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Friday 17 April 2015
National Crime Victim's Rights WeekRead the Press Release
In commemoration of National Crime Victim’s Rights Week, the U.S. Attorney’s Office for the Eastern District of Michigan, Wayne County Prosecutor’s Office, U.S. Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), United States Marshal Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Crime Stoppers of Michigan will be recognizing the strength and tenacity of crime victims with a tree planting and dedication ceremony. Engaging community leaders, organizations, and local partners is critical to meeting victims where they are and empowering them throughout the healing process and as they become survivors. Please join us on Tuesday, April 21, 2015, at 2:30 pm in Elizabeth Gordon Sachs Greening of Detroit Park at 1463 East Jefferson Avenue, Detroit, MI. The park is located East of Rivard between East Jefferson and Larned. Parking is available along Larned. If you are a victim of a crime, or know of a victim of a crime in need of resources, the Detroit Police Department will be hosting a Crime Victim’s Awareness Fair at 18100 Meyers (Northwest Activities Center) on Saturday, April 25, 2015, from Noon until 5:00 pm.Northwest Arkansas Man Sentenced to 10 Years in PrisonRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Fernando Canales-Mendoza, age 52, a Mexican citizen living in Eureka Springs, Arkansas, was sentenced today to 120 months in prison followed by five years of supervised release for two counts of Distribution of Methamphetamine, one count of Possession with Intent to Distribute more than fifty (50) grams of Methamphetamine, and one count of Conspiracy to Distribute Methamphetamine. Mendoza was originally indicated by a federal grand jury in September, 2014 and found guilty in February, 2015 following a two day jury trial. The Honorable Robert T. Dawson presided over both the trial and today’s sentencing in the United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, "With this sentence, another positive step has been taken to assure that the families, especially children, in Carroll County can live in a community free of illegal drug trafficking and the violence and other crime that comes with it. Our office will continue to aggressively prosecute those responsible for bringing methamphetamine and other drugs into the Western District of Arkansas."
According to evidence presented to the jury, on April 30, 2014, as part of an ongoing investigation, an undercover agent with the Drug Enforcement Administration (DEA) purchased one ounce of methamphetamine from the defendant, Canales-Mendoza, in his home in exchange for $1,400.00, and was provided an additional ounce to be paid for at a later time. On May 7, 2014, the undercover agent paid the defendant $1,500.00 for that ounce, and purchased an additional ounce of methamphetamine for $1,400.00. On August 27, 2014, the undercover agent met with the defendant again, and requested an additional four ounces of methamphetamine. The defendant then showed the undercover agent approximately three to three and a half ounces of methamphetamine he did have, which prompted the agent to respond that he would leave in order to get additional funds to purchase the methamphetamine. Once the agent left the meeting with the defendant, DEA agents executed an arrest warrant on Canales-Mendoza and a search warrant on his place of business, where they confiscated approximately 137 grams of methamphetamine.
This case was investigated by the Drug Enforcement Administration, the Washington County Sheriff’s Office, and the Carroll County Sheriff’s Office. Assistant United States Attorneys Brandon Carter and Sydney Butler prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Multi-Convicted Felon Receives over 11 Years in PrisonRead the Press Release
Augusta, GA: Tyrone A. McDonald, 35, of Augusta, Georgia, was sentenced earlier this week by United States District Court Judge J. Randal Hall to a total of 137 months in prison: 77 months for trafficking narcotics and for possessing a firearm as a felon; and an additional 60 months for possessing a firearm in furtherance of that drug crime. After serving his combined 137-month prison sentence, McDonald will be on federal supervision for an additional 5 years. There is no parole in the federal system.
Evidence presented during McDonald’s jury trial revealed that on November 25, 2013, while searching for two fugitives in the Barton Village area, Richmond County Sheriff’s Office (RCSO) investigators located an assault rifle near three glass jars containing marijuana, methamphetamine, cocaine and scales hidden in the woods behind McDonald’s residence. Further examination revealed McDonald’s fingerprints on the firearm (later determined to be stolen) and several of the drug-related items. McDonald had two prior felony drug convictions.
McDonald’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting violent felons and drug dealers who illegally possess firearms and narcotics.
McDonald’s case was investigated by the Richmond County Sheriff’s Office and the ATF. Assistant United States Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201‑2547.
Monroe woman sentenced to 21 months in prison for stealing more than $119,000 in Social Security benefitsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Monroe woman was sentenced this week to 21 months in prison for receiving more than $119,000 in Social Security benefits intended for her father who had died years before.
Jessica Lewis, 43, of Monroe, was sentenced Monday by U.S. District Judge Robert G. James on one count of theft of government property. She was also sentenced to three years of supervised release and ordered to pay $119,258 restitution. According to evidence presented at the guilty plea, between June 3, 1998 and January 3, 2014, Lewis cashed and used her deceased father’s Social Security benefit checks. She also did not inform the Social Security Administration that her father had died and told office representatives that he was alive in order to keep receiving the benefit checks. The total amount taken was $119,258.
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Mesquite, Texas, Drug Trafficker Sentenced to 330 Months in Federal PrisonRead the Press Release
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DALLAS — A man who was found with a large amount of methamphetamine in his house in Mesquite, Texas, last year, was sentenced today by U.S. District Judge Sidney A. Fitzwater to a lengthy federal prison term, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jose Farias Lopez, 24, was sentenced to 330 months in federal prison. He pleaded guilty in October 2014 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance.
Farias Lopez was also ordered to forfeit $36,257 in cash proceeds from the distribution of the methamphetamine, two semi-automatic handguns and assorted ammunition, and a 2011 Mazda SUV.
According to documents filed in the case, Farias Lopez was at a house on April 23, 2014, when law enforcement officers executed a search warrant at the residence. Law enforcement located 875,922 gross grams (approximately 875 kilograms) of methamphetamine in the house. Farias Lopez admitted that his role in the conspiracy was to assist in the packaging and preparation of the methamphetamine for distribution. Farias Lopez admitted he conspired with co-defendant Lino Robles Alvarez, and others, and that it was their intention to distribute the methamphetamine at the residence. Robles Alvarez remains a fugitive.
According to the Drug Enforcement Administration (DEA), this seizure was one of the largest methamphetamine seizures ever in the United States.
The DEA, Dallas Police Department, Garland Police Department, and Mesquite Police Department investigated. Assistant U.S. Attorney George Leal prosecuted the case, and Assistant U.S. Attorney John De La Garza handled the forfeiture.
Maryland Man Pleads Guilty to Federal Offense for Illegally Entering White House GroundsRead the Press Release
WASHINGTON – Dominic Adesanya, 23, formerly of Bel Air, Md., pled guilty today to a federal charge stemming from an incident last fall in which he illegally entered the grounds of the White House, announced Acting U.S. Attorney Vincent H. Cohen, Jr., and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
Adesanya pled guilty in the U.S. District Court for the District of Columbia to a charge of entering or remaining in a restricted building or grounds. He has been in custody since his arrest on the White House grounds on Oct. 22, 2014. The charge carries a statutory maximum of a year in prison and a potential fine. Magistrate Judge Deborah A. Robinson scheduled sentencing for July 2, 2015. She agreed to release Adesanya with a number of conditions, including an order that he stay out of the District of Columbia except for court appearances, probation meetings, and medical appointments, and stay away from facilities under the protection of the U.S. Secret Service. However, Adesanya remains in custody because he is being held in two other cases filed last year in the Superior Court of the District of Columbia, including one that charges him with unlawful entry in a July 27, 2014 incident at the White House complex.
The plea agreement recommends that Adesanya be placed on one year of supervised release, with a number of conditions. He would be prohibited from entering the District of Columbia while he is under supervision, except for court appearances. He also would be required to participate in a psychiatric evaluation if deemed necessary by the Secret Service, and submit to interviews with the Secret Service to assist in determining potential current and future risks.
According to a statement of offense submitted to the Court, on Oct. 22, 2014, at about 7:15 p.m., Adesanya climbed over the White House fence. A member of the U.S. Secret Service’s Uniform Division repeatedly ordered him to stop and get off the fence. Adesanya did not comply, running toward the north doors of the White House. He failed to comply with orders to stop, and he was arrested after struggling with two dogs released by the Secret Service.
This case was investigated by the Secret Service’s Washington Field Office. It was prosecuted by Assistant U.S. Attorney David J. Mudd of the U.S. Attorney’s Office.
Martin County Resident Pleads Guilty to Manufacturing Hash Oil in His Apartment Laboratory and to Weapons ChargesRead the Press Release
A Martin County resident pled guilty yesterday to manufacturing hash oil by using a butane hash oil laboratory in his apartment and to related weapons charges.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sherriff, Martin County Sheriff’s Office (MCSO), and David Dyess, Chief, Stuart Police Department (SPD) made the announcement.
Daniel Paul Vranich, 31, of Lake Park, FL, pled guilty before Chief U.S. Magistrate Frank J. Lynch Jr., in Fort Pierce, to charges of endangering human life while illegally manufacturing a controlled substance, punishable by up to ten years in prison; possession of a firearm in furtherance of a drug trafficking crime, punishable by a consecutive five years in prison; and possession of a firearm by a convicted felon, punishable by up to ten years in prison.
According to the stipulated factual basis in support of the guilty plea, at approximately 4:00 a.m. on December 30, 2014, 911 Emergency Services received a call, regarding an explosion originating from an apartment in Stuart, Florida. In the apartment, the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue (MCFR), Stuart Fire Rescue (SFR) and State Fire Marshal’s Office discovered a smoldering fire and a large industrial vacuum drying oven with a timing device. DEA and Hazardous Material Unit (Hazmat) determined that the chemicals, equipment and other items were consistent of a Butane Hash Oil (BHO) laboratory. A witness identified Daniel Paul Vranich and his girlfriend, as the couple who had been living in the apartment for the past year, with their twin baby girls. SPD detectives found large glass cylinders containing approximately 20 pounds of marijuana, numerous empty butane cans, air pumps/compressors, a 1.9 cubic foot vacuum oven, wax paper with approximately 48 grams of BHO, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags. SPD detectives also found a loaded Sig Sauer .45 caliber pistol and numerous personal documents belonging to Vranich.
