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29 May 2015
Idaho Falls Man Indicted for Sexual Exploitation of Minor ChildRead the Press Release
POCATELLO - Justin Dixson, 41, of Idaho Falls, Idaho, was indicted on May 27, 2015, by a federal grand jury sitting in Pocatello for five counts of sexual exploitation of a minor child and one count of possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Dixson is currently in custody on local criminal charges.
The indictment alleges that between January 1, 2006, and January 1, 2013, Dixson used an underage girl to produce sexually explicit images of the girl engaging in sexually explicit conduct. The indictment further alleges that Dixson produced at least five “series” of such images. Additionally, Dixson is charged with possessing images of child pornography, including sexually explicit images of minors under the age of 12.
The charge of sexual exploitation of a minor child is punishable by up to 30 years in prison, a maximum fine of $250,000.00, and up to a lifetime of supervised release. The charge of possession of sexually explicit images of minors is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to a lifetime of supervised release.
A trial will be scheduled for a later date at the federal courthouse in Pocatello.
The case is being investigated by the Idaho Internet Crimes Against Children Task Force (ICAC), with the assistance of the Idaho Falls Police, Boise Police, Garden City Police, Ada County Sheriff’s Office, U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Marshals Service (USMS).
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
High Desert Woman Charged with Stealing Identities from Elderly Victims as Part of Unemployment Insurance Fraud SchemeRead the Press Release
Victims Gave Personal Data in Hopes of Being Cast in Remakes of Movies
LOS ANGELES, California – A federal grand jury this afternoon charged an Antelope Valley woman in an identity theft scheme that used personal data from elderly victims to defraud California’s unemployment insurance program out of hundreds of thousands of dollars.
Dena Peterman, 32, of Littlerock, was named in an eight-count indictment that charges her with conspiracy, aggravated identity theft and six counts of mail fraud.
Over the course of two years, Peterman and her co-conspirators allegedly stole social security numbers and other personal identifying information that was used to commit unemployment insurance fraud. According to court documents, Peterman and her co-conspirators targeted senior citizens as part of the scam, obtaining social security numbers and other personal data from the elderly victims in Oregon and California by telling them that they had an opportunity to be cast in remakes of the 1985 movie “Cocoon” and the 1981 film “On Golden Pond.”
Once they had obtained the personal information, Peterman and her co-conspirators allegedly created bogus companies supposedly related to the movie industry, submitted false wage information for the elderly victims and other individuals whom they falsely claimed worked for these companies, and submitted bogus unemployment insurance claims in the names of these individuals. The California Employment Development Department (EDD) subsequently provided unemployment insurance benefits in the names of these individuals through debit cards that were mailed to addresses that Peterman or her co-conspirators controlled.
As a result of this scheme, investigators believe that the EDD suffered losses of approximately $500,000.
Peterman was arrested on May 18 pursuant to a criminal complaint that had been filed in federal court. A United States Magistrate Judge ordered the Peterman be held without bond. She is scheduled to be arraigned on the indictment on June 5.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charges in the indictment, Peterman would face a statutory maximum penalty of five years in federal prison on the conspiracy, up to 20 years for each mail fraud count, and a mandatory consecutive two-year sentence for the identity theft count.
This case is the result of a joint investigation by the U.S. Department of Labor - Office of Inspector General and the California Employment Development Department.
Release No. 15-055
Helotes Woman Sentenced to Federal Prison for Conspiracy to Import Crystal MethamphetamineRead the Press Release
In Del Rio yesterday, Maria Landin, age 48, of Helotes, TX, was sentenced to 194 months in federal prison for her role in a scheme to smuggle into the United States 878.2 grams of pure crystal methamphetamine, announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.
On November 20, 2013, jurors convicted Landin of one count of conspiracy to import a controlled substance. Evidence and testimony presented during trial revealed that on November 11, 2012, Landin hired two individuals—Paul Edward McKinney and Anthony Wayne Cole, both of Corpus Christi, TX--to pick up the crystal methamphetamine in Piedras Negras, Mexico, and deliver it to her residence in Helotes, Texas, for distribution in the San Antonio area. On November 12, 2012, McKinney and Cole were apprehended at the Eagle Pass Port of Entry, Bridge #2, while in possession of the crystal methamphetamine.
Testimony further revealed that the co-conspirators met at Landin’s residence in Helotes, where McKinney and Cole were given a cellular phone, cash, and instructions on how to make contact in Mexico with the source of the methamphetamine. Landin also instructed the two couriers to conceal the drugs on their bodies using tape. After retrieving the methamphetamine, Cole and McKinney became lost in Mexico. Landin assisted Cole and McKinney by providing them with directions back to the Port of Entry. Inspection at the port revealed two bundles of methamphetamine taped to Cole’s legs. The methamphetamine had a street value of approximately $100,000.
Cole and McKinney previously pleaded guilty to the conspiracy charge. On December 17, 2103, McKinney was sentenced to 151 months in federal prison to be followed by a five year supervised term of release. Cole, who remains in federal custody, awaits sentencing on November 16, 2015.
This investigation was conducted by Special Agents from Homeland Security Investigations (HSI), and U.S. Customs and Border Protection (CBP). The case was prosecuted by Assistant United States Attorneys Patrick Burke and Katherine Nielsen.
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Hartford Man Admits Armed Robbery of Windsor BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ODAIN J. JOHNSON, 22, of Hartford, pleaded guilty today in Hartford federal court to committing the armed robbery of the First Niagara Bank in Windsor in January.
According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men vaulted the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took $81,530 from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers. One of the masked men pointed a gun at a customer who entered the bank during the robbery, ordered him to the ground and told him not to look up. After exiting the bank, the masked men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
In pleading guilty, JOHNSON admitted that he participated in the bank robbery, and that he brandished a firearm during the offense.
JOHNSON was arrested on January 17, 2015, in Lewiston, Maine, and has been detained since his arrest.
JOHNSON pleaded guilty to one count of bank robbery. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 31, 2015, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
Granite City Man Pleads Guilty to Meth Distribution ChargeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Billy Joe Merchant, age 42, pled guilty on Thursday, May 28, 2015 to a one-count federal indictment charging him with Possession of Methamphetamine with Intent to Distribute.
Merchant’s sentencing hearing is scheduled for September 24, 2015 at 1:30 p.m. in U.S. District Court in East St. Louis, Illinois. Merchant faces a maximum possible sentence of no more than 20 years imprisonment.
At Merchant’s change of plea hearing on May 28, Merchant admitted that he had possessed 34 grams of methamphetamine (approximately 1¼ ounces) at a mobile home trailer park near Granite City, Illinois on February 6, 2015. Merchant also admitted that the methamphetamine seized from him had been packaged for sale in 22 individual plastic baggies, and that Merchant had intended to distribute this methamphetamine in the Granite City area.
Merchant’s arrest and conviction are part of an ongoing DEA investigation into methamphetamine trafficking in Granite City. To date, a dozen meth dealers have been convicted as a result of the police operation.
Merchant has been confined in federal custody since March 3, 2015, and he will remain in custody until his sentence hearing.
The investigation which resulted in Merchant’s arrest and conviction was conducted by the Granite City Police Department; the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI); and by the Drug Enforcement Administration (DEA).
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Four Men Charged with Distributing Heroin, Fentanyl and Vicodin, Resulting in Three DeathsRead the Press Release
Four men have been charged with distributing drugs that resulted in the overdose deaths of three people, U.S. Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Joseph P. Reagan of the U.S. Drug Enforcement Administration and Oakland County Sheriff Michael Bouchard. The charges are in response to the ongoing epidemic of heroin and prescription pill abuse in the United States and in southeast Michigan. Heroin overdose deaths in the United States have tripled from 2010 to 2013. Since January 1, more than 60 people have died by overdose of heroin and fentanyl in Wayne and Washtenaw counties. Fentanyl is a synthetic opioid pain medication that is 15 to 20 times more potent than heroin. The number of heroin overdose deaths in Oakland County doubled from 2013 to 2014. The men charged include: - Zachary R. Burdette, 29, of Ypsilanti, - Roy Edward Brownlee, 49, of Ypsilanti’ - Kenyatta Akili McConico, 36, of Detroit, and - Charlie Stevens, 24, of Beverly Hills. Burdette was charged in a criminal complaint with distributing a deadly mix of heroin and fentanyl to a 27 year old Ypsilanti Township man who died on April 5. The man died of a heroin/fentanyl overdose, and he was found by his mother in his home slumped over on his bed with a syringe in his hand. Burdette had supplied the man with a tenth of a gram of heroin laced with fentanyl. Brownlee was charged in a separate but related indictment. The indictment charged Brownlee with supplying the heroin/fentanyl mix to Burdette that was subsequently sold to the overdose victim. In addition, Brownlee is charged with possessing and supplying an assault rifle and a 9mm semi-automatic pistol. Another indictment from a separate investigation charged McConico with distributing heroin that resulted in the March 19overdose death of a 35-year-old woman from Redford Township. A third indictment charged Stevens with distributing Vicodin pills to an 18-year-old man from Franklin. The man died of an overdose from the Vicodin on June 25, 2011, when he was discovered in his home by his family. Burdette, Brownlee and McConico face up to life in prison and a $1 million fine because of their roles in the heroin overdose deaths. Stevens faces up to 15 years in prison and a $500,000 fine for distributing Vicodin that resulted in death. Indictments and complaints are only charges, and defendants are presumed innocent until proven guilty at trial. Sentences are determined by the judges assigned to the cases based on sentencing guidelines, relevant sentencing statutes and other factors. United States Attorney McQuade said, “We have made it a priority to prosecute the distribution of heroin resulting in death. Heroin is poison, and overdose deaths are foreseeable to the criminals who sell it. These charges send a strong message that heroin traffickers face severe consequences for the real harm that they inflict on our residents and our families.” DEA Special Agent in Charge Reagan said, “DEA will continue to focus our resources on the drug violators such as these, who prey on our communities.” "Due to the excellent police work and investigations that were conducted, these dealers are no longer afflicting harm on our communities," said Sheriff Michael J. Bouchard. "This is an excellent example of the great partnerships between the federal and local level that has resulted in getting these criminals off the streets, and can no longer contribute to the continuing heroin and opioid epidemic in Southeast Michigan." These cases were investigated by agents, officers, and investigators from the U.S. Drug Enforcement Administration, the Oakland County Sheriff’s Office, the Office of the Oakland County Medical Examiner, the Redford Township Police Department, and the Office of the Wayne County Medical Examiner. These cases are being prosecuted by Assistant United States Attorneys William Sauget, Kenneth Chadwell, and Andrea Hutting.Four El Reno Residents Convicted of Conspiracy in Fraudulent Vehicle Cash-Back Rebate SchemeRead the Press Release
Oklahoma City, Oklahoma – On Thursday, May 28, 2015, a jury returned guilty verdicts against ROBERT W. ARNOLD, 25, of El Reno, Oklahoma, on charges of conspiracy and wire fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Three co-defendants—RICHARD M. ARNOLD SR. (a/k/a/ “Rick Arnold”), 61, RICHARD M. ARNOLD II, (a/k/a/ “Ricky Arnold”), 29, and ROBYN R. ARNOLD, 56, all of El Reno—pled guilty to conspiracy before trial. All were charged with conspiring to defraud new car purchasers out of cash rebates based on false representations that a charitable trust would make all of the victims’ monthly car payments.
