announced. Lott was indicted by a federal grand Jury in Boise on January 13, 2015.
At the hearing, Lott admitted that he began altering his legitimate prescriptions to fill them ahead of schedule and then made his own forged prescriptions. On April 28, 2014, Lott filled a fake prescription for Oxycodone and then submitted that forged prescription for payment by Medicaid.
The charge of acquiring and obtaining a controlled substance by misrepresentation, fraud and deception is punishable by up to four years in prison, a maximum fine of $250,000, and up to one year of supervised release. The charge of false statement relating to health care matters is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for August 18, before U.S. District Court Chief Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
California Man Pleads Guilty to Obtaining a Controlled Substance by Fraud and Billing Medicaid for a Fraudulent PrescriptionRead the Press Release
BOISE - Michael James Lott, 32, of Roseville, California, pleaded guilty on June 3, 2015, to acquiring and obtaining a controlled substance by misrepresentation, fraud, and deception and false statement relating to health care matters, U.S. Attorney Wendy J. Olson announced. Lott was indicted by a federal grand Jury in Boise on January 13, 2015.
At the hearing, Lott admitted that he began altering his legitimate prescriptions to fill them ahead of schedule and then made his own forged prescriptions. On April 28, 2014, Lott filled a fake prescription for Oxycodone and then submitted that forged prescription for payment by Medicaid.
The charge of acquiring and obtaining a controlled substance by misrepresentation, fraud and deception is punishable by up to four years in prison, a maximum fine of $250,000, and up to one year of supervised release. The charge of false statement relating to health care matters is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for August 18, before U.S. District Court Chief Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Baltimore Man Sentenced to 20 Years in Prison for Armed Robbery of Prescription Drug VanRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Stanley Duryea Johnson, age 60, of Baltimore today to 20 years in prison followed by three years of supervised release for robbery and using a gun during the robbery. Judge Garbis also entered an order that Johnson pay restitution of $93,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on June 18, 2013, a driver of a prescription drug van was waiting for a pharmacy to open at a parking lot on Reisterstown Road in Baltimore. The van contained $93,000 worth of pharmaceutical drugs, which the driver planned to deliver at a number of locations that day. Johnson approached the van, ordered the driver to move to the passenger seat, and began driving the van. Johnson eventually left the driver on the side of the road and drove off in the van.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and Anne Arundel County Police Departments and Baltimore County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Albuquerque Man Sentenced to 97 Months for Conviction on Witness Tampering and Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – George Roybal, 53, of Albuquerque, N.M., was sentenced late yesterday afternoon in federal court to 97 months in prison followed by three years of supervised release for his conviction on witness tampering and cocaine trafficking charges.
George Roybal was one of 19 defendants charged with drug trafficking and money laundering charges in a 60-count indictment that was filed in Dec. 2012. The indictment was superseded twice; first in Feb. 2014, to add a 20th defendant and a witness tampering charge, and again in Sept. 2014, to add another witness tampering charge and a heroin trafficking charge.
The charges filed in the case were the result of a 16-month multi-agency investigation into a drug trafficking organization headed by Christopher Roybal, 35, of Albuquerque, N.M., which was led by the FBI, IRS and Albuquerque Police Department with assistance from the DEA, the HIDTA Region I Narcotic Task Force and the Bernalillo County Sheriff’s Office. The investigation, code-named “Operation Rain Check,” was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The original indictment charged Christopher Roybal and ten others, including George Roybal, with conspiracy to distribute large quantities of cocaine in New Mexico between Aug. 2011 and Dec. 2012. It also charged Christopher Roybal and nine others with conspiracy to distribute marijuana between Oct. 2011 and Dec. 2012. Additionally, the indictment included three separate money laundering conspiracies, 22 money laundering offenses, and 18 “telephone counts,” offenses alleging the use of a communications device to facilitate a drug trafficking offense. The indictment was superseded in Feb. 2014, to add a new charge against George Roybal, alleging that he threatened an FBI informant to prevent the informant from testifying at the trial of this case which was then scheduled to begin on May 19, 2014. It was superseded again in Sept. 2014, to add two new charges against defendant Kenneth Ulibarri, 36, of Albuquerque. The new charges alleged that Ulibarri attempted to murder an FBI informant to prevent that informant from testifying at the trial of this case which was then scheduled to begin on Nov. 10, 2014, and with distributing heroin in Bernalillo County, N.M., in May 2014.
On Jan. 14, 2015, George Roybal pled guilty to witness tampering and conspiracy to distribute cocaine. In entering his guilty plea, George Roybal admitted that from Aug. 2011 through Dec. 2012, he conspired with Christopher Roybal and others to distribute cocaine in the Albuquerque area. George Roybal further admitted that on Nov. 13, 2013, he threatened to harm a person who was working with law enforcement.
