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Wednesday 1 April 2015
Man Convicted of Illegally Possessing Handgun and AmmunitionRead the Press Release
ALBANY, NEW YORK – On Friday, March 27, 2015, a federal jury in Albany convicted Shakir Michael, age 37, of Albany, New York, of being a felon in possession of a firearm, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Delano A. Reid of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Field Division. Michael faces a maximum sentence of imprisonment of ten years and a maximum fine of $250,000 for possessing a loaded Mossberg 12 gauge shotgun. Michael, having previously been convicted on two prior occasions of felony offenses under New York State law, was prohibited from carrying any firearms under federal law. Michael, who was convicted after a four day trial, will remain in custody until his sentencing scheduled for August 4, 2015 by United States District Judge Mae A. D’Agostino. The jury acquitted Michael of a separate charge of possessing a firearm in furtherance of a drug trafficking crime.
This prosecution resulted from an investigation conducted by the Albany Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Robert A. Sharpe.
Maker of Erectile Dysfunction Products Sentenced to Nine Years in Prison for Misbranding and Selling Drugs as "All-natural" Herbal SupplementsRead the Press Release
CHARLOTTE, N.C. – Kamraz Rezapour, 53, formerly of Creston, N.C. was sentenced today to 108 months in prison for defrauding consumers of nearly $5 million by misbranding erectile dysfunction drugs and selling them as “all natural” herbal supplements, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also sentenced Rezapour to three years of supervised release and ordered the defendant to pay a $15,000 fine and $44,100.52 in restitution. The Court also ordered the forfeiture of the proceeds of Rezapour’s crimes, including over $1.5 million in seized funds, gold and silver coins, along with a condominium located in Tampa, Florida.
David W. Bourne, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), join Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in 2009 through April 2013, Rezapour defrauded consumers of nearly $5 million, by falsely claiming that the erectile dysfunction products he sold were “100 % safe and natural.” Court records show that Rezapour was the owner and operator of Nutrition for Health, Inc. and Mojo Risen, LLC., which sold dietary supplements, male enhancement drugs and erectile dysfunction drugs, including “Mojo Risen,” “Mojo Sensation” and “VajiVedic.” Court documents indicate that Rezapour advertised Mojo Risen and the other erectile dysfunction pills as non-prescription, “all natural” herbal supplements, when, in fact, the products contained ingredients similar to prescription drugs such as Viagra, which require FDA approval to market and distribute. Rezapour previously admitted that in order to induce consumers to purchase his Mojo Risen, Rezapour repeatedly claimed that the sexual enhancement products were “100% safe and natural” and without “harsh and dangerous side effects.” Rezapour failed to list the prescription ingredients in the packaging and advertising material for the supplements he sold, including bearing the symbol “Rx only” on labels, a requirement for all prescription drugs, and did not include any warnings about the possible adverse side effects of his products.
According to court records, Rezapour received the ingredients from a supplier in China. Court records indicate that the packages were falsely labeled as containing “paint products,” among other things, to evade detection by the U.S. Customs authorities and the FDA. Rezapour ultimately distributed his products nationwide, including to customers located in Charlotte, and netted more than $4.9 million in payments for the mislabeled products.
Rezapour pleaded guilty in February 2014 to one count of wire fraud and two counts of drug misbranding, and has been detained since April 2013. Rezapour will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation into Rezapour was conducted by FDA-OCI and USPIS, with the assistance of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is handled by Assistant U.S. Attorney Kelli Ferry.
In June 2013, the FDA issued a warning against Mojo Risen, advising consumers not to purchase or to discontinue using this product immediately. The FDA also advised consumers who have experienced any negative side effects as a result of using this product to consult a health care professional as soon as possible. For more information please visit:
https://www.fda.gov/drugs/resourcesforyou/consumers/buyingusingmedicinesafely/medicationhealthfraud/ucm355904.htm
Luzerne County Man Pleads Guilty to Conspiracy to Distribute Bath SaltsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 21-year-old Pittston man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Peter Smith, the defendant, Alan Folweiler, admitted to his involvement in the West Pittston-based conspiracy during 2011 through 2013.
Folweiler was indicted by a federal grand jury in August 2014, following an investigation by Homeland Security Investigations, the Pennsylvania State Police, and West Pittston Police.
Judge Mannion ordered a pre-sentence investigation. Sentencing will be scheduled after the completion of the pre-sentence report.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $ 1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Louisiana Man Sentenced to 14.5 Years in Prison for Operating an Arizona Based Alien Smuggling OrganizationRead the Press Release
PHOENIX – Otoniel Galindo Vasquez-Lopez, 29, of Bossier, La., was sentenced on March 30, 2015 by U.S. District Judge G. Murray Snow to 14.5 years in custody and three years of supervised release for his role as the leader of an Arizona based alien smuggling organization after previously pleading guilty to conspiracy to transport and harbor illegal aliens and conspiracy to commit money laundering. Vasquez-Lopez employed and directed money launderers and alien smugglers in Arizona, and coordinated transportation and payment with hundreds of aliens and their families, from the assumed anonymity of Bossier, La.
Vasquez-Lopez sentence reflects that illegal aliens who utilized his organization, died while in transport to other destinations in the United States. Specifically, on July 22, 2012, two illegal aliens transported by Vasquez-Lopez’s alien smugglers were killed in a roll over double fatality in Holbrook, Ariz., after being ejected from a Dodge minivan that was overloaded with 15 people and crashed when a tire blew. Additionally, on June 23, 2012, Vasquez-Lopez’s name and telephone number were found in the pocket of a deceased alien, who died in the dessert near Sells, Ariz., after being left behind by his guides when he could not keep up with his group.
Additionally, over #30 other alien smugglers and money launders in this organization were also arrested, convicted, and sentenced in the District of Arizona.
The investigation in this case was conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Phoenix. The prosecution was handled by Kristen Brook, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-1513-PHX-GMS
RELEASE NUMBER: 2015-030_Vasquez-Lopez
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.
Local Man Pleads Guilty to Attempted Enticement of a Minor and Federal Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA – William M. Goode, 48, of Crestview, Florida, pled guilty today to attempting to entice a minor for sex and receipt of child pornography. The plea was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his plea, Goode admitted to posting an online advertisement to solicit sex with a minor, which an undercover law enforcement officer answered in November 2014. Goode’s online communications with the undercover officer were an attempt to entice sexual activity with the undercover officer’s purported 12-year-old daughter. Goode arranged to meet the undercover officer in Pensacola but was taken into custody after traveling more than 50 miles for the sexual encounter. A subsequent forensic review of Goode’s digital media revealed several dozen images of child pornography and numerous online communications with people who offered to allow Goode to engage in sexual acts with minors.
Sentencing is scheduled for June 19, 2015, before Chief United States District Judge M. Casey Rodgers at the United States Courthouse in Pensacola, Florida. Goode faces a mandatory minimum of 10 years in prison and maximums of life in prison, life on supervised release, and a $250,000 fine.
United States Attorney Marsh praised the work of Homeland Security Investigations, the Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Lilburn Man Sentenced to over 10 Years for Attempted Online Enticement of A MinorRead the Press Release
AUGUSTA, GA – Sarawin Nat Intakanok, 37, of Lilburn, Georgia, was sentenced last week by United States District Court Judge J. Randal Hall to 130 months in prison, followed by 25 years of supervised release, for the Attempted Online Enticement of a Minor to Engage in Illicit Sexual Activity. Intakanok will be required to register as a sex offender. He pled guilty to that charge last week.
United States Attorney Edward Tarver said, “The online solicitation of minors for sexual purposes is deplorable, and the U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. This defendant committed a serious crime for which this punishment is justified.”
Evidence presented during the guilty plea and sentencing hearings revealed that Intakanok responded to an ad on Craigslist, and exchanged emails with a person he believed to be the father of a 13-year-old girl. After a month of communications, Intakanok, who had repeatedly expressed an interest in having sex with the 13-year-old, drove from Atlanta to Augusta to what he believed to be the girl’s residence. He was immediately arrested by law enforcement officers. When imposing the lengthy sentence, the Court cited to the egregious nature of Intakanok’s attempted sexual victimization of a minor and the need to deter not only Intakanok but others from engaging in such predatory conduct.
This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Licensed Clinical Social Worker Sentenced for Defruading Insurance CompaniesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Eugene Domenico, 62, of Lockport, NY, who was convicted of three counts of theft from a health care benefit program, was sentenced to two years probation and ordered to pay a $10,000 fine by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $100,286.35.Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant, a licensed clinical social worker in private practice, devised a scheme to charge various health care insurance providers, including Blue Cross Blue Shield, for services that were not rendered. For example, Domenico billed Blue Cross Blue Shield for services allegedly provided to a patient on January 6, 2011, knowing that services were never provided. The total loss to insurance companies was $100,286.35.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation’s Health Care Fraud Task Force.
Lackawanna Man Sentenced for Obstructing JusticeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Thomas Herring, 39, of Lackawanna, NY, who was convicted of obstruction of justice, was sentenced to two years in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on January 14, 2014, law enforcement officers provided the defendant with more than $1,000 in United States currency to purchase crack cocaine from a target the Federal Bureau of Investigation had been investigating for more than six months.
Herring was told where to go to purchase the cocaine and after exiting the location, he met up with FBI agents. The defendant then turned over a quantity of cocaine to the agents. However, based on other law enforcement techniques, agents knew that Herring had not purchased the cocaine from the target causing the FBI to prematurely terminate its investigation of the target.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation and the Lackawanna Police Department, under the direction of Chief James Michel.
