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28 May 2015
Fort Myers Man Sentenced in Child Pornography Distribution CaseRead the Press Release
Fort Myers, Florida – United States District Judge John A. Steele has sentenced Adam Moffett (32, Ft. Myers) to 10 years in federal prison for distributing and possessing child pornography. The Court also ordered him to serve a life term of supervision as a sexual offender. Moffett pleaded guilty on February 25, 2015.
According to court documents, Moffett utilized private Internet chat rooms to communicate with other individuals, distribute, and receive child pornography. After a search warrant was executed at his residence, Moffett was found to be in possession of over 600 child pornography images.
This case was investigated by the Lee County Sherriff’s Office and the Federal Bureau of Investigation’s Child Exploitation Unit. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former VA Contractor Sentenced to Prison in Connection with Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Willie Streater (25, Tampa) to six years and nine months in federal prison for access device fraud and aggravated identity theft. As part of his sentence, the Court entered a money judgment in the amount of $25,206, which is a portion of the proceeds traceable to the offense. Streater was also ordered to pay restitution in excess of $1 million to the IRS. He pleaded guilty on March 19, 2015.
According to court documents, Streater is a former employee of a shredding company that had a contract with the U.S. Department of Veterans Affairs to shred documents at the James A. Haley Veterans Hospital in Tampa. Streater stole documents intended for shredding that contained the personal identifying information of U.S. veterans and sold them to multiple individuals engaged in filing fraudulent tax returns in order to steal tax refunds from the U.S. Treasury.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, the Internal Revenue Service - Criminal Investigation, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Former Speaker of the United States House of Representatives Charged with Structuring Cash Withdrawals to Evade Currency Transaction Reporting Requirements and Making False Statement to the FBIRead the Press Release
CHICAGO — The former Speaker of the United States House of Representatives was charged today with structuring the withdrawal of $952,000 in cash in order to evade the requirement that banks report cash transactions over $10,000, and lying to the Federal Bureau of Investigation about his withdrawals. The defendant, JOHN DENNIS HASTERT, 73, of Plano, Illinois, was charged with one count each of structuring currency transactions to evade Currency Transaction Reports and making a false statement to the FBI in an indictment returned by a federal Grand Jury. He will be ordered to appear for arraignment on a later date in U.S. District Court.
According to the indictment, in 2010, Hastert agreed to provide Individual A $3.5 million in order to compensate for and conceal his prior misconduct against Individual A. From 2010 to 2014, Hastert withdrew a total of approximately $1.7 million in cash from various bank accounts and provided it to Individual A. Beginning in approximately July 2012, Hastert started structuring his cash withdrawals in increments of less than $10,000 to evade the filing of Currency Transaction Reports (“CTRs”), which banks are required to file for cash withdrawals in excess of $10,000. In December of 2014, when questioned by the FBI regarding his structuring of cash withdrawals, Hastert falsely stated that he was keeping the cash.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Stephen Boyd, Acting Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
Each count of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorneys Steven Block and Carrie Hamilton.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Senate Staffer Charged with Wire FraudRead the Press Release
A former staff member of the U.S. Senate Committee on Commerce, Science and Transportation was charged by indictment in the Eastern District of Virginia with defrauding at least three women of approximately $500,000, announced Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
The indictment charges Robert Lee Foster, 65, of De Pere, Wisconsin, with nine counts of wire fraud.
According to the indictment, from 2008 through May 2015, Foster devised a scheme to fraudulently obtain money and property from at least three women, whom Foster targeted because of their age, health, marital or family status, or other personal circumstances. The indictment alleges that Foster used his affiliation with the U.S. Senate to gain the victims’ trust and confidence, and that he made various false and fraudulent representations to the victims, which prompted them to send Foster money, which funds he then used for his own personal benefit.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
This case was investigated by the FBI. The case is being prosecuted by Trial Attorneys Kevin Driscoll and Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia.
Foster Indictment
Former Senate Staffer Charged with Wire FraudRead the Press Release
ALEXANDRIA, Va. – Robert Lee Foster, 65, formerly of Falls Church, Virginia, was indicted by a federal grand jury today on charges of wire fraud.
According to the indictment, from 2008 through May 2015, Foster, who is a former career staff member of the U.S. Senate Committee on Commerce, Science and Transportation, devised a scheme to fraudulently obtain money and property from at least three women. The women are not named, but, according to the indictment, Foster targeted them due to their vulnerability—including their age, health, and marital and family situations—and used his status as a current or retired staff member of the United States Senate to gain their trust and confidence. The indictment alleges that Foster made various false and fraudulent representations to the women in order to get them to send him money, approximately $500,000, which they did, and that Foster spent the money they sent him for his own personal use and benefit.
Foster faces a maximum penalty of 20 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division, made the announcement after the indictment was returned.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Jamar Walker and Trial Attorneys Kevin Driscoll and Peter Halpern of the Public Integrity Section in the Justice Department’s Criminal Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15cr148.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Owner of Gallup-Based Oil Distributor Sentenced to Prison for Federal Bankruptcy Fraud ConvictionRead the Press Release
ALBUQUERQUE – Michael P. Mataya, 64, of Thoreau, N.M., was sentenced late yesterday afternoon in federal court in Albuquerque, N.M., to 24 months in prison followed by one year of supervised release for his bankruptcy fraud conviction. Mataya also was ordered to pay restitution in the amount of $265,830.00 to the victims of his offense, who were creditors of his bankrupt company.
Mataya was the sole owner of Indian Capitol Distributing, Inc. (Indian Capitol), a Gallup-based oil and gas distributor, and Mataya’s Travel Plaza, a truck stop in Gallup, N.M. He was indicted on Feb. 26, 2014, and charged with three counts of bankruptcy fraud. Counts 1 and 2 of the indictment charged Mataya with making materially false statements under oath on May 5, 2009 and May 28, 2009, before the U.S. Bankruptcy Court in bankruptcy proceedings involving Indian Capitol. Count 3 charged Mataya with fraudulently transferring assets belonging to Indian Capitol to Mataya’s Travel Plaza.
On Jan. 16, 2015, Mataya pled guilty to Count 2 of the indictment. According to Mataya’s plea agreement, Indian Capitol filed for bankruptcy in April 2009. At the time, the company had dozens of creditors. After the bankruptcy court entered an order permitting Indian Capitol to use cash collateral during an emergency period on the condition that it not transfer assets to any entity owned by Mataya, Mataya provided false testimony before the court to conceal the fact that Indian Capitol was delivering fuel to Mataya’s Travel Plaza without payment in violation of the court’s order.
According to court documents, to disguise the illegal transfer of $265,380.00 of property from the bankruptcy estate of Indian Capitol to his other company, Mataya’s Travel Plaza, Mataya invented a company called Capitol Excavating. Over the course of two hearings in the bankruptcy case, Mataya testified under oath that Capitol Excavating was a long-established account of Mataya’s Travel Plaza and that Capitol Excavating had turned to purchasing fuel from Indian Capitol after its bankruptcy filing. The fiction of Capitol Excavating was exposed when one of the creditors hired an accountant and consultant to look into the financial affairs of Indian Capitol. After conducting an investigation of Capitol Excavating, the accountant and consultant testified in court that there was no company registered in either New Mexico or Colorado under the name of Capitol Excavating.
In entering his guilty plea, Mataya admitted falsely testifying because he knew that the court would not permit the transfer of fuel from Indian Capitol to Mataya’s Travel Plaza. He also admitted falsifying invoices and bills of lading to conceal this unlawful transfer of assets. He acknowledged that the total value of the fuel unlawfully transferred to Mataya’s Travel Plaza was $265,830.00.
This case was referred for prosecution by the office of the U.S. Trustee and was investigated by the Albuquerque Division of the FBI. The case was prosecuted by Assistant U.S. Attorney C. Paige Messec.
Former Owner of Tennessee Company Indicted on Federal Fraud Charges Relating to $9 Million Corporate TransactionRead the Press Release
Angela M. Suddarth, 51, of Orlando, Florida and previously of Goodlettsville, Tennessee, was indicted yesterday by a federal grand jury on fraud charges relating to the sale of a transportation brokerage company, announced David Rivera, United States Attorney for the Middle District of Tennessee. The 22-count indictment charges Suddarth with wire fraud, mail fraud, money laundering, aggravated identity theft, perjury, bankruptcy fraud, and making a false statement to a federal agency.
According to the indictment, Suddarth owned Shipper Direct Logistics, a transportation brokerage company based in Hendersonville, Tennessee. In 2012, Suddarth entered into an agreement to sell her transportation brokerage assets to Echo Global Logistics, a public company based in Chicago, Illinois, for approximately $9 million. In connection with this transaction, Suddarth fraudulently inflated revenue figures and provided false and fabricated financial reports and information to Echo Global Logistics. Suddarth also falsely represented that the financial information had been prepared by a Certified Public Accountant and fabricated emails to appear that information had been sent by the Certified Public Accountant.
The indictment also charges Suddarth with causing a fabricated email that appeared to come from an employee of Echo Global Logistics to be submitted to a U.S. Department of Labor investigator, although no such email was ever actually sent. In addition, the indictment charges Suddarth with making false statements in a sworn affidavit submitted in connection with a federal civil lawsuit and with lying on a bankruptcy petition by falsely stating that she had not earned any income in 2011, 2012, or 2013.
If convicted, Suddarth faces up to 20 years in prison for each count of wire fraud and mail fraud, up to 10 years in prison for each money laundering charge, and up to 5 years in prison for each charge of making a false statement, bankruptcy fraud, and perjury. Suddarth faces an additional 2-year mandatory minimum sentence if convicted on the charges of aggravated identity theft.
The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigation and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Bill Abely.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Former Minister Sentenced to More Than Eight Years for Receipt of Child PornographyRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza has sentenced Mark Daniel DeHaven (33, Winter Garden) to eight years and one month in federal prison for receiving child pornography.