This case was investigated by the FBI, IRS Criminal Investigation and the Albuquerque Police Department, with assistance from the DEA, the HIDTA Region I Narcotics Task Force and the Bernalillo County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shana B. Long. Assistant U.S. Attorney Stephen R. Kotz is responsible for litigating the related civil asset forfeiture actions.
The HIDTA Region I Narcotics Task Force is comprised of the Albuquerque Police Department, Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and the Valencia County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Aiken Man Who Was Subject of Manhunt Sentenced in Federal Child Exploitation CaseRead the Press Release
AUGUSTA, GA: Russell Donald Benjamin, 46, of North Augusta, SC, was sentenced last week by United States District Court Judge J. Randal Hall to 90 months in prison, followed by 25 years of supervised release, for Interstate Travel With Intent to Engage in Illicit Sexual Conduct in violation of 18 U.S.C. §2423(b). Benjamin will be required to register as a sex offender. He pled guilty to the charge in October 2014.
The evidence at Benjamin’s guilty-plea and sentencing hearings showed that, in April 2014, Benjamin posted a message on Craigslist seeking “a daddy’s girl.” Law enforcement officers working with the FBI’s Cyber Crime/Child Exploitation Task Force (CCCX) responded to the message in an undercover capacity, indicating that a minor girl was available for a sexual encounter. Benjamin continued the communications for approximately three to four hours, and ultimately traveled from South Carolina to a location in Richmond County believing that he would be engaging in sexual activity with a young teen. At the time of his arrest, Benjamin possessed condoms and Viagra in a backpack in his truck.
Judge Hall attributed the lengthy sentence in part to Benjamin’s attempted escape and failure to appear just prior to his scheduled guilty-plea hearing. The day he was first expected to appear in court to plead guilty, Benjamin, who had been placed on strict bond conditions pending trial, removed a GPS ankle-monitor from his leg and fled from his home on foot. His disappearance led to a 24-hour manhunt conducted by the U.S. Marshal Service, the FBI, the U.S. Probation Office, the South Carolina Law Enforcement Division (SLED) and the Aiken County Sheriff’s Office, which ended in Benjamin’s arrest on Wednesday morning, October 22, 2014.
The FBI’s CCCX Task Force is made up of agents and investigators with the FBI, Georgia Bureau of Investigation, Richmond County Sheriff’s Office and Columbia County Sheriff’s Office, all of whom were instrumental in this investigation. The case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
United States Attorney Edward J. Tarver commended the CCCX Task Force and Assistant United States Attorney Nancy Greenwood, for the investigation and prosecution of this case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547
Acting U. S. Attorney Myers and Attorney General Stenehjim Announced "Bakken Organized Crime Strike Force" in Western North DakotaRead the Press Release
BISMARCK, ND – Acting US Attorney Chris Myers and ND Attorney General Wayne Stenehjem held a joint announcement in Bismarck today, to announce the formation of the “Bakken Organized Crime Strike Force.”
The key component of the Strike Force is the focused and coordinated mission of identifying, targeting and dismantling all types of organized crime in the Bakken including human trafficking, drug and weapons trafficking, and white collar crimes. The Strike Force follows the 2013 creation of Project Safe Bakken, a collaborative la enforcement program in North Dakota and Montana that joins federal, state and tribal law enforcement in the fight against criminal activity in the Bakken.
“The Strike Force will have the capability of not only dismantling local criminal organizations in the Bakken, but also to take out the national and international components of these organizations wherever they may be located,” said Acting ND US Attorney Chris Myers. “The strike force will take a regional approach to a regional problem, coordinating with Montana law enforcement. We value the strong partnerships already developed with Montana US Attorney Mike Cotter and Montana Attorney General Tim Fox in this fight,” he continued.
“In response to the serious increase in the level of organized criminal activity in western North Dakota, local, state and federal agencies have allocated resources for critical new law enforcement. All of this makes it possible to send a message that law enforcement is doubly dedicated to bringing lawbreakers to justice. This effort will assure citizens that we will always protect our residents, and tells criminals that they do not want to do business in North Dakota,” said Stenehjem.
Bruce Ohr, director of the US DOJ Organized Crime Drug Enforcement Task Force (OCDETF) program said he “fully supports the efforts being made in North Dakota and Montana to bring law enforcement agencies and prosecutors together to address the crime problems arising from the oil boom in the Bakken.” OCDETF is a nationwide program that funds agents, prosecutors and task forces to identify and dismantle criminal organizations.
Montana US Attorney Cotter said “the Bakken’s criminal impact transcends borders and so should our law enforcement response. The Strike Force is a welcome addition to our existing multi-jurisdictional law enforcement efforts in the region.”
Federal, state and local authorities have mobilized approximately fifty agents and four prosecutors in a concerted effort to attack organized crime. The strike force is comprised of four task forces, each having allocated federal, state and local agents along with a coordinated state-federal prosecutor. The task forces are set up in Bismarck, Dickinson, Minot and Williston, and will coordinate their investigative efforts.