The evidence at trial showed that from May of 2013 through April of 2014, the defendants informed their acquaintances, family members, and friends that they could become beneficiaries of a program operated by a charitable trust designed to help working people acquire new cars. The defendants claimed that “CECU Trust” financed the program, which was also called the “United Auto Buyers Co-op Association.”
Rick Arnold, Ricky Arnold, and Robert Arnold met car purchasers interested in the program at various car dealerships and arranged for purchases on credit that would include cash rebates to the buyers from $4,000 to $12,000 per car. In some instances, defendants caused victims’ loan applications to include fraudulently inflated income. Defendants told the car buyers that the rebate money would have to be given to the defendants for deposit into CECU Trust, which would then pay the buyers’ car loans in their entirety.
After the car purchases were complete, one or more of the defendants met the car buyers in a public place, such as a coffee shop or a bank, to receive the proceeds of the cash-back finance transactions. That money was deposited into bank accounts controlled by Robyn Arnold. Much of the money was used for personal expenses. Defendants also asked buyers to sign powers of attorney as well as proposed agreements advising the buyers that the association’s success depended on the buyers referring new participants to the program.
When various lenders notified buyers of potential defaults, defendants either assured the buyers that the payments would be made or stated that the trust would be unable to make further payments unless the buyers recruited additional participants.
A federal grand jury indicted all four defendants on December 3, 2014. On March 24, 2015, Ricky Arnold pled guilty to conspiracy. Rick Arnold and Robyn Arnold pled guilty to conspiracy on May 11, 2015; Rick Arnold also entered a guilty plea to one count of wire fraud. A jury convicted Robert Arnold of conspiracy and wire fraud after hearing more than two days of testimony.
The maximum penalty for the convictions against Rick Arnold, Ricky Arnold, and Robyn Arnold is thirty years in prison, five years of supervised release, and a fine of $1,000,000. The maximum penalty for the convictions against Robert Arnold is twenty years in prison, three years of supervised release, and a fine of $250,000. All four defendants will be required to pay restitution to victims and to forfeit property up to the value of the proceeds of the offenses. Sentencings will take place in approximately 90 days.
Reference is made to court filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and the Public Protection Unit of the Oklahoma Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Kate Holey.
Former Worcester Paramedic Pleads Guilty to Tampering with Fentanyl VialsRead the Press Release
BOSTON – A former paramedic pleaded guilty in U.S. District Court in Worcester today to tampering with vials of Fentanyl, a Schedule II controlled substance.
Teresa Torres, 42, who moved from Worcester to Sebring, Fla. after the offense, pleaded guilty to tampering with a consumer product, specifically vials containing the Schedule II controlled substance Fentanyl after being indicted in September 2014. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept.11, 2015.
From November 2012 until February 2013, Torres worked as a paramedic for Vital Emergency Services in Worcester. Beginning around Nov. 19, 2012, and continuing through Jan. 26, 2013, Torres tampered with vials of Fentanyl by removing the narcotic from vials kept in the ambulances used by Vital Emergency Services and replacing it with another liquid. In total, Torres tampered with approximately 25 vials of Fentanyl. Fentanyl is commonly administered for pain relief. During the course of the plea hearing, the government alleged that Torres was initially suspended from her paramedic job after diverting morphine from ambulance supplies. The Fentanyl diversion was discovered after she had been suspended.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Jeffrey J. Ebersole, Acting Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Former Serra Nissan Sales Manager Sentenced to Two and Half Years in Prison for Fraud ConspiracyRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a former sales manager at Serra Nissan in Birmingham to two and a half years in prison for his role in a scheme at the car dealership to falsify auto loan documents, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Virginia Emerson Hopkins sentenced ABDUL ISLAM MUGHAL, 49, of Trussville, on two counts of fraud at the Nissan dealership. Mughal pleaded guilty in July 2014 to one count of conspiring with others, including Serra Nissan salesmen, general managers, sales managers and finance managers, to falsify loan documents in order to defraud customers and financial institutions in order to sell more cars. He also pleaded guilty to one count of bank fraud for submitting falsified loan documents to financial institutions, including Capital One Auto Finance, between January 2012 and October 2013.
The judge granted the government's motion for forfeiture in the case and set a July 2 hearing to determine the amount that must be forfeited, along with the amount of restitution Mughal must pay to victims. He must report to prison July 28.
"This defendant championed the use of predatory lending practices while he worked as a car dealership sales manager," Vance said. "He defrauded customers and the lenders that trusted the dealership to present truthful information during the financing process," she said. "Growing fraud and other deceptive practices in auto sales and financing are important issues affecting consumers, and my office is committed to working with law enforcement agencies and the Federal Trade Commission to prevent fraud during the auto lending process and to prosecute those who commit the crime."
"Financial fraud like Mr. Mughal engaged in undermines the trust we must have when making major financial decisions, like purchasing a vehicle, that carry serious consequences -- consequences that cost all of us, such as increased business costs, to say nothing of the harm to the victims themselves," Stanton said. "The sentence handed down today is appropriate given the many victims left in the wake of Mr. Mughal’s fraud.”
“Abdul Mughal and his co-conspirators orchestrated a scheme driven by deception and deceit. They defrauded financial institutions and deceived customers of Serra Nissan with the intent to increase profits and enrich themselves. Their criminal actions are unacceptable,” Hyman-Pillot said. “The sentencing of Mughal will serve as an example that Internal Revenue Service-Criminal Investigation and our law enforcement partners will work together to uncover similar schemes and recommend prosecution to the fullest extent of the law.”
According to Mughal's guilty plea, while he was the dealership's general sales manager, "there was a pervasive scheme throughout Serra Nissan ... that if a customer did not qualify for a car loan for some reason, the salesman, finance managers, sales managers, or GSM were to falsify information or documents that would ensure the customer was funded."
His plea agreement with the government listed ways that Mughal and others falsified loan documents including, but not limited to:
- Inflating the income information of prospective car buyers, a process participants sometimes referred to as “fluffing.”
- Creating or altering documents to submit to financial institutions that required proof of the prospective buyer's income or residency.
- Listing accessories not actually included on a vehicle so a financial institution would increase its loan amount, a process participants sometimes called “power booking.” Mughal and others had a financial incentive to power book a deal, because if the profit on a transaction were high enough, the dealership would pay the employees on the deal something above their normal commission.
- Presenting straw buyers, who could qualify for a loan, to financial institutions when the actual buyer could not qualify because of poor credit or insufficient income.
In his plea, Mughal acknowledged one incident in which he told a salesman that a specific sale “could not be funded until they created a ‘legal lie’ for the bank” that showed the buyer, identified as J.T., made $5,000 per month.
J.T. bought a vehicle from Serra Nissan on Oct. 16, 2012. J.T. submitted a bank statement to Serra Nissan showing an ending account balance of $11.03, but the loan application the dealership submitted to Capital One Auto Finance included a fraudulent bank statement showing J.T. had monthly deposits of $6,179, according to court records.
In a second vehicle purchase on Oct. 16, 2012, a customer identified as W.K. submitted only a Social Security letter as proof of income. Serra Nissan, however, submitted a loan application to Capital One on W.K.'s behalf that also included a fraudulent bank statement, a claim of $2,973 in monthly Veterans Administration benefits -- although W.K. is not a veteran -- and false information that W.K. was retired from the State of Alabama and made $4,500 a month, according to court records.
The FBI and IRS-CI investigated the case, which Assistant U.S. Attorney Amanda Schlager Wick and Robin Beardsley Mark are prosecuting.
Former Saints Player Pleads Guilty to Drug Distribution ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite, announced that DARREN SHARPER, age 40, formerly of New Orleans, pled guilty today to Conspiracy to Distribute Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape. The maximum punishments for these offenses are as follows:
COUNT
CHARGE
MAXIMUM PENALTIES
4
21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
5
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
6
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
SHARPER is a former member of the New Orleans Saints and is presently in custody. He has previously pled guilty to similar charges in Los Angeles and Phoenix. He is also charged in Orleans Parish District Court. His plea today was part of a global resolution of the charges against him. In the factual basis filed during the guilty pleas, SHARPER admitted that he and others distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated. He also admitted that he conspired with other persons in committing these offenses. U.S. District Judge Jane Triche Milazzo set sentencing in this matter for August 20, 2015 at 10:00 a.m.
Former St Bernard Sheriff’s Deputy Brandon Licciardi is awaiting trial on the same charges as well as charges of Witness Tampering and Impeding an Official Proceeding.
U.S. Attorney Polite thanked the victims for their courage and willingness to come forward.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked District Attorney Leon Cannizzaro and Orleans Parish District Attorney’s Office for their invaluable assistance. The Los Angeles County District Attorney’s Office also assisted in this case. Assistant United States Attorneys Mark A. Miller and Michael E. McMahon are in charge of the prosecution.
Former FedEx Employee Pleads Guilty to Defrauding CorporationRead the Press Release
Memphis, TN - A former government sales representative at FedEx Corporation has pled guilty to defrauding the company of nearly half-a-million dollars during a two-year scheme.
Between 2009 and 2011, Anthony Caruso, 48, used his New Jersey-based shipping and logistics company, CSA Group, to execute a re-billing fraud. Re-billing fraud occurs when a package shipped under a particular FedEx account number is transferred to a different account that may have more favorable terms and conditions, according to the indictment.
CSA Group had negotiated a discount shipping rate with FedEx — a benefit the corporation typically provided to customers that shipped large volumes of materials. Instead of using the CSA Group account rate to provide shipping services, Caruso would re-bill his customers’ packages. He was able to execute his scheme by illegally moving the packages from his account to accounts that belonged to the U.S. Department of Defense. Like CSA Group, the Department of Defense had a FedEx account. But due to it shipping at a significantly higher volume, the Department of Defense, along with the federal government sub-accounts linked to it, received a larger discount for shipments than CSA Group.