According to the plea agreement, on April 8, 2014, the Winter Garden Police Department received a report from the Seminole County Sheriff’s Office about a cyber-crime tip from the National Center for Missing and Exploited Children. The tip concerned child pornography that was being sent or attempting to be sent over the Internet. Further investigation traced the information to DeHaven’s residence. On June 10, 2014, law enforcement officers executed a search warrant at DeHaven’s residence and seized several computers and electronic media. Forensic analyses of the equipment revealed that DeHaven had received images depicting children engaging in sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Loan Officer Admits Role in $6 Million Mortgage Fraud SchemeRead the Press Release
NEWARK N.J. – A Jackson, New Jersey, man today admitted his role in a large-scale mortgage fraud scheme that used phony documents and straw buyers to acquire over $6 million in loans, U.S. Attorney Paul J. Fishman announced.
Joseph DiValli, 46, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding information charging him with one count of conspiracy to commit wire fraud, one count of wire fraud and one count of tax evasion.
According to documents filed in this case and statements made in court:
From March 2011 through November 2012, DiValli and other conspirators agreed to fraudulently obtain mortgage loans for properties located in North Jersey. After recruiting “straw buyers” to purchase the properties, DiValli and others submitted false and fraudulent loan applications and supporting documents so the straw buyers could qualify for the loans. DiValli and others also used another conspirator, who worked at a bank, to create misleading certifications showing certain bank accounts held more money than they actually had. Divalli and other conspirators also submitted false appraisal reports, back-dated deeds and used unlicensed title agents to close transactions and disburse the mortgage proceeds.
As a loan officer for a North Jersey mortgage lender, DiValli facilitated some of these fraudulent transactions, including a $244,855.26 mortgage on a property located on Smith Street in Elizabeth, New Jersey. Overall, the scheme induced lenders to issue more than $6 million in loans, resulting in several defaults and exposing lenders and the Federal Housing Administration (FHA) to more than $2 million in potential losses.
DiValli also admitted using a separate scheme to modify the mortgage on his personal residence. From March 2011 through June 2012, Divalli used false payroll ledgers and earnings statements to deceive a loan officer into believing that his net earnings were lower than his actual income level.
DiValli also admitted receiving income of more than $450,000 in 2012. In order to avoid taxes of $79,000, DiValli failed to file taxes for 2012 and cashed his paychecks at a check-cashing facility to conceal his income.
The wire fraud and conspiracy counts to which DiValli pleaded guilty are each punishable by a maximum potential penalty of 30 years in prison and a $1,000,000 fine. The tax evasion count is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2015.
U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano Gregory, for their roles in the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Defense counsel: Michael A. Koribanics Esq. Clifton, New Jersey
Former Contracting Officer Pleads Guilty to Bribery in Connection with Awarding of U.S. Postal Service ContractsRead the Press Release
Greenbelt, Maryland – Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service contracting officer, pleaded guilty today to receiving bribes in connection with the awarding of contracts to deliver the mail.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to a factual stipulation filed with the court, Cooper engaged in a course of conduct that consisted of corruptly demanding, seeking, receiving, accepting, and agreeing to receive and accept a stream of benefits from a co-defendant who owned ER&R Transportation and MC&G Trucking LLC, which bid on and secured transportation contracts with the Postal Service for the delivery of the mails. The stream of benefits to Cooper from the co-defendant included $15,900 in cash and the payment of a $7,355 tuition bill for Cooper’s daughter. Total payments to or benefitting Cooper amounted to nearly $26,000.
Cooper admitted that in exchange for these payments, he gave favorable consideration to bids submitted by ER&R Transportation and MC&G Trucking LLC for contracts with the Postal Service. Specifically, as to the nine Postal Service contracts on which the co-defendant bid during the relevant time period, Cooper personally awarded three of those contracts to the co-defendant’s companies, and recommended to his superiors that the other six should likewise be awarded to those companies. As a result, during the relevant time period, the co-defendant was successful in every bid placed with the Postal Service.
Cooper faces a maximum sentence of 15 years in prison for accepting a bribe as a public official. U.S. District Judge George J. Hazel has scheduled sentencing for September 3, 2015 at 10:00 a.m.
U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation. The case is being prosecuted by Assistant U.S. Attorney Arun G. Rao and Trial Attorneys Maria Lerner and Mark Cipolletti of the Criminal Division’s Public Integrity Section.
Former Chief Compliance Officer of Long Island Brokerage Firm Indicted on Fraud and Money Laundering ChargesRead the Press Release
A two-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging William Michael Quigley, the former Chief Compliance Officer of a registered broker-dealer in Woodbury, New York, with conspiracy to commit wire fraud and money laundering conspiracy in connection with a fraudulent investment scheme. Quigley will be arraigned later today before Magistrate Judge Arlene R. Lindsay at the United States Courthouse in Central Islip, New York.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Quigley and his co-conspirators allegedly engaged in a coordinated and sophisticated scheme built on lies and deceit to defraud overseas investors. Rather than use his training and expertise to protect these investors who were told that their money would be invested in well-known U.S. companies and funds, Quigley helped his co-conspirators steal the funds by transferring them to the Philippines and using them for his personal use,” stated Acting United States Attorney Currie. “We are committed to holding accountable those who abuse their positions of trust to deceive the investing public.” Mr. Currie thanked the Securities and Exchange Commission for its significant cooperation and assistance in the investigation.
“Operating under false pretenses, Quigley and his co-conspirators assumed the role of registered brokers who were working in close coordination with regulatory authorities here in the United States. In doing so, they allegedly carried out a scheme to siphon funds from victim investors overseas – a scheme that fueled their own greedy desires. Today’s indictment is a step forward in restoring the public’s trust and a reminder that this type of dishonorable behavior will not go unpunished,” stated FBI Assistant Director-in-Charge Rodriguez.
As alleged in the indictment, the defendant Quigley, together with his co-conspirators, represented to overseas investors that they were brokers at firms registered with the National Association of Securities Dealers (NASD) or the Financial Institution Regulatory Authority Inc. (FINRA) and that they would invest the investors’ money in companies and investment funds such as Dell, Berkshire Hathaway, and BlackRock. In reality, Quigley and his co-conspirators were not registered brokers and did not invest the funds as promised. Instead, Quigley personally opened several bank accounts in New York to receive the investors’ funds, and he and his co-conspirators transferred more than $500,000 of the $800,000 investor funds from these accounts to accounts in the Philippines. Quigley immediately withdrew more than $42,000 in cash for his personal use and made dozens of trips to different banks in an effort to conceal his cash withdrawals.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Quigley faces a maximum sentence of 20 years of imprisonment.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Christopher Ott is in charge of the prosecution.
The Defendant:
WILLIAM MICHAEL QUIGLEY
Age: 47
Seaford, New York
E.D.N.Y. Docket No. 15 CR 258
Former Bradenton Housing Authority Executive Director Pleads Guilty to Theft of Government FundsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Wenston DeSue (44, Bradenton) today pleaded guilty to theft of federal funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from on or about January 1, 2006, until September 19, 2013, DeSue was employed as the Executive Director of the Bradenton Housing Authority (“BHA”). The BHA is a local housing authority agency of the City of Bradenton. Each year, the BHA receives $10,000 or more in federal funds from the U.S. Department of Housing and Urban Development (“HUD”).
An investigation by the HUD, Office of Inspector General and the Federal Bureau of Investigation revealed that between September 2010 and September 2013, DeSue was significantly absent from the BHA on a routine basis, engaged in non-BHA activities during work hours, and failed to take annual or sick leave for those absences. Despite being absent from the BHA much of the time, he accepted his regular salary. DeSue typically arrived at the BHA at least one and a half to three hours late each day, took extended multi-hour lunches, ran personal errands during the work day, and left early from the BHA – all without taking some form of leave. In addition, he spent personal time with the BHA Project Director, Stephany West, with whom he was romantically involved. On numerous occasions, the two spent personal time together during the workday when they should have been working or on some form of leave. On some days, DeSue failed to show up to work at all, yet he still collected payment from the BHA as if he had been at work.
During the period of September 2010 through September 2012, DeSue was absent and engaged in non-BHA activities at least 30 percent of the time. He engaged in the same behavior approximately 60 percent of the time from September 2012 through September 19, 2013. In total, DeSue stole and converted to his own use $204,756.43 from the BHA by taking salary, benefits, and bonuses that he had not earned and to which he was not entitled. He stole another $71,543.60 by cashing out unused annual and sick leave, which he should have otherwise used while spending work hours attending to personal affairs. Thus, DeSue’s actions caused a total loss to the BHA of approximately $276,300.03.
Stephany West pleaded guilty to theft of federal funds on March 20, 2015, and is awaiting sentencing.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Bradenton Police Department. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Simon A. Gaugush.
Former Bank Official Sentenced for Multiple Fraud SchemesRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 90 months’ imprisonment on his convictions of bank embezzlement, bank fraud, mail fraud, tax fraud, conspiracy to commit counterfeiting and aggravated identity theft, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terrrence F. McVerry imposed the sentence on Joseph Graziano, Jr., 29, of Pittsburgh, Pa.
According to information presented to the court, from May 12, 2008 through March 25, 2011, Graziano was employed by Bank of New York Mellon as a Corporate Trust Administrator. In this position, he had the access and ability to wire funds in and out of accounts held by the bank’s corporate trust customers. Graziano used this access to embezzle $2,441,294.35 from Bank of New York Mellon by wiring funds from the corporate trust accounts into his own bank accounts. In federal income tax returns, he failed to report the embezzled funds as income.
In the time before and after Graziano was employed by Bank of New York Mellon, he also engaged in schemes to defraud five other banks including Dollar Bank, First Niagara Bank, First Commonwealth Bank, Ameriserv Financial Bank and PNC Bank. In these schemes, the defendant submitted fraudulent loan documents to induce the banks to extend credit to him.
Following the bank embezzlement and the bank frauds, the defendant began engaging in a new and separate scheme to defraud through the online marketplace www.ebay.com. The defendant defrauded eBay buyers by offering personal electronics for sale on eBay. After the buyers submitted payment to the defendant's PayPal account, the defendant sent the buyers empty boxes, falsely claiming that the boxes' contents had been stolen during shipping. After the defendant had been indicted on charges relating to those offenses, and while he was on pretrial release, the defendant began to engage in new and separate criminal conduct. Only a few months after he was charged in the original indictment, Graziano engaged in a conspiracy to purchase counterfeit United States currency through a source in the Republic of Uganda with the intent to pass the counterfeit currency at retail locations in the United States. The defendant used a stolen identity to set up a mailbox to receive the shipments of counterfeit currency from Uganda and also attempted to open a credit card and bank account using the stolen Identity.