According to the stipulated factual basis in support of guilty plea, Vranich admitted that he was committing the drug trafficking crime of manufacturing and possessing with intent to distribute the controlled substances marijuana and hashish oil, and that the possession of the aforementioned Sig Sauer pistol was in furtherance of the defendant’s drug trafficking crime. Vranich also admitted in the factual basis that while manufacturing and attempting to manufacture hashish oil, he created a substantial risk of harm to human life.
Hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter through a chemical process using materials and equipment like those found in Vranich’s apartment. Because the butane vapor created during the process is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.
Mr. Ferrer commended the investigative efforts of the ATF, DEA, SPD, MCSO, MCFR, SFR and State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manchester Man Charged with Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT GENTILE, 78, of Manchester, was arrested today and charged by federal criminal complaint with firearm offenses.
GENTILE appeared today before U.S. Magistrate Judge Thomas P. Smith in Hartford and is detained pending a hearing that is scheduled for April 20 at 10:00 a.m.
As alleged in the criminal complaint, on March 2, 2015, GENTILE sold a .38 Colt Cobra revolver, which was loaded with five rounds of Smith & Wesson .38 Special ammunition, to an individual he knew to be a convicted felon
The complaint further alleges that GENTILE has been previously convicted of multiple felony offenses.
The complaint charges GENTILE with possession of ammunition by a previously convicted felon, and sale of a firearm to a known convicted felon. Both charges carry a maximum term of imprisonment of 10 years.
According to statements made in court, GENTILE is on supervised release from a prior federal conviction. If he is found to have violated the terms and conditions of his supervised release, he faces additional penalties.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI - Juan Carlos Seguinot-Martinez, 34, of Puerto Rico, pleaded guilty today in District Court on St. Croix to one count of Possession of Cocaine with Intent to Distribute, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Seguinot-Martinez admitted that in December 2014 while he was in St. Croix, he purchased at least 500 grams of cocaine and mailed it to Buffalo, New York. United States Customs and Border Protection agents intercepted the package. Seguinot-Martinez lives in Puerto Rico.
Seguinot-Martinez is facing a maximum sentence of 20 years in prison and a $1,000,000 fine. Sentencing is scheduled for August 19, 2015
The case was investigated by United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorneys Alphonso Andrews and Rami S. Badawy.
Man Pleads Guilty to Illegal Receipt of FirearmRead the Press Release
St. Croix, USVI - Gregory Williams, Jr., 24, of St. Croix, pleaded guilty today in District Court on St. Croix to one count of Illegal Receipt of a Firearm, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Williams admitted that on January 30, 2015, he received a package containing one .40 caliber Smith and Wesson pistol with an obliterated serial number. Williams admitted that the package was his and that he knew it contained a firearm. The package was mailed to St. Croix from Florida. United States Customs and Border Protection (CBP) intercepted the package.
Williams is facing a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for August 19, 2015.
The case was investigated by United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Rami S. Badawy.
Media AdvisoryRead the Press Release
United States Attorney Conner Eldridge to participate in Oklahoma City Bombing 20th Anniversary Commemoration Events and The National Summit on Homeland Security Law in Oklahoma City, OK
From Friday, April 17 - Sunday, April 19.
U. S. Attorney Eldridge chairs the Domestic Terrorism Working Group of United States Attorneys, which advises the Attorney General of the United States on Domestic Terrorism issues and, along with the FBI, and Department of Justice National Security Division, co-chairs the Domestic Terrorism Executive Committee, which works to ensure cooperation and collaboration on domestic terrorism issues and is comprised of 20 different federal law enforcement agencies and Department of Justice components.
U. S. Attorney Eldridge will be available for interviews by phone from today through Sunday or in person in Northwest Arkansas on Sunday afternoon. Please call the above phone # to coordinate interviews.
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Lower Brule Man Sentenced for Assault by Strangulation and SuffocationRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Assault by Strangulation and Suffocation was sentenced on April 6, 2015, by U.S. District Judge Roberto A. Lange.
Cameron LaRoche, age 37, was sentenced to 20 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
LaRoche was indicted by a federal grand jury on November 13, 2014. He pled guilty on January 21, 2015.
On or about August 21, 2014, LaRoche, who had been in a sporadic intimate relationship with the victim for the past 14 years, was at his aunt’s house drinking whiskey with others. They went inside the house and LaRoche began arguing with the victim. She went into the kitchen, where LaRoche followed her and started hitting her with closed fists on the face, head, and ear. The victim tried to defend herself by putting her arms up to protect her face. LaRoche continued to hit her a few more times with his closed fists, then stopped and apologized for what he had done to her.
LaRoche then told her he wanted to lay down with her, but the victim did not want to. LaRoche pushed her towards the basement door and forced her to go down, where he continued yelling, calling her names, and hitting her. LaRoche then threw the victim on a bed, and again hit her on the arms, head, and face. LaRoche then tried to smother her by laying on top of her, while pushing her head into the mattress. She turned her head to the right so she could breathe, while begging for her life. Moments later, LaRoche started hitting her again with his fist to her face. He then strangled her with his hands around her neck, and squeezed until the victim could not breathe.
The victim was seen by medical personnel and it was determined she possibly had a nondisplaced fracture of her wrist. She was put in a cast for several days, followed by a splint.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. LaRoche was immediately turned over to the custody of the U.S. Marshals Service.
Local Podiatrist Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – LAWRENCE B. IKEN, DPM, was sentenced to 12 months and one day in prison and ordered to pay restitution of $999,170 on charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken from 2006 through July 2014. His company, Iken LLC, was sentenced to two years of probation on the same charges. As part of his plea in January, Dr. Iken agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the false health care claims.
Additionally, as part of a civil settlement, Dr. Iken and Iken LLC paid the United States $748,279 to resolve allegations, brought under the federal False Claims Act, that Dr. Iken and Iken LLC submitted false claims for payment to Medicare and Missouri Medicaid. The United States alleged that Dr. Iken and Iken LLC submitted false claims for payment for podiatric services that were not provided.
According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, MO. Dr. Iken is a sole practitioner who provided podiatry services to patients at his Manchester and at his Creve Coeur offices and at various nursing homes in the St. Louis area. In addition to his office practice, Dr. Iken is an independent contractor for Preferred Podiatry Group, Inc. (PPG). According to its website, PPG provides podiatric care to residents in nursing homes and other long-term care facilities in Missouri and five other states. As a PPG contractor, Dr. Iken provided services to nursing home residents on Wednesdays and Thursdays. With his plea, Dr. Iken admitted that on thousands of occasions, he billed Medicare, Medicaid and private insurance companies for the incision and drainage of abscesses and hematomas, when he actually only clipped the toenails of the patients.
Iken, of Chesterfield, Missouri, and his company each pled guilty in January to one felony count of healthcare fraud. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the U.S. Department of Health & Human Services-Office of Inspector General, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorneys Dorothy McMurtry and Suzanne Moore handled the case for the U.S. Attorney’s Office.
Leader of A $23 Million Medicare Fraud Conspiracy Sentenced to 10 Years in PrisonRead the Press Release
CHICAGO—A Chicago man was sentenced today to a 120 month term of imprisonment for taking control of two Chicago-area home health companies and using them to bilk Medicare out of more than $20 million. JACINTO “JOHN” GABRIEL, JR., 48, has been in custody since February 2014, when he entered a guilty plea to charges of conspiracy to commit health care fraud and tax evasion.
In sentencing Gabriel, U.S. District Judge Charles Norgle ordered him to pay $23.3 million in restitution to the Medicare program and $1.5 million to the Internal Revenue Service.
According to sentencing papers filed by the government, Gabriel fraudulently obtained confidential background information of hundreds of Medicare beneficiaries and then used that information to sign them up as patients of Perpetual Home Health, Inc. and Legacy Home Healthcare Services, companies that he controlled. “Gabriel used elderly patients as commodities to bill Medicare. Patients were intentionally misdiagnosed with medical conditions that they did not have, and then used to bill Medicare for treatment that they did not need,” the government wrote in its sentencing memorandum.
Gabriel was charged with eleven other defendants, including doctors and company employees who were enlisted to help implement the scheme. In pleading guilty to the charges, Gabriel admitted to directing company staff to alter and create patient records and doctor’s orders to support fraudulent Medicare claims; to make payments to doctors and others for referring patients and signing doctor’s orders; and to divert proceeds of the fraud scheme to him through friends, associates, and shell companies.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation’s Chicago office, Lamont Pugh III, Special Agent-in-Charge of the Chicago regional office of the U.S. Department of Health and Human Service’s Office of Inspector General, and Stephen Boyd, Acting Special Agent-in-Charge of the Internal Revenue Service’s Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorneys Brian Havey, Raj Laud, and Sam Cole.
Laredoan Arrested for Online Solicitation of A MinorRead the Press Release
LAREDO, Texas - Fernando Hernandez-Rodas, 24, has been arrested on charges of coercion or enticement of a minor, announced U.S. Attorney Kenneth Magidson. Hernandez-Rodas is a Honduran National who resided in Laredo legally under the deferred action for childhood arrivals (Dream Act).
Hernandez-Rodas was arrested last night upon the filing of a criminal complaint. He is expected to make his initial appearance Monday April 20, 2015 before U.S. Magistrate Judge J. Scott Hacker in Laredo.
“This case, once again, illustrates the true value of the Laredo Child Exploitation Task Force in bringing together multiple law enforcement agencies with the goal of protecting the children of our community,” said Deputy Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Laredo. “We’re proud of the relationships we’ve forged with our law enforcement partners.”
The criminal complaint alleges Hernandez-Rodas was communicating with a person he believed to be a 14-year-old girl. In reality, he was actually talking to an undercover agent. During the course of the communications, Hernandez-Rodas made arrangements to meet and engage in sexual activity with the “young girl.”
He was apprehended as he arrived at the designated meeting place.
“We would like to remind parents that it’s extremely important to keep a watchful eye on children’s online activity,” said Webb County Sheriff Martin Cuellar. “In this case, luckily, the person whom the suspect thought he was speaking with was an undercover agent.”
