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Monday 30 March 2015
Mexican Citizen Sentenced to 10 Years in Federal Prison for Attempting to Transport A Child from Las Vegas to Jacksonville for Illegal Sexual ActivityRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Javier Guerrero Molina (34, citizen of Mexico) to 10 years in federal prison for attempting to transport a minor child from Las Vegas to Jacksonville with the intent that the child engage in sexual activity with him. Molina was in the United States illegally. He was arrested on May 30, 2014, at the Jacksonville International Airport.
According to court documents, on May 29, 2014, the Jacksonville Aviation Authority Police Department (JAAPD) received a telephone call from an individual who advised that a child had disappeared from her home in Las Vegas and was believed to be traveling by air to Jacksonville. JAAPD officers learned that the Las Vegas Metropolitan Police Department (LVMPD) had made a “missing persons” entry regarding a 14-year-old female with the same name. A check of airline manifests confirmed that this child was listed as a passenger on a flight from Las Vegas to Jacksonville, with a connection in Charlotte, North Carolina. JAAPD coordinated with officers from the Charlotte-Mecklenberg Police Department (CMPD), who intercepted the child at the Charlotte International Airport. The child had been scheduled to board a flight from Charlotte to Jacksonville, due to arrive shortly after midnight on May 30, 2014.
As the expected arrival time for the Jacksonville flight approached, a JAAPD officer observed Molina in a waiting area in the Jacksonville International Airport lobby. When asked by the officer, Molina advised that he was there to meet a particular passenger. He was subsequently detained and interviewed.
During an interview, Molina admitted that he had entered the United States in 1999 or 2000 by paying a smuggler $700 to help him cross the border on foot near Laredo, Texas. He also stated that he had previously engaged in sexual activity with the child in Jacksonville, before the child and her family moved to Las Vegas. He also stated that he had sent the child money to pay for a one-way airline ticket from Las Vegas to Jacksonville, and that he expected their sexual relationship to continue when the child returned to Jacksonville.
This case was investigated by the Jacksonville Aviation Authority Police Department, the Las Vegas Metropolitan Police Department, the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation in Jacksonville and Charlotte, the Charlotte-Mecklenberg Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Jacksonville State Attorney’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Marijuana Trafficker Sentenced After Fleeing to MexicoRead the Press Release
MARQUETTE, MICHIGAN –Pedro Andres Kobasic, age 45, formerly of Phoenix, Arizona, was sentenced to 87 months in prison followed by three years of supervised release, U.S. Attorney Patrick Miles, Jr. announced today. Kobasic was convicted of conspiracy to distribute more than 50 kilograms of marijuana after fleeing from justice and hiding in Mexico for about three years.
U.S. District Judge Robert Holmes Bell presided over the sentencing. Kobasic’s sentencing marks the end of a joint investigation by the U.S. Drug Enforcement Administration (DEA) and the Upper Peninsula Substance Enforcement Team (UPSET) that began in October 2009, when law enforcement learned that a package of marijuana was being sent via a parcel delivery service to Jason Scott Schwalbach in Escanaba. DEA and UPSET learned that a number of residents of the Escanaba area were receiving marijuana by mail and distributing it in the area. The investigation revealed that Pedro Kobasic was the source of this marijuana. Defendants who were previously convicted in this case were:
- Schwalbach, sentenced to 6 months in federal prison on December 14, 2010,
- Joshua Carl Harrison, sentenced to 30 months in prison on December 14, 2010,
- Jody Michael Williams, sentenced to 100 months in prison on March 24, 2011, and
- Nathan Peter Kobasic, sentenced to 78 months in prison on August 18, 2011.
Each of these defendants pled guilty to a federal drug charge. Pedro Kobasic was scheduled to appear in U.S. District Court in Marquette on April 20, 2011, to enter his guilty plea. He fled to Mexico instead. He was arrested upon returning to the United States in the summer of 2014, and entered his guilty plea on November 3, 2014.
Prosecution of this case was handled by Assistant U.S. Attorney Maarten Vermaat.
