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19 May 2015
Store Owners Plead Guilty to Selling Synthetic CannabinoidsRead the Press Release
CONCORD, N.H. – Mohamed Alam, 62, of North Andover, Massachusetts, and Murshed Salam, 47, of Salem, New Hampshire, each plead guilty in United States District Court for the District of New Hampshire to selling synthetic cannabinoids announced Acting United States Attorney Donald Feith. Alam and Salam were selling synthetic cannabinoids under the brand names “Crazy Monkey,” “Sexy Monkey,” “Family Monkey” and “Mad Monkey.” Synthetic cannabinoids are a mixture of a leafy substance that has been sprayed with chemical compounds similar to THC, the psychoactive ingredient found in marijuana. Users smoke the product. The chemical compounds used in the manufacture of these products are ever changing and pose a significant threat to public health.
On June 26, 2013, a federal search warrant was executed at a convenience store located at 4 Main Street, North Andover, Massachusetts owned by Alam. The agents seized approximately 100 packages of “Monkey” products. Alam told law enforcement that he knew his customers were smoking the product even though the product packaging included a warning that the product was not for human consumption. Alam identified Murshed Salam of Salem, New Hampshire as his supplier. Agents then went to the Global Gas Station located at 52 Lowell Road, Salem, New Hampshire owned by Salam and seized several hundred more packages of the Monkey products. Salam was also selling the products as well as supplying Alam with the products.
The products Alam and Salam sold were misbranded because they were sold as potpourri when in fact the product was intended for use as a drug for human consumption and the product labeling, in package form, failed to include the name and address of the manufacturer, packer, or distributor, did not bear adequate directions for use, and did not bear such adequate warnings against use.
“Synthetic cannabinoids present a significant threat to public health,” Acting United States Attorney Donald Feith stated. “This office has notified merchants and businesses about the illegality of selling these products and the dangers they pose to the public. We will continue to work with our local, state and federal partners to investigate and prosecute those businesses who continue to introduce these dangerous products into the stream of commerce.”
“Our school resource officers are educating students of these illicit drugs and their unknown ingredients that can cause traumatic overdose and other medical issues. We will continue to work tirelessly with our law enforcement and community partners in combating substances that harm our citizens,” stated Paul J. Gallagher, Chief of North Andover Police.
Alam and Salam each face a maximum sentence of one year imprisonment. Alam agreed to a money forfeiture of $18,737.00 and Salam agreed to a money forfeiture of $18,245.00. Alam is scheduled to be sentenced on July 30, 2015. Salam’s sentencing hearing is scheduled for . Both were released pending sentencing.
The case was investigated by the North Andover Police Department and the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
South Jersey Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, tax preparer today admitted her role in a conspiracy to prepare false and fraudulent income tax returns, U.S. Attorney Paul J. Fishman announced.
Grace Garrett, 63, of Pittsgrove, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging her with conspiring to aid and assist others in the preparation of false and fraudulent tax returns for the tax years 2007 through 2011.
Garrett was a tax preparer at Pender Tax Services in Rosenhayn, New Jersey, through which she and others committed crimes resulting in tax losses of more than $340,000.
According to documents filed in this case and statements made in court:
For the tax years 2007 through 2011, Garrett and a conspirator sought to generate increased referrals, enhance their business, and enrich themselves by preparing and filing income tax returns based on false information. They used a number of fraudulent practices, including falsely claiming a filer was a “head of household;” inventing and inflating deductions; creating fictitious dependents; and creating false credits for education and childcare.
Although taxpayers generally met with Garrett or the conspirator to provide information to prepare their tax returns, it was routinely the conspirator whose name appeared as preparer of the return. The bogus returns resulted in a tax loss to the government of more than $340,000.
The conspiracy charge to which Garrett pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 11, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley Esq., Camden
garrett_grace_information.pdf (304.81 KB)
Six Individuals Sentenced for Fraudlent Schemes Against the U.S. Department of Veterans AffairsRead the Press Release
GREENEVILLE, Tenn. - On May 18, 2015, six individuals who pleaded guilty to knowingly and willfully submitting a total of 464 false claims for travel to the U.S. Department of Veterans Affairs (VA) were sentenced to serve a total of 26 months in prison, four years of federal probation, 15 years of federal supervised release, 300 hours of community service, restitution of $24,581, and assessments of $600.
The six individuals sentenced include: William Anderson, 59, of Knoxville, Tenn.; Georgia Adkins, 40, of Johnson City, Tenn.; David Bell, 54, of Jonesborough, Tenn.; Frederick Deer, 52, of Johnson City, Tenn.; Elliott Harris, 51, of Knoxville, Tenn.; and Matthew Lewandowski, 26, of Johnson City, Tenn.
The VA provides travel assistance to qualified veterans who travel outside their communities to receive health care benefits. Individuals who abuse the benefit by submitting false information to the DVA diminish resources which could be available to qualified veterans.
“The costs of providing medical care for our veterans should never be increased due to false claims submitted by those who would defraud the federal government,” said United States Attorney Bill Killian. “These convictions are notice to those who would consider defrauding the Department of Veterans Affairs, that appropriate penalties await criminal conduct,” he added.
Monty Stokes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General (VA OIG), said, “We are committed to thoroughly investigating allegations of fraud against VA programs and resources to ensure veterans are afforded the legitimate benefits they have earned. These convictions reflect the successful cooperation and dedication of the VA OIG, VA Police, and the Department of Justice to bring frauds to justice.”
These indictments and subsequent convictions were the result of an investigation conducted by the Department of Veterans Affairs Office of Inspector General, Nashville Resident Agency, and VA Police Service of Mountain Home, Tenn. Assistant U.S. Attorneys Nicholas Regalia and Helen Smith represented the United States.
Sex Offender Sentenced to Prison for Violating Federal Registration and Notification LawRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LESTER JOY, 34, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 27 months of imprisonment, followed by five years of supervised release, for failing to register as a sex offender.
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to court documents and statements made in court, on October 25, 2002, JOY was convicted in the State of New Jersey of sexual assault in the second degree, endangering the welfare of a child in the third degree and theft in the third degree. For these offenses, he was sentenced to three years of imprisonment, lifetime community supervision and was subject to lifetime registration as a sex offender. On January 4, 2006, JOY was convicted in Suffolk County, New York, of three counts of rape in the third degree, two counts of criminal sexual acts in the third degree and two counts of disseminating indecent material to a minor. For these offenses, he was sentenced to a period of 42 to 84 months of incarceration and lifetime probation.
In 2013, prior to his release from prison, JOY was informed of his registration obligations under SORNA and he signed forms stating that he understood his sex offender registration requirements in both New York and New Jersey.
On November 30, 2013, JOY was released from the Morris County, New Jersey jail following service of a sentence for violation of his lifetime term of community supervision in New Jersey. However, he did not register as a sex offender in either New Jersey or New York, and moved to Connecticut. He failed to notify New Jersey, New York and Connecticut officials of his move to Connecticut, as required.
JOY has been detained since his arrest in New Haven on March 16, 2014. He pleaded guilty to the offense on February 23, 2015.
This matter was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Seven Minnesota Men Indicted for ConspiracyTo Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger and FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton today announced a superseding indictment charging seven Minnesota men with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL).1 An indictment filed on February 19, 2015, charging HAMZA NAJ AHMED, 21, has been superseded to add ZACHARIA YUSUF ABDURAHMAN, 19; ADNAN FARAH, 19; HANAD MUSTAFE MUSSE, 19; GULED ALI OMAR, 20; ABDIRAHMAN YASIN DAUD, 21; and MOHAMED ABDIHAMID FARAH, 21.
According to the indictment and documents filed in court, for at least the last ten months, the Minneapolis Division of the FBI has been conducting an investigation into a group of individuals who have tried to join – and in some cases succeeded in joining – overseas designated foreign terrorist organizations. At least nine Minnesotans have now been charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Among the co-conspirators are ABDULLAHI YUSUF and ABDI NUR, both of whom were originally charged by criminal complaint in November 2014.
The superseding indictment adds ABDURAHMAN, MUSSE, OMAR, DAUD, A. FARAH, and M. FARAH to the February 19, 2015, indictment charging AHMED with conspiracy to provide material support to a designated foreign terrorist organization. The superseding indictment also adds charges of attempt to provide material support to a designated foreign terrorist organization against OMAR, M. FARAH, ABDURAHMAN, MUSSE and DAUD.
According to the indictment and documents filed in court, M. FARAH is further charged with making a false statement during a terrorism investigation, because he lied to FBI agents about the circumstances surrounding his November 2014 bus trip to JFK Airport and subsequent scheduled departure to Europe.
According to the indictment and documents filed in court, AHMED and MUSSE are also charged with financial aid fraud. On November 8, 2014, both AHMED and MUSSE withdrew more than $1,000 in federal financial aid funds to purchase international airplane tickets from New York’s JFK Airport to destinations in Europe.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
Defendant Information:
HAMZA NAJ AHMED, 21
Savage, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• False statement, 1 count
• Financial aid fraud, 1 count
MOHAMED ABDIHAMID FARAH, 21
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts
• False statement, 1 count
HANAD MUSTAFE MUSSE, 19
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Financial aid fraud, 1 count
GULED ALI OMAR, 20
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
ZACHARIA YUSUF ABDURAHMAN, 19
Columbia Heights, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
ABDIRAHMAN YASIN DAUD, 21
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
ADNAN FARAH, 19
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
San Francisco Art Fraudster Convicted of Mail Fraud, Wire Fraud, Making False Declarations, Escape, and Contempt After Three Week Jury TrialRead the Press Release
SAN FRANCISCO- A federal jury convicted Luke D. Brugnara today of mail fraud, wire fraud, false declarations to a court, escape, and contempt of court, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David Johnson and U.S. Marshal Don O’Keefe.
Brugnara, 51, of San Francisco, was originally charged with fraud in a criminal complaint filed May 27, 2014. The criminal complaint described Brugnara’s refusal to pay for several pieces of art after he convinced a New York art dealer to ship the art to his California home. Brugnara was arrested on May 28, 2014, but then escaped from custody of his lawyer on February 5, 2015. He was apprehended six days later and stood trial for the fraud charges and the additional escape charge beginning April 27, 2015.
