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Thursday 9 April 2015
Grand Jury Indicts Woman for Tax and Identity Theft SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced the filing of criminal charges against another individual accused of committing theft of government property and aggravated identity theft in the Baton Rouge area, as part of an ongoing effort by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division to combat stolen identity refund fraud and other tax fraud schemes.
LAGUARDIA COSTON, age 27, of Baton Rouge, Louisiana, was charged in an indictment with four counts of theft of government property; four counts of receiving stolen government property; and two counts of aggravated identity theft. If convicted, the defendant faces a significant term of imprisonment, fines, restitution, and the forfeiture of the proceeds from the alleged scheme.
The indictment alleges that COSTON obtained numerous federal tax refunds, via checks deposited with and electronic wire transfers to bank accounts she controlled, knowing that the refunds belonged to other taxpayers and that she was not entitled to the funds. According to the indictment, COSTON also knowingly possessed and used the taxpayers’ names and social security numbers.
U.S. Attorney Green stated: “This indictment reflects our continuing commitment to stop identity theft and tax fraud schemes. We are dedicated to aggressively pursuing such criminality wherever it is found. I commend the hard work of the IRS-CI and the prosecutors working on these important matters.”
“We will continue to work aggressively with the United States Attorney's Office to protect innocent taxpayers and preserve the integrity of our tax system.” said Jerome R. McDuffie, Acting Special Agent in Charge, IRS Criminal Investigation. “We will vigorously pursue fraudulent refund claims and those individuals who engage in identity theft. Protecting taxpayer’s money and personal information will remain one of our core missions.”
This matter is being handled by the IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Former State Representative Tyrone Brooks, Sr., Pleads Guilty to Fraud and Tax ChargesRead the Press Release
ATLANTA - Tyrone Brooks, Sr., has pleaded guilty to charges that he misappropriated almost $1 million in charitable funds from Universal Humanities, a charity he founded in 1990, and the Georgia Association of Black Elected Officials (GABEO). From the mid-1990s through 2012, Brooks solicited contributions from individuals and corporate donors to combat illiteracy and fund other charitable causes, but then used the money to pay personal expenses for himself and his family.
“Through two charitable organizations he led, Representative Brooks raised over one million dollars for the causes of illiteracy, crime and voter disenfranchisement that plague our disadvantaged communities, especially ones in poor and rural areas,” said Acting U.S. Attorney John Horn. “Sadly, Representative Brooks misappropriated nearly all of the money to pay personal expenses for himself and his family. By diverting these funds, he deprived those communities from receiving the literacy training and other assistance that they so desperately needed.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “People have a right to expect honesty and integrity from their elected officials. The FBI’s Public Corruption program plays a vital role in ensuring that any such departures from the expected honesty and integrity of public officials that result in violations of the law will be investigated. The FBI launched its investigation in this matter based on information and facts that indicated that a State elected official was using undue influence for personal gain. The FBI, in conjunction with IRS-CI, followed those facts throughout this investigation, which led to this guilty plea of former State Representative Tyrone Brooks.”
“Mr. Brooks exploited his position as representative and director of Universal Humanities and GABEO for his own personal financial gain, which came at the expense of the organizations and people he was trusted to serve,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. “In addition, Brooks stole money from the American taxpayers by failing to report the income and pay taxes on the money he diverted.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court:
Universal Humanities SchemeThe government presented evidence at the plea hearing that from at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $800,000. Donors included the Coca-Cola Company, Georgia Pacific Company, Northside Hospital, and others who gave smaller amounts. Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy; he described how the donated funds would be used, claiming that Universal Humanities had established literacy programs, conducted workshops, and tutored and mentored students. He also falsely claimed that Universal Humanities used a staff and operated under the leadership of a board of directors.
In reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students. Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses.
Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account that he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses. At times, Brooks paid personal expenses directly from the Universal Humanities account.
Contrary to Brooks’ representations to donors, Universal Humanities never had a functioning board of directors. The individuals listed on the solicitations and incorporation documents were unaware that Brooks had identified them as Universal Humanities board members, and most had never even heard of the organization.
Brooks represented in a 1999 solicitation that Universal Humanities had been “so successful” in Georgia that it was expanding its programs to other states in the Southeast, and expected to have a projected budget of $500,000. In truth, Universal Humanities did not have an operational literacy program inside or outside of Georgia, nor did it have a projected budget of $500,000.
Brooks represented that Universal Humanities’ literacy program, which Brooks called “Visions of Literacy,” consisted of a host of “outlets” created to increase literacy and included activities such as seminars, workshops, tutoring, mentoring, and rallies. Brooks further claimed that Universal Humanities and its “staff had over 40 years’ experience in assisting U.S. communities through a variety of efforts,” and that 10,000 people would be the direct beneficiaries of the literacy program. In fact, Universal Humanities and Brooks did not operate a functional literacy program, did not host the literacy activities described in the solicitation, or did not have a staff.
Brooks represented in a 2011 solicitation that the Visions of Literacy program conducted monthly workshops, seminars, and advocacy outreach activities, and that the solicited funds would be used to hire retired teachers and administrators as “educational consultants” to gain targeted results. Instead, Brooks spent the funds donated in response to this solicitation on payments for personal credit card charges, personal loan payments, utility bills, and a $500 check to a family member as a Christmas gift.
Unbeknownst to GABEO, Brooks represented in a 2011 solicitation that GABEO was a “sister organization” to Universal Humanities and that GABEO was committed to the “growth and advancement of Universal Humanities.” Brooks falsely claimed that GABEO members spoke in public forums to implement and promote Universal Humanities’ programs; that GABEO members taught at Universal Humanities meetings and classes “alongside” Universal Humanities community organizers; and that GABEO members served on the Universal Humanities’ board of directors, steering committee, fundraising committee, and program management committees, though the purported committees were nonexistent.
As a result of Brooks’ misappropriation, the intended beneficiaries of the donated funds did not receive the needed literacy training or assistance.
GABEO Scheme
The government presented evidence at the plea hearing that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family. GABEO is an organization of state, county, and municipal elected officials which promotes crime prevention, voter registration, literacy and economic empowerment initiatives.
Brooks solicited contributions for GABEO from corporations, organizations and individuals. When Brooks was elected as GABEO’s President in 1993, the organization already maintained an official bank account at a local bank. This account was administered by GABEO’s Treasurer, and disbursements required two signatures by GABEO Board members. In December 1997, Brooks secretly opened a second GABEO bank account at a different bank. Brooks set himself up as the sole signatory on this account, and had the account statements sent to his address rather than the address of the GABEO Treasurer. Brooks then deposited the donations that he solicited on behalf of GABEO into this undisclosed account, and used much of these funds to pay personal expenses for himself and his relatives.
Between 2002 and 2012, businesses, civic, religious groups and individuals contributed approximately $300,000 to GABEO through Brooks, which he then deposited into the undisclosed GABEO account. Brooks misappropriated donations that he solicited on behalf of GABEO from corporations, local teacher unions, small business owners, and individual donors – all of whom relied on Brooks’ assurances that the contributions were intended to further GABEO’s community activities. The GABEO Board was unaware of this activity and did not approve these transactions.
Brooks misappropriated the GABEO funds in much the same manner as the Universal Humanities funds. Brooks deposited funds he solicited on behalf of GABEO into the undisclosed GABEO account, then transferred the funds to his personal account, from which he paid his personal expenses. While Brooks utilized some of the GABEO donations to pay expenses related to GABEO’s annual meetings, he utilized much of the GABEO funds for personal expenses.
During the time that Brooks acted as GABEO’s President, a variety of charitable groups, companies and individuals made donations to GABEO through Brooks. These donors relied on Brooks’ representations that GABEO would use the contributions to defray the costs of the organization’s annual meetings and convention, and to support GABEO’s programs.
Brooks made specific false representations to donors about how the solicited funds would be used, claiming that the funds would be used to cover the expenses of annual GABEO meetings, support GABEO crime prevention and child hunger initiatives, voter registration, felon rehabilitation initiatives, and literacy programs. Donors included Coca Cola, Georgia Power, the International Brotherhood of Teamsters and others. Instead, Brooks deposited these funds into the undisclosed GABEO account that he controlled and then transferred the money to his personal account, ultimately using most of the contributions to pay personal expenses.
By misappropriating GABEO donations for his personal use, Brooks benefitted himself at the expense of both GABEO and the communities most in need of the literacy, crime prevention and voter registration programs for which the funds were intended.
False Tax Returns ChargesFinally, Brooks pleaded guilty to tax fraud and, in so doing, he admitted he substantially underreported his income to the IRS for the 2011 tax year. Despite Brooks’ misappropriation of Universal Humanities and GABEO funds, his tax return for the 2011 tax year falsely reported a salary of only approximately $35,000 annually.
Brooks, 68, of Atlanta, Georgia, pleaded nolo contendere guilty to five counts of mail and wire fraud and fully admitted his guilt as to one count of tax fraud.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine, Richard S. Moultrie, Jr. and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.Former Piedras Negras “Plaza” Drug Trafficker Pleads Guilty to Federal Drug Distribution ChargeRead the Press Release
In San Antonio today, 46-year-old Esiquiel Rodriguez (aka “Cheke”), a former major drug trafficker in the Piedras Negras “Plaza,” pleaded guilty to his leadership role in the importation and distribution of thousands of kilograms of narcotics into the United States from Mexico announced Acting United States Attorney Richard Durbin, Jr., DEA Special Agent in Charge Joseph Arabit and San Antonio Police Chief Anthony Treviño.
Appearing before Chief United States District Judge Fred Biery this morning, Rodriguez pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. By pleading guilty, Rodriguez admitted that since the early 2000s, he was one of the major drug traffickers in the Piedras Negras “Plaza” in Coahuila, Mexico, and was responsible for the transportation of thousands of kilograms of cocaine and marijuana from Mexico into the United States.
Law enforcement investigations revealed that Rodriguez had strong associations with various large scale narcotics organizations, including the Los Zetas transnational drug cartel. From approximately 2007 through 2009, Rodriguez worked with various high level Zetas trafficking cocaine. The investigation revealed that between 2007 and 2009, Rodriguez and others smuggled a minimum of 500 kilograms of cocaine per month from Mexico into the United States, and at least 6,000 kilograms per year during this time frame. Most of this cocaine was smuggled through the Eagle Pass Port of Entry to San Antonio and then distributed to other destinations throughout the United States. Many of the same persons and vehicles used to smuggle narcotics into the United States were used to smuggle millions of dollars of drug proceeds back into Mexico as well as weapons for the Zetas. These weapons were assault type weapons which were used to control the Plazas or drug trafficking areas controlled by the Zetas.
As a result of his guilty plea to the conspiracy charge, Rodriguez faces a sentence of 35 years in federal prison if the terms of the plea agreement are approved by the Court. Sentencing is scheduled for 8:30am on July 24, 2015, before Chief Judge Biery.
In a separate but related matter, Rodriguez was arrested in April 2013 by the San Antonio Police Department and charged with possession with intent to distribute methamphetamine. On September 29, 2014, Rodriguez pleaded guilty to possession with intent to distribute over 300 grams of pure methamphetamine. He faces between ten years and life in federal prison. Sentencing on the methamphetamine charge, which will be before U.S. District Judge Orlando Garcia, has yet to be scheduled.
These charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by agents with the Drug Enforcement Administration (DEA), San Antonio Police Department and the High Intensity Drug Trafficking Area Task Force (HIDTA), which is comprised of investigators from the Texas Department of Public Safety, Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI) , Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Internal Revenue Service-Criminal Investigation (IRS-CI). The U.S. Border Patrol also assisted in this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Former Owner of Defense Contracting Company Admits Defrauding U.S. Department of Defense with Foreign Aircraft PartsRead the Press Release
TRENTON, N.J. – The former owner of a New Jersey defense contracting business today admitted supplying the U.S. Department of Defense (DoD) with foreign-made replacement parts on contracts that only allow products manufactured in the United States, U.S. Attorney Paul J. Fishman announced.
Mehmet Karatokus, 39, of Ankara, Turkey, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of mail fraud.
According to documents filed in the case and statements made in court:
Karatokus, a Turkish citizen who became a United States resident in 2013, was the founder and owner of Diamond Parts, a company that supplied the DoD with replacement parts for aircraft and other defense items. When he registered the company with the DoD, Karatokus provided a location in Red Bank, New Jersey, even though Diamond Parts did not have manufacturing capabilities in the United States. The investigation revealed that Diamond Parts was actually a shell company created for the purpose of obtaining DoD contracts that Turkish-based manufacturers were not permitted to receive.
From January 2012 to September 2013, Karatokus submitted fraudulent bids stating that Diamond would provide parts manufactured in the United States, when in fact, the items were manufactured in Turkey. Karatokus admitted that in March 2012, he submitted a false bid to provide the DoD with replacement parts for the Hercules C-130 aircraft. Based on Karatokus’ false bid, Diamond Parts was awarded the contract, which was valued at $10,350. Shipping records showed that the parts were sent from Turkey on Sept. 25, 2012, to a packaging and shipping company in Clifton, New Jersey. The parts were subsequently provided to the DoD on Oct. 10, 2012. DoD testing later revealed that the parts had dimensional nonconformities, exhibited poor workmanship and lacked critical markings which could result in a safety issue. As a result, the parts were suspended from use.
The mail fraud count to which Karatokus pleaded guilty is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. As part of the plea, Karatokus must pay restitution of $641,454, representing the funds paid to him pursuant to the fraudulent contracts. Sentencing is scheduled for July 15, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Kevin Kelly, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Timothy R. Anderson Esq., Red Bank, New Jersey
Former Ohio State Trooper Sentenced to 60 Months in Prison for Coercing Female Motorists to Engage in Sexual Acts for Lenient TreatmentRead the Press Release
A former trooper with the Ohio State Highway Patrol was sentenced today in Columbus, Ohio, to 60 months in federal prison for coercing four female victims to engage in sexual acts in exchange for lenient treatment in connection with potential criminal cases and traffic tickets.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Superintendent of the Ohio State Highway Patrol (OSP) Colonel Paul A. Pride and Licking County Prosecutor Kenneth W. Oswalt made the announcement. U.S. District Judge Michael H. Watson of the Southern District of Ohio imposed the sentence.
