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21 May 2015
Four Charged in Federal Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
BROWNSVILLE, Texas – Four people have been charged for their involvement in a drug and money laundering conspiracy, three of whom have also been designated as Specially Designated Narcotics Traffickers (SDNTs), announced United States Attorney Kenneth Magidson.
The indictment charges Abel Briones-Ruiz aka “Cacho,” 45, his wife Myriam Susana Beattie de Briones, 36, and brother-in-law Rogelio Nieto-Gonzalez, 37, along with another individual who is not yet in custody. Briones-Ruiz, Beattie de Briones and Gonzalez-Nieto are not believed to be residing in the United States.
In conjunction with the announcement, the U.S. Department of the Treasury's Office of Foreign Assets Control has designated Briones Ruiz, Beattie de Briones and Nieto-Gonzalez each as a SDNT pursuant to the Foreign Narcotics Kingpin Designation Act for allegedly providing support for the international narcotics trafficking activities of the Gulf Cartel.
The indictment, returned under seal Oct. 22, 2014, was unsealed Monday, May 18, 2015.
Briones-Ruiz, Nieto-Gonzalez and others allegedly conspired from Jan. 1, 2005, to Oct. 22, 2014, to possess with the intent to distribute more than five kilograms of cocaine. If convicted, they each face no less than 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
Briones-Ruiz, Nieto-Gonzalez and Beattie de Briones are charged with conspiring during the same time period to launder the proceeds from distributing controlled substances. They face a maximum of 20 years imprisonment and a possible $500,000 maximum fine.
In addition, Briones-Ruiz and another are further charged with international transportation of funds from drug sales which also carries a 20-year-maximum and $500,000 fine.
Finally, Briones-Ruiz and his wife allegedly structured transactions to evade reporting requirements. If convicted of that offense, they each face another 10 years in federal prison and $500,000 fine.
The government also gave notice in the indictment that it intends to seek forfeiture of properties Gonzalez-Nieto owned.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, sheriff’s offices in Cameron and Willacy Counties, and police departments in Brownsville, Port Isabel, Harlingen and San Benito. Assistant U.S. Attorney Michael Hess is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Former Bureau of Prisons Employee Charged with Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Charles Carstersen, 52, of Manteca, charging him with sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February and March 2015, while Carstersen was employed at the Bureau of Prisons, he recruited a 16-year-old girl to engage in prostitution. He rented hotel rooms for her in the Sacramento area, helped her to post ads online, and bought her clothes. On May 11, 2015, Carstersen was arrested and has been in custody as a flight risk and a danger to the community.
This case is the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force of which the Sacramento Police Department is a member, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, Carstersen faces 10 years to life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Forfeited Assets Seized in Internet Gambling and Money Laundering Case DistributedRead the Press Release
U.S. Attorney Richard S. Hartunian of the Northern District of New York announced today the distribution to numerous law enforcement agencies of over $9.6 million of forfeited assets seized during a multi-agency investigation of an international Internet gambling operation. Joining U.S. Attorney Hartunian were U.S. Marshal David McNulty, Sheriff Craig Apple Sr. of Albany County, Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division, Supervisory Special Agent Thomas Fattorusso of the IRS and Attorney Karen Heggen of the Saratoga County District of New York.
The assets were forfeited in connection with guilty pleas entered in U.S. District Court in the Northern District of New York by Philip Gurian, Michele Lasso and Alan Gould, each of whom pleaded guilty to conspiracy to launder monetary instruments and Jay Goldman, who pleaded guilty to transmission of wagering information.
A total of $9,628,093.75 was distributed by the U.S. Marshal’s Service to the Albany County Sheriff’s Office, the FBI, the IRS, the Albany County District Attorney’s Office, the Saratoga County District Attorney’s Office and the Broward County Sheriff’s Office as follows:
- Albany County Sheriff’s Office
$4,662,393.21
- Albany County District Attorney’s Office
$862,468.22
- Saratoga County District Attorney’s Office
$363,833.85
- Broward County Sheriff’s Office
$104,946.22
- IRS
$1,653,579.39
- FBI
$1,980,872.86
All of the above law enforcement agencies participated in an investigation which revealed that the above-named defendants operated a large-scale illegal gambling business using internet websites which allowed bettors to place thousands of wagers from New York, Florida, Indiana, California, Texas, Kansas, Nevada and elsewhere. Over a four year period, at least $10 million in illegal gambling proceeds were deposited into accounts in the names of sham corporations and accounts in Panama, Andorra and the Cayman Islands. Gurian admitted having said that he was making $150,000 each day. Lasso admitted helping Gurian launder the gambling proceeds to conceal the source and control of the money, depositing at least $8 million. Gould admitted involvement in $3.8 million in transactions. Goldman admitted accepting nearly 9,000 bets totaling over $1.5 million using foreign websites and eighteen different routers.
“Stripping criminals of illegal profits deprives them of the fuel that sustains their illegitimate enterprises,” said U.S. Attorney Hartunian. “In illegal gambling, money is both the way the crime is committed and the reason for committing it. No money equals no crime. Forfeiting the proceeds and instrumentalities of crime puts the money to work for good – helping the victims of crime, funding community programs and providing resources to be used to promote public safety. Equitable sharing redirects these illegal proceeds toward the local law enforcement agencies who work with their federal counterparts and U.S. Attorneys to dismantle large scale criminal enterprises like this one. Such sharing can enable a local police chief, sheriff, or district attorney to commit the necessary resources to conduct a complex, long term investigation that in the end enhances public safety.”
This case was prosecuted by Assistant U.S. Attorney Robert A. Sharpe of the Northern District of New York.
Five School Bus Owners Indicted for Bid-Rigging and Fraud Conspiracies at Puerto Rico Public School Bus AuctionRead the Press Release
A federal grand jury in San Juan, Puerto Rico, returned an indictment against five individuals for participating in bid rigging and fraud conspiracies at an auction for public school bus transportation contracts in Puerto Rico’s Caguas municipality, the Department of Justice announced today.
A seven-count felony indictment was filed yesterday in U.S. District Court of the District of Puerto Rico in San Juan against five bus transportation company owners: Gavino Rivera-Herrera, Luciano Vega-Martínez, Alfonso Gonzales-Nevarez, José L. Arroyo-Quiñones and René Garay-Rodríguez.
Count one charges the bus owners with participating in a conspiracy to rig bids and allocate the market for public school bus transportation services in the Caguas municipality. The second count charges the bus owners with conspiracy to commit mail fraud and counts three through seven charge the bus owners with committing mail fraud. According to the indictment, the defendants and others defrauded, and conspired to defraud, the Puerto Rico Department of Education and the Caguas municipality, among others, in order to fraudulently obtain contracts for school bus transportation services.
These charges relate to a 2013 Caguas municipality auction, at which four-year contracts for public school bus transportation were awarded. The indictment alleges that the defendants participated in the charged offenses from around August 2013 until at least May 2015.
“The defendants are charged with depriving taxpayers, the Municipality of Caguas and the Puerto Rico Department of Education of the benefits of a competitive bidding process for school bus contracts,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “This is unacceptable. The Division will continue its efforts to protect U.S. citizens across the country and hold accountable those who subvert competition.”
“Today’s case is the latest in our ongoing efforts to investigate and prosecute financial crimes, one of the priorities of the Department of Justice,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. “These arrests serve as a reminder that federal law enforcement agencies intend to vigorously prosecute those who manipulate the economic system to enrich themselves at the expense of the government.”
"Price fixing victimizes the consumer which in this case are the honest, hardworking and tax paying citizens living in Puerto Rico,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division. “Let there be no doubt, the FBI, along with law enforcement partners, will continue to investigate, charge and prosecute any individuals involved in these type of acts."
The bus owners are charged with bid rigging and market allocation in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than $1 million. Each count of mail fraud, and conspiracy to commit mail fraud, carries a maximum sentence of 20 years in prison and a $250,000 fine.
This is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. This investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the U.S. Attorney’s Office of the District of Puerto Rico, the FBI’s Puerto Rico Field Office and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
Five School Bus Owners Indicted for Bid-Rigging and Fraud Conspiracies at Puerto Rico Public School Bus AuctionRead the Press Release
WASHINGTON – A federal grand jury in San Juan, Puerto Rico, returned an indictment against five individuals for participating in bid rigging and fraud conspiracies at an auction for public school bus transportation contracts in Puerto Rico’s Caguas municipality, the Department of Justice announced today.
A seven-count felony indictment was filed yesterday in U.S. District Court for the District of Puerto Rico in San Juan against five bus transportation company owners: Gavino Rivera-Herrera, Luciano Vega-Martínez, Alfonso Gonzales-Nevárez, José L. Arroyo-Quiñones, and René Garay-Rodríguez.
Count one charges the bus owners with participating in a conspiracy to rig bids and allocate the market for public school bus transportation services in the Caguas municipality. The second count charges the bus owners with conspiracy to commit mail fraud, and counts three through seven charge the bus owners with committing mail fraud. According to the indictment, the defendants and others defrauded, and conspired to defraud, the Puerto Rico Department of Education and the Caguas municipality, among others, in order to fraudulently obtain contracts for school bus transportation services.
These charges relate to a 2013 Caguas municipality auction, at which four-year contracts for public school bus transportation were awarded. The indictment alleges that the defendants participated in the charged offenses from around August 2013 until at least May 2015.
“The defendants are charged with depriving taxpayers, the Municipality of Caguas and the Puerto Rico Department of Education of the benefits of a competitive bidding process for school bus contracts,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “This is unacceptable. The Division will continue its efforts to protect U.S. citizens across the country and hold accountable those who subvert competition.”
“Today’s case is the latest in our ongoing efforts to investigate and prosecute financial crimes, one of the priorities of the Department of Justice,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. “These arrests serve as a reminder that Federal law enforcement agencies intend to vigorously prosecute those who manipulate the economic system to enrich themselves at the expense of the government.”
“Price fixing victimizes the consumer which in this case are the honest, hardworking, and tax paying citizens living in Puerto Rico,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division. “Let there be no doubt, the FBI, along with law enforcement partners, will continue to investigate, charge, and prosecute any individuals involved in these type of acts.”
The bus owners are charged with bid rigging and market allocation in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than $1 million. Each count of mail fraud, and conspiracy to commit mail fraud, carries a maximum sentence of 20 years in prison and a $250,000 fine.
This is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. This investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the District of Puerto Rico U.S. Attorney’s Office, the FBI’s Puerto Rico Field Office, and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
Federal Court Prohibits Florida Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court has barred a Doral, Florida, man and his businesses from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order, to which Eleuterio Almanzar consented, was entered by U.S. District Court Judge Jose E. Martinez of the Southern District of Florida. The government’s complaint alleged that Almanzar prepared federal income tax returns for customers that understate the tax that is due or seek refunds larger than are appropriate. The injunction also bars Almanzar’s businesses, Almanzar Tax Accounting & Consulting Corp. and Almanzar Financial Services Corp., from continuing to prepare tax returns.
According to the complaint, the tax understatements were the result of improper education credits, first time homebuyer tax credits, earned income tax credits, charitable deductions and business expense deductions that Almanzar claimed for his customers without performing the required due diligence and despite the absence of any supporting documentation. Because some of these credits are refundable credits, the improper claims often resulted in refunds that were larger than appropriate, according to the suit. The Internal Revenue Service (IRS) interviewed several of Almanzar’s customers, who stated that the improper deductions and credits were not based on information they provided to Almanzar, and that they did not know that the improper deductions and credits had been taken on their tax return until after their return was filed.
The injunction requires Almanzar to provide a list of customers that identifies by name, social security number, address, e-mail address, telephone number and tax periods all persons for whom he has prepared federal tax returns or claims for refund since Jan. 1, 2009.
For the returns Almanzar prepared since 2009, which the IRS examined, the average tax deficiency was $3,249 per return, according to the complaint. Given the number of returns Almanzar has prepared since 2009, he has potentially caused millions of dollars of harm to the U.S. Treasury.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County, New Jersey, Man Sentenced to Seven Years in Prison for Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man was sentenced today to 84 months in prison for conspiring to defraud financial institutions and launder stolen funds as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Timothy Ricks, 47, of East Orange, New Jersey, previously pleaded guilty before Judge Jerome B. Simandle to a superseding indictment charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Judge Simandle imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Ricks was among 11 defendants charged in July 2012 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Ricks and others located oceanfront condominiums overbuilt by financially distressed developers and negotiated a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, New Jersey, other locations in New Jersey and in Naples, Florida – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and sale and finder’s fee agreements.
Ricks and others recruited straw buyers to purchase certain properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. The conspirators created false documents, such as fake W-2 forms, pay stubs, bank statements and investment statements, to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Ricks and others also caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Ricks and others received a portion of the proceeds after conspirators had funds wired or checks deposited into various accounts they controlled.