KC Man, Lee's Summit Woman Plead Guilty to Transporting an Individual for ProstitutionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man and a Lee’s Summit, Mo., woman pleaded guilty in federal court today to transporting an individual across states lines for prostitution.
Milton Charles Wilson, also known as “Barbwire,” 59, of Kansas City, and Kayla Pinkerton, also known as “Foxy,” 19, of Lee’s Summit, pleaded guilty in separate appearances before U.S. District Judge Gary A. Fenner to interstate transportation for prostitution.
By pleading guilty today, Wilson and Pinkerton admitted that they transported an individual across state lines to engage in prostitution in Kansas in December 2013.
Wilson advertised the victim for prostitution on Backpage.com and paid for a hotel room at the American Inn in North Kansas City, Mo. Wilson transported Pinkerton and the victim to various locations in Missouri and Kansas, including at least two trips to Overland Park, Kan., for the purpose of prostitution.
Pinkerton admitted that she took photographs of the victim and later uploaded them to the escort section of Backpage.com.
Under the terms of today’s plea agreements, Wilson will be sentenced to 10 years in federal prison without parole and Pinkerton is subject to a maximum sentence of 10 years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department, the FBI, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Illinois Man Sentenced to Prison for Possessing A Firearm as A FelonRead the Press Release
An Illinois man who purchased a handgun and more than 100 rounds of ammunition in Marion, Iowa, was sentenced to more than three years in prison yesterday in federal court in Cedar Rapids.
Montarrance Wilson, age 27, from Chicago, Illinois, received the prison term after a January 5, 2015, guilty plea to a one-count indictment charging him with being a felon in possession of a firearm and ammunition.
In a plea agreement, Wilson admitted that, on July 16, 2013, he purchased a handgun and more than 100 rounds of ammunition from a Marion, Iowa, man who had pawned the firearm. In exchange for $700, the man retrieved the firearm from the Marion pawnshop and sold it and the ammunition to Wilson. Later that same day, probation officers made an unannounced home visit to another felon’s apartment. Wilson fled when the officers knocked on the door. Inside, the officers found a bag belonging to Wilson containing the firearm and ammunition. Wilson was arrested in Illinois on these charges in November 2014, and was removed to this district to answer charges. Wilson was prohibited from possessing a firearm because he is a felon, having been convicted in 2007 of Deliver of Cocaine in Cook County, Illinois.
Wilson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wilson was sentenced to 37 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Wilson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the FBI Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-0084-LRR.Follow us on Twitter @USAO_NDIA.
Honduran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ESMIN ESPINOZA-ERAZO, age 25, a citizen of Honduras who resides in Hammond, pled guilty today to a one-count Indictment for illegal use of a Social Security Number (“SSN”).
According to the Indictment, on or about July 16, 2013, ESPINOZA-ERAZO submitted a SSN which did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana identification card. Based on that false submission, an employee with the Department of Motor Vehicles issued ESPINOZA-ERAZO a Louisiana identification card.
ESPINOZA-ERAZO faces a maximum term of imprisonment of not more than five years, a fine of $250,000, and a mandatory special assessment of $100.00. Additionally, ESPINOZA-ERAZO is also subject to a period of supervised release after imprisonment of up to three years. U.S. District Judge Kurt D. Engelhardt set sentencing for July 8, 2015.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TONY AXELL ROMERO-MONTOYA, age 28, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry into the United States.
According to the court documents, on February 25, 2015, Tony Axell Romero-Montoya was found in the United States after having been deported previously on September 17, 2012.
U.S. District Judge Sarah S. Vance set sentencing in this matter for May 13, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Tony Axell Romero-Montoya Factual Basis
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENYS JAVIER BENITEZ-FERNANDEZ, age 31, a citizen of Honduras, pled guilty to a one-count Indictment charging him with illegal reentry into the United States.
According to the court documents, on January 22, 2015, Denys Javier Benitez-Fernandez was found in the United States after having been deported on April 24, 2013.
U.S. District Judge Sarah S. Vance set sentencing for May 13, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Denys Benitez-Fernandez Factual Basis
Hobbs Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Luis Carlos Bujanda, 47, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 70 months in federal prison followed by two years of supervised release for his methamphetamine trafficking conviction.
Bujanda was arrested on Dec. 12, 2013, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Lea County, N.M., on Nov. 14, 2013. He subsequently was indicted in March 2014, on that same charge.
Court filings reflect that Bujanda was arrested by officers of the Lea County Drug Task Force on Nov. 14, 2013, when officers executed a search warrant at Bujanda’s residence in Hobbs and seized more than 500 grams of substances that tested positive for methamphetamine and $3,366.00 in cash.
On July 24, 2014, Bujanda entered a guilty plea to the indictment. In his plea agreement, Bujanda admitted possessing more than 431 grams of pure methamphetamine and $3,366.00 which were seized by officers when they executed a search warrant at his residence on Nov. 14, 2013. Under the terms of his plea agreement, Bujanda also was ordered to forfeit the currency seized from his residence and a Dodge Ram truck purchased with drug proceeds.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department, the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hazleton Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old Hazleton man pleaded guilty on March 31, 2015, before Senior U.S. District Court Judge Edwin M. Kosik in Scranton, to participating in a heroin and cocaine trafficking conspiracy during 2013.
According to United States Attorney Peter Smith, the defendant, Willy Perez, admitted that he conspired with others to distribute the drugs. FBI agents and Scranton Police seized approximately 2,000 bags of heroin from Perez during the investigation.
Perez was indicted by a federal grand jury in January 2014, as a result of an investigation by the Federal Bureau of Investigation, the Lackawanna County District Attorney’s Office and Scranton Police.
Perez faces up to 20 years in prison and a $1 million fine. Judge Kosik ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Hazleton Man Charged with Heroin Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal information was filed in U.S. District Court in Scranton charging Adam Castro, age 28, of Hazleton, with possession with intent to distribute heroin in Hazleton between September 2014 and January 2015.
According to U.S. Attorney Peter Smith, the case arose after investigators made purchases of heroin from Castro. On January 21, 2015, investigators obtained a search warrant for a residence on West Elm Street in Hazleton, where Castro was staying. As a result of the search, investigators seized approximately 1,050 bags of heroin, drug packaging materials and United States currency.
The government also filed a plea agreement in the case, which is subject to approval by the court.
The investigation was conducted by the Drug Enforcement Administration, the Hazleton Police Department and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for 20 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Hartford Men Charged with Witness Tampering, Retaliation Offenses Related to 2010 MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced that a federal grand jury sitting in Hartford has returned a 14-count second superseding indictment charging DOMINIQUE MACK, also known as “Lil Sweets,” 25, and TYQUAN LUCIEN, also known as “TQ” and “Frogger,” 22, both of Hartford, with a conspiracy to tamper with a witness by committing first degree murder. LUCIEN was also charged with multiple attempts to commit witness tampering and attempts to commit witness retaliation by attempting to solicit another person to murder a witness who was to testify in the matter of United States v. Mack.
MACK is also charged with witness tampering by committing first degree murder of Ian Francis. Keronn Miller was not charged in this indictment, as he already pleaded guilty for his role in the murder of Ian Francis. According to court documents and statements made in court, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011. MACK and others, known and unknown to the grand jury, is alleged to have murdered Francis with the intent to prevent MACK’s attendance at a federal proceeding and to prevent Francis and another person from communicating with a federal law enforcement officer or judge about the commission or possible commission of a federal crime, namely, narcotics trafficking. MILLER pleaded guilty to witness tampering by committing second degree murder in December, 2014. At his guilty plea hearing, Miller admitted to luring Ian Francis to Sigourney Street knowing that Francis would be murdered. Miller is awaiting sentencing.
This superseding indictment alleges that MACK and LUCIEN conspired to kill another witness to prevent him from appearing in the matter of United States v. Mack and from communicating with law enforcement information that the witness had about the Ian Francis murder and the unlawful use and possession of a firearm. LUCIEN is alleged to have attempted to tamper with this same witness by attempting to solicit another person to murder the witness. LUCIEN is also charged with attempting to solicit another person to murder the witness, and two other persons, including a minor victim, to retaliate against the witness for appearing before a federal grand jury and for providing information to law enforcement about the murder of Ian Francis and the unlawful use and possession of a firearm.
The second superseding indictment also charges MACK with two counts of possession of a firearm by a previously convicted felon.
The charges of witness tampering by committing first degree murder and conspiracy to commit witness tampering by committing first degree murder carry a mandatory lifetime term of imprisonment. The charges of attempted witness tampering and attempted witness retaliation carry a maximum term of 30 years’ imprisonment.
MACK and LUCIEN are in federal custody. MACK appeared today before U.S. Magistrate Judge Donna Martinez in Hartford and entered a plea of not guilty to the charges against him. LUCIEN appeared on March 30, 2015, before Judge Martinez, and entered a plea of not guilty to the charges against him
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALVARO D. CAMPOS, age 39, a citizen of Guatemala, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced CAMPOS to 7 months incarceration, followed by one year of supervised release, and a $100 special assessment. Following incarceration, CAMPOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, on or about October 1, 2014, CAMPOS was found in the United States after having been officially deported and removed on three prior occasions, most recently on or about November 14, 2013.
U.S. Attorney Polite praised the work of the United States Border Patrol in investigating this matter. Assistant United States Attorney Rick Veters was in charge of the prosecution.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALVARO D. CAMPOS, age 39, a citizen of Guatemala, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced CAMPOS to 7 months incarceration, followed by one year of supervised release, and a $100 special assessment. Following incarceration, CAMPOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, on or about October 1, 2014, CAMPOS was found in the United States after having been officially deported and removed on three prior occasions, most recently on or about November 14, 2013.