“Law enforcement is dedicated to protecting the future of our community - the children of Laredo,” said Chief Ray Garner of the Laredo Police Department. “Those that are suspected of preying on our children are being stopped by a proactive child predator program manned by federal, city and county law enforcement. The Laredo Police Department is in support of this program and we thank the men and women that protect our children each day.”
The arrest of Hernandez-Rodas was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
The prosecution is being 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."
The investigation was led by HSI with assistance from the Webb County Sheriff's Office Cyber Crime Unit and the Laredo Police Department. Assistant U.S. Attorney Sarah Ellison is prosecuting the case.
Lake Mary Man Convicted of Attempting to Entice Minors for SexRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Dennis Michael Wilkerson (40, Lake Mary) guilty of two counts of attempting to persuade, induce, and entice a minor to engage in illicit sexual conduct. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison for each count. Wilkerson has been ordered detained pending his sentencing hearing, which will be scheduled at a later date.
According to evidence presented during the trial, on October 22, 2014, an FBI Task Force Officer (TFO), working in an undercover capacity, posted an advertisement on Craigslist. Wilkerson responded by e-mail, inquiring about sexual activity with a 12-year-old “girl.” After a series of communications with the undercover officer, Wilkerson agreed to pay $50 to receive oral sex from the “girl.” A few days later, Wilkerson traveled to Seminole County to meet with the minor. He was subsequently arrested. Agents recovered $53 from Wilkerson’s pocket after his arrest. He acknowledged that the money was to be used as payment for the sex.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kirtland Man Pleads Guilty to Second Degree Murder Charge Arising from Kidnapping and Murder of A Navajo Woman and an Assault Charge in A Separate CaseRead the Press Release
ALBUQUERQUE – A Navajo man who resides in Kirtand, N.M., entered guilty pleas today in federal court in Albuquerque, N.M., in two cases. Patrick Benally, 26, pled guilty to a second degree murder charge arising out of the kidnapping and murder of a Navajo woman. He also entered a guilty plea to an assault charge in a separate, unrelated case.
Patrick Benally and his four co-defendants, Justin Benally, 26, of Farmington, N.M., LaSheena Jacquez, 27, of Kirtland, Scott Thompson, 28 of Farmington, and Mariah Benally, 22, of Kirtland, all enrolled members of the Navajo Nation, were indicted in Jan. 2014, on criminal charges arising from the kidnapping and murder of a 28-year-old Navajo woman on Oct. 23, 2013. The indictment charged all five defendants with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Justin Benally, Mariah Benally, Jacquez and Thompson with harboring Patrick Benally to prevent his arrest on charges arising out of an assault that was unrelated to the kidnapping and murder case. The crimes charged in the indictment occurred on the Navajo Indian Reservation within San Juan County, N.M. All five defendants previously had been arrested in Dec. 2013, on a criminal complaint filed after law enforcement authorities received information that the victim, who was missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
All four of Benally’s co-defendants have entered guilty pleas to second degree murder charges. Justin Benally, Mariah Benally and Jacquez pled guilty in Oct. and Nov. 2014, and Thompson entered a guilty plea in March 2015. All four have been in federal custody since they were arrested and remain detained pending their sentencing hearings, which have yet to be scheduled. Each faces a maximum statutory penalty of life imprisonment.
During today’s plea hearing, Patrick Benally pleaded guilty to a felony information charging him with second degree murder. In his plea agreement, Benally admitted that he caused the death of the victim by aiding and abetting others in the death of Jane Doe by preventing a witness from the leaving the scene of the murder, preventing the same witness from providing aid to Jane Doe, and preventing the same witness from reporting the crime by intimidating her at the scene.
Patrick Benally also pled guilty to an assault with a dangerous weapon charge in a separate case. In Oct. 2013, Patrick Benally was charged by criminal complaint with assault and firearms charges arising out of an Oct. 10, 2015 incident during which he shot a different Navajo woman in the face. Patrick Benally subsequently was indicted in this case in Jan. 2014, and was charged with assault with a dangerous weapon, assault resulting in serious bodily injury, and discharging a firearm during a crime of violence. According to court filings, Patrick Benally shot the victim in the face during an argument in the victim’s home in Fruitland, N.M.
Under the terms of his plea agreement, Patrick Benally will be sentenced to a federal prison term within the range of 18 to 21 years followed by a period of supervised release to be determined by the court. He remains detained pending a sentencing hearing, which has yet to be scheduled.
The kidnapping and murder case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. The assault case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting both cases.
These cases were brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
KC Man Sentenced to 18 Years for Burger King RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for the robbery of a Raytown, Mo., restaurant in a series of incidents that began with a carjacking and ended with him pulling a gun and being shot by a police officer.
Christopher L. Rice, 26, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 18 years and four months in federal prison without parole; the court sentenced Rice to 16 years and four months on the robbery conviction, revoked Rice’s supervised release on a prior bank robbery conviction and sentenced him to a consecutive prison term of two years. Rice was sentenced as a career offender due to his three prior convictions in state court for robbery and the federal conviction for bank robbery.
On Dec. 18, 2014, Rice pleaded guilty to the robbery of a Burger King restaurant in Raytown, Mo. According to court documents, Rice carjacked a Toyota Camry at gunpoint earlier that day and drove the stolen vehicle to Burger King. Rice approached the cashier, told her that he had a gun and ordered her to open the register. The cashier gave Rice $177 from the register and he left the restaurant.
A Raytown police detective, listening to reports of the armed robbery on his radio, saw a vehicle matching the description of the car used in the robbery and followed it until Rice parked in the driveway of a residence. Rice got out of the car and began walking away. The detective noticed that Rice had numerous tattoos, which were part of the description of the suspect in the Burger King robbery, so he told Rice to stop. During their conversation, Rice began to pull away and the detective felt what could be a gun under his clothes. The detective pulled his weapon and ordered Rice to get on the ground.
Rice instead began to pull a loaded Taurus .40-caliber pistol out of his waistband and the detective began shooting at Rice. Rice began running away, still carrying the pistol. The detective pursued Rice and saw him fall on the street. As he approached Rice, the detective told him to drop his gun, and Rice tossed it to one side. Rice was taken into custody and transported to a local hospital with three gunshot wounds.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Raytown, Mo., Police Department.
Judge Issues Ruling Denying Sierra Pacific’s Motion to Set Aside the Settlement in the Moonlight Fire CaseRead the Press Release
SACRAMENTO, Calif. — United States District Judge William B. Shubb issued a detailed, 63-page order today denying Sierra Pacific Industries’ motion to set aside the settlement of the Moonlight Fire case and emphatically rejecting each and every allegation by Sierra Pacific’s counsel that there was fraud on the court.
After an exhaustive review of the law and the record of this case, Judge Shubb concluded that the defendants “have failed to identify even a single instance of fraud on the court, certainly none on the part of any attorney for the government. They repeatedly argue that fraud on the court can be found by considering the totality of the allegations. Here, the whole can be no greater than the sum of its parts. Stripped of all its bluster, defendants’ motion is wholly devoid of any substance.” [Order at page 63.]
“I have repeatedly stated that a full examination of the actual record in this case would demonstrate that the misconduct claims made by the attorneys for Sierra Pacific were bogus, and I am very gratified by the Court’s thorough and thoughtful ruling,” said United States Attorney Benjamin B. Wagner. “Sierra Pacific’s reckless accusations have been broadcast in open court and in numerous media stories throughout the country. It is not an inconsequential thing to besmirch the integrity of dedicated public servants. Assistant United States Attorneys David Shelledy and Kelli Taylor provided skilled representation to the United States in holding the Sierra Pacific defendants responsible for the incredible damage they caused, and they provided that representation in accordance with the high ethical standards regularly demanded of Department of Justice employees. I am thankful for their service, and proud to be their colleague.”
The Moonlight Fire ignited on September 3, 2007, on private forest land in Plumas County, California, and raged for more than two weeks, consuming about 65,000 acres of land, including more than 46,000 acres of federal public lands. A jury trial in the case before U.S. District Judge Kimberly J. Mueller had been scheduled to begin on July 9, 2012 in Sacramento, but the parties entered into a settlement shortly before trial. At an estimated value of at least $122,500,000, the settlement was the largest recovery ever received by the United States for damages caused by a forest fire. In October 2014, Sierra Pacific filed a motion to set aside the judgment for damages resulting from the Moonlight Fire, claiming there had been a fraud on the court.
In rejecting each and every claim by Sierra Pacific’s attorneys, Judge Shubb noted that they were aware of almost all of the facts, which they now claim show fraud-on-the-court before they decided to settle the case. As the Court put it, “defendants made the calculated decision on the eve of trial to settle the case knowing everything that they now claim amounts to fraud on the court.” [Order at page 27.] Moreover, regardless of when the facts became known, the Court found that each of Sierra Pacific’s claims was without merit.
As to arguments that an Assistant U.S. Attorney facilitated perjury by an investigator in a deposition when he testified about what the defendants characterized as a “white flag” near the origin location, the Judge ruled that “[w]hen the record is examined there is no substance whatsoever to defendants’ contention.” [Order at page 34.] As to defendants’ suggestion that the removal of former Assistant U.S. Attorney Robert Wright from the Moonlight Fire case in early 2010 “tends to show” some sort of fraudulent intent by the government, Judge Shubb wrote, “[i]t neither shows nor suggests any such thing.” [Order at page 61.] As to claims relating to a state fund administered by CalFire, Judge Shubb observed that the defendants do not even allege the federal government had the documents at issue, and the state audit report revealing details of the fund did not even exist prior to the settlement of the Moonlight Fire case.
Judge Shubb noted that the defendants “have been represented by numerous high‑priced attorneys throughout this litigation,” and he chided some of those attorneys several times in the order for reckless or disingenuous arguments. He noted in a footnote that the attorneys “may be playing loose with their characterizations of the deposition testimony” that they cited. [Order at page 37, fn 10.] The court described another defense claim as “misleading” [Order at page 48], and stated that he was concerned “that defendants would so flippantly” make one representation to the court in arguing this motion, when it argued precisely the opposite to the court during the pre-settlement litigation of this case. [Order at pages 58-59.]
In its brief filed in February, the Government outlined instances in which the defendants’ attorneys manipulated the excerpts of record to support defense claims of witness perjury by excising portions of deposition transcripts that contradicted these claims.