In addition to the prison term, Judge Simandle sentenced Ricks to serve five years of supervised release. Restitution will be determined at a hearing scheduled for July 9, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, in Newark, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Joshua Markowitz Esq., Princeton, New Jersey
Ellsworth Man Sentenced to 1½ Years for Failing to Register as a Sex OffenderRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that James Eggleston, 34, of Ellsworth, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock Jr. to1½ years in prison and five years of supervised release for failing to register as a sex offender under the Sex Offender Registration and Notification Act. Eggleston pleaded guilty to the charge on February 5, 2015.
According to court records, Eggleston was arrested in August of 2014 for an Ellsworth burglary. Investigators learned that Eggleston was required to register as a sex offender due to a 2003 Florida conviction, but that he had failed to do so in Maine. Eggleston admitted that he moved to Maine in April of 2014, four months before his arrest and had not notified authorities as required by law.
The investigation was conducted by the U.S. Marshals Service and the Ellsworth Police Department.
El Paso Man Sentenced to 10 Years Imprisonment for Receipt of Child PornographyRead the Press Release
In El Paso, 54–year-old Victor Jerome Reza was sentenced to ten years in federal prison for receipt and distribution of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, U.S. District Judge Philip R. Martinez ordered that Reza pay a $1,000 fine, be placed on supervised release for a period of ten years after completing his prison term and register as a sex offender. Judge Martinez also ordered that Reza surrender to federal authorities before July 20, 2015, to begin serving his prison term.
According to court records, the HSI El Paso Cyber Crimes Group executed a search warrant at the defendant’s residence on August 5, 2014, Evidence gathered during that search included the defendant’s laptop and desktop computers as well as an assortment of computer related media. A subsequent search of the seized material revealed the presence of 277 videos and 2,910 images depicting the sexual exploitation of minors downloaded from the Internet.
On February 26, 2015, Reza pleaded guilty to one count of receipt and distribution of child pornography.
“One of HSI’s highest priorities is to identify, arrest and ensure individuals guilty of such heinous crimes are removed from our community, and away from our children,” said Waldemar Rodriguez, special agent in charge of Homeland Security Investigations (HSI) El Paso. “HSI will use all its resources and ample investigative authorities to target child predators.”
This case was investigated by HSI El Paso and prosecuted by Assistant U.S. Attorney Rifian Newaz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Despite Mother’s Efforts to Influence Witnesses, Son Sentenced to 7 Years for Being a Felon in Possession of FirearmsRead the Press Release
Montgomery, Ala. – Sergio Dickerson, a 23-year old Montgomery resident, was sentenced Thursday, May 21, 2015 to 84 months in prison after pleading guilty to being a felon in possession of a firearm, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama.
In January 2014, Dickerson was involved in an automobile accident in Montgomery. After the accident, he was arrested by the Montgomery Police Department when witnesses told police they saw him hide a gun case in a drainage ditch before they arrived on the scene. The gun case was found and contained a handgun, an assault rifle, four magazines, including one 60-round capacity magazine, and over 1200 rounds of assorted ammunition.
Dickerson, who had previous robbery and theft felony convictions, was indicted by a federal grand jury in July of 2014 for being a felon in possession of a firearm. Shortly thereafter, Dickerson’s mother, Bernadette Dickerson, began contacting witnesses in the case in order to entice them to not testify against her son. She was sentenced to 12 months and 1 day in prison for witness tampering.
The case was investigated by the FBI's Central Alabama Safe Streets Violent Gang task force, with assistance from the Montgomery Police Department, and was prosecuted by Assistant United States Attorney John Geer.
Department of Justice Proposes Legislation to Improve Access to Voting for American Indians and Alaska NativesRead the Press Release
Today the Department of Justice proposed legislation that would require states or localities whose territory includes part or all of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected by the tribal government.
“The Department of Justice is deeply committed to ensuring that every eligible individual is able to exercise his or her fundamental right to vote,” said Attorney General Loretta E. Lynch. “That’s why, today, I am calling on Congress to help remove the significant and unnecessary barriers that for too long have confronted American Indians and Alaska Natives attempting to cast their ballots. The legislation we recommend today will make this nation stronger by extending meaningful voting opportunities to native populations, by encouraging full participation in our democratic institutions, and by bringing us closer to our most cherished ideals.”
“As citizens of a nation founded upon the principles of liberty and equality, Native Americans have faced unacceptable barriers to participating in the franchise, a situation aggravated by a history of discrimination, poverty and — significantly — great distances from polling places,” said Acting Associate Attorney General Stuart Delery. “In spite of many reforms made possible by the Voting Rights Act and other measures, voting rates among Native Americans remain disproportionately low. The legislation proposed today would address this unacceptable gap and we look forward to working with Congress to see it enacted.”
American Indians and Alaska Natives have faced significant obstacles that have prevented them from enjoying equal access to polling places and equal opportunities to cast a ballot. In addition to suffering from a long history of discrimination, the distance many American Indian and Alaska Native citizens must travel to reach a polling place presents a substantial and ongoing barrier to full voter participation. Following formal consultations with Indian tribes, the Department of Justice believes that there is a pressing need for federal legislation to ensure equal access to voting by Native American voters.
Today, the Department of Justice sent a letter to Congress with a legislative proposal, which would ensure that American Indian and Alaska Natives have access to at least one polling place in their communities to cast their ballots and require a number of additional obligations to ensure parity with other polling places.
This legislative proposal, a stand-alone bill, would:
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Enable Native Americans to vote on or near tribal lands, by requiring any state or local election administrator whose territory includes part or all of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected, and made available for the purpose of conducting elections, by the tribal government.
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Require states to make voting machines, ballots, and other voting materials and equipment available at these tribally located polling places to the same extent that they are available at other polling places in the state.
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Require states to provide compensation and other benefits to election officials and poll workers at these polling places to the same extent as at other polling places in the state.
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Require states to use the same voting procedures at these polling places as at other polling places in the state — potentially including election-day voting, early voting, the hours during which polling places are open, the operation of voting mechanisms or systems, and same-day registration.
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Allow states to meet their obligations by either creating new polling places or relocating existing ones.
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Allow tribes with larger populations or land bases to request more than one polling place.
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Make the states’ obligations contingent on the tribe filing a timely request and certifying that it has arranged for access to, and appropriate staffing for, the polling facility.
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Require the tribe to ensure that the staffers for the polling place are properly trained.
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Require the tribe to ensure that the polling place will be open and accessible to all eligible citizens who reside in the precinct, regardless of whether they are Indians or non-Indians.
The Department of Justice is committed to ensuring equal access to voting for Native American voters. This proposal would address serious voting obstacles faced by citizens who are members of Indian tribes and Alaska Native villages; provide equal access to polling places for all eligible citizens, including members of tribes and villages; reinforce our nation’s commitment to the fundamental right to vote; and strengthen the government-to-government relationship between the United States and tribal nations.
In 1975, recognizing the barriers to full participation that Native Americans continued to confront, Congress expressly included American Indians and Alaska Natives as protected groups under the special provisions of the Voting Rights Act. Sections 4 and 5 of the Voting Rights Act prohibited many jurisdictions with large American Indian or Alaska Native populations from changing their voting laws until they could prove that the change would not create new barriers to effective participation. A number of jurisdictions with large Native American populations that have limited English proficiency — in six states, including Alaska — are also covered by Section 203 of the Voting Rights Act, which requires bilingual election materials and assistance.
Despite these reforms, participation rates among American Indians and Alaska Natives continue to lag behind turnout rates among non-Native voters. For example, in Alaska, turnout among Alaska Natives often falls 15 to 20 or more percentage points below the non-Native turnout rate. The causes of these disparities are complex, but the reality is that political participation by Native Americans consistently trails that of non-Natives and unequal access to polling places is a significant contributing factor.
Review the legislation at www.justice.gov/tribal/department-justice-proposes-legislation-improve-access-voting-american-indians-and-alaska.
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Defendants in El Paso Crystal Meth Distribution Ring Sentenced to Lengthy Federal Prison TermsRead the Press Release
In El Paso, ten individuals have been sentenced to federal prison in connection with a “crystal” methamphetamine distribution scheme announced Acting United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Will Glaspy, El Paso Division.
On Tuesday, United States District Judge Kathleen Cardone sentenced 44–year-old Edwardo Rodriguez of El Paso to 250 months in federal prison followed by five years of supervised release. Before sentencing Rodriguez, Judge Cardone sentenced nine of his co-defendants to terms of imprisonment ranging from 180 months to 18 months. All ten pleaded guilty to a charge of conspiracy to possess with intent to distribute a controlled substance.
By pleading guilty, the defendants admitted to trafficking methamphetamine between January and June 2014. According to court records, Rodriguez and the others conspired to distribute methamphetamine from Mexico, into El Paso, and ultimately to destinations across the United States including California, Illinois and Georgia. During this investigation, authorities seized approximately five kilograms of methamphetamine attributed to this organization—3.5 kilograms of which was considered 99% pure.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the Drug Enforcement Administration (DEA) together with the Homeland Security Investigations (HSI) and the El Paso County Sheriff’s Office.
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.
Current and Former Executives of an Automotive Parts Manufacturer Indicted for Roles in Conspiracy to Fix Prices - Investigation Has Resulted in Charges Against 90 Individuals and CorporationsRead the Press Release
A Detroit federal grand jury returned a one-count indictment against two executives of a Japanese automotive parts manufacturer for their participation in a conspiracy to fix prices and rig bids of automotive parts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Norio Teranishi, formerly of NGK Spark Plug Co. Ltd., and Hisashi Nakanishi of NGK Spark Plug, with conspiring to fix the prices of spark plugs, standard oxygen sensors, and air fuel ratio sensors, sold to DaimlerChrysler AG, Ford Motor Company, Fuji Heavy Industries (Subaru), General Motors Company, Honda Motor Company Ltd., Nissan Motor Co. Ltd., Toyota Motor Corporation, and certain of their U.S. subsidiaries.
Teranishi is the former General Manager of Sales and Vice-Head of the Automotive Component Group at NGK Spark Plug. During the alleged conspiracy, Nakanishi served as the Managing Director of NGK Spark Plug Europe.
The indictment alleges, among other things, that beginning at least as early as January 2000 and continuing until at least July 2011, Teranishi and Nakanishi, and their co-conspirators participated in, and directed, authorized or consented to the participation of subordinate employees in, meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply, and fix the price of spark plugs, standard oxygen sensors, and air fuel ratio sensors sold to certain automobile manufacturers, in the United States and elsewhere.
“As a result of Antitrust Division’s automotive parts investigation, more than 50 individuals have been held accountable for corrupting the competitive process in this important global market,” said Deputy Assistant Attorney General Brent Snyder of the Antitrust Division’s Criminal Enforcement Program. “The Antitrust Division will continue to vigorously prosecute those individuals who engaged in criminal antitrust violations in this vital market.”
“The criminal manipulation of the global automotive parts market through price fixing and bid rigging is a serious offense,” stated Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office. “The FBI, together with the Department of Justice Antitrust Division, will continue to aggressively pursue those who seek to commit criminal antitrust violations in order to gain a competitive advantage through corruption of the global marketplace.”
NGK Spark Plug is a corporation organized and existing under the laws of Japan with its principal place of business in Nagoya, Japan. On Oct. 8, 2014, NGK Spark Plug pleaded guilty and agreed to pay a $52.1 million criminal fine for its role in the conspiracy.
Including Teranishi and Nakanishi, 55 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing and bid rigging in the automotive parts industry. Additionally, 35 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.5 billion in criminal fines.
Teranishi and Nakanishi are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Cross Lanes man admits to selling high grade methamphetamineRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that David Matthew Little, age 37, of Cross Lanes, West Virginia pled guilty in federal court in Charleston to conspiring with other people to distribute more than 5 grams of pure crystal methamphetamine. Little admitted that from early 2014 until December of that same year, he conspired with his wife, Cheri Little, to distribute methamphetamine at his home and other places in Cross Lanes. Little admitted that he obtained ounce quantities of methamphetamine from an unnamed source, paying $1375.00 per ounce, and then resold part of the meth for a profit. Because of the purity of the drug distributed by Little, he faces from a mandatory minimum of five years up to 40 years imprisonment and a $5,000,000.00 fine when he is sentenced on August 19, 2015.
The case was investigated by members of the Metropolitan Drug Enforcement Network Team. The case was prosecuted by Assistant United States Attorney John Frail.
Columbus Bank Robber Sentenced to 78 MonthsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Frederick Worrills, 47, of Columbus, Georgia was sentenced today by the Honorable Judge Clay D. Land, United States District Judge in Columbus. Mr. Worrills was sentenced to 78 months for bank robbery.