Stenehjem and Myers will hold a joint news conference in Williston this afternoon. The Federal Bureau of Investigation is currently building a new office in Williston with an expected completion date in 2016. Once completed, this office will contain a federally funded Safe Streets task force to enhance the overall Strike Force capabilities.
2 June 2015
York City Man Indicted Federally for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Larry Eugene DeShields, of York, Pennsylvania was arrested on May 27, 2015 on charges of involving illegal drugs.
According to United States Attorney Peter Smith, DeShields, a/k/a “Dunk”, age 41, trafficked in over 500 grams and more of cocaine and marijuana in York, New York, and elsewhere during February 2015. DeShields was indicted on the charges by a federal grand jury in Harrisburg on May 20, 2015. The indictment was made public after DeShields was taken into custody. The government also filed a notice with the court alleging that DeShields was previously convicted for distribution of crack cocaine in 2005, qualifying him for greater penalties if convicted on the new charges.
DeShields appeared in court in Harrisburg before U.S. Magistrate Judge Martin C. Carlson. DeShields was detained.
The new charges stem from the ongoing investigation by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives into drugs and gang violence in the Southside of York. The case was brought with the assistance of the U.S. Drug Enforcement Administration, the Pennsylvania State Police, Springettsbury Township Police Department, and the York County Drug Task Force.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty in this case is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Woman sentenced to federal prison for defrauding Hurricane businessRead the Press Release
Huntington, W. Va. - Sandra Ball, 58, of Hurricane, West Virginia, was sentenced yesterday to three years in federal prison for defrauding her employer of nearly $450,000, United States Attorney Booth Goodwin announced. Chief United States District Judge Robert C. Chambers imposed the sentence.
From 2008 through 2013, while working as an auditor for Mountaineer 4x4, Ball made hundreds of Internet transactions in which she used her employer’s checking account to pay for personal items and expenses. She pleaded guilty to two felony counts of wire fraud in March 2015.
In addition to prison time, Ball was ordered to repay more than $445,000 to Mountaineer 4x4, a Hurricane business that deals in accessories for trucks and SUVs.
The case was prosecuted as part of U.S. Attorney Goodwin’s effort to combat employee theft from West Virginia businesses. The Hurricane Police Department and the Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution.
United States Contracting Official Charged with Obstructing a Federal AuditRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a civilian contract officer working with the U.S. Army Contracting Command at Redstone Arsenal with obstructing an audit by the Department of Defense, Office of Inspector General (DODIG), announced U.S. Attorney Joyce White Vance and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
The U.S. Attorney's Office filed a one-count information in U.S. District Court charging TERESA MAYBERRY, 54, of Huntsville, with obstruction of a federal audit. Mayberry created a series of false documents that she provided to DODIG to obstruct its 2012 audit of an Army contract to purchase parts for Russian-made Mi-17 helicopters, according to the charge. Mayberry has entered a plea agreement with the government, also filed today in District Court, in which she acknowledges the charge against her and states her intention to plead guilty.
The Special Inspector General for Afghanistan Reconstruction (SIGAR), the Defense Department's Defense Criminal Investigative Service (DCIS), U.S. Army Criminal Investigation Command (CID), the FBI and the Internal Revenue Service Criminal Investigation Division (IRS-CI) are working jointly in the investigation of fraud and corruption in Mi-17 helicopter contracting.
"Fraud and corruption in military contracting is theft from all of us who pay taxes," Vance said. "It harms our mission overseas and undermines the confidence of the American public, which demands a military procurement system that spends tax dollars wisely and responsibly," she said. "Particularly in light of the move of Army Materiel Command onto Redstone Arsenal, this investigation should serve as a warning for those who seek to defraud the U.S. military and the American public that my office will pursue these crimes aggressively.”
According to the information filed today, in late 2011 and 2012, DODIG was investigating contracts involving overhauls and purchases of spare parts, amounting to more than $8 million, for Russian-made Mi-17 helicopters. It was material to DODIG to determine whether the Army paid a reasonable price for the parts, whether the parts purchased were needed, and whether proper contracting procedures were followed.
Mayberry was involved in implementing the parts contract, which she had signed on behalf of the United States. In the course of the investigation, DODIG several times requested contracting documents from Mayberry related to the decisions to purchase spare parts. On several occasions, Mayberry prepared, and directed her subordinates to prepare, a variety of false and backdated documents that she provided to DODIG in response to its requests, according to the information. As an example, the information charges that Mayberry caused the creation of a backdated document, bearing her signature, which falsely represented that price negotiations had taken place on parts purchases.
The charge carries a maximum penalty of five years imprisonment and a $250,000 fine.
The SIGAR, DCIS, Army CID, FBI and IRS-CI are investigating the case. DOJ Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section (on detail from SIGAR), and Assistant U.S. Attorneys Henry Cornelius and Ramona Albin are prosecuting the case.