U.S. Attorney Polite praised the work of the United States Border Patrol in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Fourth Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
All Four Members Charged Have Now Pleaded Guilty
A fourth member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division made the announcement.
Austin Alcala, 19, of McCordsville, Indiana, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” A sentencing hearing is set before U.S. District Judge Gregory M. Sleet of the District of Delaware on July 29, 2015.
According to the statement of facts filed in connection with his guilty plea, Alcala was part of the hacking conspiracy between the spring of 2012 and April 2014. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also stole financial and other sensitive information relating to the companies—but not their customers—and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Alcala admitted in court that he was personally involved in hacking into and stealing log-in credentials and intellectual property from victim companies including Microsoft and Zombie Studios. Alcala further admitted that, on one occasion, he transmitted to co-conspirators a database file containing approximately 11,266 log-in credentials stolen from a victim company.
The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to the same conspiracy charge on Jan. 20, 2015, and remains in custody pending his sentencing hearing scheduled for May 2015.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada. The case is being prosecuted by Deputy Chief for Litigation James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
Fourth Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
WILMINGTON, Del. – A fourth member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division made the announcement.
Austin Alcala, 19, of McCordsville, Indiana, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” A sentencing hearing is set before U.S. District Judge Gregory M. Sleet of the District of Delaware on July 29, 2015.
According to the statement of facts filed in connection with his guilty plea, Alcala was part of the hacking conspiracy between the spring of 2012 and April 2014. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also stole financial and other sensitive information relating to the companies—but not their customers—and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Alcala admitted in court that he was personally involved in hacking into and stealing log-in credentials and intellectual property from victim companies including Microsoft and Zombie Studios. Alcala further admitted that, on one occasion, he transmitted to co-conspirators a database file containing approximately 11,266 log-in credentials stolen from a victim company.
The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to the same conspiracy charge on Jan. 20, 2015, and remains in custody pending his sentencing hearing scheduled for May 2015.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada. The case is being prosecuted by Deputy Chief for Litigation James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
Former worker at Toledo hospital indicted for illegally accessing patient informationRead the Press Release
A former respiratory therapist at a Toledo hospital was indicted for obtaining individually identifiable health information and unauthorized access of a protected computer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jamie Knapp, 25, of Adrian, Mich., allegedly accessed the information without authorization between May 2013 and March 2014, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo – Resident Agency. The case is being handled by Assistant United States Attorneys Noah P. Hood and Gene Crawford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Owner of Defense Contracting Businesses Pleads Guilty to Illegally Exporting Military Blueprints to India Without a LicenseRead the Press Release
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Paul J. Fishman of the District of New Jersey announced that the former owner of two New Jersey defense contracting businesses today admitted that she conspired to send sensitive military technical data to India.
Hannah Robert, 49, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson of the District of New Jersey to count six of a superseding indictment, which charged her with conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval from the U.S. Department of State.
“Hannah Robert circumvented the U.S. government and provided defense technical drawings in violation of the Arms Export Control Act,” said Assistant Attorney General Carlin. “We will continue to pursue and hold accountable those who abuse their access to sensitive defense information. I would like to thank all of the special agents, prosecutors and other personnel whose work led to the guilty plea in this case.”
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” said U.S. Attorney Fishman. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as “P.R.,” Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, military attack helicopters and F-15 fighter aircrafts.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. e-mailed Robert requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010, Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s U.S. customers failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
Count six of the superseding indictment – conspiracy to violate the Arms Export Control Act – is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. As part of her plea agreement, Robert must pay $181,015 to the DoD, which includes the cost of repair for the grounded F-15s. Robert also consented to a forfeiture money judgment of $77,792, which represents the dollar value of Robert’s fraudulent contracts with DoD.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
The case was investigated by the special agents of the Defense Criminal Investigative Service’s Northeast Field Office and the special agents of the Department of Homeland Security’s Counter Proliferation Investigations.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and L. Judson Welle of the District of New Jersey. The prosecution received invaluable support from attorneys of the U.S. Department of Justice’s National Security Division.
Former Owner of Defense Contracting Businesses Pleads Guilty to Illegally Exporting Military Blueprints to India Without A LicenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses today admitted that she conspired to send sensitive military technical data to India, U.S. Attorney Paul J. Fishman announced.
Hannah Robert, 49, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson to Count Six of a superseding indictment, which charged her with conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval of the U.S. Department of State.
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” U.S. Attorney Fishman said. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner, and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as “P.R.,” Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, in military attack helicopters, and in F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. e-mailed Robert requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010 Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia, and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s United States customers, failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
Count Six of the superseding indictment – conspiracy to violate the Arms Export Control Act – is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. As part of her plea agreement, Robert must pay $181,015 to the U.S. Department of Defense, which includes the cost of repair for the grounded F-15s. Robert also consented to a forfeiture money judgment of $77,792, which represents the dollar value of Robert’s fraudulent contracts with the U.S. Department of Defense. Sentencing is scheduled for June 26, 2015.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert; and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit. The prosecution received invaluable support from attorneys of the U.S. Department of Justice’s National Security Division, Counterespionage Section.
Defense counsel: David Schafer Esq., Lawrenceville, New Jersey
robert_hannah_superseding_indictment.pdf
Former NBA star Chris Herren to share inspiring story of drug addiction, recovery with Ohio Valley studentsRead the Press Release
WHEELING, WEST VIRGINIA – With West Virginia leading the nation in drug overdose deaths, community leaders remain dedicated to providing impactful, effective drug education for local students. Next week, former National Basketball Association standout Chris Herren will return to the Ohio Valley for the third time to share the powerful story of his struggle with addiction.
On Thursday, April 9, 2015, Herren will address students in Ohio and Wetzel Counties. First, he will visit Wheeling Park High School to lead a discussion with students from Wheeling Park and The Linsly School. Later, he will visit Magnolia High School in Wetzel County to address students from Magnolia, Paden City, Hundred, and Valley High Schools.
After an explosive debut as an All-American basketball star at Durfee High School in Massachusetts, Herren played at Boston College and Fresno State. Capturing the attention of the NBA, Herren was drafted by the Denver Nuggets. He would also play several seasons for the Boston Celtics. Behind the scenes, alcohol, cocaine, and heroin abuse nearly cost Herren his life.
Leveraging his own experience to educate and inspire young people, Herren tours the country speaking about substance abuse and addiction through his Project Purple program. Project Purple is an initiative of the Herren Project, a non-profit organization founded by Herren to break the stigma of addiction, bring awareness to the dangers of substance abuse, and shed light on effective treatment.
Herren’s presentations on April 9, 2015 are not open to the public. Future public events will be scheduled. Anyone interested in scheduling future events are encouraged to contact the United States Attorney’s Office at (304) 234-0100.
Former Fort Benning Soldier Sentenced for Possessing Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced today that David Schaefer, age 27, formerly of Fort Benning, Georgia, was sentenced on March 31, 2015, to serve 8 years (97 months) imprisonment for possession of child pornography by the Honorable Clay D. Land, United States District Judge in Columbus, Georgia. Mr. Schaefer had entered a guilty plea to these charges on December 8, 2014.
This case was initiated in October, 2013, when the Georgia Bureau of Investigation and the United States Department of Homeland Security Investigations were separately investigating the sharing of child pornography on the Ares peer-to-peer file sharing network. Both agencies downloaded child pornography from a user on the network that was ultimately identified as the defendant, David Schaefer. At that time Mr. Schaefer was an enlisted soldier in the U.S. Army stationed at Fort Benning. The U.S. Army Criminal Investigation Division executed a search warrant on the defendant’s home, resulting in a computer being seized that contained 368 videos and 27 images of suspected child pornography. These were subsequently submitted to the National Center for Missing and Exploited Children (NCMEC), which verified that three images and 46 movies contained sexually graphic depictions of confirmed minors previously identified by law enforcement.
“Child pornography involves the exploitation of the most vulnerable members of society and robs them of both their innocence and dignity at an early age, leaving scars that last a lifetime. My office views prosecutions such as this as one of our top priorities,” said U.S. Attorney Michael J. Moore.
The case was investigated by the Georgia Bureau of Investigation, Army CID and U.S. Homeland Security Investigations. Assistant United States Attorney Crawford L. Seals prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Former Chickasaw Country Club Payroll Clerk Sentenced to 18 Months in Federal Prison for Stealing $736,000Read the Press Release
Memphis, TN – A Memphis woman has been sentenced to 18 months in federal prison for defrauding Chickasaw Country Club of approximately $736,000. There is no parole in the federal prison system.
Sue M. Winfrey, 58, of Memphis, TN was sentenced this morning by United States District Court Judge John T. Fowlkes. Winfrey pled guilty on January 7, 2015 to one count of wire fraud in connection with a scheme to defraud Chickasaw Country Club.
According to the indictment returned in October 2014, beginning in 2003, Winfrey, a former payroll clerk for Chickasaw County Country Club, would submit fraudulent payroll data to Chickasaw’s payroll processor, Paychex of New York. As a result of these falsified submissions, Winfrey received approximately $736,000, which was deposited electronically into Winfrey’s bank accounts at Bank of America.
In addition to the prison sentence, Winfrey was ordered to serve two years of supervised release and pay restitution to Chickasaw Country Club in the amount of $486,000 and to Traveler’s Indemnity Company in the amount of $250,000.
This case was investigated by the United States Secret Service. The government’s case was prosecuted by Assistant U.S. Attorney Carroll L. Andre III.