On December 17, 2014, Mr. Worrills entered a Bank of America branch in Columbus and attempted to withdraw funds from his account. Mr. Worrills was told that his account was overdrawn by the teller. He left without any incident. Later that same day, Mr. Worrills returned and approached the same teller. He didn’t try to conceal his identity, even though he was known to many of the tellers. Mr. Worrills handed the teller a note that stated “Give me all your money I got a gun.” No firearm could be seen but Mr. Worrills kept one hand out of sight. He left with $3764.54. The robbery was captured on surveillance video. The teller and other Bank of America employees positively identified Mr. Worrills as the robber. The FBI went to Mr. Worrills’ address and met with his mother who lives with him. She also identified Mr. Worrills as the robber.
“Mr. Worrills not only took money from a federally insured bank, he also put lives in jeopardy by threatening the tellers and requiring law enforcement officers to search for him,” United States Attorney Michael Moore said. “Instead of hitting the jackpot, Mr. Worrills will be hitting the federal prison system, where he’ll serve a sentence that is appropriate for his criminal conduct.”
The case was investigated by the Federal Bureau of Investigation and the Columbus Police Department. Assistant United States Attorney Melvin E. Hyde, Jr. prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Colp Resident Sentenced for Drug ConspiracyRead the Press Release
On May 18, 2015, Ahamad R. Atkins, a/k/a "Omar," and "O," 34, of Colp, IL, was sentenced for a federal drug violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Atkins, who had previously pled guilty to an indictment charging conspiracy to distribute crack cocaine and heroin, was sentenced to 216 months in federal prison, to be followed by 3 years of supervised release, and $400.00. The offense occurred between 2012 and May 2014, in Williamson County. Evidence at the plea and sentencing hearings, established that Atkins and co-defendant Antuan Perkins, a/k/a "Little Man," and others were bringing large amounts of cocaine and heroin from Chicago to Colp for distribution. In Colp, Atkins often cooked the powder cocaine into crack cocaine. On multiple occasions, Atkins sold crack cocaine and heroin to confidential sources working for law enforcement. Atkins often had other persons assisting him in the distributions. At sentencing, the district court found that Atkins was responsible for the distribution of 701.2 grams of crack cocaine, 1009 grams of powder cocaine, and 1430.1 grams of heroin. Atkins received a sentencing enhancement because he possessed multiple firearms during his drug dealing. Because Atkins falsely denied and frivolously contested much of his drug involvement at sentencing, the district court found that Atkins had not accepted responsibility for his offense. Co-defendant Perkins has pled guilty to the crack cocaine and heroin offense and is currently awaiting sentencing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Chico Man Charged with Filming Sexual Abuse of a ChildRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Nathan Alexander Drury, 36, of Chico, charging him with nine counts of production of child pornography and one count of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January 2013 and December 2014, Drury filmed and photographed sexually explicit images of a prepubescent child. Drury also possessed additional images of children engaged in sexually explicit conduct.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the Chico Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Drury has been in custody since he was arrested on March 23, 2015. He is scheduled to be arraigned today before U.S. Magistrate Judge Dale A. Drozd in Sacramento.
If convicted, each of the production of child pornography counts carries a maximum statutory penalty of 30 years in prison. If convicted of the possession of child pornography charge, Drury faces a maximum statutory penalty of 10 years in prison. Each charge in the indictment carries a potential fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Career car thief sentenced to federal prisonRead the Press Release
20 high-end vehicles with a value of over $400,000 stolen
PRESS RELEASE
INDIANAPOLIS- United States Attorney Josh J. Minkler announced today an Indianapolis man was sentenced to federal prison for his role in a series of automobile and truck thefts. George Roby, 68, Indianapolis, was sentenced to 110 months (over nine years) by U. S. District Judge Sarah Evans Barker. He was convicted after a four-day jury trial in February 2015.
“According to national statistics, a vehicle is stolen in the United States every 44 seconds,” said Minkler. “Car thieves drive up the price of vehicles and the insurance we pay every day. Mr. Robey and his associates will think better of stealing cars in the future.”
Robey is a career car thief whose first conviction for car theft dates back to 1988. Beginning in 2009, and lasting until 2011, George Robey, would utilize a computer and other counterfeiting equipment to create fake vehicle identification stickers, sales documents, titles, and temporary license plates. Robey would use the documents to alter the vehicle identification numbers on stolen cars and sell them, thereby making it harder for police to identify the vehicles as stolen.
Through these acts, Robey and his associates stole nearly 20 vehicles with a value of over $400,000. These vehicles included multiple performance cars such as Chevrolet Camaros, Ford Mustangs, and Cadillac CTSs.
This case was jointly investigated by the United States Secret Service, Indiana State Police, Carmel Police Department, and the Department of Motor Vehicles for Washington D.C. and North Carolina.
According to Assistant United States Attorneys Bradley Shepard and Nicholas Linder who prosecuted this case for the government, Robey must serve three years of supervised release following his sentence.
California Operator of MyRedBook.com Sentenced to 13 Months in Prison for Facilitating ProstitutionRead the Press Release
Defendant Also Ordered to Forfeit More Than $1.28 Million
A California man was sentenced to 13 months in prison today for his operation of the myRedBook.com website to facilitate prostitution. This represents the first federal conviction of a website operator for facilitation of prostitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation (IRS-CI) Oakland Field Office made the announcement.
Eric Omuro, also known as Red, 53, of Mountain View, California, pleaded guilty on Dec. 11, 2014, before U.S. District Judge William H. Orrick of the Northern District of California to using a facility of interstate commerce with the intent to facilitate prostitution. As part of his plea agreement, Omuro agreed to forfeit more than $1.28 million in cash and property, as well as the sfRedBook.com and myRedBook.com domain names.
In connection with his guilty plea, Omuro admitted that from April 2010 until June 25, 2014, he owned, managed and operated a website known as myRedBook.com, which was previously known as sfredbook.com. Omuro admitted that the website hosted advertisements posted by prostitutes containing explicit photos, graphic descriptions of sexual services offered and rates for the sexual services. The advertisements were searchable by geographic location, including cities throughout California, other U.S. states and Canada.
Omuro admitted that members of his website and prostitutes typically used acronyms for sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. While prostitutes could post advertisements for free, myRedBook.com offered additional options for a fee. For example, prostitutes could pay a fee to have their advertisement featured more prominently on the website. Similarly, customers could access myRedBook.com for free. If a customer purchased a membership, however, the customer obtained early and enhanced access to prostitute reviews, enhanced prostitute review search options and access to additional VIP forums, among other things.
According to an affidavit submitted in connection with the sentencing hearing, the FBI identified more than 50 juveniles who were also advertised on myRedBook for the purpose of prostitution.
This case was investigated by the FBI’s San Francisco Field Office, the IRS-CI and the Oakland, California, Police Department. The case is being prosecuted by the Criminal Division’s Child Exploitation and Obscenity Section and U.S. Attorney’s Office of the Northern District of California. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.
California Operator of MYREDBOOK.COM Sentenced to 13 Months in Prison for Facilitating ProstitutionRead the Press Release
SAN FRANCISCO – A California man was sentenced to 13 months today for his operation of the myRedBook.com website to facilitate prostitution announced U.S. Attorney Melinda Haag, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, and Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation (IRS-CI) Oakland Field Office. This represents the first federal conviction of a website operator for facilitation of prostitution.
Eric Omuro, aka Red, 53, of Mountain View, Calif., pleaded guilty on Dec. 11, 2014, before U.S. District Judge William H. Orrick of the Northern District of California to using a facility of interstate commerce with the intent to facilitate prostitution. As part of his plea agreement, Omuro agreed to forfeit more than $1.28 million in cash and property, as well as the sfRedBook.com and myRedBook.com domain names.
In connection with his guilty plea, Omuro admitted that from April 2010 until June 25, 2014, he owned, managed and operated a website known as myRedBook.com, which was previously known as sfredbook.com. Omuro admitted that the website hosted advertisements posted by prostitutes containing explicit photos, graphic descriptions of sexual services offered, and rates for the sexual services. The advertisements were searchable by geographic location, including cities throughout California, other U.S. states and Canada.
Omuro admitted that members of his website and prostitutes typically used acronyms for sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. While prostitutes could post advertisements for free, myRedBook.com offered additional options for a fee. For example, prostitutes could pay a fee to have their advertisement featured more prominently on the website. Similarly, customers could access myRedBook.com for free. If a customer purchased a membership, however, the customer obtained early and enhanced access to prostitute reviews, enhanced prostitute review search options and access to additional VIP forums, among other things.
According to an affidavit submitted in connection with the sentencing hearing, the FBI identified more than 50 juveniles who were also advertised on myRedBook for the purpose of prostitution.
The U.S. Attorney’s Office for the Northern District of California and the U.S. Department of Justice Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case. This case was investigated by the FBI’s San Francisco Field Office, the IRS-CI and the Oakland, California, Police Department. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.
California Man Pleads Guilty to Operating $1.6 Million Internet FraudRead the Press Release
KANSAS CITY, KAN. – A California man pleaded guilty Thursday in federal court in Kansas to operating an Internet fraud scheme that cost more than 200 victims a total of more than $1.6 million, U.S. Attorney Barry Grissom said.
Anthony Renfrow, 57, Folsom, Calif., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted he made fraudulent claims to entice people to pay to become “autosurf investors” with 14DailyPlus.com.
Investors paid a membership fee and were promised a 14 percent daily return on their money for clicking on advertisers’ Web sites for a certain period of time each day. To achieve that rate of return, 14DailyPlus.com purportedly pooled the capital investments of members and purchased advertising units on the Internet with Fortune-500 type companies.
Renfrow held regularly scheduled conference calls with investors via telephone and Internet to lull them into believing the program was legitimate and returns on investments were being paid as promised. In truth, there was no investment vehicle and the promise of a 14 percent daily return was completely unrealistic.
Renfrow founded 14DailyPlus.com in March 2006. Co-defendant William Fox, 46, formerly of Olathe, Kan., allegedly was a promoter and recruiter for 14DailyPlus.com in the Kansas City metropolitan area. He is awaiting trial.
Sentencing will be set for a later date. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service – Criminal Investigation, the U.S. Postal Inspection Service, the Johnson County District Attorney’s Office, the California Attorney General’s Office and Assistant U.S. Attorney Scott Rask for their work on the case.
Bridgeport Cocaine Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on May 19, DAMONT GEE, also known as “Monty,” 39, of Bridgeport, was sentenced by Chief U.S. District Judge Janet C. Hall in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine
This matter stems from “Operation Slim Fast,” a joint law enforcement investigation that focused on two drug trafficking organizations, one that operated out of Bridgeport and one that operated out of Bridgeport, Puerto Rico, and Springfield, Mass. In 2010, members of the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force initiated an investigation of narcotics trafficking activity in and around the Marina Village Housing Complex in Bridgeport that focused primarily on the Marina Village Bloods, a violent narcotics trafficking organization. Members of the Marina Village Bloods have been responsible for, or connected to, multiple shootings in Bridgeport.
The investigation revealed that members of the Sex, Money, Murder set of the Marina Village Bloods, sold large quantities of narcotics from an abandoned residence at 105/107 Johnson Street, which is located across from the street from the Marina Village Housing Complex.
GEE was believed to have been a member, or close associate, of the Marina Village Bloods, until his brother, Richard Gee, was killed in a gun battle across the street from 105/107 Johnson Street on July 17, 2010.
Between September and November 2010, the Task Force made five controlled purchases of a total of approximately 449 grams of cocaine from GEE. Subsequent intercepted calls and surveillance confirmed that GEE was the source of supply of cocaine for several street-level dealers and customers in the Bridgeport area.
GEE was arrested on January 4, 2011, after he and an associate traveled to a meeting location in Hartford to purchase four kilograms of cocaine. Task Force officers seized the cocaine, as well as more than $100,000 in cash from GEE and his associate.
GEE has been detained since his arrest. On June 6, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
As a result of this investigation, 19 individuals were charged with various narcotics and firearms related offenses, and law enforcement officers seized approximately four kilograms of cocaine, one kilogram of crack cocaine, a quantity of heroin, an SKS assault rifle, five handguns and more than $150,000 in cash.
This matter was investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force, including personnel from the FBI and the Bridgeport, Norwalk and Trumbull Police Departments, with assistance from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Drug Enforcement Administration, Connecticut State Police, and Hartford, Stratford and Stamford Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Tracy Dayton and Doug Morabito.
Bowling Green, Kentucky, Convicted Felon Charged with Violating Federal Firearms LawsRead the Press Release
BOWLING GREEN, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the arrest and initial appearance, in U.S. District Court, of convicted felon Jackie Lee Bowles, Jr., on charges of possession of a firearm and ammunition by a convicted felon.