Two Wilkes-Barre Men Charged with Drug Trafficking and Firearms OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Wilkes-Barre men have been indicted by a federal grand jury in Scranton for drug trafficking and firearms offenses.
According to United States Attorney Peter Smith, the indictment charges Larry Hayes, age 28, with possession with intent to distribute heroin, cocaine and marijuana. The indictment also charges Disean Kendricks, age 26, with possession with intent to distribute heroin, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
The charges stem from an incident in which investigators served a search warrant at a residence located on Sullivan Street in Wilkes-Barre and seized heroin, cocaine and marijuana from a bedroom in which Hayes was sleeping. From another bedroom in which Kendricks was sleeping investigators seized an additional amount of heroin and two firearms.
The investigation was conducted by the Wilkes-Barre Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Plead Guilty to Selling Membership in Fake Indian TribeRead the Press Release
BROWNSVILLE, Texas – A Brownsville man and woman have entered guilty pleas to selling membership in a non-recognized Indian tribe, announced U.S. Attorney Kenneth Magidson.
Humberto Reveles, 60, and Maria Isabel Lerma, 32, have admitted to selling membership in the Yamassee tribe as part of a scheme to defraud. Reveles was the chief, and later grand chief, of the tribe. He claimed the tribal identification documents that came with membership would allow tribe members to remain in the United States, prevent them from being deported, allow them to travel within and work in the country, despite not having immigration status. Lerma was initially hired as a secretary and assisted Reveles in carrying on the scheme.
Lerma pleaded guilty today before U.S. District Judge Andrew S. Hanen, while Reveles entered his plea before U.S. Magistrate Judge Ronald G. Morgan on March 17, 2015.
Reveles opened an office where he would meet with prospective tribe members, in addition to holding informational meetings. Prospective tribe members would pay Reveles or his employees and were to receive tribal naturalization certificates, tribal identification cards and tribal drivers’ licenses. The documents were to be presented in support of the false immigration claims underlying the scheme. The certificates and cards displayed the words “U.S. Department of State authentication #04010010-1,” even though that number referred to a state of Georgia document and did not refer to the Yamassee tribe.
The Yamassee tribe not a federally-recognized Indian tribe nor recognized by the U.S. Department of State.
Reveles is set for sentencing June 22, 2015, before U.S. District Judge Andrew S. Hanen, while Lerma is set for Sept. 8, 2015. At that time, they face up to 20 years in federal prison and a possible $250,000 fine. They were permitted to remain on bond pending their respective sentencing hearings.
The case was investigated by Homeland Security Investigations and U.S Department of State - Diplomatic Security Service with assistance from Border Patrol, FBI and the Brownsville Police Department. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Two New York Doctors Sentenced to Prison for Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Two doctors with a practice in New York were each sentenced today to 20 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Richard Goldberg, 65, of Weston, Connecticut, and Gary Leeds, 61, of Greenwich, Connecticut, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to one count of accepting bribes. Judge Chesler imposed both sentences today in Newark federal court.
Including Goldberg and Leeds, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
Goldberg and Leeds admitted to accepting thousands of dollars per month in cash between September 2010 and April 2013 in return for referring patient blood specimens to BLS. The pair acknowledged they each accepted more than $100,000 in cash from BLS in exchange for referring at least a combined $1.8 million in lab business from their joint practice, Family Medical Group of Manhattan.
In addition to the prison terms, Judge Chesler sentenced Goldberg to serve three years of supervised release and ordered him to pay a $5,000 fine. Leeds was also sentenced to one year of supervised release and ordered to pay a $15,000 fine. Goldberg and Leeds must each forfeit $108,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel:
Goldberg: Aidan P. O’Connor Esq., Hackensack, New Jersey.
Leeds: E. Scott Morvillo Esq., New York
Two Men Sentenced for Armed Bank RobberyRead the Press Release
STATESVILLE, N.C. – Earlier today, U.S. District Judge Richard Voorhees handed down lengthy prison terms to two men involved in a 2013 armed bank robbery, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Judge Voorhees sentenced Darius Donnell Freeman, 33, of Charlotte to serve 447 months in prison. Freeman’s conspirator, Wincy Joseph, 29, also of Charlotte, was sentenced to 135 months in prison. Judge Voorhees also ordered the defendants to serve five years under court supervision following their release from prison and to pay $5,185.99 as restitution.