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Former CEO of Technology Start-Up Sentenced to 24 Months for Wire Fraud SchemeRead the Press Release
SAN FRANCISCO – Jonathan Edward Mills, the former Chief Executive Officer of a San Francisco-based technology company, was sentenced to 24 months’ imprisonment yesterday, and ordered to pay $572,039 in restitution for his involvement in a wire fraud scheme, announced U.S. Attorney Melinda Haag, and FBI Special Agent in Charge David J. Johnson.
Mills, 30, pleaded guilty on October 7, 2014, to two counts of wire fraud, in violation of Title 18, United States Code, § 1343. According to the plea agreement, Mills founded Motionloft, Inc., a technology company, and served as its CEO until he was fired in December 2013. In the plea agreement, Mills also admits he falsely told several individuals that Motionloft was going to be acquired by a well-known Silicon Valley multinational corporation, and that their investment in Motionloft would reap massive profits after the acquisition. Mills made these false representations knowing he had no authority to sell a stake in Motionloft, and knowing no acquisition was in the works. When the fictitious acquisition failed to materialize, Mills made another series of misrepresentations, including claiming there was a delay caused by the government shutdown and by the financial institutions. Mills then spent a substantial amount of the monies his victim-investors gave him for his personal enjoyment, including renting a private jet, a penthouse suite, and lavish vacations.
The sentence was handed down by the Honorable Richard Seeborg, United States District Judge. Judge Seeborg also sentenced Mills to a three-year term of supervised release, and remanded him into custody at the time of sentencing.
Assistant U.S. Attorney Kim A. Berger prosecuted the case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Foreign Corporation and its Managers Plead Guilty to Export ViolationsRead the Press Release
AMA United Group Admits Violation of Arms Export Control Act; Principals Acknowledge Failure to File Shipping Records with U.S. Government Regarding Munitions Destined for Egypt
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York and Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office announced that earlier today, AMA United Group, Malak Neseem Swares Boulos and Amged Kamel Yonan Tawdraus pleaded guilty at the federal courthouse in Brooklyn, New York, to violating U.S. export regulations in connection with the attempted shipment of munitions samples from New York City to Egypt. AMA United Group, an Egyptian procurement agent, entered a guilty plea to violating the Arms Export Control Act. Boulos and Tawdraus, Egyptian citizens and partners in AMA United Group, pleaded guilty to failing to file required export information relating to the international shipment of a landmine and multiple bomb bodies. According to court filings and facts presented during the plea proceeding, Boulos and Tawdraus were arrested after attempting to close a deal to acquire and export the items, which were included on the U.S. Munitions List and regulated by the U.S. Department of State.
“These defendants failed to comply with the strict regulations that govern the export of dangerous munitions,” said U.S. Attorney Lynch. “Today’s convictions should help ensure that those who refuse to follow these obligations should expect to face serious consequences, including individual and corporate penalties.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS and the U.S. Attorney’s Office of the Southern District of New York for its assistance.
“Boulos, Tawdraus and AMA United Group were involved in the illegal export of components vital to explosives in an aerial warhead,” said Assistant Attorney General Carlin. “By purposefully evading U.S. law, including the Arms Export Control Act, the defendants could have done great harm to our nation’s security. I would like to thank the many offices involved in securing this plea agreement.”
“Investigating potential violations of the Arms Export Control Act is a top national security priority for HSI as it ensures military technology such as these landmines do not fall into the wrong hands” said Special Agent in Charge Parmer. “In this instance, our partnership with DCIS and the U.S. Attorney’s office sends a strong message that violating U.S. export laws will not be tolerated.”
“This investigation demonstrates the ongoing commitment that the Defense Criminal Investigative Service has to pursue individuals who are intent on acquiring and illegally exporting military grade munitions,” said Special Agent in Charge Rupert. “DCIS will continue to work with its law enforcement partners, such as HSI and the U.S. Attorney’s Office, to methodically and successfully investigate these types of allegations and protect America’s Warfighters.”
Beginning in February 2011, the defendants began trying to obtain munitions items on behalf of AMA United Group’s client, a factory in Cairo. The items the defendants sought included a land mine as well as bomblet bodies and “trumpet liners,” two components that are integral to manufacturing the housings for explosives in an aerial warhead. In July 2011, the defendants traveled from Cairo to New York City to inspect the items. On July 1, 2011, the three principals of AMA United Group attempted to ship samples to its client in Egypt. Boulos and Tawdraus failed to file any export information in connection with the attempted shipment. The requirement to file accurate information regarding the contents of international shipments is one layer of regulatory oversight pertaining to protecting the U.S. national security and diplomatic interests.
Today’s pleas took place before U.S. District Judge Eric N. Vitaliano of the Eastern District of New York. When sentenced, defendants Tawdraus and Boulos face up to five years in prison, as well as criminal forfeiture and fines. Each of the defendants also faces export sanctions, including the denial of export privileges by the U.S. Department of Commerce, the U.S. Department of the Treasury and the U.S. Department of State.
The government’s case is being prosecuted by Assistant U.S. Attorneys Seth DuCharme and David Pitluck of the Eastern District of New York, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
Foreign Corporation and Its Managers Plead Guilty to Export ViolationsRead the Press Release
Earlier today, AMA United Group, Malak Neseem Swares Boulos, and Amged Kamel Yonan Tawdraus pled guilty at the federal courthouse in Brooklyn, New York, to violating U.S. export regulations in connection with the attempted shipment of munitions samples from New York City to Egypt. AMA United Group, an Egyptian procurement agent, entered a guilty plea to violating the Arms Export Control Act. Boulos and Tawdraus, Egyptian Citizens and partners in AMA United Group, pled guilty to failing to file required export information relating to the international shipment of a landmine and multiple bomb bodies. According to court filings and facts presented during the plea proceeding, Boulos and Tawdraus were arrested after attempting to close a deal to acquire and export the items, which were included on the United States Munitions List and regulated by the United States Department of State.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security, Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; and Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
“These defendants failed to comply with the strict regulations that govern the export of dangerous munitions,” stated United States Attorney Lynch. “Today’s convictions should help ensure that those who refuse to follow these obligations should expect to face serious consequences, including individual and corporate penalties.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, and the U.S. Attorney’s Office for the Southern District of New York for its assistance.
“Investigating potential violations of the Arms Export Control Act is a top national security priority for HSI as it ensures military technology such as these landmines do not fall into the wrong hands” said Special Agent in Charge Parmer, HSI New York. “In this instance, our partnership with DCIS and the United States Attorney’s office sends a strong message that violating U.S. export laws will not be tolerated.”
“This investigation demonstrates the ongoing commitment that the Defense Criminal Investigative Service has to pursue individuals who are intent on acquiring and illegally exporting military grade munitions,” said Special Agent in Charge Rupert, DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners, such as HSI and the U.S. Attorney’s Office, to methodically and successfully investigate these types of allegations and protect America’s Warfighters.”
Beginning in February 2011, the defendants began trying to obtain munitions items on behalf of AMA United Group’s client, a factory in Cairo, Egypt. The items the defendants sought included a land mine as well as bomblet bodies and “trumpet liners,” two components that are integral to manufacturing the housings for explosives in an aerial warhead. In July 2011, the defendants traveled from Cairo to New York City to inspect the items. On July 1, 2011, the three principals of AMA United Group attempted to ship samples to its client in Egypt. Defendants Boulos and Tawdraus failed to file any export information in connection with the attempted shipment. The requirement to file accurate information regarding the contents of international shipments is one layer of regulatory oversight pertaining to protecting the U.S. national security and diplomatic interests.
Today’s pleas took place before United States District Judge Eric N. Vitaliano. When sentenced, defendants Tawdraus and Boulos face up to five years in prison, as well as criminal forfeiture and fines. Each of the defendants also faces export sanctions, including the denial of export privileges by the United States Department of Commerce, the United States Department of the Treasury, and the United States Department of State.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Seth DuCharme and David Pitluck are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
The Defendants:
MALAK NESEEM SWARES BOULOS
Age: 43
Cairo, Egypt
AMGED KAMEL YONAN TAWDRAUS
Age: 33
Cairo, Egypt
E.D.N.Y. Docket No. 13-CR-612 (ENV)
Floridian Sentenced to Prison, Fined for Filing False Income TaxesRead the Press Release
JOHNSTOWN, Pa. - A resident of Palm Beach Fla., has been sentenced in federal court to six months in prison, one year supervised release and a fine of $50,000 on his conviction of filing false income tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Robert Paltrow.
According to information presented to the court, Paltrow filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $4,787,222 in taxable income, resulting in an underpayment of $798,969 in income tax owed to the United States.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Paltrow.
Five Sentenced to Prison for Elaborate Advance-Fee ScamRead the Press Release
PHOENIX – On March 30 and 31, 2015, U.S. District Judge Neil V. Wake sentenced five defendants to prison for stealing more than $11 million through an elaborate advance-fee scam. Judge Wake sentenced Steven Thomas Brewer of Dallas, TX, to 15 years plus eight months of imprisonment; Joel Stephen Cutulle of Middleton, MA, to nine years of imprisonment; Kenny Ray Kirby of Corinth, TX, to five years of imprisonment; Debra Ann Nickolas of Stanbury Park, UT, and formerly of Scottsdale, Ariz., to five years of imprisonment; and David P. Rachel of Mableton, GA, to three years of imprisonment. Steven Brewer, Joel Cutulle, Kenny Kirby, and David Rachel were found guilty by a federal jury on Oct. 8, 2014, of charges including criminal conspiracy, wire fraud, and money laundering. Debra Nickolas pleaded guilty on Aug. 11, 2014, to conspiracy and tax evasion.