Bowles, age 26, of Bowling Green, was arrested on federal charges following an alleged high-speed chase and armed standoff with law enforcement yesterday, in Bowling Green, Kentucky. Bowles was charged with the possession of a loaded, General Precision Corp., Model 20, .22 caliber revolver.
According to an affidavit filed with a federal criminal complaint, Bowles pointed a handgun at a self-identified police officer, threatened to shoot additional police officers in the head, and identified himself as a Captain with the Aryan Nation. Bowles is a convicted felon, having previously pled guilty in United States District Court to charges of possession and distribution of crack cocaine (case number 1:08cr40) on January 7, 2009. Bowles is currently on Supervised Release from that conviction.
Bowles was involved in a pursuit by police at a high rate of speed, after failing to stop his vehicle for an alleged traffic violation. He fled that vehicle on foot. Bowles was later approached by law enforcement when the officer recognized him as a passenger in a vehicle at a convenience store on Louisville Road in Bowling Green. A Warren County Sheriff’s Department Sergeant identified himself and at that time, Bowles allegedly raised a handgun and pointed it at the Sergeant. Other officers arrived and established a perimeter around Bowles’ vehicle and evacuated several surrounding businesses and locked down two area schools. During this time, Bowles made several phone calls. During one of the calls, he could be heard by law enforcement officials saying “I’ll have to shoot them in the head.” Bowles is alleged to have made the comment as officers arrived with visible body armor.
Bowles is in the custody of the U.S. Marshals Service.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by ATF, in conjunction with the Warren County Sheriff’s Office and Kentucky State Police.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Boston Man Sentenced to Almost Four Years for Interstate Travel to Promote ProstitutionRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Fritz Blanchard, 28, of Boston, Massachusetts, was sentenced today in U.S. District Court by Judge Nancy Torresen to 46 months in prison and three years of supervised release for aiding and abetting the transportation of women in interstate commerce for prostitution. On August 28, 2014, following a four-day jury trial, a jury found him guilty of the charge.
According to the indictment and trial evidence, on March 27, 2013, Blanchard and Samuel Gravely caused a Presque Isle woman and a Portland woman to work as prostitutes at a Portland hotel, advertising their services on backpage.com. On March 28, Blanchard and Gravely drove the two women, and another Portland woman, from Portland to Boston intending that the three work as prostitutes there. When they arrived in Boston, Blanchard took two of the women to a downtown street and told them how to attract customers and engage in prostitution. One of the two women, upon learning what was expected of her, feigned illness, separated herself, and contacted the police.
U.S. Attorney Delahanty commended the cooperation of federal, state and local law enforcement agencies in Maine and Massachusetts that lead to the rescue of these women and the successful prosecution and conviction of the defendant.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Boston Police Department; the Federal Bureau of Investigation; the Portland, Presque Isle, Old Town, Brunswick and Saco Police Departments; the Maine Drug Enforcement Agency; and Cumberland County Sheriff’s Office.
Bossier City man pleads guilty to receiving child pornography on computerRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Bossier City man pleaded guilty Wednesday to receiving child pornography.
Kenneth Ray Jurls, 40, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote for one count of receiving child pornography. According to evidence presented at the guilty plea, law enforcement agents detected someone downloading child pornography using a peer-to-peer internet file sharing program. Law enforcement agents searched Jurls’ home on July 16, 2014 and seized his computer. A forensic examination of the computer revealed Jurls had been downloading child pornography for years. More than 1,000 images and videos of child pornography were found on his computer. The images included prepubescent children engaging in sexual and sadistic acts.
Because Jurls has two prior convictions for possession of child pornography in Bossier Parish, he faces 15 to 40 years in prison, not less than five years of supervised release, and a $250,000 fine. He is also required to register as a sex offender. A sentencing date of September 15, 2015 was set.
Homeland Security Investigations, Louisiana Attorney General’s Office and the Bossier City Marshal’s Office investigated the case. Assistant U.S. Attorney Michael O’Mara is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Bismarck Man Sentenced in Sexual Exploitation of a MinorRead the Press Release
BISMARCK - Acting U. S. Attorney Christopher C. Myers announced that on May 21, 2015, Garron Gonzalez, 38, Bismarck, North Dakota, was sentenced before U. S. District Judge Daniel L. Hovland to serve 25 years in prison for attempted exploitation of a minor. Judge Hovland also sentenced Gonzalez to 20 years supervised release and to pay a $100 special assessment to the Crime Victims Fund. Judge Hovland ordered the sentence to run consecutively with Gonzalez’s current state sentence of imprisonment, which is set to expire in 2015.
In December 2010, HSI-ICE began investigating Gonzalez for probation violation and seized two cellular telephones which revealed Gonzalez had been in contact with several juvenile females through various social media including text messaging. During the investigation, nude images of a 15-year-old female victim were found on Gonzalez’s phone along with sexually explicit in messages.
This case was investigated by Homeland Security Investigation ICE and the Yankton Police Department.
Assistant U. S. Attorney Gary Delorme prosecuted the case.
Birmingham Area Doctors Charged with Illegally Supplying Controlled SubstancesRead the Press Release
BIRMINGHAM – As part of the Drug Enforcement Agency's Operation Pilluted, federal authorities today arrested a Midfield doctor and charged a Birmingham doctor for illegally supplying controlled substances, announced U.S. Attorney Joyce White Vance, DEA Assistant Special Agent in Charge Clay A. Morris and Alabama Law Enforcement Agency Secretary Spencer Collier.
DEA agents this morning arrested ERNEST ALBERT CLAYBON, 72, on charges that he distributed methadone without a legitimate medical purpose. A federal grand jury indicted Claybon April 30 on five counts of distributing methadone "outside the scope of professional practice and not for a legitimate medical purpose" between November 2014 and January 2015. Claybon was arrested at his family medicine practice in Midfield.
In a separate case, The U.S. Attorney's Office charged PETER ALAN LODEWICK, 73, a physician at Lodewick Diabetes Center on Montclair Road, in a one-count information filed in U.S. District Court. The information charges that Lodewick assisted someone else in acquiring the narcotic painkiller, oxycodone, by "misrepresentation, fraud, forgery, deception, and subterfuge." Lodewick has entered a plea agreement with the government acknowledging the charges against him and stating his intention to plead guilty. Prosecutors filed the plea agreement in District Court today.
A third physician in north Alabama, MUHAMMAD WASIM ALI, 50, who owns a pain clinic in Jasper, was indicted last month on charges of illegally distributing narcotic painkillers for other than legitimate medical purposes.
Charges against the three doctors resulted from DEA's 15-month Operation Pilluted in Alabama, Arkansas, Louisiana and Mississippi, focused on reducing trafficking and abuse of pharmaceuticals.
"Alabama leads the nation in the number of per capita prescriptions for opioid painkillers, which are extremely addictive and often abused," Vance said. "The proper use of these drugs for pain management is important, but their abuse is deadly. Prescription-drug abusers often shift to heroin abuse and this tragic trend contributes to our epidemic overdose death rates. We must ensure that doctors don’t turn into illegal drug dealers," she said.
“Prescription drug abuse is the fasting-growing drug problem in the country," Morris said. "We trust our doctors to heal our bodies, not poison our communities. We will not tolerate or accept illegal prescribing, and we will bring justice to those who condone or participate in this type of practice," he said.
According to Lodewick's plea agreement, he issued about 390 prescriptions for controlled substances between January 2013 and December 2014 to a group of pill-seekers led by the doctor's housekeeper. In May 2013, Lodewick discovered that three individuals in the group were pharmacy-shopping and wrote them letters terminating their physician-patient relationship, but continued to write them opiate prescriptions, according to the plea agreement.
Lodewick voluntarily surrendered his DEA registration, ending his ability to prescribe controlled substances, in January, according to his plea agreement. He is scheduled to be arraigned on his charges Thursday.
Claybon was arraigned today.
The maximum penalty for the aiding and abetting charge against Lodewick is four years in prison and a $250,000 fine.
The maximum penalty for each distribution charge against Claybon is 20 years and a $1 million fine.
DEA, ALEA and Internal Revenue Service, Criminal Investigation, investigated the cases being prosecuted by the U.S. Attorney's Office for the Northern District of Alabama.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Attorney Charged with Stealing $1.8 Million from Oxford Woman's EstateRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER M. CLARK, 57, of Woodbury, was arrested today on a federal criminal complaint charging him with stealing more than $1.8 million from the estate of an Oxford woman who died in 2010.
According to the criminal complaint, Miriam S. Strong of Oxford died on July 2, 2010. At the time of her death, Strong had a will, which left money, property and other items to a list of individuals, the Town of Oxford, the State of Connecticut, and several religious and other charitable entities. The will also called for the creation of a scholarship fund for college-bound students from Oxford. CLARK drafted the will as Strong’s attorney and served as a witness to Strong’s execution of the will. The will named CLARK and another individual as co-executors. The investigation has revealed that, during the course of the administration of the will, CLARK took at least $1.8 million from Strong’s estate for his own use.
The complaint charges CLARK with one count of mail fraud, which carries a maximum term of imprisonment of 20 years.
CLARK was arrested this morning at his residence. He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and will be released after he posts a $500,000 bond that will be co-signed by family members.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police – Western District Major Crime Squad. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Assistant Administrator of Riverside General Hospital Sentenced to 40 Years in Prison for $116 Million Medicare Fraud SchemeRead the Press Release
The former assistant administrator of Riverside General Hospital was sentenced today to 40 years in prison for his role in a $116 million Medicare fraud scheme. To date, 10 individuals have pleaded guilty or been convicted for their involvement in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Mohammad Khan, 65, of Houston, the assistant administrator who oversaw many of the partial hospitalization programs (PHPs) at Riverside General Hospital, pleaded guilty in February 2012 to conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks and paying illegal kickbacks. He was sentenced by U.S. District Court Judge Sim Lake of the Southern District of Texas. He was also ordered to pay restitution in the amount of $31,321,200.
According to admissions made in connection with his guilty plea, from January 2008 through February 2012, Khan and others at Riverside General Hospital operated a scheme to defraud Medicare by submitting claims for PHP services that were not medically necessary and, in some cases, never provided. Prior to Khan’s arrest, Riverside submitted over $116 million in claims to Medicare for PHP services purportedly provided to the recruited beneficiaries, when in fact, the PHP services were medically unnecessary or never provided. Khan also admitted that he and his co-conspirators paid kickbacks to patient recruiters and to owners and operators of group care homes in exchange for which those individuals delivered ineligible Medicare beneficiaries to the hospital’s PHPs.
Others involved in the fraudulent scheme already have pleaded guilty and are awaiting sentencing. Earnest Gibson III, the former president of Riverside; his son, Earnest Gibson IV, who operated a Riverside PHP; Regina Askew, a patient file auditor and group home operator; and Robert Crane, a patient recruiter, were all convicted after jury trial in November 2014 and await sentencing. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie and Sharonda Holmes, who were involved in paying or receiving kickbacks, also have pleaded guilty to their roles in the scheme.
The case was investigated by the FBI, Internal Revenue Service Criminal Investigation and Texas Attorney General’s Medicaid Fraud Control Unit, with assistance from Health & Human Services’ Office of the Inspector General, Railroad Retirement Board’s Office of Inspector General and Office of Personnel Management’s Office of Inspector General. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who collectively have billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Army Sergeant Indicted for Accepting Bribes from Afghan Trucking Company in Exchange for Stealing Jet Fuel in AfghanistanRead the Press Release
HONOLULU -- Marvin L. Ware, 46, a Sergeant First Class with the 25th Infantry Division, 325th Brigade Support Battalion, Alpha Company, Schofield Army Barracks, Hawai’i has been indicted and arrested on federal charges arising from his alleged role in a scheme to steal jet fuel from Forward Operating Base Fenty, near Jalalabad, Afghanistan, in exchange for cash bribes from an Afghan trucking contractor.
According to an Indictment returned on May 20, 2015 by the federal grand jury in Hawai’i, during late 2011 and early 2012, FOB Fenty served as a regional fuel depot which supplied outlying U.S. military bases with JP8 jet fuel. Fuel deliveries were made by a local Afghan contractor, which transported the fuel in 3,000 gallon tanker trucks, termed “jingle trucks.” The Indictment alleges that between December 2011 and February 2012, Ware and two other servicemen, Sergeant Regionald Dixon and Specialist Larry Emmons, conspired to accept, and accepted, bribes in return for participating with the contractor in the theft of jet fuel from FOB Fenty. According to the Indictment, Ware and the others agreed to fill and divert jingle trucks, in return for which they received $6,000 for each truckload of stolen fuel.
The Indictment specifically alleges that Ware, Dixon and Emmons filled the jingle trucks with jet fuel, using United States military equipment, at clandestine locations and at times not likely to arouse suspicion. According to the Indictment, Ware and Emmons facilitated their scheme by creating fraudulent official military documents purporting to authorize the movement of fuel from FOB Fenty to other locations. Dixon and Emmons were charged and pled guilty to bribery charges in June 2012 for their participation in the scheme.