Bryan D. Lee, 31, of Lancaster, Ohio, pleaded guilty on Oct. 29, 2014, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking. Lee served as an OSP Trooper from approximately January 2006 until October 2013. As part of his plea, Lee admitted that he violated the civil rights of four female victims by coercing them in his official capacity to commit sexual acts, some of which he photographed, in exchange for his agreement not to file criminal charges or issue traffic infractions against the victims or their friends. Lee further admitted that he engaged in sexual contact with certain victims while they were under arrest and restrained in handcuffs. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who he pulled over twice during a one-month period.
This case was investigated by the Columbus office of the FBI’s Cincinnati Division and OSP. The case was prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio. Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.
Former Ohio State Trooper Sentenced to 60 Months in Prison for Coercing Female Motorists to Engage in Sexual Acts for Lenient TreatmentRead the Press Release
WASHINGTON – A former trooper with the Ohio State Highway Patrol was sentenced today in Columbus, Ohio, to 60 months in federal prison for coercing four female victims to engage in sexual acts in exchange for lenient treatment in connection with potential criminal cases and traffic tickets.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Superintendent of the Ohio State Highway Patrol (OSP) Colonel Paul A. Pride and Licking County Prosecutor Kenneth W. Oswalt made the announcement. U.S. District Judge Michael H. Watson of the Southern District of Ohio imposed the sentence.
Bryan D. Lee, 31, of Lancaster, Ohio, pleaded guilty on Oct. 29, 2014, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking. Lee served as an OSP Trooper from approximately January 2006 until October 2013. As part of his plea, Lee admitted that he violated the civil rights of four female victims by coercing them in his official capacity to commit sexual acts, some of which he photographed, in exchange for his agreement not to file criminal charges or issue traffic infractions against the victims or their friends. Lee further admitted that he engaged in sexual contact with certain victims while they were under arrest and restrained in handcuffs. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who he pulled over twice during a one-month period.
This case was investigated by the Columbus office of the FBI’s Cincinnati Division and OSP. The case was prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio. Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.
Former Local 17 Business Agent Pleads Guilty to Misusing Dmv DatabaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – The United States Attorney’s Office announced today that Jeffrey A. Peterson, 51, of Freedom, NY, pleaded guilty to exceeding authorized access to the New York State Department of Motor Vehicles (NYS DMV) database before Senior U.S. District Court Judge William M. Skretny. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Anthony M. Bruce, who is handling the prosecution, stated that Peterson was employed as a business agent with Local 17 of the Operating Engineers International, AFL-CIO. As a business agent, the defendant had authority to access to the NYS DMV database for the limited purpose of determining if current Local 17 members had up to date commercial drivers’ licenses.
On April 25, 2005, Peterson accessed the NYS DMV database to determine the registered owner of a vehicle that appeared at a Local 17 picket line outside Portville, NY four days earlier on April 21, 2005. Such an inquiry was outside the scope of the agreement between Local 17 and the NYS DMV. This vehicle, as it turned out, belonged to the United States Department of Labor, Office of Inspector General and was being driven by a Department of Labor Special Agent. This incident was just one of multiple violations of the agreement which resulted in the NYS DMV denying Local 17 further access to the database.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, and Special Agents of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office
Sentencing is scheduled for July 15, 2015 at 2:00 p.m. before Judge Skretny.
Former Instructor at Big Spring Correctional Center Sentenced to Six Months in Federal Prison and Remanded into CustodyRead the Press Release
LUBBOCK, Texas — A former instructor at the Big Spring Correctional Center (BSCC), who admitted smuggling contraband into the facility, selling it, and then lying about it to federal investigators, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Ronald Craig Maxwell, 44, of Big Spring, Texas, was sentenced to six months in federal prison this morning by U.S. District Judge Sam R. Cummings. Maxwell pleaded guilty in October 2014 to an Information charging one count of making false statements and aiding and abetting. Judge Cummings remanded Maxwell to the custody of the U.S. Marshal following this morning’s hearing.
In a related case, BSCC inmate, Lorenzo Salgado, 53, pleaded guilty to one count of misprision of a felony and was sentenced last month to serve six months in prison on the conviction. Salgado admitted he concealed the fact that Maxwell smuggled contraband in to him.
According to documents filed in the cases, on July 31, 2013, BSCC officials conducted a search of Maxwell’s office in the prison and discovered 30 packs of tobacco. Maxwell was a contract teacher from Howard College who taught at BSCC. Salgado was one of his students.
On August 2, 2013, Special Agents with the Office of the Inspector General (OIG), Investigations Division, Department of Justice, interviewed Maxwell, who denied that he had smuggled any contraband into the prison or received any money, or anything else, from inmates or family or friends of inmates. Instead, Maxwell stated that he had smuggled tobacco out of the BSCC when bags of what he believed to be marijuana or tobacco dropped from the ceiling into his office at the prison.
Further investigation revealed that several inmates had established a relationship with Maxwell, and that he was smuggling contraband to them in exchange for money. Maxwell eventually confessed that he had intentionally provided a false statement to the OIG Special Agents, and he admitted that he had indeed smuggled tobacco and alcohol into the BSCC for inmate Salgado. He further stated that he had smuggled alcohol and approximately 150-200 bags of Buglar tobacco, and he was paid at least $4,500 for the contraband.
The Department of Justice Office OIG conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Former Fresno Police Department Deputy Chief and Six Others Indicted for Drug TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury indicted former Fresno deputy police chief Keith Foster and six others today, charging them with a variety of drug trafficking offenses, United States Attorney Benjamin B. Wagner announced.
In addition to Keith Foster, 51, the indictment includes charges against Randy Flowers, 48; Iran Dennis “Denny” Foster, 44; Rafael Guzman, 41; Jennifer Donabedian, 35; and Sarah Ybarra, 37, all of Fresno; and Ricky Reynolds, 30, of Shasta Lake. All defendants are scheduled to be arraigned on the indictment at 1:30 p.m. on Friday, April 10, 2015.
The indictment charges Keith Foster with participating in three separate conspiracies to distribute different controlled substances over the course of the past year. Keith Foster is charged with conspiring with Randy Flowers to distribute oxycodone. They are charged individually in four separate counts to distribute, or possess with the intent to distribute oxycodone. Flowers is further charged with being a felon in possession of three firearms.
Keith Foster and Rafael Guzman are charged with conspiring to distribute heroin. Keith Foster is also charged with conspiring with Reynolds, Donabedian, Ybarra and Denny Foster to distribute marijuana. Reynolds is separately charged with manufacturing marijuana, and both Reynolds and Denny Foster are charged individually in various counts alleging distribution of marijuana. Denny Foster is also charged with being a felon in possession of a firearm. Each defendant is charged in at least one count with using a cellphone in furtherance of a drug trafficking offense. Finally, Denny Foster and Guzman are charged with conspiring to distribute methamphetamine, cocaine and heroin.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney Wagner expressed his appreciation for the hard work done by the FBI and ATF investigators in the course of the investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice are prosecuting the case.
If convicted, the defendants face a statutory maximum penalty of 20 years in prison and a $1 million fine for the counts charging controlled substances other than or in addition to marijuana, a maximum of five years in prison and a $250,000 fine for the marijuana-only trafficking offenses, four years in prison and a $250,000 fine for using a cellphone to facilitate the commission of a felony, and a maximum penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Florida State University Finance Professor Indicted for EmbezzlementRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment charging former Florida State University Finance Professor, James S. Doran, 39, of Boulder, Colorado, with embezzlement. The indictment, which was unsealed today, was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, between May 2010 and March 2011, Doran, while employed as an Assistant Professor of Finance at Florida State University, embezzled more than $650,000 in funds held by FSU. The arraignment is scheduled for April 24 at 10:00 a.m. before Judge Charles A. Stampelos at the United States Courthouse, in Tallahassee, Florida.
The case is being investigated by the United States Secret Service, the Florida State University Police Department, and the Florida State University Office of Inspector General Services. It is being prosecuted by Assistant United States Attorney Jason R. Coody.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Corrections Supervisor at Gallup-McKinley Adult Detention Center Sentenced for Sexually Assaulting Female Inmates in His CustodyRead the Press Release
ALBUQUERQUE – John Greene, 70, a former captain at the Gallup-McKinley Adult Detention Center (GMADC), was sentenced today on charges related to sexual assaults of female inmates in his custody.In Nov. 2014, Greene pled guilty to three counts of violating each of three victims’ rights to bodily integrity by engaging in sexual contact against their will.Greene also pled guilty to two counts of making material false statements to the FBI when he denied touching the breasts of one female inmate and having personal contact with another female inmate.Greene was sentenced to five years of federal probation.
According to court documents, Greene admitted that in his capacity as a captain at GMADC, he had regular access to female inmates when he accompanied them to court hearings, transported them to other facilities, and had them brought to his office.This regular access gave him the opportunity to engage in unwanted sexual contact with three different women in Dec. 2008 and Jan. 2009.Greene committed these acts, knowing it was wrong, against the law, and without the victims’ consent, but he did so anyway for his own gratification.
Greene also admitted that he lied to the FBI both when he denied touching the breasts of one of the woman in his custody for whom he was charged with touching in count one.He also lied when he denied having personal contact with yet another woman in his custody, not already listed in the indictment.
This case was investigated by the Gallup Resident Agency of the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin for the District of New Mexico and Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Cambridge Resident Convicted of Swindling Money through Prep School Admissions BusinessRead the Press Release
BOSTON – The owner and operator of a prep school admissions business was convicted yesterday in U.S. District Court in Boston in connection with his role in embezzling funds.
Mark J. Zimny, 43, was convicted by a federal jury on five counts of wire fraud, five counts of unlawful money laundering, two counts of filing false federal tax returns and one count of bank fraud. The jury acquitted Zimny on an additional count of bank fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for July 9, 2015.
Zimny owned and operated a business called IvyAdmit Consulting Associates that claimed to assist students in obtaining admission to elite American prep schools, colleges and universities. In 2008, Zimny defrauded a couple from Hong Kong of more than $650,000 by promising that if they provided him large funds to give to prep schools in New England for "development contributions," he could influence admissions decisions to the schools on behalf of the couple’s two children. Rather than delivering the funds to the schools as he promised, however, Zimny embezzled the funds for his own purposes.
Zimny was found guilty of tax violations for underreporting the gross receipts of IvyAdmit for tax years 2008 and 2009 in personal tax returns filed with the IRS.
Furthermore, Zimny defrauded Mt. Washington Bank (now part of East Boston Savings Bank) by providing the bank with false information, including fictitious tax returns that over reported his receipts from IvyAdmit, to support his application for a mortgage loan.
The charges of wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine on each count; the charges of money laundering provide for a sentence of no greater than 10 years in prison, two years of supervised release and a $250,000 fine on each count; the charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a $1 million fine; the charges of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a $250,000 fine on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Giselle J. Joffre of Ortiz’s Civil Division.
Former CEO of Local University Pleads Guilty to Submitting False Documents to Department of Homeland SecurityRead the Press Release
SAN JOSE- Jerry Wang, the Chief Executive Officer of Herguan University in Sunnyvale, California, pleaded guilty today in federal court to submitting false documents to the Department of Homeland Security (DHS), announced United States Attorney Melinda Haag and Tatum King, acting special agent in charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Jerry Wang, 34 of Santa Clara, was indicted July 24, 2012, on 15 charges arising out of a visa fraud scheme in connection with Herguan University. The superseding indictment filed October 30, 2014, alleges that, starting in July 2007, Wang and others caused Herguan to submit fraudulent documents to the DHS Student and Visitor Exchange Program (SEVP) in support of a petition to admit foreign students. Wang was charged with conspiracy to commit visa fraud, in violation of 18 U.S.C. § 371; aiding and abetting visa fraud, in violation of 18 U.S.C. §§ 1546; aiding and abetting unauthorized access of a government computer, in violation of 18 U.S.C. § 1030(a); use of false documents, in violation of 18 U.S.C. § 1001(a)(3); and aggravated identity theft, in violation of 18 U.S.C. § 1028A.
Today, Wang pleaded guilty to one false document count, specifically submitting a fraudulent Academic Warning Letter to DHS, in violation of 18 U.S.C. § 1001(a)(3). In so doing, he admitted participating in the scheme to commit visa fraud, and that the scheme involved more than 100 immigration-related documents known as “Forms I-20.” Wang further admitted aiding and abetting the unauthorized access of a DHS computer database.
As part of his plea, Wang agreed to be sentenced to a term of imprisonment between three months and two years, as well as to forfeit $700,000, representing fraud proceeds and the value of property used to facilitate his crimes.
Wang’s sentencing hearing is scheduled for September 14, 2015 at 1:30 p.m. before the Honorable Edward J. Davila, U.S. District Judge, in San Jose. Any sentence will be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Hartley M. K. West and Maia T. Perez are prosecuting the case with the assistance of Helen Yee, Natachiana Williams, Rosario Calderon, and Trina Khadoo. The prosecution is the result of an investigation by Document and Benefit Fraud Task Force (DBFTF) overseen by HSI. The DBFTF is a multi-agency task force that coordinates investigations related to fraud schemes involving immigration documents and benefits.
Former Bookkeeper for Veterans Services Organization Charged with Fraud, Tax OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned a 10-count indictment today charging CYNTHIA TANNER, 53, of Darien, with fraud and tax evasion offenses stemming from her alleged embezzlement of approximately $800,000 from a Connecticut-based veterans services organization.
As alleged in the indictment, TANNER was employed as a bookkeeper for the National Veterans Service Fund (“NVSF”) located in Darien. The stated mission of the NVSF was to provide “case managed social services and limited medical assistance to Vietnam and Persian Gulf War veterans and their families, with a focus on families with disabled children.” From approximately January 2009 through June 2014, TANNER used approximately $800,000 in NVSF funds to pay various personal expenses for her and her family members. She also altered records to conceal her scheme and by falsely claiming that the stolen monies were being paid to veterans in need.