Docket #: 2:09-cv-2445
Jackson County Property Owner Sentenced for Violating Clean Water ActRead the Press Release
TOPEKA, KAN. – A man who owns property in Jackson County, Kan., was sentenced Friday for violating the federal Clean Water Act, U.S. Attorney Barry Grissom said.
Rodney Heinen, 38, Dawson, Neb., was fined $20,000 and ordered to complete restoration of two properties in Jackson County pursuant to a professional restoration plan that estimated the cost at more than $500,000.
Heinen pleaded guilty to one count of discharging pollutants into a stream without a permit. In his plea, he admitted he caused earthen fill and wood debris to be placed in streams flowing through properties he owns in Jackson County.
A regulatory specialist with the Corps of Engineers discovered the violations on one of Heinen’s properties on Feb. 2, 2012. Heinen refused to allow the Corps of Engineers access to the property to make an environmental assessment. The violation affected several unnamed tributaries to Straight Creek, which drains into the Delaware River, which is classified as a Traditionally Navigable Water.
In 2013, the Corps of Engineers found a similar violation on another property in Jackson County owned by Heinen. The violation affected two unnamed tributaries to North Cedar Creek, which drains into the Delaware River.
Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Jackson Woman Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Jackson, Miss – Pennie Frazier, 37, of Jackson, was sentenced on April 16, 2015 by U.S. District Judge Daniel P. Jordan III to four years and three months in federal prison followed by three years of supervised release for filing false federal income tax claims with the IRS, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway and Acting Special Agent in Charge Jerome R. McDuffie with IRS - Criminal Investigation.
Frazier filed false tax returns from March 2009 until February 2011. As a result of the false returns she filed, the IRS paid out $1,373,790.77 in fraudulent income tax refunds. Frazier was ordered to repay that amount in restitution.
This case was investigated by the Federal Bureau of Investigation and IRS - Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Scott Gilbert.
Individual Arrested on Federal Charges for Making Multiple Bomb and Threats of Violence at Various SchoolsRead the Press Release
An individual was arrested and charged in a federal complaint last night with sending threatening communications by interstate commerce, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The charges resulted from an investigation into multiple bomb threats and threats of extreme violence at several schools in the Nashville area and in the Northeast.
According to the federal complaint, beginning on March 16, 2015 and continuing through today, approximately 16 schools were the targets of bomb threats or threats of violence. The schools targeted in the Nashville area include, Cane Ridge High School; John Overton High School; Antioch High School; Hume-Fogg High School; Strattford High School; and McGavock High School. High SchoolH Also targeted by the threats were schools in Brockton, Massachusetts; Whitman, Massachusetts; Burke, Virginia and Pittsburg, Pennsylvania.
This investigation is being conducted by the FBI; the Metropolitan Nashville Police Department and the Fairfax County, Virginia Police Department. The case is being prosecuted by Assistant U.S. Attorney Van Vincent.
The defendant is a juvenile and federal law precludes the dissemination of additional information. A criminal complaint is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law.
Indictment Alleges Illegal Reentry After DeportationRead the Press Release
Doodnath Ramnath, a/k/a “Robert Kramer,” 46, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 20, 2014, Ramnath, an alien, and native and citizen of Trinidad and Tobago, was found in the United States after having been deported from the United States on or about March 10, 2010.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Elizabeth F. Abrams.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illinois Man Sentenced for Interference with Flight Crew MembersRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 17, 2015, Joshua Carl Lee Suggs, age 24 of Oswego, Illinois, was sentenced for Interference with Flight Crew Members. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Suggs to the custody of the United States Bureau of Prisons for 6 months and 23 days, which is time Suggs has already served. Suggs will immediately begin a three (3) year term of supervised release. Suggs was also ordered to pay restitution to Southwest Airlines in the amount of $4,400.00.
An investigation conducted by the Omaha Airport Authority Police Department, Transportation Security Administration, and Federal Bureau of Investigation determined that on April 13, 2014, Southwest Airlines flight 722 departed Chicago Midway International Airport to Sacramento International Airport. Approximately one hour after departure, Suggs approached a flight attendant at which time the flight attendant informed Suggs that the captain had turned on the “fasten seat belts” sign, and that the passengers and crew needed to take their seats. Suggs stated that he wanted to look out the window. After being asked to take his seat a second time, Suggs pushed past the flight attendant and attempted to open the exterior door of the aircraft, located in the aft galley.
As Suggs attempted to open the aircraft door, a flight attendant stepped between Suggs and the door and called for help. A number of passengers exited their seats and subdued Suggs. During the altercation, according to a flight attendant, passengers were heard "screaming in terror" yelling phrases such as, "he is trying to open the door" and "we’re going to die."
As a result of Suggs’ attempt to open the aircraft door, the Captain contacted the Federal Aviation Administration and declared an emergency, subsequently requesting to divert the flight to Omaha’s Eppley Airfield. The flight was diverted to Omaha where Suggs was taken into custody by the Omaha Airport Authority Police Department.
The case was investigated by the Omaha Airport Authority Police Department, Transportation Security Administration, and Federal Bureau of Investigation.
Illegal Alien Sentenced to Fourteen Months in Prison for Illegally Reentering the United States After Having Been Deported, Using Fraudulent Identification Documents and Using Another’s Social Security NumberRead the Press Release
A man who illegally returned to the United States and used false documents to obtain employment was sentenced today to fourteen months in federal prison.
Roberto Cruz-Rivera, age 37, an illegal alien living in Clarion, Iowa, received the prison term after a January 12, 2015, guilty plea to one count of unlawful use of identification documents, one count of misuse of a social security number, and illegal reentry into the United States by a felon.
The evidence showed that Cruz-Rivera was deported from the United States in July 2009 after having been convicted in Iowa of forgery, a felony offense. The forgery conviction involved the possession of two fraudulent permanent resident cards and a fraudulent social security card using a false name. In September 2009, Cruz-Rivera was convicted in Texas of illegal entry into the United States and again deported on October 5, 2009. Cruz-Rivera was apprehended upon illegally reentering the United States three more times and was again deported on October 9 & 10, 2009, and again on the 15th. After that date, Cruz-Rivera illegally reentered the United States and in April 2010, Cruz-Rivera used a fraudulent permanent resident card in his name and a social security number to gain employment in Iowa. However, the account numbers on the permanent resident card and social security account were assigned to someone else.
Cruz-Rivera was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cruz-Rivera was sentenced to 14 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cruz-Rivera 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 Daniel C. Tvedt and investigated by Homeland Security Investigations and Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-136-LRR.
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Genovese Organized Crime Family Soldier Sentenced to 41 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A Kenilworth, New Jersey, man was sentenced today to 41 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Stephen Depiro, 59, a Genovese family soldier, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count One of the second superseding indictment charging him with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, Depiro and two other Genovese family associates – Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president; and Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. Cernadas and LaGrasso admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Depiro also admitted to managing an illegal sports betting business.
In addition to the prison term, Judge Cecchi sentenced Depiro to serve three years of supervised release. Cernadas was previously sentenced to probation and LaGrasso was sentenced to 28 months in prison.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
Defense counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Genovese Organized Crime Family Soldier Sentenced to 41 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A Kenilworth, New Jersey, man was sentenced today to 41 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Stephen Depiro, 59, a Genovese family soldier, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count One of the second superseding indictment charging him with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, Depiro and two other Genovese family associates – Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president; and Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. Cernadas and LaGrasso admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Depiro also admitted to managing an illegal sports betting business.
In addition to the prison term, Judge Cecchi sentenced Depiro to serve three years of supervised release. Cernadas was previously sentenced to probation and LaGrasso was sentenced to 28 months in prison.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Four Companies and Five Individuals Indicted for Illegally Exporting Technology to IranRead the Press Release
Seven Foreign Nationals and Companies Placed on Department of Commerce’s Entity List
A 24-count indictment has been unsealed today charging four corporations and five individuals with facilitating the illegal export of high-tech microelectronics, uninterruptible power supplies and other commodities to Iran in violation of the International Emergency Economic Powers Act (IEEPA).
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Assistant Director Randall Coleman of the FBI’s Counterintelligence Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Under Secretary of Commerce Eric L. Hirschhorn of the Department of Commerce, Special Agent in Charge Tracy E. Martin of the Department of Commerce’s Office of Export Enforcement’s Dallas Field Office and Special Agent in Charge Lucy Cruz of the IRS’ Houston Field Office.
“The nine defendants charged in the indictment allegedly circumvented U.S. sanctions and illegally exported controlled microelectronics to Iran,” said Assistant Attorney General Carlin. “Violations of the International Emergency Economic Powers Act not only can undercut the impact of U.S sanctions, but can also serve to undermine U.S. foreign policy and adversely affect national security. I want to thank all those in law enforcement whose tireless efforts led to these charges.”
“The prevention, investigation and prosecution of the illegal export of critical electronic system is one of the highest priorities of the Department of Justice,” said U.S. Attorney Magidson. “This indictment is evidence of our commitment to ensuring that our laws are enforced and our national security is protected.”
“The proliferation of sensitive U.S. technologies to Iran and the direct support to their military and weapons programs remains a clear threat to U.S. national security,” said Coleman. “The FBI and our interagency partners will continue to identify, penetrate and neutralize proliferation efforts aimed at circumventing our export control laws and economic sanctions to illegally obtain sensitive technologies.”
“IRS-CI will tenaciously pursue individuals who violate international emergency economic powers statutes,” said Special Agent in Charge Cruz. “Our role is to unravel the often concealed or disguised financial crimes that threaten our national security.”
“The Office of Export Enforcement and our law enforcement partners will continue to investigate, pursue and dismantle these procurement networks that violate U.S. export control laws whether they operate within our borders or anywhere else in the world,” said Special Agent in Charge Martin.
The indictment alleges Houston-based company Smart Power Systems Inc. (SPS); Bahram Mechanic, 69, and Tooraj Faridi, 46, both of Houston; and Khosrow Afghahi, 71, of Los Angeles, were all members of an Iranian procurement network operating in the United States. Also charged as part of the scheme are Arthur Shyu, and the Hosoda Taiwan Limited Corporation in Taiwan; Matin Sadeghi, 54, and Golsad Istanbul Trading Ltd. in Turkey; and the Faratel Corporation, co-owned by Mechanic and Afghahi in Iran.