Evidence at trial showed that the defendants stole more than $11 million by using fake companies-including Platinum Diversified Holdings (PDH) and HS&H Holdings-through which the defendants claimed they could secure loans for the victims’ business projects. At the time of the offense, Debra Nickolas lived in Scottsdale, Ariz., and two of the victims were from Arizona.
In exchange for purportedly securing the loans, the defendants demanded refundable deposits, which were supposed to be held in an attorney’s escrow account until the loans funded. In reality, the attorneys, Kenny Kirby and David Rachel, were co-conspirators who transferred the victims’ money to themselves and their co-conspirators, often within days. The victims’ money was spent on cars, luxury vacations, interior design services, tickets to sporting events, and other personal items. The scheme continued for years, with the defendants concealing the fraud by providing the victims false bank documents and other assurances to convince them that funding was imminent. The defendants never funded any business loans and the victims never received any of their money back.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by James R. Knapp and Karen S. McDonald, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1927-PHX-NVW
RELEASE NUMBER: 2015-029_Nickolas et al
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.
Federal Inmate Sentenced for Assault with Intent to Commit MurderRead the Press Release
Inmate Michael Vaught Assaulted With the Intent to Commit Murder
a Federal Officer at the United States Penitentiary LeeABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that a federal inmate currently serving a prison sentence at United States Penitentiary Lee has been sentenced to serve additional federal time after he assaulted a federal correctional officer.
Michael Vaught, age 43, was sentenced in the United States District Court for the Western District of Virginia in Abingdon on March 31, 2015, for assault with the intent to commit murder. Vaught, who is currently serving a 368 month aggregate term of imprisonment for felon in possession of a firearm and assault with intent to commit murder for convictions arising out of the United States District Court for the Southern District of Indiana, was sentenced to serve an additional 240 months of federal incarceration for his assault on the officer.
According to evidence provided by Special United States Attorney Debbie Stevens, on August 17, 2014, Vaught threw scalding hot liquid on the federal correctional officer and stabbed the officer multiple times with a prison made ice pick style weapon that was approximately 9 inches long and sharpened to a point.
The investigation was handled by the Federal Bureau of Investigation and Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Father of Marysville School Shooter Charged with Illegal Firearms PossessionRead the Press Release
The father of a teen who killed four students and himself last year at Marysville-Pilchuck High School was arrested today on charges that he illegally purchased the firearm used in the mass shooting, announced Acting United States Attorney Annette L. Hayes. RAYMOND LEE FRYBERG, 42, is charged with unlawful possession of a firearm by a prohibited person in connection with the Beretta, model PX4 Storm, he purchased in January 2013. At the time of the purchase FRYBERG was the subject of a permanent protection order that prohibits him from possessing firearms. However, FRYBERG lied on forms at the time of the purchase stating he was not subject to a protection order. In fact, just four months earlier, FRYBERG admitted in tribal court that he had violated the protective order and thus he knew that he was subject to its terms. FRYBERG will appear in U.S. District Court in Seattle today, March 31, 2015, at 2:00 PM.
“Guns in the hands of people who have demonstrated they will use violence is a dangerous mix that is prohibited by law,” said Acting U.S. Attorney Annette L. Hayes. “Our office has a long history of working with our federal, state, local and tribal law enforcement partners across Western Washington to prosecute those who illegally possess firearms. This case is part of that effort and a reminder that we are united in our commitment to get firearms out of the hands of those who pose the greatest risk to our communities.”
According to the criminal complaint filed in the case, in 2002, FRYBERG’s then-girlfriend asked the Tulalip Tribal Court for an order of protection alleging FRYBERG had recently threatened her and had in the past physically assaulted her by hitting, slapping and/or pulling her hair. The protection order was made permanent in September 2002 and had no expiration date. In September 2012, FRYBERG was back in tribal court and pleaded “no contest” to violating the protection order. FRYBERG was fined and placed on probation for one year. Less than four months later, FRYBERG went to Cabela’s Sporting Goods store on the Tulalip reservation and purchased the Beretta, and, over subsequent months, four other firearms. FRYBERG filled out forms for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) stating that he was not the subject of any court order restraining him from harassing, stalking, or threatening an intimate partner or the child of a partner. The form states that anyone subject to such an order is prohibited from purchasing a firearm. The complaint alleges FRYBERG lied when he filled out the form.
On October 24, 2014, FRYBERG’s son, 15-year-old Jaylen Fryberg, used the illegally purchased Beretta to kill four other students and himself at Marysville-Pilchuck High School in Marysville, Washington. Fryberg’s cousin was critically injured but survived.
The case was investigated by the FBI, the Tulalip Tribal Police Department. The case is being prosecuted by Assistant United States Attorneys Ye-Ting Woo and Bruce Miyake.
Former Corporate Executives of Samarion, INC., Plead Guilty to Conspiracy to Defraud InvestorsRead the Press Release
Jackson, Miss – Mark E. Rodgers, 52, currently of Houston, Texas, and the former Chief Executive Officer and President of Samarion Solutions, Inc., in Ridgeland, MS pled guilty on March 25, 2015 before U.S. District Court Judge Daniel P. Jordan III to one count of conspiracy to defraud investors in the sale of securities (18 U.S.C. §371), announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
Samer N’Ser, 53, from Ridgeland, MS, the former Chief Technology Officer of Samarion Solutions, Inc., entered a guilty plea before U.S. District Judge Daniel P. Jordan III on January 27, 2015 to the same charge
According to the indictment in this case, from approximately 2006 through 2009, Rodgers and N’Ser conspired to intentionally mislead Samarion, Inc. investors in Mississippi, Alabama and elsewhere. Samarion, Inc., formerly known as Valence Broadband, Inc., was a corporation operating out of Madison County, Mississippi. The business plan of the company was to produce a viable monitoring system, commonly referred to as the "Samarion Solution", for installation in nursing homes and elsewhere that could predict when a patient might fall, prevent abuse and/or neglect by staff, and improve the over-all care of nursing home patients.
Both Rodgers and N’Ser were involved in the offer and sale of stock to investors. They conspired to fraudulently misrepresent to potential investors material facts that would affect their decision to invest, including but not limited to the financial strength of the company and the true functionality and capacity of the product, among other things. The indictment alleges that Rodgers and N’Ser engaged in a course of business which operated as a fraud and deceit upon the purchasers of the stock, using wire communications and the U.S. Mail to further that activity.
The indictment also alleges that Rodgers and N’Ser sold stock to investors representing that the investment funds would be used solely for the business purposes of the company, and instead used some of the money for their own personal benefit, including personal loans to each,
an unauthorized bonus for Rodgers, and the purchase of a 2007 Land Rover SUV titled in Rodgers’ name. The indictment further alleges that N’Ser and Rodgers fraudulently used Samarion investor funds to loan approximately $500,000 to C First Class Corporation, a company that was unrelated to Samarion or its business purpose, but for which Rodgers also served as a board member. The indictment alleges that Rodgers fraudulently concealed his personal interest in that company from the Samarion Board of Directors.
FBI SAC Don Alway stated: "This case is an example of the positive results we achieve by working with our state and local partners. We appreciate the effort of everyone involved in successfully investigating and prosecuting this case."
Joseph Borg, Director of the Alabama Securities Commission said, "I want to thank the Office of Greg Davis, United States Attorney for the Southern District of Mississippi; the Federal Bureau of Investigation; the Office of Robert L. Broussard, Madison County, Alabama District Attorney; the Madison County, Alabama Sheriff’s Department and the Alabama Securities Commission staff for working together to ensure this conviction and to see that justice was served for the victims. The successful prosecution demonstrates the outstanding results that are achieved when federal, state and local law enforcement work together."
The defendants will be sentenced on June 15, 2015 at 9:00 a.m. The maximum penalty for conspiracy is five years in prison and a fine of up to $250,000.
Assistant United States Attorney Carla J. Clark, Chief of the Criminal Division, is prosecuting the case for the government. Agents from the FBI, the Alabama Attorney General’s Office and the Alabama Securities Commission are assisting in the case.
Ex-Pharmacist Sentenced for Illegal Dispensation of DrugsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Larry Steven Patton, 64, of Marion, Illinois, was sentenced today, on a charge of Illegal Dispensation of a Controlled Substance. The United States District Court in Benton sentenced Patton to probation for three years, a fine of $3,000, and a special assessment of $100. The court also ordered Patton to perform 25 hours of public service.
Court records indicate that at relevant times, Patton was an owner and a pharmacist of Medicap Pharmacy in Saline County, Harrisburg, Illinois. As a licensed pharmacist, Patton was a registrant authorized to dispense controlled substances. Patton admitted to knowingly and intentionally dispensing unlawfully four pills, each having two milligrams of Xanax, a Schedule IV controlled substance to another person requesting the medication, on July 12, 2012, at the Medicap Pharmacy in Harrisburg. Patton admitted that this dispensation was outside the scope of his professional practice and not for a medical purpose under a valid prescription.
The case was investigated by the Drug Enforcement Administration and the Illinois State Police. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Essex County, New Jersey, Man Sentenced to 135 Months in Prison in Multi-Million Dollar Real Estate Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 135 months in prison for running a real estate investment scheme that bilked victims out of more than $5 million, U.S. Attorney Paul J. Fishman announced
Abbe Edelman, 51, of Livingston, New Jersey, previously pleaded guilty before U.S. District Judge Susan Wigenton to an information charging him with one count of wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
For roughly a decade, Edelman conducted an elaborate real estate investment fraud Ponzi scheme, duping victim-investors to provide him with money purportedly to buy and sell real estate and earn large returns on their investments. Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had longstanding relationships with banks that provided him with unique access to purchase foreclosed properties at below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.
