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Wednesday 8 April 2015
Hardin County Businessman Sentenced for Federal Tax ViolationsRead the Press Release
BEAUMONT, Texas – A 64-year-old Silsbee, Texas, man has been sentenced for federal income tax violations, announced U.S. Attorney John M. Bales today.
Billy Dan Peavy pleaded guilty on Oct. 28, 2014 to two counts of filing false income tax returns and one count of aiding and abetting in the preparation and filing of a false corporation income tax return. Peavy was sentenced on Apr. 7, 2015 to 12 months and one day in federal prison by U.S. District Judge Thad Heartfield.
According to information presented in court, Peavy filed false 2007 and 2008 Form 1040 Individual Income Tax Returns. These returns were false because he knew that he didn’t report all of the income from Beech Creek Disposal, Inc. (also known as NBC Disposal, Inc) and Caneyhead Construction, Inc. on these returns. Peavy also pleaded guilty to one count of aiding in the preparation of a false Form 1120 Corporation Income Tax Return for 2008 for Beech Creek Disposal, Inc. The return was false because the gross receipts did not include all of the income from Beech Creek Disposal, Inc (also known as NBC Disposal, Inc.).
As a part of the plea agreement with the government, Peavy agreed to pay $351,766 in restitution, representing the amount of taxes to which the IRS was entitled. He also agreed to pay civil penalties and interest which will amount to more than $100,000. Peavy was also ordered to pay a fine of $5,000. Peavy was ordered to surrender on May 26, 2015 to begin serving his prison sentence.
In an effort to show extraordinary acceptance of responsibility, Peavy paid in full all of the restitution owed prior to the sentencing date. He also submitted numerous letters of support to the Court for his service in the community and elsewhere.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Randall Fluke.Four Portland-Area Strip Club Operators Charged in $500,000 Tax Cheating ConspiracyRead the Press Release
PORTLAND, Ore. - Billy J. Williams, Acting U.S. Attorney for the District of Oregon, today announced that a federal grand jury sitting in Portland returned an indictment charging defendants:
- David G. Kiraz, of Happy Valley, Oregon,
- Marci K. Kiraz, wife of David Kiraz and a resident of Happy Valley, Oregon,
- Daniel G. Kiraz, brother of David Kiraz and a resident of Portland, Oregon, and
- George D. Kiraz, father of David Kiraz and Daniel Kiraz and a resident of Estacada and Portland, Oregon
with engaging in a scheme to file false federal income tax returns that underreported $1,501,874 in cash from their operation of two Portland-area strip clubs and to cheat the IRS out of $519,503 in income taxes. The indictment identifies David Kiraz as the owner and operator of the strip clubs, Daniel Kiraz and George Kiraz as managers of the strip clubs, and Marci Kiraz as a bookkeeper for the strip clubs.
The indictment alleges that the defendants operated Cabaret Lounge, a strip club located at 503 W Burnside Street in Portland and Cabaret Lounge II, a strip club located at 17544 SE Stark Street in Gresham. From 2007 through mid-2011, the strip clubs collected cash through cover charges from customers and stage fees from dancers, all of which were recorded in daily records at the businesses, however, the defendants allegedly had these records destroyed.
The defendants allegedly maintained two sets of books -- one set that did not record the cover charge cash and dancer stage-fee cash and one set that did. The first set of books was a profit and loss spreadsheet kept on the businesses’ computers on which the cover charges and dancer stage-fees were not recorded.The second set of books was a profit and loss spreadsheet kept on defendant David Kiraz’s personal computer at his home on which the defendants accurately recorded the cash made through cover charges and dancer stage-fees.
The indictment further alleges that each year the defendants reported the business activity of the strip clubs on the individual income tax return of defendant David Kiraz using a Schedule C, “Profit or Loss From Business”.The defendants gave their tax return preparers false records, intentionally causing the return preparers to create tax returns for defendant David Kiraz that did not report most of the cash obtained through cover charges and dancer stage fees.This resulted in underreporting of taxable income totaling $1,501,874 and a tax loss of $519,503 for tax years 2007 through 2010.
“Adult entertainment businesses deal primarily in cash, and that makes it much easier for some owners of these businesses to cheat on their taxes,” stated Acting U.S. Attorney Billy Williams. “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who do not abide by the tax laws or pay their fair share of income taxes.”
This case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
Additional details can be found in the attached indictment, here. Kiraz Indictment
Former Union Employee Pleads Guilty ToRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced that Paul Harnas, Jr., age 30, of, Pine City, New York, pleaded guilty in federal court before United States District Judge Frank P. Geraci to conspiring to steal from a health care benefit program. The charge carries a maximum sentence 5 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Harnas, a member of the Plumbers & Steamfitters Local 267, devised a scheme to submit fraudulent dental claims seeking reimbursement from the Local 267 health fund. Harnas prepared false dental receipts, which he and others then provided to the Local 267 health fund to support fraudulent claims for reimbursement that totaled approximately $65,000.
This plea is the culmination of an investigation by Special Agents of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Financial Services, Frauds Bureau, under the direction of Superintendent Benjamin Lawsky.
Harnas is scheduled to be sentenced by Judge Geraci on July 8, 2015 at 11:00 a.m.
Former Iowa City Resident Sentenced to Prison Term for Unlawfully Reentering United StatesRead the Press Release
A man who previously lived in Iowa City, and operated Xtreme Construction with his wife, was sentenced last week to serve one year in federal prison.
Antonio Grangeno Zuniga, formerly of Iowa City, received the prison term after a December 23, 2014, guilty plea to one count of being found after unlawfully re-entering the United States, following removal to Mexico.
According to facts admitted by Zuniga, a Mexican citizen, he was twice previously removed from the United States, on September 16, 2011, and again on August 23, 2013. Thereafter, Zuniga unlawfully re-entered the United States and operated Xtreme Construction Company (Xtreme) with his wife, Samira Zuniga, from Iowa City.
In April 2011, nine workers employed by Xtreme were arrested by Immigration and Customs Enforcement while working for Xtreme and Eastern Iowa Construction on a roofing job in Hiawatha, Iowa. The nine workers were determined to be unlawfully in the United States. Shortly thereafter, Zuniga, his wife, and his family fled to Mexico to avoid the pending investigation. When Zuniga’s wife returned several weeks later to retrieve their belongings, she was arrested, charged, convicted, and sentenced to prison for harboring illegal aliens. Zuniga remained a fugitive until his arrest in southern California in October 2014.
Zuniga was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Zuniga was sentenced to 12 months’ imprisonment and ordered to serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Zuniga is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and investigated by Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-0078-LRR.
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Former Gadsden County Sheriff's Captain Sentenced to Prison for Civil Rights ViolationRead the Press Release
TALLAHASSEE – James Corder, 54, a former captain with the Gadsden County Sheriff’s Office, was sentenced today by United States District Judge Mark E. Walker to 30 months in federal prison for violating the civil rights of an arrestee, obstructing justice, and making false statements in a federal investigation. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Corder was convicted on January 29, 2015, at the close of a four-day jury trial. Evidence presented at trial established that Corder stole $1,785 in cash from an arrestee, William Easterwood, and then lied in a sworn statement to FBI and FDLE agents investigating the theft.
“Law enforcement officers and other public servants are rightly held to a high standard of integrity, and I am proud of the many law enforcement officers who faithfully protect the Northern District of Florida,” said U.S. Attorney Marsh. “No one is above the law, and those who abuse our community’s trust should expect consequences.”
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, with assistance from the Gadsden County Sheriff’s Office. It was prosecuted by Criminal Chief Karen Rhew-Miller.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Company and Owner Agree to Resolve Alleged False Claims Act Violations Regarding Historically Underutillized Business Zone ProgramRead the Press Release
Orlando, Florida, based Air Ideal Inc. and its majority owner, Kim Amkraut, have agreed to pay the United States $250,000 to resolve allegations that they made false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company, the Justice Department announced today. Under the settlement, the defendants must also pay five percent of Air Ideal’s gross revenues over the next five years.
“When companies falsely claim eligibility for government contracts set aside for HUBZone businesses, they not only misuse taxpayer funds, but they also deprive HUBZone communities of the benefits of the program,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This settlement shows that there is a stiff price to pay for obtaining government contracts through false statements.”
“The HUBZone program is an important tool in the government’s effort to strengthen our economy by encouraging businesses to grow in underutilized and disadvantaged areas,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “We will not tolerate contractors who use deception to undermine its objectives and effectiveness.”
The purpose of the HUBZone program is to stimulate job growth in areas that have historically had low business investment. Under the HUBZone program, companies that maintain their principal office in a designated HUBZone and meet certain other requirements can apply to the SBA for certification as a HUBZone small business company. HUBZone companies can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.
The United States’ complaint alleged that Air Ideal and Amkraut originally applied to the HUBZone program in 2010 by claiming that Air Ideal’s principal office was located in a designated HUBZone. The complaint further alleged that, in fact, this location was a “virtual office” where no Air Ideal employees worked, and that Air Ideal was actually located in a non-HUBZone location. Allegedly, the defendants not only misrepresented the location of Air Ideal’s principal office to the SBA, but also submitted to the SBA a fabricated lease agreement and other fabricated documents for its purported HUBZone office. The complaint further alleged that during the government’s investigation of this case, the defendants fabricated another version of its agreement for the virtual office and submitted that false document to the government.
The complaint alleged that Air Ideal used its fraudulently-procured HUBZone certification to obtain contracts from the U.S. Coast Guard, U.S. Army, U.S. Army Corps of Engineers and the U.S. Department of the Interior. Each of those contracts had been set aside for qualified HUBZone companies. The United States’ complaint asserted claims against Air Ideal and Amkraut under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989.
“The OIG will aggressively investigate intentional misrepresentations made by individuals who lie in order to claim eligibility for SBA set-aside programs,” said Inspector General Peggy E. Gustafson of the SBA. “I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by Patricia Hopson, who is employed in the construction industry. Under the act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Ms. Hopson will receive $42,500.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Middle District of Florida, in conjunction with the SBA’s Office of Inspector General (OIG) and Office of General Counsel, the Department of Homeland Security’s Office of Inspector General, and the Defense Criminal Investigative Service.