Prior to imposing sentence, Judge McVerry stated that the defendant has cheated and stolen his way through life and that by continuing to commit offenses while on pretrial release, the defendant demonstrated no respect for the law or for himself.
Assistant United States Attorney Tonya Sulia Goodman prosecuted these cases on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, United States Postal Inspection Service, Internal Revenue Service, Criminal Investigation Division, the Department of Homeland Security, Homeland Security Investigations, and the United States Secret Service for the investigation leading to the successful prosecution of Graziano.
Five Plead Guilty to Interstate Heroin Conspiracy and Money Laundering IndictmentRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRED DOUGLAS BROOKS III, age 47, of Houston; DAVID HUMPHRIES, age 46, of Baltimore; and PAUL LEE, age 36, MARLON BARNES, age 38, and GARRY GENTRY, age 31, residents of New Orleans, pled guilty today to a Superseding Indictment charging conspiracy to distribute one kilogram or more of heroin. BROOKS also pled guilty to conspiracy to commit money laundering.
According to court documents, Drug Enforcement Administration (“DEA”) agents, after conducting a series of court-authorized wire intercepts on the cellular phones of New Orleans area heroin dealers, identified BROOKS as a Houston-based heroin trafficker who was distributing multiple kilograms of heroin at a time to the New Orleans area, and further identified HUMPHRIES as one of BROOKS’ couriers who was bringing heroin to, and picking up bulk currency drug debt payments from, New Orleans customers on behalf of BROOKS. LEE, BARNES, and GENTRY then purchased multi-ounce quantities of heroin from one of BROOKS’ wholesale customers to sell it in New Orleans.
BROOKS faces a sentence of twenty years to life, and HUMPHRIES, LEE, BARNES, and GENTRY each face a sentence of ten years to life for their roles in the heroin conspiracy. U.S. District Judge Carl J. Barbier scheduled sentencing for August 20, 2015. Trial as to the remaining defendants is scheduled for July 9, 2015.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF in investigating this matter with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Fred Douglas Brooks III Factual Basis (249.79 KB) Paul Lee Factual Basis (68.67 KB) David Humphries Factual Basis (138.54 KB) Garry Gentry Factual Basis (82.54 KB) Marlon Barnes Factual Basis (115.41 KB)
Fifteen Chinese Nationals Charged in Fraud SchemeRead the Press Release
Fifteen Chinese nationals have been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of conspiracy, counterfeiting foreign passports, mail fraud and wire fraud, U.S. Attorney David J. Hickton for the Western District of Pennsylvania announced today.
The 35 count indictment, returned on May 21, 2015, and unsealed today, names the following 12 individuals as defendants: Han Tong, Xi Fu, Xiaojin Guo, Yudong Zhang, Yue Zou, Biyuan Li aka “Jack Li,” Jia Song, Ning Wei, Gong Zhang, Songling Peng, Siyuan Zhao and Yunlin Sun. The identities of the three additional defendants remain under seal.
According to the indictment, between 2011 and 2015, the defendants engaged in a conspiracy and a scheme to defraud Educational Testing Services (ETS) and the College Board by having imposters take college and graduate school standardized entrance examinations, such as the Test of English as a Foreign Language (TOEFL), the Scholastic Aptitude Test (SAT) and the Graduate Record Examination (GRE). In carrying out the scheme, the conspirators had counterfeit Chinese passports made and sent to the United States, which were used by the imposters to defraud ETS administrators into believing that they were other people, namely the conspirators who would receive the benefit of the imposter’s test score for use at American colleges and universities. The majority of the fraudulent exams taken by the conspirators were taken in western Pennsylvania.
“The perpetrators of this conspiracy were using fraudulent passports for the purpose of impersonating test takers of standardized tests including the SAT, GRE and TOEFL and thereby securing fraudulently obtained admissions to American institutions of higher education and circumventing the F1 Student Visa requirements,” stated U.S. Attorney Hickton. “This case establishes that we will protect the integrity of our passport and visa process, as well as safeguard the national asset of our higher education system from fraudulent access.”
“These students were not only cheating their way into the university, they were also cheating their way through our nation’s immigration system,” said Special Agent in Charge John Kelleghan for Homeland Security Investigations (HSI) of Philadelphia. “HSI will continue to protect our nation’s borders and work with our federal law enforcement partners to seek out those committing transnational crimes and bring them to justice.”
“The State Department’s Diplomatic Security Service (DSS) is committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport fraud and to bring those who commit these crimes to justice,” said Special Agent in Charge David Schnorbus for DSS’s New York Field Office. “If criminal enterprises are able to manipulate instruments of international travel for profitable gain, then national security is at risk.”
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both for each count of wire and mail fraud, 10 years in prison, a fine of $250,000 or both for each count of counterfeiting foreign passports, and five years in prison, a fine of $250,000 or both for conspiracy. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Department of Homeland Security, HSI and the Department of State conducted the investigation leading to the indictment in this case. U.S. Attorney Hickton acknowledged that ETS and the College Board cooperated fully in the investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Inmate Charged with Threatening Correctional OfficialRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Williamsport returned an indictment against an inmate serving a sentence at the United States Penitentiary Allenwood, White Deer, Pennsylvania.
According to United States Attorney Peter Smith, Wynn Sheldon age 50, of Albany, New York is charged with making repeated threats to kill a correctional officer and his family in June and July 2014.
The investigation was conducted by the Federal Bureau of Investigation, and the Federal Bureau of Prisons Special Investigative Service. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for each offense is ten years imprisonment, and a fine of $250,000. 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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Federal Employee Indicted for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Eric Worrell, 57, of Rancho Cordova, charging him with receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, a thumb drive found in a hallway outside the offices of the federal Department of Transportation in Sacramento was turned over to investigators, who determined it belonged to Worrell. A forensic review of the thumb drive and Worrell’s work laptop found they contained hundreds of images of child erotica and child pornography.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Department of Transportation’s Office of the Inspector General. Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
Worrell has remained in custody since his arrest on March 19, 2015. If convicted, Worrell faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Federal Grand Jury in Fort Wayne Returns a Child Pornography Reciept and Possession IndictmentRead the Press Release
Fort Wayne, Indiana - The United States Attorney's Office announced the return of an indictment charging Dillon Douglas Kingsbery, 31, of Huntertown, Indiana with one count of knowingly receiving child pornography along with one count of possession of child pornography.
According to documents filed in this case, on December 30, 2014 and on several other dates, a Detective with the Indiana State Police conducted an online investigation of a peer-to-peer file exchange program known as BitTorrent. During the course of the investigation the detective was able to connect directly with the suspect’s computer and download files that are suspected as child pornography. Following several different downloads of suspected child pornography, the detective was able to track the Internet Protocol (IP) address from which the suspected child pornography was downloaded to the as suspect address. On April 14, 2015, the Indiana State Police executed a search warrant on the address, that was tied to Kingsbery, and found various electronic media devices to which they performed on-scene forensic triage locating in excess of 6000 images and/or videos of suspected child pornography.
This case is being investigated by the Federal Bureau of Investigation and the Indiana State Police with assistance with the Indiana State Police Cyber Crimes Unit also known as the Indiana Internet Crimes Against Children (ICAC) team.
This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor Realizan un Acuerdo con Provident Funding Associates en Resolución de Alegatos de Discriminación en el Otorgamiento de HipotecasRead the Press Release
WASHINGTON – El Departamento de Justicia y la Oficina Para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) (CFPB) presentaron hoy una orden por consentimiento en resolución de alegatos de que Provident Funding Associates (Provident) exhibió un patrón o práctica de discriminación que aumentó los precios de los préstamos para prestatarios afroamericanos e hispanos que obtuvieron hipotecas residenciales entre el 2006 y el 2011 de la red nacional de corredores hipotecarios de Provident.
El acuerdo, que está sujeto a aprobación del tribunal, fue presentado junto con la demanda de las agencias en el Tribunal Federal de Distrito para el Distrito Norte de California. La demanda alega que Provident violó la Ley de Vivienda Justa (FHA, por sus siglas en inglés) y la Ley de Igualdad de Oportunidades de Crédito (ECOA, por sus siglas en inglés) al cobrarles a miles de prestatarios afroamericanos e hispanos cargos más altos en préstamos hipotecarios, no basados en el riesgo que presentaba el prestatario, sino en su raza u origen nacional. Provident cooperó plenamente con la investigación de las agencias sobre sus prácticas de otorgamiento de préstamos y aceptó realizar este acuerdo sin litigio contencioso.
“La División de Derechos Civiles está comprometida a asegurar que todos los tipos de instituciones de préstamo, incluidos los prestatarios mayoristas de hipotecas, cumplan con las leyes de otorgamiento justo de préstamos”, dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta de la División de Derechos Civiles. “Nos complacerá seguir colaborando en el futuro con la Oficina Para la Protección Financiera del Consumidor para proteger a los consumidores contra prácticas de otorgamiento de préstamos ilegales y discriminatorias".
“El acuerdo demuestra que esta Fiscalía Federal dedicará los recursos necesarios para acabar con las prácticas de otorgamiento injusto de préstamos que afectan a los ciudadanos de este distrito”, dijo la Fiscal Federal Melinda Haag del Distrito Norte de California. “La ley es clara: el acceso a los préstamos hipotecarios no debe ser más difícil debido a la raza o el origen nacional del solicitante. Nos complace que Provident haya aceptado poner fin a esta práctica sin la necesidad de un prolongado litigio.
“Nunca se les debe cobrar cargos más altos a los consumidores debido a su raza u origen nacional”, señaló el Director de la Oficina Para la Protección Financiera del Consumidor Richard Cordray. “Seguiremos erradicando las prácticas ilegales y discriminatorias en el otorgamiento de préstamos en el mercado. Me complacerá trabajar estrechamente con nuestros asociados del Departamento de Justicia para asegurar que los consumidores reciban tratamiento justo”.