Caruso gave his customers a shipping discount through CSA Group, but then re-billed their packages to dormant Department of Defense sub-accounts to take advantage of the larger discount rates. Caruso also changed the contact information for the government accounts, so that all invoices would be sent to him instead of the Department of Defense.
By doing so, he was able to keep the financial difference between the discount he offered his customers and the government discount he unlawfully accessed. The government estimated the loss to FedEx at between $200,000 and $400,000.
Wednesday afternoon, Caruso pled guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of access device fraud. He faces a maximum sentence of up to 20 years in prison on each of the wire fraud counts and 10 years on the access device fraud count. Caruso also faces fines of up to $750,000 and a three-year term of supervised release.
Caruso is scheduled to be sentenced Friday, August 28, 2015, at 9:30am before Judge Sheryl H. Lipman.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Deb Ireland is representing the government in this case.
Former Employee of the U.S. Postal Service and Co-Defendant Sentenced for Identity Theft Tax Refund Fraud SchemeRead the Press Release
Two individuals, including a former employee of the U.S. Postal Service, have been sentenced for their participation in an identity theft tax refund fraud scheme. Shawn Hawes, 34, of Miami, was sentenced yesterday to 62 months in prison, followed by three years of supervised release. Kelly Urseles Roberts, 39, of Miami, was sentenced on May 19, 2015 to 28 months in prison, followed by three years of supervised release.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Both defendants previously pled guilty to one count of aggravated identity theft. In addition, Hawes pled guilty to one count of possession of fifteen or more unauthorized access devices and Roberts pled guilty to one count of theft of government property.
According to court documents, law enforcement executed a search warrant at a storage unit used by Hawes. During a search of the unit, law enforcement found, among other things, notebooks containing handwritten personal identifying information, including the social security numbers of approximately 600 individuals. In addition, law enforcement found equipment capable of creating false identification documents and credit/debit cards, and actual false identification documents and credit/debit cards. Inside one of the notebooks was the social security number of an individual who had a tax return fraudulently filed on his behalf in 2014. The refund associated with this return had been direct deposited into Hawes’s bank account. This individual did not authorize Hawes to possess or use his personally identifiable information.
Defendant Hawes was arrested for, among other things, possession of stolen tax refund checks issued by the United States Treasury Department. Following Hawes’s arrest, law enforcement began focusing on who provided the treasury checks to Hawes. Law enforcement suspected that this source was a mail carrier because Hawes had referred to the source as the “postman.” Ultimately, Roberts, who at that time was an employee of the U.S. Postal Service, met with a source on three separate occasions and sold him a total of nine treasury checks.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI, USPIS, and United States Postal Service Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Former Countryside Police Chief, Kankakee County Sheriff’s Deputy Sentenced to More Than Two Years in Prison for Mail Fraud, Money Laundering, Tax EvasionRead the Press Release
Peoria, Ill. - Chief U.S. District Judge James E. Shadid today sentenced Timothy J. Swanson, former Countryside Chief of Police and deputy with the Kankakee County Sheriff’s Office, to prison. Swanson, 56, of Bourbonnais, Ill., was ordered to serve 27 months in federal prison, to be followed by a three-year term of supervised release. Swanson was ordered to pay restitution to victims in the amount of $229,128 as well as $55,140 in back taxes. Swanson was ordered to report on Aug. 11, 2015, to the federal Bureau of Prisons to begin serving his sentence.
On Jan. 27, 2015, Swanson entered open pleas of guilty to all seven charged counts in the indictment: two counts of mail fraud, one count of money laundering, two counts of tax evasion, and two counts of filing a false tax return. During the change of plea proceeding, the government provided the following factual basis to the Court in support of the defendant’s open plea of guilty:
Swanson was employed as the City of Countryside, Ill., Chief of Police in 2005 and 2006. After leaving the police department, in 2009, Swanson joined the Kankakee County Sheriff’s Office. During 2005 and 2006, Swanson obtained the use of two U.S. Department of Defense helicopters to be used for law enforcement activities. To obtain funds to operate the helicopters, Swanson established the Illinois Regional Air Support Service (IRASS) as a tax-exempt organization. No officer or director was to profit from its operation.
From at least 2005 through 2012, Swanson solicited police departments, corporations and individuals to make contributions to IRASS. From 2006 to 2010, Swanson used a credit card in the name of IRASS to make personal purchases and used money donated or awarded to IRASS to make payments on the credit card. Swanson also used this money to purchase Rotors & Wings, LLC., a business that he operated.
The charges resulted from an investigation by the U.S. Department of Defense, Defense Criminal Investigative Service; the Federal Deposit Insurance Corporation Office of Inspector General; and Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Florida Man Sentenced for Telemarketing FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Nathan Christian, 31, of Boynton Beach, FL, was sentenced in the United States District Court in East St. Louis, Illinois on his conviction for conspiracy to commit mail and wire fraud in connection with telemarketing, in violation of Title 18, United States Code, Section 1349. Christian was sentenced to a year and a day in prison, to be followed by one year of supervised release. The court also ordered Christian to pay a $1,000 fine and a $100 special assessment.
Christian was a "Closer" at C&G Marketing Associates, LLC, also known as Premier Timeshare Solutions (PTS). Closers are telemarketers who "close the deals" with the victims. The PTS closers earned commissions that were based upon the volume of sales made.
PTS operated out of offices located in southern Florida. The company targeted owners of timeshares throughout the United States and Canada who wished to sell their timeshares. By falsely representing that PTS had located buyers who were interested in purchasing the victims’ timeshares, the closers convinced the victims to pay upfront fees of approximately $2,000 to PTS. During the lifespan of the scam, PTS defrauded over 7,000 people out of approximately $14.5 million. Victims were located throughout the United States and Canada.
This prosecution is one of more than 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. Both the Florida Attorney General’s Office and the Florida Department of Agriculture have assisted in the investigation. The case is being prosecuted by Assistant United States Attorneys Scott Verseman and Michael Hallock.
Federal Officials Close the Investigation into the Death of Otis James ByrdRead the Press Release
The Department of Justice announced today that following its investigation into the death of Otis James Byrd that there is no evidence to pursue federal criminal civil rights charges in the death of Byrd.
Officials from the Justice Department=s Civil Rights Division, the U.S. Attorney=s Office for the Southern District of Mississippi and the Federal Bureau of Investigation (FBI) met today with Byrd’s family to inform them of the decision. Byrd, a 54-year old African-American man, was discovered hanging from a tree in Port Gibson, Mississippi, on March 19, 2015.
Justice Department investigators, working alongside state and local officials, conducted a comprehensive investigation into the circumstances surrounding Byrd’s death to determine whether his death was a homicide, and therefore within the scope of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act of 2009.
Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that an individual willfully caused bodily injury because of the victim’s actual or perceived race, color, religion, national origin, gender, gender identity or disability.
After a careful and thorough review, a team of experienced federal prosecutors and FBI agents determined that there was no evidence to prove that Byrd’s death was a homicide. Accordingly, the investigation into this incident has been closed.
The Justice Department is committed to investigations of allegations of hate crimes and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated.
Federal Jury Finds Deming Man Guilty of Conspiring to Transport Illegal AliensRead the Press Release
ALBUQUERQUE – Yesterday afternoon, a federal jury sitting in Las Cruces, N.M., found Jose Efrain Cavazos, 67, of Deming, N.M., guilty of conspiracy to transport illegal aliens. The guilty verdict was announced by U.S. Attorney Damon P. Martinez and El Paso Sector Chief Border Agent Jeffrey D. Self of the U.S. Border Patrol.
Cavazos was arrested on Nov. 20, 2014, and charged in a criminal complaint with conspiracy to transport illegal aliens. He subsequently was indicted on Feb. 18, 2015, and charged with the same crime. Trial against Cavazos commenced on May 27, 2015, and concluded yesterday afternoon when the jury returned a guilty verdict on the sole count of the indictment.
The evidence at trial established that on Nov. 19, 2014, Border Patrol Agents came upon six individuals lying on the ground north of Mile Marker 69 on New Mexico State Road 9 in Luna County, N.M. Questioning by the agents revealed that the individuals were unlawfully in the United States. The agents recovered a cellular phone from one of the undocumented aliens. The agents then used the cellular phone number and arranged to be picked up on Interstate 10 in New Mexico by the person who answered the phone. The following day Cavazos was arrested when he arrived to pick up an individual he believed to be an undocumented alien, but were in fact Border Patrol Agents.
The jury deliberated approximately two hours before returning its guilty verdict.
Cavazos faces a statutory maximum penalty of ten years in federal prison followed by up to three years of supervised release.
This case was investigated by the Deming Border Patrol Station of the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
Federal Jury Convicts Summertown Man of Conspiracy to Possess Child PornographyRead the Press Release
Daniel Bruce LaDeau, 65, of Summertown, Tennessee, was found guilty yesterday, by a federal jury, of conspiracy to possess child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
The jury returned a guilty verdict following a 3-day trial before Chief U.S. District Judge Kevin Sharp.
The evidence at trial showed that between March and August 2010 LaDeau and his younger brother David Ladeau, who was then incarcerated on federal charges of possession of child pornography, exchanged letters in which the two conspired to obtain sexually explicit images and videos of young boys from the Internet. In the letters, the two brothers discussed their mutual sexual interest in child pornography depicting young boys.
Daniel LaDeau, who was a novice computer user, often lamented his inability to find images and videos he had previously viewed, which prompted his brother to provide instructions and suggestions to him about how to obtain such sexually explicit images and videos of young boys from the Internet.
LuDeau will be sentenced by Chief Judge Sharp on August 31, 2015, at 10:00 a.m. He faces up to 10 years in prison and a fine of up to $250,000.
The case was investigated by Homeland Security Investigations; the Special Investigations Unit of the Donald W. Wyatt Detention Facility in Rhode Island; and the Franklin, Tenn. Police Department. The case was prosecuted by Assistant U.S. Attorneys Carrie Daughtrey and Brent Hannafan.
East Hill Man Pleads Guilty to Distibuting Child PornographyRead the Press Release
PENSACOLA, FLORIDA –Kandel Markie Whiting, 35, of Pensacola, pled guilty yesterday to receipt and distribution of child pornography. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his plea, Whiting admitted that, between October 2014 and January 2015, he used the social media applications Twitter and Kik to share images of minors engaged in sex acts. In January 2015, Whiting’s Twitter account was reported to law enforcement for containing images of child pornography. When agents executed a federal search warrant at Whiting’s residence and seized his cellular phone, they quickly located the illicit material within his social media applications. Whiting then admitted to sharing child pornography online using Twitter and Kik. Additionally, a forensic review of Whiting’s digital media revealed numerous child pornographic images and videos.