The indictment was returned under seal on April16, 2015, and unsealed as Mechanic and Faridi made their initial appearances before U.S. Magistrate Judge Francis H. Stacy of the Southern District of Texas. Afghahi was taken into custody and will make an initial appearance in the Central District of California. Sadeghi and Shyu are believed to be out of the country and warrants remain outstanding for their arrests. Anyone with information is asked to contact the nearest embassy or local FBI office. They may also contact the FBI’s Houston Office at 713-693-5000.
In conjunction with the unsealing of these charges, the Department of Commerce is designating seven foreign nationals and companies, adding them to its Bureau of Industry and Security Entity List. The indictment alleges these individuals and companies received, transshipped or otherwise facilitated the illegal export of controlled commodities by the defendants. Designation on the Entity List imposes a license requirement before any commodities can be exported from the United States to these persons or companies and establishes a presumption that no such license will be granted.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the Export Administration Regulations (EAR) unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism or other activities contrary to U.S. national security or foreign policy interests. BIS can add to the Entity List a foreign party, such as an individual, business, research institution or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, re-export or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial.
According to the indictment, Mechanic and Afghahi are the co-owners of Iran-based Faratel and its Houston-based sister company SPS. Faratel designs and builds uninterruptible power supplies for various Iranian entities, including Iranian government agencies such as the Iranian Ministry of Defense, the Atomic Energy Organization of Iran, and the Iranian Centrifuge Technology Company. SPS designs and manufactures uninterruptible power supplies in cooperation with Faratel. Faridi currently serves as a vice president of SPS. Shyu is a senior manager at the Hosoda Tawain Limited Corporation, a trading company located in Taiwan, while Sadeghi is an employee of Golsad Istanbul Trading, a shipping company located in Turkey.
The indictment alleges that between approximately July 2010 and the present, Mechanic and the others engaged in a conspiracy to obtain various commodities, including controlled United States-origin microelectronics. They then allegedly exported these to Iran, while carefully evading the government licensing system set up to control such exports. The microelectronics shipped to Iran allegedly included microcontrollers and digital signal processors. According to the indictment, these commodities have various applications and are frequently used in a wide range of military systems, including surface-air and cruise missiles. Between July 2010 and the present, Mechanic’s network allegedly sent at least $24 million worth of commodities to Iran.
According to court documents, Mechanic, assisted by Afghahi and Faridi, regularly received lists of commodities, including United States-origin microelectronics, sought by Faratel in Iran. Mechanic would approve these orders and then send the orders to Shyu in Taiwan, according to the indictment. Shyu would allegedly purchase the commodities utilizing Hosoda Taiwan Limited and then ship the commodities to Turkey, where Sadeghi would act as a false buyer via his company, Golsad Istanbul Trading Ltd. The indictment further alleges that Sadeghi would receive the commodities from Shyu and then ship them to Faratel in Iran. Mechanic required his co-conspirators to notify him and obtain his approval for each of the transactions completed by the network, according to the allegations.
The individual defendants each face up to 20 years in federal prison, while the corporate defendants face fines of up to $1 million for each of the IEEPA counts, upon conviction.
Mechanic, Afghahi and Shyu are also charged with conspiring to commit money laundering and substantive money laundering violations, each charge carries a maximum potential term of imprisonment of 20 years. Mechanic further faces a charge of willful failure to file foreign bank and financial accounts for which he faces up to five years in federal prison. The charges also carry the possibility of substantial fines upon conviction.
The government’s case is being prosecuted by Assistant U.S. Attorneys S. Mark Mcintyre and Craig Feazel of the Southern District of Texas, as well as Trial Attorneys Casey Arrowood and Matt Walczewski of the Justice Department’s National Security Division.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictment merely contains allegations of criminal activity.
IEEPA Indictment
Former Teamster Leader Sentenced for Extorting Boston BusinessesRead the Press Release
BOSTON – Two former members of a powerful Boston Teamsters local, including its principal officer and a member who had been convicted of a prior felony, were sentenced today on charges of extortion and racketeering, including charges that they extorted local non-profits.
John Perry, 62, of Woburn was sentenced to 30 months in prison, a $12,500 fine and one year of supervised release following his conviction on multiple felony counts after a seven week trial. His co-defendant, Joseph “Jo Jo” Burhoe, 46, of Braintree, who was also convicted of multiple felony counts at the same trial, was sentenced to 70 months in prison and three years of supervised release. Both were sentenced by Judge Denise Jefferson Casper who scheduled a restitution hearing for May 22. Several members of former Local 82 gave victim impact statements at the sentencing hearing
Perry, the former Secretary/Treasurer of Boston Teamster’s Local 82, and Burhoe, a member who acted as Perry’s enforcer, were convicted of extorting non-profits and other non-union businesses in Boston, as well as extorting other union members of their wages and benefits. Among the extortion victims were Brigham and Women’s Hospital, Massachusetts General Hospital, and the United States Green Building Council. Since the time of the crimes, Local 82 has been merged with Teamsters Local 25. Those Locals load and unload trucks at major business and entertainment venues in downtown Boston.
Perry, Director of Trade Shows and Convention Centers for the International Brotherhood of Teamsters Local 82, and Burhoe, a convicted felon who was a member of the union, worked in the trade show and moving industries. Since 2007 the defendants engaged in illegal activities in order to generate money for themselves, their friends, and family members. The defendants extorted various entities throughout Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82.
The defendants threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to the defendants’ demand for unwanted, unnecessary and superfluous jobs for themselves, their friends and family. Payment was demanded for these unnecessary jobs. They also used threats of physical and economic harm to deprive members of Local 82 of their legally-protected rights as union members.
Two other defendants, James Deamicis, a/k/a “Jimmy the Bull,” 51, of Quincy, and Thomas Flaherty, 50, of Braintree were acquitted during the trial.
U.S. Attorney Ortiz; Inspector General Scott S. Dahl; Mark J. Neylon, District Director, Office of Labor-Management Standards, U.S. Department of Labor; Susan A. Hensley, Regional Director of The Employee Benefits Security Administration, U.S. Department of Labor; and Commissioner Evans made the announcement today. The case is being prosecuted by Laura J. Kaplan and Susan G. Winkler of Ortiz’s Organized Crime and Drug Task Force Unit, respectively.
Former Store Owner Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Charles Fitzgerald, 39, of Rochester, NY, who was convicted of possession of a controlled substance with intent to distribute, was sentenced to 30 months in prison and ordered to forfeit $771,109 by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that the defendant admitted that on July 25, 2012, he possessed with intent to distribute various synthetic controlled substances and synthetic controlled substance analogues at both his residence in Rochester and at one of the stores that he owned, the 420 Emporium located in Batavia, NY. As part of the plea agreement, Fitzgerald will forfeit $771,109 in United States currency that was seized during the execution of a search warrant at his residence at 221 West Hills Estates on July 25, 2012.
Co-defendant Amber Snover was also convicted and will be sentenced on June 23, 2015. Three employees of Fitzgerald’s, who worked at the 420 Emporium stores located in Batavia and Henrietta, NY, have also been convicted in this case and are awaiting sentencing.
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause.
Former Puerto Rico Police Officer Sentenced for Making False Statements to FBI During Civil Rights InvestigationRead the Press Release
Former Puerto Rico Police Officer Miguel Negron Vazquez was sentenced today to serve 12 months and one day in prison for making a false statement to a Special Agent of the Federal Bureau of Investigation (FBI) during a federal investigation into civil rights violations related to the fatal beating of Jose Luis Irizarry Perez, 19, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
Negron Vazquez pleaded guilty to falsely telling the FBI that two officers, who later pleaded guilty to unnecessarily striking Irizarry Perez with their batons, never approached or interacted with the victim during the incident. In total, six Puerto Rico police officers have pleaded guilty for their roles in the beating and subsequent obstruction of the civil rights investigation, and two of those officers are still awaiting sentencing. According to documents filed in connection with the guilty pleas, two former Puerto Rico police officers violated the constitutional rights of Irizarry Perez by striking him with their police batons while another former police officer physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by two years of supervised release. During the two-year term, the defendant will be under federal supervision, and risks additional prison time should he violate any terms of his supervised release.
“Lying to the FBI or concealing information during the course of a federal civil rights investigation undermines the public’s trust in the criminal justice system and will not be tolerated,” said Principal Deputy Assistant Attorney General Gupta. “The department will aggressively investigate and prosecute those who seek to cover up or obstruct a federal investigation.”
“Today's sentence affirms that law enforcement officers are not above the very laws they are sworn to uphold,” said U.S. Attorney Rodriguez-Vélez. “The defendant’s conduct undermined law enforcement’s expectation of honesty from public officials and those who desire to serve.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.
Former Executive Heads to Federal Prison for Defrauding Shipping CompanyRead the Press Release
HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has been ordered to federal prison following her conviction of 10 counts of wire fraud in connection with defrauding her former company, announced United States Attorney Kenneth Magidson. Creel, of New York City, N.Y., pleaded guilty Feb. 6, 2015.
Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, handed Creel a 60-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $4,684,860.51 in restitution. In handing down the sentence, Judge Werlein noted that her claim to want to make repayment “rang hollow” because she had been on release for years and had not paid one single dollar back yet.
As part of her guilty plea, Creel, 43, admitted that from June 2003 through August 2009, she was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. Creel also admitted she had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.
Creel admitted that from at least June 2003 through approximately August 2009, she defrauded Wilhelmsen by embezzling money from the company’s bank accounts. Creel used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own. Specifically, Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors. Creel entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account.