La demanda se originó de un referido en el 2011 por parte de la Comisión Federal de Comercio (FTC) a la División de Derechos Civiles del Departamento de Justicia. En el 2012, CFPB se unió a la investigación realizada por el Departamento de Justicia.
Bajo los términos del acuerdo propuesto, Provident pagará 9 millones de dólares a un fondo en beneficio de las víctimas de la discriminación hipotecaria supuestamente cometida por Provident. El acuerdo propuesto dispone que un administrador independiente contacte y realice los pagos a prestatarios identificados por las agencias como víctimas de discriminación por parte de Provident, sin ningún costo para los prestatarios. Provident pagará todos los costos y gastos del administrador. Los prestatarios que reúnan los requisitos para la compensación serán contactados por el administrador. El Departamento realizará un anuncio público y publicará información de contacto en su portal de Internet una vez que el administrador comience a comunicarse con las víctimas.
La aplicación de las leyes de otorgamiento de préstamos justos del Departamento de Justicia es conducida por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde su fundación en febrero del 2010, la Unidad de Préstamos Justos ha entablado o resuelto 39 casos de préstamos bajo la Ley de Vivienda Justa, ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas (SCRA, por sus siglas en inglés) . Los acuerdos en estos casos consistieron en más de 1.2 billones de dólares en compensación monetaria para comunidades afectadas y prestatarios individuales. Los reportes anuales del Secretario de Justicia de los Estados Unidos al Congreso sobre la aplicación de ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications/.
La División de Derechos Civiles, la Fiscalía Federal del Distrito para el Distrito Norte de California, la Oficina Para la Protección Financiera del Consumidor y la FTC son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama estableció la Fuerza de Tarea Interagencial de Coacción contra el Fraude Financiero para llevar a cabo una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. Esta fuerza incluye a representantes de una amplia gama de agencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando juntos, aprovechan un poderoso espectro de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar los delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
Para obtener una copia de la demanda, así como información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en http://www.justice.gov/fairhousing.
Eight St. Joseph Residents Among 11 Indicted for $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that eight St. Joseph, Mo., residents are among 11 defendants who have been indicted by a federal grand jury for their roles in a $1 million conspiracy to distribute at least 25 kilograms of methamphetamine.
James Michael Watts, 24, Alan Curtis Mace, 33, Robert R. Atkinson, 37, Jason Scott Valentine, 33, Walter James Kerns, 37, Courtney W. Martin, 32, Daryl Ray Watts, 40, and Kevin Martin Crossfield, 52, all of St. Joseph; Eric Scott Graham, 33, of Savanah, Mo.; and Jack Daniel Loos, 35, and Mark Alan Edmundson, Jr., 40, both of Kansas City, Mo., were charged in an indictment returned under seal by a federal grand jury in Kansas City, Mo., on May 19, 2015. That indictment was unsealed and made public following the arrests and initial court appearances of several defendants on Wednesday, May 27, 2015.
The federal indictment alleges that each of the defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2010, to May 19, 2015.
The indictment also contains a forfeiture allegation, which would require all of the defendants, jointly and severally, to forfeit to the government any proceeds obtained as a result of the alleged violation, including a money judgment of $1,059,600. According to the indictment, this amount is based on a conservative average street price of $1,200 per ounce of 50 percent pure methamphetamine and the total distribution of at least 25 kilograms of methamphetamine during the conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration and the Buchanan County Drug Strike Force.
East Moline Man, Woman Indicted on Charges of Conspiracy, Wire Fraud Stemming from Internet ScamRead the Press Release
Rock Island, Ill. – Arraignment and detention hearings have been scheduled on Monday, June 1, 2015, in federal court for an East Moline, Ill., man and woman charged with participating in a conspiracy to defraud victims using Facebook and email. Barbara Segura, 57, and Frederico Sausedo, 48, both of the 1000 block of Avenue of the Cities, made their initial appearance in federal court in Rock Island today before U.S. District Judge Sara Darrow. Both defendants were ordered to remain detained in the custody of the U.S. Marshals Service pending Monday’s hearing at 11:00 a.m. The grand jury returned the 10-count indictment last week; however, the indictment remained sealed pending the defendants’ court appearance today.
The indictment alleges that from approximately June 2014 to February 2015, Segura and Sausedo conspired with others to target victims using Facebook to offer large amounts of money in the form of prizes or grants. Victims were allegedly told they would receive prizes or grants as long as they first paid taxes and fees to Segura or Sausedo. The indictment alleges that individuals duped by this scheme wired payments to bank accounts held by Segura or Sausedo, but never received prizes or grants. Segura and Sausedo allegedly withdraw the proceeds of the wire transfers and sent much of it to co-conspirators in Nigeria and elsewhere. The indictment alleges that the losses from this scheme were at least $95,000.
If convicted, the offense of conspiracy (one count) to commit wire fraud carries a maximum penalty of five years in prison and a $250,000 fine. If convicted of wire fraud (nine counts), the statutory maximum penalty for each count is 30 years in prison and a fine of up to $1,000,000.
Assistant U.S. Attorney Micah Reyner is prosecuting the case. The charges are the result of an investigation by the East Moline Police Department and the Federal Bureau of Investigation.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Distributor and Enforcer for Atlantic City ‘Dirty Block’ Gang Sentenced to 10 Years in Prison for Heroin Trafficking Conspiracy and Firearms OffenseRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 120 months in prison for engaging in a conspiracy to distribute heroin on behalf of the “Dirty Block” criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J Fishman announced.
Kamal Allen, a/k/a “Geez,” a/k/a “Maly Geez,” 27, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and one count of possessing a firearm and ammunition while being a previously convicted felon. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this and other cases and statements made in court:
Allen acted as a distributor and enforcer on behalf of one of the gang’s leaders, Mykal Derry, 32, of Atlantic City. Allen helped Dirty Block distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court, in Atlantic City. Allen was arrested on March 26, 2013. Allen said in court that he and others travelled with Derry to a shooting range in Lakewood, New Jersey, on Jan. 20, 2013, where Allen – a previously convicted felon – used, possessed, and discharged a firearm. Allen and other members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
In addition to the prison term, Judge Irenas sentenced Allen to serve 10 years of supervised release.
The charges against Derry are merely allegations, and he is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz, and Special Assistant U.S. Attorney Edmond Malqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Jerome A. Ballarotto Esq., Trenton, New JerseyDelaware County Man Indicted on Child Pornography ChargesRead the Press Release
Tariq Haitham Alkhudayri, 28, of Glen Mills, Pennsylvania, was charged today by indictment with one count each of distribution of child pornography, receipt of child pornography, and possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on or about August and November 2014, Alkhudayri distributed, received, and possessed images of child pornography.
If convicted the defendant faces a maximum possible sentence of 50 years in prison and a mandatory minimum sentence of five years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Criminal Investigation Division of Delaware County and the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant Pleads Guilty to Conspiring to Provide Material Support to Al-Qa’ida, Al-Qa’ida in Iraq/Al-Nusrah Front, and Al-ShabaabRead the Press Release
Mohamed Hussein Said, 27, of Nairobi, Kenya, pled guilty to one count of conspiring to provide material support to three designated Foreign Terrorist Organizations al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab, in violation of Title 18, United States Code, Section 2339B. Said faces a maximum statutory sentence of fifteen years in prison.
Sentencing for Said is scheduled for August 14, 2015, before U.S. District Court Judge Ursula Ungaro.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Said was charged along with Gufran Ahmed Mohammed in a fifteen-count indictment with conspiring to provide, and attempting to provide, material support to the Foreign Terrorist Organizations.
Said pled guilty to count 1 of the indictment, filed in Case No. 20364-CR-Ungaro, charging that Said conspired with Mohammed and other individuals to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. Mohammed sent a series of wire transfers to Said for the purpose of supporting al-Shabaab, and to an individual whom they believed was a fundraiser, recruiter, and supplier for al-Qa’ida and AQI/al-Nusrah Front for the purpose of supporting al-Qa’ida and AQI/al-Nusrah Front. Said also served as a contact and recruiter of foreign fighters from the United Kingdom and elsewhere traveling to Somalia to join al-Shabaab. In addition, Said and Mohammed agreed to support al-Qa’ida and AQI/al-Nusrah Front by recruiting and moving experienced al-Qa’ida and al-Shabaab fighters to the conflict in Syria.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Brian Frazier and Ricardo Del Toro and Trial Attorney Jolie Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.
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.
Darius Williams Sentenced to 12 Years ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Darius Williams, 31, of South Bend, Indiana, was sentenced today, for distribution of heroin. Williams was sentenced to 12 years imprisonment and 6 years of supervised release.
According to documents in the case, in September of 2014, the United States Drug Enforcement Agency, the Elkhart County Prosecutor’s Office Interdiction and Covert Enforcement Unit (Elkhart ICE Unit), the South Bend Police Department Metro Special Operations Section (South Bend MSOS), the Indiana State Police and the U.S. Bureau of Alcohol Tobacco and Firearms initiated an investigation into heroin trafficking by several individuals operating in South Bend, Indiana. Through the course of the investigation an individual named Darius Williams was identified as consistently dealing heroin during the years of 2013 and 2014. During a search of Williams’ residence in South Bend, investigators found and seized a loaded firearm that was used during the course of heroin dealing.
This case was the result of an investigation by the United States Drug Enforcement Agency, the Elkhart County Prosecutor’s Office Interdiction and Covert Enforcement Unit (Elkhart ICE Unit), the South Bend Police Department Metro Special Operations Section (South Bend MSOS), the Indiana State Police and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
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Cordova Man Sentenced to 50 Years for Attempted Murder of Four SoldiersRead the Press Release
Memphis, TN – A Cordova man convicted of assault with intent to murder four soldiers at the Millington Army National Guard Recruiting Center has been sentenced to 50 years in federal prison.
On October 24, 2013, Amos Patton, 43, was directed by his commanders to come to the Tennessee Army National Guard Recruiting Center at 5650 Attu, Millington, TN. During the meeting, Patton was notified that he was being relieved of duty, recommended for reduction in rank, and recommended for separation from the active guard reserve because of misconduct.