The jury found that Brugnara committed wire and mail fraud in connection with his agreement to purchase several works of art for a combined total of approximately $11,000,000 from a New York art dealer, Rose Long. The jury also found that defendant made false declarations to the court when he testified at a preliminary hearing in June 2014 that he had received a phone call from someone at Sotheby’s telling him that the artwork in question was fake. Further, the jury found that the defendant escaped from the San Francisco federal building on February 5, 2015, in contempt of the orders of the district court. Defendant was also acquitted of two counts of wire fraud and one count of making false declarations to a court. The guilty verdict followed a three week jury trial before the Honorable William Alsup, U.S. District Court Judge.
Evidence at trial showed that, in late March and early April 2014, Brugnara told Ms. Long that he would pay approximately $11 million for works of art by Willem de Kooning, Pablo Picasso, Joan Miró, George Luks, and Edgar Degas that were owned by Ms. Long and others. Based on his representations that he would pay for the artwork and put it in a museum, Ms. Long and the owners shipped the artwork to Brugnara at his house in the Sea Cliff neighborhood of San Francisco.
The evidence at trial demonstrated that the artwork was shipped to Brugnara’s residence and, on April 7, 2014, delivered in five wooden crates. When the artwork arrived, Brugnara refused to pay for it, return it, or inspect it, and told Ms. Long that she had given the artwork to him as a gift. Eventually, Ms. Long reported the crime to the FBI, which executed a search warrant at Brugnara’s residence in late May 2014. During the search, the FBI recovered only four of the five crates of artwork. The fifth crate, containing a “Little Dancer” sculpture by Edgar Degas, was never recovered.
After Brugnara was charged with fraud in connection with the art transaction, he testified before Judge Alsup in a preliminary hearing regarding his probation status. During that testimony, Brugnara explained that he had not paid for the artwork because he had received a phone call from someone at the art auction house Sotheby’s in the days before the delivery of the artwork. The evidence at trial demonstrated that such a phone call never happened.
On December 23, 2014, while Brunaga was in custody, Judge Alsup issued an order furloughing Brugnara to the custody of his lawyer in the federal building for the purpose of preparing for trial. The furlough was ordered “from 9 A.M. to 3 P.M. on any business day by reservation the previous business day.” On February 5, 2015, Brugnara violated the terms of this court order when he escaped from his lawyer’s custody at 450 Golden Gate Avenue in San Francisco, California. Brugnara was filmed sprinting away from the Federal Building. The evidence at trial established that he called a friend from a pay telephone and had her meet him with a car so that they could drive away from the area. After he absconded, Brugnara was a fugitive for six days. He was apprehended in Los Gatos, California, on February 11, 2015, as a result of a cooperative effort by the United States Marshals Service and the Federal Bureau of Investigation. He thereafter remained in custody throughout the trial.
Brugnara waived his right to counsel and conducted the trial as a pro se defendant with the assistance of two attorneys appointed as advisory counsel. Judge Alsup found Brugnara in summary contempt of numerous ordersand sentenced him to well over a year of imprisonment for his outbursts and obstructive conduct during trial, to be served consecutive to any sentence imposed for the underlying offenses.
Brugnara is being held in the custody of the U.S. Marshals Service pending sentencing. Brugnara’s sentencing hearing on the convictions is scheduled for September 8, 2015, before Judge Alsup, in San Francisco. The maximum statutory penalty for mail fraud, in violation of Title 18, United States Code, Section 1341, and wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, forfeiture, and restitution. The maximum statutory penalty for false declarations to a court, in violation of Title 18, United States Code, Section 1623, and escape, in violation of Title 18, United States Code, Section 751(a), is 5 years in prison, a fine of $250,000, forfeiture, and restitution. The penalty for contempt of court, in violation of Title 18, United States Code, Section 401(3), is at the discretion of the court. Any sentence following conviction, however, would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robin Harris and Benjamin Kingsley are prosecuting the case with the assistance of Mary Mallory, Denise Oki, Jessica Meegan, and Trina Khadoo. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Marshals Service.
Regional Controller of Massachusetts-Based Corporation Sentenced for Stealing over $1 Million from EmployerRead the Press Release
BOSTON – The regional controller of a multi-state corporation was sentenced in U.S. District Court in Worcester today in connection with a scheme to defraud over $1 million from his employer.
Michael Catlow, 51, of Seekonk, Mass., was sentenced by U.S. District Court Judge Timothy S. Hillman to 30 months in prison, three years of supervised release, and was ordered to pay $1,018,624 in restitution and forfeiture. In January 2015, Catlow pleaded guilty to four counts of mail fraud.
From 2004 until 2013, Catlow served as the regional controller for a large multi-state corporation based in Westborough, Mass. In that capacity, he was authorized to sign checks for its corporate accounts in amounts up to $10,000. From February 2008 through May 2013, Catlow used the authority granted to him by his employer to write checks upon, and make withdrawals from, the company’s accounts to pay his own personal expenses. These frauds paid for luxury box season tickets to the Patriots, travel, vacation homes, personal credit cards, and expenses for a business operated by Catlow’s former spouse.
When the fraud was discovered in May 2013, Catlow confessed, first to his employer, then in a video recorded confession to law enforcement officers. Over the course of five years and hundreds of fraudulent transactions, Catlow’s embezzlement netted him $1,018,612.
United States Attorney Carmen M. Ortiz; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; and Westborough Police Chief Al Gordon, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
Readout of Attorney General Lynch's Visit to Cincinnati, OhioRead the Press Release
Attorney General Loretta E. Lynch traveled to Cincinnati, Ohio, today for the first stop in her national Community Policing Tour to highlight collaborative programs and policing practices designed to advance public safety, strengthen police-community relations and foster mutual trust and respect. The Attorney General also announced that she will visit Birmingham, Alabama; Pittsburgh, Pennsylvania; East Haven, Connecticut; Seattle, Washington; and Richmond, California.
The Attorney General was joined by U.S. Attorney Carter M. Stewart for the Southern District of Ohio, Director Ron Davis for the Community Oriented Policing Services (COPS) Office, Mayor John Cranley for the city Cincinnati, and Cincinnati Police Chief Jeffrey Blackwell.
While in Cincinnati, the Attorney General met with youth and law enforcement at Chase Elementary School to witness firsthand the city’s Right to Read Program in which Cincinnati police officers work with University of Cincinnati students to mentor and tutor children. At Chase Elementary, the Attorney General played “Jeopardy” with the elementary school students. She, the Attorney General, was gratified to hear how the young students described police as peace keepers and protectors of the community. In her remarks to the students and local officers, the Attorney General said, “It’s tremendous what you’ve been doing,” to show how integral law enforcement can be in the lives of our communities. She also described the innovative approach in Cincinnati as a model for other departments to follow.
After visiting the school, the Attorney General spoke briefly to reporters and took a few questions about her interactions with the children and the importance of community policing.
“What I saw were children being engaged, children learning, children finding that learning can be fun, children learning about senses – about the world around them – at an age where, I think educators will tell you, it is really crucial that we not lose our children and they not fall out of the educational system and that they develop that love for learning,” Attorney General Lynch told reporters. “But I also saw children who were aware of the larger community around them and had a very good sense of what law enforcement does – law enforcement at its best because they are seeing law enforcement at best. So in their interactions in the future they will have that context into which to put them as well as law enforcement will have those interactions into which to put them.”
The Attorney General also visited the Cincinnati Police Department for a meet and greet with police officers. She commended the department’s efforts to reach out to the community, saying, “It's very easy for the cameras to show up when something's on fire, but we also want them to see the work that you're doing day in and day out.” She also thanked the officers on behalf of the Justice Department for the “hard work” they do every day and spoke to officers that were hired with COPS Office hiring grants. The Justice Department through its COPS Office yesterday announced five separate grant funding opportunities of up to $163 million for law enforcement agencies to help implement the recommendations made by the President’s Task Force on 21st Century Policing.
Following her meeting with police officers, the Attorney General ate lunch with U.S. Attorney Stewart, COPS Director Davis, and Cincinnati Police Chief Blackwell at local restaurant Skyline Chili.
Following a tour led by the curator of the National Underground Railroad Freedom Center, the Attorney General convened a meeting with city officials, law enforcement, local and faith leaders, young people and other members of the community to discuss ways in which the success Cincinnati has seen in building trust between law enforcement and the community can be replicated in cities across the nation.
“Every city deserves an outstanding, world-class police force that works alongside local residents to protect public safety,” said Attorney General Lynch. “And every officer deserves the tools, training, and support they need to do their jobs as safely and effectively as possible.” Her full remarks can be found here.
The Attorney General also visited with Department of Justice employees at the office of the U.S. Attorney for the Southern District of Ohio. Following that meeting, the Attorney General met with the family of John Crawford III, a 22-year African-American man, was shot and killed by a Beavercreek, Ohio police officer inside a Wal-Mart store while Crawford held a BB gun.
Pittsburgh Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH. - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 10 years imprisonment, followed by a lifetime supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on James Stover, 28, formerly of Pittsburgh, Pa.
According to information presented to the court, on or about Aug. 15, 2013, Stover knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for conducting the investigation that led to the successful prosecution of Stover.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia Man Indicted on Gun ChargeRead the Press Release
PHILADELPHIA – Daniel Shank, 39, of Philadelphia, was charged today by indictment with possession of a firearm and ammunition by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, up to lifetime supervised release, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department. It is being prosecuted by Special Assistant United States Attorney Jordan Strauss.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Robbing Metro PCS StoresRead the Press Release
PHILADELPHIA - Edwin Jimerson, 24, of Philadelphia, PA, was charged today by indictment with three robberies at Metro PCS stores in Philadelphia, in April of 2015, announced United States Attorney Zane David Memeger. Jimerson is charged with robbery which interfered with interstate commerce and brandishing, using and carrying a firearm during and in relation to a crime of violence. According to the indictment, on April 3, 2015, Jimerson robbed the Metro PCS at 6342 Rising Sun Avenue, of approximately $905; on April 6, 2015, Jimerson robbed the Metro PCS at 1414 Point Breeze Avenue, of approximately $1500; and on April 8, 2015, Jimerson robbed the Metro PCS at 7219 Frankford Avenue, of approximately $200.
If convicted of all charges, Jimerson defendant faces a mandatory minimum of sentenced of 57 years in prison up to life, up to five years of supervised release, a possible fine, a special assessment of $600, restitution, and forfeiture of the firearm and ammunition.