Ware was charged yesterday with conspiring to solicit and accept bribes, one count of bribery, one count of theft, and one count of money laundering based on the transfer, from Afghanistan to Wahiawa, Hawaii, of $25,000 which he knew were proceeds of his offenses, and which transfer was designed to conceal the nature, source and ownership of the funds.
Ware was arrested on May 21, 2015, and appeared in federal court, where he pled not guilty to all charges. Trial was scheduled for July 21, 2015 before United States District Judge Leslie E. Kobayashi. If convicted, Ware will face maximum penalties of five years’ imprisonment for the conspiracy offense, 15 years’ imprisonment for the bribery offense, 20 years’ imprisonment for the money laundering offense, and ten years’ imprisonment for the theft offense, as well as the forfeiture of the proceeds of the illegal activity. An indictment is merely an accusation, and Ware is presumed innocent until and unless proven guilty.
Ware is the seventh person charged as part of an ongoing, national investigation into the theft of fuel at FOB Fenty. In addition to Ware, Dixon and Emmons, Sergeant Christopher Weaver, Specialist Stephanie Charboneau, civilian Jonathan Hightower, and Sergeant First Class Kevin Abdullah were prosecuted in the District of Colorado and the Western District of Kentucky, respectively, for a separate scheme to steal fuel from FOB Fenty in 2010.
“It’s very troubling to discover that critical military supplies were stolen by the very people who are supposed to be protecting and serving our country,” said U.S. Attorney for the Southern District of California Laura Duffy. “That such corruption allegedly occurred in a war zone makes it even worse.”
“Today’s arrest again demonstrates our continued resolve to prosecute all corrupt public officials, at whatever level, wherever their conduct occurs,” added Florence E. Nakakuni, U.S. Attorney for Hawai’i.
“SIGAR has been at the forefront of a Southwest Asia theft of fuel initiative, which to date has prosecuted seven individuals, recovered over $1.6 million in illegal criminal proceeds and $20 million in civil penalties, and in the process, improved the safety and security of the supply of fuel to our Warfighters in Afghanistan. With the resources at our disposal, we will continue to identify and protect such strategic priorities through innovative, proactive investigatory measures, such as those that have proven so effective in these cases,” said John Sopko, the Special Inspector General of Afghanistan Reconstruction.
“It is reprehensible when a military service member abandons his ethical responsibilities and violates the sacred public trust for personal enrichment,” said Special Agent in Charge Janice M. Flores, of the Defense Criminal Investigative Service (“DCIS”) Southwest Field Office, Arlington, TX. “Today's arrest demonstrates the continued commitment of the DCIS, along with our law enforcement partners, to aggressively investigate and prosecute anyone who commits this kind of crime in order to protect the integrity of the Department of Defense and the sacrifices of the American public, especially those service members who are serving honorably and selflessly in Southwest Asia.”
The case is being investigated by SIGAR, DCIS, Army CID, and the Defense Contract Audit Agency, with substantial assistance from the FBI, and prosecuted by Assistant U.S. Attorneys Mark W. Pletcher of the Southern District of California and Ken Sorenson of the District of Hawai’i.
Anyone with information relating to fraud or corruption in government contracting should contact the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Arizona Man Sentenced for $10.2 Million Securities Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Globe, Ariz., man was sentenced in federal court today for his role in a $10.2 million securities fraud conspiracy that victimized more than 12,000 investors across the United States and Canada who bought shares in Petro America Corporation, which was purported to be a profitable company with $284 billion in assets.
Brian Langenbach, 46, of Globe, was sentenced by U.S. District Judge Brian C. Wimes to three years and 10 months in federal prison without parole. The court also ordered Langenbach to pay $696,660 in restitution.
Langenbach, the final defendant to be sentenced in this case, pleaded guilty on June 22, 2012. Five co-defendants were convicted at trial and Langenbach is among nine co-defendants who pleaded guilty.
Langenbach admitted that he participated in a conspiracy to commit securities fraud and wire fraud. Contrary to the fraudulent representations Langenbach and others made to victim-investors, Petro America had no oil, no realistic prospects for obtaining, transporting or storing large amounts of oil, no significant assets, no revenue and no employees other than the CEO.
Langenbach, a major figure in the Petro America scheme, was not licensed to sell securities. Langenbach admitted that he sold Petro America stock to at least 180 investors, receiving at least $400,000 in proceeds, from Aug. 20, 2009, to March 2, 2010. Although Langenbach became aware of red flags with the company, including the existence of cease and desist orders in Missouri and Kansas, he continued to sell shares anyway. When he sold shares, he relayed inflated expectations, and he did not disclose material negative information to investors, including the existence of the cease and desist orders.
Langenbach personally spoke on behalf of Petro during business dealings, and he personally attended at least one investor meeting and one update meeting in Arizona. Langenbach spoke on behalf of the company in negotiating business deals, and on multiple occasions entered into purported deals on behalf of his own company in partnership with Petro. Langenbach frequently spoke for Petro and sought out deals in order to bring purported assets into Petro so as to inflate the value of the stock.
This case was prosecuted by Assistant U.S. Attorneys Daniel M. Nelson and Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, the U.S. Postal Inspection Service and the Office of the Missouri Securities Commissioner.
Arizona Man Pleads Guilty to Trafficking Methamphetamine in New MexicoRead the Press Release
ALBUQUERQUE – Emery Lee Begay, 31, of Lakeside, Ariz., pleaded guilty today in federal court in Albuquerque, N.M., to conspiracy to distribute methamphetamine in Socorro and Catron Counties, N.M. Under the terms of his plea agreement, Begay will be sentenced to 60 months in federal prison followed by not less than three years of supervised release.
Begay and his co-defendant Jorge Luis Garcia-Valenzuela, 22, a Mexican national residing in Lakeside, Ariz., were arrested on Oct. 25, 2014, after they traveled to Quemado, N.M., with the intention of selling methamphetamine and marijuana to undercover officers. According to the complaint, on Aug. 19, 2015, Begay delivered approximately 22.6 grams of methamphetamine and approximately three kilograms of marijuana to the undercover officers in Socorro, N.M., after Garcia-Valenzuela allegedly negotiated the drug deal with the officers. The complaint also alleges that Garcia-Valenzuela and Begay were arrested on Oct. 25, 2014, in Quemado when they arrived to consummate a drug deal with the undercover officers. The officers allegedly seized approximately 800 grams of methamphetamine and more than eight kilograms of marijuana when they arrested the two men.
Begay and Garcia-Valenzuela were subsequently indicted on Nov. 19, 2014, and charged with conspiracy to distribute methamphetamine and marijuana, distribution of methamphetamine and marijuana, and possession of methamphetamine and marijuana with intent to distribute. According to the indictment, the offenses were committed between Aug. 19, 2014 and Oct. 25, 2014, in Socorro and Catron Counties.
During today’s proceedings, Begay pled guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute. Begay has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Garcia-Valenzuela has entered a plea of not guilty to the complaint and indictment. He remains in federal custody pending his trial which is currently scheduled for July 2015. If convicted on the charges in the indictment, Garcia-Valenzuela faces a statutory mandatory minimum of ten years and a maximum of life in prison. Charges in indictments and complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque and Gallup offices of the FBI, the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Ramah Navajo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Anchorage Man Indicted for Conspiracy to Launder $743,000 in Drug ProceedsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a federal grand jury has indicted another individual in connection with the seizure of large quantities of cocaine, methamphetamine, and cash late last fall. Loeffler indicated that this most recent indictment is related to several other drug trafficking cases announced late last year and that this new charge involves the laundering of nearly three quarters of a million dollars in drug proceeds.
The indictment announced today charges David Frazier, 52, of Anchorage, Alaska with one count of conspiring with others to launder the proceeds of drug trafficking. Frazier is the only defendant charged in the indictment.
According to the indictment, over the course of a four month period in 2013, Frazier worked with his co-conspirators to launder the proceeds earned from the sale of controlled substances. Frazier allegedly laundered the cash in order to promote his and his partners’ continued drug sales. In addition, the indictment alleges that, upon conviction, Frazier must forfeit any property involved in the money laundering scheme, including but not limited to the $743,000 in cash that can be linked to his criminal activities.
Assistant United States Attorney Stephanie Courter, who presented the case to the grand jury, indicated that, if convicted, Frazier faces a sentence of up to 20 years in prison, as well as a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the amount of drugs and money involved and any prior criminal history of the defendant.
This case is being prosecuted by Assistant U.S. Attorney Stephanie C. Courter. The case originated as part of a multi-agency investigation involving the Internal Revenue Service Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), and the Alaska State Troopers (AST), and the Anchorage Airport Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
Akron men sentenced to prison for having firearms and bringing heroin from Chicago to AkronRead the Press Release
Two Akron men were sentenced to prison for their roles in a conspiracy that brought heroin from Chicago to be sold around Ravenna and Akron, law enforcement officials said.
Rashid Carter, 30 was sentenced to 15 years in prison.
Laverne Fortson, 40, was sentenced to nine years in prison.
"These two used guns to protect their pipeline of heroin, and used drug houses to spread that heroin throughout Akron," said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“ATF’s primary mission is to reduce violent crime,” said Donald Soranno, Special Agent in Charge for ATF’s Columbus Field Division. “The sentencing of these individuals, who brought guns and drugs into their community, sends the strong message that ATF, with our federal, state, and local partners, will not accept violence as the status quo.”
“These individuals collaborated to deliver poison to our streets and we collaborated to bring them to jail,” said Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office. “This case was another outstanding example of what can be accomplished when local, state and federal agencies work together to protect our community.”
Fortson and Carter received heroin shipments in 2013 and 2014. In turn, they provided the heroin to another dealer distribution in and around Akron and Ravenna, according to court documents.
Carter also purchased heroin from a supplier in the Chicago area for distribution in and around Akron. He and Fortson supplied heroin to several dealers in Akron, some of whom in turn distributed the drug to other dealers. Carter played a role in transporting the heroin and drug proceeds between Chicago and Akron. Fortson provided cash to facilitate the Chicago drug transactions, according to court documents.
Fortson and Carter owned and rented properties in Akron that they used to store, process, and distribute heroin, according to court documents.
It was part of the conspiracy that Fortson and Carter illegally use firearms to protect themselves and their drug proceeds, according to court documents.
Carter illegally possessed a Firestar, .45-caliber pistol, a Taurus, model 85, .38 special revolver and ammunition on June 6, 2014, despite previous convictions for possession of cocaine in Portage County and failure to comply with a police officer in Summit County.
Fortson illegally possessed a Harrington and Richardson 16-gauge shotgun and ammunition on June 18, 2014, despite a previous conviction for aggravated trafficking in Portage County.
This investigation was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Summit County Drug Unit, the Akron Police Department and the Portage County Drug Unit, with assistance from the U.S. Marshal’s Service, the Ohio State Highway Patrol and the Portage County Prosecutor’s Office. The matter is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and M. Kendra Klump.
20 May 2015
Yakama Tribal Member Sentenced for Selling Eagle FeathersRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Benjamin Blue Arquette, age 25, was sentenced following his entry of a guilty plea earlier this year to one count of Commercializing in Eagles in violation of the Bald and Golden Eagle Protection Act (16 U.S.C. § 668(a)). A first offense of Commercializing in Eagles is a Class A misdemeanor, which carries a maximum penalty of one year in jail. Senior District Court Judge William Fremming Nielsen sentenced Arquette to 30 days in jail to be followed by one year of court supervision following his release from incarceration.
On January 12, 2015, Arquette admitted to selling tail feathers from two golden eagles to an undercover officer working with the United States Fish and Wildlife Service. As part of his plea agreement, Arquette admitted telling the officer that he took the eagles while hunting when he came upon a location where someone had been shooting wild horses. Arquette arranged the sale for $1,200 through telephonic and email contacts. As a member of the Confederated Tribes of the Yakama Nation, Arquette can lawfully possess eagle feathers for non-commercial purposes. All members of federally recognized Indian tribes can obtain eagle feathers from a national repository maintained by the United States Fish and Wildlife Service for that purpose. However, it is unlawful for anyone to offer eagle feathers for sale or to sell eagle feathers.
Michael C. Ormsby stated, “Arquette’s guilty plea and sentence added to a growing list of cases involving the commercialization of eagles in the Eastern District of Washington. Similar investigations in recent years have led to convictions in United States v. Maldonado, 14-CR-2065-SMJ, which is scheduled for sentencing on July 29, 2015; United States v. Hawk, 09-CR-02034-001; and United States v. Wahchumwah, 09-CR-02035-001. The United States Attorney’s Office has, and will continue to support the efforts of the United States Fish and Wildlife Service.”