Following the meeting, Patton was directed to return government equipment believed to be in his government vehicle. When he returned from the car, Patton had in his possession a "fanny pack" containing a loaded 9mm semiautomatic Glock pistol and 50 additional rounds of ammunition. When Patton attempted to pull the pistol from the pack, one of the Tennessee Army National Guardsmen yelled a warning.
At that point, Command Sergeant Major Christopher Crawford and Major William Crawford attempted to subdue Patton. Patton managed to fire his pistol six times, striking three Tennessee Army National Guard personnel in his chain of command. These individuals included Major William Crawford, Sergeant Major Ricky McKenzie, and Lieutenant Colonel Hunter Belcher. Although Patton pointed the pistol at Command Sergeant Major Christopher Crawford, no rounds struck him. Patton then ran from the building, but was later caught by several soldiers and held until Millington Police Department officers arrived and arrested him.
Today, U.S. District Judge John T. Fowlkes sentenced Patton to a total of 50 years: 40 years for four counts of assault with intent to commit murder and 10 years for discharging a firearm during a federal crime of violence. He was also ordered to serve five years of supervised release post-incarceration.
"Patton’s 50-year prison sentence is a stark example of the consequences that come from committing violent crimes in the jurisdiction of the federal government," said U.S. Attorney Edward Stanton III. "He will now have decades in prison to regret the unspeakable acts he perpetrated upon his fellow soldiers."
This case was investigated by the Memphis Division of the Federal Bureau of Investigation and Naval Criminal Investigative Service. Assistant U.S. Attorneys Fred Godwin and Mark Erskine represented the government in the case.
Convicted Sex Offender on Parole Charged in Federal Court with Distributing Child PornographyRead the Press Release
RIVERSIDE, California – A convicted sex offender who is on parole for having unlawful sexual intercourse with a minor has been charged in federal court for allegedly distributing child pornography over the Internet.
Andrew Harrison Fowler, 25, of Murrieta, was named in a criminal complaint filed yesterday in United States District Court. Fowler, who was free on bail in a related case filed by the Riverside County District Attorney, was arrested by federal authorities yesterday afternoon, and he is expected to make his initial appearance in federal court this afternoon.
The affidavit in support of the federal complaint describes how Fowler’s employer in Corona suspected he was accessing child pornography and contacted Fowler’s parole officer. Investigators assigned to the Riverside County District Attorney’s Office Sexual Assault and Felony Enforcement Team (SAFE Team)/Internet Crimes Against Children Unit executed a search warrant to obtain information about Fowler’s Hotmail account, and discovered that he had sent emails containing child pornography. The investigation revealed that Fowler exchanged numerous images of child pornography with two other individuals and was actively soliciting sexual encounters on Craigslist. Investigators also discovered Fowler used aliases to disguise his true identity and avoid detection of his online activities by his parole agent.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If he is convicted of the crime of distributing child pornography, Fowler, as a result of his prior conviction, would face a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 40 years.
The investigation of Fowler is a joint effort between the Riverside County District Attorney’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Fowler is currently on parole after serving a prison term resulting from a case prosecuted by the San Diego County District Attorney’s Office in which he was convicted of three counts of having unlawful sexual intercourse with girls between the ages of 13 and 17.
Release No. 15-052
Convicted Felon Sentenced to Ten Years for Possession of Ammunition in Connection with 2010 Lakeland HomicideRead the Press Release
Tampa, FL– U.S. District Judge Steven D. Merryday today sentenced Matthew Anillo Mango (32, Lakeland) to 10 years in federal prison for being a convicted felon in possession of ammunition. This charge stemmed from the 2010 homicide of Lakeland resident Amanda Peterson. Mango pleaded guilty on June 24, 2014.
According to court documents, on September 30, 2010, at approximately 4:00 a.m., the Lakeland Police Department responded to a shooting at Peterson’s residence, where she was discovered on the living room floor with a gunshot wound to her abdomen. Peterson was transported to the hospital, but died as a result of her injuries. Peterson’s death was the result of an unintentional discharge of a firearm, which occurred during an argument between Mango and another individual. After Peterson was shot, Mango and other witnesses fled the scene. Although the firearm that killed Peterson was not recovered, law enforcement linked the spent shell casing and a loaded magazine containing matching ammunition to Mango through fingerprints and other evidence. At the time of the shooting, Mango was a multi-convicted felon and prohibited from possessing a firearm or ammunition.
This case is another example of ATF’s Frontline Strategy to impact violent crime in our communities. It was investigated by ATF and the Lakeland Police Department. Assistant United States Attorney Josephine W. Thomas prosecuted the case.
Convicted Felon Sentenced to 188 Months in Federal PrisonRead the Press Release
Charles Eugene Franklin, 34, of Murfreesboro, Tenn., was sentenced yesterday, by United States District Court Judge Todd J. Campbell, to 188 months in federal prison for being a convicted felon in possession of a firearm and possession with intent to distribute cocaine and cocaine base, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Franklin was initially charged in October 2013 and pleaded guilty in August 2014.
“When repeat offenders continue to engage in criminal conduct, without regard for previous punishment, we will bring federal resources and invoke appropriate federal statutes as we seek to remove them from the community for a long period of time,” said U.S. Attorney David Rivera. “There is no parole in the federal system.”
Franklin has a lengthy criminal history including multiple prior felony convictions for drug offenses in Middle Tennessee. As a result of those convictions, Franklin is prohibited by law from possessing a firearm.
On October 3, 2013, law enforcement officials executed two search warrants of residences in Murfreesboro that Franklin had ties to. Officers seized more than 47 grams of cocaine and nearly 80 grams of cocaine base, packaged in multiple separate bundles, as well as $5,797 in cash, a set of digital scales and a loaded Glock .357 caliber pistol that was later determined to be stolen from a Tennessee State Trooper.
ATF Special Agent in Charge Steven L. Gerido remarked, “This focused investigation will have a lasting impact on reducing firearms related violence and taking drugs off the streets of the Murfreesboro area. ATF’s “Frontline” strategy to reduce violent crime demonstrates the collective resources of ATF and the Murfreesboro Police Department to identify violent criminals who lessen the quality of life in our neighborhoods.”
“This is another example of how our detectives and federal agents can partner to better protect the citizens of Murfreesboro,” said Murfreesboro Chief of Police Glenn Chrisman. “Working together, our agencies brought an individual who was a convicted felon and known drug dealer to justice, where he will face the consequences of his illegal activities. We will continue working with our federal law enforcement partners to place violent criminals behind bars.”
This matter was investigated by the Murfreesboro Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The United States was represented by Assistant U.S. Attorney Joe Montminy.
Collier County Man Sentenced for Possessing Unauthorized Access Devices and Aggravated Identity TheftRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Rafael Angel Reyes Menjivar (23, Naples) to three years in prison for possessing 15 or more unauthorized access devices and for aggravated identity theft. Reyes Menjivar pleaded guilty on February 25, 2015.
According to his plea agreement, on February 5, 2013, during the execution of a search warrant by the Collier County Sheriff’s Office, Reyes Menjivar was found to be in possession of 101 unauthorized access devices, namely Social Security Numbers (SSN) of other individuals. He possessed these SSNs with the intent to file fraudulent income tax returns. Approximately 16 income tax returns were electronically filed with the IRS using the personal identification information of others without lawful authority. The total amount of the requested tax refunds was $64,547. Each of the tax refunds was stopped at the service center.
This case was investigated by the United States Secret Service and the Internal Revenue Service - Criminal Investigation, with assistance from the Collier County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Citrus County Convicted Felon Sentenced for Possession of 138 Firearms and AmmunitionRead the Press Release
Ocala, Florida – Senior United States District Judge Wm. Terrell Hodges today sentenced Michael Paul Watkins (41, Citrus Springs) to six years and six months in federal prison for possession of firearms and ammunition by a previously convicted felon. Watkins pleaded guilty on February 26, 2015.
According to court documents, Watkins had been previously convicted in state court on felony offenses of handling and fondling a child under the age of 16, and two escapes. As a convicted felon, he was prohibited from possessing firearms and ammunition under federal law. However, in early October 2014, law enforcement received information that Watkins had been using a third party to illegally purchase firearms and ammunition on his behalf. Federal agents obtained search warrants for Watkins’s home, business, and a nearby property. Upon executing the warrants, agents recovered 138 firearms, including many AK-47 and AR-15 rifles, and more than 30,000 rounds of ammunition inside his fortified home. They also discovered several fully assembled pipe bombs, along with the components to manufacture pipe bombs.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Citrus County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.
Chubbuck Man Pleads Guilty to Bank Robberies in Idaho and UtahRead the Press Release
POCATELLO – Randy Ted Jordan, 45, of Chubbuck, Idaho, and Montana, pleaded guilty today in United States District Court to bank robberies committed in Idaho and Utah, U.S. Attorney Wendy J. Olson announced.
On July 26, 2014, Jordan entered the Idaho State University Credit Union at 4914 Yellowstone, Chubbuck, Idaho, and asked an employee how much money it took to open an account. He then left the bank. He returned moments later and said he wanted to open an account. He sat at the manager’s desk and then said he had forgotten to bring the money so he left the bank again. He returned several minutes later and walked behind the counter where the employees work. He lifted his shirt and displayed a handgun, which was tucked into his waistband. Jordan demanded the money from the drawers and two tellers removed the money from their drawers and gave it to the defendant. Jordan removed his gun from his waistband and took the tellers to a back room where he tied their hands with zip ties. He then left the bank.
On August 7, 2014, Jordan entered the Bank of Utah at 115 Washington Blvd. in Ogden, Utah. He approached one of the teller windows, placed a device on the counter, and said, “This is a bomb, give me all your money. If I press a button on my cell phone it will go off.” Jordan had a cell phone in his hand. The device on the counter was the size of a cell phone, wrapped in gray or silver tape, similar to duct tape. Jordan told all three tellers to give him the money from their drawers, which they did. He then left the bank.