Sentencing is scheduled for August 17, 2015, before Chief United States District Judge M. Casey Rodgers at the United States Courthouse in Pensacola, Florida. Whiting faces a mandatory minimum of 5 years in prison and maximums of 20 years in prison, life on supervised release, and a $250,000 fine.
The case is being investigated by the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. It is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access 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
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Drug Trafficker Sentenced to 20 Years in Federal Prison for Supervising Sales of over 30 Kilos of Heroin on City’s West SideRead the Press Release
CHICAGO ― The leader of a drug trafficking organization who created and managed a heroin distribution operation run via a hotline telephone between 2008 and 2012 on the city’s west side was sentenced to 20 years in federal prison yesterday, federal law enforcement officials announced. The defendant, PIERRE HENDERSON, was responsible for supervising the distribution of over 30 kilograms of heroin, a federal judge determined before imposing the sentence.
Henderson, 37, of Chicago, pleaded guilty to conspiracy to distribute heroin in December 2014. U.S. District Judge Ronald A. Guzman imposed the 20-year sentence on Wednesday. Henderson’s brother, Eric Henderson, 35, pleaded guilty to conspiracy to distribute heroin in January 2014. In March 2015, U.S. District Judge Ronald A. Guzman sentenced Eric Henderson to 200 months in federal prison.
The defendant’s organization sold tens of thousands of user quantities to individuals from all over the Chicagoland area, “argued Assistant U.S. Attorney Shoba Pillay in the government’s sentencing memorandum. “His conduct directly contributed to the drug trafficking and attendant violence plaguing the streets of the city of Chicago and the heroin addiction crisis now afflicting this city.”
According to court documents, the Henderson brothers were involved in prolific daily sales of heroin to customers who called into the hotline to order heroin. After placing their phone orders the Henderson brothers’ customers traveled from all over the Chicagoland area to the city’s west-side to purchase heroin from street-level distributors, who worked for the Henderson brothers.
The Henderson brothers were among 8 federal defendants who were arrested in May 2013 following an FBI investigation, code-named Operation Heroin Hotline, of a phone-order heroin trafficking operation.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was led by the FBI and was conducted under the umbrella of the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) in coordination with the Chicago Police Department.
The government is being represented by Assistant United States Attorneys Shoba Pillay and Lindsay Jenkins.
Commodity Trading Advisor Principal Sentenced to Nine Years in Prison Following Guilty PleaRead the Press Release
CHARLOTTE, N.C. – Earlier this month, Senior U.S. District Judge Graham Mullen sentenced a South Carolina man to 108 months in prison for his role as the “Chief Investment Officer” for an entity involved in the $75 million racketeering conspiracy known as “Operation Wax House,” announced the Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. In addition to the lengthy prison term, Toby Hunter, 39, of Fort Mill, S.C. was also sentenced to three years of supervised release and was ordered to pay $8,095,903.80 in restitution to victims.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join Acting U.S. Attorney Rose in making today’s announcement.
“Our agents and enforcement attorneys worked diligently with our federal partners on this case for several years, and we were gratified to see this end result in federal court. Toby Hunter and other members of this vast racketeering enterprise showed utter contempt for the law and callous disregard for the victims. I want to thank our federal partners for their work in bringing this case to such a successful conclusion and giving victims some comfort in knowing that justice has been done,” said Elaine F. Marshall, North Carolina Secretary of State.
“Toby Hunter was a financial predator, now unable to harm investors for a long time. We are grateful for our partnership with the North Carolina Secretary of State, Securities Division, the FBI, and the IRS. With such a team, fraudsters and scammers should beware: we are coming for you,” said Jill Westmoreland Rose, Acting United States Attorney.
According to filed court documents and statements made during Hunter’s sentencing hearing, Hunter and his conspirators collectively stole over $27 million from more than 50 investor victims. Hunter and his conspirators used the victims’ money to pay for personal expenditures, including private jets, high profile offices, entertaining themselves and others, and supporting their luxurious lifestyles. Hunter pleaded guilty in December 2013 to one count of racketeering conspiracy.
According to filed court documents and statements made during Hunter’s sentencing hearing, Hunter served the racketeering enterprise as the Chief Investment Officer for Prestige Capital Advisors, one of the entities used to defraud investor-victims. Hunter was a registered commodity trading advisor with the National Futures Association (NFA), and had passed the Financial Industry Regulatory Authority (FINRA) Series 6 and Series 63 exams. Hunter registered Prestige Capital Advisor with the NFA, and used his education, licenses, and supposed experience to help lure investor victims to the scheme, including a victim defrauded of $4 million.
Following the sentencing hearing, Hunter was released on bond and will be ordered to surrender to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal cases are served without the possibility of parole.
Hunter’s case was investigated by the North Carolina Secretary of State, Securities Division, the FBI, Charlotte Division, and IRS-CI.
The Hunter prosecution was handled by Assistant U.S. Attorney Maria Vento and Special Assistant United States Attorney Kevin M. Harrington. Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position reflects the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
Camden Man Pleads Guilty to Mail and Tax Fraud ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Russell W. Brace, a/k/a “Rusty,” 81, of Camden, Maine, pled guilty today in U.S. District Court to mail and tax fraud.
According to court records, between about July 1999 and September 25, 2014, the defendant, an officer and director of United Mid-Coast Charities, Inc. (“UMCC”), fraudulently obtained $4,646,636.45 by claiming that monies donated to UMCC, would be used for UMCC’s charitable purposes and not diverted for the defendant’s personal expenses or benefit. In fact, the defendant diverted the funds into his own accounts and used them for his benefit and to pay personal expenses. To execute the scheme, the defendant used the U.S. Postal Service to mail donation request letters, UMCC brochures, self-mailer remittance envelopes and thank-you letters. The investigation also revealed that the defendant failed to report the money he obtained as income on annual federal tax returns thus failing to pay almost $390,000 in taxes and filed false non-profit income tax returns for UMCC in which he failed to disclose the funds he illegally obtained from UMCC.
Brace faces up to 30 years in prison, five years of supervised release and a fine of twice the gain or loss on the fraud charge and up to three years in prison, one year of supervised release and a $100,000 fine on the tax charges. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
California Drug Trafficker Sentenced to 18 Years for Distributing Meth in New EnglandRead the Press Release
BOSTON – A California man was sentenced today for conspiring to distribute methamphetamine in New England and laundering the drug proceeds in bank accounts.
Adolfo Castilleja, 55, formerly of Pomona, Calif., was sentenced by U.S. District Court Judge William G. Young to 18 years in prison, five years of supervised release, and a $10,000 fine. In March 2015, Castilleja pleaded guilty to conspiring to distribute methamphetamine, conspiring to launder money, and three counts of money laundering.
From January 2010 through January 2012, Castilleja, who was based in California, supplied methamphetamine to a co-defendant based in Stoneham, Mass. Specifically, Castilleja obtained methamphetamine from a California-based supplier and worked with his son to package and ship the narcotics in overnight packages to addresses on the East Coast. Five packages containing more than 1.3 kilograms of nearly 100% pure methamphetamine that were shipped by Castilleja from California to the East Coast were seized by law enforcement officials.
Overall, Castilleja and his organization were involved in the shipment of more than 100 packages from addresses near Pomona, Calif. to locations on the East Coast affiliated with co‑conspirators. In addition, Castilleja provided instructions for structured cash deposits of more than $900,000 in drug proceeds into California-based bank accounts that he controlled.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Linda M. Ricci and Michelle Wasserman of Ortiz’s Drug Task Force Unit.
Boston Woman Sentenced for Bank Fraud SchemeRead the Press Release
BOSTON – A Boston woman was sentenced yesterday for her role in a scheme to make fake identification documents of Citizens Bank customers and to use those fake documents to withdraw more than $67,000 from multiple accounts.
Kimberly B. Gomez, 55, was sentenced today by U.S. District Court Judge William G. Young to one year and one day in prison, six months of which is to be served in prison and the remainder in community confinement, and three years of supervised release, and $67,100 in restitution. In March 2015, Gomez pleaded guilty to one count of bank fraud.
Beginning in 2010, Gomez and others participated in a scheme to obtain personal identification and account information of Citizens Bank customers and to use that information to fraudulently withdraw money from these customers’ accounts. Another participant in the scheme from Citizens Bank obtained the names of customers with high savings account balances, along with their home addresses, dates of birth, and account numbers. Another participant used Gomez’s picture and the information from Citizens Bank, to obtain fake IDs. Gomez used the fake IDs to make the fraudulent withdrawals from Citizens Bank.
Gomez was able to withdraw more than $67,000 from accounts belonging to three different Citizens’ customers. She tried, unsuccessfully, to withdraw another $13,000.
United States Attorney Carmen M. Ortiz and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service in Boston, made the announcement today. The U.S. Attorney’s Office acknowledges Citizens Bank for cooperating with the investigation. The case was prosecuted by Assistant U.S. Attorney Adam J. Bookbinder, Chief of Ortiz’s Cybercrime Unit.
Baltimore Heroin Dealer Sentenced to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Shawn Hearn, age 42, of Baltimore, Maryland today to 151 months in prison, followed by three years of supervised release, for possession with intent to distribute approximately 10 kilograms of heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on September 25, 2014, the Baltimore Police Department Ceasefire unit executed a search warrant at Hearn’s home in the 2500 block of Oakley Avenue, in Baltimore. Hearn drove up in his vehicle, but was stopped prior to entering the home. Hearn was shown a copy of the signed search warrant, and then stated, “yeah, I got something.” When asked by the officers, what he had, Hearn replied, “some heroin.” Hearn took the officers to his bedroom and directed the officers to the location in the room where officers recovered approximately 10 kilograms of heroin and approximately $825,000 in cash. The street value of the heroin was approximately $10 million. The officers also recovered various items used in the processing of heroin for distribution including approximately 70 bars of mannite, a heroin diluent.
According to court documents, in 2000 Hearn was also convicted of a federal drug trafficking charge. In that case Hearn was in possession of approximately 1.5 kilograms of cocaine, as well as 80 grams of crack cocaine. Hearn was sentenced on December 6, 2000 to 110 months in prison, followed by four years of supervised release, which he completed in 2011.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney James T. Wallner, who prosecuted the case.
Andrew Steven Romero Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Andrew Steven Romero, 28, of Albuquerque, N.M., has been charged with violating the federal firearms laws in a criminal complaint filed by the FBI earlier today. The federal charges were announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
The criminal complaint charges Romero with being a felon in possession of firearms and ammunition. It alleges that Romero unlawfully possessed a firearm and ammunition on May 25 and May 26, 2015, in Bernalillo County, N.M. According to the criminal complaint, Romero was prohibited from possessing either firearms or ammunition because he previously has been convicted of multiple felony offenses, including voluntary manslaughter, tampering with evidence and aggravated assault.