In May 2014, a federal jury convicted both men of armed bank robbery and possession of a firearm in furtherance of a crime of violence charges. The jury also found Freeman guilty of carjacking and a second possession of a firearm in furtherance of a crime of violence.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Chief Matthew A. Selves of the Troutman Police Department and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to filed court documents and trial proceedings:
In or about May 20, 2013, at approximately 5:15 a.m. Freeman carjacked a victim at gunpoint at a Circle K gas station located on South Boulevard in Charlotte. Later that morning, Freeman and Joseph used the carjacked vehicle to rob a Bank of America branch in Troutman, N.C. Soon after the bank opened, Freeman entered the bank wearing a black cap, sunglasses, gloves and brandishing a silver handgun. Freeman jumped on the tellers’ counter and demanded cash. Joseph entered the bank behind Freeman, dressed in a black sweatshirt with the hood pulled over his head, sunglasses and gloves, and demanded cash from another bank employee. The defendants then fled the scene with $5,185.99 in cash, driving off in the car Freeman had jacked earlier that day. Law enforcement later found the car abandoned on Interstate-77 in Iredell County. The defendants were identified five days later, following a tip from a concerned citizen. Freeman was arrested on June 6, 2013 and Joseph on June 13, 2013.
The investigation was led by the FBI, the Troutman Police Department and CMPD. Acting U.S. Attorney Rose also thanked the Mooresville Police Department, the Iredell County Sheriff’s Office and the Statesville Police Department for their assistance in the investigation.
The prosecution was handled by Assistant U.S. Attorney Elizabeth Greene and Special Assistant U.S. Attorney Rebecca McNerney.
Two Men Plead Guilty to Burglary of Gloucester Pawn ShopRead the Press Release
NEWPORT NEWS, Va. – Patrick O. Cox, 20, of Heathsville, Va., and Avery Carter, 20, of Chesterfield, Va., plead guilty yesterday to theft of firearms. In addition, Cox pled guilty to being a felon in possession of a firearm.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, ATF Special Agent in Charge, made the announcement after the plea was accepted by U.S. District Judge Robert G. Doumar.
Cox and Carter were indicted by a federal grand jury on April 15, 2015. Cox faces a maximum penalty of ten years in prison on each count if convicted. Carter faces a maximum penalty of ten years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with their plea agreements, at approximately 1:32 a.m. on January 15, 2015, three individuals broke into the Gloucester Pawn Shop. They wore masks and carried tools to break into the firearm display cases. They stole a total of twenty firearms and later admitted to participating in the burglary. Both Cox and Carter will be sentenced on September 15, 2015, in U.S. District Court in Norfolk. A third individual, Donovan Carlos, is proceeding to trial which is currently set for July 7, 2015, in Newport News.
This case was investigated by ATF and the Gloucester Sheriff’s Department. Assistant U.S. Attorney Robert E. Bradenham, II is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr20.
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Two Local Men Plead Guilty to Federal Explosives and Weapons ChargesRead the Press Release
St. Louis, MO – This morning in federal district court, defendants OLAJUWON DAVIS and BRANDON ORLANDO BALDWIN pled guilty to planning and conspiring to blow up public buildings and police vehicles during the Ferguson protests, specifically mentioning the St. Louis County Prosecutor and the Ferguson Chief of Police as possible targets. The defendants also pled guilty to conspiring to illegally purchase firearms and distribute them to convicted felons, who were not legally able to purchase or possess firearms.
According to court documents, in August 2014, Olajuwon Davis, a member of the New Black Panther Party, became a frequent protestor in Ferguson, Missouri. During the protests, Davis met a fellow protestor by the name of Brandon Orlando Baldwin, who was employed at Cabela’s Inc. in Hazelwood, Missouri. Cabela’s is a federally licensed firearms dealer. Davis and Baldwin began to discuss how they could help arm some of the individuals taking part in the Ferguson protests. Baldwin volunteered that he could use his position at Cabela’s, and thereafter, Davis related to several people that he could procure firearms for convicted felons through Baldwin at the Cabela’s store. In fact, three such purchases were made: One on October 22, 2014, and two on November 7, 2014.
By early to mid-November, Davis and Baldwin’s talk of procuring guns had radically expanded into acquiring bombs. The discussions included types of bombs, blast radius and cost. Police stations and officers were discussed as likely targets, with specific references made to McCulloch (the St. Louis County Prosecutor) and Jackson (the Ferguson Police Chief). On November 12, 2014, an undercover informant showed the defendants a recording of a controlled explosion that would be produced by the type of pipe bomb the defendants were talking about purchasing. The defendants requested a delivery date of Friday November 21.
On Thursday evening November 19, the arranged sale of three bombs was scheduled for shortly after midnight in the early morning hours of Friday, November 20. The reason for the delay was so that the defendants would be able to withdraw the needed $150 from an ATM machine. The parties then met at a prearranged location in Hazlewood where the exchange of money and the three would-be bombs took place. Immediately upon the exchange taking place, Davis and Baldwin were arrested.
Olajuwon Davis, St. Louis, Missouri, pled guilty to one felony count each of conspiracy to damage or destroy a building, vehicle and other property by use of an explosive; conspiracy to make false written statements in connection with the purchase of firearms and the transfer of firearms to a felon; and two felony counts of aiding and abetting in the making of false written statements in connection with a firearms purchase. He appeared before United States District Judge Henry Autrey.