The indictment further alleges that TANNER failed to report $794,768.47 in embezzled income on her 2009 through 2013 federal tax returns, resulting in a tax loss of $270,026.
The indictment charges TANNER with five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count, and five counts of tax evasion, an offense that carries a maximum term of imprisonment of five years on each count.
TANNER has been detained on related state charges since her arrest on June 2, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and s defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
This investigation is being conducted by the U.S. Secret Service, Internal Revenue Service – Criminal Investigation Division, and Darien Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Federal Inmates Sentenced for ContrabandRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that two federal inmates have been sentenced to serve additional federal jail time after they possessed and attempted to possess cell phones and tobacco while housed at the United States Penitentiary Lee and the adjoining Satellite Prison Camp.
Fernando Glenn, 32, and Robert Wilson, 40, were sentenced in the United States District Court for the Western District of Virginia in Abingdon on March 24, 2015, for possession of contraband and attempt to possess contraband.
Glenn, who at the time he committed the offense was serving an aggregate 120-month term of imprisonment for possession with intent to distribute cocaine base and possession of a firearm in furtherance of a drug trafficking crime arising out of the United States District Court for the Eastern District of Missouri, was sentenced to 12 months and a day of federal incarceration for his possession of cell phones and tobacco at the United States Penitentiary Lee’s adjoining Satellite Prison Camp.
Wilson, who is currently serving a 240-month term of imprisonment for possession of a firearm by a convicted felon arising out of the United States District Court for the Eastern District of Texas, was sentenced to an additional 24 months of federal incarceration for his attempt to possess cell phones and tobacco at the United States Penitentiary Lee.
According to evidence provided by Special Assistant United States Attorney Debbie Stevens, in 2014, Glenn and Wilson arranged for cell phones and tobacco to be dropped off near the United States Penitentiary Lee’s Satellite Prison Camp. Glenn then retrieved the contraband and took steps to have the cell phones and tobacco introduced into the United States Penitentiary Lee for possession by Wilson.
The investigation was handled by the Federal Bureau of Investigation and the Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Federal Inmates Sentenced for Conspiracy to Possess with Intent to Distribute HeroinRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that two federal inmates currently serving federal prison sentences have been sentenced to serve additional federal time after they conspired to possess with the intent to distribute heroin while housed at the United States Penitentiary Lee.
Rafaiel Ivey, 38, and Trent Antwine, 50, were sentenced in the United States District Court for the Western District of Virginia in Abingdon on February 20, 2015, for conspiracy to possess with intent to distribute heroin.
Ivey, who is currently serving a 188-month term of imprisonment for possession of a firearm by a convicted felon arising out of the United States District Court for the Northern District of Georgia, was sentenced to an additional 84 months of federal incarceration for his role in the conspiracy to have heroin introduced into the United States Penitentiary Lee for distribution within the prison.
Antwine, who is currently serving a 188-month term of imprisonment for drug conspiracy arising out of the United States District Court for the District of Alaska, was sentenced to an additional 48 months of federal incarceration for his role in the conspiracy.
According to evidence provided by Special Assistant United States Attorney Debbie Stevens, in October 2011, Ivey and Antwine arranged for a visitor to bring heroin into the visiting room of the United States Penitentiary Lee for further distribution within the prison.
The investigation was handled by the Federal Bureau of Investigation and the Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Falls Church Man Sentenced to Six Years in Prison for Receiving and Possessing over 10,000 Child Pornography FilesRead the Press Release
Used eDonkey peer-to-peer network, Usenet Newsgroup to download child pornography
ALEXANDRIA, Va. – Ralph Freeman, 54, of Falls Church, Virginia, was sentenced today to six years in prison, followed by 15 years of supervised release, for receiving and possessing thousands of child pornography files that he downloaded from online networks.
Freeman was found guilty on January 2, 2015, following a bench trial that concluded in November 2014. According to court documents, Freeman used the eDonkey peer-to-peer network and Usenet Newsgroup to download child pornography. More than 2,900 still-image files and 180 video files of suspected child pornography were found on a desktop, and more than 9,000 images were found on an external hard drive at Freeman’s residence. Freeman viewed, accessed, received, and downloaded child pornography files between 2005 and 2013.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C., made the announcement after sentencing by U.S. District Judge James C. Cacheris.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorneys Matthew Gardner and Tracy Doherty-McCormick prosecuted 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. 1:14-cr-322.
Fairview Man Sentenced to 22 Years for Drug and Gun CrimesRead the Press Release
BILLINGS – In a hearing in Billings today, U.S. District Judge Susan Watters sentenced Ryan Edward Lee, 32, of Fairview, to 270 months in prison followed by 5 years supervised release in connection to his November 2014 guilty plea to conspiracy to possess with the intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking offense.
In pleadings filed at the time of the guilty pleas, Assistant U.S. Attorney Bryan Whittaker told the court that from November 2013 to January 9, 2014, agents of the U.S. Drug Enforcement Administration and the Montana Division of Criminal Investigation investigated drug trafficking in the Bakken Fields, including allegations of methamphetamine distribution in and around Sidney, Montana, in Richland County. Using informants and law enforcement controlled exchanges, agents observed Lee deliver methamphetamine to another individual on two separate occasions.
After the first sale, Lee was pulled over by the Montana Highway Patrol for traffic violations. Lee provided false identification and received a warning for the traffic violations.
After the second sale, Montana Highway Patrol again conducted a traffic stop of Lee’s vehicle. Following a pat down search of the defendant, law enforcement found $2,500 in cash in Lee’s pocket. Once placed in the back of the patrol car, Lee kicked out a window and attempted to escape by fleeing on foot. After a chase, Lee was apprehended. During a search of Lee’s vehicle, law enforcement officers discovered a metal flip container with a digital scale and approximately 2 oz. of methamphetamine among other items and drug paraphernalia behind Lee’s driver’s seat. They also discovered, lodged between the seat and center console, a loaded .380 semi-automatic pistol. A trace on the handgun revealed that Lee had purchased it several months earlier using a false identification and a false name—the same stolen identity he used multiple times with the Montana Highway Patrol.
In addition, after his arrest and while in custody in Yellowstone County Detention Facility, it was discovered that Lee had attempted an escape by breaking out the window of his cell and that he had been chipping away the wall outside the window for at least three months.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. Drug crimes in the Bakken area have increased dramatically since the oil boom began in the region several years ago. Federal prosecution has been a priority of U.S. Attorney Michael Cotter as a way to assist state, county, and city authorities with the substantially increased demand on law enforcement resources. Parole has been abolished in the federal system and although Lee may be entitled to good time credit of up to 15% of his sentence, the sentence imposed will be the sentence served.
The investigation was conducted by the Drug Enforcement Administration, Montana Division of Criminal Investigations, Montana Highway Patrol and the Federal Bureau of Investigation.
Detroit Police Lieutentant, Officer Charged with Robbery, Extortion, Drug and Firearm OffensesRead the Press Release
A Detroit Police lieutenant and an officer were indicted yesterday on charges of robbing drug dealers and stealing drugs and money obtained in police searches, U.S. Attorney Barbara L. McQuade announced today.The indictment was sealed until this morning.
Joining McQuade in the announcement were Special Agent in Charge Paul M. Abbate of the Federal Bureau of Investigation’s Detroit Division, Chief James E. Craig of the Detroit Police Department and Special Agent in Charge Joseph P. Reagan, Drug Enforcement Administration, Detroit Field Division.
Lieutenant David Hansberry, 34, and Officer Bryan Watson, 46, each were charged with conspiracy to possess with intent to distribute narcotics, conspiracy to interfere with commerce by robbery, multiple counts of interference with commerce by robbery and extortion, possession with intent to distribute five or more kilograms of cocaine and two counts of possessing a firearm in furtherance of a crime of violence and drug trafficking crime. A third defendant, Kevlin Omar Brown, 45, was also charged with one count of interference with commerce by robbery and extortion.
According to the indictment, the defendants arranged drug transactions with civilians, including confidential sources, so that they could rob and extort them. The defendants allegedly carried out traffic stops and fake arrests, and then stole drugs, money and personal property from their victims. Hansberry and Watson are charged with using their status as law enforcement officers to assist in their scheme, by driving police vehicles, activating lights on their police vehicles, wearing police-issued attire, displaying official badges and carrying firearms. Hansberry and Watson also allegedly identified themselves as police officers to coerce their victims into complying with their demands and to encourage their victims to flee, leaving behind illegal drugs, money, and personal property. The indictment also alleges that Hansberry and Watson failed to log into evidence money and drugs seized during searches of homes. Instead, they split the proceeds and arranged for the sale of the drugs, sharing the proceeds generated by the sales.
“Officers who violate the law cannot be tolerated because effective law enforcement requires public trust,” McQuade said. “We applaud Chief Craig’s commitment to root out any officers who tarnish the badge.”
“Special Agent in Charge Abbate stated, “Every police officer who would dishonor the badge must know that they will be held accountable under the law. As law enforcement officers, we owe a tremendous duty to the public we serve, and therefore must be held to the highest standards of trust and integrity. The FBI and its law enforcement partners are committed to ensuring that these fundamental principles are fully maintained and enforced without compromise.”
“The vast majority of the men and women of the Detroit Police Department are honest and hard-working, but these defendants betrayed their oath and their fellow officers,” said Chief Craig. “We are committed to the highest standards of integrity, and we will remove any officers who do not live up to those high standards.”
Hansberry and Watson were previously assigned to the now-disbanded Narcotics Section of the Detroit Police Department. Since October 2014, they have been on suspension by the Detroit Police Department.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the by the FBI Detroit Area Public Corruption Task Force, in collaboration with the Detroit Police Department’s Office of Internal Affairs and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Sheldon Light and Louis P. Gabel.
Deportation Officer Arrested for Harboring an Illegal Alien and Lying to U.S. Immigration AuthoritiesRead the Press Release
NEWARK, N.J. – A deportation officer with Immigration and Customs Enforcement (ICE) surrendered this morning to special agents of ICE’s Office of Professional Responsibility on charges of harboring his girlfriend, an illegal alien, and making false statements about his ownership of a hair salon, U.S. Attorney Paul J. Fishman announced.
Arnaldo Echevarria, 37, of Somerset, New Jersey, is charged by criminal complaint with one count of harboring an illegal alien and one count of making false statements. Echevarria is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Steven C. Mannion.
According to the criminal complaint unsealed today:
Echevarria was a deportation officer with ICE, a division of the U.S. Department of Homeland Security. In December 2012, Echevarria received permission from his superiors at ICE to open a hair salon in West Orange, New Jersey. Echevarria certified to ICE that the hair salon would not conflict with ICE matters and would not involve illegal aliens. However, Echevarria employed his girlfriend at the time, an illegal alien, to manage the salon. Echevarria’s girlfriend had entered the United States illegally, using the name and identification of an individual in Puerto Rico to obtain a Pennsylvania identification card.
Echevarria allegedly knew his girlfriend and another salon employee resided in the United States illegally. Prior to opening the hair salon, Echevarria queried the name and date of birth of his girlfriend’s alias in various law enforcement databases. After opening the salon, Echevarria allegedly ensured that his girlfriend’s illegal status remained a secret by signing the lease for her apartment and by placing her cable and electric bills in his name. In addition to driving his girlfriend and other salon employees to and from the salon each day, Echevarria also paid the employees in cash and never asked them to fill out employment eligibility paperwork.
The charges of harboring an illegal alien and making false statements are each punishable by a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of ICE, Office of Professional Responsibility, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
echevarria_arnaldo_complaint.pdf
Defendants Charged in Separate Fraud Schemes that Resulted in Thousands of Identities Stolen and Used to Commit Fraud SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO), Thomas Caul, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Steve Steinberg, Chief, Aventura Police Department, J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), announce the filing of federal charges against 42 defendants in 25 separate cases, dealing with tens of thousands of stolen identities and millions of dollars stolen from victims and government agencies through fraudulent schemes. Today’s cases reaffirm the joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes.
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in both 2013 and 2014. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 186.3 identity theft complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 316.2 complaints per 100,000 residents.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012. With the escalating spread of fraud offenses, the Strike Force has broadened the scope of its focus and is now identified as the Identity Theft Strike Force.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Broward Sheriff’s Office (BSO), Sunrise Police Department, Coral Springs Police Department, Miramar Police Department, North Miami Police Department, City of Miami Police Department, Ohio Department of Taxation, Michigan Unemployment Insurance Agency, and Texas Workforce Commission.
Since the inception of the Strike Force, we have charged 359 defendants, who were responsible for approximately $314 million in intended losses and in excess of $125 million in actual SIRF fraud loss.
The U.S. Attorney’s Office and the IRS have also attacked this problem at its root by revoking so called “electronic filing identification numbers” or EFIN numbers, which allow individuals to file tax returns on behalf of others.
United States Attorney Wifredo A. Ferrer stated, “Identity theft is a virus that has engulfed our community. Evolving fraud schemes are sweeping the state, utilizing the stolen personal identification information of our residents and individuals throughout the country. Theft of personal information is no less egregious when it is perpetrated by offenders who operate fraud schemes from their own homes and places of business. We are committed to stopping the fraud and encourage institutions to establish protective measure that will ensure personal information is not jeopardized. Our Office thanks the countless members of federal, state and local law enforcement agencies and other governmental entities who work together to fight these pervasive crimes and hold the offenders accountable.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “Stolen Identity Refund Fraud is an ongoing battle that requires constant, joint and aggressive law enforcement actions to continue protecting the citizens of Florida. Today’s announcement should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating identity theft crimes, and IRS Criminal Investigation is committed to working with the U.S. Attorney’s Office and our partners on the Identity Theft Strike Force to combat the fraud.”
DEO Executive Director Jesse Panuccio said, “Identity theft and public-benefits fraud have reached crisis levels. This fraud harms those whose identities are stolen, robs the social safety net of resources meant for hardworking Floridians, imposes significant costs on taxpayers, and undermines public trust. Our goal at DEO is to set a national standard in preventing, detecting, and helping to prosecute this fraud. We are making great strides within the Reemployment Assistance program, and in the last year our new fraud detection measures uncovered and halted 97,000 fraudulent claims, worth more than $400 million.”