This case was investigated by the United States Fish and Wildlife Service with participation from the Washington Department of Fish and Wildlife, the Washington State Gambling Commission, and the Yakama Nation Tribal Police. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney in the Eastern District of Washington.
Woodstock Woman Pleads Guilty to False Statements in BankruptcyRead the Press Release
ROCKFORD —SOULA APOSTOLOPOULOS, 46, of Woodstock, Ill., formerly of Barrington Hills, Ill., pled guilty today before U.S. District Judge Philip G. Reinhard to making false statements in her bankruptcy case. She was indicted on October 21, 2014, along with her husband, DANIEL APOSTOLOPOULOS.
According to the plea agreement, on March 13, 2010, Soula Apostolopoulos filed a Chapter 7 bankruptcy Petition, and made false statements on the Statement of Financial Affairs that she signed under penalty of perjury. According to the indictment, Soula Apostolopoulos fraudulently concealed income she received from her interest in a Chicago restaurant she previously purchased with her husband, as well as her interest in Wisconsin real estate and in financial accounts during the year preceding the filing of her bankruptcy.
Providing material false statements or documents under penalty of perjury in a bankruptcy case carries a maximum penalty of 5 years in prison, a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of each defendant beyond a reasonable doubt.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Webster Man Pleads Guilty to Downloading Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that Preston Field, 23, of Webster, NY, pleaded guilty to possession of child pornography before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from November 2012 to March 2014, the defendant downloaded and stored more than 600 images child pornography, including images portraying sadistic conduct and violence. Field also made his collection available for others to view and download.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Sentencing is scheduled for August 5, 2015, at 9:30, before Judge Geraci.
Tygart valley inmate sentenced for threatening the PresidentRead the Press Release
ELKINS, WEST VIRGINIA – Robert Dale Tasker, 44, an inmate at the Tygart Valley Regional Jail in Belington, West Virginia, was sentenced today to an additional 12 months in prison for threatening the President, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the United States Secret Service revealed that in December 2013, while incarcerated at the Tygart Valley Regional Jail, Tasker wrote a letter threatening to kill the President of the United States. He pled guilty in December 2014 to one count of “Threats Against the President of the United States.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Two Pocahontas County residents sentenced for role in manufacturing methamphetamineRead the Press Release
ELKINS, WEST VIRGINIA – Christina Lee Kimble, 31, and Krystal Eileen Sisler, 27, both of Bartow, West Virginia, were sentenced today for their role in manufacturing methamphetamine in Pocahontas and Randolph Counties., United States Attorney William J. Ihlenfeld, II, announced.An investigation by the Mountain Region Drug and Violent Crime Task Force, the United States Forest Service, the Pocahontas County Sheriff's Office, and the West Virginia State Police revealed that the defendants had each purchased medications containing pseudoephedrine, an ingredient commonly used to produce methamphetamine.
The defendants each pled guilty in December 2014 to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” Kimble was sentenced today to twelve months and one day prison. Sisler was sentenced today to five years of probation.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Two Mobile Pain Doctors Arrested on Drug and Fraud ChargesRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama, along with FBI-Mobile Special Agent in Charge Robert Lasky, and DEA-Mobile Special Agent in Charge Keith Brown, New Orleans Field Division, announce the arrests of Dr. John Patrick Couch and Dr. Xiulu Ruan.
Dr. Couch and Dr. Ruan are both physicians licensed to practice medicine in the State of Alabama. The doctors jointly own and operate a medical practice named Physician’s Pain Specialists of Alabama (“PPSA”), which has two clinic locations in Mobile — one located at 2001 Springhill Avenue and the other at 4682 Airport Boulevard. Dr. Couch and Dr. Ruan also co-own C&R Pharmacy, which is located adjacent to the PPSA location on Airport Boulevard.
In April 2015, a grand jury in the Southern District of Alabama returned an Indictment charging Dr. Couch and Dr. Ruan with (1) conspiracy to distribute controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, and (2) conspiracy to commit healthcare fraud.
According to the Indictment, Dr. Couch and Dr. Ruan conspired with each other and others to knowingly and willfully distribute and dispense Schedule II controlled substances outside the usual course of professional practice and not for a legitimate medical purpose. The Indictment identifies some of these Schedule II drugs as: oxycodone (brand name: Oxycontin), oxycodone hydrochloride (brand name: Roxicodone), oxymorphone (brand name: Opana), hydromorphone (brand name: Dilaudid), morphine, fentanyl, and methadone.
The Indictment also alleges Dr. Couch and Dr. Ruan engaged in a conspiracy to commit healthcare fraud to increase the health insurance reimbursements received by PPSA. Two means of healthcare fraud are identified in the Indictment. First, the Indictment alleges the doctors routinely ordered extremely expensive secondary urine drug tests, which were billed to patients’ insurance providers under the false pretense that they were necessary tests. However, the Indictment alleges these tests were ordered primarily because of the extremely high rate of reimbursement paid by insurance providers for these tests. Furthermore, the Indictment alleges Dr. Couch and Dr. Ruan engaged a conspiracy to fraudulent up-code, which is where a patient service performed by a physician extender, such as a nurse, is fraudulently billed under the physician’s national provider identifier number. Fraudulent up-coding results in a medical practice receiving more money than it was entitled to, because health insurance providers reimburse patient services at a higher rate when performed by a physician.
In addition to the criminal allegations, the Indictment contains forfeiture notices stating that the United States intends to seek the forfeiture of numerous bank accounts, exotic vehicles, and real property if the defendants are convicted of one or both of these conspiracy offenses.
Along with the arrests of the two doctors and the seizures of assets subject to forfeiture, the FBI and DEA jointly executed search and seizure warrants at five locations, including both PPSA clinics, C&R Pharmacy, a warehouse where Dr. Ruan stored his exotic cars, and Dr. Couch’s house.
“We will remain vigilant in prosecuting doctors who place greed over their Hippocratic Oath to help their patients and are otherwise willing to defraud and undermine the health care programs of the nation,” said United States Attorney Kenyen R. Brown.
“This national organized crime enterprise fleeced the health care system through a wide range of money making criminal fraud schemes,” said FBI SAC Robert F. Lasky. “ The FBI, working in conjunction with our federal agency partners, is resolute in its commitment to stop those who would illegally manipulate the health care system.”
"Prescription drug abuse is the fasting growing drug problem in the country. It is particularly troubling to find doctors so complicit in this epidemic. We trust our doctors to heal our bodies, not poison our communities. We will not tolerate or accept this illegal behavior, and we will bring justice to those that condone this type of practice," said DEA Assistant Special Agent in Charge Clay A. Morris.
As in all criminal cases, an Indictment is only an allegation made by a grand jury. Both Dr. Couch and Dr. Ruan are presumed innocent until proven guilty.
This matter was jointly investigated by FBI-Mobile and DEA-Mobile, and the case will be prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Two Former Watch Manufacturer Employees Charged with Using False Invoicing Scheme to Steal Company MerchandiseRead the Press Release
NEWARK, N.J. – Two former employees of a Bergen County, New Jersey, watch manufacturer were charged today with orchestrating a scheme to defraud their employer out of hundreds of thousands of dollars of watches and watch parts using falsified documents and doctored corporate records, U.S. Attorney Paul J. Fishman announced.
Cynthia Espejo, 49, of Kissimmee, Florida, and Lissette Delarosa, 36, of Woodland Park, New Jersey, are each charged by criminal complaint with one count of conspiracy to commit mail fraud. Espejo is scheduled to appear this afternoon before U.S. Magistrate Judge Karla R. Spaulding in Orlando, Florida, federal court. Delarosa is scheduled to appear this afternoon in Newark federal court.
According to the criminal complaint:
From May 2003 through July 2010, Espejo and Delarosa abused their positions in the manufacturer’s Bergen County customer service department to fraudulently obtain company merchandise. Espejo and Delarosa created hundreds of fictitious invoices for watch parts in the manufacturer’s invoice system and directed those parts to be sent to addresses associated with Espejo, Delarosa, and others. The watch manufacturer received no payment related to these invoices and no legitimate basis existed for providing the parts free of charge.
Espejo and Delarosa also created dozens of fictitious customer complaints in the watch manufacturer’s invoice system, which resulted in “replacement” watches being shipped to addresses associated with Espejo and Delarosa.
The mail fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of loss caused by the offense.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation.
The government is represented by Special Assistant U.S. Attorney Andrew R. Tyler of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Tulsa Woman Sentenced to 36 Months Probation, $5,200 Restitution for Embezzlement and Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that LaDONNA JANE BURNS, age 44, Tulsa, Oklahoma, was sentenced to 3 years of probation for Embezzlement and Theft From An Indian Tribal Organization. Burns was also ordered to pay $5258.40 in restitution to the victim.
The charges are a result from an investigation by the Creek Nation Lighthorse Police and the Federal Bureau of Investigation. The defendant was indicted in November 2014 and pled guilty in December 2014.
The Indictment alleged that from on or about April 1, 2013, until on or about September 17, 2013, in the Eastern District of Oklahoma, the defendant, being an employee of the Checotah Muscogee Indian Community, an Indian Tribal Organization, did embezzle, steal, willfully misapply and willfully and knowingly convert to her own use more than $1,000.00 of the moneys, funds and credits belonging to the said Indian Tribal Organization.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Tucson AZ Man Sentenced to 87 Months for Methamphetamine and Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ISMAEL COBIAN MENDOZA, age 42, of Tucson, Arizona, was sentenced to 87 months imprisonment, followed by 3 years of supervised release for Possession with Intent to Distribute Methamphetamine and Marijuana.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration. The defendant was indicted in November, 2014 and pled guilty in January, 2015.
The Indictment alleged that on or about November 3, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute five hundred (500) grams or more of methamphetamine, a Schedule II controlled substance and less than fifty (50) kilograms of marijuana, a Schedule I controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Three MS-13 Gang Members Indicted on Racketeering ChargesRead the Press Release
A 29-count superseding indictment was unsealed yesterday in federal court in Central Islip, New York, charging MS-13 members Edwin Acosta-Martinez (“Scarface”), Sergio Cerna (“Taz” and “Lechon”), and Arnolvin Umanzor Velasquez (“Momia” and “Lito”), with the November 2, 2011 murder of Brandon Sotomayor in Baywood, NY, the December 18, 2011 double-murder of two brothers, Enston and Ricardo Ceron, in Brentwood, NY, four attempted murders which took place between May and December 2011, and multiple racketeering offenses related to those murders and attempted murders. The superseding indictment was returned under seal by a federal grand jury on May 13, 2015.
Velasquez was arrested yesterday morning in Flowery Branch, Georgia, by a Federal Bureau of Investigation SWAT team, and he was arraigned before United States Magistrate Judge E. Clayton Scofield, III, at the federal courthouse in Atlanta, where he was ordered to be removed in custody to the Eastern District of New York. Cerna and Acosta-Martinez are already in federal custody and will be arraigned this afternoon and next week, respectively, before United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, FBI, New York Field Office.
“The execution-style killings of Brandon Sotomayor and the Ceron brothers, as well as the attempted murders charged in this superseding indictment, demonstrate the callous depravity of the MS-13,” stated Acting United States Attorney Currie. “This Office and the FBI’s Long Island Gang Task Force will continue to investigate and prosecute the MS-13 to ensure that the gang members are held accountable for their brutal acts.” Mr. Currie expressed his appreciation for the assistance provided by the United States Attorney’s Office for the Northern District of Georgia and the FBI’s Atlanta Field Office.
“MS-13 is a scourge on our communities. As alleged, the three defendants charged today with murder demonstrate the extraordinary violence of this gang. We continue to work with prosecutors and local law enforcement on Long Island to arrest and prosecute members of MS-13,” stated Assistant Director-in-Charge Rodriguez.
Cerna was charged in the underlying indictment with racketeering and firearms offenses relating to the May 12, 2011 and September 11, 2011 attempted murders of two suspected rival gang members, and an October 23, 2011 conspiracy to murder rival gang members which resulted in two men being shot and wounded. The superseding indictment adds charges against Cerna and Velasquez in connection with the December 18, 2011 murders of the Ceron brothers, Enston and Ricardo. As set forth in prior court filings and a detention letter, the Brentwood clique of the MS-13 (“BLS”) killed Enston Ceron because he was distancing himself from the gang by not attending meetings or “putting in work” for the gang, and they were concerned that he might cooperate with law enforcement authorities if he were arrested. The BLS clique also murdered his brother, Ricardo Ceron, who belonged to the Western clique of the MS-13, because they were concerned he would retaliate if he learned that the BLS killed his brother. On December 18, 2011, Cerna and Velasquez, who volunteered to carry out the murders and were armed with 9mm and .22 caliber semi-automatic handguns, asked Enston and Ricardo Ceron for a ride home from a party. When the car stopped in the vicinity of Lincoln Avenue and Stockton Streets in Brentwood, Cerna and Velasquez executed them, shooting them in the head and torso at close range. Cerna and Velasquez exited the car and when another vehicle approached the murder scene and stopped, Cerna fired multiple shots at the driver, striking him once in the chest. The driver survived the shooting.