Brandon Orlando Baldwin, St. Louis, Missouri, pled guilty to one felony count each of conspiracy to damage or destroy a building, vehicle and other property by use of an explosive; conspiracy to make false written statements in connection with the purchase of firearms and the transfer of firearms to a felon; and two felony counts of making false written statements in connection with a firearms purchase. He appeared before United States District Judge Henry Autrey. Sentencing for both defendants has been set for August 31, 2015.
United States Attorney Richard Callahan praised law enforcement for preventing what potentially could have been a major disaster. "The disruption of this plot, coming as it did on the eve of the expected Grand Jury announcement, undoubtedly saved lives. Luckily for all of us, we’ll never know just how many," he said.
If convicted, these charges carry penalties ranging from 5 to 20 years in prison and/or fines up to $250,000.
This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms & Explosives, St Louis County Police Department and the St Louis Metropolitan Police Department.
Three People Sentenced Prison for Their Roles in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A brother and sister and one other person were sentenced today for their respective roles in conspiring to defraud financial institutions as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Nancy Wolf-Fels, 58, of Toms River, New Jersey, was sentenced to 42 months in prison; Dwayne Onque, 47, of Belleville, New Jersey, was sentenced to 63 months in prison; and Mashon Onque, 44, of East Orange, New Jersey, as sentenced to 30 months in prison. All three had been convicted in a four-week trial in October 2014 before U.S. District Judge Jerome B. Simandle, who imposed the sentences today in Camden federal court.
The defendants were each convicted of one count of conspiracy to commit wire fraud. Dwayne Onque was also convicted of one count of conspiracy to commit money laundering.
According to the documents filed in this case and the evidence at trial:
The defendants and their conspirators schemed to defraud financial institutions by locating oceanfront condominiums overbuilt by financially distressed developers and negotiating a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, New Jersey, other locations in New Jersey and in Naples, Florida – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and finder’s fee agreements.
From 2007 through mid-2008, Wolf-Fels served as a loan officer at the Forked River Branch of the mortgage company, Mortgage Now. She and her conspirators originated six loan applications for unqualified buyers that contained false and fraudulent information. Working with her conspirators – including one who manufactured fake bank statements, retirement account statements and pay stubs to support the false loan applications – Wolf-Fels assembled the loan applications and sent them to victim financial institutions, which lent the unqualified buyers mortgage funds.
From late 2006 through mid-2007, Dwayne Onque served as a “straw buyer” of five properties in Middletown, New Jersey, and Wildwood, New Jersey. For each of the five properties, he signed false and fraudulent loan applications and closing documents that resulted in the release of more than $2 million of mortgage funds.
During 2006 and 2008, Mashon Onque served as a title agent at Tri-State Title Agency in Montclair, New Jersey. She acted as the closing agent for fraudulent mortgage loans orchestrated by her conspirators, including her brother, Dwayne Onque. The conspirators put together buyers and sellers in real estate transactions, and then filed false and fraudulent loan applications containing inflated income figures for the borrowers. After the mortgage lenders approved the loans, Mashon Onque prepared and signed fraudulent settlement statements that falsely claimed that the borrowers had made down payments to close the loans.
In addition to the prison terms, Judge Simandle sentenced each of the three defendants to three years of supervised release. Restitution will be determined at a hearing on July 9, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Wolf-Fels: Paul Urbania Esq., Shrewsbury, N.J.
Dwayne Onque: Peter Levin Esq., Philadelphia
Mashon Onque: Anne Singer Esq., Haddonfield, N.J.
Third Man Pleads Guilty in Counterfeit Currency SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Timothy Larry Malden (44, Jacksonville) today pleaded guilty to aiding and abetting the passing of counterfeit Federal Reserve notes. He faces a maximum penalty of 20 years in federal prison. Christopher Jon Kirkland (41) and William Brinkley, Jr. (35), also of Jacksonville, pleaded guilty to the same offenses on June 5, 2014. They each face a maximum penalty of 20 years’ imprisonment. Sentencing dates have not yet been set.
According to the plea agreement, in approximately August 2013, Kirkland began manufacturing counterfeit $20 and $100 Federal Reserve notes. Once he manufactured the notes, Brinkley and Malden drove Kirkland around to various businesses in Florida or Georgia to pass the counterfeit currency. They passed the notes to obtain merchandise and reloadable gift cards. They also returned fraudulently obtained merchandise in order to obtain genuine currency. From approximately August 2013, to December 2013, the three passed or attempted to pass approximately $32,600 in counterfeit currency throughout Florida and Georgia.