Edelman promised investors that any investment would be used solely for the purchase, renovation or sale of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman told his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. He purportedly told some victims that he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he had provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.
In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him more than $5 million; none of it was used to fund any real estate acquisitions or renovations, but was instead diverted for his own use.
Edelman used his victims’ money for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills. He purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion, and paid his legal expenses in connection with victims seeking repayment of their investment.
When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account that he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.
In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.
In addition to the prison term, Judge Wigenton sentenced Edelman to serve three years of supervised release and pay $3,121,279 in restitution to his victims. Judge Wigenton also ordered a money judgment against Edelman in the amount of $3,121,279, representing the proceeds of Edelman’s fraudulent scheme, and forfeiture of Edelman’s interest in certain assets previously seized by the government, including approximately $79,000 and a 2014 Audi.
U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the Economic Crimes Unit.
Defense Counsel: William J. Rush, Wayne, New Jersey
Eleven Individuals Indicted for Wire FraudRead the Press Release
SAN JUAN, P.R. – On March 25, a Federal grand jury returned a twenty-three count indictment charging eleven individuals for conspiracy to commit wire fraud and wire fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Secret Service and the Puerto Rico Police Department are in charge of the investigation.
Beginning in or about June 2008 and continuing to in or about October 2011, the defendants devised a scheme and artifice to defraud AMGEN, a multinational biopharmaceutical company located in Juncos, Puerto Rico. The purpose of the conspiracy was for defendants to enrich themselves by using the AMGEN American Express Purchasing Credit cards (PCards) and purchase requisition process to obtain payments for fictitious purchases and split the proceeds paid by AMGEN for these fictitious purchases and/or services that were never actually rendered or received.
The defendants are: Joel Merced-Mercano, Héctor Santiago-Rodríguez, Efraín Rivera-Romàn, Pablo López, Hernàn Torres-Gómez, Joel Díaz-Rosario, Mitza Vàzquez-Meléndez, Juan L. Carreras, Marielexy Cestary-Roldàn, Carlos Calderón-Díaz, and Lourdes Colón-Colón.
“Some of the defendants had the duty and responsibility to ensure that AMGEN’s facility was able to properly operate twenty four hours a day, seven days a week; but instead, they misused their positions of trust within the company to commit fraud to enrich themselves illegally,” stated Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “AMGEN suffered a loss of over $1.6 million as a result of the scheme; those responsible for this loss will be held accountable for their corrupt actions.”
If convicted, the defendants face a maximum possible sentence of 20 years. The case is being investigated by the Secret Service with the collaboration of the Puerto Rico Police Department, and prosecuted by Assistant United States Attorney Julia Meconiates. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Detroit Man Sentenced for Robbing Iraqi DiplomatRead the Press Release
A Detroit resident was sentenced yesterday in federal court to more than eight years in prison for his role in an armed robbery of an Iraqi diplomat and his wife, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Division, Special Agent in Charge David R. Eberhardt, Diplomatic Security Service and Chief Michael Patton, West Bloomfield Police Department.
U.S. District Judge Paul D. Borman imposed sentence on James Frederick Dubose, 24, to a mandatory minimum sentence of 84months in prison for using a firearm during a crime of violence and a consecutive sentence of 20 months in prison for assault of a foreign official using a deadly weapon. Dubose had pleaded guilty to these two offenses in December. At sentencing, Dubose was also ordered to pay $4,150 in restitution to the victims.
According to the documents filed in this case, on November 11, 2012, the defendant and his co-defendant targeted the victims, an Iraqi diplomat and his wife, as they were shopping at the Meijer store in Southfield, Michigan. The defendants then followed the victims to their residence. Dubose and his co-defendant approached the victims inside the garage after the victims had exited their vehicle. Dubose held the victims at gunpoint, threatened to shoot them and stole their jewelry. Dubose and his co-defendant then ran from the garage and fled the scene. Dubose was arrested by Southfield Police on November 23, 2012, in possession of the same firearm used in the armed robbery.
The investigation of this case was conducted by the Federal Bureau of Investigation, the United States Department of State Diplomatic Security Service, and the West Bloomfield Police Department. The case was prosecuted by Assistant U.S. Attorneys Ronald W. Waterstreet and Cathleen M. Corken
Delaware County Nightclub Owners Plead Guilty to Tax and Fraud ChargesRead the Press Release
PHILADELPHIA – Romeo Callueng, 45, and Susan Callueng, 43, of Woodlyn, PA, pleaded guilty on March 26, 2015 to tax evasion and fraud in connection to a health care benefit program. The Calluengs, who owned the “Club 27” nightclub at 27 Bank Street in Philadelphia, were receiving assistance from Medicaid and LIHEAP (Low Income Heating and Energy Assistance Program) despite making substantially more than the maximum income eligibility. Each defendant pleaded guilty to one count of fraud and four counts of tax evasion for evading income taxes in 2006, 2007, 2008, and 2009.
The Calluengs listed Club 27 for sale through a realtor in 2009. Undercover IRS agents met with the realtor in 2009, posing as buyers. They were provided income statements that had been prepared by defendant Susan Callueng, in which the defendant asserted that the club had profits of about $400,000 per year in 2007 and 2008, and almost $300,000 for the first eight months of 2009 (an annualized rate of about $450,000). The undercover agents then met with both the defendant and her husband. Both Romeo Callueng and Susan Callueng explained to the agents, in consensually recorded conversations, that they did not report all their income to “Uncle Sam” and that they preferred cash registers to the POS system because of the lack of records. Romeo Callueng explained to the undercovers that “it’s book number one and book number two.” He told the agents that they kept track of their income, but they did not record it, because “you want to hide as much as you can.”
During a meeting with both of the Calluengs, Romeo Callueng explained to the undercover agents that his wife could teach them how to run the business so that they would not be “throwing red flags” to “Uncle Sam.” Defendant Susan Callueng was asked about the income statements that she had prepared, and asked what portion is “off the books.” She replied, “Everything is off.” She then opined that “everybody in this business is off the books.” She stated that they report a “bare minimum” of income to the Department of Labor in order to avoid putting a “red flag up there.” She also told them that she destroys the records related to receipts because she does not want records to be available. The defendants paid their employees and their expenses out of cash, in order to avoid making excessive deposits and to avoid generating records of their expenses which could trigger government attention.
The defendants had also applied for and received both LIHEAP and Medicaid. On the applications for these benefits, defendants claimed income varying from $100 each per week to $700 per week, significantly below the actual profit they earned from Club 27. The income that they were actually earning from Club 27 greatly exceeded the maximum income for eligibility for either of these federally funded programs. In order to apply for these benefits, the defendants were required to submit proof of their income. They attached letters on Club 27 letterhead, purportedly signed by the manager of the Club. However, the manager never signed those letters.
U.S. District Court Judge Mark A. Kearney scheduled a sentencing hearing for June 26, 2015. Each defendant faces a maximum possible statutory sentence of 25 years in prison with an estimated advisory sentencing guideline range of 18 to 24 months, plus restitution to the IRS, a possible fine of up to $1.25 million, a $500 special assessment, and three years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Office of Inspector General for the Department of Health and Human Services. It is being prosecuted by Assistant United States Attorney Nancy Rue.
Download indictment_-_rossid.pdf
Defendant Sentenced for Email Extortion SchemeRead the Press Release
Executed Extortion Scheme from Prison
RICHMOND, Va. – Christopher J. Burruss, 37, of Toano, Virginia, was sentenced today to 24 months in prison, followed by one year of supervised release for Interstate Threat to Injure the Reputation of Another, in violation of 18 U.S.C. § 875(d).
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Richmond Division, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer.
Burruss pled guilty on October 21, 2014. According to court documents, the victim of the scheme, T.N., is an attorney who previously represented Burruss in an Eluding Police and Driving Under the Influence (First Offense) criminal case in New Kent County, Virginia. In November 2010, Burruss went to trial and was convicted on both offenses. In November 2012, Burruss filed a Habeas Corpus Petition in state court, alleging ineffective assistance of counsel by T.N. After a hearing on the matter, the Virginia Circuit Court with jurisdiction over the case rejected Burruss’s challenge. He appealed and the case was set for oral argument before the Virginia Supreme Court on February 11, 2014.
As part of his guilty plea, Burruss admitted that on September 12, 2013, he filed a Virginia State Bar complaint against T.N. Among other allegations, Burruss stated that he believed that T.N. had mishandled the New Kent County criminal case and had inappropriate communications and contact with Burruss’s friend, S.B., and another woman leading up to and after the criminal case that affected T.N.’s representation. Included with the complaint, Burruss attached several embarrassing email and text messages between T.N. and three other women. Also included were affidavits from S.B. and another woman detailing some of their interactions with T.N. before and after the New Kent County criminal case. These emails, text messages, and affidavits later served as the basis for Burruss’s extortionate threats against T.N.
From January 23-26, 2014, Burruss, with the assistance of S.B., began a direct email exchange with T.N. in which Burruss communicated extortionate demands. In a series of three emails, his demands evolved, ultimately requiring that to avoid disclosure of the embarrassing communications to the press, T.N. would have to submit an affidavit to the Virginia Supreme Court admitting he mishandled Burrus’s the New Kent County criminal case and repay almost $20,000 in legal fees incurred by Burruss in connection with that case.