Following the Ceron brothers’ murders, the BLS clique blamed the killings on the rival Latin Kings street gang and plotted a retaliation shooting with members of the Huntington clique of the MS-13, including Acosta-Martinez. On December 22, 2011, Acosta-Martinez and two other MS-13 members observed two suspected members of the Latin Kings in Brentwood. Acosta-Martinez, who was armed with a 9mm semi-automatic handgun, is charged with shooting one of the men in the arm before the suspected Latin Kings members fled. The victim survived that shooting.
Acosta-Martinez was also indicted in connection with his participation in the November 2, 2011 murder of Brandon Sotomayor and a series of armed robberies in 2011 and 2012. On the night of the Sotomayor murder, Acosta-Martinez and another MS-13 member, who was a juvenile at the time, agreed to “put in work” for the MS-13 by killing a rival gang member. Acosta-Martinez and his co-conspirator were armed with the same 9mm and .22 caliber semi-automatic handguns used to murder the Ceron brothers. While in the vicinity of Reilly Street in Baywood, Acosta-Martinez and his co-conspirator saw a car with three people, including Sotomayor, who was wearing a red hat and who they believed to be a member of the rival Bloods street gang. Acosta-Martinez and his co-conspirator approached the car and fired numerous shots at Sotomayor, striking him multiple times in the neck and torso and killing him.
The defendants are also charged with additional racketeering offenses, including assaults, obstruction of justice, armed robbery, and related firearms and conspiracy counts.
The superseding indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 25 murders in the Eastern District of New York, and has convicted dozens of MS-13 members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and Rockville Centre Police Department.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face life in prison or the death penalty.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney of the Long Island Criminal Division.
The Defendants:
EDWIN ACOSTA-MARTINEZ (“Scarface”)
Age: 26
Huntington Station, New York
SERGIO CERNA (“Taz” and “Lechon”)
Age: 31
Brentwood, New York
ARNOLVIN UMANZOR VELASQUEZ (“Momia” and “Lito”)
Age: 22
Brentwood, New York and Flowery Branch, Georgia
E.D.N.Y. Docket No. 15-CR-087 (S-1)(JFB)
Thirty-seven MS-13 Gang Members Indicted on Racketeering Conspiracy Charges ; Some Also Charged with Murder, Attempted Murder, and Firearms ViolationsRead the Press Release
CHARLOTTE, N.C. – Thirty-seven members of the street gang “La Mara Salvatrucha,” or “MS-13,” have been indicted by a federal grand jury on racketeering conspiracy charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Twenty-two defendants have also been charged variously with additional offenses, including murder, attempted murder, assault, and firearms violations.
This morning, law enforcement arrested 16 of the alleged gang members during an early morning round-up. Five remain at large and are subject to active arrest warrants. Another 16 are currently in state custody on various state charges.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Ryan L. Spradlin, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta; Mark Senter, Branch Head of the North Carolina Alcohol Law Enforcement; Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department; and Mecklenburg County District Attorney Andrew Murray join Acting U.S. Attorney Rose in making today’s announcement.
“As outlined in today’s indictment, the alleged MS-13 gang members have committed numerous violent crimes, including armed robberies, assaults, and murders, for the benefit of the criminal enterprise. Today’s charges send a clear message to gangsters who think their gang affiliation puts them beyond the law’s reach. Prosecutors and law enforcement officers will continue to work hand-in-hand to identify and prosecute gang offenders whose violent acts create mayhem in our streets and devastate communities,” said Acting U.S. Attorney Rose.
“The arrest of these MS-13 gang members is part of a coordinated law enforcement effort to eradicate gang violence in North Carolina. Innocent families should not suffer because of the callous and violent actions of others. The FBI will pursue those criminal offenders who impact the safety and stability of our neighborhoods, no matter their gang affiliation,” said John Strong, Special Agent in Charge of FBI Charlotte.
“Transnational criminal gangs like MS-13 inflict untold damage in our communities by engaging in violence and trafficking in drugs, weapons and even human beings,” said Ryan L. Spradlin, Special Agent in Charge of ICE Homeland Security Investigations (HSI) in Atlanta. “This lengthy investigation has uncovered alleged crimes ranging from petty drug deals to capital murder. There is no doubt that North Carolina communities will be safer as a result of these arrests.”
“The partnerships between my office, the U.S. Attorney’s Office and both federal and local law enforcement reflect our dedication to ensuring that collaborative investigations and prosecutions target violent crime on our streets,” said Mecklenburg County District Attorney Andrew Murray. “We’ll continue to work together as we pursue justice for those affected by crime and protect the community from future harm.”
“The success of this roundup should be attributed to the strength of these law enforcement partnerships and send a clear message to gang members that all of us are working together in our pursuit to put the criminals out of business for the betterment of our communities,” said Mark Senter, NC Alcohol Law Enforcement branch head.
The indictment charges each of the 37 alleged gang members with one count of Racketeering Influenced Corrupt Organization (RICO) conspiracy. The named defendants are:
- Carlos Almote a/k/a “Rabioso,” 25, of Charlotte. (in state custody)
- Jose Danny Argueta a/k/a “Shadow,” 23, of Charlotte. (in state custody)
- Miriam Barilles-Escamilla a/k/a “Gata,” 26, of El Salvador. (not arrested)
- Juan Bergamasco-Suarez a/k/a “Temper” or “Kilo,” 21, of Charlotte. (in state custody)
- Milton Chavarria a/k/a “Syko,” 23, of Charlotte. (in state custody)
- Raul Contreras a/k/a “Smoke,” 24, of Charlotte. (in state custody)
- Luis Erazo a/k/a “Joker,” 24, of Honduras. (arrested)
- Marvin Fuentes-Canales a/k/a “Crazy,” 22, of El Salvador. (not arrested)
- Luis Funes-Rivera a/k/a “Demonio,” 20, of Charlotte. (in state custody)
- Jorge Garcia a/k/a “Shorty,” 25, of Charlotte. (arrested)
- Cesar Garcia-Perez a/k/a “Vikingo,” 35, of Charlotte. (in state custody)
- Saul Gavidia a/k/a “Scrappy,” 20, of Landis, N.C. (arrested)
- William Gavidia a/k/a “Duro,” 23, of Kannapolis, N.C. (arrested)
- Raul Guardado a/k/a “Guanaco,” 42, of Charlotte. (arrested)
- Neris Gutierrez a/k/a “Oso” or “Furioso,” 26, of Guatemala. (not arrested)
- Angel Hernandez a/k/a “Taz” or “Magic,” 24, of Rock Hill, S.C. (arrested)
- Jose Manuel Linares a/k/a “Chepito,” 21, of Charlotte. (arrested)
- Rene Lopez-Ventura a/k/a “Mafioso,” 32, of Charlotte. (arrested)
- Jose Moran-Celis a/k/a “Lil Silent,” 20, of Charlotte. (arrested)
- Daniel Navarro a/k/a “Lunatico,” 21, of Charlotte. (in state custody)
- Jonathan Noble a/k/a “Ghost,” 22, of Charlotte. (arrested)
- Luis Ordonez-Vega a/k/a “Big Boy,” 36, of Concord, N.C. (in state custody)
- Christian Pena a/k/a “Pitbull,” 19, of Charlotte. (in state custody)
- Jorge Perez a/k/a “JP Bukie,” 30, of Charlotte. (arrested)
- Victor Pineda a/k/a “Chele,” 23, of Charlotte. (arrested)
- Rosendo Rivas a/k/a “Jester,” or “Demonio” or “Nene” 24, of Rock Hill. (in state custody)
- Fec Rodriguez-Vareal a/k/a “Chelito,” 28, of Charlotte. (arrested)
- Salvador Ruiz a/k/a “Chava,” 26, of Kannapolis. (not arrested)
- Jorge Sosa a/k/a “Koki” or “Loco,” 23, of Charlotte. (in state custody)
- Oscar Trejo a/k/a “Trigger” or “Maliente,” 23, of Charlotte. (in state custody)
- Jaime Turcios a/k/a “Pitufo” or “Smurf,” 24, of Charlotte. (arrested)
- Jose Vasquez a/k/a “Muneco,” 26, of El Salvador. (arrested)
- Marlon Vasquez-Maldonado a/k/a “Gangster,” 23, of Charlotte. (in state custody)
- Albert Vela-Garcia a/k/a “Conejo,” 25, of Landis. (arrested)
- Luis Villalta a/k/a “Little Psycho,” 25, of El Salvador. (not arrested)
- Alexis Villalta-Morales a/k/a “Rikichi,” 23, of Charlotte. (in state custody)
- Miguel Zelaya a/k/a “Most Wanted,” 19, of Charlotte. (in state custody)
In addition to the RICO conspiracy charge, three defendants face murder in aid of racketeering and related charges, Zelaya for the murder of Jose Orlando Ibarra, and Ordonez-Vega and Pena for the murder of Noel Navarro Hernandez. Ten defendants – Argueta, Garcia, Linares, Funes-Rivera, Ruiz, Sosa, Trejo, Vasquez, Vela-Garcia, and Villalta-Morales – are also charged with attempted murder in aid of racketeering and related charges.
According to the allegations contained in the 41-count indictment:
From at least in or about 2009 to present in Mecklenburg County and elsewhere, the defendants were members of the MS-13 gang, a criminal organization with over 6,000 members in the United States and 30,000 members internationally. MS-13 originated in Los Angeles, California, and has spread to states across the country, including in North Carolina. The gang’s members are mostly immigrants or descendants of immigrants from El Salvador and other Central and Latin American countries. MS-13 in North Carolina is divided into different groups, or “cliques,” identified by names such as “Charlotte Locotes Salvatrucha,” and “Centralles,” among others. The different cliques work together to carry out criminal acts, to protect the interests of the criminal enterprise, and to assist each other in avoiding law enforcement detection. The group leaders are often called “shot callers” or “voices,” and they are tasked with passing down information and orders from leaders higher in the gang hierarchy. Group leaders also act to resolve disputes, address organizational issues, and to participate in gang decisions, including the assault or murder of those suspected of cooperating with law enforcement, known as “green light.”
MS-13 members adhere to a set of gang rules and pay dues which fund the gang’s criminal activities and support other gang members or their families in the U.S and abroad. Gang members are also expected to protect the name, reputation, and status of the gang and its members, and to punish through acts of violence and intimidation those who disrespect the gang. Some MS-13 members signify their affiliation with the gang by wearing blue, black and white color clothing and certain “Mara Salvatrucha,” or “MS-13” tattoos.
As alleged members of MS-13, the defendants charged in the indictment held multiple meetings at various times, to discuss gang-related matters and to plan the commission of future crimes for the benefit of the gang. As outlined in the indictment, over the relevant time period, the defendants allegedly were responsible for numerous criminal acts including drug distribution, armed robberies, extortion, illegal possession of weapons, the assault of individuals suspected of cooperating with law enforcement and murder.
Specifically, the indictment alleges that on December 18, 2013, Zelaya allegedly murdered Jose Orlando Ibarra in Charlotte, whom he believed to be a member of a rival gang, and on or about June 6, 2014, also in Charlotte, Pena and Ordonez-Vega allegedly murdered Noel Navarro Hernandez. According to the indictment, on April 23, 2011, Contreras murdered Rigoberto Castillo in Rock Hill, S.C., and on June 23, 2013, in Charlotte, Garcia-Perez shot and killed Alejandro Sebastian Alvarez, a rival gang member. Contreras and Garcia-Perez were prosecuted on state charges for those murders.
The indictment contains a notice of special sentencing factors, which provides for a greater sentence for those defendants charged with offenses related to the murders. A chart identifying each defendant’s charges and maximum penalties is attached below. The defendants’ sentences will be determined by the Court, after considering the federal sentencing guidelines and statutory sentencing factors.
The defendants arrested today have begun making their initial appearances in Charlotte before a U.S. Magistrate Judge. The defendants currently in state custody will be transferred to the custody of the U.S. Marshals to appear in court on the federal charges.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Acting U.S. Attorney Rose praised the outstanding investigative work of the FBI, HSI, CMPD and ALE and noted that the investigation is still ongoing.Ms. Rose also thanked the Mecklenburg County District Attorney’s Office for their continued support and cooperation with this case.
Assistant U.S. Attorneys Elizabeth Greene and William Miller are in charge of the prosecution.