This case was investigated by United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Sturgeon Bay Man Sentenced for Receipt of Child PornographyRead the Press Release
First Assistant United States Attorney Gregory J. Haanstad announced that Steven P. Link (47) was sentenced on June 1, 2015, by Chief Judge William C. Griesbach to 90 months imprisonment for the receipt of child pornography in violation of Title 18, United State Code, Section 2252A. Upon his release, Link will be on federal supervised release for 15 years and will have to report as a sex offender.
According to court documents, Sturgeon Bay Police Department officers executed a search warrant at a bookstore named “Untitled and Rare Used Books” that is owned and operated by Mr. Link. They also searched Link’s residence. Law enforcement officers seized numerous computers and media storage devices, searched them, and identified thousands of images and movie files containing child pornography. In particular, law enforcement forensic examiners determined that Link’s external hard drive contained approximately 841 GB of pornography consisting of 37,100 movie/image files (approximately 31,014 image files and the remainder movie files). According to law enforcement officers, at least 800 GB of this total consisted of images of teenage girls engaged in sexually explicit conduct; at least half of that 800 GB total involves minors believed to be between 5 and 16 years of age engaged in various forms of sexually explicit conduct.
In pronouncing sentence, Judge Griesbach noted Link’s extensive collection of child pornography including graphic movie files depicting minors engaged in horrific sexual acts. He also found the case aggravated because Link made secret video recordings of young adult females using the public bathroom at the bookstore while in various stages of undress.
The case was investigated by the Sturgeon Bay Police Department and was prosecuted by Assistant U.S. Attorney William Roach.
First Assistant United States Attorney Gregory J. Haanstad said: “Child pornography offenses exploit and victimize the most vulnerable members of our society. Investigations and prosecutions like this reflect the absolute commitment that the Department of Justice has made to protecting children from abuse and exploitation. The Department often is assisted in these efforts by our local law enforcement partners, and the tireless work of Sturgeon Bay Police Department Sergeant Carl Waterstreet and Officer Chad Mielke, the computer forensic examiner, was integral to the successful investigation and prosecution of this complicated case.”
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St. Croix Man Sentenced for Carjacking-related OffenseRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on June 1, 2015 sentenced Abdallah Abdallah, 24, to 84 months in prison for using and carrying a firearm during and in relation to a crime of violence, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation (FBI) Special Agent-in-Charge Luis Fraticelli, and Virgin Islands Police Commissioner Delroy Richards.
Chief Judge Lewis also sentenced Abdallah to three years of supervised release and ordered him to pay a special assessment of $100.
On February 2, 2015, Abdallah pleaded guilty to using and carrying a firearm during and in relation to a crime of violence. According to court records, on or about December 24, 2013 in the Estate Strawberry area of St. Croix, Abdallah intentionally drove a brown Chevy Malibu in front of a red Focus driven by the victim and blocked the victim’s car. The passenger in the front seat of the car driven by Abdallah got out the car, walked towards the red Focus, pointed a gun at the victim’s head and told him to get out of the car. After the victim got out of his car, the individual with the gun got into the victim’s car. Abdallah then drove off, and the individual with the gun followed him in the victim’s car. Abdallah was arrested on December 25, 2013, and he had the victim’s car keys in his possession. The victim’s car was later found behind Abdallah’s residence in Estate LaReine. Abdallah was charged under the aiding and abetting theory. His accomplice, a minor, was charged in the Superior Court.
This case was investigated by the VIPD and FBI. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
South Jersey Woman Admits Role in Conspiracy to Traffic Guns from North Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Camden woman today admitted buying five firearms in North Carolina so her cousin could sell them in New Jersey, U.S. Attorney Paul J. Fishman announced.
Johanna Betty Young, 25, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with one count of conspiring to deal firearms without a license.
According to documents filed in this case and statements made in court:
In January 2012, Young’s cousin, Wendelle Ford, 41, also of Camden, gave Young money to apply for firearms purchase permits in North Carolina, where Young lived at the time. Young admitted she knew that neither she nor Ford were federally licensed firearms dealers. She also knew that Ford had a prior felony conviction and therefore could not legally purchase or possess firearms.
Once Young obtained the purchase permits, Ford traveled to North Carolina and he and Young visited gun shops. After Ford told her which firearms to buy, Young lied on the purchase paperwork, stating that she was the actual buyer. Young bought five handguns and gave them to Ford knowing that he was going to bring them to New Jersey and sell them. Later, Ford gave Young $200 for each firearm.
The conspiracy charge to which Young pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 7, 2015.
The case against Ford is still pending. The charges and allegations against him are merely accusations and he is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky in Newark, New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Howard Wiener of the U.S. Attorney’s Office in Camden.