This case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney's Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Owner Sentenced for Conspiracy to Distribute Contraband Cigarettes, Health Care Fraud, and Receiving and Distributing Misbranded DrugsRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced the owner of Health Way Pharmacy, Salim Yusufov, age 43, of Reisterstown, Maryland, today to 12 months home confinement as part of four years’ probation, for a conspiracy to traffic over $6.6 million in contraband cigarettes, health care fraud, and receipt and delivery of misbranded drugs. Judge Quarles also ordered Yusufov to forfeit $200,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Distribution of unapproved foreign drugs presents a real danger to U.S. consumers especially barbiturates, which are potentially addictive prescription drugs," said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue our work to keep such illegal medicines out of the U.S. marketplace and help bring to justice those who would circumvent FDA requirements and place the public health at risk.”
According to his guilty plea, Salim Yusufov, conspired with his brother, Elmar Rakhamimov, and other family members and associates to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Rakhamimov, who was the leader and organizer of the scheme, purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area. Salim Yusufov received more than $81,000 in kickbacks for brokering the first nine of the contraband cigarette transactions with the undercover FBI agent. These transactions included thousands of cartons of contraband cigarettes. The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $5.85 per package of cigarettes ($58.50 per carton of cigarettes). The total tax evaded was more than $1 million.
Salim Yusufov also admitted that he illegally provided unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. Corvalol, also referred to Corvalolum, and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. According to his plea agreement, from July 23, 2010 through July 14, 2011, Yusufov, who is not a licensed pharmacist, imported and distributed Valocordin, dispensing the drug without a prescription.
In addition, Yusufov admitted to defrauding Medicare and Medicaid by causing Health Way Pharmacy to bill for prescriptions and/or prescription refills that the pharmacy did not provide to customers. One of the ways Yusufov did this was by intentionally failing to reverse claims for payment submitted to Medicare when customers did not pick up or otherwise receive refills. A second way that Yusufov defrauded Medicare and Medicaid was by providing drugs other than those prescribed, while still invoicing Medicare or Medicaid for the prescribed medication.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and seven other co-conspirators have been convicted for their roles in the scheme and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
New Jersey man sentenced to 12 years for drug traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Lee Cordero, 32, of Vineland, New Jersey, was sentenced to 151 months in prison for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Cordero was engaged in a scheme to procure oxycodone from sources in Detroit, New Jersey, and Florida for redistribution in the Northern District of West Virginia. Specifically, Cordero sold oxycodone in Randolph County in October 2014. He pled guilty in February 2015 to one count of “Distribution of Oxycodone,”
Additionally, Arthur Pritt, 38, of Archer, Florida, was sentenced to 24 months in prison for marijuana trafficking. From December 2008 through December 2014, he repeatedly obtained marijuana from sources in California and Pennsylvania. He then arranged for the drugs to be transported across state lines into Randolph County, West Virginia for redistribution and sale. He pled guilty in February 2015 to one count of “Conspiracy to Distribute Marijuana.”
Assistant U.S. Attorney Stephen Warner prosecuted the cases on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force, the United States Forest Service, the West Virginia State Police, the Randolph and Upshur County Sheriff's Offices, the U.S. Drug Enforcement Administration, the U.S. Internal Revenue Service, the Harrison County Sheriff's Department, and the U.S. Postal Service investigated.
U.S. District Judge John Preston Bailey presided.
Nebraska LECC Criminal Justice ConferenceRead the Press Release
The 28th Annual Nebraska Law Enforcement Coordinating Committee (LECC) Criminal Justice and County Attorney’s Conference is being held in Kearney, Nebraska May 20-22, 2015 with more than 300 local, state, and federal law enforcement officials and prosecutors attending.
The conference is designed to bring training to law enforcement officials and prosecutors in the latest topics impacting the criminal justice system. The conference is annually hosted by the United States Attorney's Office, Nebraska County Attorneys Association and the Nebraska Sheriffs Association.
This year’s topics include:
• Marijuana Legalization – The Consequences of Legalized Marijuana
• Nikko Jenkins Murder Spree Trilogy - Case Presentation and Study
• Winning Strategies for Prosecutors and Law Enforcement from Investigation to Trial
• Asset Forfeiture Changes on the Federal Level
• Supreme Court and Legislative updates
• State-Wide Child Advocacy Centers
• Juvenile Diversion Programs and Juvenile LegislationAwards will be presented during the Thursday evening (May 20th) banquet by United States Attorney Deborah R. Gilg, to criminal justice officials for their outstanding contributions to the criminal justice system and their communities.
Mobile County Man Sentenced to 30 Months for Illegal Possession of FirearmsRead the Press Release
The United States Attorney Kenyen R. Brown announces that Aaron Hill, a 20 year old, resident of Mobile, was sentenced today to 30 months incarceration followed by three years of supervised release for possession of a 20 gauge shotgun and a 9mm pistol after being convicted of a felony, Robbery 1st Degree
On February, 2015, Mr. Hill pled guilty to being a felon in possession of a firearm after an investigation revealed that a search of his residence was conducted pursuant to that terms of supervised release and the two firearms were uncovered.
Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 120 Months for Role in Methamphetamine Conspiracy and Possession of Firearms in Furtherance of Drug Trafficking CrimeRead the Press Release
The United States Attorney Kenyen R. Brown announces that Phouva Phothisat, a 28 year old, Irvington resident, was sentenced today to 120 months incarceration for possession of numerous firearms kept for protection and for his role as a drug dealer in a methamphetamine conspiracy where more than 100 grams of methamphetamine was seized.
On October 27, 2014, Mr. Phothisat pled guilty to Counts One and Ten of a 12 count indictment. Counts One and Ten charged him with conspiring to possess with intent to distribute methamphetamine and possession of numerous firearms during and in relation to his drug dealing crime, respectively.
Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives along with special agents of the Department of Homeland Security investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney Gina S. Vann.
Mobile County Man Sentenced to 108 Months for Role in Methamphetamine Conspiracy and Illegal Possession of A FirearmRead the Press Release
The United States Attorney Kenyen R. Brown announces that Sisavang Phothisat, a 39 year old, Theodore resident, was sentenced today to 108 months incarceration for possession of a Taurus revolver after being convicted of attempted murder in Fresno County, California and for his role as a drug dealer in a methamphetamine conspiracy where more than 100 grams of methamphetamine was seized.
On October 30, 2014, Mr. Phothisat pled guilty to Counts One and Eight of a 12 count indictment. Counts One and Eight charged him with conspiring to possess with intent to distribute methamphetamine and being a felon in possession of a firearm, respectively.
Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives along with special agents of the Department of Homeland Security investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney Gina S. Vann.
Methamphetamine Traffickers Sentenced to 23 Years and 17 Years in PrisonRead the Press Release
SAN JOSE – Salvador Espinoza-Patino and Alejandro Espinoza Del Toro were sentenced to 23 and 17 years in prison, respectively, for conspiracy to possess with intent to distribute and to distribute methamphetamine, conspiracy to commit money laundering, and distribution of methamphetamine, announced United States Attorney Melinda Haag and Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano.
Espinoza-Patino, 32, of Fremont, Calif, was indicted by a federal grand jury on February 28, 2013, for one count of conspiring to possess with the intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. § 846; two counts of conspiring to commit money laundering, in violation of 18 U.S.C. § 1956(h) and §1956(a)(2)(b)(i), and two counts of distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1). On October 27, 2014, Espinoza-Patino pleaded guilty without a plea agreement to all the charges alleged against him in the indictment.
Del Toro, (a/k/a “Marco Antonio Ortuno Del Toro”), 24, of Los Banos, Calif., was also indicted by a federal grand jury on February 28, 2013. He was charged in the indictment with one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1); one count of conspiracy to commit money laundering in violation of 18 U.S.C. § 1956(h) and 18 U.S.C. § 1956(a)(2)(B)(i); and one count of distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1). On December 5, 2014, he pleaded guilty to all the charges alleged against him in the indictment.
According to government filings, the investigation established that Espinoza-Patino was a leader within a drug trafficking organization that was involved in large scale methamphetamine trafficking. On November 30, 2012, agents executed search warrants at a number of locations. The bulk of the methamphetamine was seized from two stash houses that Espinoza-Patino and Del Toro maintained. Specifically, when agents executed a search warrant at the stash house located at 2219 Raquet Club Drive in Los Banos, agents seized approximately 554 pounds (259 kilograms) of methamphetamine, two firearms, and a vehicle that had a hidden compartment. Likewise, when agents executed a search warrant at the stash house located at 441 North Santa Venetia in Los Banos, agents seized approximately 104 pounds (47 kilograms) of methamphetamine, and a vehicle that had a hidden compartment.
The sentences of Espinoza-Patino and Del Toro were handed down by the Honorable Lucy H. Koh, U.S. District Judge. Judge Koh also sentenced both Espinoza-Patino and Del Toro to a 5-year period of supervised release. The defendants have been in federal custody since November 30, 2012.Assistant U.S. Attorneys Richard Cheng and Chinhayi Cadet are prosecuting the case. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Methamphetamine Distribution Conspirators SentencedRead the Press Release
EUGENE, Ore. – Raymundo Felix-Rodriguez, 42, of Lane County, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to serve 97 months in prison for conspiracy to distribute 50 grams or more of methamphetamine. Following his release from prison, Felix-Rodriguez will be on supervised release for five years. On December 18, 2014, co-conspirator Samuel Sanchez-Campa was sentenced to 57 months in prison, and on September 4, 2014, co-conspirator Angela Luna-Guillen was sentenced to 24 months in prison.
A long-term investigation by the DEA revealed that Felix-Rodriguez sold methamphetamine to Sanchez-Campa and others, who then resold the methamphetamine. Luna-Guillen facilitated the conspiracy by storing methamphetamine and transferring drug proceeds. In 2011, a DEA undercover agent purchased methamphetamine from Felix-Rodriguez on multiple occasions, and ultimately determined that Felix-Rodriguez bought methamphetamine in California and drove it back to Oregon.
On January 8, 2012, Felix-Rodriguez was driving to Oregon when he was stopped in Redding, California. The vehicle was searched and approximately three pounds of methamphetamine were located, leading to his arrest. Sanchez-Campa and Luna-Guillen were later charged and arrested.
This case was investigated by the Eugene Resident Office of the DEA. Assistant U.S. Attorneys Jeffrey Sweet and Amy Potter prosecuted the case.
Michael Nash Sentenced to 72 Months ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Michael Nash, 40, of Gary, Indiana was sentenced today for conspiracy to defraud the United States in respect to filing false federal tax returns claims and aggravated identity theft.
Nash was sentenced to 6 years (72 months) imprisonment, 3 years of supervised release and ordered to pay $739,305.00 in restitution.