“The epidemic of identity theft and tax fraud has hit South Florida hard in the past few years. The creation of the South Florida Identity Theft Strike Force has allowed the law enforcement members involved in the task force to work together, on many different levels, to combat this epidemic” said Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “These arrests should send a message to criminals that we will bring them to justice.”
“HSI will not tolerate criminals taking advantage of our citizens through identity theft schemes and we will continue to work hand-in-hand with our law enforcement partners to bring them to justice,” said Alysa D. Erichs, Special Agent in Charge of Homeland Security Investigations Miami. “Identity theft causes distressing hardships for many citizens and has a devastating impact on the entire community.”
J.D. Patterson, Director of Miami Dade Police Department stated, “It is extremely important for law enforcement agencies to work in collaboration with each other and our communities to address crimes that span the jurisdictional boundaries of one agency and impact thousands of our citizens. The Miami-Dade Police Department remains committed to working together with fellow law enforcement agencies in the fight against fraud.”
Today, U.S. Attorney Ferrer, joined by members of the Identity Theft Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
1. United States v. Densom Beaucejour and Winzord Beaucejour, Case No. 15-20190-CR-Ungaro
On March 24, 2015, Densom Beaucejour, 22, and Winzord Beaucejour, 21, both of Miami Gardens, were charged in a six-count indictment for their participation in a conspiracy to use stolen identities to commit unemployment insurance fraud, state income tax fraud, and federal income tax fraud.
According to public documents, the investigation in this case began in January 2015, when a local police officer reported that he/she was the victim of identity theft and that a fraudulent unemployment insurance claim had been filed in his/her name. Subsequent investigation by federal law enforcement revealed numerous instances of suspected unemployment insurance fraud connected to the defendants’ residence.
On March 11, 2015, law enforcement agents executed a federal search warrant at the defendants’ residence. Inside several bedrooms in the defendants’ home, law enforcement found numerous sheets of paper, ledgers, and other documents with personal identifying information (“PII”) – including names, dates of birth, and Social Security numbers – of more than 1,000 individuals. Agents also discovered three handguns (one of which had been reported stolen), $8,600 in cash, and several credit cards embossed with names of individuals that did not appear to live at the defendants’ residence. Densom Beaucejour admitted to law enforcement that he possessed the PII found in his bedroom and had used some of it to commit fraud.
The indictment charges the defendants with engaging in a conspiracy between February 2, 2014, and March 11, 2015, to use stolen PII to file fraudulent Florida unemployment insurance claims, fraudulent federal income tax returns, and fraudulent State of Ohio income tax returns. The fraudulent claims and refund amounts -- ranging between $275 and $7,581 -- are alleged to have been filed from the defendants’ home in Miami Gardens.
The defendants were charged with conspiracy to use unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
2. United States v. Cora Eutsay, Case No. 15-2250-MJ-Turnoff
Cora Eutsay, 50, of Miami, was charged by criminal complaint with trafficking in and using unauthorized access devices to obtain anything of value, aggregating $1,000 or more in a one year period.
As alleged in the complaint, Eutsay worked for CareerSource South Florida in the Opa Locka office. During her employment, Eutsay sought and inappropriately obtained access to the Department of Children and Families’ ACCESS Florida System, a State database containing the personally identifying information, including names, dates of birth, and social security numbers (“PII”) of individuals who applied for public benefits in Florida. Eutsay’s employment credentials were used on several occasions to run queries in the ACCESS Florida database for the PII of persons who had previously applied for public benefits. Eutsay then sold the PII of more than 200 individuals.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, USSS, BSO, and DEO. The case is being prosecuted by Assistant U.S. Attorney Jaime Galvin.
3. United States v. Kyron Jonathon Nedd, Case No. 15-2426-MJ-Goodman
On April 1, 2015, Kyron Jonathan Nedd, 22, of Miami Gardens, was charged by criminal complaint for his participation in a stolen identity tax fraud scheme.
According to the criminal complaint, between February 1, 2014 and July 18, 2014, a total of 379 fraudulent federal income tax returns, for tax year 2013, were filed with the Internal Revenue Service (“IRS”) from Nedd’s residence in Miami Gardens. The returns claimed $843,295 in tax refunds. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.
On February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (“PII”) - names, dates of birth and social security numbers - of hundreds of individuals. Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (“DCF”) database. The printouts contained the name they contained the name “C.Eutsay” at the top of the documents as well as her ID number and system identification number for “Cora Eutsay,” who, as noted above, was charged in a separate criminal complaint in Case No. 15-2250-MJ-Turnoff, with selling PII that she had unlawfully obtained from the DCF database. IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts matched up with fraudulent returns filed from Nedd’s residence.
According to the complaint, federal law enforcement agents interviewed Nedd after serving the federal search warrant. Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and done without the taxpayers’ permission.
The criminal complaint charges the defendant with use of one more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI, USPS-OIG, DOL-OIG, and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
4. United States v. Earnest Thad Etienne and Wilbert Champagne, Case No. 15-20054-CR-Ungaro
On January 30, 2015, Earnest Thad Etienne, 29, and Wilbert Champagne, 20, both of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit state income tax fraud using stolen identities.
According to the indictment and other court records, on September 26, 2014, law enforcement executed a state search warrant at Etienne’s residence pursuant to an investigation of a homicide that took place in front of Etienne’s home. During the search, law enforcement officers discovered fifteen prepaid debit cards embossed with various individuals’ names, a thumb drive, ammunition, and $7,750 in cash in Etienne’s bedroom. In another room in the residence, law enforcement discovered additional electronic devices and a bank debit card embossed with the name of an individual who did not appear to live in the residence. Several firearms and additional ammunition were found in the back yard of the home.
Subsequent investigation by federal law enforcement revealed that the thumb drive discovered in Etienne’s room contained the personal identifying information (“PII”) – including names, dates of birth, and social security numbers – of more than 650 individuals with addresses in Ohio. In addition, Etienne used at least one of the debit cards found in his residence to withdraw money associated with fraudulent state of Ohio income tax refunds.
The indictment alleges that between January 14, 2014, and September 26, 2014, Etienne and his co-conspirators caused fraudulent income tax returns to be filed in the State of Ohio seeking tax refunds in amounts ranging between $7,543 and $11,515. The conspirators caused the State of Ohio to pay the fraudulent tax refunds to pre-paid debit cards in other individuals’ names or to a bank account in one of the co-conspirator’s names. The indictment alleges that on several occasions, Etienne withdrew money from the bank account in his co-conspirator’s name that contained fraudulent income tax refunds from the State of Ohio.
Etienne and Champagne were charged with conspiracy to use unauthorized access devices and aggravated identity theft. Etienne was also charged with possession of fifteen or more unauthorized access devices. Champagne was also charged with use of unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
5. United States v. Leonce V. Jeudy, Case No. 15-60037-CR-Bloom
On March 3, 2015, Leonce V. Jeudy, 24, of Plantation, was charged in a six count indictment for his participation in a scheme utilizing stolen identities to commit income tax, unemployment, and credit card fraud.
According to court documents, on January 7, 2015, a detective with the Sunrise Police Department initiated a traffic stop of a vehicle being driven by Jeudy. After smelling the odor of marijuana emanating from inside the vehicle, the detective conducted a search of the car and found a loaded handgun, ammunition, approximately twenty credit cards in various names, new iPhones and iPads, bank records of an unrelated individual, and four receipts for Visa debit cards purchased earlier that day for $2,000. Jeaudy admitted that he had purchased the debit cards and electronic devices with the credit cards that he had obtained fraudulently.
Police officers obtained a state search warrant for Jeudy’s residence. During the execution of the warrant, inside Jeudy’s bedroom officers found more than 100 credit and debit cards in the names of various individuals including Jeudy, numerous documents with the names, dates of birth, and social security numbers (“PII”) of different individuals, and various electronic devices including five computers, three thumb drives, and seven cellular telephones. The officers also recovered from Jeudy’s residence an AK-47 rifle, hundreds of rounds of different caliber ammunition, MDMA and Methamphetamine, several smaller packages of powder and crack cocaine, and other drug paraphernalia.
Subsequent forensic analysis by federal law enforcement revealed more than 8,000 sets of PII were found on the recovered thumb drives. In addition, an analysis revealed that eighteen of the recovered debit cards had received approximately $30,000 in fraudulent income tax refunds and two of the debit cards were associated with fraudulent unemployment insurance claims.
The indictment charges the defendant with six counts of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, trafficking and using unauthorized access devices, possession of unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Sunrise Police Department, IRS-CI, the DOL-OIG, and USSS. The case is being prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.
6. United States v. Jesney Eliassaint, Case No.15-2378-MJ-Simonton
On March 23, 2015, Jesney Eliassaint, 33, of Miami, was charged by criminal complaint for his involvement in an identity theft scheme.
According to the criminal complaint, in February 2014, officers with the Miami Gardens Police Department performed a traffic stop of a car for having an expired vehicle registration. Inside the car were several iPads and sheets of paper containing (“PII”) – including names, dates of birth, and Social Security numbers - of various individuals. A subsequent investigation by the USSS revealed that there were approximately 137 different names, with corresponding PII, printed on the sheets, some of which had the word “Patient” written across the top. The USSS determined that the PII found in the vehicle originated from a data breach at Aventura Hospital. The breach had been executed from Eliassaint’s computer in the hospital’s medical billing department. According to Aventura Hospital, computer records revealed that Eliassaint had conducted approximately 4,000 inquiries for patients by their date of birth.
During the investigation, USSS agents interviewed Eliassaint, who admitted to conducting the searches and printing out patient records containing the PII while he was working as a contract employee for an outside company. Eliassaint also told USSS agents that he would take screen shots of the patient records and then print them out to avoid detection. Eliassaint stated that he sold the sheets of paper, containing PII, for approximately $100 per sheet, to several individuals. Eliassaint estimated that he made a total of $2,000 for selling the patients’ information.
The defendant is charged with access device fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the USSS. The case is being prosecuted by Assistant U.S. Attorney Robert J. Emery.
7. United States v. Bradley Lee Ritter, Case No. 15-20215-CR-Gayles
On Tuesday, March 31, 2015, Bradley Lee Ritter, 23, of North Miami, was charged in a five-count indictment in a scheme to steal unemployment insurance payments by filing fraudulent claims using stolen personally identifying information of numerous Florida residents.
According to court documents, numerous unemployment insurance claims filed in both the State of Florida and the State of Texas were connected to Ritter’s residence. On March 18, 2015, a federal search warrant was executed at the defendant’s home. In one bedroom, along with Ritter’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”) - names, dates of birth, and Social Security numbers - of approximately 1,000 individuals. Law enforcement contacted three individuals whose PII was found in Ritter’s home and had unemployment claims submitted in their names. All three individuals revealed that they did not file the claim or authorize anyone to use their identity.
The indictment charges the defendant with use of unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, DEO, the USPIS, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
8. United States v. Renet Blanc, Case No. 15-2357-MJ-O’Sullivan
On Thursday, March 19, Renet Blanc, 21, of North Miami, was charged by criminal complaint for his participation in an unemployment insurance fraud scheme.
According to the complaint and other public documents, Renet Blanc was involved in a scheme that utilized the stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states. The State of Michigan Unemployment Insurance Agency then sent unemployment payments, by direct deposit, to Blanc’s bank account in Florida. Blanc was identified on bank surveillance photos withdrawing some of the unauthorized funds.
On Wednesday, March 18, 2015, a federal search warrant was executed at Blanc’s residence. In one bedroom, along with Blanc’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”) - including names, dates of birth, and Social Security numbers - of various individuals who did not appear to live at Blanc’s residence. In particular, law enforcement discovered in excess of 50 unique sets of PII on notebook paper, W-2 employment forms, and patient records. Law enforcement also discovered the debit card Blanc was captured using at the bank to withdraw fraudulent unemployment insurance funds.
The complaint charges the defendant with possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
9. United States v. Ronet Blanc, Case No. 14-2458-MJ-McAliley
On Tuesday, April 7, 2015, Ronet Blanc, 24, of North Miami, was charged by criminal complaint with participating in an unemployment insurance fraud scheme.
According to the complaint and other public documents, Ronet Blanc was involved in a scheme that utilized stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states. The State of Michigan Unemployment Insurance Agency (“UIA”) sent the unemployment insurance payments by direct deposit to Blanc’s bank account in Florida. The complaint alleges that Blanc was identified withdrawing some of the unauthorized funds, in bank surveillance photographs.
On Wednesday, March 18, 2015, officers executed a federal search warrant at Blanc’s residence. In one bedroom, along with Blanc’s personal items, law enforcement discovered a laptop computer. A subsequent forensic search of the computer revealed Blanc’s resume and a spreadsheet containing the personal identification information (“PII”) – including names, dates of birth, and social security numbers - of at least 3,000 individuals.
The complaint charges the defendant with possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
10. United States v. Luis Daniel Lopez Morales and Rigo Octavio Lopez, Case No. 15-2428-MJ-Goodman
On April 1, 2015, Luis Daniel Lopez Morales, 19, and Rigo Octavio Lopez, 25, both of North Miami, were charged by criminal complaint for their participation in a fraudulent tax refund scheme.
The complaint alleges that between January 31, 2014, and July 8, 2014, a total of 494 fraudulent income tax returns for tax year 2013 were filed with the Internal Revenue Service (“IRS”) from the defendants’ home in North Miami. The fraudulent returns claimed approximately $237,092 in tax refunds. The IRS paid out approximately $49,902 for the fraudulent returns.
On February 11, 2015, a federal search warrant was executed at the home of Lopez and Lopez Morales. Federal Agents recovered dozens of items containing personal identifying information (“PII”), including handwritten ledgers with account and PIN numbers, handwritten documents with names and dollar amounts, numerous pre-paid debit cards, lists from the Florida Department of Motor Vehicles (“FLDMV”) and print-outs of “Student Information” from the Miami-Dade Public School system. The school print-outs contained the names, dates of birth, and social security numbers of current or former Miami-Dade students. Some of the PII listed in the print-outs corresponded with fraudulent income tax returns that had been filed from the defendants’ residence.
Both Lopez and Lopez Morales admitted to law enforcement that they conspired to file fraudulent income tax returns from their home.