The case is U.S. ex rel. Hopson v. Air Ideal, Inc. and Kim Amkraut, No. 6:13-cv-775-Orl-37GJK (M.D. Fla.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Florida Company and Owner Agree to Resolve Alleged False Claims Act Violations Regarding Historically Underutilized Business Zone ProgramRead the Press Release
Orlando, FL – Orlando, Florida, based Air Ideal Inc. and its majority owner, Kim Amkraut, have agreed to pay the United States $250,000 to resolve allegations that they made false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company, the Justice Department announced today. Under the settlement, defendants must also pay five percent of Air Ideal’s gross revenues over the next five years.
“When companies falsely claim eligibility for government contracts set-aside for HUBZone businesses, they not only misuse taxpayer funds, but they also deprive HUBZone communities of the benefits of the program,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This settlement shows that there is a stiff price to pay for obtaining government contracts through false statements.”
“The HUBZone program is an important tool in the government’s effort to strengthen our economy by encouraging businesses to grow in underutilized and disadvantaged areas,” said U.S. Attorney A. Lee Bentley, III of the Middle District of Florida. “We will not tolerate contractors who use deception to undermine its objectives and effectiveness.”
The purpose of the HUBZone program is to stimulate job growth in areas that have historically had low business investment. Under the HUBZone program, companies that maintain their principal office in a designated HUBZone and meet certain other requirements can apply to the SBA for certification as a HUBZone small business company. HUBZone companies can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.
The United States’ complaint alleged that Air Ideal and Amkraut originally applied to the HUBZone program in 2010 by claiming that Air Ideal’s principal office was located in a designated HUBZone. The complaint further alleged that, in fact, this location was a “virtual office” where no Air Ideal employees worked, and that Air Ideal was actually located in a non-HUBZone location. Allegedly, the defendants not only misrepresented the location of Air Ideal’s principal office to the SBA, but also submitted to the SBA a fabricated lease agreement and other fabricated documents for its purported HUBZone office. The complaint further alleged that during the government’s investigation of this case, the defendants fabricated another version of its agreement for the virtual office and submitted that false document to the government.
The complaint alleged that Air Ideal used its fraudulently-procured HUBZone certification to obtain contracts from the U.S. Coast Guard, U.S. Army, U.S. Army Corps of Engineers and the U.S. Department of the Interior. Each of those contracts had been set aside for qualified HUBZone companies. The United States’ complaint asserted claims against Air Ideal and Amkraut under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989.
“The OIG will aggressively investigate intentional misrepresentations made by individuals who lie in order to claim eligibility for SBA set-aside programs,” said Inspector General Peggy E. Gustafson of the SBA. “I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by Patricia Hopson, who is employed in the construction industry. Under the Act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Hopson will receive $42,500.
This matter was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Florida, in conjunction with the SBA’s Office of Inspector General (OIG) and Office of General Counsel, the Department of Homeland Security’s Office of Inspector General, and the Defense Criminal Investigative Service.
The case is U.S. ex rel. Hopson v. Air Ideal, Inc. and Kim Amkraut, No. 6:13-cv-775-Orl-37GJK (M.D. Fla.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Federal Jury Convicts Colleyville, Texas Man in Nearly $4 Million Wind Farm Investment ScamRead the Press Release
DALLAS — Following a seven-day trial before U.S. District Judge Barbara M. G. Lynn, a federal jury has convicted David Lyman Spalding of Colleyville, Texas, on all counts of a superseding indictment charging various offenses related to a wind farm investment scam he ran, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, the jury convicted Spalding, 62, on two counts of wire fraud, one count of mail fraud, two counts of making false testimony under oath in a bankruptcy proceeding and one count of making a false statement in a bankruptcy case. Each of the fraud counts carries a maximum statutory sentence of 20 years in federal prison and a $250,000 fine; every other count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, Spalding could be ordered to forfeit a money judgment in the amount of the fraud as well as his residence located on Spring Garden Drive in Colleyville. He will remain on bond pending sentencing, which is set for July 29, 2015, before Judge Lynn.
The government presented evidence at trial that from at least 2003 and continuing through approximately April 2011, Spalding raised approximately $3.7 million from 97 investors in 11 states. Spalding made false representations to get investors to invest in promissory notes issued by Wind Plus, Inc. and Baseload Energy LLC and diverted the funds for his own benefit, to include purchasing real estate and extensive international travel not related to either Wind Plus or Baseload.
When Spalding filed bankruptcy in November 2009 for Wind Plus Inc. and Wind Plus Holdings Inc., he continued to solicit investors for Baseload energy, promising that funds would be used to build infrastructure for renewable energy projects. He also represented that the changes in management were for business purposes when in fact the staff had quit Wind Plus because they were not paid. As part of his fraud, Spalding also represented that investors would be repaid their investments, within varying timeframes from 60 days to one year, when in fact, Spalding did not repay investors within any of the specified timeframes.
The government presented additional evidence that in the Wind Plus bankruptcy case, Spalding falsely testified under oath about the number of individuals who were note holders as well as the amount of distributions and withdrawals he had taken.
The FBI investigated. Assistant U.S. Attorney Chris Stokes and Special Assistant U.S. Attorney Dan Gividen are prosecuting.
Federal Court Marijuana Prosecution UpdateRead the Press Release
FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today in two separate cases involving marijuana cultivation operations in Fresno and Kern Counties, according to U.S. Attorney Benjamin B. Wagner.
1,429 Marijuana Plants Seized from Squaw Valley Grow (1:12-cr-352 AWI)
United States District Judge Anthony W. Ishii sentenced Bounhome Singharath, 63, of Las Vegas, to two years in prison. On March 10, 2014, Singharath pleaded guilty and acknowledged that law enforcement officers had found 1,429 marijuana plants at a grow site on Ripple Lane in Squaw Valley in eastern Fresno County. Singharath was leaving the grow site in knee-high rubber boots and camouflage pants when he encountered the officers. Singharath said he is a resident of Las Vegas and had been living at the grow site for approximately two months for the purpose of growing marijuana. This case was the product of an investigation by the U.S. Drug Enforcement Administration (DEA) and Fresno County Sheriff’s Office.9,746 Marijuana Plants, 2 Firearms, Illegal Pesticides Seized in Sequoia National Forest Grow (1:12-cr-221 LJO)
Marcelina Botello Charles, 46, of Murrieta, Calif. pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 9,749 marijuana plants at a grow site in the Lilly Canyon area of the Sequoia National Forest. She also pleaded guilty to distributing illegal pesticides, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and agreed to make restitution to the U.S. Forest Service for damage caused by the marijuana cultivation operation.According to court documents, the public land sustained extensive damage as a result of the marijuana cultivation activities there. Native oak trees and other vegetation were killed or cut down to make room for the marijuana plants. The soil was tilled, and fertilizers, pesticides, and rodenticides were spread throughout the site. Cans of a common Mexican rat poison, Fosfuro de Zinc and “Ratone: fosfuro de zinc,” and a Mexican insecticide, “QúFuran,” were found at both the cultivation site and the residence where Charles temporarily resided in Bakersfield, after she was found delivering supplies to the marijuana cultivation operation. In addition to the pesticides, two handguns and numerous items relating to marijuana cultivation were seized.
Botello Charles is scheduled for sentencing on August 11, 2014, by United States District Judge Lawrence J. O’Neill. The drug conspiracy carries a maximum prison term of 20 years in prison and a $4 million fine. The FIFRA violation carries a maximum penalty of one year in prison and a maximum fine of $25,000. The actual sentence, however, will 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.
This case is the product of an investigation by the U.S. Forest Service, DEA, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Department.
Assistant United States Attorney Karen Escobar is prosecuting both cases.
Dmv Employee Sentenced for Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – The United States Attorney’s Office announced today that Latonya Young, 44, an employee of the Erie County Clerk’s Office who was assigned to work at the New York State Department of Motor Vehicles (NYS DMV), who was convicted of mail fraud, was sentenced to time served and one years supervised release by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the prosecution, stated that Young worked as a motor vehicle representative at the NYS DMV and was authorized to conduct transactions. The defendant had access to a NYS DMV database and computer system that contained driver’s licenses, and motor vehicle registration and title records.
Between June 13, 2012, and August 30, 2012, Young unlawfully processed fraudulent duplicate title applications for a person working with the government in return for cash payments totaling $725. In processing the fraudulent documents, the defendant unlawfully forged the name of the person listed on the duplicate title applications.
Young also admitted that in 2010, she assisted another in amending a New York State license to create a fake identification. The fake identification was created to enable an individual under the legal drinking age to obtain alcohol.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, NYS Department of Motor Vehicles, under the direction of Commissioner Barbara Fiala, Buffalo Police Department, under the direction of Commissioner Daniel Derenda, NYS Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox, NYS Department of Financial Services, under the direction of Superintendent Benjamin Lawsky, Criminal Investigations Division, and the NYS Inspector General’s Office, under the direction of Inspector General Catherine Leahy Scott.
Dermott Woman Charged in Superseding Indictment in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK – Another feeding program sponsor for the Department of Human Services (DHS) has been indicted for her role in a conspiracy to steal federal money earmarked to feed hungry children. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Kattie L. Jordan, 50, of Dermott, previously identified as “Co-Conspirator ‘A’” in an indictment that was returned by a Federal Grand Jury on December 11, 2014, was added as a defendant to the original indictment. The indictment already named Gladys Elise King, 34, of England; Tonique D. Hatton, 37, of North Little Rock; and Jacqueline D. Mills, 39, of Helena, as defendants in the case.
The Superseding Indictment, returned by a Federal Grand Jury on April 8, 2015, charges Hatton, Jordan, King, and Mills with conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds. Additionally, Mills is charged with wire fraud, paying bribes, and engaging in money laundering. King and Hatton are also charged with accepting bribes. The Superseding Indictment also seeks forfeiture of the proceeds obtained as a result of the fraud from the defendants.
According to the Superseding Indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by DHS. Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The Superseding Indictment states that Hatton and King worked for DHS, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Jordan and Mills operated as sponsors for separate feeding programs. Hatton and King were responsible for approving Jordan’s programs and Mills’ programs at various times.