According to documents filed in this case, Nash filed almost 200 false tax returns for the year 2009 by claiming a larger earned income credit for his clients. This caused the IRS to issue larger refunds than should have been paid. Nash then prepared 87 tax returns for the year 2008 using many of his clients’ personal information without their knowledge. Nash defrauded the IRS in the total amount of $739,305.00.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant United States Attorney Gary T. Bell.
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Logan County man pleads guilty to mailing threatening lettersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Kelly Gerald Crosby, 32, from Logan County, West Virginia, pleaded guilty in federal court in Charleston to mailing threatening communications. On September 8, 2014, Crosby was incarcerated at the Southwestern Regional Jail on a state charge related to using minors to film sexually explicit conduct. While incarcerated, Crosby mailed a letter delivered to the Logan County Courthouse, in which Crosby made threats to workers, public officials and others in the Logan County area. The letter included threats to “kill, rape and make suffer” the individuals he identified in the letter.
Crosby faces up to 5 years in federal prison. He is scheduled to be sentenced on August 19, 2015.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
The investigation is being conducted by the United States Postal Inspection Service, United States Secret Service, and Logan County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
Jury Recommends Death Sentence for Boston Marathon BomberRead the Press Release
Boston – After deliberating for 14 hours over three days, a federal jury in Boston recommended that Dzhokhar A. Tsarnaev be sentenced to death on Friday, May 15, 2015, for his role in using weapons of mass destruction at the 2013 Boston Marathon. By law, the judge must follow the jury’s recommendation and sentence Tsarnaev to death. A sentencing date has not yet been set.
The jury recommended that Tsarnaev, 21, a U.S. citizen formerly residing in Cambridge, Mass., be sentenced to death on six of the seventeen capital counts in the indictment. On April 8, 2015, the same jury convicted Tsarnaev on all 30 counts of the indictment, which charged him with use of a weapon of mass destruction resulting in death and conspiracy; bombing of a place of public use resulting in death and conspiracy; malicious destruction of property resulting in death and conspiracy; use of a firearm during and in relation to a crime of violence; use of a firearm during and in relation to a crime of violence causing death; carjacking resulting in serious bodily injury; interference with commerce by threats or violence; and aiding and abetting. The counts on which the jury recommended a death sentence all relate to the pressure cooker bomb Tsarnaev planted and detonated in front of the Forum restaurant, killing Lingzi Lu and Martin Richard.
Beginning no later than February 2013, Tsarnaev and his brother, Tamerlan Tsarnaev, conspired to detonate improvised explosive devices (IEDs), bomb places of public use, and destroy property. On April 15, 2013, during the 117th running of the Boston Marathon, the brothers placed two pressure cooker bombs filled with shrapnel among the crowds of spectators on Boylston Street and then detonated the bombs seconds apart, killing three people, maiming 17, and injuring hundreds more. The brothers fled the scene in the chaos of the destruction. Three days later, on April 18, Tsarnaev and his brother, armed with five IEDs and a Ruger semiautomatic pistol that Tsarnaev had borrowed from a friend, drove to the MIT campus where they shot and killed MIT Police Officer Sean Collier and attempted to steal his service weapon. Approximately 20 minutes later, they carjacked a Mercedes SUV, kidnapped the driver, and forced him to drive to a gas station, robbing him of $800 along the way. After the driver managed to escape, the brothers drove to Laurel Street and Dexter Avenue in Watertown, where they exploded additional IEDs and engaged in a firefight with Watertown police officers. During the stand-off, Tsarnaev drove the carjacked vehicle at three officers, attempting to kill them, and ran over his brother as he escaped. Tsarnaev hid in a winterized boat in a Watertown backyard until his apprehension and arrest the following night. His brother died at the scene.
United States Attorney Carmen M. Ortiz; John Carlin, Assistant Attorney General of the Justice Department’s National Security Division; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement.
This investigation was conducted by the FBI’s Boston Division, Boston Police Department, Massachusetts State Police, Department of Justice’s National Security Division, and member agencies of the Boston Joint Terrorism Task Force, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, U.S. Marshals Service, Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the MIT Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case is being prosecuted by Assistant U.S. Attorneys William Weinreb, Aloke Chakravarty, and Nadine Pellegrini of the U.S. Attorney’s Office for the District of Massachusetts's Anti-Terrorism and National Security Unit, and Trial Attorney Steve Mellin of the Justice Department’s Capital Case Section. Vital assistance was also provided by attorneys from the National Security Division’s Counterterrorism Section and the Criminal Division’s Capital Case Section.
Jury Finds Defendant Guilty in $11.25 Million Investor Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal jury found Troy Stratos, 49, formerly of Los Angeles, guilty today of four counts of wire fraud and two counts of money laundering, in a scheme to defraud, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, beginning in December 2010 and continuing through February 2012, Stratos engaged in a scheme to defraud a financial manager in Pennsylvania of approximately $11,250,000. Tim Burns was in the market to buy Facebook stock, pre-IPO (initial public offering), for some of his clients in 2011. Stratos, who used the alias “Ken Dennis,” because his own name had numerous negative postings on the Internet, told Burns that he represented Carlos Slim, one of the wealthiest individuals in the world. Stratos claimed that Carlos Slim was in the process of purchasing a large block of Facebook shares, and Stratos offered to sell to Burns favorably priced Facebook shares that were in excess of what Carlos Slim was purchasing. Stratos also claimed to be connected with insiders at Facebook, including Mark Zuckerberg, and Facebook’s CFO. Stratos promised increasingly larger amounts of Facebook stock starting at approximately two million shares and up to 40 million shares. Based on the representations by Stratos, Burns sent three wire transfers totaling $11,250,000 to purchase the Facebook stock. The first wire transfer was sent to the client-trust account at Venable LLP, which was the law firm that Stratos had retained. The subsequent wire transfers were sent to bank accounts that Stratos controlled.
Throughout the scheme, Stratos assured Burns that the deal would close at any moment, often promising that the “papers” were about to be signed. Alternatively, Stratos offered to refund to Burns his deposit, even within a few days, but warned Burns that he would regret missing the opportunity to make money.
On December 20, 2011, the Federal Bureau of Investigation arrested Stratos in Los Angeles for a separate fraud scheme. Stratos, through text messages and a telephone call, continued to tell Burns that the deal was real and that he could refund Burns’s money. By this time, Stratos had spent nearly all of the $11.25 million.
The maximum statutory penalty for mail and wire fraud is 20 years in prison and a fine of up to twice the gain or loss from the fraud. The maximum statutory penalty for money laundering is 10 years in prison and a $10,000 fine or twice the value of the criminally derived property. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stratos is scheduled for trial for a separate scheme on October 5, 2015. According to the charges relating to the separate scheme, Stratos allegedly defrauded a woman of at least $7 million by convincing her that he would manage the proceeds of her divorce by investing them overseas where they would earn a high rate of return. These remaining charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Todd Pickles and Jared Dolan are prosecuting the case.
Indianapolis man charged in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today an Indianapolis man was charged with mail fraud in a scheme where over $1 million was stolen from a local business. Ryan M. King, 43, Indianapolis, was charged by an Information today with wire fraud in an investigation conducted by the Federal Bureau of Investigation.
“Financial crimes affect us all,” said Minkler. “They remove billions of dollars from investors and often negatively impact our economy. Mr. King will no longer be lining his pocket with others people’s money.”
King was employed as an accounting manager with the Carrier Corporation, a subsidiary of United Technologies Corporation (UTC). The Carrier Company operates its offices on West Morris Street in Indianapolis. From February 2013, through February 2015, King was entrusted to oversee UTC’s financial transactions including cost accounting, payroll and financial statements. In June 2013, King opened an unauthorized personal checking account in the name of “Carrier Services” at Bank One.
King communicated with several UTC vendors using his business email account, instructing them to write checks for outstanding invoices to Carrier Services. King would then deposit the checks into his personal account making the vendor think their payment was going to UTC. He further communicated with other vendors by sending inflated invoices through facsimile transmissions instructing them to wire transfer payment directly into the Carrier Services account. The government alleges that in total, the scheme defrauded victim companies of over $1,095,000.
W. Jay Abbott, Special Agent in Charge, stated, “The FBI will aggressively pursue those who commit financial fraud. It is a priority to the Bureau to protect the American public from these types of crimes. Those who contemplate conducting such criminal activity should know it will be vigorously investigated by the FBI.”
According to Assistant United States Attorney Cynthia J. Ridgeway, who is prosecuting this case for the government, King faces up to 20 years if convicted.
An Information is only a charge. All defendants are presumed innocent until proven guilty in federal court.
Independence Man Sentenced to 60 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for using a child victim to produce child pornography.
Morgan Littleton, 33, of Independence, was sentenced by U.S. District Judge Gary A. Fenner to 60 years in federal prison without parole, which is the maximum statutory penalty. The court also ordered Littleton to pay $5,350 in restitution to his victim.
On Jan. 5, 2015, Littleton pleaded guilty to two counts of using a 12-year-old victim to produce child pornography on two separate occasions in January 2013.
On April 29, 2013, an Independence police officer responded to a call related to a domestic assault. The officer contacted a woman who told him Littleton had grabbed and squeezed her throat, slammed her against the wall, and slapped her three times in the face because there was no sugar for his coffee. She also told the officer that several hours before the assault she had accidentally discovered evidence that Littleton was having a sexual relationship with a 12-year-old female, identified as Jane Doe.
The woman reported that she found several SD memory cards in a black canvas bag that belonged to Littleton. One of the cards contained a video of Littleton engaged in illicit sexual activity with the child victim. She did not report this immediately because Littleton did not allow her to use the phone or leave the residence. After the domestic assault, she convinced Littleton to allow her to walk to the store for more sugar. He agreed to let her go and she took Jane Doe with her to a convenience store. Once at the store she asked the store manager to contact the police.
Police officers executed a search warrant at Littleton’s residence, where he resided with three adult women, who referred to him as “Master,” in a polygamous BDSM relationship, as well as with Jane Doe and another minor female. Officers seized computers, cameras and digital media. They found 12 video segments on a memory card, some of which appeared to have been filmed in a hotel room between Jan. 18 and March 25, 2013. The videos depicted Littleton engaging in illicit sexual activity with Jane Doe.
In a forensic interview, the child victim reported that Littleton had been molesting her once or twice a week since November 2012. He sometimes promised her food if, or would not allow her to see her friends unless, she engaged in illicit sexual activity.