Jordan also agreed that the court could use bank robberies in Coeur d’Alene, Idaho, and in West Jordan, Utah, in imposing sentence.
Bank robbery is punishable by up to up to twenty five years of imprisonment, a fine of up to $250,000, and up to five years of supervised release.
Jordan is scheduled to be sentenced on August 11, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Chubbuck Police Department; Pocatello Police Department; Bannock County Sheriff’s Office; Idaho Falls Police Department Bomb Squad;
Ogden, Utah, Police Department; West Jordan, Utah, Police Department; and the Federal Bureau of Investigation.
Bridgeport Man Involved in Drive-By Shooting Sentenced to 6 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RASHAD DANCY, 26, of Bridgeport, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 72 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, in the afternoon of May 5, 2014, Bridgeport Police responded to a report of shots fired in front of house on Shelton Street, during which a resident of house was nearly struck. Witnesses reported the gunfire came from a red Ford Fusion, and subsequent analysis of surveillance camera videos confirmed the reports. Officers also recovered several 7.62x39 ammunition casings at the scene.
Police then located a red Ford Fusion on Willow Street and saw DANCY enter the car and drive away. Officers stopped the car, questioned DANCY and recovered a spent rifle cartridge head stamped “762x39.” DANCY then consented to a search of his residence, where officers seized a loaded .45 caliber semi-automatic handgun, as well as drug packaging materials.
The investigation revealed that DANCY had rented a red Ford Fusion in April 2014 and, that on May 2, 2014, a friend of DANCY’s had been shot and killed during an altercation at a Danbury nightclub. The Shelton Street residence where the drive-by shooting occurred was the home to individuals who were involved in an altercation at that nightclub on May 2.
DANCY’s criminal history includes convictions related to trafficking heroin and marijuana. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
DANCY has been detained since his arrest on May 5, 2014. On March 2, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Belleville Man Sentenced for Heroin and Cocaine DistributionRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ronald G. Murphy, age 53, formerly of Belleville, Illinois, was sentenced to 24 months in federal prison on Wednesday, May 27, 2015. Murphy had previously pled guilty on February 3, 2015 to two federal charges: 1) Conspiracy to Distribute Heroin and Cocaine; and 2) Attempted Distribution of Heroin.
According to evidence introduced at Murphy’s change of plea hearing in February, Murphy worked as a drug courier between December 2013 and April, 2014. Murphy took cash from Belleville to Chicago, and brought heroin and cocaine back to Belleville for re-sale in the Metro East area.
Murphy was arrested by DEA agents at a bus station in St. Louis, Missouri on April 18, 2014. At the time of Murphy’s arrest, police seized 45 grams of heroin (slightly less than 2 ounces) which Murphy had intended to deliver to a drug dealer in Belleville. Murphy has been confined in federal custody since October 17, 2014.
The investigation which resulted in Murphy’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA).
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Baltimore Area Drug Dealers Sentenced for Conspiracy to Distribute Kilograms of CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett has sentenced three co-defendants in a Baltimore area drug conspiracy. Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland was sentenced today to 10 years in prison, followed by five years of supervised release, for attempted possession with intent to distribute cocaine. On May 27, 2015, Judge Bennett sentenced Antoine DeMarr Washington, age 42, of Washington, D.C. and Donte Eugene Taylor, age 39, of Baltimore, to 12 years in prison and five years in prison, respectively, each followed by five years of supervised release. Washington and Taylor had previously pleaded guilty to attempted possession with the intent to distribute cocaine and heroin.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to court documents and their plea agreements, on August 11, 2014, the defendants were contacted by a cooperating individual (CI) concerning their desire to obtain drugs. As a result of the call from the CI, Agnant indicated to the CI that he wanted to purchase five kilograms of cocaine and Taylor indicated a desire to purchase cocaine and heroin. Agnant and Taylor went to meet the CI and were arrested. Washington traveled with co-defendant Vincent Cooper to meet the CI in order to purchase five kilograms of cocaine and one kilogram of heroin. Law enforcement saw Washington and Cooper arrive at the arranged meeting place and they were arrested. Between Washington and Cooper they had with them more than $223,000 to purchase the drugs.
Vincent Cooper, age 47, of Washington, D.C., was sentenced to 11 years in prison, for his participation in the drug conspiracy and co-defendant Tavon Alexander Louis Hopkins, age 38, of Baltimore also pleaded guilty and was sentenced to three years in prison.
On March 20, 2015, a federal jury today convicted co-defendants Jermaine Cannady, a/k/a “Main,” age 39; Cornell Dion Brown, a/k/a “Nelly,” age 29; Dominic William Parker, a/k/a “Nick,” age 30, all of Baltimore; and Ronald Timothy Sampson, a/k/a “Little Ronald,” age 35, of Windsor Mills, Maryland for conspiracy to distribute kilograms of cocaine and/or heroin, and for attempting to possess with intent to distribute cocaine and/or heroin. Each faces a mandatory minimum sentence of 10 years in prison and up to life in prison for conspiring to distribute and possess with intent to distribute cocaine and/or heroin, and for attempted possession with intent to distribute cocaine and/or heroin. Judge Bennett has scheduled sentencing for Sampson, Parker, Cannady and Brown on June 24, June 26, June 29, and June 30, 2015, respectively.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who are prosecuting the case.
Bakersfield Man Indicted on Federal Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Bryson LaPaul Blair, 29, of Bakersfield, charging him with possession of a firearm and ammunition after having been convicted of a felony and domestic violence misdemeanor, United States Attorney Benjamin B. Wagner announced.
According to court documents, during the execution of a search warrant at Blair’s residence, officers found a loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of a felony and a misdemeanor spousal abuse and was prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. The case is part of Project Safe Neighborhoods (PSN), which is the U.S. Department of Justice’s primary initiative to combat gun crime and gang-related violence. Assistant United States Attorney Karen Escobar is prosecuting the case.
If convicted, Blair faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Attempted Purchase of Cocaine Leads to 10-Year Federal Prison SentenceRead the Press Release
Ocala, Florida – U.S. District Judge Wm. Terrell Hodges today sentenced Bryant Dewayne Simmons (30, Lake County) to 10 years in federal prison for the attempted possession with the intent to distribute five kilograms or more of cocaine. In a separate proceeding, Simmons previously forfeited approximately $150,000, two trucks, and a handgun that were involved in the crime. He pleaded guilty on October 16, 2014. His co-defendant, William Foy Robinson, has also entered a guilty plea and is awaiting sentencing.
According to court documents, Simmons unwittingly met with an undercover federal agent in July 2014 to arrange a drug transaction. Simmons believed that the agent was a drug supplier and had asked to purchase multiple kilograms of cocaine from him. Simmons promised to buy a total of 8 kilograms of cocaine for $33,000 each.
On July 17, 2014, Simmons and Robinson met the undercover agent in a parking lot in Lake County to complete the purchase. While Robinson served as a lookout, the agent showed Simmons five kilograms of cocaine and promised to deliver an additional three kilograms on credit. After Simmons retrieved approximately $150,000 in cash that he had concealed inside of two trucks, agents placed both men under arrest.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Amite Woman Sentenced for Theft of Bank FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGELA LEMOINE, 43, of Amite, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with theft of funds.
U.S. District Judge Carl J. Barbier sentenced LEMOINE to three years probation and 50 hours of community service.
According court documents, from approximately November 2005 until approximately March 1, 2013, LEMOINE worked for First NBC Bank as a manager at the Kentwood Branch. LEMOINE, admitted to stealing $14,000 by forging a customer’s signature on a maturing Certificate of Deposit (CD). Specifically, on August 6, 2012, LEMOINE withdrew $14,000 from a customer’s CD which was maturing, forged the customer’s signature, and had a teller advance her the $14,000 in cash, which she kept in her possession. LEMOINE signed a hand written confession on March 1, 2013 acknowledging that she stole $14,000. LEMOINE has made full restitution to the bank.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this case. Assistant United States Attorney Carter K. D. Guice, Jr. was in charge of the prosecution.
Americus Man Sentenced to 210 Months for Producing Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Douglas Roseth, 23, of Americus, Georgia was sentenced to 210 months in prison by the Honorable Clay D. Land, Chief U.S. District Court Judge, on May 28, 2015 in Columbus, Georgia. Mr. Roseth will also be required to register as a sex offender upon his release from prison and be on lifetime supervision.
On January 20, 2015, Mr. Roseth entered a plea of guilty to production of child pornography admitting that he posed as a teenage girl on social media chats and enticed young boys to masturbate and expose themselves to him. Sexually explicit screenshots of these chats were found by the United States Secret Service after they assumed the investigation and forensically examined Mr. Roseth’s computers. Secret Service agents were able to track down several of the boys who identified sexually explicit screen shots of themselves that had been taken during social media chats. Each boy stated they had been enticed to do so by what they presumed to be a teenage girl while on a social media site.
“The actions for which Mr. Roseth stands convicted are those of a sexual predator,” said U.S. Attorney Michael Moore. “The sentence imposed today ensures that he will not be victimizing our youth in such a fashion for the next 17 ½ years. I appreciate the fine work of our law enforcement partners in bringing Mr. Roseth to justice.”
"The United States Secret Service and our law enforcement partners strive to stay ahead of the new challenges of criminals using digital technology to exploit our citizens. Today’s sentence should serve as a reminder that cyber criminals are criminals nonetheless and they will not get away with taking advantage of unsuspecting victims without bearing the consequences,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
The case was investigated by the United States Secret Service, as well as the Harris County Sheriff’s Office, the Georgia Bureau of Investigation, the Columbus Police Department, and the National Center for Missing and Exploited Children. Assistant United States Attorney Crawford L. Seals prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Albuquerque Man Sentenced to Federal Prison for Unlawful Possession of Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Aaron Ortiz, 31, of Albuquerque, N.M., was sentenced today in federal court to 92 months in prison followed by three years of supervised release for violating the federal firearms laws.
Ortiz was arrested in June 2014, and charged in an indictment with unlawfully possessing a pistol with an obliterated serial number and ammunition. At the time of his arrest, Ortiz was prohibited from possessing firearms or ammunition because he previously had been convicted of armed robbery.