The Superseding Indictment alleges that Mills and Jordan made bribe payments to DHS employees Hatton and King. In exchange for those bribes, Mills and Jordan would submit inflated numbers of meals purportedly served from their sites. Hatton and King provided protection from DHS scrutiny.
The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture—Office of Inspector General, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg. If anyone is aware of any fraudulent activity regarding these feeding programs, please email that information to the United States Attorney’s office at [email protected].
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Clinton County Resident Sentenced on Methamphetamine OffenseRead the Press Release
On April 8, 2015, Jimmy L. Richeson, Sr., 52, of Trenton, Illinois, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Richeson, who had previously pled guilty to an indictment charging conspiracy to manufacture methamphetamine, was sentenced to 84 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2012 and March 2014, in Jackson, Randolph, and St. Clair Counties. Evidence at the plea and sentencing hearings established that Richeson was involved with co-defendants Allen and Carmen Clover and others in the manufacture of methamphetamine. Members of the group often traveled together to obtain pseudoephedrine, which they would later provide to methamphetamine manufacturers. Carmen Clover has previously been sentenced to 57 months in prison for her role in the methamphetamine conspiracy. Allen Clover has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Tilden Police Department, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Cleveland man indicted for fraud over $1.2 million purchase of Richfield homeRead the Press Release
A Cleveland man was indicted on bank fraud charges related to the fraudulent purchase of a Richfield home for nearly $1.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Damone Tyson, 49, was indicted on one count of conspiracy to commit bank fraud and one count of bank fraud. His actions resulted in a $631,854 loss to IndyMac Bank, according to the indictment.
Tyson served as president an agent for a consulting company known as Athletes & Entertainers, Inc. in Cleveland. The company represented that it provided financial, personal and business advice to professional athletes and entertainers, according to the indictment.
In 2007, Tyson directed a straw buyer to purchase the residential property at 3400 East Galloway Drive in Richfield. The straw buyer paid $1,189,000 for the home, which Tyson used as his primary residence. The straw buyer was able to arrange financing through only after making several false statements on loan applications about her income, savings, job title and other topics. These false statements were made at Tyson’s direction, according to the indictment.
The loans, obtained by the straw buyer at Tyson’s direction, eventually went into foreclosure, causing the loss to IndyMac Bank, according to the indictment.
Assistant United States Attorneys Mark Bennett and Derek Kleinmann are prosecuting the case following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial where it is the government's burden to prove guilt beyond a reasonable doubt.
Church Custodian Arraigned on Child Pornography ChargesRead the Press Release
NEWNAN, Ga. - Emmett Winston Smith, a/k/a Everett Smith, a former facilities assistant and Sunday school teacher at a church in Newnan, Georgia, has been arraigned on federal charges of distributing, receiving, and possessing child pornography. Smith was indicted by a federal grand jury on March 24, 2015.
“Smith allegedly traded images and videos of child pornography with others, and went into Internet chat rooms looking to make contact with others who shared his same interests,” said Acting U.S. Attorney John Horn. “This case, which began with a lead from the Royal Canadian Mounted Police, illustrates our strong partnership with international law enforcement to combat child pornography and to identify and prosecute those who trade images of the sexual abuse of children.”
“The child pornography discovered during this investigation shows the abuse of numerous innocent children who are re-victimized each time images of their sexual exploitation are traded,” said Acting HSI Atlanta Special Agent in Charge Ryan Spradlin. “HSI Special Agents are actively working to disrupt the trade of these illegal images, and will continue to coordinate with our foreign and domestic law enforcement partners to identify and seek prosecution of criminals who possess them.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In 2014, the Royal Canadian Mounted Police investigated a person on allegations that he traded in child pornography. That investigation revealed that the Canadian subject had traded more than 200 e-mails containing child pornography with a person using an e-mail address that eventually led back to a house in Newnan, Georgia. Canadian law enforcement passed this information on to Special Agents of the Department of Homeland Security, who continued the investigation.
Homeland Security Investigations agents identified Emmett Winston Smith as the person trading e-mails with attachments of child pornography. They obtained a federal search warrant for Smith’s house in Newnan and executed it on March 5, 2015, where they found child pornography on three computers at the house. Smith was arrested that same day.
At the time of his arrest, Smith was working as a custodian at a large church in downtown Newnan that had a pre-school attached to it. He was also a Sunday school teacher at that same church.Smith, 66, of Newnan, Georgia, was arraigned today before U.S. Magistrate Judge Gerrilyn G. Brill. He was indicted on March 24, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Canadian Woman Pleads Guilty to Conspiracy to Distribute Approximately 20 Kilograms of CocaineRead the Press Release
FRESNO, Calif. —Heather Lynn Necheff, 47, of Regina, Saskatchewan Canada, pleaded guilty yesterday to conspiracy to distribute and possess to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 17, 2013, Necheff’s vehicle was stopped for a traffic violation by a California Highway Patrol officer in Kern County in the Buttonwillow area. The officer obtained permission to search the vehicle and found approximately 20 kilograms of cocaine wrapped in individual duct-taped packages inside a suitcase. Necheff admitted that she was transporting the cocaine from Los Angeles to Seattle for eventual importation into Canada.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Necheff is scheduled to be sentenced by Judge Lawrence J. O'Neill on July 21, 2014. Necheff faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will 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.
California man indicted for distribution of methamphetamineRead the Press Release
A two-count indictment was filed charging a California man with crimes related to methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jose Vega-Farias, 27, of Strathmore, California, was indicted on one count of conspiracy to distribute and possess with the intent to distribute methamphetamine, and one count of attempted possession with the intent to distribute methamphetamine.
Count 1 of the indictment alleges that from as early as approximately February 25, 2015, to on or about March 3, 2015, Vega-Farias and others conspired to distribute and to possess with the intent to distribute 500 grams or more of methamphetamine by shipping a parcel via U.S. Postal Service Express Mail from California to Ohio. Jose Vega-Farias accepted delivery of the parcel in Massillon, Ohio, and opened the package. Count 2 alleges that on or about March 3, 2015, Vega-Farias attempted to possess 887.5 grams of methamphetamine.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Sentenced in Federal Court in Syracuse for Sexually Exploiting Four Jefferson County Girls over the InternetRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the sentencing today of a Marina, California man on federal child exploitation charges.
DENNIS WHITT, age 41, was sentenced today by Hon. Glenn T. Suddaby to a total of 60 years in federal prison for enticing four minor children, ages 7 to 16, to engage in sexually explicit conduct with themselves and with one another, for the purpose of transmitting live depictions of the abuse to Whitt over the Internet. In November, 2014 WHITT pled guilty to seven counts of sexually exploiting these children.
Investigation by the New York State Police and the Federal Bureau of Investigation revealed that the four Jefferson County children were communicating with someone over the Internet who portrayed himself to be a 16 year old boy from California named "Lucas." "Lucas," never showed his face to the children, and would type directions to them as to what sexual conduct he wanted them to display for him, live, over the Internet.
As the result of the investigation the FBI executed a search warrant at WHITT’s California home in April of 2014, and WHITT was confirmed to be "Lucas." A review of WHITT’s computers revealed video and image files WHITT had recorded of the Jefferson County victims, as well as similarly explicit video and image files of other children. WHITT had catalogued over 10,000 video and image files depicting these children. To date, the FBI has identified a total of 35 children WHITT engaged with over the Internet, and whose sexually explicit images WHITT catalogued on his computers.
In addition to the 60 year sentence, WHITT was sentenced to a term of supervised release for life, and will be required to register as a sex offender.
WHITT’s arrest is the result of an investigation by the New York State Police and the Federal Bureau of Investigation, supported by the Northeast Cyber Forensics Center at Utica College, and the Jefferson County District Attorney’s Office. WHITT was prosecuted by Assistant U.S. Attorney Lisa Fletcher, as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Bronx Man Sentenced to 16 Terms of Life in Prison for Armed Robberies of Seven Banks and A Restaurant in Bronx, Westchester, and Putnam CountiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that KARRIEM BARROW was sentenced today in White Plains federal court to 16 terms of life in prison plus two terms of 20 years in prison in connection with his participation in a series of armed robberies that included seven banks and a restaurant in Bronx, Westchester, and Putnam counties over a two-month period. BARROW was sentenced by U.S. District Judge Kenneth M. Karas, who presided over the nine-day jury trial that resulted in BARROW’S conviction in November 2011.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentence sends a strong and clear message that our federal and local partners will work together to ensure that those who endanger the lives of our citizens through brazen acts of violence will be met with severe punishment.”
According to the Complaint, Indictment, and evidence presented at trial:
In January 2010, BARROW and his accomplice Carl Farrington robbed the Golden China restaurant located at 881 E. Gun Hill Road in the Bronx, New York, at gunpoint. BARROW and Farrington subsequently participated in a series of armed bank robberies, robbing seven banks (see below).
BARROW was convicted of one count of conspiracy to commit armed robbery, one count of armed robbery, one count of conspiracy to commit armed bank robbery, seven counts of armed bank robbery and eight counts of using, carrying, or possessing a firearm in furtherance of a crime of violence.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the New York State Police, and the police departments of Westchester County, White Plains, Bronxville, Briarcliff, Greenburgh, and Carmel.
This case is being handled by the Office's White Plains Division. Assistant United States Attorneys Douglas B. Bloom and Parvin Moyne are in charge of the prosecution.
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Bridgeport Man Sentenced to Prison for Ramming Law Enforcement Vehicle and Injuring ATF AgentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARD PETTWAY, 39, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for ramming a law enforcement vehicle and injuring an ATF special agent.
This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, between April and June 2014, investigators made three controlled purchases of crack cocaine from PETTWAY. On June 16, 2014, an individual working with law enforcement called PETTWAY and placed an order for crack cocaine. PETTWAY arranged to meet the drug purchaser at a location on Fairfield Avenue in Bridgeport. After PETTWAY arrived at the meeting location, Bridgeport Police officers exited a marked car and approached his vehicle. PETTWAY then attempted to evade law enforcement and drove away at a high rate of speed. A Bridgeport Police officer and an ATF special agent who were in an unmarked vehicle nearby attempted to block PETTWAY’s escape by positioning their car to partially block the roadway. PETTWAY then rammed into the back end of the unmarked vehicle, spinning it approximately 90 degrees and rendering it inoperable, and fled the scene. He was apprehended later that day.