Littleton has been charged in Jackson County Circuit Court with four counts of deviate sexual intercourse with a person less than 14 years old, two counts of sexual exploitation of a minor and four counts of domestic assault.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Illinois Man Sentenced to Ten Years for Weapons OffenseRead the Press Release
A felon who possessed a firearm and ammunition was sentenced May 14, 2015 to ten years in federal prison.
Blake Maurer, age 24, of Freeport, Illinois, received the sentence after a February 6, 2015 guilty plea to one count of possession of a firearm and ammunition by a felon. At the guilty plea hearing, Maurer admitted that, on August 24, 2014, in Dubuque, Iowa, he possessed a firearm and ammunition. Maurer also admitted he was a convicted felon.
Maurer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Maurer was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a three-year term of supervised release.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-1021.
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Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A woman who distributed heroin from her Huntington apartment pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Patricia Lynn Petrie, 51, entered a guilty plea in federal court in Huntington to maintaining a residence for the purpose of distributing heroin.
In August of 2012, agents with the Huntington FBI Drug Task Force observed Petrie on multiple occasions engaging in what appeared to be drug deals near her apartment at 1112 9th Street, Apartment 4 in Huntington. Agents stopped Petrie outside her apartment on August 23, 2012 and recovered a small quantity of heroin. Agents subsequently searched her apartment and recovered 33 individually wrapped bags of heroin. Petrie admitted as part of her plea that she intended to distribute the heroin seized by the task force agents.
Petrie faces up to 20 years in federal prison, and is scheduled to be sentenced on August 17, 2015.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Hampton Man Pleads Guilty to Receiving Child Pornography and Obstructing JusticeRead the Press Release
NEWPORT NEWS, Va. – Edward David Herbert, III, 34, of Hampton, Virginia, pleaded guilty today to charges of Receiving Child Pornography and Obstruction of Justice - Concealing Evidence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by District Court Judge Arenda Wright Allen.
Herbert, III, was indicted by a federal grand jury on March 9, 2015, in an eleven count indictment. Herbert faces a maximum penalty of 40 years in prison when sentenced. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, agents were able to determine that someone using a particular internet protocol address was sharing files. That online activity was then linked to Herbert’s residence. Agents executed a search warrant on Herbert’s home in Hampton, Virginia on December 4, 2014. However, Herbert had just moved to the Richmond, Virginia area and had taken his computer equipment with him. Herbert’s wife, still at the home in Hampton gave the agents written consent to search the new residence in the Richmond area. The agents travelled to his new address and found that his computer equipment was no longer in the residence. Herbert had been alerted to the fact that the FBI was searching for his computer and gave his computer to a relative to hide. In January 2015, that relative and their attorney turned the computer over to the FBI. The hard drive contained more than 14,000 images of child pornography
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Lisa R. McKeel is prosecuting 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. 4:14cr68.
###Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Fraud Conspiracies at Public Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges against Eric Hulsman were filed on March 27, 2015, in the U.S. District Court of the Northern District of Georgia in Atlanta. According to court documents, from at least as early March 6, 2007, and continuing at least until Dec. 6, 2011, in Fulton County, Georgia, and from at least as early as Jan. 2, 2007, and continuing at least until Jan. 1, 2008, in DeKalb County, Georgia, Hulsman conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions. Hulsman was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Fulton and DeKalb properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Homeowners and lenders in Fulton and DeKalb counties deserved free and fair public real estate foreclosure auctions,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “The defendant conspired with others to keep for themselves money that should have gone to those homeowners and lenders. The division remains committed to rooting out this kind of anticompetitive conduct at foreclosure auctions.”
The primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Fulton and DeKalb county public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“Today’s guilty plea of another real estate investor engaged in unfair bidding practices is further evidence of the FBI’s support for the U.S. Department of Justice’s Antitrust Division in ensuring that public foreclosure auctions remain a level playing field for all,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “Anyone with information regarding such criminal activities as seen in this case should promptly call their nearest FBI field office.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine in an amount equal to the greatest of $250,000, twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
Including Hulsman, eight cases have been filed as a result of the ongoing investigation being conducted by Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Georgia Man Sentenced in Securities Fraud SchemeRead the Press Release
CINCINNATI, Ohio - Charles H. Sheehan III a/k/a “Duke Sheehan,” 69, of Cumming, Georgia was sentenced to 36 months in prison for his role in a securities fraud scheme, in which a Cincinnati company lost $1 million in investment funds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down by Judge Timothy S. Black.
According to court documents, Sheehan represented himself to be the President and CEO of a purported charity called the Southern Foundation for the Advancement of Arts and Education, Inc., based in Georgia. Sheehan promised a Cincinnati-based real estate development group that he would invest $1 million from the group along with funds from the Southern Foundation in a series of purported investments. However, rather than investing the $1 million that had been wired to the defendant, Sheehan distributed the funds to himself and others.
Sheehan pleaded guilty in November 2014 to defrauding investors with respect to the Southern Foundation and the use of the investor funds. He was ordered to pay restitution in the amount of $1 million.
U.S. Attorney Stewart commended the investigation by the FBI, as well as Assistant United States Attorney Timothy Mangan, who represented the United States in this case.
Gates, N.Y., Man Sentenced to 69 Months in Prison for Four Bank RobberiesRead the Press Release
ERIE, Pa. - A former resident of Gates, New York, has been sentenced in federal court to 69 months in jail and ordered to make restitution of $16,370 on his convictions for bank robbery, United States Attorney David J. Hickton announced today.
United States District Judge Elizabeth A.Wolford of the Western District of New York imposed the sentence on Christopher Mancuso, 43.
According to information presented to the court, on Nov. 6, 2012, Mancuso robbed $10,060 from the M&T Bank at 1282 Long Pond Road, Greece, New York. On Dec. 18, 2013, Mancuso robbed $3,200 from the Chase Bank, located at 3917 Lake Avenue, Rochester, New York. On Jan. 17, 2014, Mancuso acted as the getaway driver during a robbery of Chase Bank, located at 2900 Dewey Avenue, Rochester, New York. Finally, on Jan. 31, 2014, Mancuso again acted as the getaway driver during a robbery at First Niagara Bank located at 12 Spencerport Road, Rochester, New York.
Prior to imposing sentence, Judge Wolfrod noted that Mancuso was on parole during each of the four bank robberies. Judge Wolford also took into account Mancuso’s lengthy criminal history dating back to his teenage years.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge Brian P. Boetig, the Gates Police Department, under the direction of Chief James VanBrederode, the Greece Police Department, under the direction of Chief Patrick Phelan, and the Rochester Police Department, under the direction Chief Michael Ciminelli for the investigation leading to the successful prosecution of Mancuso.
Former Worcester Day Care Provider Pleads Guilty to Lying in Connection to Investigation into Son’s Contact with Children in her CareRead the Press Release
BOSTON – A Worcester woman pleaded guilty yesterday in U.S. District Court in Worcester to making false statements to federal agents investigating federal child exploitation offenses.
Donna Bellanger, 49, pleaded guilty to making materially false, fictitious, or fraudulent statements or representations to federal agents.
On Feb. 7, 2014, Bellanger was interviewed by federal agents in connection with the arrest of her son, Brian Bellanger, on federal charges that he had, through online communications, enticed a minor to produce child pornography. Specifically, during the course of the execution of a federal search warrant, which uncovered evidence of her son’s crimes, federal agents interviewed Donna Bellanger about her knowledge of her son’s prior sexual assaults against children and whether her son had been allowed unsupervised contact with the children attending her in-home day care center.
In response to questions concerning prior allegations of sexual assault, Donna Bellanger truthfully informed agents that the in-home day care business had closed in June 2012 after allegations had arisen that her son had sexually assaulted a child attending the day care. Donna Bellanger failed to disclose to agents, however, that Brian had sexually assaulted a six-year-old neighbor in 2005. Further investigation revealed that Donna was well aware of that incident, that she and the mother of the child had spoken about the incident, and that the two had agreed that the matter would not be reported to police if Donna secured mental health counselling for her son.
In response to questioning, during two separate interviews, about whether Brian ever had unsupervised contact with the children in the day care before it closed in 2012, Donna Bellanger adamantly denied that her son ever had unsupervised access to the children. Donna Bellanger ultimately admitted in a third interview that the children would sometimes be allowed to play video games with Brian in his bedroom without supervision.
In interviews of former day care employees and acquaintances, agents developed evidence that Brian had been allowed to have unsupervised contact with the children attending the day care up and until its closure in 2012.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief Gary J. Gemme of the Worcester Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Grady of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Vice President at Traffic Safety Equipment Company Sentenced to 33 Months in Prison for Tax EvasionRead the Press Release
NEWARK, N.J. – A former vice president at a South Plainfield, New Jersey, traffic safety equipment business was sentenced today to 33 months in prison for evading income taxes on more than $2 million in withdrawals he made from the business for his own use, U.S. Attorney Paul J. Fishman announced.
Anthony R. Pecoraro, 52, of Colts Neck, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of tax evasion. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Pecoraro worked in 2008 and 2009 at Traffic Safety Service LLC, which provided traffic safety equipment and other traffic related services to local and state municipalities and private businesses. In connection with his position as a vice president, he had access to the company’s business account.
During his guilty plea proceeding, Pecoraro admitted he wrote checks for unauthorized cash withdrawals for a total of approximately $2,126,200 between June 2008 and December 2009, which he took for personal use. Pecoraro acknowledged he failed to report this money as taxable income for calendar years 2008 and 2009 in the amounts of $563,800 and $1,562,400, respectively, and that if he had reported the additional cash on his income tax returns he would have owed the government approximately $733,970.
In addition to the prison term, Judge Walls sentenced Pecocaro to serve three years of supervised release and ordered him to pay $1,241,604.91in restitution to the IRS.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly; and special agents with IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: John McDonald Esq., Somerville, New Jersey
Former Comptroller of Albuquerque Construction Company Pleads Guilty to Federal Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, announced today that Stephanie Pyle, 40, of Albuquerque, N.M., pleaded guilty to federal fraud and identity theft charges.
Pyle was charged on Feb. 10, 2015, in a 12-count indictment alleging that between Jan. 2010 and May 2014, Pyle used credit cards and account numbers in the name of a construction company without authorization and with the intent to defraud the company. Counts 1 through 6 of the indictment charged Pyle with defrauding the company of approximately $1,531,124.00 during a five-year period. Counts 6 through 12 of the indictment charged Pyle with using the identity of another person to commit the fraudulent acts charged in Counts 1 through 6. At the time of the offenses charged in the indictment, Pyle was employed as the comptroller for the Albuquerque-based construction company that was the victim of Pyle’s criminal conduct.