Romero was arrested on May 26, 2015, on related state charges and currently is in state custody. He will be transferred to federal custody to answer to the federal charge in the criminal complaint.
If convicted of the charge in the criminal complaint, Romero faces up to ten years in federal prison. If the court determines that Romero is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment.
Charges in criminal complaints are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by a multi-jurisdictional team that includes the Albuquerque offices of the FBI and ATF and the Multi-Agency Officer Involved Shooting Task Force, which is comprised of officers from the Albuquerque Police Department, the Bernalillo County Sheriff’s Office, the New Mexico State Police and the Rio Rancho Police Department. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
andrew_steven_romero_criminal_complaint.pdf (2.32 MB)
Abington Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – Kevin Cawley, Jr., 34, of Abington, Mass., pleaded guilty yesterday to possession and distribution of child pornography. U.S. District Court Judge Dennis Saylor, IV scheduled sentencing for Aug. 12, 2015.
In September 2013, Cawley exchanged emails containing images and videos of children engaged in sexually explicit conduct. Cawley used his email accounts to search for child pornography and to correspond with others he met online who were interested in child pornography. Cawley’s child pornography collection included images and videos of prepubescent children engaged in sexual activity.
In August 2014, a search warrant was executed at Cawley’s residence. At that time, Cawley admitted to federal agents that he registered one of his email addresses using the fictitious name of “Stephen Burrus,” a name he obtained through the use of a name generator, because he knew his conduct was wrong. He also admitted to downloading child pornography, saving it to his computer, and sending it to others.
The charge of distribution of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. If accepted by the Court, under the plea agreement negotiated by the parties, Cawley will serve five years in prison and five years of supervised release.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts State Police and the Abington Police Department. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
28 May 2015
“Career Offender” Sentenced for Methamphetamine DistributionRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Sammy R. Holliday, age 43, was sentenced to 151 months in federal prison on Wednesday, May 27, 2015 for distributing methamphetamine.
Holliday, who has no recent fixed address, committed the federal offenses one month after his release from an Illinois state prison, where he had just served 5 years for manufacture of methamphetamine. Because of his extensive criminal record, Holliday was classified as a "career offender" under applicable federal sentencing guidelines.
Holliday pled guilty to federal charges of Conspiracy to Distribute Methamphetamine, and Distribution of Methamphetamine, on February 3, 2015. At his change of plea hearing, Holliday admitted that he and another man sold methamphetamine to a DEA informant in Granite City, Illinois on three separate occasions in September and October, 2014. Holliday has been confined in federal custody since November 5, 2014.
The investigation which resulted in Holliday’s arrest and conviction was conducted by the Granite City Police Department; the Metropolitan Enforcement Group of Southern Illinois (MEGSI); and by the Drug Enforcement Administration (DEA).
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Youngstown man indicted related to threatsRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Rakieda D. Cheatham, 27, of Youngstown, with threatening interstate communications and making threats/conveying false information regarding explosives, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The charges stem from a series of e-mails Cheatham is alleged to have sent in March, 2015, to management at Vallourec Star. The e-mails warned that a bomb had been placed in the administration building, and threatened to slit the throats of one of the manager’s children. The bomb threat caused the total shut down of operations at Vallourec Star and the evacuation of hundreds of Vallourec employees. The Mahoning County Sheriff Bomb Squad responded, but no explosives were located.
The Federal Bureau of Investigation and Mahoning County Sheriff’s Department conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown company pleads guilty to dumping fracking waste, to pay $100,000Read the Press Release
A Youngstown-based company was fined $75,000 and ordered to make $25,000 in payments to the community for violating the Clean Water Act by dumping fracking waste into a tributary of the Mahoning River.
Hardrock Excavating LLC pleaded guilty to one count of making an unpermitted discharge.
The company’s owner, Benedict W. Lupo, was previously sentenced to 28 months in prison for ordering the illegal discharges, which took place more than 30 times between Nov. 1, 2012 and Jan. 31, 2013, according to court documents.
The community payment will be split between two agencies -- $12,500 each to the Friends of the Mahoning River and Midwest Environmental Enforcement Association.
“This company and its owner put profits ahead of the law,” said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio. “Now they’re paying a price for their illegal actions. This sentence sends a message and the money from this case is used to stop would-be polluters.”
“Clean air and fresh water is the birthright of every man, woman and child in this state,” Dettelbach said. “Intentionally breaking environmental laws is not the cost of doing business, it's going to cost business owners their freedom.”
“Both Ben Lupo and Hardrock Excavating deserved to pay for the damage they caused,” Ohio Attorney General Mike DeWine said. “My office helped investigate this case and we will continue to pursue others like it to make sure that those who intentionally harm the environment and human health are held accountable for their actions.”
“Discharging pollution into waterways is illegal and endangers human health, wildlife and the environment,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Oil and gas production must include safe, legal treatment and disposal of drilling byproducts. Today’s sentence reflects EPA’s commitment to protecting our natural resources and the communities that rely upon them.”
“Today’s plea is the next step related to an egregious Clean Water Act violation involving several participants,” said Ohio EPA Director Craig W. Butler. “We will continue to work with our partners at the local, state and federal agencies to make sure that public health and the environment is protected and responsible parties are held accountable.”
According to the indictment and related court documents:
Hardrock Excavating LLC was owned by Lupo and located at 2761 Salt Springs Road in Youngstown. The company provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud used in hydrofracturing, or fracking.
There were approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
Lupo, directed employees to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012. Lupo directed the employees to conduct this activity only after no one else was at the facility and only after dark.
The employees, at Lupo’s direction, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of the Mahoning River and ultimately into the Mahoning River.
The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013.
The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
York Man Charged with Coercion and Enticement of A Minor to Engage in Sexual Activity and Distribution and Receipt of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a York man was charged in an Indictment by a grand jury yesterday with coercion and enticement of a minor to engage in sexual activity and distribution and receipt of child pornography.
According to United States Attorney Peter Smith, Gabriel Palmer, age 21, allegedly sexually assaulted a teenage boy and received and distributed child pornography to coerce the minor to engage in sexual activity between 2013 and 2015.
This case was investigated by the United States Postal Inspection Service, the Silver Spring Township Police Department, Homeland Security Investigations and the Cumberland County Forensics Team. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $500,000 fine. Count I carries a mandatory term of imprisonment of ten years. Count II carries a mandatory term of imprisonment of five years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Woman Pleads Guilty to Second-Degree Murder While Armed in Stabbing of David Messerschmitt at Northwest Washington HotelRead the Press Release
WASHINGTON – Jamyra Gallmon, 21, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for the Feb. 9, 2015 murder of David Messerschmitt in a robbery at a downtown Washington hotel, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gallmon pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a sentence between 18 and 25 years.
Also today, a co-defendant, Dominique Johnson, 19, also of Washington, D.C., pled guilty to a charge of conspiracy to commit robbery for her role in events on the day of the crime. Johnson faces a statutory maximum of five years in prison.
The Honorable Michael Ryan scheduled sentencing for both defendants to take place on Aug. 14, 2015.
“Our hearts go out to everyone who knew and loved David Messerschmitt,” said Acting U.S. Attorney Cohen. “It is outrageous that a young man with such a promising future was murdered over a cell phone and a Metro card. We can only hope that the rapid apprehension and conviction of those responsible for his death will help his loved ones find some sense of peace.”
“These criminals preyed upon David Messerschmitt for his property and they are being held accountable. The guilty pleas are just one step closer for the Messerschmitt family to attempt to gain closure in this senseless crime,” said Chief Lanier. “Our detectives and the U.S. Attorney's Office worked diligently to close and prosecute this case.”
Mr. Messerschmitt, 30, was killed on the evening of Feb. 9, 2015. He was attacked while a guest at the Donovan Hotel, in the 1100 block of 14th Street NW. According to the government’s evidence, Mr. Messerschmitt posted an advertisement earlier that day on Craigslist soliciting responses from other men. Gallmon pretended to be a man interested in meeting Mr. Messerschmitt and responded to his advertisement by e-mail. In fact, however, her true purpose in meeting with him was to rob him of his possessions.
Gallmon and Mr. Messerschmitt arranged to meet at approximately 7:30 p.m. in his hotel room. Gallmon walked into the hotel at 7:44 p.m., concealing her identity by wearing a jacket with a hood up and a covering over the bottom half of her face. She then entered Mr. Messerschmitt’s unlocked room. She attempted to rob him, and, when Mr. Messerschmitt fought back, she stabbed him approximately seven times in his chest, groin area, arm, and back.
During the robbery, Gallmon took Mr. Messerschmitt’s cell phone and SmarTrip Metro card. She then left the room and immediately made her way out of the hotel, once again disguising her identity by wearing a jacket with the hood up.
According to the government’s evidence, Johnson and Gallmon had discussed committing a robbery and traveled together to the hotel on the night of the murder. Johnson subsequently used Mr. Messerschmitt’s SmarTrip card on a near-daily basis for about six weeks.
Gallmon was arrested April 1, 2015 and Johnson was arrested seven days later.
In announcing the pleas, Acting U.S. Attorney Cohen and Chief Lanier commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department (MPD). They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker, Paralegal Specialist Vanessa Trent-Valentine, and Assistant U.S. Attorney Sharon Donovan. Finally, they acknowledged the work of Assistant U.S. Attorney Shana L. Fulton, who investigated and prosecuted the case.
Williamson County Judge Pleads Guilty to Firearms Violation and False Statement to a Government AgentRead the Press Release
In Austin today, 70-year-old Williamson County Judge Timothy L. Wright, of Georgetown pleaded guilty to federal charges of engaging in the business of dealing firearms without a license and making false statements to a Government agent announced Acting United States Attorney Richard L. Durbin, Jr., Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert Elder, and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.
Appearing before United States Magistrate Judge Andrew W. Austin, Wright pleaded guilty to a superseding information charging one count of engaging in the business of dealing firearms without a license and one count of false statements to Government agents. By pleading guilty, Wright admitted that beginning in June of 2014, he sold in excess of sixty firearms without a federal firearms license (FFL). Dozens of those firearms were sold to two individuals who were illegally smuggling the firearms into Mexico.
In September 2014, Wright was told by ATF that he needed an FFL in order to engage in the business of selling firearms. Wright agreed to cease and desist all sales until he had his FFL. Wright applied for his FFL and received training on the responsibilities of an FFL, including the prohibition of selling firearms to individuals with felony convictions.