The ATF special agent suffered back and neck injuries and was taken to the hospital.
After his arrest, PETTWAY assisted law enforcement in the recovery of an illegal firearm.
On October 22, 2014, PETTWAY pleaded guilty to one count of assaulting a federal agent with a dangerous weapon.
This case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Bedford Man Plead Guilty to Distributing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Bedford, Pa., pleaded guilty in federal court to a charge of distribution of child pornography, United States Attorney David J. Hickton announced today.
Wade C. Baer, 31, of Bedford, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct.
Judge Gibson scheduled sentencing for Aug. 31, 2015, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Southwest Computer Crime Task Force of the Pennsylvania State Police conducted the investigation that led to the prosecution of Baer.
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 better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brandon Residents Indicted for Conspiracy and Making False StatementsRead the Press Release
Jackson, Miss - Kayla Paul Lindsey, 46, of Brandon, and Marlene Solomon Williams, 61, of Brandon, were indicted on April 7, 2015 by a federal grand jury for conspiracy to make false statements and for making false statements to the Federal Home Loan Bank of Dallas, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
The 17- count indictment alleges that Lindsey and Williams administrated a grant from the Federal Home Loan Bank of Dallas that was intended to provide home repairs for low- to moderate-income households. According to the indictment, Lindsey and Williams required the contractors they hired to perform the repairs to inflate their invoices and to kick the extra money back to Lindsey and Williams. The fraudulently inflated invoices were submitted to the Federal Home Loan Bank of Dallas through its local member institution, Trustmark Bank. It is alleged that, during the course of the conspiracy, the defendants were paid $187,261.23 in kickbacks generated by the fraudulent invoices.
Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General, stated: "The act of committing fraud upon programs that are intended to assist the elderly, low income, or others who have fallen on hard times is detestable. Kayla Lindsey and Marlene Williams allegedly engaged in such a fraud against a Federal Home Loan Bank. FHFA-OIG is committed to identifying fraudsters and seeking prosecution to the fullest extent the law allows."
"This case is an example of the results we can achieve by working with our law enforcement partners," stated FBI SAC Donald Alway. "I commend the work of the individuals involved in this collaborative, investigative effort."
This case was investigated by the Federal Housing Finance Agency Office of the Inspector General, Federal Bureau of Investigation, USDA Office of Inspector General, and the Mississippi Attorney General’s Office.
If convicted each defendant faces up to five years in prison and a $250,000 fine for the conspiracy, and up to 30 years in prison and a $1,000,000 fine for each of the 16 remaining counts of making false statements to the Federal Home Loan Bank of Dallas.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Australian Investigation Leads to Alturas Man; Sentenced Today to Nearly 20 Years in Prison for Child PornographyRead the Press Release
SACRAMENTO, Calif. — Michael Elliot Papac, 47, of Alturas, was sentenced today by United States District Judge John A. Mendez to 19 years and seven months in prison to be followed by a lifetime of serviced release for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Modoc County Sheriff’s Office and the Queensland Police Service in Australia. Assistant United States Attorney Josh F. Sigal prosecuted the case.
According to court documents, Papac was arrested on February 14, 2014, following a referral by the Queensland Police Service in Australia regarding the potential sexual abuse of a minor. A covert Internet investigator in Queensland come into contact with Papac on a Russian website known for being a source of child pornography. back to Papac in Alturas. Papac had posted photos of a sleeping 8-year-old girl with her pajama top unbuttoned. He discussed his plan to sedate and molest her while she slept and to take and distribute photographs of the molestation. With the assistance of Australian police, HSI agents were able to trace Papac’s email to his residence in Alturas and arrest him before he was able to act on his plan. In addition, on at least three separate occasions between February 7, 2014, and February 10, 2014, he sent and received child pornography.
Papac pleaded guilty to the charges on June 24, 2014. He had been convicted in 2005 in Modoc County for lewd acts with a minor and had served six years in prison.
At sentencing, Judge Mendez noted that Papac “learned nothing” from his prior state prison term and explained that the defendant has “created and continues to create a danger to the public,” and that but for the “terrific” work of law enforcement, “further damage was not done” to the victim.
“This case shows the extraordinary level of collaboration among law enforcement agencies around the globe to combat the online sexual exploitation of children,” said Tatum King, acting special agent in charge of HSI San Francisco. “While the initial lead was uncovered on the other side of the world, owing to remarkable international cooperation and astute detective work, HSI special agents were able to locate this young girl and rescue her. For that, we’re indebted to the efforts of the Queensland Police Service and, closer to home, to the Modoc County Sheriff’s Department.”
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.
Another Charged and Arrested in Sex Trafficking of Minors ConspiracyRead the Press Release
HOUSTON – The final man in a six-defendant sex trafficking and alien harboring conspiracy has been arrested and will make his initial appearance in federal court, announced U.S. Attorney Kenneth Magidson.
Walter Alexander Ejcalon Xalcut aka Chapin, 27, an illegal alien from Guatemala, was arrested last night in Houston. He is set make his initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. today.
Xalcut is charged along with Hugo Alexander Melendez-Gonzalez aka El Gordo, 37, Jose William Quintanilla aka Pablo or Ronko, 40, Franciso Guerra Yvinni Pleitez aka Colochin or Flaco, 33, Adelio De Jesus Batres aka Muneco, 52, and Mariano Quintanilla-Campos, 33, all of El Salvador. Xalcut’s co-conspirators had been previously arrested and remain in custody.
The indictment alleges the defendants were engaged in a conspiracy to commit sex trafficking of a minor by force and coercion, sex trafficking of a minor as well as an alien harboring and transporting conspiracy.
The indictment alleges that from late 2010 to the present, all defendants conspired to cause a person less than 18 years of age to engage in a commercial sex act and did, in fact, cause two minor victims to engage in a commercial sex act. The defendants allegedly instructed minor undocumented victims and young women how to solicit and charge for commercial sex acts and collected the fees that were paid.
The indictment further alleges the four engaged in a conspiracy to harbor and conceal illegal aliens in Houston.
The case was investigated by the FBI, Harris County Sheriff’s Office, Houston Police Department, Homeland Security Investigations and Texas Department of Public Safety. Assistant U.S. Attorney Doug Davis is prosecuting.Anchorage Felon Sentenced for Illegal Possession of A FirearmRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Utuva Alaelua was sentenced in federal court in Anchorage to 58 months in federal prison, to be followed by three years of supervised release, for his conviction for being a felon in possession of a firearm.
Chief United States District Court Judge Ralph R. Beistline imposed the sentence on Alaelua, 31.
The case was prosecuted by Assistant U.S. Attorney Kelly Cavanaugh. Alaelua pled guilty to one count of an indictment charging him with being a felon in possession of a firearm.
In Anchorage, on August 27, 2014, Anchorage Police Department officers responded to a local city park in reference to a running vehicle with two individuals who appeared to be passed out inside the vehicle. Alaelua was in the driver’s seat of the vehicle, which had been reported stolen on August 8, 2014. Alealua had a Smith & Wesson 9mm pistol inside the driver’s side door pocket of the vehicle and was wearing a holster for the firearm. The firearm had been reported stolen in June 2014. Alaelua is prohibited under federal law from possessing firearms or ammunition due to his prior felony convictions in the United States District Court for the District of Alaska for Distribution of a Controlled Substance and Carrying a Firearm during Drug Trafficking.
Ms. Loeffler commended the Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Alaelua.
Albuquerque Woman Pleads Guilty to Federal Oxycodone Trafficking ChargesRead the Press Release
ALBUQUERQUE – Crystal Staggs, 53, of Albuquerque, N.M., pleaded guilty today in federal court to Oxycodone trafficking charges. Under the terms of her plea agreement, Staggs will be sentenced to 63 months in federal prison followed by a term of supervised release to be determined by the court.
Staggs was arrested on Aug. 28, 2012, on a criminal complaint charging her with distributing and attempting to distribute Oxycodone to an undercover DEA agent on four occasions from June 13, 2012 through Aug. 28, 2012, in Bernalillo County, N.M. According to the complaint, Staggs sold Oxycodone to the undercover agent as follows: 48 30-mg Oxycodone pills and four 15-mg Oxycodone pills for $1,000.00 on June 13, 2012; 100 30-mg Oxycodone pills for $1,800.00 on June 27, 2012; and 87 30-mg Oxycodone pills and six 15-mg Oxycodone pills for $1,800.00. Staggs was arrested on Aug. 28, 2012, when she attempted to sell 100 30-mg Oxycodone pills to the undercover agent; the pills were in her possession when she was arrested.
In Sept. 2012, Staggs was indicted and charged with three counts of distribution of Oxycodone and one count of possession of Oxycodone with intent to distribute.
During today’s change of plea hearing, Staggs pled guilty to the four-count indictment and admitted to distributing an aggregate of 10.2 grams of Oxycodone to an undercover DEA agent from June 13, 2012 through Aug.28, 2012.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office and is being prosecuted by Assistant U.S. Attorney Shammara Henderson. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Akron man indicted for possession of images of child sexual abuseRead the Press Release
A grand jury returned a two-count indictment charging William A. Marino, 26, of Akron, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing images of child sexual abuse, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Akron Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Akron man faces heroin chargeRead the Press Release
A federal grand jury returned a one-count indictment charging Darious Robinson, aka Darius Robinson, 26, of Akron, with possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on March 13, 2015, Robinson was found to have in his possession a plastic bag containing three individually wrapped plastic bats which contained approximately 4.5 grams of heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
28 Year-Old Caguas Man Arrested for Sextortion and Attempted Sex Trafficking of A 33 Year-Old WomanRead the Press Release
SAN JUAN, Puerto Rico – U.S. Magistrate Judge Bruce McGiverin authorized a criminal complaint charging Mario Lebrón-Càceres with one count of attempted sex tracking by means of force, threats of force, fraud and coercion, and one count of interstate extortion, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The criminal complaint alleges that from on or about February 24, 2015, through on or about April 5, 2015, the defendant attempted to recruit, entice, harbor, transport, provide, obtain and maintain a person, knowing or in reckless disregard of the fact that means of force, threats of force, fraud, coercion, or any combination of such means would be used to cause the person to engage in a commercial sex act.