Today Pyle pled guilty to Counts 1 and 7 of the indictment. In her plea agreement, Pyle admitted that while working as the comptroller for the company that was the victim of her criminal conduct, she obtained a credit card in her name that was linked to a credit card account in the name of one of the co-owners of the company. Pyle changed the address on the account to reflect her home address so that her employer would not see the statements of expenditures made on the credit card. Using her position as comptroller, Pyle arranged for the company to pay off the credit card balances on a frequent basis. Pyle admitted making thousands of personal charges and purchases on the credit card that she was not authorized to make. She also admitted using the name and credit card account of her employer without authorization to facilitate her criminal conduct.
At sentencing, Pyle faces a statutory maximum penalty of ten years in prison for her conviction on Count 1 of the indictment, an access device fraud charge. She also faces a mandatory two years in prison that must be served consecutive to any sentence imposed on Count 1 for her conviction on Count 7, an aggravated identity theft charge. Pyle also will be required to pay restitution in an amount to be determined by the court which is currently estimated at $2,409,910.00.
The case was investigated by the Albuquerque office of HSI and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
Former Alabama State Employee Sentenced to Prison for Stealing Identities Used to Request over $7 Million in Tax RefundsRead the Press Release
A Phenix City, Alabama, resident and former state employee was sentenced to serve more than seven years in prison for her role in a stolen identity tax refund fraud ring, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Tamika Floyd was sentenced by U.S. District Court Judge W. Keith Watkins to serve 87 months in prison, three years of supervised release and ordered to pay $3,092,885 in restitution. Floyd pleaded guilty on Oct. 2, 2014, to one count of conspiracy to file false claims and one count of aggravated identity theft. Floyd’s co-conspirators, including Keisha Lanier, Tracy Mitchell, Latasha Mitchell, Talarious Paige and others, pleaded guilty on April 1 and are scheduled to be sentenced on Aug. 7.
According to court documents, between 2006 and 2014, Tamika Floyd worked at two Alabama state agencies located in Opelika, Alabama: the Department of Public Health and the Department of Human Resources. In both positions, she had access to the personal identifying information of individuals. Beginning in 2012, Floyd was approached by co-conspirator Lanier. As part of the scheme, Floyd stole names and personal information from the state agencies and provided the information to Lanier to be used to file false federal income tax returns. Most of the stolen identifying information consisted of names of teenagers. Lanier then provided the stolen information to co-conspirators Tracy Mitchell, Latasha Mitchell, Paige and others to use to file false tax returns. These co-conspirators filed more than 3,000 fraudulent federal income tax returns claiming more than $7.5 million in tax refunds using the stolen information provided by Floyd.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of Internal Revenue Service (IRS)-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Jury Finds Hartford Man Guilty of Crack Cocaine Trafficking OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on May 18, a federal jury in Bridgeport found TYSHAWN McDADE, also known as “S Dot” and “S Diddy,” 30, of Hartford, guilty of crack cocaine trafficking offenses.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the West Hell street gang who, along with his associates, distributed crack cocaine in the Westland Street area of Hartford.
The evidence at trial proved that McDADE conspired with Scott and others to distribute crack cocaine. On March 3, 2014, McDADE sold a quantity of crack to an individual working with law enforcement.
The jury found McDADE guilty of one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base. When he is sentenced by U.S. District Judge Jeffrey A. Meyer, McDADE faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life
Twenty-five individuals were charged as a result of the investigation. Scott and 22 other defendants previously pleaded guilty to various offenses. One defendant was shot and killed while his case was pending.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Federal Jury Convicts Bank Branch Manager of Armored Truck RobberyRead the Press Release
Greenbelt, Maryland – A federal jury convicted Valentina Elebesunu, age 49, of Temple Hills, Maryland late yesterday of conspiracy to commit an armed robbery, and robbery, of an armored truck.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
Elebesunu was the branch manager at a Bank of America located at 3413 Kenilworth Avenue in Hyattsville, Maryland. According to evidence presented at the five day trial, between mid-November and November 21, 2012, Elebesunu conspired with Damione Lewis – a security guard at the bank, Delacey Brown, Taurian Miller, Adriane Baldwin and Barrington Turner to rob an armored truck that serviced the bank branch. Trial evidence showed that Elebesunu had provided Lewis with inside information about the precise amount of funds scheduled to be picked up by the armored truck. Lewis, in turn, provided that information to the other co-conspirators.
On November 21, 2012, an armored car employee picked up $272,956.17 from the bank. Elebesunu and Lewis were working their respective jobs at the bank at the time. Elebesunu’s co-conspirators were in vans outside the bank. As the employee was taking the money from the bank to the armored truck, Elebesunu’s co-conspirators approached the employee brandishing firearms, took the money bags to their vans and drove away. The robbery proceeds were later divided between Elebesunu and her co-conspirators.
Elebesunu faces a maximum sentence of 20 years in prison for the conspiracy and the robbery counts. U.S. District Judge George J. Hazel has scheduled sentencing for August 25, 2015 at 10:00 a.m.
Damione Lewis, age 36, of New Carrolton, Maryland; Delacey Kinte Brown, age 38, of Landover, Maryland; and Taurian Devon Miller, age 30, and Adrian Baldwin, age 29, both of Washington, DC; and Barrington Turner, age 35, of Forestville, Maryland; have all pleaded guilty to their roles in the robbery. Lewis is scheduled to be sentenced on June 25, 2015 and the remaining four defendants have been sentenced to between 51 and 96 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department and other members of the Cross Border Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.
East St. Louis Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
Duncan Lewis, 54, of East St. Louis, IL, was sentenced today in the United States District Court for the Southern District of Illinois to 18 months incarceration, followed by 5 years of supervised release on one count of Failure to Register as a Sex Offender, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Evidence showed that Lewis was convicted of Aggravated Criminal Sexual Assault and Home Invasion in Sangamon County, Illinois, in 1991, sentenced to prison, and released on mandatory supervised release in 2010. Upon release, Lewis was required to register as a sex offender due to the Aggravated Criminal Sexual Assault conviction. Lewis last registered as a sex offender on December 31, 2012 in the state of Missouri, but then moved to East St. Louis, Illinois and failed to register as a sex offender once in Illinois. On June 5, 2014, he was apprehended in East St. Louis, Illinois.
The case was investigated by the U.S. Marshals Service. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Drug Trafficking Organization Distributor Sentenced to 46 Months in Prison for Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A Brick, New Jersey, member of a large-scale drug trafficking organization was sentenced today to 46 months in prison for distributing heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Richard Durham, 28, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiring to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
In March 2014, 19 other alleged members of the drug trafficking organization of which Durham was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those 19 individuals, 14 have pleaded guilty.
According to documents filed in this case and statements made in court:
From November 2013 through March 2014, Durham conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. At his plea hearing, Durham admitted he possessed and distributed between 60 and 80 grams of heroin.
In addition to the prison term, Judge Sheridan sentenced Durham to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Scott Krasny Esq., West Trenton, New Jersey
Detroit man sentenced for heroin possessionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Steven Adams, age 47, of Detroit, Michigan, was sentenced today by United States District Court Judge Thomas E. Johnston to five months in federal prison, followed by three years of supervised release with the first five months of supervised release to be on home confinement. Adams previously pled guilty in February of 2015, admitting that heroin found in his possession at the Greyhound Bus Station in Charleston, West Virginia on June 16, 2014, was his and that he intended to transport it from Charleston to Detroit for distribution. Members of the Metropolitan Drug Enforcement Network Team (MDENT), conducting surveillance at the bus station on that date, discovered the heroin during a conversation with Adams.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Defendant Charged with Robbing Four Banks in One WeekRead the Press Release
PHILADELPHIA – Richard Cooper, 37, of Philadelphia, was indicted today on four counts of bank robbery, announced United States Attorney Zane David Memeger. The indictment alleges that Cooper robbed a TD Bank, located at 6635 Frankford Avenue, on April 11, 2015; alleges he robbed a Citizens Bank, located at 7327 Frankford Avenue, on April 13, 2015; alleges he robbed a TD Bank, located at 2267 East Butler Street, on April 15, 2015; and alleges he robbed TD Bank, located at 6635 Frankford Avenue, on April 17, 2015. The defendant faces a maximum possible sentence of up to 80 years in prison, up to 3 years of supervised release, up to $1,000,000 in fines, and $400 in special assessments.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jason Bologna.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Contractor and Bookkeeper Both Sentenced to Prison for Mortgage FraudRead the Press Release
PHOENIX – Yesterday, Paxton Jeffrey Anderson, 44, of Montevideo, Minn., and Joseph John Plany, 42, of Hutto, Texas, were sentenced by U.S. District Court Judge Susan R. Bolton to eight years and four years in prison, respectively, and ordered to pay $3,270,425 in restitution. Anderson and Planey were convicted of multiple counts of bank fraud in June, 2014, after a three-week jury trial.
“This is yet another reminder of the damage that mortgage fraud has caused to our community,” said U.S. Attorney John Leonardo. The defendants committed fraud at the expense of other homeowners and lenders, all in the name of greed.”
“The defendants orchestrated a multi-million mortgage fraud scheme that caused severe financial and emotional harm to numerous victim investors. Anderson was the mastermind who diverted hundreds of thousands of dollars to finance his love for horse racing and gambling, while Plany supervised the day-to-day details of the fraud and failed to alert unsuspecting borrowers to the illegal diversion of funds” said Dawn Mertz, Special Agent in Charge, Internal Revenue Service Criminal Investigation.
According to the evidence presented at trial, Anderson worked as a Phoenix-based general contractor between 2004-2007. During that time, and with the assistance of his bookkeeper Plany, Anderson made false representations to lenders to obtain construction loans for borrowers. Anderson used some of his friends and family as the borrowers for these fraudulently acquired loans. Unbeknownst to the borrowers, Anderson and Plany forged and altered draw requests, and other documents, to withdraw money from the construction loans. Anderson and Plany would use the monetary draws for their own personal expenses instead of using the funds to construct homes for the borrowers. Some of these personal expenses included the purchase of racehorses and trips to the Kentucky Derby. As a result of the fraud, many borrowers were forced into bankruptcy because their homes were never completed and were foreclosed upon by lenders.