Telemarketer Sentenced for Role in Marketing Non-FDA Approved Drugs in United StatesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Naresh Kumar Chintala (33, India) to 30 months in federal prison for conspiracy to commit wire fraud and to dispense prescription drugs without a prescription. He pleaded guilty on February 23, 2015.
According to court documents, Chintala worked for an India-based company that marketed drugs, both prescription and otherwise, to customers in the United States by means of telemarketing. The representations made by the marketers about these drugs claimed that the drugs were made in the United States and FDA-approved. In reality, the drugs were neither. In some instances, the drugs sold through this marketing scheme were prescription medications, but the company required no medical prescription for the sale. The medications ordered by the customers were shipped to them from India, in parcels bearing false labels as to the nature of their contents. Chintala traveled to the United States in late 2014 on company business and was arrested in Jacksonville, Florida.
This case was investigated by the United States Food and Drug Administration. It was prosecuted by Assistant United States Attorneys Jay L. Hoffer and Mark Bini.
Strip Club Operators Charged with Conspiring to Promote Prostitution and to Defraud the IRSRead the Press Release
PORTLAND, Ore. – Today a federal grand jury returned a superseding indictment charging Lawrence George Owen, 73, of La Paz, Mexico, and Gary Bryant, 67, of Estacada, Oregon, with conspiring to defraud the IRS of more than $1.5 million in unpaid income and payroll taxes stemming from the operation of strip clubs and other adult-oriented businesses in the Portland metropolitan area between January 2006 and June 2010. The grand jury also charged Owen with conspiring to use facilities of interstate commerce to promote illegal acts of prostitution at the businesses throughout that period. The U.S. Attorney also filed a criminal Information charging Kandace Desmarais, 63, and Gilbert “Mace” Desmarais, 50, both of Milwaukie, Oregon, with participating in both conspiracies.
The superseding indictment and information allege that, by January 2006, Lawrence Owen and Gary Bryant, along with Kandace Desmarais and Gilbert Desmarais (two of Owen’s stepchildren) managed eleven adult-oriented businesses. The businesses, which accepted cash only, included eight strip clubs (the Landing Strip, Dillinger’s Pub, the Oh! Zone, Sugar Shack, Sugar Shack Too, Peek-a-Boos, Tommy’s, and Tommy’s Too), two stores offering pornographic videos and sex toys (Video Visions and Video Visions Plus), and a restaurant featuring Oregon Lottery games (Pelican Bay).
The strip clubs featured totally nude female dancers who paid the management “stage fees” of $15 for every shift they worked. In addition, most of the strip clubs either had enclosed rooms for “private shows” with the dancers or were adjacent to affiliated businesses with such rooms. Customers could arrange for 30-minute “private shows” with the dancers by paying $60 to the house and at least $100—often several times that amount—to the dancers. In fact, the “private shows” frequently involved illegal acts of prostitution paid for with cash from the conspirators’ ATMs.
The grand jury and U.S. Attorney alleged that the conspirators concealed more than five million dollars in receipts from the IRS—and fraudulently avoided $1.5 million in income taxes—between January 2006 and June 2010, largely by failing to report income from dancers’ “stage fees” and the payments for “private shows.” The businesses also failed to pay payroll taxes for numerous employees who were paid only in cash without any record of employment or wages.
The charges culminate an investigation by the Internal Revenue Service Criminal Investigation (IRS-CI) spanning more than five years. In June 2010, IRS-CI agents executed search warrants at all of the businesses and the homes of many of the conspirators. The agents seized more than $800,000 in cash and records of more than 35,000 “private shows” at the businesses over the course of the charged conspiracy.
Each charge carries a maximum sentence of five years in prison. If convicted, defendants Lawrence Owen, Kandace Desmarais, and Gilbert Desmarais face a maximum of ten years in prison, and Gary Bryant faces a maximum of five years in prison.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The Portland Police Bureau assisted IRS-CI with this investigation. Assistant U. S. Attorneys Seth D. Uram and Ryan W. Bounds are prosecuting the case.
Strategy to Reduce District of Columbia’s Sewer Overflows will Include Green InfrastructureRead the Press Release
The Department of Justice, the Environmental Protection Agency (EPA), the District of Columbia and DC Water today announced an agreement to modify a 2005 federal consent decree allowing DC Water to incorporate green infrastructure in its long-term strategy for curtailing combined sewer overflows (CSOs).
The modification, filed yesterday in federal district court in Washington, D.C., gives DC Water the go-ahead to pursue an integrated green/gray infrastructure approach to address water quality issues in the Rock Creek and Potomac watersheds resulting from combined sewer overflows. This integrated approach utilizes green infrastructure in a targeted and sound engineering manner to reduce combined sewer overflows. Green infrastructure uses vegetation, soils and natural processes that mimic nature, to soak up and store rainwater water where it falls to control wet weather pollution and create healthier urban environments.
“This innovative plan will significantly reduce sewer overflows into our rivers and capture rainwater in the area’s ecologically important watersheds,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This plan puts Washington, D.C. among America’s green city innovators, and it reflects the Justice Department’s and EPA’s commitment to work with cities to safeguard public health, adapt to climate change, and improve aging sewer infrastructure using smart and environmentally sound solutions.”
“This modification represents significant efforts by all the parties to make green infrastructure an integral part of the solution to curtailing sewer overflows and protecting urban waters,” said Regional Administrator Shawn M. Garvin for EPA. “We expect that the green infrastructure components of this modification will provide a model of sustainability for others to follow.”
The green infrastructure projects in Rock Creek and Potomac watersheds are slated to begin in 2015 and 2016 respectively, providing more immediate pollution reductions, enhancements to community livability and green jobs opportunities.
Specifically the consent decree modification includes:
- Using green infrastructure to retain the first 1.2 inches of rainwater on 365 acres in the Rock Creek area and 133 acres in the Potomac watershed.
- Potentially eliminating the Rock Creek storage tunnel and significantly decreasing the size of the Potomac tunnel depending upon the success demonstrated by green infrastructure.
- The district providing the public space necessary for DC Water to construct the proposed green infrastructure projects and making changes to district regulations, codes, standards, guidelines and policies needed for implementation.
- Requiring the district and DC Water to work together to coordinate capital projects and expenditures for implementing green infrastructure, enabling the efficient use of resources and minimizing costs to rate-payers and taxpayers.
As part of the agreement, DC Water will have an additional five years to complete implementation in the Potomac and Rock Creek watersheds beyond those provided for in the original 2005 consent decree, which established a compliance schedule to construct tunnels in the Anacostia, Potomac and Rock Creek watersheds. The schedule for completing the Anacostia tunnel remains unchanged.
Under this consent decree, DC Water will continue moving forward under this consent decree on the construction of the overall CSO control project which is known as the Clean Rivers Program. This program involves completion of, in addition to the components described above, control structures and tunnels for the Anacostia watershed, which contributes more than 65 percent of the sewage discharged to District waters annually. Major portions of this tunnel system are scheduled for completed and in operation in 2018. When the Anacostia tunnel complex is fully completed in 2025, it will nearly eliminate combined sewer overflows to the Anacostia in an average rainfall year.
In November 2011, DC Water proposed to EPA to incorporate green infrastructure into its overflow control strategies for the Potomac and Rock Creek watersheds. As part of the request, DC Water submitted analysis demonstrating that modified CSO controls in the Potomac and green infrastructure in Rock Creek could provide equivalent pollution reductions to those in the original plan and were economically feasible.
In early 2014, after conducting a public participation process, DC Water filed a request to EPA to modify the plan for CSO controls and deadlines set forth in the 2005 consent decree. During the consent decree modification discussions, DC Water has continued to move forward in a timely fashion to enhance its nutrient reduction treatment systems at the Blue Plains Advanced Wastewater Treatment Plant. This is an important element of the Chesapeake Bay watershed restoration effort because the Blue Plains facility is the largest point source of nutrient pollution in the Chesapeake Bay drainage area.
The proposed consent decree modification is subject to a 30-day public comment period once it is published for public notice in the federal register and must be approved by the court. The proposed consent decree modification will be available at: www.justice.gov/enrd/consent-decrees
- Using green infrastructure to retain the first 1.2 inches of rainwater on 365 acres in the Rock Creek area and 133 acres in the Potomac watershed.
Statement by U.S. Attorney John Walsh Regarding Heroin RoundupRead the Press Release
DENVER – Today U.S. Attorney John Walsh issued the following statement and list of those indicted and arrested as part of the announcement of federal and state indictments and arrests of the Ruelas-Torres Drug Trafficking Organization:
“This operation represents the gold standard for federal state cooperation and investigation of drug trafficking organizations. The Colorado Attorney General’s Office and the United States Attorney’s Office worked hand–in hand with the federally funded Denver OCDETF Strike Force, most importantly teaming up with the DEA, IRS, FBI, HSI, Colorado State Patrol and other key agencies.
“The federal indictment has a specific goal: Through these federal money laundering and financial charges, we aim to strangle this heroin-trafficking organization both in Colorado and in Mexico by depriving it of the oxygen it needs – money.
“Let’s not understate the pain, suffering and death that heroin traffickers are causing here in Colorado. Colorado is in the midst of a heroin epidemic – the number of heroin overdose deaths skyrocketed from 2003 to 2012 by 600%. In 2013 alone, at least 118 Coloradans died of overdoses in which heroin played a role. In 2014, the situation was even worse: 147 Coloradans died of heroin-related overdoses, a 25% increase in one year. Since 2010, the Colorado Department of Health believes that nearly 500 [481] Coloradans have died from heroin overdoses. This is a disaster hiding in plain sight.
“The U.S. Attorney’s Office has obtained federal grand jury indictments charging 17 defendants. The federal charges focus on the large scale criminal enterprise and the illegal money laundering activities. Of those named in the federal indictment, 6 are in custody, and 11 remain at large, of which we believe 6 are in Mexico.
“I’d like to thank the Colorado Attorney General’s Office – including the Attorney General and her prosecutors, along with our team at the U.S. Attorney’s Office. And critically, Colorado owes special thanks and appreciation to the Organized Crime & Drug Enforcement Task force-funded Denver Strike Force team, including the DEA, IRS Criminal Investigation, FBI, Homeland Security Investigations, Colorado State Patrol, Northern Colorado Drug Task Force, West Metro Drug Task Force, the Denver Police Department and the Aurora Police Department. Together, we have disrupted a well-organized highly sophisticated drug trafficking organization.”
Those named in the federal indictment:
JOEL EFREN RUELAS-AVILA, a/k/a “Efren,” (fugitive in Mexico)
JOSE LUIS RUELAS-TORRES, (fugitive in Mexico)
MARIA DE JESUS ESPINOZA-RODRIGUEZ, a/k/a “Maria,” (fugitive in Mexico)
BETITO LAST NAME UNKNOWN, (fugitive in Mexico)
JOSE CARLOS BARRAZA-ACEVES, a/k/a “Luis 2525,” (fugitive in Mexico)
HECTOR LIBRADO RIVERA-SANDOVAL, (fugitive in Mexico)
LEO DELFIN, (fugitive)
PEDRO ARMANDO GUTIERREZ-NUNEZ, a/k/a “Carlos 4109,” (arrested)
RAUL ESTRADA-CASTILLO, a/k/a “Javier Rios,” a/k/a “Irvin,” a/k/a “Ramon,” (arrested)
IVAN HARO-PEREZ, a/k/a “Ivan,” (fugitive)
JOSE VIDAL LEON-PENUELAS, a/k/a “Vidal,” (fugitive)
CARLOS ALBERTO PEREZ-GARCIA, (arrested)
PABEL ERBEY BERNAL-LOPEZ, (fugitive)
YAJAHIRA MELISSA LOPEZ-CALIDONIO, a/k/a “Melissa,” (arrested)
LIGIA LOPEZ-PEREZ, (fugitive)
NELI YANIRA CALIDONIO-MEZA, a/k/a “Neli.” (arrested)
MARTIN RODRIGUEZ-SANCHEZ (fugitive)South Euclid woman sentenced to five years in prison for identity theft and fraudRead the Press Release
A South Euclid woman was sentenced to five years in prison for identity theft, wire fraud and bank fraud related to a $70,000 scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service, Cincinnati Field Office.
Keauna Smith, 29, pleaded guilty to seven counts earlier this year.
She stole the identities of 16 people between 2012 and 2104. She used these stolen identities to file 18 false tax claims of approximately $44,306. She had the money loaded onto prepaid debit cards and then withdrew the money at various ATMs, according to the court documents.
Smith also illegally obtained approximately $26,300 this year by taking checks from her employer, made them payable to herself and then forged the owner’s signature on the checks, according to court documents.
“This defendant is accused of stole from private citizens, the federal government and her employer,” Dettelbach said. “Her ride of theft ends in federal prison.”
“Individuals who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” Enstrom said. “Keauna Smith caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the Internal Revenue Service – Criminal Investigations.