The complaint charges the defendants with conspiracy to use one or more access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
11. United States v. Antwan Lamar Edwards, et. al, Case No. 15-20174-CR-Cooke
On March 19, 2015, Antwan Lamar Edwards, 26, of Miramar, and Dennis Franks, Jr., 27, of Miami, were charged by indictment for their participation in a scheme to file fraudulent tax returns using stolen personal identity information.
According to the indictment, the defendants were the registered managers of a tax preparation business called All-Star Tax Solutions, LLC (“ASTS”), a Florida corporation with its principal place of business in Miami. Over the course of almost two years, the defendants used ASTS’s Electronic Filing Identification Number (“EFIN”) and their respective Preparer Tax Identification Numbers (“PTINs”) to e-file fraudulent tax returns using stolen personal identification information and fabricated W-2 statements. The indictment alleges that the defendants filed the false returns from their residences and claimed refunds for the 2011 tax year in amounts ranging between $563 and $6,515, which were paid by check and direct deposit onto debit cards mailed to ASTS.
The thirty-one count indictment charges the defendants with conspiracy, submitting false claims to the government, wire fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Christopher Browne.
12. United States v. Christopher M. Mack, Case No. 15-2317-MJ-O’Sullivan
On March 16, 2015, Christopher M. Mack, 30, of Miami, was charged by criminal complaint for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards, and file false federal income tax returns.
According to the criminal complaint, the defendant engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant. Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of over 500 individuals, and loose sheets of paper filled with over 1,000 social security numbers.
Pursuant to the complaint, a Miami Dade Police Department (“MDPD”) detective selected for further inspection fifty entries from the hundreds listed in the spiral notebooks. The detective discovered that the fifty entries represented a total of $232,344.00 in filed returns. Further investigation revealed that individuals listed in the entries had false tax return filings associated with the discovered PII. Of those false filings, four resulted in paid disbursements.
The complaint charges the defendant with possessing fifteen or more counterfeit or unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the MDPD and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
13. United States v. Yvenante Achille, Case. No. 15-20229-CR-Lenard
In April 3, 2015, defendant Yvenante Achille, 30, of Miami, was charged by indictment for her participation in an identity theft tax fraud scheme.
According to the indictment, Achille was an employee of a community health care provider. As part of her regular employment, the defendant had access to patient records, which contained personal identifying information (“PII”). Between August 22, 2013, and March 26, 2104, the defendant stole the PII of more than 9,000 current and former patients. Achille provided the stolen PII, without the patients authorization or permission, to a co-conspirator. Using a patient’s PII, the co-conspirator filed a fraudulent tax return.
The indictment charges the defendant with conspiracy to commit access device fraud, possession of fifteen or more unauthorized access devices, and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
14. United States v. John Mackenley Cesar, et. al, Case No. 15-60071-CR-Zloch
On April 2, 2015, John Mackenley Cesar, 26, of Miami, Chedlor Dorilus, 22, of Hollywood, Lawrence Bernadel (“Bernadel”), 22, of Tallahassee, Ariel Ronet Walker, 22, of Tallahassee, and Lubens Inalien, a/k/a “Lubaby,” 29, of Fort Lauderdale, were charged in a six count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, from January 29, 2014, through April 17, 2014, in Fort Lauderdale and Tallahassee, Florida, the defendants used an Electronic Filing Identification Number (“EFIN”), in the name of Canaan Plus Tax, Inc. of Miami Gardens, to file fraudulent tax returns with the Internal Revenue Service (“IRS”). The defendants used the personal identification information (“PII”) of hundreds of individuals, including PII obtained from the Texas Department of Public Safety, to file the fraudulent tax returns. After the fraudulent tax returns were received by the IRS, the defendants arranged to have the tax refund payments deposited onto pre-paid debit cards. After the monies were deposited onto the cards, they were used by the defendants to purchase items and make withdrawals from ATMs in Broward County and elsewhere. The indictment alleges that through the submission of the fraudulent tax returns, the defendants sought to obtain approximately $800,000 in tax refunds.
The defendants were charged with conspiracy to defraud the United States, conspiracy to possess fifteen or more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
15. United States v. Kiesha Adderly Mitchell and Melissa Pearl Davis, Case No. 15-20131-CR-Gayles
On March 5, 2015, Kiesha Adderly Mitchell, 36, and Melissa Pearl Davis, 32, both of Miami, were charged in a seventeen count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, in 2009 the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFIN”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services. The defendants submitted false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority. The defendants filed the false and fraudulent tax returns using EFINs, issued in the names of K. Mitch Services Inc. and Pebbles Tax & Notary Services, among others. After the tax returns were received by the IRS, various financial institutions would authorize refund anticipation loans (“RALs”) in the names of fraudulent tax return applicants. The refunds were to be loaded onto debit cards controlled by the defendants. The defendants then used those debit cards for their personal use and enrichment.
The indictment alleges that the defendants submitted fraudulent tax returns for tax years 2011 through 2013, seeking refunds in amounts ranging between $1,122 and $5,830.
The defendants were charged with conspiracy to defraud the government with false claims, filing false, fictitious, and fraudulent claims, possession of fifteen or more unauthorized access devices, and aggravated identity theft
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
16. United States v. Alexander Paul, Case No. 15-20236-CR-Lenard/Goodman.
On April 7, 2015, Alexander Paul, 23, of North Miami, was charged in a two count information for his participation in an identity theft scheme.
According to the information, on or about June 5, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of an individual with the initials “C.F.”
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
17. United States v. Ashley Leroy, Case No. 15-60009-CR-Bloom
On January 22, 2015, Ashley Monique Leroy, 26, of Davie, was charged in a three count indictment for her participation in an identity theft scheme.
According to the indictment, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of two individuals.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
18. United States v. Bash-Dee Antoine Barlatier, Case No. 15-20111-CR-Middlebrooks
On February 27, 2015, Bash-Dee Antoine Barlatier, 28, of North Miami Beach, was charged in a three count indictment for his participation in an unemployment insurance fraud scheme.
According to the indictment, Barlatier used the names and social security numbers of other individuals to obtain anything of value aggregating $1,000 or more. The defendant also used the names and debit cards of two individuals in relation to that offense.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
19. United States v. Christ Lamarre, et al., Case No. 15-20109-CR-King
On February 27, 2015, Christ Lamarre, 24, Antonio Hernandez, 21, and Christopher Carre, 19, all of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit unemployment insurance fraud.
According to the indictment, the co-conspirators used the names and social security numbers of other individuals to file fraudulent unemployment insurance claims. The co-conspirators caused the fraudulent unemployment insurance benefits to be electronically deposited into a bank account they controlled. The defendants then withdrew fraudulent funds from the bank account, using debit cards issued in the name of another individual.
The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
20. United States v. Rashad Aquil Emmons and Adrian Claude Green, Jr., Case. No. 15-60057-CR-Bloom
On March 20, 2015, Rashad Aquil Emmons, 25, of Marietta, GA, and Adrian Claude Green, Jr., 24, of Miami Gardens, were charged in a nine-count indictment for their participation in a stolen identity tax refund scheme.
According the indictment, the defendants engaged in a conspiracy pursuant to which illicit federal tax refunds were deposited by the IRS onto prepaid debit cards. The indictment alleges that from March 17, 2012, through April 5, 2012, Emmons and Green used a number of those prepaid debit cards, registered in the names of various individuals, to purchase a 2007 BMW and a 2009 Mercedes Benz at a car dealership in Broward County.
The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. The case is being prosecuted by Assistant United States Attorney Tonya Long.
21. United States v. Junior St. Fleurose, Case No. 15-20155-CR-Moore
On March 12, 2015, Junior St. Fleurose, 29, of Miami, was charged with five counts of theft of government funds.
According to the indictment, from March 30, 2010, through June 16, 2011, Fleurose received a total of approximately $112,665.95 in fraudulent tax refunds via U.S. Treasury checks or electronic funds transfers issued to various payees.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and USPIS. The case is being prosecuted by Assistant U.S. Attorneys Aileen Cannon and Ilham Hosseini.
22. United States v. Michelson Jeancy, Case No. 15-20230-CR-Huck
On April 3, 2015, defendant Michelson Jeancy, 35, of Miami, was charged by indictment for his participation in an identity theft tax fraud scheme.
According to the indictment, Jeancy was an employee of a Miami-Dade College. As part of his regular employment, the defendant had access to student records, which contained personal identifying information (“PII”). Between February 2013, and June 2104, the defendant stole the PII of current and former Miami Dade College students. Using the students’ PII, the defendant and his accomplices filed fraudulent tax returns.
The indictment charges the defendant with wire fraud, aggravated identity theft and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the City of Aventura Police Department, IRS-CI, and FBI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
23. United States v. Brandi Mary Janice Stroman, et. al, Case No. 15-60045-CR-Zloch
On March 10, 2015, Brandi Mary Janice Stroman, 30, of Oakland Park, Dezman Dunbar Zama, 34, of Fort Lauderdale, Cornelius Craig Bosket, 32, of Fort Lauderdale, and Jerrod Dashon Bosket, 26, of Oarlando, were charged in a twenty-four count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, from November 2009, to March 28, 2014, the defendants obtained income tax refunds from the U.S. Department of the Treasury in the names of unsuspecting identity theft victims. After coconspirators obtained the personal identification information (“PII), including names, social security numbers, and dates of birth of real persons, the defendants and their coconspirators used the PII to electronically file fraudulent tax returns with the Internal Revenue Service (“IRS”) claiming tax refunds to which they were not entitled. The defendants then, in part, used their personal bank accounts to receive the fraudulently obtained tax refunds by direct deposit or through depositing U.S. Treasury tax refund checks to those accounts. The defendants withdrew the money using a variety of methods including making ATM withdrawals, purchasing items or paying their bills, and moving the funds to other accounts.
The charges in the indictment include conspiracy to commit wire, mail, and bank fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
24. United States v. Thomas Jerry, III, Case No. 15-20228-CR-Scola
On April 3, 2015, defendant Thomas Jerry III, 31, of Miami, was charged by indictment for his participation in an identity theft scheme.
According to the indictment, on or about July 24, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred, possessed and used the means of identification, specifically, the name and social security number, of two individuals.
The indictment charges the defendant with possession of fifteen or more unauthorized access devices, aggravated identity theft, and being a felon in possession of firearms and ammunition.
Mr. Ferrer commended the investigative efforts of the City of Aventura Police Department, IRS-CI, FBI, ATF, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
If convicted, the defendants face a possible maximum statutory sentence of ten years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtains anything of value over $1,000; ten years in prison for stealing government funds; and two years in prison consecutive to any other term for aggravated identity theft.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Dallas Woman Faces up to 15 Years in Federal Prison After Jury Finds She Lied in Bankruptcy FilingsRead the Press Release
DALLAS — Following a two-day trial before U.S. District Judge Sam A. Lindsay, a federal jury has convicted a Dallas woman on three felony offenses stemming from bankruptcy petitions she filed, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Julie Grant, a/k/a Juliana Jacobs Grant, Juliana Okwue Jacobs Grant and Juliana Okwuenu, 49, was convicted on three counts of making false statements under penalty of perjury. Each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Grant, who was placed on electronic monitoring, is scheduled to be sentenced by Judge Lindsay on September 21, 2015.
Grant, using two different Social Security Numbers, filed voluntary bankruptcy petitions on October 3, 2008, March 2, 2009, July 6, 2009, December 16, 2009, and August 9, 2011. In some of the petitions, Grant was represented by counsel, and in some, she acted pro se (without counsel.)
The government presented evidence that in the August 9, 2011, petition, Grant fraudulently concealed two bankruptcy cases she filed in the Northern District of Texas in October 2008 and March 2009. Grant also falsely stated in the December 16, 2009, petition and the August 9, 2011, petition, that she had only used one Social Security Number, when, in fact, she had used at least one other Social Security Number in other bankruptcy petitions that she knew she was obligated to disclose.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the recent Bankruptcy Fraud Initiative within the Northern District of Texas. As an example, in late January 2015, a Waxahachie, Texas, man, James Derek Howard, was sentenced to one year and one day in federal prison and was ordered to pay restitution after he pleaded guilty to a bankruptcy fraud offense.
Since May 2013, nine debtors have been charged in the district with various felony offenses, and to date, seven of these defendants have been convicted. One defendant is awaiting trial and one defendant remains a fugitive.
The Office of the Inspector General, Social Security Administration investigated. Assistant U.S. Attorney David Jarvis prosecuted.
Corpus Christi Man Convicted of Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Winfred Eric Clanton, 68, of Corpus Christi, has pleaded guilty to possessing child pornography, announced U.S. Attorney Kenneth Magidson.
The investigation began when Corpus Christi Police received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) about an email address associated with child pornography. According to the tip, America Online (AOL) contacted NCMEC and advised them that AOL had discovered emails containing child pornography. Investigators determined Clanton was the Internet service subscriber associated with the email address.
In November 2013, investigators obtained and executed a search warrant at Clanton’s residence, at which time they seized various electronic devices which forensic analysis later revealed 115 images of child pornography depicting prepubescent girls unclothed and posing in a sexually explicit manner. Clanton provided a statement to law enforcement admitting to having accessed the child pornography and having a sexual interest in children.
U.S. Magistrate Judge Jason B. Libby accepted the guilty plea today and sentencing is set for July 16, 2015, before U.S. District Judge Nelva Gonzales Ramos. Clanton faces up to 10 years imprisonment and a $250,000 maximum fine as well as the possibility of up to life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Clanton was permitted to remain on bond pending sentencing.
Corpus Christi Police Department – Internet Crimes Against Children Task Force and the FBI investigated the case.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Sex Predator Sentenced to 180 Years in Federal PrisonRead the Press Release
DALLAS — Timothy Rinehart, 36, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to serve a total of 180 years in federal prison, following his guilty plea in August 2014 to a superseding indictment charging a multitude of child pornography offenses, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, Judge Boyle sentenced Rinehart to the maximum statutory sentence for each of his counts of conviction. Rinehart pleaded guilty to one count of production of child pornography, one count of attempted transportation of child pornography, one count of transportation of child pornography, two counts of possession of child pornography, and one count of a registered sex offender committing a felony offense involving a minor.