The investigation in this case was conducted by the Internal Revenue Service Criminal Investigation, U.S. Postal Inspection Service, and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Kevin M. Rapp and Monica B. Klapper.
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Continuance Ordered in U.S. V. Baroni and KellyRead the Press Release
NEWARK, N.J. – Upon the joint application of the government and defense counsel, U.S. District Judge Susan D. Wigenton today issued a continuance order in the case of U.S. v. William E. Baroni Jr. and Bridget Anne Kelly.
The order sets a new trial date of Nov. 16, 2015, and sets out a schedule for pretrial motions. The order is attached.
baroni_-_kelly_continuance_order.pdf (106.23 KB)
Chinese Professors Among Six Defendants Charged with Economic Espionage and Theft of Trade Secrets for Benefit of People’s Republic of ChinaRead the Press Release
Chinese Professors Alleged to Have Stolen Valuable Technology from Avago Technologies and Skyworks Solutions to Benefit a PRC University
On May 16, 2015, Tianjin University Professor Hao Zhang was arrested upon entry into the United States from the People’s Republic of China (PRC) in connection with a recent superseding indictment in the Northern District of California, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Melinda Haag of the Northern District of California and Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division.
The 32-count indictment, which had previously been sealed, charges a total of six individuals with economic espionage and theft of trade secrets for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of universities and companies controlled by the PRC government.
“According to the charges in the indictment, the defendants leveraged their access to and knowledge of sensitive U.S. technologies to illegally obtain and share U.S. trade secrets with the PRC for economic advantage,” said Assistant Attorney General Carlin. “Economic espionage imposes great costs on American businesses, weakens the global marketplace and ultimately harms U.S. interests worldwide. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders wherever the evidence leads. I would like to thank all the agents, analysts and prosecutors who are responsible for this indictment.”
“As today’s case demonstrates, sensitive technology developed by U.S. companies in Silicon Valley and throughout California continues to be vulnerable to coordinated and complex efforts sponsored by foreign governments to steal that technology,” said U.S. Attorney Haag. “Combating economic espionage and trade secret theft remains one of the top priorities of this Office.”
“The conduct alleged in this superseding indictment reveals a methodical and relentless effort by foreign interests to obtain and exploit sensitive and valuable U.S. technology through the use of individuals operating within the United States,” said Special Agent in Charge Johnson. “Complex foreign-government sponsored schemes, such as the activity identified here, inflict irreversible damage to the economy of the United States and undercut our national security. The FBI is committed to rooting out industrial espionage that puts U.S. companies at a disadvantage in the global market.”
According to the indictment, PRC nationals Wei Pang and Hao Zhang met at a U.S. university in Southern California during their doctoral studies in electrical engineering. While there, Pang and Zhang conducted research and development on thin-film bulk acoustic resonator (FBAR) technology under funding from U.S. Defense Advanced Research Projects Agency (DARPA). After earning their doctorate in approximately 2005, Pang accepted employment as an FBAR engineer with Avago Technologies (Avago) in Colorado and Zhang accepted employment as an FBAR engineer with Skyworks Solutions Inc. (Skyworks) in Massachusetts. The stolen trade secrets alleged in the indictment belong to Avago or Skyworks.
Avago is a designer, developer and global supplier of FBAR technology, which is a specific type of radio frequency (RF) filter. Throughout Zhang’s employment, Skyworks was also a designer and developer of FBAR technology. FBAR technology is primarily used in mobile devices like cellular telephones, tablets and GPS devices. FBAR technology filters incoming and outgoing wireless signals so that a user only receives and transmits the specific communications intended by the user. Apart from consumer applications, FBAR technology has numerous applications for a variety of military and defense communications technologies.
According to the indictment, in 2006 and 2007, Pang, Zhang and other co-conspirators prepared a business plan and began soliciting PRC universities and others, seeking opportunities to start manufacturing FBAR technology in China. Through efforts outlined in the superseding indictment, Pang, Zhang and others established relationships with officials from Tianjin University. Tianjin University is a leading PRC Ministry of Education University located in the PRC and one of the oldest universities in China.
As set forth in the indictment, in 2008, officials from Tianjin University flew to San Jose, California, to meet with Pang, Zhang and other co-conspirators. Shortly thereafter, Tianjin University agreed to support Pang, Zhang and others in establishing an FBAR fabrication facility in the PRC. Pang and Zhang continued to work for Avago and Skyworks in close coordination with Tianjin University. In mid-2009, both Pang and Zhang simultaneously resigned from the U.S. companies and accepted positions as full professors at Tianjin University. Tianjin University later formed a joint venture with Pang, Zhang and others under the company name ROFS Microsystem intending to mass produce FBARs.
The indictment alleges that Pang, Zhang and other co-conspirators stole recipes, source code, specifications, presentations, design layouts and other documents marked as confidential and proprietary from the victim companies and shared the information with one another and with individuals working for Tianjin University.
According to the indictment, the stolen trade secrets enabled Tianjin University to construct and equip a state-of-the-art FBAR fabrication facility, to open ROFS Microsystems, a joint venture located in PRC state-sponsored Tianjin Economic Development Area (TEDA), and to obtain contracts for providing FBARs to commercial and military entities.
The six indicted defendants include:
- Hao Zhang, 36, a citizen of the PRC, is a former Skyworks employee and a full professor at Tianjin University. Zhang is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets. Zhang was arrested upon entry into the United States on May 16, 2015.
- Wei Pang, 35, a citizen of the PRC, is a former Avago employee and a full professor at Tianjin University. Pang is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets.
- Jinping Chen, 41, a citizen of the PRC, is a professor at Tianjin University and a member of the board of directors for ROFS Microsystems. Chen is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
- Huisui Zhang (Huisui), 34, a citizen of the PRC, studied with Pang and Zhang at a U.S. university in Southern California and received a Master’s Degree in Electrical Engineering in 2006. Huisui is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
- Chong Zhou, 26, a citizen of the PRC, is a Tianjin University graduate student and a design engineer at ROFS Microsystem. Zhou studied under Pang and Zhang, and is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets.
- Zhao Gang, 39, a citizen of the PRC, is the General Manager of ROFS Microsystems. Gang is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
The maximum statutory penalty for each of the charges alleged in the superseding indictment is as follows:
- Count One: conspiracy to commit economic espionage: 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Count Two: conspiracy to commit theft of trade secrets: 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Three Through Seventeen: economic espionage; aiding and abetting: 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Eighteen Through Thirty-Two: theft of trade secrets; aiding and abetting: 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
Zhang was arrested on May 16, 2015, upon landing at the Los Angeles International Airport on a flight from the PRC. He made his initial appearance yesterday afternoon in Los Angeles before the U.S. Magistrate Judge Alicia G. Rosenberg of the Central District of California, who ordered the defendant transported in custody to San Jose for further proceedings. His next scheduled appearance will be before the U.S. District Judge Edward J. Davila of the Northern District of California, at a date to be determined.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation is being conducted by the FBI’s Palo Alto Resident Agency/San Francisco Division. The case is being prosecuted by Assistant U.S. Attorneys Matt Parrella and Dave Callaway of the Northern District of California, in consultation with the National Security Division’s Counterespionage Section.
Zhang Superseding Indictment
Chinese Professors Among Six Defendants Charged with Economic Espionage and Theft of Trade Secrets for Benefit of People’s Republic of ChinaRead the Press Release
SAN FRANCISCO – United States Attorney Melinda Haag, Assistant Attorney General for National Security John Carlin, and FBI Special Agent-in-Charge David Johnson announced today that on May 16, 2015, Tianjin University Professor Hao Zhang was arrested upon entry into the United States from the People’s Republic of China (PRC) in connection with a recent superseding indictment in the Northern District of California. The thirty-two count indictment, which had previously been sealed, charged a total of six individuals with Economic Espionage and Theft of Trade Secrets for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of universities and companies controlled by the PRC government.
According to the indictment, PRC nationals Wei Pang and Hao Zhang met at a university in Southern California during their doctoral studies in electrical engineering. While there, Pang and Zhang conducted research and development on thin-film bulk acoustic resonator (FBAR) technology under funding from United States Defense Advanced Research Projects Agency (DARPA). After earning their doctorates in approximately 2005, Pang accepted employment as an FBAR engineer with Avago Technologies (Avago) in Colorado, and Zhang accepted employment as an FBAR engineer with Skyworks Solutions, Inc. (Skyworks) in Massachusetts. The stolen trade secrets alleged in the indictment belong to Avago and Skyworks.
Avago is a designer, developer and global supplier of FBAR technology, which is a specific type of radio frequency (RF) filter. While Zhang was employed there, Skyworks also designed and developed FBAR technology. FBAR technology is primarily used in mobile devices like cellular telephones, tablets, and GPS devices. FBAR technology filters incoming and outgoing wireless signals so that a user only receives and transmits the specific communications intended by the user. Apart from consumer applications, FBAR technology has numerous applications for a variety of military and defense communications technologies.
According to the indictment, in 2006 and 2007, Pang, Zhang, and other co-conspirators prepared a business plan and began soliciting PRC universities and others, seeking opportunities to start manufacturing FBAR technology in China. Through efforts outlined in the indictment, Pang, Zhang, and others established relationships with officials from Tianjin University. Tianjin University is a leading PRC Ministry of Education University located in Tianjin, PRC, and one of the oldest universities in China.
As set forth in the indictment, in 2008, officials from the Tianjin University flew to San Jose, California, to meet with Pang, Zhang, and other co-conspirators. Shortly thereafter, Tianjin University agreed to support Pang, Zhang, and others in establishing an FBAR fabrication facility in China. Pang and Zhang continued to work for Avago and Skyworks in close coordination with Tianjin University. In mid-2009, both Pang and Zhang simultaneously resigned from the U.S. companies and accepted positions as full professors at Tianjin University. Tianjin University later formed a joint venture with Pang, Zhang, and others under the company name ROFS Microsystem, intending to mass produce FBARs.
The indictment alleges that Pang, Zhang, and other co-conspirators stole recipes, source code, specifications, presentations, design layouts, and other documents marked as confidential and proprietary from the victim companies and shared the information with one another and with individuals working for Tianjin University.
According to the indictment, the stolen trade secrets enabled Tianjin University to construct and equip a state-of-the-art FBAR fabrication facility, to open ROFS Microsystems, a joint venture located in PRC state-sponsored Tianjin Economic Development Area (TEDA), and to obtain contracts for providing FBARs to commercial and military entities.