Defense counsel: Jose Luis Ongay Esq., Camden
Sex Offender Sentenced to Life in Prison for Guilty Plea to Federal Firearms OffenseRead the Press Release
LAS VEGAS, Nev. – A convicted sex offender who was arrested at his home in Las Vegas with a minor boy and also found in possession of a firearm, was sentenced today to life in prison for his guilty plea to a federal firearms offense, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
William Oliver Smith, 43, most recently a resident of Las Vegas, was sentenced by U.S. District Judge Jennifer A. Dorsey. Smith pleaded guilty in February 2015 to one count of felon in possession of a firearm and stipulated in the plea agreement to the life sentence. There is no parole in the federal system.
“We will continue to use federal gun laws to prosecute repeat offenders and remove them from our community, permanently if necessary” said U.S. Attorney Bogden. “We can all be thankful for the work of our investigators and prosecutors in ensuring community safety and that this defendant will never again harm any more children.”
According to the plea agreement, on May 25, 2013, officers from the Las Vegas Metropolitan Police Department identified Smith as a suspect in the disappearance of a juvenile in Las Vegas. When officers contacted Smith at his residence, he was with a 10-year-old boy, who was not the missing juvenile. Smith was arrested for lewdness with a minor. During a search of the residence, officers recovered a .38 caliber handgun in a drawer next to Smith’s bed.
Smith was previously convicted of sexual assault of a minor and taking indecent liberties with a child in North Carolina, child molestation in San Paulo, Brazil, and attempted sexual assault, in Reno, Nev.
This case was investigated by the Las Vegas Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.
Serra Nissan Controller Arrested on 16-Count IndictmentRead the Press Release
BIRMINGHAM – Federal agents this morning arrested KIMBERLY H. BRANCH, controller for Serra Nissan, based on a 16-count indictment returned by a federal grand jury last week, announced U.S. Attorney Joyce White Vance, Federal Bureau of Investigation Special Agent in Charge Roger C. Stanton and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
The indictment against Branch, 34, of Trussville, was unsealed this morning following Branch's arrest at the car dealership. The indictment includes charges of a conspiracy and wire fraud related to a scheme to defraud Nissan North America Inc. between March 2013 and April 2013. According to the charges, Branch and others at Serra Nissan falsely reported cars as having been sold at Serra Nissan in Birmingham in order to obtain additional incentive payments that the dealership did not earn. This process, called “pooling sales,” occurs when a dealer owns or is associated with more than one dealership and combines or attributes sales from one dealership to another in order to meet sales incentives levels that each dealership would not reach on its own.
According to the indictment, Branch is the controller at Serra Nissan and was responsible for instructing another Serra Nissan employee to create false documents to hide the fraud, in the event Nissan North America audited the dealership. The 15 vehicle sales fraudulently reported at Serra Nissan caused Nissan North America to pay the dealership $82,750 in incentives, according to the indictment.
FBI and IRS-CID investigated the case, which Assistant U.S. Attorneys Amanda S. Wick and Jennifer S. Murnahan are prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty in court.
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Schuylkill Federal Correctional Institution Inmate Charged with Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a felony Criminal Indictment was returned by a federal grand jury sitting in Scranton charging federal prison inmate Dwayne Parker, age 30, today.
According to United States Attorney Peter Smith, Parker was charged with allegedly possessing a homemade weapon in April of 2014, while an inmate at the federal prison.
If convicted, Parker could be imprisoned for a maximum sentence of up to 5 years and a fine in the amount of $250,000.
The investigation was conducted by the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill Federal Correctional Institution Inmate Charged with Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a felony Criminal Indictment was returned by a federal grand jury sitting in Scranton charging federal prison inmate Dwayne Parker, age 30, today.
According to United States Attorney Peter Smith, Parker was charged with allegedly possessing a homemade weapon in April of 2014, while an inmate at the federal prison.
If convicted, Parker could be imprisoned for a maximum sentence of up to 5 years and a fine in the amount of $250,000.
The investigation was conducted by the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill Federal Correctional Institution Inmate Charged in the Assault of Corrections OfficerRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a Criminal Indictment was returned by a federal grand jury sitting in Scranton charging federal prison inmate Deshon Thomas, age 40, with allegedly assaulting a federal corrections officer at the Schuylkill Federal Correctional Institution in November 2014, causing bodily injury.
The investigation was conducted by the Federal Bureau of Investigation (FBI). The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Saylorsburg Man Sentenced to Prison for Role in Drug Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Saylorsburg man was sentenced to 10 months in prison today by U.S. District Court Judge Robert D. Mariani in Scranton, Pennsylvania for conspiring with others to distribute illegal drugs in the Monroe-Berks County area in 2011-2013.
According to United States Attorney Peter Smith, the defendant, Stephen Krpata, previously pleaded guilty to participating in the drug conspiracy that was responsible for distributing cocaine, crack cocaine, heroin, and oxycodone.
Krpata was indicted by a federal grand jury in June 2013, as a result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and Berks County Detectives.
Judge Mariani also ordered Krpata to serve three years on supervised release following his prison sentence, and to pay a special assessment of $100.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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