Previously released on bond, Creel was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Former Buffalo Employee Pleads Guilty to Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Tasha Collier, 38, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr., to theft and conversion concerning programs receiving federal funds. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorney Joseph M. Guerra, who is handling the case, stated that the defendant was employed as a clerk in the Licensing Department of the City of Buffalo between July 2013 and August 25, 2014. As part of her duties as a clerk, Collier was responsible for collecting payments in cash and by check for licenses issued by the City of Buffalo. Between September 2013 and August 2014, the defendant stole approximately $22,000 in cash, funds that were supposed to be remitted to the City Treasury Department.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for July 17, 2015 at 11:00 a.m. before Chief Judge Geraci.Florida Man Sentenced to 30 Months in Jail and 18 Months Home Confinement for Conspiracy to Distribute OxycodoneRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Michael Serritella, 60, of Palm Harbor, Florida, was sentenced by United States District Judge Nancy Torresen to 30 months in prison to be followed by 3 years of supervised release for conspiracy to distribute oxycodone. The Court imposed an 18 month term of home confinement as one of the conditions of supervised release.
According to court records, on June 13, 2013, law enforcement personnel in Maine intercepted a package addressed to a person in Harrison. Law enforcement obtained a search warrant to search the package and the ensuing search revealed approximately 345 oxycodone pills and a note addressed to the person in Harrison stating the pills would cost $4,000. Law enforcement subsequently arrested the person in Harrison after he arrived at the post office and took possession of the package. Law enforcement personnel subsequently recovered photographic evidence from a post office in Florida that showed the seized package had been mailed by Serritella.
Further investigation revealed that from September 2012, and continuing through May 2013, Serritella mailed an additional twenty-two (22) packages containing oxycodone pills to the person in Harrison, Maine. The person would then distribute the pills in the Harrison area and send payment to Serritella in Florida.
United States Attorney Delahanty said that this operation was successful because of the cooperation of federal and state law enforcement agencies in Maine and Florida. The case was investigated by the United States Postal Service, the Drug Enforcement Administration (DEA), and the Maine Drug Enforcement Agency (MDEA).
Five Sentenced in Tax Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – John David Castleberry, 64, and Teresa Haggerty, 61, both formerly of Pensacola Beach, Florida, Mark Douglas Stokes, 61, and Melinda K. Stokes, 60, of Colleyville, Texas, and Christopher Stephen Baum, 57, of Arlington, Texas, were sentenced to federal prison yesterday by Senior United States District Judge Roger Vinson for conspiring to commit tax fraud. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The defendants were convicted on January 22, 2015, at the conclusion of a 12-day jury trial. In addition to conspiracy, Castleberry and Haggerty were also convicted for assisting in the preparation and filing of fraudulent tax returns, and Castleberry was convicted for filing his own false federal income tax return.
At trial, the government presented evidence that between 2008 and 2010, the defendants participated in a scheme to prepare and file fraudulent tax returns seeking more than $9 million in refunds. The group used an obscure IRS Form 1099-OID to falsely report that they and/or their clients’ creditors had withheld large amounts of federal income taxes and had paid this money over to the IRS. As a result of the fraudulently-overstated income tax withholding, the tax returns that were filed on behalf of the defendants and/or their clients claimed large refunds to which the defendants and their clients were not entitled.
The defendants were sentenced as follows:
- Castleberry: 126 months in prison and $328,143.90 in restitution to the IRS;
- Haggerty: 18 months in prison and $129,762.85 in restitution to the IRS;
- Mark Stokes: 24 months in prison and $162,608.23 in restitution to the IRS;
- Melinda Stokes: 12 months and 1 day in prison and $162,608.23 in restitution to the IRS; and
- Baum: 51 months in prison and $162,608.23 in restitution to the IRS.
United States Attorney Marsh said, “This week, millions of Americans submitted accurate and timely tax returns. The individuals who defraud the United States Treasury are also stealing from each honest American taxpayer.”
Special Agent in Charge James D. Robnett stated, “Tough sentences like the one handed down to John Castleberry should be a stark reminder to those out there contemplating theft of taxpayer dollars. Even lessor participants pay a heavy price for their participation in tax fraud schemes, and during a time when Americans are all paying their fair share of taxes, the mistakes of these individuals should be a lesson to us all.”
The case was investigated by the Internal Revenue Service – Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA) Dallas Field Division. The case was prosecuted by Assistant United States Attorneys Randall J. Hensel and J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fitchburg Man Sentenced on Child Pornography ChargesRead the Press Release
BOSTON – A Fitchburg man was sentenced today for possessing at least 600 images and 200 videos of child pornography.
Leonel Ramon Grullon, 44, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison, five years of supervised release and restitution. In January 2015, Grullon pleaded guilty to transporting and possessing child pornography.
On May 24, 2014, Grullon landed at Logan International Airport, returning from a trip to the Philippines. During a customs examination, child pornography was found on Grullon’s tablet device. Additional images and videos of child pornography were located on Grullon’s smartphone.
During questioning, Grullon initially denied knowledge that he was in possession of child pornography. After officers described the video located on the Samsung tablet, Grullon admitted possessing and downloading the file and to downloading child pornography from the internet. Grullon stated that he watched child pornography and bestiality videos on different websites, some of which he downloaded to his phone and his desktop computer at his home. Grullon also stated that he had engaged in sexual activity with a 17-year-old boy while in the Philippines.
During a search executed at Grullon’s residence in Fitchburg, forensic examination of Grullon’s numerous digital devices, including computers, DVDs, and hard drives, revealed a substantial collection of child pornography, totaling at least 600 images and 200 videos, largely depicting boys aged 6 to 10-years-old engaged in sexually explicit conduct, including lewd and lascivious posing, sexual acts, and sado-masochistic bondage.
The United States Attorney’s Office asked the Court to impose a 78 month prison sentence. The defense requested a 60 month prison sentence, which was the lowest sentence allowed by law. The United States argued that the imposition of the lowest sentence allowed by law would send the wrong message to victims and those contemplating committing such crimes. In his comments, Judge Sorokin noted that he was imposing the 60 month sentence not because it was the lowest allowed by law, but because he believed it was a fair sentence.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
Final Defendant Is Sentenced to Prison in Multi-million Dollar Real Estate SchemeRead the Press Release
DENVER – Ronald Benjamin, age 49, of Los Angeles, California, was sentenced by U.S. District Court Judge Wiley Y. Daniel to serve 14 months in federal prison for wire fraud and aiding and abetting, federal law enforcement authorities announced. Following his prison sentence, Benjamin was ordered to spend 3 years on supervised release. Judge Daniel also ordered him to pay over $870,000 in restitution to the victims of his crime.
Benjamin along with six other co-defendants, were indicted by a federal grand jury in Denver on September 1, 2011. Benjamin pled guilty on January 22, 2015 before Judge Daniel. According to the indictment as well as his plea agreement and the plea agreements of his co-conspirators, the scheme began 2006. Benjamin was related by marriage to a member of a business group based out of Culver City, California called Synergy. Synergy was made up of Dale Johnson (President & Chief Executive Officer), Donald Beverly (Vice President of New Business Development), Ronald Benjamin (Regional Manager and Senior Vice President of Sales & Marketing), Jimmy Hutchinson (Chief Financial Officer), and Vincent Jackson (Vice President of Marketing).
In early 2006, Dale Johnson began to present fellow Synergy members with a number of properties available for purchase in Colorado. By early 2006, Johnson had begun to develop business relationships with various real estate professionals in Colorado, to include, Jerry Minney (real estate broker) and Scott Goldberg (mortgage broker). Both Minney and Golderg assisted Synergy members in the purchase of various homes in Colorado.
Starting in 2006, Benjamin and Synergy members began traveling to Colorado where they started purchasing multiple residential properties. The homes were typically purchased in the individual member's own name, using the member's personal credit history to qualify for the purchases. Johnson and others typically identified the property and helped arrange for the purchase by a Synergy member.
As part of the scheme, Synergy members with the assistance of Goldberg, and other persons, submitted "uniform residential loan applications" to lenders in connection with qualifying for home loans. In a number of such loan applications, Synergy members and other buyers provided, or assisted in providing, materially false statements, representations, and omissions to real estate lenders, or the lenders' agents. The materially false information provided to the lenders occurred in the loan application process and concerned such things as the borrowers': income, assets, debts, employment history and/or intent to occupy the home as a primary residence. They also arranged for a portion of lender funds from home purchases to be paid to Synergy Members as "kickbacks" which were concealed from lenders. Kickbacks were concealed from lenders by routing payments through third parties posing as property management companies, such as "5280 Denver Real Estate" and "Willow Property Management", and through realtor commissions paid to Broker One Real Estate.
From approximately May 1, 2006, through September 22, 2006, Benjamin purchased at least 12 homes as part of the scheme. Various falsehoods were found in the loan applications and supporting documents connected with such purchases.
Dale Johnson was sentenced to 34 months in federal prison on March 19, 2014. Donald Beverly was sentenced to 14 months in federal prison on June 17, 2014. Jimmy Hutchinson was sentenced to 14 months in federal prison on March 4, 2014. Vincent Jackson was sentenced to 60 months of probation on October 17, 2012. Jerrold Minney was sentenced to 5 years of probation on August 5, 2014. Scott Goldberg was sentenced to 5 years of probation on June 17, 2014.
This case was investigated by agents with Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), United States Postal Inspection Service (USPIS) and the U.S. Secret Service.
The case was prosecuted by Assistant United States Attorney Tim Neff.
Federal Judge Sentences Buncombe Co. Man to 12.5 Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – On Thursday, April 16, 2015, U.S. District Judge Martin Reidinger sentenced Robert Lemarr, 42, of Leicester, N.C. to 12.5 years in prison on child pornography charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Lemarr was ordered to serve a lifetime of supervised release, to register as a sex offender, and to pay $20,000 as restitution to his victims.
B.W. Collier, Acting Director of the North Carolina State Bureau of Investigation (SBI) and Acting Asheville Police Chief Steve Belcher join Acting U.S. Attorney Rose in making today’s announcement.
According to court documents and the sentencing hearing, on or about August 2014, Lemarr did knowingly transport and aid and abet the transportation of child pornography. Court records indicate that on or about December 2012, Lemarr possessed over 100,000 images of child pornography, including images of toddlers and infants. Lemarr pleaded guilty to one count of transportation of child pornography and one count of possession of child pornography and has been in federal custody since April 2014. The case was investigated by the Asheville Police Department and the State Bureau of Investigation and assisted by the North Carolina Internet Crimes Against Children Task Force.