United States Attorney Melinda Haag stated, “As this case demonstrates, sensitive technology developed by U.S. companies in Silicon Valley and throughout California continues to be vulnerable to coordinated and complex efforts sponsored by foreign governments to steal that technology. Combating economic espionage and trade secret theft remains one of the top priorities of this Office.”
FBI San Francisco Special Agent-in-Charge David Johnson stated, “The conduct alleged in this superseding indictment reveals a methodical and relentless effort by foreign interests to obtain and exploit sensitive and valuable U.S. technology through the use of individuals operating within the United States. Complex foreign-government sponsored schemes, such as the activity identified here, inflict irreversible damage to the economy of the United States and undercut our national security. The FBI is committed to rooting out industrial espionage that puts U.S. companies at a disadvantage in the global market.”
“According to the charges in the indictment, the defendants leveraged their access to and knowledge of sensitive U.S. technologies to illegally obtain and share U.S. trade secrets with the PRC for economic advantage,” said Assistant Attorney General Carlin. “Economic espionage imposes great costs on American businesses, weakens the global marketplace and ultimately harms U.S. interests worldwide. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders wherever the evidence leads. I would like to thank all the agents, analysts and prosecutors who are responsible for this indictment.”
The six indicted defendants include:
- Hao Zhang, 36, a citizen of the PRC. Zhang is a former Skyworks employee and a full professor at Tianjin University. Zhang is charged with Conspiracy to Commit Economic Espionage, Conspiracy to Commit Theft of Trade Secrets, Economic Espionage, and Theft of Trade Secrets. Zhang was arrested upon entry into the United States on May 16, 2015.
- Wei Pang, 35, a citizen of the PRC. Pang is a former Avago employee and a full professor at Tianjin University. Pang is charged with Conspiracy to Commit Economic Espionage, Conspiracy to Commit Theft of Trade Secrets, Economic Espionage, and Theft of Trade Secrets.
- Jinping Chen, 41, a citizen of the PRC. Chen is a professor at Tianjin University and a member of the board of directors for ROFS Microsystems. Chen is charged with Conspiracy to Commit Economic Espionage and Conspiracy to Commit Theft of Trade Secrets.
- Huisui Zhang (Huisui), 34, a citizen of the PRC. Huisui studied with Pang and Zhang at a U.S. university and received a master’s degree in electrical engineering in 2006. Huisui is charged with Conspiracy to Commit Economic Espionage and Conspiracy to Commit Theft of Trade Secrets.
- Chong Zhou, 26, a citizen of the PRC. A Tianjin University graduate student and a design engineer at ROFS Microsystem, Zhou studied under Pang and Zhang. Zhou is charged with Conspiracy to Commit Economic Espionage, Conspiracy to Commit Theft of Trade Secrets, Economic Espionage, and Theft of Trade Secrets.
- Zhao Gang, 39, a citizen of the PRC. Gang is the General Manager of ROFS Microsystems. Gang is charged with Conspiracy to Commit Economic Espionage and Conspiracy to Commit Theft of Trade Secrets.
The maximum statutory penalty for each of the charges alleged in the Superseding Indictment is as follows:
- Count One: Conspiracy to Commit Economic Espionage, in violation of 18 U.S.C. § 1831(a)(5): 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Count Two: Conspiracy to Commit Theft of Trade Secrets, in violation of 18 U.S.C. § 1832(a)(5): 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Three Through Seventeen: Economic Espionage; Aiding and Abetting, in violation of 18 U.S.C. § 1831(a)(1),(2),(3), & 2: 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Eighteen Through Thirty-Two: Theft of Trade Secrets; Aiding and Abetting, in violation of 18 U.S.C. § 1832(a)(1),(2),(3), & 2: 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
The defendant was arrested on May 16, 2015, upon landing at the Los Angeles International Airport on a flight from the PRC. He made his initial appearance yesterday afternoon in Los Angeles before The Honorable Alicia G. Rosenberg, United States Magistrate Judge, who ordered the defendant transported in custody to San Jose for further proceedings. His next scheduled appearance will be before The Honorable Edward J. Davila, United States District Judge, at a date to be determined.
The case is being prosecuted by Assistant United States Attorneys Matthew Parrella and David Callaway of the Computer Hacking and Intellectual Property Unit of the U.S. Attorney’s Office in San Francisco, in consultation with the Counterespionage Section of the U.S. Department of Justice in Washington, D.C. The investigation is being conducted by the Palo Alto Resident Agency/San Francisco Division of the Federal Bureau of Investigation.
Please note, an indictment contains only allegations and, as in all cases, the defendants must be presumed innocent unless and until proven guilty.
California Financing Consultant Convicted in Kickback Scheme StingRead the Press Release
Boston – A California-based business consultant was convicted on Friday, May 15, 2015, for his role in a fraudulent scheme to pay kickbacks to an undercover agent posing as a corrupt hedge fund manager in order to obtain financing for small, publicly traded companies.
Sandip Shah, 41, of Chino, Calif., was convicted following a five-day jury trial on nine counts of wire fraud. Shah was indicted in May 2014, and is scheduled to be sentenced on August 11, 2015.
Shah was involved in a scheme to pay secret kickbacks to a purported investment fund representative who had agreed to use the fund’s money to buy stock in three companies that had hired Shah to help them raise capital. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. Shah and the company executives were unaware that the purported investment fund representative was actually an undercover agent with the Federal Bureau of Investigation.
The conviction followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Micro-cap companies are small publicly traded companies whose stock often trades at pennies a share. Fraud in the micro-cap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about micro-cap stocks may be difficult for the average investor to find, since many micro-cap companies do not file financial reports with the Securities Exchange Commission.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the Federal Bureau of Investigation undercover operation, cooperated with criminal authorities in bringing charges against Shah and 20 other defendants who participated in the kickback scheme. All but one of those defendants has been convicted, either after trial or by way of guilty pleas, on charges arising out of their involvement in the scheme. The sole remaining defendant is currently a fugitive.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Stephen E. Frank, Chief and Deputy Chief, respectively, of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Cabell County man pleads guilty to failing to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. - A 60-year old Cabell County man faces up to 10 years in prison after pleading guilty today to failing to register as a sex offender, U.S. Attorney Booth Goodwin announced. Ronnie Alvin Howard, of Huntington, West Virginia, entered a guilty plea before Chief District Court Judge Robert C. Chambers.
Howard was convicted in 2007 in Michigan of two counts of Assault with Intent to Commit Second Degree Sexual Assault involving minor victims. These convictions require Howard to register as a sex offender. Howard was also convicted of Second Degree Sexual Assault in 1980 in Michigan. In August of 2012, Howard moved to Huntington, West Virginia, and did not register as a sex offender despite knowing it was required by law. He continued to reside and work in Huntington without registering until his arrest on February 18, 2015.
The court scheduled sentencing for Howard for August 17, 2015, in Huntington, West Virginia.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Buffalo Man Pleads Guilty to Tax Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that James Chatmon, 36, of Buffalo, NY, pleaded guilty today to conspiracy to defraud the Internal Revenue Service by making false claims for income tax refunds before U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that Chatmon gathered biographical information from more than a dozen individuals which he then used to generate false W-2 forms. The individuals then used the forms to file false Federal and New York State income tax returns. Claims for refunds and credits were made on 17 tax returns, even though the persons filing the returns were not entitled to any refunds.
Proceeds totaling $105,088 were divided between Chatmon and the tax-return filers during the scheme, which took place between January 2010 and April 2013. The defendant will be required to pay restitution of $102,149 to the IRS, and $2,939 to the New York State Department of Finance. The total attempted loss figure exceeds $120,000, as some of the false returns did not result in refunds.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for September 3, 2015 before Judge Arcara.
Bridgeport Man Sentenced to 28 Years in Federal Prison for MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TRUMAINE HEARST, also known as “Man,” 21, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 336 months of imprisonment, followed by five years of supervised release, for his involvement in the October 2012 murder of Dawayne Cobb in Bridgeport.
According to court documents and statements made in court, on October 10, 2012, at approximately 6:20 p.m., Dawayne Cobb was discovered in the driver seat of an idling vehicle in the vicinity of 220 Sunshine Circle in Bridgeport. Cobb had gunshot wounds in his shoulder and abdomen.
HEARST has admitted that, on that date, he and Johnnie Jefferson, also known as “Jeezy,” planned to rob Cobb of marijuana. HEARST and Jefferson then drove to Sunshine Circle to meet Cobb, murdered him and stole from him a jar containing approximately two ounces of marijuana. HEARST and Jefferson transported the stolen marijuana to a Bridgeport residence and subsequently distributed it amongst themselves and others.
On November 10, 2014, HEARST pleaded guilty to one count of causing the death of Dawayne Cobb through the use of a firearm.
Jefferson pleaded guilty to the same charge on November 3, 2014, and awaits sentencing.
HEARST and Jefferson have been detained since July 16, 2013.
U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This matter was investigated by Bridgeport Police Department and the FBI’s Bridgeport Safe Streets Task Force. The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Rahul Kale.
Attorney Sentenced to Prison in New York Federal Court for Subscribing to False Federal Income Tax ReturnsRead the Press Release
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Preet Bharara of the Southern District of New York announced that a Glen Ridge, New Jersey, man was sentenced yesterday to serve six months in prison for failing to report income on his tax returns for the 2007, 2008 and 2009 tax years.
Matthew Libous, 37, was convicted at a bench trial in White Plains, New York, in January 2015. U.S. District Judge Vincent L. Briccetti imposed yesterday’s sentence.
According to the superseding indictment and the evidence presented at trial:
Libous engaged in the practice of law from 2006 through 2008. Libous deposited the fees he received into his personal bank account but never reported them on his tax return. In 2008, Libous became a minority partner and manager of Wireless Construction Solutions LLC (WCS), a company that maintained cellular telephone towers. Libous caused WCS to pay thousands of dollars in his personal expenses on his behalf from 2008 to 2011. Judge Briccetti found today that Libous failed to report more than $97,000 in income, leading to a tax loss of more than $38,000.
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In addition to the prison sentence, Libous was sentenced to one year of supervised release, a $25,000 fine, 100 hours of community service and costs of prosecution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bharara thanked Internal Revenue Service-Criminal Investigation and the investigators from the U.S. Attorney's Office for the Southern District of New York, who investigated the case, and Assistant U.S. Attorney James McMahon and Tax Division Trial Attorney and Special Assistant U.S. Attorney Andrew Kameros of the Southern District of New York-White Plains Division, who prosecuted the case.