More specifically, on or about February 24, 2015, the 28 year-old defendant met a 33 year-old woman online through the Internet application known as “Meetme.com.” Shortly after meeting, the two switched to another Internet chat program known as “WhatsApp.” Within a matter of only a few days, Lebrón-Càceres began requesting sexually explicit images from the 33 year-old woman. After much persuasion, she finally relented to his request and sent several nude images to Lebrón-Càceres. Almost immediately thereafter, Lebrón-Càceres began to threaten to upload the images to a known pornographic website highlighting Puerto Rican women and to share the images with her co-workers if she did not agree to have sex with him. The adult victim filed a complaint with the local authorities, who in turn asked for assistance from the ICE-HSI Human Exploitation Group.
On April 2, 2015, with the assistance of Federal agents, the victim conducted several consensually monitored telephone calls with Lebrón-Càceres, during which the defendant suggested that they meet at a motel where they could have sex in exchange for which he would purportedly delete or return to the victim the sexually explicit images she had sent him.
“‘Sextortion’ is one of the most common threats facing our younger generation. This is the first case prosecuted by Federal authorities in Puerto Rico involving ‘sextortion’ between adults. Routinely, online predators use the computer to befriend unsuspecting victims and convince them to record themselves performing sexually explicit acts. Once the predator gets a hold of such images, he feels empowered to force the victim to do anything he wants. In this case, it was forcing the victim to have sex with him or else he was going to publish the sexually explicit images,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
“This case is particularly important at it sends a clear message that HSI will investigate and apprehend those who prey on others for sexual gratification despite the age of the victim,” said Ángel M. Meléndez, special agent in charge of HSI San Juan.
Assistant U.S. Attorney Marshal D. Morgan is in charge of the prosecution of the case. The detention hearing is scheduled for tomorrow, Thursday, April 9 at 1:30 pm. The defendant faces a mandatory minimum sentence of 15 years and a maximum possible sentence of life in prison if he is found guilty. Criminal complaints contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Tuesday 7 April 2015
Williamson County Court at Law Judge Indicted by Federal Grand Jury in Connection with Firearm Violations and False Statements to a Government AgentRead the Press Release
In Austin today, a federal grand jury indicted Williamson County Court at Law Judge Timothy L. Wright, III, on various firearm violations and making false statements to a government agent. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert Elder, and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.
The nine-count indictment alleges that between June 1, 2014, and February 24, 2015, Wright sold firearms on three occasions to a person he knew or had reasonable cause to believe was a convicted felon; aided, abetted and facilitated the smuggling and attempted smuggling of firearms from the United States; and made a false statement during the purchase of a firearm. In addition, the indictment alleges that Wright made false statements on two occasions to a government agent about creating false paperwork and selling firearms to a convicted felon.
According to ATF Special Agent in Charge Robert Elder, “This firearms trafficking investigation, which involves multiple firearms destined for Mexico, is another example of ATF’s relentless pursuit of individuals who attempt to utilize any means available to illegally appropriate and divert firearms for criminal purposes.”
“The indictment of Timothy L. Wright, Williamson County Court at Law Judge, sends a strong message that Homeland Security Investigations (HSI) will not tolerate the unlawful export of firearms, regardless of the smuggler’s position or status,” said James Spero, Special Agent in Charge, HSI San Antonio. “These serious gun charges are a breach of that public trust which puts the safety of our communities at risk.”
Wright, age 70, has been the judge of Williamson County Court at Law # 2 since January 2, 2003.
Upon conviction, Wright faces up to ten years of imprisonment on each firearm charge and up to five years of imprisonment on each count alleging false statement to a government agent.
This indictment resulted from an investigation conducted by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations with assistance from the Internal Revenue Service and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Washington, D.C. Man Sentenced to Six Years in Prison for Distributing HeroinRead the Press Release
Users Traveled from Fairfax County to Purchase Heroin
ALEXANDRIA, Va. – Antonio Torrez Woodson, 33, of Washington, D.C., was sentenced today to 72 months in prison followed by four years of supervised release for conspiracy to distribute 100 grams or more of heroin.
Woodson pleaded guilty to the offense on December 17, 2014. According to court documents, Woodson regularly sold heroin to at least nine adults between the ages of 21 and 36, who traveled from in and around Fairfax County, Virginia, to purchase heroin from the defendant in Washington, D.C. Woodson previously served 60 months in federal prison for selling drugs.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
This case was investigated by the DEA’s Washington Field Division and the Fairfax County Police Department. Special Assistant U.S. Attorney and Virginia Assistant Attorney General Marc J. Birnbaum is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-419.
Two Georgia men plead guilty to federal methamphetamine chargesRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Nicolas Dale Pierce, 32, of Covington, Georgia, and Eric James Nelson, 27, of Conyers, Georgia, pleaded guilty today to conspiracy to distribute 50 or more grams of methamphetamine.
On February 10, 2015, officers with the Metropolitan Drug Enforcement Network Team (MDENT) received information that Nelson and Pierce had brought large quantities of methamphetamine from Georgia to Elkview, West Virginia. Officers attempted to stop Pierce near the LaQuinta Inn in Elkview, but before officers were able to reach the car, Pierce sped away hitting several vehicles. Officers eventually found Pierce behind the nearby Crossings Mall. Pierce rammed two police cars with his car, and then fled on foot. One of the police cars was a total loss due to the impact. When police finally caught up with Pierce, they found him in possession of approximately $2,900 in cash, part of which was prerecorded buy money used during a controlled drug deal earlier in the day. Police also located a loaded gun that Pierce had thrown from his car.
Officers also apprehended Nelson near the LaQuinta Inn. Nelson had approximately 150 grams of methamphetamine and a loaded handgun in his possession.
Nelson and Pierce admitted that they were working together to sell methamphetamine in and around Kanawha County.
Nelson and Pierce face up to 40 years in federal prison when sentenced on July 29, 2015. United States District Judge John T. Copenhaver, Jr. is presiding over the cases.
The Metropolitan Drug Enforcement Network Team conducted the investigation with the assistance of Charleston Police Department’s Special Enforcement Unit. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Tohono O’odham Man Sentenced to 12 Years in Prison for Voluntary ManslaughterRead the Press Release
TUCSON, Ariz. – Yesterday, Michael Henry Flores, 30, a member of the Tohono O’odham Indian Nation, was sentenced by Chief U.S. District Judge Raner C. Collins to 12 years in prison having pleaded guilty on Aug. 21, 2014, to the offense of voluntary manslaughter.
On the night of Aug. 15, 2011, and into Aug. 16, 2011, the defendant became enraged during an argument with his girlfriend and killed her by assaulting and choking her outside his residence near Sells, Ariz.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-13-01207-RCC
RELEASE NUMBER: 2015-031_ Flores
Three charged with child pornography offensesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments today charging three Northern West Virginia residents with child pornography offenses, United States Attorney William J. Ihlenfeld, II, announced.
Robert J. Gongloff, 25, of Weirton, West Virginia, is alleged to have produced numerous images and videos depicting nude minors and minors engaged in sexually explicit conduct. Gongloff, originally from Preston County, West Virginia, is further alleged to have misrepresented his name and age on a website known as MeetMe.com, claiming to be 17 years old and using the name “Johnny Williamson,” in order to transmit sexually explicit photographs to minor females. Following an investigation by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, with assistance from the West Virginia State Police, Gongloff is charged with:
• One count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00, and
• Two counts of “Production of Child Pornography.” He faces between 15 and 30 years in prison and a fine of up to $250,000.00 on each count.Matthew A. Amedeo, 69, of Chester, West Virginia, is alleged to have utilized an online file sharing website to share and download various images of child pornography in Hancock County, West Virginia throughout 2014. Following an investigation by the West Virginia State Police, Amedeo is charged with:
• One count of “Receipt and Distribution of Child Pornography,” for which he faces between five and twenty years in prison and a fine of up to $250,000.00, and
• One count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.Stephen Singo, 34, of Weirton, West Virginia, is alleged to have utilized an online file sharing website to share and download various images of child pornography. Following an investigation by the West Virginia State Police, Singo is charged with:
• One count of “Receipt and Distribution of Child Pornography,” for which he faces between five and twenty years in prison and a fine of up to $250,000.00, and
• One count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the cases on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Labor Union Members Plead Guilty in Manhattan Federal Court to Accepting Bribes in Exchange for Labor Union MembershipsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER LUPINO and KELWYN BENJAMIN pled guilty today, and ADAM FORESTA pled guilty on March 31, 2015, each to participating in a conspiracy to commit honest services wire fraud in connection with their accepting bribes in exchange for memberships in Steamfitters Local 638, a New York City labor union. FORESTA, LUPINO, BENJAMIN, and James Sheeran were arrested in November 2014. LUPINO, BENJAMIN, and FORESTA pled guilty today in Manhattan federal court before United States District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “With their guilty pleas Christopher Lupino, Kelwyn Benjamin, and Adam Foresta have accepted responsibility for their roles in a scheme to swap memberships in Steamfitters Local 638 for cash bribes. We will continue to work with our law enforcement partners at the FBI, the U.S. Department of Labor, and the NYPD to stamp out union fraud wherever we find it.”
According to allegations contained in the Indictment, the underlying criminal Complaint unsealed on November 5, 2014, and statements made during court proceedings:
FORESTA, LUPINO, BENJAMIN, and Sheeran were each members of Steamfitters Local 638, a local division of a labor union that represents workers in the plumbing and pipefitting industries in New York City (the “Union”). Sheeran was an organizer for the Union and worked on membership recruitment. In that capacity, he owed fiduciary duties to Steamfitters Local 638.
In December 2013, an individual who has not been charged (“Applicant-1”) told a cooperating witness (the “CW”) that Applicant-1 had been offered membership in the Union – what is known as a “Union book” – in exchange for a $35,000 bribe. Applicant-1 asked the CW to help him/her pay for the Union book.