On Jan. 20, 2015, Ortiz entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Victor Sanchez, Jr., 45, of Albuquerque, N.M., pleaded guilty this morning in federal court to heroin trafficking charges under a plea agreement with the U.S. Attorney’s Office. Under the terms of his plea agreement, Sanchez will be sentenced to 60 months in prison followed by a term of supervised release to be determined by the court.
During today’s proceedings, Sanchez pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Sanchez admitted that on Oct. 28, 2013, deputies of the Bernalillo County Sheriff’s Office executed a search warrant at his residence where they seized approximately 240 grams of heroin. Sanchez further admitted that when deputies approached his residence he attempted to flush the heroin down a toilet but deputies entered the bathroom before he could do so.
Sanchez was remanded into the custody of the U.S. Marshalls Service pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
15 Chinese Nationals Charged in Fraud SchemeRead the Press Release
Imposters Using Fake Passports Took College, Grad School Entrance Exams for Prospective Foreign Students
PITTSBURGH—Fifteen Chinese nationals have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, counterfeiting foreign passports, mail fraud and wire fraud, United States Attorney David J. Hickton announced today.
The 35-count indictment, returned on May 21, and unsealed today, names the following 12 individuals as defendants: Han Tong, Xi Fu, Xiaojin Guo, Yudong Zhang, Yue Zou, Biyuan Li (aka “Jack Li”), Jia Song, Ning Wei, Gong Zhang, Songling Peng, Siyuan Zhao and Yunlin Sun. The identities of the three additional defendants remain under seal.
According to the indictment, between 2011 and 2015, the defendants engaged in a conspiracy and a scheme to defraud Educational Testing Services (ETS) and the College Board by having imposters take college and graduate school standardized entrance examinations, such as the Test of English as a Foreign Language (TOEFL), the Scholastic Aptitude Test (SAT), and the Graduate Record Examination (GRE). In carrying out the scheme, the conspirators had counterfeit Chinese passports made and sent to the United States, which were used by the imposters to defraud ETS administrators into believing that they were other people, namely the conspirators who would receive the benefit of the imposter’s test score for use at American colleges and universities. The majority of the fraudulent exams taken by the conspirators were taken in western Pennsylvania.
“The perpetrators of this conspiracy were using fraudulent passports for the purpose of impersonating test takers of standardized tests including the SAT, GRE and TOEFL, and thereby securing fraudulently obtained admissions to American institutions of higher education and circumventing the F1 Student Visa requirements,” stated U.S. Attorney Hickton. “This case establishes that we will protect the integrity of our passport and visa process, as well as safeguard the national asset of our higher education system from fraudulent access.”
“These students were not only cheating their way into the university, they were also cheating their way through our nation’s immigration system,” said John Kelleghan, Homeland Security Investigations Philadelphia Special Agent in Charge. “HSI will continue to protect our nation’s borders and work with our federal law enforcement partners to seek out those committing transnational crimes and bring them to justice.”
“The State Department’s Diplomatic Security Service (DSS) is committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport fraud, and to bring those who commit these crimes to justice,” said David Schnorbus, Special Agent in Charge for DSS’s New York Field Office. “If criminal enterprises are able to manipulate instruments of international travel for profitable gain, then national security is at risk.”
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both for each count of wire and mail fraud, 10 years in prison, a fine of $250,000 or both for each count of counterfeiting foreign passports, and five years in prison, a fine of $250,000 or both for conspiracy. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigations and the Department of State conducted the investigation leading to the indictment in this case. U.S. Attorney Hickton acknowledged that ETS and the College Board cooperated fully in the investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
27 May 2015
Wisconsin Farmer Charged with Crop Insurance FraudRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a federal grand jury returned an indictment charging Jeffrey Lewke (age: 37) of Beaver Dam, Wisconsin with nine counts of crop insurance fraud. Mr. Lewke operated a large farming operation, farming as many as 12,000 acres in Wisconsin during 2011 and 2012.
The United States Department of Agriculture (“USDA”), through the Federal Crop Insurance Corporation (“FCIC”), provides insurance to farmers for unavoidable crop losses. The FCIC provides insurance by reinsuring private crop insurance companies for losses claimed by their policy holders.
According to the indictment, from 2009 through 2013, Lewke knowingly devised and executed a scheme to defraud a crop insurance company that was reinsured by the FCIC in a number of ways,including the following:
a. falsely representing that he was prevented from planting corn due to excessive moisture on land that was actually planted with corn, land that he did own or lease, land that established waterways, and land that was fenced-off for livestock;
b. falsely representing that he irrigated land more times than he actually did;
c. falsely representing that he sold damaged crops to a third party by submitting a receipt of a cancelled transaction to the crop insurance company;
d. falsely representing the county from which he harvested corn so as to increase his insurance claim; and
e. falsely underreporting his crop production so as to increase his insurance claim.
Counts One through Three of the indictment charge Mr. Lewke for using interstate wires in the execution of his scheme to defraud. Each count carries a maximum of 20 years in prison, a $250,000 fine, and 3 years of supervised release. Counts Four through Nine of the indictment charge Mr. Lewke for making false statements with the purpose of influencing a crop insurance company that was reinsured by the FCIC. Each count carries a maximum of 30 years in prison, a $1,000,000 fine, and 5 years of supervised release.
Mr. Lewke was charged after a long-term investigation by the United States Department of Agriculture – Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Wichita Man Charged in 2013 Bank RobberyRead the Press Release
WICHITA, KAN. – A federal grand jury Wednesday indicted a Wichita man in a 2013 bank robbery, U.S. Attorney Barry Grissom said.
Frederick Aaron Cunningham, 45, who is in custody in Wisconsin on unrelated charges, was charged with one count of bank robbery. The indictment alleges that on Oct. 28, 2013, Cunningham robbed the Intrust Bank branch inside the Dillons store at 3211 S. Seneca.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
OTHER FEDERAL GRAND JURY INDICTMENTS
Dontreal D. Banks, 28, Wichita, Kan, is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of ammunition following a felony conviction. The crimes are alleged to have occurred Feb. 23, 2015, in Sedgwick County, Kan.
If convicted, a maximum penalty of 10 years and a fine up to $250,000 on each count. The Wichita Police Department and the Kansas Department of Corrections investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Stephen Barnhart, 49, Wichita, Kan., is charged with one count of attempted manufacture of methamphetamine, two counts of possession of materials used in the manufacture of methamphetamine, one count of possession and distribution of chemicals used to manufacture methamphetamine, one count of possession with intent to distribute cocaine, three counts of unlawful possession of a firearm in furtherance of drug trafficking, five counts of unlawful possession of a firearm and ammunition by a user of controlled substances, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in September 2011 and December 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Attempted manufacture of methamphetamine: A maximum penalty of 20 years and a fine up to $250,000.
Possession of materials used to manufacture methamphetamine: A maximum penalty of 10 years and a fine up to $250,000 on each county.
Possession and distribution of chemicals used to manufacture methamphetamine: A maximum penalty of 10 years and a fine up to $250,000.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $1 million.
Possession of a firearm in furtherance of drug trafficking: A maximum penalty of five years (consecutive) and a fine up to $250,000 on each count.
Unlawful possession of a firearm by user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Possession with intent to distribute methamphetamine: Not less than five years and not more than 40 years and a fine up to $2 million.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Luis Perez-Morales, 32, Las Vegas, Nevada, is charged with one count of possession with intent to distribute methamphetamine and one count of traveling from Nevada to Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred May 18, 201 in Thomas County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $500,000 on the possession with intent to distribute charge, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Sergio Tapia-Martinez, 41, Emporia, Kan., is charged with unlawfully re-entering the United States after having been convicted of an aggravated felony and deported. He was found May 21, 2015, in Lyon County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement and the Kansas Department of Revenue investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Emmanuel Rodriguez-Torres, 30, a citizen of Mexico, is charged with assaulting an employee of the Department of Homeland Security in the performance of his duties. The crime is alleged to have occurred May 6, 2015, in Barton County, Kan.
If convicted, he faces a maximum penalty of eight years in federal prison and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Augustine Diego Mateo-Gonzalez, 37, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found May 8, 2015, in Dodge City, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan J. Martinez, 54, Dodge City, Kan., is charged with one count of possession with intent to distribute approximately 10 pounds of methamphetamine. Co-defendant Oscar Natividad Pena-Cano, 47, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. They were arrested April 21, 2015, in Dodge City, Kan.
If convicted Martinez faces a maximum penalty of 20 years in federal prison and a fine up to $1 million. Pena-Cano faces a maximum penalty of two years and a fine up to $250,000. The Ford County Sheriff’s Department, the Wichita Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Rafael Reyes, 23, Wichita, Kan., is charged with one count of unlawful possession of a sawed off shotgun and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred May 15, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $10,000 on the first count and a maximum penalty of 10 years and a fine up to $250,000 on the second count. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Shawn D. McCollum, Jr., 28, Claflin, Kan., is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Sept. 19, 2014, in Lyons, Kan.
If convicted, he faces a penalty of not less than five years and a fine up to $250,000 on the firearm charge, and a penalty of not less than five years and a fine up to $2 million on the drug charge. The Lyons, Kan., Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Westerville Man Charged with Defrauding Elderly Victim Out of $1.3 MillionRead the Press Release
COLUMBUS, Ohio – A federal grand jury in Columbus, Ohio has charged Mark Preston French, 40, of Westerville, Ohio, with scheming to defraud an elderly individual by advising the person to invest in gold and silver through him as an investment advisor, then keeping for himself money, gold, and silver from precious metals commodity transactions that were funded by the individual.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment returned yesterday.
The indictment alleges that French acted as a broker for the victim, who was a client at a time when French worked at Investors Security Company, Inc. French held himself out at an investment advisor for the elderly victim, who he advised to open with him joint bank accounts in their names so that French could receive funds for purchases of gold and silver. Once French opened to those joint bank accounts the elderly victim transferred money to the accounts so that French could use the money to invest in precious metals, including gold and silver. He also had the elderly victim agree not to tell people about their investment arrangement.