A convicted sex offender, Rinehart was sentenced to 51 months in federal prison in August 2006, after pleading guilty to one count of possession of child pornography in the Eastern District of Texas.
In April 2012, Rinehart used John Doe, a four-year-old male minor, to engage in sexually explicit conduct and then used his cell phone to take photos of that conduct. In late May 2012, Rinehart used his computer, the Internet and peer-to-peer file sharing to share images of minor boys engaged in sexually explicit conduct. In early May 2013, Rinehart again used peer-to-peer file sharing to share images of minors engaging in sexually explicit conduct. On October 5, 2012, Rinehart possessed a cell phone and an external hard drive that each contained images of minors involved in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Contractor Charged with Bribing Former City of Portland Smart Parking Meter ManagerRead the Press Release
PORTLAND, Ore. – Billy J. Williams, Acting U.S. Attorney for the District of Oregon, today announced the unsealing of a criminal Information charging George R. Levey, 58, of Tarpon Springs, Florida, with honest services wire fraud in connection with Levey allegedly bribing Ellis McCoy, the former City of Portland Bureau of Transportation Manager in charge of Portland’s smart parking meter program.
The Information alleges that from 2002 through July 2011, Levey, formerly an executive with Schlumberger Industries, Inc. and later the owner and president of Cale Parking Systems, USA, Inc., bribed McCoy with golf trips, gambling trips, vacation trips, $56,675 in phony consulting fees paid to EKM Consulting, a business McCoy set up to receive and disguise these payments, and the promised payment of $137,100 when McCoy ended his employment with the City of Portland.
It is further alleged that Levey bribed McCoy so McCoy would speak favorably about Levey’s companies to other cities interested in buying smart parking meters. Additionally, McCoy would disclose to Levey information he learned from counterparts in other cities that would help Levey’s companies secure smart parking meter contracts with those cities, and would help Levey’s companies secure, keep, and expand contracts to supply smart parking meters to the City of Portland. In return for the bribes, McCoy gave Levey advice about how to draft contract proposals to be submitted to the City of Portland, disclosed to Levey internal deliberations of the Portland City Council and the Portland Bureau of Transportation, and testified before the Portland City Council in favor of awarding contracts to Levey’s companies.
“The citizens of every city in Oregon are entitled to honesty and transparency every time public money is spent,” said Acting U.S. Attorney Billy J. Williams. “The bribing of public officials involved in contracting corrupts the contracting process, harms honest contractors and citizens, and diminishes public trust in local government. This office, working with its law enforcement partners, makes it a priority to aggressively investigate and prosecute those who bribe public officials and the public officials themselves.”
Ellis McCoy has pleaded guilty to accepting bribes from previously undisclosed contractors and is scheduled to be sentenced on May 27, 2015.
This case was investigated by the FBI and the IRS-Criminal Investigation Division. The case is being prosecuted by Assistant U. S. Attorney Seth D. Uram.
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Columbian Citizen Sentenced to 25 Months Federal ImprisonmentRead the Press Release
ALBANY, NEW YORK – Walter Elicer Luna Cayseda, 49, of Bronx, New York, was sentenced Wednesday in United States District Court in Utica for making a false statement and aggravated identity theft, announced United States Attorney Richard S. Hartunian and United States Customs Acting Director of Field Operations Rose Hilmey, Buffalo, New York. United States District Court Judge David N. Hurd sentenced Luna Cayseda to 25 months imprisonment, followed by a three year period of supervised release. Upon completion of his sentence, the United States Department of Homeland Security will process the defendant for removal from the country.
These charges stemmed from the defendant’s conduct at the Champlain Port of Entry on August 26, 2014. At that time the defendant provided authorities with a false name telling them he was a United States citizen born in Puerto Rico. He made these statements during an immigration inspection at the Port of Entry. The defendant also used a New York State driver’s license that contained his picture but listed a false name. The defendant is actually a citizen of Columbia. He was previously removed from the United States to Columbia in 1997.
The case was investigated by the United States Department of Homeland Security, Customs and Border Protection, Champlain, New York. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Columbia County Man Pleads Guilty to Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 57-year-old Berwick man pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo in Wilkes-Barre, to producing child pornography.
According to United States Attorney Peter Smith, the defendant, Rickie Sitler, admitted to using a four-year-old child to engage in sexually explicit conduct for the purpose of producing images of such conduct. Sitler committed the crime between late November to early December 2014.
Sitler was indicted by a federal grand jury in March 2015, as a result of an investigation by agents of Homeland Security Investigations, the Berwick Police Department, and the Columbia County District Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting 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 statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 30 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Caputo scheduled sentencing for July 13, 2015.
Colorado Man Pleads Guilty to Federal Sex Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – A Colorado man pleaded guilty in federal court in Albuquerque, N.M., this morning to sex trafficking charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
David Justin Lynch, 39, of Colorado Springs, Colo., entered a guilty plea to a two-count indictment charging him with coercing a woman to travel in interstate commerce for prostitution, and traveling in interstate commerce for the purpose of promoting prostitution. Under the terms of his plea agreement, Lynch will be sentenced to six years in federal prison to be served consecutive to the four years he already has served in state custody based on related-state charges.
On March 24, 2011, a federal criminal complaint was filed charging Lynch with coercing a woman to travel in interstate commerce to engage in prostitution. Thereafter, on July 27, 2011, an indictment was filed charging Lynch with coercing the victim to travel in interstate commerce for prostitution and traveling in interstate commerce for the purpose of promoting prostitution. The criminal complaint and indictment remained under seal until Oct. 2014, while state prosecutors proceeded with the prosecution of related-state charges against Lynch. On April 7, 2015, Lynch was arrested on the federal charges after he was transferred from state custody to federal custody.
According to court documents, the FBI and APD initiated a federal human trafficking investigation into Lynch on March 22, 2011, the day after Lynch was arrested by APD on state charges. The investigation revealed that between Dec. 2010 and March 2011, Lynch coerced the victim to travel to Colorado, Idaho, Kansas, Missouri and New Mexico for the purpose of engaging in prostitution. Lynch and the victim remained in each location for a week or two, staying in different hotels, where the victim performed sexual acts with customers who responded to advertisements placed by Lynch on a website commonly used to post ads for prostitution.
Court documents reflect that initially, the victim was required to pay fifty percent of her earnings to Lynch but beginning in Jan. 2011, Lynch took all of the victim’s earnings, giving her only enough money to pay for the hotel room, food and basic necessities. Also in Jan. 2011, Lynch verbally threatened the victim, who felt that she could not stop working as a prostitute for Lynch. In Feb. 2011, Lynch allegedly held a knife to the victim’s throat and threatened her because she was not making enough money and “wasn’t nice enough” to the customers.
Lynch and the victim were arrested by APD on March 21, 2011, after APD responded to an ad placed by Lynch on a website commonly used to post ads for prostitution. After her arrest, the victim told officers that she wanted to leave Lynch and stop working as a prostitute but was afraid that Lynch would “track her down and kill her” if she left. The victim said she felt coerced to engage in prostitution for Lynch because of his threats against her and his control of her earnings.
During today’s change of plea hearing, Lynch entered guilty pleas to both counts of the indictment. In his plea agreement, Lynch admitted that from Nov. 1, 2011 through March 21, 2011, he coerced the victim to travel in interstate commerce from Colorado to New Mexico and other places to engage in prostitution. Lynch also acknowledged that he traveled in interstate commerce to promote and facilitate prostitution.
Lynch remains in federal custody pending his sentencing hearing which has yet to be scheduled.
“Human trafficking causes unimaginable pain, desperation and despair, and the fear of violence and other reprisals all too often keep victims from reporting this heinous crime,” said U.S. Attorney Damon P. Martinez. “This prosecution sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of the victims of human trafficking crimes.”
“Unfortunately, human trafficking continues to occur in our society, and the FBI is committed to combating this reprehensible crime wherever we find it,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “I am proud of the work of the FBI Special Agents and Professional Support staff on this case, and I thank the U.S. Attorney's Office and the Albuquerque Police Department for their invaluable assistance. If you are the victim of human trafficking or have information about such a crime, I urge you to call the National Human Trafficking Resource Center at 1-888-373-7888.”
“The Albuquerque Police Department works closely with our law enforcement partners to proactively target predators involved in human trafficking,” said Chief Gorden Eden, Jr., of the Albuquerque Police Department. “Like the victim in this case, victims of human trafficking are exploited as a reusable commodity by those who force them to participate in the sex trafficking industry. APD is proud to work with the FBI and the U.S. Attorney’s Office to protect and rescue victims who are unable to defend themselves.”
This case was investigated by the Albuquerque office of the FBI and APD, and is being prosecuted by Assistant U.S. Attorneys Norman Cairns and Kimberly A. Brawley.
Clinton G. Todman, Jr. Indicted on Firearm ChargesRead the Press Release
St. Thomas, USVI – A federal grand jury today returned a four-count indictment charging Clinton G. Todman, Jr., 44, with federal and territorial firearm offenses, United States Attorney Ronald W. Sharpe announced. Todman was arrested on March 23, 2015 on a warrant issued by U.S. Magistrate Judge Ruth Miller. He was released on an unsecured $25,000 bond.
According to the indictment, at the time of his arrest, Todman possessed a Kel-Tec, .40 caliber pistol with its identifying marks obliterated. In 1991, Todman was convicted of possession of crack cocaine with intent to distribute. As a convicted felon, he is prohibited from possessing a firearm. The federal charges against Todman are: felon in possession of a firearm and possession of a firearm with an obliterated serial number. The territorial charges are: unauthorized possession of a firearm and possession of a firearm with an altered identification mark while driving. If convicted, Todman faces up to 10 years in prison on the federal counts. With respect to the territorial counts, he faces a minimum mandatory sentence of 15 years in prison and a maximum sentence of 20 years in prison.
United States Attorney Sharpe reminds the public that an indictment is merely a formalcharging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Nelson L. Jones.
Chicago Man Sentenced for Federal Drug Violations in East TexasRead the Press Release
LUFKIN, Texas – A 43-year-old Chicago man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frederick Mitchell pleaded guilty on Dec. 19, 2014 to conspiracy to possess with intent to distribute cocaine and use of an interstate facility in aid of racketeering and was sentenced to 84 months in federal prison on Apr. 8, 2015 by U.S. District Judge Ron Clark.
According to information presented in court, on July 6, 2014, Mitchell and a co-defendant, Henry Korvette Bams, were stopped for a traffic violation by the Texas Department of Public Safety on US Highway 259 in Nacogdoches County, Texas. The officer conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana. Both men were eventually released on bail on July 9, 2014. On July 22, 2014, Bams and Mitchell were stopped again for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30. The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside a hidden compartment within the vehicle. Two bank deposit slips were also discovered within the vehicle. On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account and seized approximately $135,015.14 in suspected drug proceeds. Bams is awaiting trial on pending charges.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, and the Texas Department of Public Safety, and prosecuted by Assistant U.S. Attorney Baylor Wortham.
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Chestertown Felon Sentenced to 10 Years in Prison for Obtaining Guns Through Straw Purchases and TheftRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, to 10 years in prison followed by three years of supervised release. Welch, who was prohibited from possessing firearms because of his criminal record, obtained guns through straw purchases and theft.
“It is illegal to help a criminal get a gun,” said U.S. Attorney Rod J. Rosenstein.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gary Hofmann III; Chief G. Adrian Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to his guilty pleas, Welch is a previously convicted felon and therefore is prohibited from possessing firearms. Welch and co-defendant Jonathan Sutton have known each other since they were small children. At Welch’s request, between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction.
Welch admitted that on January 29, 2011, he and Sutton visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash. Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch. Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS. Sutton completed the required forms indicating that he was the actual buyer of the firearms and was not acquiring the firearms for another person. On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch. On February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the required form and falsely indicting that he was buying the gun for himself. In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases. Those guns were subsequently possessed by Welch.
Welch also admitted that on May 17, 2013, he broke into a neighbor’s home and stole an express pump action 20 gauge shotgun with a 21 inch barrel and other items. On June 14, 2103, officers with the Queen Anne’s County Sheriff’s Office executed a search warrant at Welch’s residence in Crumpton and recovered items Welch had stolen from the neighbor, including the shotgun. Welch had sawed off a portion of the barrel and removed the serial number. During the search, officers also located the two firearms Welch received from Sutton in 2012. A subsequent search of Welch’s residence recovered the Marlin rifle from Welch’s bedroom.
Jonathan M. Sutton, age 36, of Chestertown, Maryland, pleaded guilty to conspiring to unlawfully obtain firearms for a prohibited person and is scheduled to be sentenced on April 16, 2015, at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.
Caribou Man Pleads Guilty to Firearm ChargeRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that George D. LaCasse, 35, of Caribou, Maine, pleaded guilty today in U.S. District Court to unlawful possession of a firearm by a felon.Court records reveal that on May 23, 2014, LaCasse arranged for another person to purchase a 9mm pistol for him from Ben’s Trading Post in Presque Isle, Maine. LaCasse was at the Trading Post when the firearm was purchased. Witnesses saw him with the pistol. He admitted to others that he had a gun. Federal agents also recovered 9mm casings and other evidence that LaCasse had used the firearm for target practice. LaCasse was prohibited from possessing firearms because he had felony convictions in Massachusetts in 2009.
LaCasse faces up to ten years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Caribou Police Department.
Career Offender Sentenced to 220 Months for Heroin Conspiracy in NewportRead the Press Release
COVINGTON — A federal judge has sentenced a Cincinnati man to 220 months in federal prison, for his role in a conspiracy that distributed heroin in Newport, Ky.
U.S. District Judge Amul Thapar sentenced Carlos Massengill, 45, for conspiracy to distribute heroin. Judge Thapar enhanced Massengill’s sentence because Massengill qualified as a career offender, due to his significant criminal history.
Massengill admitted that he and a co-defendant, Anquan Williams, 35, distributed heroin in Newport, on several occasions between April 2014 and July 30, 2014.