Over the next several months, FORESTA, LUPINO, and BENJAMIN each had conversations, which were recorded by the Federal Bureau of Investigation (“FBI”), with the CW about buying Union books for Applicant-1 and another individual who has not been charged (“Applicant-2”). During these calls, the CW was told that each Union book would cost $40,000 – $5,000 for the typical Union application fee and a $35,000 cash bribe.
In October 2014, Applicant-1 met with Sheeran, who coached Applicant-1 to provide answers to questions from Union officials to enable him to secure approval from the interviewing officials, including by misleading the Union officials. Applicant-1 and Applicant-2 met with the Union committee later that month in connection with their applications. After that meeting, LUPINO told the CW that approvals from the Union would come soon.
On November 3, 2014, a few days before Applicant-1 and Applicant-2’s memberships were to be issued, LUPINO and FORESTA arranged for FORESTA to meet with the CW to pick up the bribes for the two Union books. LUPINO told the CW to bring $70,000 in cash and that the other $10,000, which would go to the Union for application fees, should be paid for by check or money order. On November 4, 2014, FORESTA and the CW met in Manhattan. The CW gave FORESTA $35,000 in cash for one Union book – telling FORESTA he/she would pay for the second Union book the next day.
FORESTA, 45, of Staten Island, New York, LUPINO, 51, of New Monmouth, New Jersey, and BENJAMIN, 41, of New York, New York, each pled guilty to one count of conspiring to commit honest services wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
FORESTA, LUPINO, and BEJAMIN are all scheduled to be sentenced on July 31, 2015. Trial against Sheeran is scheduled to begin on September 15, 2015, before Judge Pauley.
Mr. Bharara praised the investigative work of the FBI, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the New York City Police Department.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Jordan Estes are in charge of the prosecution.
The allegations contained in the Indictment against Sheeran are merely accusations, and he is presumed innocent unless and until proven guilty.
Three Individuals Indicted in April 2015 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the April 2015 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
CLINTON JAMES JONES, age 34, of Sallisaw, Oklahoma
Felon in Possession of Firearm and Ammunition
The Indictment alleges that on or about March 14, 2015, within the Eastern District of Oklahoma, the defendant CLINTON JAMES JONES, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Sallisaw Police Department, the United States Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charge is in violation of Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Chris Wilson
JOSE LUIS FLORES-GARCIA, age 22, of Nuevo Laredo, Mexico
a/k/a CARLOS FERNANDOPossession of Firearm by Illegal Alien
The Indictment alleges that on or about February 18, 2015, within the Eastern District of Oklahoma, the defendant, JOSE LUIS FLORES-GARCIA, a/k/a Carlos Fernando, then being an alien illegally and unlawfully in the United States, did knowingly possess in and affecting commerce, a firearm, to-wit: one Lorcin 9mm semi-automatic handgun, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Oklahoma Highway Patrol and the United States Department of Homeland Security. The charge is in violation of Title 18, United States Code, Section 922(g)(5)(A), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
BILLY WADE VINCENT, age 55, of Poteau, Oklahoma
Felon in Possession of Firearm
The Indictment alleges that on or about December 10, 2014, within the Eastern District of Oklahoma, the defendant, BILLY WADE VINCENT, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, with an obliterated serial number, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Poteau Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charge is in violation of Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris.
Third Person Sentenced in A False Income Tax Refund SchemeRead the Press Release
COLUMBUS, OHIO – Suheidy A. Warner, 31, of Columbus, was sentenced to 18 months in prison for conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Warner was also ordered to pay more than $251,000 in restitution to the IRS. Approximately $63,000 of the restitution will be paid jointly with the co-conspirators in this case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, between February 2010 and June 2010 Warner abused her position of trust as a Chase Bank teller by cashing approximately 36 federal income tax refund checks she knew were fraudulently obtained. Warner was not given authorization by Chase Bank to cash these checks and was subsequently terminated.
The tax refund checks were given to Warner by a man who identified himself as Rafael Mota. Rafael Mota told her that the checks needed to be cashed for people that did not have identification, so they could cash the refund checks themselves.
The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York, New Jersey and other nearby states. The addresses contained on many of the income tax refund checks often shared the same street address, but different apartment numbers. This made it easier to collect the income tax refund checks from one location. The income tax refund checks were collected by corrupt postal workers, apartment superintendents, or other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The perpetrators then used couriers to travel to surrounding states, including to Columbus, Ohio, to cash the checks at various check-cashing service businesses, including San Isidro Cargo. The owners of San Isidro Cargo were Mercedes Emelinda-Silie and Jose Martinez.
Warner used various Chase Bank customer accounts to cash the income tax refund checks. Warner deposited the funds into two prearranged accounts. One account was that of a co-conspirator located in New Jersey. The second was the account of Alberto Rivera Falcon. Nineteen income tax refund checks totaling $126,108.30 were deposited into Falcon’s account. Seventeen income tax refund checks totaling $62,107 were deposited into the account of the co-conspirator located in New Jersey. Warner received approximately $200 to $300 per check.
Warner admitted to hand-carrying these U.S. Treasury checks to work at Chase Bank, using Falcon’s account to deposit them, withdrawing large sums of cash, and leaving the bank with the cash in her possession and providing the currency to other co-conspirators.
The income tax refund checks, and the believed stolen State of New Jersey tax refund checks, were the sole sources of deposits into both accounts. Warner received the income tax refund checks with the endorsed signature directly from Rafael Mota and Alberto Falcon. None of the income tax refund checks bore Warner’s name, Falcon’s name, Mota’s name or the New Jersey co-conspirator’s name.
The total tax loss associated with Warner’s involvement in this conspiracy is approximately $188,215.30, which represents the total of the 36 purported income tax refund checks that she helped to negotiate.
Warner returned to the United States and pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the IRS on December 9, 2014.
On April 4, 2014 Jose Luis Martinez, 48, of Columbus, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 60 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the IRS for his role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds and for operating an unlicensed money transmitting business.
On April 24, 2014 Mercedes Emelinda-Silie, 41, of Grove City, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 36 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the Internal Revenue Service (IRS) for her role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds.
Stewart commended the investigation by IRS-Criminal Investigation and the U.S. Postal Service, as well as Assistant United States Attorney Daniel Brown, who represented the United States in this case.
Schuylkill County Man Charged with the Illegal Possession of Unregistered MachinegunsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal charges against James Augustus Brauer, age 50, of Muir, Schuylkill County, Pennsylvania. A Criminal Information charged that on January 24, 2012, in Schuylkill County, Pennsylvania, Brauer illegally possessed (1) a fully functional unregistered machinegun, and (2) an unmarked and unregistered drop in auto sear—which is a specific part that makes a semi-automatic rifle fire fully automatic when placed into the weapon.
United States Attorney Peter J. Smith stated that the charge is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney John Gurganus is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a three year term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Portland Man Sentenced to Ten Years in Prison for Sex Trafficking of a MinorRead the Press Release
PORTLAND, Ore. – U.S. District Judge Michael H. Simon sentenced Isaiah Michael Simpson, 30, of Portland, Oregon, to 120 months in prison for sex trafficking of a minor. Simpson will be required to serve five years on supervision following his release from prison, and will be required to register as a sex offender. Simpson will serve his sentence concurrently with a 5-15 year sentence imposed in November 2014 in state court in Las Vegas, Nevada, for carrying a concealed firearm.
Simpson pled guilty in December 2014 to trafficking a minor for the purpose of prostitution for a one-week period in 2013. According to documents filed in the case, Simpson was also responsible for trafficking three adult women, including his wife, between 2009 and 2013. Simpson would demand that the women make more money from prostitution before they could stop working for the night, and told his wife in a text message to “stay on your money till you pass out exhausted.” The term “stay on your money” is known to law enforcement to mean “continue to engage in prostitution” to those in the prostitution industry.
“The commercial sexual exploitation of children violates federal sex trafficking laws, as does sex trafficking of adult women by force and coercion, and is a heinous offense,” stated Acting U. S. Attorney Billy J. Williams. “Anyone who traffics a child or uses coercion to compel prostitution in the District of Oregon will be prosecuted and face lengthy mandatory prison sentences.”
This case stemmed from a coordinated investigation by members of the FBI’s Child Exploitation Task Force, including the FBI and the Portland Police Bureau. The FBI’s Child Exploitation Task Force marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. The case was prosecuted by former Assistant U.S. Attorney Stacie Beckerman, who was recently appointed as a United States Magistrate Judge. Assistant U.S. Attorney Jane Shoemaker, Chief of the Violent Crimes Unit, handled the sentencing.
Pittsburgh Man Charged with February Robbery of First Commonwealth Bank in MunhallRead the Press Release
PITTSBURGH – A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney David J. Hickton announced today.
The one-count indictment named Brian Guiney, 42, as the sole defendant.
According to the indictment, on Feb. 7, 2015, Brian Guiney robbed the First Commonwealth Bank in Munhall, Pa.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Munhall Police Department, and the Allegheny County Sheriff’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Receipt of Child PornographyRead the Press Release
Tony Myers, 29, of Philadelphia, Pennsylvania, was charged by Indictment, unsealed yesterday, with two counts of receipt of child pornography and one count of possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 7, 2013, February 16, 2014 and April 2, 2014, Myers received and possessed images of child pornography.
If convicted the defendant faces a maximum possible sentence of fifty years in prison and a mandatory minimum sentence of five years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Lakeland Market Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
Tampa, Florida – United States District Judge Susan C. Bucklew today sentenced Randolph Goosby (53, Lakeland) to two years in federal prison for conspiracy to commit wire fraud, in connection with providing cash in return for food stamps. The Court also ordered Goosby to forfeit $4,312.35 seized from his business bank account, which was traceable to proceeds of the offense, and entered a money judgment in the amount of $782,291.65, the proceeds of the fraud. He pleaded guilty on January 8, 2015.