According to the indictment, after opening a joint checking account and a joint savings account with his victim, the defendant spent more than $1.3 million of the victim’s money to purchase gold and silver and have it delivered to French’s residence in Westerville. French thereafter used the funds in the joint accounts to buy and sell gold and silver, while keeping some of the gold and silver for himself at his residence, and some of the profit from the transactions in his own personal bank accounts.
French was charged in the indictment with five counts of wire fraud and two counts of mail fraud, each crime punishable by up to 20 years in prison, as well as with five counts of interstate transportation securities taken by fraud and four counts of money laundering, each crime punishable by up to 10 years in prison.
U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant United States Attorney Dale Williams, who is prosecuting the case.An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Waynesboro Man Charged with Six Bank RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a felony Information was filed yesterday charging a Waynesboro man with six bank robberies.
According to United States Attorney Peter Smith, John Raymond Smith, age 38, allegedly robbed two banks each in Greencastle and Waynesboro, Pennsylvania and in West Virginia in 2014.
This case was investigated by the Federal Bureau of Investigation, the Berkeley County Sheriff’s Department, the Greencastle and Washington Township Police Departments and the West Virginia State Police. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 120 years’ imprisonment, a term of supervised release following imprisonment, and a $1,500,000 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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Waterloo Project Safe NeighborhoodsRead the Press Release
Waterloo, Iowa—Across the country, as part of Project Safe Neighborhoods (PSN), cities have established innovative law enforcement strategies that have proven effective in addressing violent crime. The purpose of PSN is to reduce incidences of gun violence. It is carried out most effectively through the development of partnerships among federal, state and local governments. Waterloo law enforcement and the United States Attorney’s Office continued that effort yesterday in a sweep targeting seven individuals prohibited under federal law from possessing firearms and/or ammunition.
A joint press conference was held at the Waterloo City Hall the day following the unsealing of the complaints in federal court against the seven individuals charged with federal gun crimes.
A spike in firearm related incidents in the recent past caused local law enforcement and the United States Attorney’s for the Northern District of Iowa to examine the patterns of criminal activity and to take decisive action to address it. U.S. Attorney Kevin Techau stated, “This focus helps ensure the public’s law enforcement resources are put to their best and most efficient use.” Techau further noted, “As we enter the summer months, those thinking of using or possessing a weapon illegally are on notice—expect to be held accountable to the fullest extent of the law.”
Waterloo Police Chief Dan Trelka and Black Hawk County Sheriff Tony Thompson joined in the press conference, each noting their commitment to keeping the streets and county safe. Both noted, “One way we will do this is by holding offenders accountable.” Black Hawk County Attorney Tom Ferguson stated, “Through a collaborative teamwork approach we have made a statement to those thinking of committing a crime. If you do, expected to be arrested and prosecuted.”
The recent charges cover a spectrum of federal firearm violations, such as: felon in possession of a firearm, unlawful user of a controlled substance in possession of a firearm and ammunition, and domestic abuser in possession of a firearm. Each violation is punishable by the following maximum penalties: (1) up to 10 years’ imprisonment without the possibility of parole; (2) a fine up to $250,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release up to 3 years.
Project Safe Neighborhoods public service announcements offer compelling narratives depicting how gun violence affects the family:
- https://www.youtube.com/watch?v=UcVCP4A8Wng
- https://www.youtube.com/watch?v=GRaw-LeW2HA
Follow us on Twitter @USAO_NDIA.
Waterbury Man Sentenced to Prison for Role in Fraudulent Income Tax Refund SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARD BRANTLEY, 45, of Waterbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for his role in a fraudulent federal income tax refund scheme.
According to court documents and statements made in court, between November 2012 and May 2013, Kenya Malcolm, Charles Ross, BRANTLEY and others conspired to file false federal income tax returns in the names of individuals without the individuals’ knowledge. Malcolm, who operated a business in Arizona called “Biggest Refund Taxes,” held herself out falsely to be a certified public accountant. As part of the scheme, Malcolm paid Ross, also a resident of Surprise, to recruit individuals to her tax preparation business. Ross subsequently contacted BRANTLEY in Connecticut and offered him a portion of Ross’s recruitment earnings if BRANTLEY would also recruit clients for Malcolm. Instead of recruiting clients for tax preparation services, BRANTLEY and individuals that BRANTLEY hired recruited victims under false pretenses, telling them that they were eligible for government funding and not telling them that tax returns would be filed in their names. BRANTLEY and his associates then collected victims’ Social Security numbers, dates of birth and other personal information and provided that information to Malcolm.
Malcolm, who knew that BRANTLEY was recruiting individuals under false pretenses, used the personal information she was provided, as well as false income and employment information for each victim, to file tax returns that generated large tax refunds. She then directed a portion of the tax refunds to herself, a portion to Ross and BRANTLEY, and a portion to the victim, usually through a prepaid debit card.
Approximately $2.5 million in fraudulent federal income tax refunds were sought through this scheme, and more than $1 million in refunds were disbursed.
Judge Meyer ordered BRANTLEY to pay restitution in the amount of $395,537.
On February 17, 2015, BRANTLEY pleaded guilty to one count of conspiracy.
Malcolm and Ross have also pleaded guilty and await sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala and Senior Litigation Counsel Richard J. Schechter.
Waterbury Man Sentenced to 12 Years in Prison for Role in Massive Stolen Identity Tax Refund SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on May 26, 2015, JULIO LARA TRINIDAD, 28, of Waterbury, was sentenced by Chief U.S. District Judge Janet C. Hall in New Haven to 144 months of imprisonment, followed by three years of supervised release, for participating in a stolen identity tax refund fraud scheme that resulted in a loss of more than $7.5 million from the U.S. Treasury.
“One of the Department of Justice’s Tax Division’s highest priorities is prosecuting people who use stolen identities to steal money from the U.S. Treasury by filing false tax returns,” stated U.S. Attorney Daly. “This scheme involved nearly $6.8 million dollars in fraudulent refunds – money stolen from law abiding taxpayers at an enormous cost to the Treasury. We hope that this lengthy prison term will deter other potential offenders as these prosecutions will continue to be a priority for our Office.”
“The defendants in this investigation attempted to utilize the mail to further their criminal enterprise,” stated Inspector in Charge Binkowski. “Based on the diligent work of Postal Inspectors and our state and federal law enforcement partners, Julio Lara Trinidad will be serving a lengthy prison sentence. This is a clear example that if criminals attempt to illegally utilize the mail, they will be brought to justice.”
“Those who commit stolen identity refund fraud (SIRF) of this magnitude and with this degree of deception deserve to be punished to the full extent of the law,” stated Special Agent in Charge Offord. “Mr. Trinidad’s 12-year prison sentence highlights the seriousness of SIRF crimes. The government is not the only victim – identity theft can have a severe emotional and financial impact on its victims. IRS, along with our law enforcement partners, remains vigilant in identifying, investigating and prosecuting those individuals who perpetrate these schemes.”
According to court documents and statements made in court, this matter stems from an investigation into individuals who, through various means, obtained fraudulent U.S. Treasury tax refund checks using stolen identities. After obtaining the checks, individuals sold them for less than face value of the checks, or deposited them into bank accounts that had been opened using fraudulent identifying documents. The funds were then quickly withdrawn from the bank accounts.
In 2011, TRINIDAD was arrested in New Jersey for stealing U.S. Treasury tax refund checks from mailboxes. He pleaded guilty to a related charge in the District of New Jersey in January 2012. An arrest warrant was issued for TRINIDAD after he failed to appear for his sentencing in May 2012. TRINIDAD was arrested on November 23, 2013, and subsequently was charged by indictment in the District of Connecticut.
While he was a fugitive from justice, TRINIDAD and his co-conspirators opened at least 59 bank accounts in the names of identity theft victims, depositing U.S. Treasury tax refund checks into the accounts, and then quickly withdrawing the funds, resulting in more than $663,000 in loss to the U.S. Treasury. Between December 2012 and February 2013, one of the accounts was used to purchase six licenses for a brand of tax preparation software. These licenses were used to file more than 36,000 federal income tax returns, seeking more than $234 million in federal tax refunds intended to be issued to TRINIDAD and his co-conspirators. Nearly $6.8 million in fraudulent refunds were issued before the scheme was identified.
TRINIDAD’s co-defendants, Jerry De Los Santos Rodriguez and Cesar Penson-Perez, have admitted that they worked with TRINIDAD to open bank accounts using fraudulent identities.
In addition, between July and October 2013, TRINIDAD and Ramon Mena sold more than $60,000 in fraudulently-obtained U.S. Treasury checks to an individual working with law enforcement. TRINIDAD and Mena received some of these checks from Pricilla Brito and Yowandy DeLeon.
TRINIDAD has been detained since his arrest. On February 10, 2015, TRINIDAD pleaded guilty to one count of theft of public money and one count of aggravated identity theft.
De Los Santos Rodriguez, Penson-Perez, Mena, Brito and DeLeon previously pleaded guilty.
This matter is being investigated by the United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the United States Secret Service and Homeland Security Investigations, with the assistance of the Danbury and Darien Police Departments. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Waterbury Man Sentenced to 10 Years in Prison for Enticement of Minor He Met at ChurchRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL TORRES, 45, of Waterbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 120 months of imprisonment, followed by 10 years of supervised release, for enticing a minor female to send him sexually explicit videos and pictures of herself.
According to court documents and statements made in court, TORRES met a minor female at the church they both attended. TORRES offered to mentor the minor, gave her his cell phone number, and they began communicating via text messages. In late June 2013, when the minor was 14 years old, TORRES began to ask the minor to send him sexually explicit videos and pictures. Their text message conversations became sexually explicit and TORRES persuaded the minor to take sexually explicit videos and pictures of herself and send them to him. TORRES also sent the minor sexually explicit videos and pictures of himself, and he told her that he had engaged in sexual conduct with other girls so that the minor would be comfortable with it.
TORRES has been detained since his arrest on related state charges on August 30, 2013, and he pleaded guilty to the offense on March 4, 2015.
This matter was investigated by the Waterbury Police Department and Homeland Security Investigations. The Connecticut State’s Attorney’s Office in Waterbury also provided critical assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.