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Judge Reidinger also sentenced on Tuesday, April 14, 2015, Robert Maillet, 56, of Asheville, N.C., to 148 months in prison. According to court records, Maillet pleaded guilty in April 2014 to one count of receiving child pornography and one count of possession of child pornography. According to court documents and court records, law enforcement discovered approximately 8,000 images of child pornography in computer hardware that were seized from Maillet’s residence. In addition to the prison term, Judge Reidinger also ordered Maillet to a lifetime of supervised release and to pay $3,000 as restitution to a victim of child pornography. Mailett has been in federal custody since January 2014. The case was investigated by Homeland Security Investigations, SBI, and the Asheville Police Department.
The defendants will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts Former D'Hanis State Bank PresidentRead the Press Release
In San Antonio today, a former D’Hanis State Bank (DSB) president surrendered to federal authorities on federal charges alleging she stole an estimated $6,500 from the bank and filed fraudulent bank regulating reports which overestimated the bank’s assets announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and U. S. Secret Service Special Agent in Charge Lee Dotson.
The four–count indictment, returned on Wednesday, charges 54–year-old Laurie Mayfield (aka Laurie H. Scott) of Fredericksburg, TX, with one count of bank fraud and three counts of embezzlement by a bank employee. According to the indictment, from January 2012 until September 2014, Mayfield prepared and filed false Consolidated Reports of Condition and Income (aka “Call Reports) with federal and state bank regulators on behalf of DSB which overstated the assets of DSB by approximately $830,000. Those false reports were included in an approval package submitted to federal regulators by a holding company which owned DSB, as part of a bank acquisition process. Last September, the holding company that owned DSB was purchased by a separate entity which relied on the false DSB Call Reports in their decision-making process.
Each charge calls for up to 30 years in federal prison upon conviction.
During her initial appearance today in San Antonio, Mayfield was released on a $50,000 bond. Arraignment is scheduled for April 28, 2015, before U.S. Magistrate Judge Pamela Mathy.
The case resulted from a joint investigation by the Federal Bureau of Investigation, U.S. Secret Service, Federal Deposit Insurance Corporation (FDIC) and the Office of Inspector General for the Board of Governors of the Federal Reserve System – Consumer Financial Protection Bureau. This case is being prosecuted by Assistant United States Attorney Greg Surovic.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Federal Court in Memphis, Tennessee, Enters Injunction Against Tax Return PreparerRead the Press Release
The federal court in the Western District of Tennessee has enjoined Stephanie Edmond and her business, the Tax Factory and the Tax Factory Enterprise Inc., from preparing improper federal income tax returns. The court’s order, which was entered with the consent of the parties, prohibits Stephanie Edmond and her businesses from engaging in any conduct that interferes with administering the tax laws. Edmond and her businesses are also prohibited from preparing false returns that include schemes such as reporting non-existent businesses or claiming false education credits. The court also ordered that Edmond and her companies are required to hire a certified public accountant to act as a monitor who can inspect the company’s books and records. The monitor will then be required to report to the United States on a monthly basis as to whether the plaintiff has complied with the internal revenue laws.
Return preparer fraud is one of the Internal Revenue Service’S (IRS) Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Facebook Child Predator Sentenced to 40 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Melvin Barber Bridgers, III (34, Tarpon Springs, formerly of Greenville, North Carolina) to 40 years in federal prison for the production, receipt, and distribution of child pornography. The Court also ordered him to forfeit the cellular telephones and computers that he had used to commit the offenses. Bridgers pleaded guilty on December 11, 2014.
According to court documents, from at least December 2012, through his arrest on May 1, 2014, Bridgers used multiple Facebook accounts to pose as a young teenage girl and befriend other girls between the ages of 10 and 16 years old. After befriending the minors, he engaged in online chats with them and used manipulation, coercion, threats, and extortion to compel the minors to send him sexually graphic photographs through Facebook. Bridgers then threatened the minor victims with exposing the sexually graphic photos to their parents, or to other Internet users, in order to extort more sexually graphic photographs and videos from them.
Bridgers, who moved to Tarpon Springs from North Carolina in the fall of 2013, came to law enforcement’s attention when a 12-year-old victim in the Houston, Texas, area reported the Facebook activity to her mother after Bridgers threatened to expose that victim unless she sent him sexually explicit photographs of her 7-year-old sister. The victim’s mother then contacted the authorities.
On May 1, 2014, law enforcement executed a federal search warrant at Bridgers’s residence and obtained computer media containing numerous chat logs with the minor victims, as well as over 28,000 images and videos containing child pornography. Law enforcement agents estimate that over a two-year period, Bridgers attempted to make contact with and sexually extort, or “sextort,” thousands of young girls on Facebook. To date, approximately 129 of Bridgers’ victims have been positively identified, making this one of the largest online child “sextortion” cases prosecuted in the United States.
“The staggering number of victims in this case is sickening,” said Susan L. McCormick, special agent in charge of Homeland Security Investigations - Tampa. “While we cannot undo the damage to these young people, we can ensure that this criminal will not be able to harm them anymore.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Tampa, the Pinellas County Sheriff’s Office, and the Webster (Texas) Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ex Siu-E Employee Pleads Guilty to Lying to Federal AgentsRead the Press Release
Kwa Mister, 38, from Fairview Heights, Illinois, pled guilty to an Indictment that charged Making A False Statement to the United States Department of Transportation, Office of Inspector General, and to the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
"There is no right to lie to federal agents conducting an investigation." noted United States Attorney Wigginton. "Federal investigations are serious matters. Lying to Agents conducting the investigations could make you a felon and subject you to time in prison."
Mister faces up to ten years in prison, a $250,000 fine and up to three years supervised release. Sentencing is set for July 24, 2015.
Facts behind this case showed that the Illinois Department of Transportation entered into an intergovernmental agreement with Southern Illinois University at Edwardsville (SIUE) to be the fiscal agent for the Highway Construction Preparatory Training Program. The indictment charged that Mister was the Director/Project Manager at the Small Business Development Center at SIUE and served as the project manager for the Highway Construction Preparatory Training Program. An investigation and an audit revealed that Mister obtained five contracts between SIUE and Phoenix Support Services for Phoenix Support Services to purportedly serve as an independent consultant to assist with the training program. From March 2010 through January 2011, an audit discovered five Purchase Orders, five Contracts, and at least four Justification for Sole Source Purchase or Contract forms concerning the procurement of services from "L. A. S" [name removed], Director, d/b/a Phoenix Support Services. The procurement of these contracts with Phoenix Support Services was initiated by the Program Manager for the Highway Construction Preparatory Training Program, Mister. Essentially, Mister procured the services of his mother, L. A. S., for sole source contracts and concealed the family relationship and the potential conflict of interest from SIUE. When the propriety of the contracts with Phoenix Support Services was under investigation by SIUE, Mister lied to SIUE as to whether the owner of Phoenix Support Services was his mother. When this was investigated, Mister lied to federal agents concerning whether he provided false information to SIUE.
The successful prosecution is the result of an investigation conducted by the United States Department of Transportation, Office of Inspector General, the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations and the Federal Bureau of Investigation with the assistance of Southern Illinois University and the Office of Executive Inspector General for the Agencies of the Illinois Governor. The prosecution of the case is being handled by Assistant U.S. Attorney Norman R. Smith.
El Salvadorian National Sentenced for Theft of Unemployment Insurance BenefitsRead the Press Release
BOSTON – A Chelsea man was sentenced today for illegally obtaining unemployment insurance benefits.
Oscar P. Valles-Lopez, a/k/a Oscar Valle, 44, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to one year of probation, the first four months of which is to be served in home confinement, and restitution in the amount of $46,218 to the Massachusetts Division of Unemployment Assistance. In November 2014, Valles-Lopez pleaded guilty to one count of mail fraud.
Valles-Lopez is an El Salvadorian national who illegally reentered the United States in July 2003 after previously living in this country from 1996 to 2001. After working for several years under fraudulently obtained immigration papers, he lost his job in 2009. Although Valles-Lopez knew he was not entitled to unemployment insurance benefits without a valid work permit, he paid $400 for a false permit and made three claims for benefits in 2009, 2010, and 2012. Over the course of several years, Valles-Lopez cashed 111 unemployment checks totaling $46,218.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Regional Office; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Dupree Man Sentenced for Abusive Sexual Contact by ForceRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man convicted of Abusive Sexual Contact by Force was sentenced on April 6, 2015, by U.S. District Judge Roberto A. Lange.
Christian Whiteman, age 21, was sentenced to 120 months in custody, 5 years of supervised release, $43.20 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Whiteman was indicted by a federal grand jury on July 15, 2014, for Aggravated Sexual Abuse of a Child. On January 21, 2015, he pled guilty to a Superseding Information charging him with Abusive Sexual Contact by Force.
The conviction arose from an incident that occurred between October 1, 2012, and May 29, 2013, at Dupree, when Whiteman engaged in sexual contact by force with a five-year-old child. The victim tried to resist, said no, and attempted to push Whiteman away, but he was too heavy and continued to touch the victim.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Whiteman was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Dorchester Men Charged for Attempting to Kill a Man Believed to be a Federal WitnessRead the Press Release
BOSTON – In a third superseding indictment unsealed today, two men were charged with witness tampering by attempting to kill him and for conspiring with each other to do so. These charges were brought in addition to charges previously filed against one of the men involving a multi-state sex trafficking ring that victimized minor and adult women.
Jaquan Casanova a/k/a “Cass,” “Joffe,” “Joffy,” and “Joffy Joe,” 24, of Dorchester was charged for the first time in a third superseding indictment for tampering with a witness by attempting to kill him and for making false statements to a federal agent. Raymond Jeffreys, a/k/a “Skame Dollarz,” “Skame,” “Skamen,” “Define Dollarz,” and “Frenchy,” 27, of Dorchester, Jamaica Plain, and Portland, Maine; and Corey Norris, a/k/a “Case,” and “Jacorey Johnson,” 25, of Dorchester, were also charged in the third superseding indictment. Jeffreys was charged alongside Casanova with tampering with a witness by attempting to kill him and with conspiring with each other to do so. In addition, Jeffreys and Norris were charged again with the multiple sex trafficking counts brought against them in previous indictments.