Williams was sentenced to 120 months in prison on April 2. Williams and Massengill pleaded guilty in December of 2014.
Under federal law, Massengill must serve at least 85 percent of his prison sentence, and he will be on supervised release for 10 years following his prison term.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Stuart L. Lowrey, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives (Louisville Field Division), jointly made the announcement today.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Campbell County Drug Task Force. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the federal government.
Butler Man Distributed Child Pornography to Undercover New Jersey FBI AgentRead the Press Release
PITTSBURGH - A Butler County resident pleaded guilty in federal court to a charge of distribution of child pornography, United States Attorney David J. Hickton announced today.
Justin Ellenberger, 26, of Butler, Pa., pleaded guilty on April 8 to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on March 10, 2014, Ellenberger distributed, to an a FBI agent working in Newark, New Jersey, in an undercover capacity, 19 photographs and a video contained in computer graphics files which depicted minors, some under the age of 12 years, engaging in sexually explicit conduct. A search warrant later executed at Ellenberger’s residence resulted in the seizure of two computers and an external hard drive, in which thousands of still images and videos had been stored by Ellenberger.
Judge Bissoon scheduled sentencing for July 29, 2015, at 10 a.m. The law provides for a total sentence of not less than five years nor more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Ellenberger on a bond which requires, among other things, that he be confined to his home and that he not have access to minor children.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigations conducted the investigation that led to the prosecution of Justin Ellenberger.
Bronx Man Pleads Guilty in Counterfeit Currency SchemeRead the Press Release
PITTSBURGH – A resident of New York City pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
John Viloria, 25, of Bronx, New York, pleaded guilty to one count before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that during the period from July 1, 2014, through July 28, 2014, Viloria conspired with codefendants Barry Robert Youger, Jr., Eric Seighman and Cheryl Leigh Johnson, to pass thousands of dollars of counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania.
Judge Bissoon scheduled sentencing for July 27, 2015 at 10 a.m. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Viloria on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that lead to the prosecution of Viloria.
Beaver County Men Charged with Violating Federal Firearms LawsRead the Press Release
PITTSBURGH - Two residents of Beaver County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of possession of a firearm by a convicted felon, possession of a stolen firearm, and using and possessing a firearm during a drug trafficking offense, United States Attorney David J. Hickton announced today.
The three-count Indictment, returned on April 7 and unsealed yesterday, named Timothy Paul Brown, Jr., 34, of Rochester, Pa., and Daniel Thomas Nolder, Jr., 25, of New Brighton, Pa., as the defendants.
According to the Indictment, from in and around June 1, 2014, through Dec. 15, 2014, Brown Jr., who has previously been convicted of Burglary and Robbery, possessed, bartered, and disposed of 53 stolen firearms, aided and abetted by Nolder, Jr. Brown, Jr. was also charged with using and possessing a firearm during a drug trafficking offense during this time period. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
This case involves the theft of firearms from a licensed gun store which, according to the government’s theory of the case, were ultimately traded for heroin.
ATF Special Agent in Charge Sam Rabadi said, “A thief who steals firearms from a licensed gun store endangers our neighborhoods. The stolen guns are quickly unloaded onto the streets for fast cash or illegal drugs, and later are often recovered by law enforcement after use in crimes of violence. This investigation and indictment is a reminder that ATF remains persistent tracking and arresting gun thieves and bringing an end to their criminal conduct.”
The law provides for a maximum total sentence for Brown of not less than five years and up to life in prison, a fine of $250,000 or both. Nolder faces the same possible fine, as well as a potential sentence of incarceration of up to 10 years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rochester Police Department, Aliquippa Police Department, Pittsburgh Bureau of Police, and, Pennsylvania State Police – Beaver Barracks, conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Attorney General Holder Statement on the Departure of John Kacavas as the United States Attorney of the District of New HampshireRead the Press Release
Attorney General Eric Holder released the following statement on the departure of U.S. Attorney John Kacavas:
“For nearly six years as United States Attorney for the District of New Hampshire, John Kacavas’ impressive record of public service has reflected his dynamic leadership, his consummate skill and his unshakeable devotion to justice in the face of pressing concerns and daunting challenges. Through his outstanding efforts, he has safeguarded the people of New Hampshire and left an indelible mark on the nation.
“As Chairman of the Attorney General’s Advisory Committee’s Forensic Science Working Group, John has been an indispensable advisor to me, guiding the Justice Department’s use of forensic science to ensure that we rely on it knowledgeably, responsibly and effectively. Through his critical work as part of the Child Exploitation and Obscenity Working Group, John has helped uphold the Department’s promise to protect and defend the most vulnerable members of our society. In every case and every circumstance, John has demonstrated his unwavering commitment to public service, to professional integrity and to the cause of justice. I thank John for his exemplary service, I wish him the best of luck and I look forward to all that he will continue to achieve.”
Armed Career Criminal from Albuquerque Sentenced to Fifteen Years for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Paul Anthony Turrieta, 36, of Albuquerque, N.M., was sentenced today in federal court to 15 years in federal prison for being a felon in possession of a firearm and ammunition. Turrieta received an enhanced sentence due to his status as an armed career criminal. He will be on supervised release for three years after completing his prison sentence.
Turrieta was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Turrieta was arrested in Feb. 2014, on an indictment charging him with unlawfully possessing a firearm and ammunition on Oct. 24, 2013, in Bernalillo County, N.M. According to court filings, Turrieta was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including three residential burglaries.
On Oct. 27, 2014, Turrieta pled guilty to the indictment and admitted possessing a revolver and ammunition which were discovered in the vehicle he was driving when an officer pulled him over on a traffic stop on Oct. 24, 2013. Turrieta acknowledged that he was prohibited from possessing the firearm or ammunition because he was a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Presiliano A. Torrez prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Synthetic Drug Trafficking ChargeRead the Press Release
ALBUQUERQUE – Iman Al-Washah, 24, of Albuquerque, N.M., entered a guilty plea in federal court this morning to a “spice” trafficking charge. Iman Al-Washah is one of three men arrested in the District of New Mexico in May 2014, as part of Project Synergy Phase II, a nationwide investigative effort by the DEA, Customs and Border Protection, Homeland Security Investigations, FBI, IRS and other federal, state, and local partners. Project Synergy Phase II targeted every level of the dangerous global synthetic designer drug market. From Jan. 2014 through May 2014, nationwide enforcement operations took place targeting the drug trafficking organizations that have operated in communities across the country.
Iman Al-Washah and his co-defendants, Sabah Al-Washah, 48, and Amjad Al-Washah, 26, both Albuquerque residents were charged with “spice” trafficking charges in criminal complaints. Amjad Al-Washah was charged with distribution of a controlled substance analogue based on his sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop at 806 Old Coors Drive SW in Albuquerque on Dec. 4, 2013. Iman Al-Washah was charged with conspiracy and distribution of a controlled analogue based on his participation in the sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop on Jan. 7, 2014. Sabah Al-Washah, the owner of Carlos’ Smoke Shop, was charged with conspiracy and aiding and abetting the distribution of a controlled substance analogue based on a sale of synthetic cannabinoid to an undercover officer at the smoke shop on Jan. 7, 2014. Sabah Al-Washah also was charged with maintaining drug-involved premises.
The three men subsequently were charged in a four-count indictment filed on May 21, 2014. Count 1 charged the three men with conspiracy to distribute a controlled substance analogue from Dec. 4, 2013 through May 7, 2014. Count 2 charged Sabah Al-Washah and Amjad Al-Washah with distributing a controlled substance analogue on Dec. 4, 2013. Count 3 charged Sabah Al-Washah and Iman Al-Washah with distributing a controlled substance on Jan. 7, 2014, and Count 4 charged Sabah Al-Washah with maintaining a place, Carlos Smoke Shop, for the purpose of manufacturing, distributing, and using a controlled substance analogue. The indictment also called for the forfeiture of multiple vehicles and cash obtained through the drug offenses charged in the indictment.
During today’s proceedings, Iman Al-Washah pled guilty to Count 3 of the indictment and admitted that Sabah Al-Washah and he sold 30 packets of “spice” to an undercover law enforcement officer. Under the terms of his plea agreement, Iman Al-Washah will be sentenced to a prison term not to exceed six months and will be required to forfeit a 2011 Cadillac, a 2006 BMW and a 2011 Chevrolet Camaro. His sentencing date has yet to be scheduled.
Amjad Al-Washah pled guilty on Feb. 11, 2015, to Count 2 of the indictment and admitted that on Dec. 4, 2013, he sold ten packets of “spice” to an undercover law enforcement officer for $200.00 at Carlos’ Smoke Shop. At his sentencing hearing, which has not been scheduled, Amjad Al-Washah faces a statutory maximum penalty of 20 years in federal prison followed by a minimum of three years of supervised release.
Sabah Al-Washah has entered a not guilty plea and is pending trial, which is currently scheduled for May 11, 2015. Charges in criminal complaints and indictments are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Stephen R. Kotz.
The controlled substance analogues charged in the complaints and indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Arizona Woman Sentenced to Twenty Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss - Mercedes Sanchez, 34, of Phoenix, Arizona, was sentenced on April 2, 2015 by U.S. District Judge Henry T. Wingate to 240 months in federal prison followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Gregory K. Davis announced.
Sanchez was found guilty on January 15, 2015 by a jury after a four day trial in U.S. District Court in Jackson. She received the statutory maximum sentence for her crime.
Sanchez entered the United States on October 13, 2013, in Nogales, Arizona and was traveling to Atlanta, Georgia. She was stopped by the Richland Police Department on October 16, 2013 for speeding. A search of the vehicle revealed 47 pounds of methamphetamine with a purity of 99.8% concealed in the muffler of her Ford -F150. She was 8 and ½ months pregnant at the time and was also traveling with her 9 year old daughter. Sanchez had multiple border crossings into Mexico and then returning into the United States over a nine month period.
This case was investigated by Homeland Security Investigations and the Richland Police Department. It was prosecuted by Assistant U.S. Attorneys Erin Chalk and Darren LaMarca.
"C-S.T.A.N.D.": Four Conway Men Indicted in Federal Drug ConspiracyRead the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles, stated today that four Conway men, Marcus Dalton Hemingway, a/k/a “Face,” age 36, Marco Delton Hemingway, a/k/a “Co-Teezy,” a/k/a “Co,” age 36, Albert Tyrone Mayes, a/k/a “JT,” age 40, and Robert Hemingway, Jr., a/k/a “Booda,”age 34, indicted earlier this year by a federal grand jury in a sealed indictment charging a cocaine and crack cocaine conspiracy, a violation of Title 21, United States Code, Section 846, appeared in federal court in Florence this afternoon for arraignment. During the hearing, the government requested that all four defendants be detained. All four defendants entered not guilty pleas, waived their right to a detention hearing, and remain in federal custody.
Mr. Nettles stated the penalty for conspiracy to possess cocaine and crack cocaine is a maximum term of imprisonment of 20 years, a fine of $1,000,000, a term of supervised release of at least three years in addition to any term of imprisonment, plus a special assessment of $100.
This indictment, unsealed today, follows a year-long undercover investigation by local, state, and federal law enforcement. The undercover operation yielded multiple drug purchases by undercover officers from dealers in the Conway community. The indictment is part of the “C-S.T.A.N.D.” program launched in Conway in late 2013. The program, an acronym for “Conway—Starting Toward a New Direction” is an application of the Drug Market Intervention program, coordinated by the United States Attorney’s Office and most recently utilized in the Charleston Farms community in North Charleston beginning in 2011. The initiative is a unified, proactive approach that bands together local, state, and federal law enforcement with community partners in an effort to eradicate open drug dealing in a multiple block area of Conway. In addition to the federal and state arrests effected today, several letters, in lieu of arrest warrants, were delivered today by law enforcement to lower level targets notifying them of a “call-in meeting” to be held next Wednesday, April 15, 2015, at the Conway Recreation Center located at 1515 Mill Pond Road, Conway, South Carolina, 29526. This meeting is open to the public.
Members of the law enforcement team involved in this initiative include the Conway Police Department, the 15th Circuit Drug Enforcement Unit, the Horry County Police Department, the South Carolina Law Enforcement Division (SLED), the Florence Police Department, the 15th Circuit Solicitors Office, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA). This case is assigned to Assistant United States Attorney Lance Crick of the Greenville office and Assistant United States Attorney Chris Taylor of the Florence office.
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Wednesday 8 April 2015
Women Pleads Guilty to Embezzling from Aiken Law FirmRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Tonya M. Hair, age 43, of Jackson, South Carolina, has entered a guilty plea in federal court in Columbia to Uttering Forged Securities, a violation of 18 U.S.C. § 513, and Access Device Fraud, a violation of 18 U.S.C. § 1029(a)(1). United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will sentence Hair at a later date.Evidence presented at the change of plea hearing established that Hair worked as an administrative assistant in an Aiken law firm. She used various credit cards and bank accounts of the law firm to divert money to herself, starting in mid-2006 and lasting through early 2013. Investigators identified approximately $270,000 in unlawful transactions attributable to Hair.
Mr. Nettles stated the maximum penalty for both Uttering Forged Securities and Access Device Fraud is imprisonment for ten years and/or a fine of $250,000.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.
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Wisconsin Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Ryan Abbott, 23, of Plymouth, Wisconsin, pled guilty today in U.S. District Court to transporting child pornography.
According to court records, in October 2014, Abbott, who was in Wisconsin, sent several email messages to the undercover email account of a federal agent in Maine. Some of the messages contained links to folders of child pornography images stored on a cloud storage website. Other messages attached video files depicting sexually explicit conduct involving young children. Abbott was arrested in Wisconsin in December 2014 and brought to Maine to face charges filed in this district.
Abbott faces between five and 20 years in prison, a $250,000 fine and between and five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.Warren man indicted on heroin and firearms chargesRead the Press Release
A federal grand jury returned a four-count indictment charging a Warren man with heroin distribution and illegal possession of a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Ricardo B. McKinney, 29, faces two counts of distribution of less than 100 grams of heroin, one count of possession with the intent to distribute one kilogram or more of heroin and one count of being a felon in possession of firearms.
The alleged crimes took place earlier this year, according to the indictment.