After being confronted by ATF and agreeing to cease all sales, but before beginning to act as a licensed dealer, Wright conducted a firearm sale in December 2014 during which he fraudulently filled out an ATF form at a licensed firearms dealer stating he was the actual buyer of two Glock firearms. In truth, Wright had already received payment from a buyer for those two Glocks and falsely indicated on the ATF form that he was not buying the guns for another person.
After he became a licensed dealer, on three separate occasions in February 2015, a person who Wright knew was a convicted felon met with Wright and another person while Wright conducted firearm sales.
When Wright was interviewed by an ATF agent about his firearm selling activity, Wright falsely told the agent he had not sold any firearms from the time he applied for his FFL until the time he began selling as a licensed dealer. In fact, Wright had sold a firearm in December during that time period and, in addition to falsely filling out the ATF paperwork as described above, Wright even created false paperwork for his internal records with a false sale date of August 2014 intending to conceal the actual sale date. Wright also falsely told agents that he did not allow a convicted felon to be present during firearm sales when in fact he allowed the convicted felon to be present and also allowed the felon to handle the firearms during those transactions.
“While sworn to uphold the law, Judge Timothy Wright repeatedly violated federal laws governing the sale of firearms. He sold dozens of firearms without license, many of which went to people smuggling them to Mexico. He also falsified official firearms records to hide the true identity of the real buyer. These are serious crimes for which he is being held accountable,” stated Acting United States Attorney Richard L. Durbin, Jr.
Today’s guilty plea of Timothy L. Wright, Williamson County Judge, sends a strong message that Homeland Security Investigations (HSI) will not tolerate the unlawful sale of firearms, regardless of the defendant’s position or status,” said James Spero, Special Agent in Charge, HSI San Antonio. “These serious gun charges are a breach of that public trust which puts the safety of our communities at risk.”
As a result of his guilty plea, Wright faces up to 60-months in federal prison. Sentencing is expected to occur later this year in front of United States District Judge Sam Sparks.
This case resulted from an investigation conducted by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations with assistance from the Internal Revenue Service and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
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Waggaman Woman Pleads Guilty to Embezzling $208,000 from EmployerRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DELORES TROUILLET, age 58, of Waggaman, pled guilty today to wire fraud for embezzling over $200,000 from her employer.
According to court documents, from 1999 to 2014 TROUILLET was employed by a carpet, flooring, and drapery sales and installation company (“Company A”) headquartered in Gretna, where she served as a bookkeeper. In her capacity as bookkeeper, TROUILLET was responsible for overseeing the company’s finances and accounts. TROUILLET had access to Company A’s bank accounts, including the ability to conduct wire transfers from Company A’s bank accounts.
Using her access to the company’s accounts, TROUILLET stole money from Company A in five different ways, including generating checks drawing on Company A’s bank accounts to pay her personal expenses. To make the payments appear legitimate, TROUILLET listed in Company A’s internal records checks she made out to herself and deposited into her personal bank account as being made payable to entities with whom Company A engaged in business or frequently paid funds, such as “State Farm Insurance” and “IRS.” TROUILLET also paid for her personal daily expenses using Company A’s corporate credit and debit cards. Further, TROUILLET added money to her biweekly payroll in excess of her agreed upon salary. In total, TROUILLET embezzled approximately $208,082.03 from Company A.
TROUILLET faces a maximum term of imprisonment of 20 years imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person. U.S. District Judge Carl J. Barbier set sentencing for August 20, 2015.
U.S. Attorney Polite praised the work of the United States Secret Service and investigators with the Jefferson Parish Sheriff’s Office for investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Delores Trouillet Factual Basis (180.78 KB)
Valley Duo That Bilked Medicare by Billing Nearly $2 Million for Unneeded Power Wheelchairs Found Guilty of Federal Fraud ChargesRead the Press Release
LOS ANGELES – A Los Angeles-area woman and man who were responsible for more than $1.8 million in fraudulent Medicare billings – almost entirely for medically unnecessary power wheelchairs – have been found guilty of health care fraud.
Queen Anieze-Smith, 53, of Woodland Hills, and Abdul King Garba, 49, of Van Nuys, each were convicted Tuesday afternoon of five counts of health care fraud. The guilty verdicts concluded a nine-day trial before United States District Judge Dolly M. Gee.
Anieze-Smith and Garba, who operated ITC Medical Supply in Van Nuys, were found guilty of submitting fraudulent claims to the Medicare program. The duo billed Medicare for durable medical equipment – mostly power wheelchairs – for beneficiaries who were often recruited off the street, who were mobile and did not need a power wheelchair, and who could not use the power wheelchairs in their homes. As part of their scheme, Anieze-Smith and Garba’s falsified paperwork required by Medicare and sometimes failed to deliver the power wheelchairs altogether. Anieze-Smith and Garba submitted more than $1.8 million in fraudulent claims to Medicare, and they received nearly $900,000 for those claims.
As a result of the guilty verdicts, Anieze-Smith and Garba each face a statutory maximum sentence of 50 years when they are sentenced by Judge Gee this fall.
The investigation into Anieze-Smith and Garba was conducted by the Federal Bureau of Investigation and U.S. Department of Health and Human Services - Office of the Inspector General.Release No. 15-051
Usbaldo Martinez Sentenced to 100 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Usbaldo Martinez, 34, of Logansport, Indiana, was sentenced today to 100 months imprisonment, for possessing stolen firearms.
According to documents in the case, between November of 2013 and February of 2014, Usbaldo Martinez was involved with selling cocaine powder and several firearms in the Logansport area. The Drug Enforcement Administration and local law enforcement agencies were involved with making several purchases of cocaine and firearms from Mr. Martinez. Mr. Martinez was indicted by a federal grand jury in the Northern District of Indiana and pled guilty to firearms violations.
This case was the result of an investigation by the United States Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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U.S. Attorney’s Office Partners with Buffalo Schools, Buffalo Police and Stop the Violence Coalition as Students Pledge to Take A Stand Against ViolenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that students across the City of Buffalo are taking a stand against violence and promoting peace.
The U.S. Attorney’s Office is partnering with the Buffalo School District, Buffalo Police and the Stop the Violence Coalition for Peace Pledge Day. Students in grades Kindergarten through 12 are signing a Peace Builder’s Pledge or taking part in some other anti-violence activity.
“All residents in our community, including the very youngest, are entitled to life, liberty and the pursuit of happiness,” said U.S. Attorney Hochul. “These students today, from the young five year old kindergartener to the 17 year old high school senior, are taking the brave step of saying no to guns and yes to peace; no to drugs and yes to good choices; and no to bullying and yes to tolerance.”
U.S. Attorney Hochul, along with Buffalo Schools Associate Superintendent of Student Support Services Will Keresztes, Buffalo Police Chief Kim Beaty and Stop the Violence Coalition President Murray Holman visited Riverside High School. Students there designed, produced and sold non-violence buttons that read “NO H8,” “no room in my heart for VIOLENCE,” NO HATE,” and “NO HATE JUST LOVE.” Proceeds from the button sale are being donated to the Stop the Violence Coalition.
Peace Week events at Riverside also included a random acts of kindness day and wear olive green to symbolize peace day. Student Aubrey Heske stated “Friday is our Spread Positive Messages Day that was inspired by the positive post-it notes movement and the “You are beautiful” billboards across Western New York.
The U.S. Attorney, Superintendent, Chief and Mr. Holman also visited PS #97 where students in grades K-12 signed a peace pledge vowing to honor the pledge and make our community safer for all.
U.S. Attorney Hochul further stated “Each of these students has the power within them to be a peacemaker. I commend them for taking this stand because, even at their age, such actions will go a long way in having a positive impact in our community.”
Two Tulsa Men Plead Guilty to Robbery and Discharging A Firearm During A Crime of ViolenceRead the Press Release
TULSA, Okla.—Billy Joe Laverty, 38, pleaded guilty on Wednesday to “Hobbs Act” robbery and discharging a firearm during a crime of violence, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. The Hobbs Act makes it illegal for anyone to commit, or attempt to commit, a commercial robbery, that is a robbery that affects interstate commerce.
Laverty and his co-defendant, Allen Wayne Smith, engaged in a series of robberies which began on January 17, 2015 and ended on January 19, 2015. Laverty and Smith carjacked a victim at gunpoint, attempted to rob a Domino’s Pizza in Tulsa, and robbed a convenience store in Jenks, Oklahoma. During the convenience store robbery, Laverty discharged a firearm.
Smith pleaded guilty on May 15, 2015, and will be sentenced on August 14, 2015. Laverty will be sentenced on August 28, 2015. Laverty and Smith face a maximum of 20 years in prison for the Hobbs Act robbery and life in prison for discharging a firearm during a crime of violence. They also face a mandatory minimum of 10 years in prison for discharging a firearm during the robbery. United States District Court Judge Claire V. Eagan will sentence both defendants.
This case was investigated by the Tulsa Police Department, Tulsa County Sheriff’s Office, Jenks Police Department, and the Federal Bureau of Investigation. Assistant United States Attorneys Neal C. Hong and Jan S. Reincke prosecuted the case.
Two More Defendants Sentenced in Nampa Gang InvestigationRead the Press Release
BOISE – Jose Manuel Menchaca, 35, of Nampa, Idaho, was sentenced today to 60 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill ordered Menchaca to serve four years of supervised release following his prison term, during which Menchaca may not have contact with documented gang members. Menchaca pleaded guilty to the charge on March 10, 2015.
In a related case, Nicole Danelle Nieto, 31, also of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. U.S. District Judge Edward J. Lodge also ordered Nieto to serve three years of supervised release following her prison term. Nieto pleaded guilty to the charge on March 9, 2015.
According to the plea agreement, Menchaca sold methamphetamine to a police informant in February 2013. Menchaca sold methamphetamine to a second police informant in March and April 2014.
According to information presented in court, Nieto sold methamphetamine to a police informant on three occasions. Law enforcement agents obtained a search warrant and searched Nieto’s residence on June 18, 2014, and located additional methamphetamine. Nieto admitted that she sold methamphetamine.
In a related case, Michael David Bradshaw, 31, also of Nampa, pleaded guilty on May 26, 2015, to distributing methamphetamine. Bradshaw admitted that he sold methamphetamine to a police informant in Caldwell, Idaho, on September 16, 2013, and October 9, 2013.