Specifically, the third superseding indictment charges Jeffreys and Norris with the trafficking and transportation of nine victims, six of whom were under the age of 18, for the purposes of prostitution in Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Pennsylvania, New Jersey, New York, Maryland, Nevada, Georgia, Florida and California. The charges of tampering with a witness by attempting to kill that witness are related to this sex trafficking organization. The initial indictment in the case, returned in March 2013, charged Norris, Darian Thomson, a/k/a “Bo,” “Dee Bo,” and a woman named Vanessa Grandoit with sex trafficking of a minor from Massachusetts to Rhode Island in December 2012. According to the allegations in the third superseding indictment, in April 2013, Thomson was released from state custody on unrelated state charges in New Jersey and returned to Boston, where he was shot in the head by Casanova at the direction of Jeffreys. The third superseding indictment alleges that Jeffreys believed that Thomson had cooperated with law enforcement in New Jersey and directed the shooting of Thomson with the intent to kill him in order to prevent Thomson from providing information to federal law enforcement regarding his and Norris’ sex trafficking activities.
The third superseding indictment also re-alleges that, at various times from 2006 through 2014, Jeffreys, Norris, and others trafficked the victims for prostitution by force, fraud or coercion and, in the cases of the minor girls, knowing or in reckless disregard that they were under the age of 18. The third superseding indictment contains specific allegations regarding the sex trafficking operation, such as that Jeffreys targeted vulnerable girls and women, including those who were poor and/or homeless, drug addicts, and those who were already working as prostitutes or who had done so in the past. Many of the women either had children when they met Jeffreys and/or became pregnant with his child. Jeffreys used a variety of techniques to persuade and manipulate the women, including making promises about providing for them and their children, and then only doing so if the women performed acts of prostitution. Jeffreys used a variety of techniques to control the girls and women through force, fraud, coercion and a combination of those means, including by threatening the women that he would kill them. The third superseding indictment also alleges that Jeffreys worked with other men as “pimp partners” or “p partners” to share resources, such as car rides, hotel rooms, and payment for online advertisements. Jeffreys taught other men, including Norris and Thomson how to engage in sex trafficking, and these men became “pimp partners” with Jeffreys.
The charge of tampering with a witness by attempting to kill him or conspiring to do so provides a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, and restitution. Each of the charges of sex trafficking by force, fraud or coercion, provides for a mandatory minimum sentence of 15 years in prison and a maximum sentence of a lifetime in prison, a minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000, and restitution. Each of the charges of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years in prison and a maximum of a lifetime in prison, five years of supervised release, a fine of $250,000, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. The witness tampering charges were investigated jointly by HSI and the Boston Police Department’s Human Trafficking Unit and Homicide Unit. The sex trafficking charges were investigated jointly by HSI, BPD, and the Federal Bureau of Investigation.
The U.S. Attorney’s Office also wishes to recognize and thank Shawn Meehan, Resident Agent in Charge of the HSI Portland Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Aaron Steps, Supervisory Senior Resident Agent in Charge of the FBI Maine Office; the Suffolk County District Attorney’s Office; Cumberland County (Maine) District Attorney’s Office; the United States Attorney’s Office for the District of Maine; the Massachusetts State Police; the Portland (Maine), Old Town (Maine), Braintree, and South Portland (Maine) Police Departments; the Maine Drug Enforcement Agency; and the Cumberland County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Amy Harman Burkart and Christopher Pohl of Ortiz’s Civil Rights Enforcement Team and Special Assistant United States Attorney and Suffolk County Assistant District Attorney David S. Bradley.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
Consent Judgment and Injunction Obtained Against Jan Charles Gray and His Custer BusinessesRead the Press Release
The United States Attorney’s Office (USAO) and the United States Department of Labor (DOL) recently secured a consent judgment of over $8,000.00 and a permanent injunction in South Dakota District Court, ordering Jan Charles Gray and his businesses in Custer, South Dakota, to comply with the Fair Labor Standards Act (FLSA) and to pay back wages and overtime pay owed to former employees. The Custer businesses include the Custer Motel, the All American Inn, and the American President Resorts. The injunction requires Gray and his businesses to train managers and employees about their rights under the FLSA, pay in accordance with the minimum wage and overtime requirements of the law, maintain accurate records, and not retaliate against any employee who files a complaint with, or cooperates in any investigation by the DOL. Gray has paid the back wages due. Gray is from Los Angeles, CA.
“The former employees involved in this investigation are getting the long overdue minimum wage and overtime pay to which they are entitled,” said Acting U.S. Attorney Randolph J. Seiler. “The USAO is dedicated to taking appropriate enforcement actions with respect to any violations of the FLSA.”
“The courts’ rulings make a strong statement about the importance of an employer’s obligation to comply with the law,” added Cynthia Watson, the DOL Wage and Hour Division’s Regional Administrator in Dallas, Texas. “We are committed to securing lasting compliance with the labor laws we enforce, and we are pleased that the judges in these cases enjoined the defendants from further violations of the FLSA.”
For more information about federal wage laws administered by the Wage and Hour Division, call the DOL’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.
Chillicothe Man Sentenced on Bank Embezzlement and IRS ChargesRead the Press Release
COLUMBUS, OHIO – Joseph P. Molnar, 51, of Chillicothe, Ohio, was sentenced to 72 months in prison, five years of supervised release, and was ordered to pay $4,076,189.44 in restitution to Huntington National Bank and $987,011.66 in restitution to the Internal Revenue Service (IRS) for embezzling approximately $4,076,189.44 from Huntington National Bank and willfully filing a false federal income tax return with the IRS. Molnar previously pleaded guilty to the aforementioned charges on October 24, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, between July 2005 and July 2012 Joseph Molnar was an employee of Huntington National Bank. Specifically, Molnar was a Managing Director for a Huntington subsidiary, Huntington Community Development Corporation. Molnar misapplied and embezzled approximately $4,076,189.44 of Huntington National Bank’s funds by falsely representing that he was paying “placement fees” or “advisory fees” for property management companies as part of several affordable housing property deals that had closed with Huntington National Bank. Instead, Molnar withdrew the funds under false pretenses and placed that money into his own accounts for his own personal use.
In addition, Molnar omitted these funds as income on his own income tax returns. Molnar filed a false income tax return with the IRS for the 2009 income tax year by falsely stating that he had an adjusted gross income of $94,358, when in actuality his income was approximately $1,226,103.16.
For 2008 through 2012 income tax years, Molnar underreported his income by a combined total of $3,054,064.44, which has resulted in total tax due and owing in the amount of approximately $987,011.66 to the IRS.
“For seven years Joseph Molnar abused his fiduciary responsibility as an executive at Huntington National Bank,” said Angela L. Byers, Special Agent in Charge of the FBI’s Cincinnati Division. “In doing so, he took advantage of his position of trust to defraud the bank and its customers for his own pecuniary gain. The FBI and other law enforcement agencies rely heavily on the trust and cooperation of members of the financial industry and citizens to assist us in performing our mission. Through this cooperative effort we are able to identify the Joseph Molnars of the world and hold them accountable for their own greed.”
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. "The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm."
U.S. Attorney Stewart commended the investigation by the IRS and FBI, Assistant United States Attorney Daniel A. Brown, who prosecuted this case.
Child Molester Sentenced to 20 Years in Federal PrisonsRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Joseph Smith was sentenced April 17, 2015, in federal court in Florence, South Carolina, for Production of Child Pornography, a violation of 18 U.S.C. § 2251(a), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). Chief United States District Judge R. Bryan Harwell of Florence sentenced Smith to 240 months imprisonment and supervised release for life
Evidence presented at the guilty plea hearing established that Smith made numerous video recordings of himself while molesting a minor child. Agents discovered that Smith then distributed these sexually explicit videos over the internet. During a search of Smith’s computer, agents also uncovered a significant amount of child pornography depicting sexually explicit images of prepubescent children.
The case was investigated by agents of the Immigration and Custom Enforcement. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online 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. For more information, please visit www.projectsafechildhood.gov.
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California Man Pleads Guilty to Fleeing from A Border Patrol Checkpoint in New MexicoRead the Press Release
ALBUQUERQUE – Carlos Torres, 39, of Huntington Park, Calif., pleaded guilty today in federal court in Las Cruces, N.M., to fleeing from a U.S. Border Patrol checkpoint at a high rate of speed. The guilty plea was entered without the benefit of a plea agreement.
Torres was arrested on Jan. 28, 2015, during a routine inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Doña Ana County, N.M. According to the criminal complaint, after Torres entered the checkpoint, Border Patrol agents directed him to a secondary inspection area. As agents were walking towards Torres’ vehicle, Torres drove away from the checkpoint and led agents in a high speed pursuit. When he was arrested, the agents found approximately 25 grams of methamphetamine in Torres’ vehicle.
During today’s plea hearing, Torres pled guilty to a felony information charging him with high speed flight from a immigration checkpoint and fleeing from federal law enforcement agents.
At sentencing, Torres faces a statutory maximum penalty of five years in federal prison. Torres’ sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorney Edwin Garreth Winstead, III of the U.S. Attorney’s Las Cruces Branch Office.
Augusta Resident Receives 20 Years in PrisonRead the Press Release
Augusta, GA: Ricky Lee Kennedy, 32, of Augusta, Georgia, was sentenced earlier this week by United States District Court Judge J. Randal Hall to 20 years in prison for possessing with the intent to distribute methamphetamine. There is no parole in the federal system.
Evidence presented during Kennedy’s guilty plea and sentencing hearings revealed that on July 29, 2014, Columbia County Sheriff’s Office (CCSO) received information that Kennedy would be bringing methamphetamine from Atlanta to the Columbia County area for distribution. CCSO Investigators surveilled Kennedy returning to Columbia County and, with the assistance of the Harlem Police Department, Kennedy was stopped. A drug-canine alerted on Kennedy’s vehicle where over 400 grams of pure methamphetamine and two loaded firearms were found. Kennedy had two prior serious drug convictions.
Kennedy’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting violent felons and drug dealers who illegally possess firearms and narcotics.
Kennedy’s case was investigated by the CCSO and the ATF. Assistant United States Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201‑2547.