Burrus’s guilty plea was premised on the following extortionate communication that he caused to be sent on January 24, 2014, in response to a series of questions from T.N.:
Hi [T.N.]-
In response to your letter this morning Chris is seeking that you write an affidavit to be submitted to the Supreme Court admitting that you mishandled the case. He is also seeking complete restitution, which would include your retainer and the $20,000 in legal fees since then. In the event that the DUI fine remains in effect he asks that you pay that, as well. Neither of the affidavits from [C.E.] or myself were submitted to the court. They are not yet public record, however Chris intends to move forward on Monday afternoon. As far as the Bar is concerned we all know they would prefer to keep all of this very quiet.
Best regards-
[S.B.]
After receiving the final email on the afternoon of January 26, 2014, T.N. had no further communication with Burruss or S.B. T.N. reported this matter to federal and state authorities, which led to the current prosecution.
The case was investigated by the FBI’s Richmond office. Assistant United States Attorneys Michael Gill and Heather Hart are 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. 3:14-cr-135.
Defendant Sentenced to Serve 48 Months in Federal Prison and Pay Millions in Restitution for Violating the CAN-SPAM ActRead the Press Release
DALLAS —Milos Vujanic, 34, who was convicted for his role in what U.S. District Judge Sidney A. Fitzwater previously called “a massive, complicated, multi-year scheme to defraud a large number of victims,” was sentenced this week to 48 months in federal prison and ordered to pay approximately $17.3 million in restitution. Acting U.S. Attorney John Parker, of the Northern District of Texas, made the announcement today.
Vujanic pleaded guilty in December 2014 to a superseding information charging one count of fraud and related activity in connection with electronic mail (CAN-SPAM Act).
A citizen of Serbia, Vujanic was arrested in May 2012, in Paris, France. After a lengthy extradition process, Vujanic first appeared in the U.S. District Court in the Northern District of Texas in April 2014.
Nineteen defendants were originally charged in this massive telecommunications fraud conspiracy. Two of the defendants, Nathan Todd Shafer, 32, of Irving, Texas, and Matthew Norman Simpson, 26, of Red Oak, Texas, were convicted in December 2011 following a 10-week trial before Judge Fitzwater.
Simpson was sentenced to 40 years in federal prison and ordered to pay restitution of approximately $17.6 million and a forfeiture money judgment of the same amount. In addition, the Court also forfeited specific assets such as precious metal certificates worth approximately $3 million and additional cash and computer equipment worth an additional $2 million. Simpson was convicted on one count of conspiracy to commit wire fraud and mail fraud, one count of fraud and related activity in connection with electronic mail, one count of obstruction through destruction of evidence and one count of false registration of a domain name. Additionally, shortly after Simpson’s conviction at trial, the Court entered an order finding that Simpson committed perjury during his testimony.
Shafer, who was convicted on one count of conspiracy to commit wire fraud and mail fraud, was sentenced to nine years in federal prison and ordered to pay approximately $3.3 million in restitution as well as a forfeiture money judgment of the same amount.
Michael Blaine Faulkner, of Southlake, Texas, was sentenced to 30 years in federal prison and ordered to pay approximately $18.2 million in restitution, a forfeiture money judgment of the same amount, and forfeit a host of computer equipment. Faulkner pleaded guilty in October 2011 to one count of conspiracy to commit wire and mail fraud and one count of obstruction through hiding assets. His wife, Chasity Lynn Faulkner, who also pleaded guilty in October 2011 to one count of conspiracy to commit electronic mail, postal mail and wire fraud, and was sentenced to 60 months in federal prison.
According to documents filed in the case Michael and Chasity Faulkner fled to Mexico in 2009 after they learned of the FBI’s investigation into their activities. They lived in Mexico, under assumed aliases, until January 2010 when they were arrested and returned to the U.S. to face charges.
One defendant remains a fugitive and is believed to be living outside of the U.S. Two defendants were acquitted at trial. Of the remaining defendants, all have pleaded guilty and been sentenced.
In March and April 2009, the FBI executed numerous search and seizure warrants at locations including the Faulkner’s residence in Southlake, Faulkner’s business known as Crydon located at 1950 Stemmons Freeway in Dallas, Matthew Simpson’s residence, a business operated by Simpson known as Core IP located at 2323 Bryant Street in Dallas, and at other related businesses.
During trial, the government presented evidence that Shafer, Simpson and their coconspirators conspired to defraud various telecommunications companies including AT&T; Verizon; XO Communications; Excel Communications; Waymark Communications; Bandwidth.com; CommPartners; the lessors of properties at 2020 Live Oak, 2323 Bryan Street and 1950 Stemmons Freeway in Dallas; leasing companies and creditors, including Wells Fargo and AT&T Capital Services; credit reporting agencies; and various other service providers, such as power companies, insurance companies, air-conditioning companies, and web site developers and others for goods and services amounting to more than $20 million.
The conspirators also made false representations to obtain goods, such as computers and telecommunications equipment and infrastructure, to include racks to hold computer equipment, generators to provide power for the equipment, and office space to install the equipment, as well as services related to the operation and use of computers and telecommunications. The conspirators created, purchased and used shell companies to hide the identity of the owners or operators of the companies, or the relationships between the companies. The conspirators paid persons including homeless persons for the use of their identities to “act” as the officers, directors or managers of the shell companies. They also used P.O. Boxes, commercial remailer services, shell offices, apartments or other physical locations to hide owners’ or operators’ identities or the relationships between the companies. They assumed other identities to hide true ownership of the shell companies and made materially false representations to their victims, by mail, fax, telephone, email or other communications, to obtain goods and services from them. In addition, the coconspirators ran a data center that provided a safe haven for those engaged in the sending of SPAM, hiding the senders’ information from law enforcement and other regulators. Vujanic worked for Faulkner and he assisted in the SPAM fraud by 1) ensuring the networking equipment and computers were operational, 2) setting up the telephone systems in the office; 3) providing false information to creditors; 4) providing false information to regulators such as ARIN (American Registry of Internet Numbers); and 5) providing false information to customers and suppliers.
The case was investigated by the FBI, with assistance from the Texas Workforce Commission, the Texas Secretary of State, the Dallas Police Department, the Southlake Police Department, Dallas Sheriff’s Office, Ellis County Sheriff’s Office, the Duncanville Police Department, the Longview Police Department, the New Orleans Police Department, the American Registry for Internet Numbers (ARIN), the Federal Trade Commission, the Federal Communication Commission and various state public utility commissions.
Cushing Woman Pleads Guilty to Making A False StatementRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Crystal Burch, 22, of Cushing, Maine, pled guilty today in U.S. District Court to making a false statement to a government agency.
According to court records, in June 2014, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was investigating Burch’s then-boyfriend for the illegal possession of firearms. In 2013, Burch purchased several handguns from a local firearms dealer and ATF agents were trying to determine whether Burch’s boyfriend possessed any of them. Burch falsely told an ATF agent that she had transferred the handguns to her boyfriend’s father. Later the same day other ATF agents found her boyfriend in possession of two of the handguns.
Burch faces a sentence of up to five years in prison, a $250,000 fine and three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the ATF.
Constitutional Rights Lawsuit Dismissed in Favor of CBP OfficersRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that a Final Judgment on the Pleadings was granted in favor of defendants Dennis Jacobs, U.S. Customs and Border Protection (CBP) Officer, and seven "John Doe" and "Jane Doe" CBP officers in Yu Min Zhao v. Dennis Jacobs, et al. , Civil Case No. 13-00028 (D.N. Mar. I.). The plaintiff filed a Bivens lawsuit against the CBP officers, claiming that the officers violated her right to be free from excessive force and her right to equal protection during the immigration inspection process.
The U.S. Attorney's Office, on behalf of Officer Dennis Jacobs, filed a motion arguing that Officer Jacobs was entitled to a judgment in his favor because, even though he was named in the lawsuit, he was not accused of any wrong doing. In fact, he was not present during the timeframe of the allegations in the Complaint. Further, CBP's inquiry into an alien's purpose for entering the NMI and the detention and removal of an inadmissible alien (in this case, for indications of an intention to overstay the visa waiver) are part of CBP's duties under immigration laws. On January 12, 2015, the District Court for the NMI granted the judgment on all grounds. The court held that Officer Jacobs was protected under the law as a federal employee because none of the allegations tied him to any constitutional violations. The court also found that the relief requested by the plaintiff- an injunction and a declaratory judgment- is barred under Bivens law. Ultimately, the court found that the true nature of the lawsuit was a challenge to CBP's determination of the plaintiff's inadmissibility to enter the NMI rather than constitutional violations, which is also not permitted under Bivens law.
The court gave the plaintiff an opportunity to amend her complaint, and she failed to do so. On March 20, 2015, the court entered a final judgment on all grounds in favor of Officer Jacobs and the other unnamed officers.
U.S. Attorney Alicia A.G. Limtiaco stated, "Bivens law permits federal employees to be sued in their personal capacities for actions taken during the course of their official duties. Protection of federal employees for legitimate actions performed in the course of their official duties is critical to the effectiveness of the federal government. As noted by the Supreme Court in Anderson v. Creighton, 483 U.S. 635 (1987), Bivens lawsuits exact substantial social costs, including 'expenses oflitigation, the diversion of official energy from pressing public issues, and the deterrence of able citizens from acceptance of public office.' In cases such as this where the government demonstrates that legitimate actions were taken in the course of one's official duties and that the complaint against the individuals is without merit, dismissal is the appropriate and just remedy."
This case was defended by Assistant U.S. Attorneys Jessica F. Cruz and Mikel W. Schwab.