At the time of sentencing, Bradshaw faces a minimum of five years in prison and up to forty years, a maximum fine of $5 million, and a minimum term of four years supervised release. Bradshaw is scheduled to be sentenced on August 6, 2015, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Menchaca, Nieto, and Bradshaw were all charged as a result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. In addition to Menchaca and Nieto, one other defendant has been sentenced. Guadalupe Serrano was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Bradshaw was the ninth defendant to plead guilty. The others that have pleaded guilty include Serrano, Menchaca, Nieto, Johnny Lee Martinez, 33, Guillermo Farias Jr., 29, Brandi Marie Larrea, 31, Tara Noelle Rivera, 30, all from Nampa, and Kenny P. Breedlove, 35, from California. Two others are scheduled for trial including Richard Lobato, 51, from Nampa, and Isaac Bright, 21, from Caldwell. Three other defendants have outstanding warrants, including Jose Enrique Olvera Jr., 51, Ruben Rodriguez, 36, and Veronica Cantu, 26, all from Nampa.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Former Maui Residents Found Guilty of Fraud Charges Related to Operation of $26 Million Dollar Ponzi SchemeRead the Press Release
HONOLULU -- Following a 25-day trial spanning over seven weeks, a federal jury yesterday found George Lindell, 67, and Holly Hoaeae, 40, both formerly of Maui, guilty of eight mail fraud and two wire fraud charges in connection with their operation of a multi-million dollar Ponzi scheme associated with their mortgage and insurance business on Maui. Lindell was also convicted of four counts of money laundering.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to evidence produced in court, 166 people invested over $26 million in an investment scheme called “The Parking Lot” and lost a net amount of $8.9 million dollars. Lindell and Hoaeae began an investment scheme in connection with their operation of their business “The Mortgage Store,” in which they issued promissory notes promising to pay a guaranteed rate of return of seven percent. Lindell and Hoaeae, using radio ads, magazines and a weekly radio show, urged potential investors to attend their weekly workshops at “The Mortgage Store” where they taught seminars on how to “harness” or use the equity in their homes for investment purposes. Lindell and Hoaeae would then utilize their status as mortgage brokers to refinance investor residences in order to extract the equity in investor homes for the purposes of investment.
According to the information revealed in court, Lindell and Hoaeae would then urge investors to invest money in their investment scheme, known as “The Parking Lot”, where investors could “park” their money and earn guaranteed rates of interest. Lindell and Hoaeae advertised the Parking Lot as “safe” and invested largely in secure corporate bonds in Fortune 500 companies. In truth and fact, Lindell and Hoaeae were investing in “junk” bonds and/or marginal real estate investment activity and using the remainder of the funds to support their luxurious lifestyles and pay existing investors with new investor funds. During the scheme Lindell built a $3.5 million dollar residence above Lahaina in large part with investor funds and Hoaeae used hundreds of thousands of dollars in investor funds to support her personal lifestyle including trips, automobiles and payments of extensive credit card debt.
Lindell and Hoaeae will be sentenced on September 9, 2015 by United States District Judge Derrick K. Watson. Lindell and Hoaeae face up to 20 years in prison on each of the ten mail and wire fraud offenses. Lindell also faces up to ten years in prison on each of the four money laundering offenses. Each charge also carries a potential fine of up to $250,000.
The investigation of this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Ken Sorenson and Andrea Hattan.
Two Clay County Men Sentenced in Federal Court on Methamphetamine ChargesRead the Press Release
Two Clay County men were recently sentenced to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
On May 27, 2015, Kevin L. Brown, 44, of Flora, Illinois, was sentenced to 188 months’ imprisonment, four years’ supervised release following his imprisonment, and was fined $200. Kevin Brown had previously pleaded guilty to one count in a federal indictment. Count 1 charged that from May 2012, to November 10, 2014, in Clay County, Kevin Brown conspired with others known and unknown to the Grand Jury to manufacture more than 50 grams of methamphetamine.
In a separate case, on May 21, 2015, Christopher S. Brown, 33, of Flora, Illinois, was sentenced to 97 months’ imprisonment, three years’ supervised release following his imprisonment, and was fined $200. Christopher Brown had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from August 2012, to November 20, 2013, in Clay County, Christopher Brown conspired and agreed with others to knowingly and intentionally manufacture methamphetamine. Count 2 charged that from August 5, 2012, to on or about November 5, 2013, Christopher Brown knowingly and intentionally possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Two Charged with Felony Violations of the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANTONIO HALEY, age 38, of Hammond, and ORLANDO RODRIGUEZ, age 25, of Houston, were charged today in a three-count Indictment for conspiring to and possessing with intent to distribute methamphetamine.
According to the Indictment, from a date unknown until May 14, 2015, HALEY and RODRIGUEZ conspired to possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The indictment also separately charges that HALEY and RODRIGUEZ possessed with the intent to distribute methamphetamine on May 14, 2015.
If convicted, both HALEY and RODRIGUEZ each face a maximum term of imprisonment of forty years, a maximum fine of $5,000,000 and a maximum term of supervised release of at least four years as to the conspiracy count. HALEY faces a maximum term of imprisonment of twenty years, a maximum fine of $1,000,000 and a term of supervised release of at least four years as to his possession with intent to distribute count. RODRIGUEZ faces a maximum term of imprisonment of forty years, a maximum fine of $5,000,000 and a term of supervised release of at least four years as to his possession with intent to distribute count.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant U.S. Attorney James Baehr is in charge of the prosecution.
Antonio Haley & Orlando Rodriguez Indictment (1.25 MB)
Two Canadian Men Admit Roles in $17 Million Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – Two Canadian men have admitted their roles in a stock market scheme that artificially inflated the stock price of two publicly traded companies through manipulative trading and other fraudulent means, U.S. Attorney Paul J. Fishman announced.
Michael Taxon, 52, of Toronto, Ontario, Canada, and Itamar Cohen, 52, of Thornhill, Ontario, Canada, each pleaded guilty before U.S. District Judge Jose Linares to separate informations charging them with conspiracy to commit securities fraud. Taxon entered his plea today and Cohen entered his plea on May 27, 2015.
According to the documents filed in these cases and statements made in court:
From April 2007 through June 2008, Taxon, Cohen and others engaged in an extensive “pump-and-dump” stock manipulation scheme, fraudulently inflating the prices of shares of certain companies in order to later sell those shares at artificially higher prices. The scheme targeted two public companies: Raven Gold Corporation (RVNG) and Kentucky USA Energy Inc. (KYUS). Taxon, Cohen and their conspirators first obtained control over large blocks of the free trading shares of the target companies. They then “pumped” the price of those shares by engaging in manipulative trading of the stocks and disseminating misleading promotional materials touting the stocks and encouraging others to purchase them. After pumping the stocks, Taxon, Cohen or their conspirators “dumped” them, selling large volumes of the stocks to victim-investors. The target companies’ stock price would then drop, resulting in losses to the victims.
In April 2007, Taxon, Cohen and a conspirator (CC2) received large blocks of unrestricted RVNG shares and then engaged in a pattern of manipulative trading designed to create the false appearance of liquidity and market depth for RVNG. The manipulative trading included trades of RVNG stock in which CC2 or others acting in concert were on both the “buy” and “sell” side of the same trades. Throughout June 2007, CC2’s trading in various brokerage accounts that CC2, Taxon or Cohen controlled accounted for a substantial portion of RVNG’s daily trading volume. In addition to the manipulative trading, Taxon, Cohen and their conspirators created and disseminated to potential investors an eight-page, glossy promotional mailer that touted RVNG’s stock. The promotional mailer was materially false in numerous ways. It was misleadingly titled, “Stock Trend Report,” and claimed to be a July 2007 “Special Edition For Premium Members.” Stock Trend Report was a fictional name that was created specifically for the scheme. The manipulative conduct had a substantial impact on RVNG’s stock price, which went from a low of $.61 per share in the early phase of the scheme to a high of $1.73 per share at its peak.
Taxon and Cohen engaged in similar fraudulent conduct to artificially inflate the value of KYUS’s stock. In May 2008, Taxon assisted CC2 in manipulating KYUS’ stock by placing a number of manipulative trades using overseas trading accounts. Taxon placed and then canceled a series of successfully higher “buy” orders for KYUS stock at different brokers in order to maximize the false appearance of liquidity, depth and interest in the stock, and to “walk up” the price of KYUS stock. Toward the end of the KYUS manipulation, after the stock had been manipulated from a low price of approximately $.60 per share to a high of $3.97 per share at the peak of the promotion, CC2 and other conspirators “dumped” their shares at the artificially inflated prices to unsuspected victim-investors.
The stock manipulation scheme generated approximately $17.2 million in illegal proceeds, of which Taxon and Cohen received approximately $2.4 million.
The conspiracy counts to which Taxon and Cohen pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for both Taxon and Cohen is scheduled for Sept. 2, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to Taxon’s and Cohen’s guilty pleas. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Andrew Calamari.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
Defense counsel:
Taxon: Andrew Goodman Esq., New York
Cohen: Anne Hilton Esq., New York
Trio Charged with Robbing Verizon Wireless Stores of Expensive Cellular PhonesRead the Press Release
PHILADELPHIA – An indictment, filed today, charges three Philadelphia men with robbing Verizon wireless stores of expensive cellular telephones for the purpose of reselling them and splitting the nearly $80,000 in proceeds, announced United States Attorney Zane David Memeger. Darryl Alston, 39, Rynell Bennett, 34, and Chamir Isaiah Lewis, 21, all of Philadelphia, are charged with committing Hobbs Act robbery. Alston is charged in all five robberies: on October 11, 2014, at 421 West Germantown Pike, Plymouth Meeting, Pennsylvania; on January 20, 2015, at 625 West Chester Pike, Haverford Township, Pennsylvania; on January 21, 2015, at 301 Spring Garden Street, Philadelphia; and on January 27, 2015, at 1692 Clements Bridge Road, Deptford Township, New Jersey; and on April 13, 2015, at 322 South Street, Philadelphia. Bennett is charged with one robbery and Lewis is charged with two robberies.
According to the indictment, the three defendants robbed the stores by researching the businesses over the Internet; entered the businesses wearing dark clothing, gloves, scarf, ski mask, baseball hats, and a hooded sweatshirt to conceal their identities; used a firearm and a BB handgun to terrorize the owners and employees of the businesses, tied the victims’ hands with duct tape and rope, in order to prevent them from interfering with the robbery and to enforce compliance with their demands; and stole approximately $78,906 in cellular phones. Alston and Bennett are also both charged with using and carrying a firearm during and in relation to a crime of violence and felon in possession of a firearm.
If convicted of all charges, Alston and Bennett each faces a minimum mandatory sentence of seven years in prison, in addition to an advisory sentencing guideline range of 188 to 235 months for Alston, and 360 months to life imprisonment for Bennett. Lewis faces a sentencing guideline range of 151 to 188 months imprisonment.