If convicted, the defendant's sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the Defendant’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Daniel J. Riedl. The investigation was conducted by the Drug Enforcement Administration, Youngstown Resident Office, and the Warren Police Department, which recovered approximately 1657.2 grams of heroin and two handguns.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Vallejo Man Arrested for Falsely Claiming More Than $3 Million in Tax RefundsRead the Press Release
SACRAMENTO, Calif. — Federal agents arrested Kenneth Knockum, 46, today at his home in Vallejo, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned a three-count indictment on April 24, 2014, charging Knockum with making false claims for tax refunds on federal income tax returns.
According to the indictment, in 2009, Knockum filed three tax returns claiming fictitious income that he did not receive, withholdings that he did not make and refunds to which he was not entitled. One return was filed electronically for tax year 2008 claiming a refund of $522,786. Two returns were submitted to different IRS locations for the tax year 2007, both claiming a $1,435,813 refund.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation with assistance from the Vallejo Police Department. Assistant United States Attorney Sherry Hartel Haus is prosecuting the case.
If convicted, Knockum faces a statutory penalty of up to five years in prison and a $250,000 fine on 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.
United States Seeks Extradition of Former Salvadoran Military Officer to Spain to Face Charges for Participation in 1989 Jesuit MassacreRead the Press Release
The Department of Justice filed a complaint in the U.S. District Court of the Eastern District of North Carolina today seeking the arrest and extradition of a former colonel in the Salvadoran army to face charges in Spain related to the murder of five Spanish Jesuit priests in El Salvador in 1989.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina made the announcement.
Inocente Orlando Montano Morales, 72, formerly of Everett, Massachusetts, and 19 other former Salvadoran military officials have been indicted in Spain for the 1989 murders of five Spanish Jesuit priests during the 10-year Salvadoran civil conflict. An arrest warrant for Montano was issued by a Spanish magistrate.
According to allegations in the complaint filed in U.S. District Court today, between 1980 and 1991, El Salvador was engulfed in a civil conflict between the military-led government and the Farabundo Martí National Liberation Front (FMLN). During this conflict, in the early morning hours of Nov. 16, 1989, members of the Salvadoran military allegedly murdered six Jesuit priests, their housekeeper and the housekeeper’s 16-year old daughter at the Universidad Centroamericana. Five of the Jesuit priests were Spanish nationals, and the remaining victims were from El Salvador. The Jesuit priests were allegedly advocates for discussions between the FMLN and the military-led government to end the strife.
At the time, Montano Morales was a colonel in the Salvadoran army, and he also served as Vice Minister of Defense and Public Safety. The complaint alleges that he shared oversight responsibility over a government radio station that, days before the massacre, issued threats urging the murder of the Jesuit priests. The day before the murders, Montano Morales also allegedly participated in a series of meetings during which one of his fellow officers gave the order to kill the leader of the Jesuits and leave no witnesses. The following day, members of the Salvadoran army allegedly executed the six priests, their housekeeper and the housekeeper’s daughter.
Montano Morales is currently serving a 21-month federal prison sentence in the United States for his 2013 conviction in the District of Massachusetts for immigration fraud and perjury in connection with false statements he made to immigration authorities to remain in the United States. He will be released from that prison sentence on April 16, 2015.
The allegations contained in the complaint are merely accusations, and any finding of guilt or innocence will be made by Spanish courts upon Montano Morales’s extradition.
The case is being handled by Assistant U.S. Attorney Eric Goulian and Special Assistant U.S. Attorney John Capin of the Eastern District of North Carolina and Trial Attorney Roberto Iraola of the Criminal Division’s Office of International Affairs.
Montano Morales Complaint
United States Attorney and California Attorney General Partner Present the Second in A Series of Awareness Trainings on Labor TraffickingRead the Press Release
SACRAMENTO, Calif. — Today, a training aimed at combatting the serious crime of labor trafficking was held, organized by U.S. Attorney Benjamin B. Wagner in partnership with California Attorney General Kamala Harris. This training, held at the Attorney General’s offices in Sacramento, was the second in a series of awareness trainings focused on forced labor and labor-related human trafficking. The first training was held in Fresno on October 24, 2014, and additional trainings are planned throughout the district and California.
U.S. Attorney Wagner stated: “Labor trafficking can be an invisible crime, because it so often goes unreported. The federal and state laws that forbid the practice have no effect when law enforcement is unaware of the violations that occur. Our goal is to train government workers, who may visit various worksites for other purposes, to recognize the signs of forced labor and to be aware of how to report it.”
“Human trafficking is the world's fastest growing criminal enterprise,” said Special Assistant Attorney General Jeff Tsai. “Labor trafficking is the most prevalent form, but it is still under-reported and under-investigated. Training our first responders and government agencies to recognize the signs of labor trafficking is an important step in helping victims and going after the traffickers. Attorney General Harris has made fighting human trafficking a priority and is proud to partner with U.S. Attorney Wagner to provide this critical training.”
The training was attended by federal, state, and local workers who visit worksites as part of their duties, including employees from the U.S. Department of Labor, the U.S. Equal Employment Opportunity Commission, California’s Employment Development Department, Department of Industrial Relations, Department of Fair Employment and Housing, Department of Alcoholic Beverage Control, Agricultural Labor Relations Board, Contractors State Licensing Board, and representatives from El Dorado County and Yolo County, and the cities of Rancho Cordova, Folsom, and Elk Grove.
Speakers from the FBI, ICE’s Homeland Security Investigations, the U.S. Department of Labor’s Office of Inspector General, and California’s Department of Industrial Relations described key indicators of labor trafficking and how to report the crime. Speakers from the International Rescue Committee presented information about labor trafficking from the trafficking survivor’s perspective, and representatives of Opening Doors Inc. led an interactive discussion of the signs of labor trafficking.
Raymond D. Greenlee, the assistant special agent in charge of Homeland Security Investigations who oversees Sacramento Homeland Security Investigations stated: “Human trafficking, including forced labor trafficking, amounts to modern day slavery and represents one of the most deplorable crimes HSI investigates. Sadly, the egregious exploitation of workers by unscrupulous individuals and businesses occurs more frequently in the Central Valley than many people realize. Our hope is that by vigorously enforcing trafficking laws and raising public awareness, we can reduce the level of exploitation and bring those responsible to justice.”
If you or anyone you know is a victim of labor trafficking, you may call the National Human Trafficking Resource Center at any time at 1 (888) 373-7888. You may also text “HELP” or “INFO” to 233733, or visit www.traffickingresourcecenter.org. You may also use these resources to report suspected human trafficking.
US Seeks Extradition of Former Salvadoran Military Officer to Spain to Face Charges for Participation in 1989 Jesuit MassacreRead the Press Release
WASHINGTON – The Department of Justice filed a complaint in the U.S. District Court for the Eastern District of North Carolina today seeking the arrest and extradition of a former colonel in the Salvadoran army to face charges in Spain related to the murder of five Spanish Jesuit priests in El Salvador in 1989.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina made the announcement.
Inocente Orlando Montano Morales, 72, formerly of Everett, Massachusetts, and 19 other former Salvadoran military officials have been indicted in Spain for the 1989 murders of five Spanish Jesuit priests during the 10-year Salvadoran civil conflict. An arrest warrant for Montano was issued by a Spanish magistrate.
According to allegations in the complaint filed in U.S. District Court today, between 1980 and 1991, El Salvador was engulfed in a civil conflict between the military-led government and the Farabundo Martí National Liberation Front (FMLN). During this conflict, in the early morning hours of November 16, 1989, members of the Salvadoran military allegedly murdered six Jesuit priests, their housekeeper and the housekeeper’s 16-year old daughter at the Universidad Centroamericana. Five of the Jesuit priests were Spanish nationals, and the remaining victims were from El Salvador. The Jesuit priests were allegedly advocates for discussions between the FMLN and the military-led government to end the strife.
At the time, Montano Morales was a colonel in the Salvadoran army, and he also served as Vice Minister of Defense and Public Safety. The complaint alleges that he shared oversight responsibility over a government radio station that, days before the massacre, issued threats urging the murder of the Jesuit priests. The day before the murders, Montano Morales also allegedly participated in a series of meetings during which one of his fellow officers gave the order to kill the leader of the Jesuits and leave no witnesses. The following day, members of the Salvadoran army allegedly executed the six priests, their housekeeper and the housekeeper’s daughter.
Montano Morales is currently serving a 21-month federal prison sentence in the United States for his 2013 conviction in the District of Massachusetts for immigration fraud and perjury in connection with false statements he made to immigration authorities to remain in the United States. He will be released from that prison sentence on April 16, 2015.
The allegations contained in the complaint are merely accusations, and any finding of guilt or innocence will be made by Spanish courts upon Montano Morales’s extradition.
The case is being handled by Assistant U.S. Attorney Eric Goulian and Special Assistant U.S. Attorney John Capin of the Eastern District of North Carolina and Trial Attorney Roberto Iraola of the Criminal Division’s Office of International Affairs.
UA Student Charged with Unauthorized Access to University ComputerRead the Press Release
BIRMINGHAM -- The U.S. Attorney's Office has charged a Childersburg woman with unauthorized access to a University of Alabama computer to steal student loan funds from fellow students, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and University of Alabama Police Chief Tim Summerlin.
Federal prosecutors on Friday filed a one-count information in U.S. District Court charging BRIANA JACKSON, 22, with one count of unauthorized access to a protected computer. The government, today, filed a plea agreement with Jackson in which she acknowledges the criminal activity and agrees to plead guilty to the charge and to pay $9,598 in restitution.
"Breaches in computer security are a fact of life in today's Internet world and quick response to an intrusion is imperative to minimize the damage," Vance said. "An alert and committed investigator in the University of Alabama Police Department, working with the FBI, prevented large financial loss in this case and led to the charges and plea agreement with the defendant," she said.
“Cybercrime is a top priority for the FBI, and everyone needs to understand that if they have a computer that is connected to the Internet, that computer is, at some point, going to be under attack," Stanton said. "This case highlights the need to always be wary of e-mails and attachments -- even from people you think you know, as it may be a phishing scheme or contain malicious code.”
The FBI offers tips to protect against computer intrusions at: http://www.fbi.gov/scams-safety/computer_protect.
"The successful outcome in this case is a direct result of the diligent and tenacious efforts of UA and federal law enforcement personnel working collaboratively to solve this crime and limit the loss to the victims," Summerlin said. "It highlights the strength of the relationships that exist between UA, the FBI, and the U.S. Attorney’s Office.”
According to Jackson's plea agreement, she conducted the intrusion into the university's computers as follows:
On April 15, 2011, Jackson created the e-mail address, [email protected], and began using that account and others to send e-mails to Alabama students, falsely claiming the message was from the University of Alabama Housing Department. She sent the e-mails to about 60 students, many of them her friends or acquaintances, asking that they reply with their "My Bama" university account username and password. More than 40 students responded with that information.
Jackson used the information she collected with her phishing e-mails to access at least 25 user accounts between July 27, 2013, and Aug. 13, 2013. In doing so, Jackson obtained information from a protected computer in order to illegally obtain money from others' federal and state student loan funds.
Jackson tried to get the money by changing direct bank deposit information for seven accounts and reroute those students' loan funds to Green Dot reloadable money cards she controlled. Two of her attempts were successful and she transferred $9,598 to a Green Dot card she registered in the name of another student whose personal identifying information she had obtained without permission. Jackson used that same student's information to establish a Western Union account.
Jackson got $1,001 in cash from the Green Dot card through an ATM withdrawal and a Western Union transfer. The University of Alabama was able to freeze the account before more was removed.
The maximum sentence for accessing a protected computer is five years in prison and a $250,000 fine.
The FBI and UA Police investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting.
Two Indicted for Grandparent Fraud SchemeRead the Press Release
PLATTSBURGH, NEW YORK – Christie Joseph, 24, and Naromie Joseph, 28, were arrested on April 3, 2015 after a federal grand jury indicted them for conspiracy to commit mail fraud and four counts of mail fraud, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Acting Special Agent in Charge Michael Kennedy. The defendants appeared in federal court in Plattsburgh on April 6, 2015 and were detained pending a detention hearing set for April 9, 2015 at 8:30 am. If convicted, each defendant faces a maximum sentence that includes 20 years imprisonment and a $250,000 fine.
According to the indictment, the Josephs picked up money which elderly people had sent believing that they were sending money to benefit their grandchildren who were in trouble. As alleged in the indictment, the elderly victims had been contacted by people who told them that their grandchildren needed money for bail and other purposes; once the money arrived at various addresses in Plattsburgh, the Josephs picked it up and delivered it to others.
"As alleged, these two defendants preyed upon the love of relatives and manufactured an emergency situation to get money," explained United States Attorney Richard S. Hartunian. "Citizens should confirm the existence of a family emergency before taking financial steps to assist a loved one."
"These types of scams, while nothing new, are becoming increasingly pervasive and sophisticated," said Acting Special Agent in Charge Kennedy. "And more often than not, these unscrupulous scammers are targeting the elderly, which is why HSI is urging the public to act as their first line of defense by taking some very basic precautions." Prevention tips are listed below.
The United States Attorney’s Office and Homeland Security Investigations would like to remind the public of the following:
- Be suspicious of anyone who calls unexpectedly asking for cash.
- Verify any supposed emergency, by calling friends and family, before sending money.
- Develop a secret code or "password" with family members that can be used to verify a true emergency.
- Resist the pressure to act quickly.
- Try to contact another family member to determine whether or not the call is legitimate.
- Never wire money based on a request made over the phone or in an e-mail...especially overseas. Wiring money is like giving cash-once you send it, you can’t get it back.
Contact Homeland Security Investigations at 1-866-DHS-2ICE or submit at ice.gov/tips or contact local authorities or state consumer protection agency if you think you’ve been victimized.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
Assistant United States Attorney Katherine Kopita is prosecuting the case. The Plattsburgh Police Department originated the investigation and partnered with Homeland Security Investigations throughout. The United States Postal Service, Clinton County Sheriff's Office, the Canada Border Services Agency and the Royal Canadian Mounted Police Project COLT also participated.