According to court documents, Goosby was the sole owner of 8th Street Supermarket in Lakeland, which accepted Electronic Benefit Transfer or “EBT” cards. EBT cards are used by individuals who participate in the Supplemental Nutrition Assistance Program (SNAP) to make food purchases. The 8th Street Supermarket was known as a place where SNAP participants could go to exchange EBT funds for cash, also known as “cash back.” This is specifically prohibited under the SNAP program. Goosby charged SNAP recipients 50 cents for every dollar that he provided as part of this illegal “cash back” scheme.
The 8th Street Supermarket did not use barcode scanners to aid in the checkout process, and there were no carts or baskets available for customers to carry purchases while inside the store. Rather, there was one cash register with a small counter. Most of the store’s interior space was either used for storing miscellaneous items or was unused. It was often closed during normal business hours and appeared to have virtually no legitimate food customers. Between November 2010 and July 2014, the 8th Street Supermarket conducted more than 11,000 SNAP EBT transactions totaling $964,390. From March 2011 to July 2014, it exceeded the average redemptions of the four closest SNAP-authorized convenience stores by $786,604.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, the Federal Bureau of Investigation, the Polk County Sheriff’s Office, and the Lakeland Police Department. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Mark Bini.
Northern Arapaho Woman Sentenced in New Mexico for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Tarasina Wallowingbull, 28, a member of the Northern Arapaho Tribe of Fort Washakie, Wyo., who currently resides in Albuquerque, N.M., was sentenced this morning to two years of probation for her child abuse conviction.
Wallowingbull was arrested on July 29, 2014, on a criminal complaint charging her with assault resulting in serious bodily injury. According to the criminal complaint, on June 11, 2014, Wallowingbull crashed her vehicle in San Felipe Pueblo in Sandoval County, N.M., while driving under the influence of alcohol. A young child was ejected from Wallowingbull’s vehicle during the single-vehicle crash and sustained serious injuries.
On Oct. 20, 2014, Wallowingbull pled guilty to a felony information charging her with abuse of a child in Indian County. In entering her guilty plea, Wallowingbull admitted placing a child under the age of 18 years in a situation that endangered the child’s life or health.
This case was investigated by the Southern Pueblos and Laguna Agencies of the BIA’s Office of Justice Services, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
North Platte Man Sentenced for Production of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Billy Joe Schrader, 32, formerly of North Platte, Nebraska, was sentenced today in Lincoln, Nebraska, to 30 years in prison by Senior United States District Judge Richard G. Kopf, for producing child pornography. After his release from prison Schrader will serve an additional 25 years under supervised release, and be required to register as a sex offender for the remainder of his life.
In November of 2013, one of the child victims in this case, (there were three), revealed to a therapist that he believed another child had been sexually assaulted by Schrader. The information was reported to the North Platte Police Department and a search warrant was obtained for Schrader's residence. At the time the search was performed, law enforcement officers seized computer equipment and other items. Schrader and a co-defendant were also interviewed at that time and both were subsequently arrested and lodged in jail. After a forensic examination of the equipment seized during the search warrant, over 75,000 images of child pornography produced by Schrader and his co-defendant were identified.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Platte Police Department and the Lincoln County Sheriff's Office and prosecuted jointly with the Nebraska Attorney General's Office.
Norfolk Woman Sentenced for Conspiring to Defraud the GovernmentRead the Press Release
Cashed over two million dollars in fraudulent income tax refund checks
NORFOLK, Va. – Tanya Evans, 34, of Norfolk, was sentenced today to 87 months in prison, followed by 3 years of supervised release for conspiracy to defraud the government with respect to claims. Evans was also ordered to pay $2,087,571.14 in restitution to the Internal Revenue Service.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigations, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.
Evans waived indictment and pled guilty to criminal information on December 30, 2014. According to court documents, she and a co-conspirator’s scheme was discovered in 2013 after a local check cashing business noticed that she had cashed over $2 million in U.S. Treasury checks. Evans indicated she was paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that she cashed 640 checks that totaled just over two million dollars in fraudulent income tax refunds.
This case was investigated by the Criminal Investigations Division of the Internal Revenue Service. Assistant United States Attorney Joseph L. Kosky is prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr174.
Nashville Man Sentenced to Federal Prison for Stealing Donations from Area ChurchesRead the Press Release
Kenneth James Stopkotte, 49, of Nashville, Tenn., was sentenced yesterday by Senior U.S. District Court Judge William J. Haynes to serve 45 months in prison, followed by three years of supervised release, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Stopkotte was also ordered to pay restitution to the victims in the amount of $169,978.86.
Stopkotte was indicted on March 6, 2014, on charges of bank larceny, access device fraud, money laundering and aggravated identity theft and pleaded guilty in September 2014 to one count of bank larceny, one count of access device fraud and one count of money laundering.
In his plea agreement, Stopkotte admitted that between August 27, 2012, and February 28, 2013, he stole approximately $181,608.52 in donation checks from the mailboxes of numerous churches in the Nashville area, which he deposited into accounts that he controlled at SunTrust Bank, First Tennessee Bank, Regions Bank, the Bank of Nashville and the Navy Federal Credit Union.
Additionally, Stopkotte admitted to transferring approximately $70,000 of the stolen funds from these various bank accounts to an account that he controlled at USAA Federal Savings Bank, then laundering approximately $48,000 of the money by nine wire transfers of varying amounts into an account titled Black Marlin Industries located at the Federal Bank of the Middle East in Nicosia, Cyprus.
Finally, Stopkotte admitted that he used a credit card that had been issued to another person to charge approximately $13,631.45 in payments and other things of value.
In determining Stopkotte’s sentence, Judge Haynes applied enhancements for the number of victims and the use of sophisticated means on the money laundering count. Judge Haynes ordered Stopkotte’s sentence to be served concurrently with a four year sentence that Stopkotte received in Williamson County, Tennessee, in a related case involving theft of checks from a church.
The investigation was conducted by the U.S. Secret Service, the Murfreesboro, Tenn. Police Department, the Franklin, Tenn. Police Department, the Brentwood Tenn. Police Department and the Madeira, Ohio Police Department. Assistant U.S. Attorney Sandra G. Moses represented the United States.
Myrtle Beach Attorney Pleads to Money LaunderingRead the Press Release
Contact Person: Bill Day (803) 929-3000
Evans previously pled guilty for his involvement in the Ponzi scheme related to this case and was sentenced to 7 years imprisonment. Weaver pled guilty to mail fraud and is waiting to be sentenced.
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Larkin Thaddeus Viers, age 36, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to money laundering, a violation of 18 U.S.C. § 1957. United States District Judge Brucie Howe Hendricks of Charleston accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Marlon Weaver was the president and owner of Weaver Company, Inc., a construction company which was located in Conway, SC. In 2008, the company was awarded a contract with the South Carolina Department of Transportation [SCDOT], to perform paving and asphalt operations on a road construction project on Interstate 95. Weaver Co. was required to supply a performance and payment bond and general indemnity agreement in order to work on the project. SafeCo Insurance Company of America sold, wrote and acted as a surety on the bond. SafeCo required that Marlon Weaver agree to reimburse them if SafeCo suffered any losses as a result of issuing bonds to the company. Weaver provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses to SafeCo. Reflected on this financial statement were Weaver’s investment in a company, Gold & Silver, LLC, and his one-fifth interest in Bucks Port Marina held by Weaver Five, LLC.
On November 20, 2009, the contractor for the SCDOT informed Weaver and SafeCo that it declared Weaver Co. in default of the contract under the bond resulting in SafeCo being required to pay approximately $6,000,000.00 to SCDOT. Weaver back-dated documents to make it appear that he had transferred his interest in the Gold and Silver, LLC and Bucks Port Marina to his daughters on September 1, 2009, prior to defaulting on the project. In fact, Weaver retained control of the assets at all times. Weaver mailed these back-dated, fraudulent documents to SafeCo’s attorney, who was representing the insurance company in a civil suit against Marlon Weaver and others. These documents were received by SafeCo on or about December 18, 2009.
Gold & Silver, LLC, was an investment business owned and operated by Archie Evans, which invested in the futures market. To make it appear that Weaver had transferred his investment in Gold & Silver to his daughter prior to SafeCo incurring losses, Evans agreed to back-date documents to reflect that Weaver’s investment was transferred to the daughter on September 1, 2009. These documents were also mailed to SafeCo’s attorney on April 26, 2010.
Weaver hired Thad Viers to represent him in the civil case filed against him by SafeCo. Weaver informed Viers that he was trying to hide his assets from SafeCo. On December 1, 2009, Weaver and Viers entered into a written legal fee/service contract which reflects a nonrefundable retainer fee of $500,000. Weaver gave Viers $500,000 in the form of two cashier’s checks, one in the amount of $490,000 and the other in the amount of $10,000. Only the $10,000 check was payment for the retainer fee. The $490,000 was money that Weaver was attempting to conceal from SafeCo. The source of the $500,000 was funds that Weaver had pulled out of Weaver Company to prevent SafeCo from getting it. Viers deposited the $490,000 cashier’s check into his operating account at Anderson Brothers Bank on December 4, 2009, then immediately wrote a check to Archie Evans Ministries for $400,000. The $400,000 was additional money that Weaver was secretly investing with Evans’ company, Gold & Silver. The difference of $90,000, Viers was to deposit into his campaign account. After earning approximately $30,000 in legal fees, Viers returned the remainder of the funds to Weaver.
On January 21, 2010, BEJ, LLC, was formed and incorporated to conceal the proceeds from the sale of Weaver’s interest in the marina he had previously pledged as collateral to SafeCo. The marina was sold in February 2010 and Weaver received approximately $501,000. Weaver laundered these funds through several bank accounts to include a First Citizens bank account set up in the name BEJ, LLC. Between May 18, 2010 and July 22, 2010, Weaver withdrew $400,000 from the BEJ, LLC. account of which approximately $375,000 was converted to cashier’s checks and cashed. This cash was given to Archie Evans in increments which Evans structured into his bank accounts in increments of less than $10,000.00, to avoid bank filings.