Community leaders collaborate to present drug awareness education to Harrison County, WV studentsRead the Press Release
WHEELING, WEST VIRGINIA – On Thursday, April 2, 2015, community leaders will present drug abuse awareness programming to high school students across Harrison County, West Virginia in a continued effort to combat the trend of increasing drug overdoses across the Mountain State.
“Drug addiction has infiltrated societies across West Virginia with an unforgiving grip. It is critical for young students to participate in straightforward, honest discussions about the reality of drug abuse,” said United States Attorney William J. Ihlenfeld, II. “Our state leads the nation in drug overdose deaths. The more we can address younger audiences, the better chance we have to reverse the trend of substance abuse and overdoses in our region. We commend the Harrison County Board of Education for collaborating with local community leaders to present drug education to the area high schools. These types of presentations are critical to position our young for future success.”
Presentations are scheduled on Thursday, April 2, 2015, for all students at Bridgeport High School (8:30AM), Lincoln High School (9:45AM), South Harrison High School (12:00PM), Robert C. Byrd High School (12:50PM), and Liberty High School (2:00PM). Students will hear presentations from the United States Attorney’s Office, the United States Drug Enforcement Administration, as well as panel discussions coordinated by the Harrison County Prevention Partnership. The presenters will utilize a variety of techniques, including screening of thought-provoking documentary films. Additionally, a group of current and former West Virginia University athletes and coaches have partnered with the United States Attorney’s Addiction Action Plan to place a spotlight on drug abuse. Several of those athletes will participate in tomorrow’s presentations.
The aforementioned presentations are all part of the United States Attorney’s Addiction Action Plan for North Central West Virginia, a collaborative effort comprised of thought leaders from various disciplines. The goals of the plan include decreasing heroin use, promoting improved access to quality substance abuse treatment, choking off the supply of heroin to the region, and making West Virginia stronger, safer, and healthier. Providing impactful and effective drug education to West Virginia students is a key component of the action plan. Anyone interested in scheduling future events or obtaining additional information is encouraged to contact the United States Attorney’s Office at (304) 234-0100.
Colorado Springs Business Owner Charged with Filing False Returns and Structuring DepositsRead the Press Release
DENVER – Lisabeth Melahn, age 53, of Colorado Springs, Colorado, was indicted by a federal grand jury on March 26, 2015 on charges of filing false income tax returns and structuring cash deposits to evade reporting requirements, announced United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Steven A. Osborne. Melahn is scheduled to appear before a U.S. Magistrate Judge on April 10, 2015 to respond to the charges.
According to the indictment, Melahn, the owner of a Colorado Springs business, Tan Your Hide, subscribed personal income tax returns for the 2008 through 2010 tax years, knowing that the income from her S-corporation, Tan Your Hide II, listed on those tax returns was substantially understated.
In addition, the indictment charges that on 8 separate occasions between March 31, 2010 and July 8, 2010, Melahn caused cash deposits totaling over $10,000 to be made to her personal account at American National Bank which were split in order to circumvent the requirement that currency transactions of over $10,000 be reported. The split deposits were made either at different times on the same day or on two consecutive days. The total of the structured deposits alleged in the indictment totaled over $100,000.
“Filing true and timely income tax returns is not only a civic duty, it is also a legal obligation,” said U.S. Attorney John Walsh. “Those who evade paying income taxes, either by not filing, or in this case, by not providing accurate income information, can end up being prosecuted to the fullest extent of federal law.”
“As April 15 is approaching, this should serve as a reminder to all taxpayers that they should file complete, timely, and accurate tax returns or they could face significant penalties; and those individuals who goes as far to commit tax fraud may find themselves facing jail time,” said Acting Special Agent In Charge Steven A. Osborne of IRS-Criminal Investigation, Denver Field Office.
Melahn was charged with three counts of subscribing to a false income tax return, each of which carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000. She is also charged with eight counts of structuring deposits to evade the CTR reporting requirements. Because the alleged structuring involved more than $100,000 in a 12-month period, the charges carry a penalty of not more than 10 years in federal prison and a fine of up to $500,000 per count. Included in the indictment is a notice of forfeiture for any property traceable to the structuring charges alleged in the indictment.
This case was investigated by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Linda Kaufman.The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Colorado Man Sentenced to Prison and New Hampshire Man Pleads Guilty to Conspiracy to File False Tax Returns, Both in Connection with Defrauding a Dubuque College BookstoreRead the Press Release
On Monday, March 30, 2015, a former director of the Clarke University bookstore in Dubuque, Iowa, who used a fictitious book supply company to falsely bill the University for more than $300,000.00, was sentenced to 57 months in prison in federal court in Cedar Rapids. James Spaulding, age 35, from Longmont, Colorado, was convicted of one count of mail fraud and two counts of filing false tax returns.
On Tuesday, March 31, 2015, Spaulding’s friend and co-conspirator from Concord, New Hampshire, Thomas DeFelice, age 38, pled guilty to conspiracy to falsify corporate and personal tax returns in relation to falsely reporting the income from the fraud.
In plea agreements, Spaulding and DeFelice admitted Spaulding was the director of the Clarke University Bookstore between 2011 and 2012. Spaulding and DeFelice created a fictitious corporation called RVP Wholesale Books (“RVP”), then caused RVP to issue false invoices to Clarke University purporting to show that RVP supplied the Clarke University bookstore with books. In truth, RVP never supplied the Clarke University bookstore with any books. Spaulding and DeFelice split the proceeds of the fraud, totaling more than $302,000.00. Spaulding convinced DeFelice that there were, in fact, books purchased through RVP and delivered to Clarke University. DeFelice agreed with Spaulding, however, to falsely inflate the purported cost of goods sold so as to fraudulently decrease RVP’s and their personal tax liabilities. Spaulding and DeFelice therefore filed false tax returns for 2011 and 2012 in which they failed to disclose the illegal proceeds obtained from the fraud. Spaulding later lied to a federal grand jury in Cedar Rapids, Iowa, by falsely claiming RVP supplied the Clarke University bookstore with books.
Spaulding was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Spaulding was sentenced to 57 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $318,900.55 in restitution to Clarke University. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Spaulding is being held in the United States Marshal’s custody until he can be transported to a federal prison.
DeFelice entered his guilty plea before United States Chief Magistrate Judge Jon Stuart Scoles. Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. DeFelice remains free on bond pending sentencing. DeFelice faces a possible maximum sentence of three years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The cases are being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Dubuque Police Department and the Internal Revenue Service Criminal Investigation Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 14-CR-1022-LRR for Spaulding and 15-CR-1005-LRR for DeFelice.
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Chicago Man Sentenced for Southern Illinois Crack Cocaine OffenseRead the Press Release
On March 25, 2015, Maurice L. Christian, a/k/a "Reece," 26, of Chicago, was sentenced on a federal crack cocaine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Christian, who had previously pled guilty to a one-count indictment, charging conspiracy to distribute crack cocaine, was sentenced to 140 months in federal prison, to be followed by 3 years of supervised release, and fined $200.00. The offense occurred between 2013 and March 2014, in Jackson County. Evidence at the plea and sentencing hearings established that Christian was involved with co-defendant Johnathan T. Buck, a/k/a "Buffalo," and others in the distribution of crack cocaine in Carbondale. Buck, Christian, and their associates were transporting crack cocaine from northern Illinois to Carbondale for distribution. On multiple occasions, Buck and Christian sold crack cocaine to a confidential source working for law enforcement. At sentencing, the district court found that Christian was responsible for 493 grams of crack cocaine. Christian’s sentence was enhanced because he possessed a firearm during his participation in the crack cocaine offense. Buck was previously sentenced to 120 months for his role in the crack cocaine conspiracy.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Carbondale Police Department, and Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Andre Owens, 49, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine, before U.S. Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between June 2013 and February 25, 2014, the defendant conspired with others to buy and sell crack cocaine in the City of Buffalo.
Also charged in this case are co-defendants Anthony McCutcheon, Troy Cooley, Deandre Sparks, Williams Jefferson, Markiel Hall, Morrell Buster, Alicia Maghett and Carmella Rivera. Sparks and Hall have been convicted. Charges are pending against McCutcheon, Cooley Jefferson, Buster, Maghett and Rivera. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Federal Bureau of Investigation and the Lackawanna Police Department, under the direction of Chief James Michel.
Sentencing is scheduled for July 29, 2015 at 9:00 a.m. before Judge Skretny.
Bucks County Real Estate Investor Arrested on Fraud ChargesRead the Press Release
PHILADELPHIA - Dean Rossi, 49, of Warrington, PA, was arrested today in connection with an alleged mortgage fraud scheme, announced United States Attorney Zane David Memeger. Rossi, a real estate investor who owned numerous low-income properties throughout the Philadelphia area, was charged by indictment, unsealed today, with conspiracy, mail fraud affecting a financial institution, and bank fraud.
The indictment alleges that Rossi misappropriated in excess of $643,000 from real estate closings. After obtaining bank loans to purchase or refinance residential properties, Rossi allegedly teamed up with title/closing agents to divert a substantial portion of the loan proceeds. According to the indictment, Rossi received cash from the settlements that otherwise should have been used to pay off prior mortgages and tax liens on certain properties. To prevent the scheme from being detected, Rossi allegedly continued to cause payments to be made on the prior existing mortgages years after those loans were supposed to have been paid in full.
If convicted, the defendant faces a possible advisory sentencing guideline range of 46 to 57 months in prison, up to five years of supervised release, a fine of up to $4 million, and a $400 special assessment.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.