The case was investigated by the FBI with assistance from the Philadelphia Police Department, the Plymouth Meeting Police Department, the Haverford Township Police Department, and the Deptford Township, New Jersey Police Department. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Plead Guilty in Oxycodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Nathan C. Johnson, age 51, of Marietta, Patricia T. Brookshire, age 54, of Travelers Rest, and Carmen B. Crudo, age 31, of Hendersonville, North Carolina, pled guilty today in federal court in Anderson, to conspiracy to distribute oxycodone and other controlled substances, a violation of Title 18, United States Code, Section 846. Senior United States District Judge G. Ross Anderson, Jr., of Anderson accepted the pleas and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the federal Drug Enforcement Administration had undertaken a long-term investigation into the distribution of oxycodone in the upstate of South Carolina. On July 8, 2014, agents conducted a controlled purchase of 25 oxycodone pills from Cheryl Shipman, who pled guilty earlier this year, using a confidential source. To fulfill the order, Shipman traveled to meet Johnson and was observed conducting a drug transaction with Johnson. Further investigation revealed that, in addition to Johnson, Shipman had other sources of supply for Oxycodone and that she sold oxycodone to area dealers and addicts on a daily basis. Carmen Crudo frequently traveled from Hendersonville, North Carolina, to purchase pills from Shipman. According to reports from Henderson County, North Carolina, Crudo was arrested on April 24, 2014, after she was observed selling oxycodone obtained from Shipman to a known drug user. Patricia Brookshire’s role in the conspiracy was to provide Shipman with methadone for resale. On July 10, 2014, Shipman purchased 99 methadone pills from Brookshire. This transaction was recorded by law enforcement.
Mr. Nettles stated the maximum penalty the Defendants can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Three of Four Former Deputies SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that former Sgt. Arthur Howard, 44, former officer Jimmy Lee Denson, 45, and former officer Decarlo C. Latimore, 38 were sentenced today by the Honorable Marc T. Treadwell, United States District Judge in Macon. They were each sentenced to three years of probation for conversion of government property. Further, they will have to surrender their Georgia Police Officer Certification.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Solis, Beth Howard, and Kim Easterling prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Three Men Plead Guilty to Conspiracy to Use Weapons of Mass DestructionRead the Press Release
ROME, Ga. - Brian Cannon, Terry Peace and Cory Williamson have pleaded guilty to conspiring to use weapons of mass destruction—specifically, pipe bombs—in attacks against federal government agencies.
“This case is a startling example of militia activists reaching true extremes, as distrust and hatred of government led these defendants to arm themselves, plan attacks against federal agencies, and seek out explosives to attack a local police department,” said Acting U.S. Attorney John Horn. “While this level of extremism is fortunately rare, this case illustrates the threats to all our safety that arise from people who turn their hatred into actions.”
“Through the FBI led Joint Terrorism Task Force (JTTF), the FBI and its various law enforcement partners remain vigilant in identifying, investigating and presenting for prosecution individuals such as those seen in this case that would conspire to do harm to the U.S. and its government infrastructure,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI asks that anyone with information regarding such matters to immediately contact their nearest FBI field office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In January and February 2014, Cannon, Peace and Williamson participated in Internet chat rooms frequented by militia members and others with a shared anti-government ideology. During the chat room conversations, Cannon, Peace, and Williamson discussed starting a revolution against the federal government by conducting an attack aimed at the infrastructure supporting the Transportation Security Administration, the Department of Homeland Security and the Federal Emergency Management Administration.
According to their conversation, their goals included forcibly removing government officials who the defendants believed acted beyond the scope of the U.S. Constitution. During one of the online conversations, Peace said they would launch the attack between February 1, and February 15, 2014. He encouraged the militia members to review guerilla warfare tactics, accumulate supplies and prepare their families. By February 1, 2014, Cannon and Williamson had moved to Georgia and were living with Peace at his Rome, Georgia residence.
Cannon, Peace and Williamson targeted the infrastructure supporting their federal agency targets because they believed this would reduce the amount of unnecessary casualties and make it difficult for the government to respond to their attack. The men decided to launch the first attack in Georgia to prompt militia members in other states to begin attacks in their respective states.
Unbeknownst to the defendants, a participant in the chat rooms became alarmed at their plans, informed the FBI of the attack against the government and agreed to assist in this investigation.
On February 8, 2014, Peace asked the cooperating witness to provide twelve pipe bombs and two thermite devices to use in their attack. Peace said he wanted the pipe bombs designed for “maximum fragmentation” and thermite devices capable of penetrating the engine block of a military-grade armored vehicle. Peace, Cannon and Williamson then made plans to meet with the cooperating witness after the pipe bombs and thermite devices were constructed.
On February 15, 2014, the defendants, armed with numerous firearms, drove from Peace’s residence to meet with the cooperating witness at a location in Cartersville, Georgia, to pick up the pipe bombs and thermite devices. Prior to their arrival, the cooperating witness was provided with twelve inert pipe bombs and two inert thermite devices. The three defendants were arrested as they were taking possession of the items. While their online conversations reflected attacks on federal targets, the defendants planned to use the thermite device at a local police department.Sentencing for Terry Peace, 47, Brian Cannon, 37, and Cory Williamson, 29, all of Rome, Ga., is scheduled for August 7, 2015, at 1:30 p.m., before United States District Judge Harold L. Murphy.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Tracia M. King and Ryan K. Buchanan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.
Three Jacksonville Men Indicted for Aggravated Identity Theft, Attempted Bank Fraud, and Possession of Counterfeit SecuritiesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Jacksonville residents Hezekiah Williams (59), Travis Jerome Ware (24), and David Lee Mitchell (53) with aggravated identity theft, attempted bank fraud, and possession of counterfeit business checks. If convicted, each faces a maximum penalty of 30 years in prison for each attempted bank fraud charge, up to 10 years in prison for each counterfeit charge, and a 2-year, mandatory minimum term of imprisonment for each aggravated identity theft offense. All three were arraigned on May 20, 2015, and are being detained pending trial.
According to the indictment, in November 2014, Williams, Ware, and Mitchell obtained genuine forms of identification, such as driver licenses, that contained the personal identification information of various victims. They also obtained 25 counterfeit business checks, some of which were made payable to names that corresponded to the forms of identification in their possession. They then attempted to cash the checks at financial institutions.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Florida Highway Patrol and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Thirteen Individuals, Including A JSO Patrol Officer, Charged in Organized Crime InvestigationRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of four indictments charging 13 individuals with various federal criminal offenses, including conspiracy to commit money laundering, failure to file an IRS Form 8300, structuring of currency transactions, conspiracy to transmit wagering information, and narcotics trafficking. Included in the indictments is a count charging Jacksonville Sheriff’s Office (JSO) Patrol Officer Michael Rounsville (46, Jacksonville) with the unauthorized use of the National Crime Information Center (NCIC) Database. Also charged today are Hedar Khlaf, Manuel Rodriguez, Mollie Bass, Diane Harrison, Erick Estrada-Lopez, Bruce Childs, Christian Magliano, John Amell, Ilia Mato, Vladimir Adunts, Justin Downing, and Evanc Rajta.
According to court documents, between May 2012 and January 28, 2013, multiple individuals conspired to conduct financial transactions with proceeds represented by an undercover agent to be from the distribution of ecstasy. As part of the conspiracy, a vehicle was purchased without filing an IRS Form 8300, and wire transfers from bank accounts were structured to avoid triggering the filing of a Currency Transaction Report. In furtherance of the conspiracy, Rounsville exceeded his authorized access to the NCIC database by performing a criminal history check on the aforementioned undercover agent. The indictment also alleges that in January 2013, several of the individuals conspired to distribute marijuana. Amell, Mato, Adunts, and Downing have each been charged with conspiracy to transmit wagering information related to Internet gambling, and Rajta has been charged with laundering funds represented to be proceeds from the distribution of marihuana.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation; the United States Secret Service; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Florida Department of Law Enforcement; the Jacksonville Sheriff’s Office; the Washoe County (Nevada) Sheriff’s Office; and the Nevada Highway Patrol. It will be prosecuted by Assistant United States Attorney Diidri Robinson.
This investigation, dubbed Operation Thunderstruck, is part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises.
Operation Thunderstruck Case Number Defendant (age) Charge Maximum Penalty 3:15-cr-70-J-34MCR Hedar Khlaf (32) Conspiracy to commit money laundering 20 years Manuel Rodriguez (31) Mollie Bass (31) Diane Harrison (57) Erick Estrada-Lopez (40)Michael Rounsville (46)
Unauthorized computer access5 years
Hedar Khlaf
Failure to file an IRS Form 8300 10 years Manuel Rodriguez Diane Harrison Structuring currency transactions 10 years Mollie Bass Bruce Childs (36) Manuel RodriguezConspiracy to distribute marihuana
20 years Mollie Bass Christian Magliano (26) 3:15-cr-71-J-39MCR John Amell (55)Conspiracy to transmit wagering information
5 years
Ilia Mato (54) 3:15-cr-72-J-39PDB Vladimir Adunts (26) Justin Downing (25) 3:15-cr-73-J-25MCR Evanc Rajta (28) Money laundering 20 yearsThird Monroe County Man Enters Guilty Plea to Federal Methamphetamine Trafficking ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a third Monroe County man pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of conspiracy to distribute methamphetamine.
According to United States Attorney Peter Smith, Fred Baumgartner, age 34, of Kresgeville, Monroe County, admitted to participating in a conspiracy to distribute methamphetamine in the Monroe County area in 2013 and 2014.
Baumgartner was one of seven individuals indicted by a federal grand jury in April 2014, after a several month investigation conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department regarding methamphetamine trafficking in Monroe County.
Previously, Scott Borushak, age 51, and Emmanuel Tucker, age 39, both of Stroudsburg, pleaded guilty and admitted to participating in the same methamphetamine trafficking conspiracy. In addition, Jeannine Altemose, age 53, of Stroudsburg, previously entered a guilty plea and admitted to allowing methamphetamine to be stored and distributed from her residence. The charges against the remaining defendants are currently pending.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
ALBANY, NEW YORK –The United States Attorney’s Office for the Northern District of New York is participating in a national initiative designed to make summer camps accessible to Americans with disabilities announced United States Attorney Richard S. Hartunian.
With school quickly coming to a close, many parents have already made, or are in the process of making, summer camp arrangements for their children. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Northern District of New York, reminding them of their obligations under the Americans with Disabilities Act ("ADA").
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
"From the earliest days of the civil rights movement, eliminating barriers to recreational activities has been a key part of efforts to ensure equal opportunity in our society. We continue this tradition by ensuring that children with disabilities have equal access to the wonderful opportunities afforded by summer camps not only for children to have fun, but to interact with their peers and the natural environment in ways that will build their confidence, improve their health, and provide life-long memories." Hartunian said.
Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Unit at (518) 431-0247.