In January 2011, Viers set up a trust account at the First Citizens Bank, at Weaver’s request, and agreed to have funds wired or deposited into the account by Evans. Once the funds were credited to the account, Viers contacted the bank to authorize withdrawal of the funds by Weaver. Each withdrawal authorized by Viers was for $10,000 or more. Weaver withdrew the funds purchasing numerous cashier’s checks just under the $10,001 bank reporting requirement, ranging from $7,500 to $9,500. Weaver would then cash these cashier’s checks at various branches and give the currency back to Archie Evans, in increments of $25,000 to $50,000, so that Evans could structure deposits into his bank accounts. This cycle of banking activity was repeated numerous times. Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s First Citizen’s Trust account on behalf of Weaver which was sourced by Evans’ bank account. Of the amount credited, 375,000 was proceeds from the sale of the marina.
During the course of this conspiracy, Viers either knew the funds involved were proceeds of some criminal activity, or he was aware of a high probability the funds were the proceeds of some criminal activity and he deliberately avoided learning of the activity, i.e. he deliberately made himself blind to that fact. The funds involved were proceeds of criminal activity as Weaver committed mail fraud when he mailed SafeCo’s attorney back-dated documents concerning the sale of the marina and his investments with Gold & Silver.
Mr. Nettles stated the maximum penalty for money laundering is imprisonment for 10 years and/or a fine of $250,000. The case was investigated by agents of the Internal Revenue Service and the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case. #####Monroe County, Kentucky, Farmer Charged with Crop Insurance FraudRead the Press Release
LOUISVILLE, Ky. - A Monroe County, Kentucky farmer was charged in a federal Information today, with crop insurance fraud announced Acting U.S. Attorney John E. Kuhn, Jr.
According to the Information, Tracy E. Dillard, 45 of Fountain Run, Kentucky aided and abetted by others, knowingly made false statements and reports on applications for insurance. Dillard allegedly made false statements for the purpose of influencing the actions (insurance payments) of the Federal Crop Insurance Corporation and Producers Agriculture Insurance Company, a company insured by the Federal Crop Insurance Corporation.
The alleged violations occurred between August 26, 2010,and March 10, 2011, in the Western District of Kentucky, Allen County, Kentucky, and elsewhere.
If convicted at trial, Dillard faces no more than 30 years in prison, a fine of $1,000,000 and a five year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Department of Agriculture (USDA) Office of Inspector General (OIG).
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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.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EFREN FLORES-MELCHOR, age 40, a Mexican citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Jay C. Zainey sentenced FLORES-MELCHOR to five months imprisonment followed by one year of supervised release, and a $100 special assessment. Following his incarceration, FLORES-MELCHOR will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about November 7, 2014, St. Charles Parish deputies arrested FLORES-MELCHOR for Driving While Intoxicated. The deputies then contacted agents of the U.S. Immigration and Customs Enforcement, who discovered that FLORES-MELCHOR was a Mexican national who had been deported from the United States on three previous occasions. Agents also learned that FLORES-MELCHOR had amassed three DWI convictions while he was illegally present in the United States. ICE agents arrested FLORES-MELCHOR and placed an immigration hold on him.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Manhattan U.S. Attorney’s Office Closes Investigation into the Death of Danroy Henry, Jr.Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the evidence does not support pursuing federal criminal charges in connection with the fatal shooting of Danroy Henry, Jr. Mr. Henry, a student at Pace University, was killed during an encounter with police officers from the Pleasantville and Mount Pleasant Police Departments in the early morning of October 17, 2010. Federal prosecutors informed Mr. Henry’s parents of this decision earlier today.
Federal prosecutors thoroughly reviewed the evidence regarding the events that led to and immediately followed Mr. Henry’s shooting, in order to determine whether a prosecutable violation of the federal criminal civil rights laws had occurred. To prove a violation of the federal criminal civil rights statutes, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. This is one of the highest standards of intent imposed by law, and is different and higher than the intent standard under the relevant state statutes. Neither accident, mistake, fear, negligence nor bad judgment is sufficient to establish a willful federal criminal civil rights violation.
After conducting an exhaustive examination of all of the evidence, including consultation with experts, career federal prosecutors determined that the evidence does not establish the exacting standard of criminal intent required for a federal criminal civil rights prosecution.
The evidence reveals the following: At approximately 11:30 p.m. on the night of October 16, 2010, Mr. Henry drove himself and several friends to Finnegan’s Grill, located in the Thornwood Shopping Center in Thornwood, New York. Shortly after 1:00 a.m., a fight broke out among several bar patrons. Mr. Henry was not involved in this altercation. As a result of the fight, however, the owner of Finnegan’s Grill closed the establishment for the evening, ejected all of the patrons, and called the police. Police officers from both the Mount Pleasant and Pleasantville Police Departments responded to the scene. Mr. Henry departed the bar, retrieved his car from the parking lot, and pulled into a fire lane in front of Finnegan’s Grill while waiting for several friends. A Mount Pleasant police officer knocked on the window of Mr. Henry’s car, at which point Mr. Henry pulled out of the fire lane. The Mount Pleasant police officer shouted for Mr. Henry to stop. Mr. Henry proceeded to drive on the access road leading from the Thornwood Shopping Center. An officer with the Pleasantville Police Department stepped in front of Mr. Henry’s car. Although there are inconsistencies in the witness accounts regarding the chronology of certain subsequent events, the weight of the evidence indicates that Mr. Henry’s car was braking when it struck the Pleasantville officer, who wound up on the hood of the car, and that the Pleasantville officer then fired through the windshield into the car, wounding one of the passengers and killing Mr. Henry. A toxicology report from the state criminal investigation, which some parties have disputed, indicated that Mr. Henry had a blood alcohol level of .13 at the time of his death.
Several considerations have persuaded federal prosecutors that they cannot prove beyond a reasonable doubt that the Pleasantville police officer intentionally violated the civil rights of Mr. Henry. First, the incident happened within a matter of seconds, without any prior interaction or relationship between the Pleasantville officer and Mr. Henry that could lead a reasonable juror to believe that the officer had a motive to violate Mr. Henry’s civil rights. Second, a reasonable person considering the totality of the evidence would likely conclude that the car driven by Mr. Henry struck the officer and injured him before the officer fired his weapon. This resulted in the officer being positioned hazardously on the hood of a moving vehicle, requiring him to make a split-second decision under conditions of extreme danger, conditions under which the law generally allows latitude to a police officer’s judgment. Third, while portions of isolated testimony from certain of the witnesses at the scene might suggest that the Pleasantville officer acted with bad intent, there is not enough consistent, credible witness testimony to prove beyond a reasonable doubt that the officer acted with the requisite willfulness to deprive Mr. Henry of his constitutional rights. Finally, although racial animus need not be shown to establish a deprivation of rights under color of law, the evidence indicated that because of the darkness, the glare of the headlights and streetlamps, and the condensation on the windows, the Pleasantville officer would in all likelihood not have been able to see who the driver was or the driver’s race.
The Office also examined the evidence regarding the immediate aftermath of the shooting, and the failure of the officers on the scene, which was chaotic, to administer medical care to Mr. Henry as they waited for the EMT crews they had called for to arrive. Here, too, the Office could not conclude that the failure of the officers to provide immediate medical care under the circumstances amounted to a willful federal criminal civil rights violation.
The Office also considered whether there had been a criminal violation of the civil rights of Brandon Cox, who was injured by a bullet as he rode in the passenger side seat in Danroy Henry’s car. This injury arose out of the same exact facts that led to Mr. Henry’s shooting, and for the same reasons, the evidence does not support pursuing federal criminal charges in connection with the injury of Mr. Cox.
This Office analyzed these issues under the standard applicable to criminal cases, which is proof beyond a reasonable doubt. The Office expresses no view regarding any claims made against any party under the standard applicable to civil cases, which is proof by a preponderance of the evidence.
Accordingly, this Office’s investigation into Mr. Henry’s death has been closed.
Mr. Bharara expressed his deep sympathy to the family of Mr. Henry for their tragic loss.
Manager of Clothing Factory Indicted for Offering Bribe to Federal Labor Investigator in Exchange for Closing Wage InvestigationRead the Press Release
LOS ANGELES – A federal grand jury today indicted the general manager of a La Puente garment factory on charges of offering to pay bribes to an investigator with the United States Department of Labor in exchange for the investigator closing an investigation into wage violations.
Howard Quoc Trinh, 41, of Arcadia, the manager of Seven-Bros Enterprises, is accused in the indictment of bribery of a public official.
The indictment charges Trinh with offering to pay $10,000 in bribes to a Department of Labor Wage and Hour investigator.
The indictment also alleges that Trinh offered the bribe last month to secure the release of a hold known as a “Hot Goods” objection that had been placed on a shipment by the investigator.
As part of the bribery scheme, Trinh actually paid the investigator $3,000, according to a criminal complaint previously filed in this case.
According to the affidavit in support of that complaint, the investigator was investigating Seven-Bros for violating the Fair Labor Standards Act (FLSA), which sets standards for minimum wage and overtime pay. The Labor Department Wage and Hour investigator led a team that conducted an unannounced visit to Seven-Bros on March 10. The investigation into wage violations covered a period from May 2012 through March 10, 2015, and found that Seven-Bros owed approximately $100,000 to compensate employees for FLSA violations over that period. According to the affidavit, the investigator returned to Seven-Bros on March 18, at which time Trinh said he did not owe his employees any back wages and that he wanted to “take care” of the investigator.
In response to Trinh’s statements, the Labor Department’s Office of Investigator General (OIG) initiated an investigation and outfitted the investigator with recording equipment. On the evening of March 18, during a recorded meeting, Trinh allegedly offered the investigator $10,000 to close out the investigation without finding any violations and to life the Hot Goods objection.
The next day, during another recorded meeting, Trinh gave the investigator an initial payment of $3,000 in a manila envelope, according to the affidavit.
The criminal complaint was filed on March 20, and Trinh was arrested by OIG special agents. At his initial court appearance, Trinh was ordered released on a $200,000 bond and was ordered to appear for an arraignment on April 17.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If he is convicted of the bribery count in the indictment, Trinh would face a statutory maximum sentence of 15 years in federal prison.
The investigation in this case was conducted by the United States Department of Labor, Office of Investigator General, Office of Labor Racketeering and Fraud Investigations.
Release No. 15-032