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Man Pleads to Accessory to Arson Resulting in Personal InjuryRead the Press Release
PORTLAND, Ore. – Today before U.S. District Judge Michael W. Mosman, Michael James Duncan, 32, pled guilty to accessory after the fact to arson resulting in personal injury. He is currently in the custody of the U.S. Marshals Service, and his sentencing is scheduled for July 6, 2015.
By his guilty plea, Duncan admitted that on November 15, 2013, he knew that Marcus Tyler had committed an arson inside Pal’s Shanty Tavern in NE Portland that resulted in extensive burns to Tyler. Duncan further admitted that he assisted Tyler in order to hinder and prevent Tyler’s apprehension, trial and punishment. Tyler pled guilty in federal court on November 5, 2014, to arson resulting in personal injury. He is scheduled to be sentenced on June 24, 2015, and faces a mandatory minimum sentence of seven years in prison.
With respect to Duncan’s plea to accessory after the fact to arson, Duncan drove Tyler away from Pal’s Shanty Tavern after the arson, which occurred at approximately 1:24 a.m. on November 15, 2013. Tyler was severely burned during the course of the arson after slipping on gasoline he had poured on the floor to ignite the fire. However, instead of taking Tyler to the hospital, and in order to avoid detection by the police, Duncan drove Tyler back to his house in SE Portland and attempted to treat Tyler’s burns without medical attention. Eventually, over an hour after the arson, Duncan called 911 to ask for an ambulance to transport Tyler to the hospital. Duncan, who has been friends with Tyler since high school, falsely told the 911 operator and police that he did not know Tyler and that he had simply found a badly burned, naked man in the middle of the street in SE Portland. Duncan also instructed his girlfriend to lie to the police about the circumstances around the arson at Pal’s Shanty Tavern.
“The arson fire at Pal’s Shanty caused catastrophic losses for the property owner, and the neighborhood lost a treasured establishment. The Fire Investigations Unit did what it is highly trained to do - uncover the root of arson and help bring the perpetrators to justice,” stated Portland Fire & Rescue Chief Erin Janssens.
Duncan faces a maximum sentence of 15 years in prison, a fine of up to $125,000, and three years of supervised release.
This case was investigated by the Portland Fire Bureau and the Portland Police Bureau. The case is being prosecuted by Assistant United States Attorneys Pamala Holsinger and Craig Gabriel.
Maine Nursing Home to Pay $1.2 Million to Resolve Allegations Concerning Rehabilitation TherapyRead the Press Release
BOSTON – A Maine skilled nursing facility, Ross Manor, entered into an agreement with the United States to pay $1.2 million to resolve allegations concerning inflated Medicare claims for rehabilitation therapy.
Ross Manor, which is located in Bangor, Maine, and owned by First Atlantic Corporation and Rosscare Nursing Homes, Inc., entered into an agreement concerning claims for therapy purportedly provided by its subcontractor, RehabCare Group East, Inc. (RehabCare), a part of Kindred Healthcare, Inc. This settlement resolves allegations that Ross Manor caused the submission of claims to Medicare that sought inflated amounts of reimbursement based on the provision of unreasonable or unnecessary rehabilitation therapy.
The United States alleges that, prior to Oct. 1, 2011, Ross Manor failed to take sufficient steps to prevent RehabCare from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary during so-called “assessment reference periods,” thereby causing Ross Manor to bill for its Medicare patients’ care at the highest reimbursement level, even though RehabCare was providing less therapy to those same patients outside the assessment reference periods, when Ross Manor was not required to report to Medicare the amount of therapy its Medicare patients were receiving.
“This settlement is the latest in a series of resolutions involving Medicare billing for rehabilitation therapy at skilled nursing facilities,” said United States Attorney Carmen M. Ortiz. “We will continue our work to ensure that the provision of care in skilled nursing facilities is based on patients’ clinical needs and not tied to the financial targets of the companies providing their care.”
This settlement further resolves allegations that, even after Oct. 1, 2011, Ross Manor failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: (1) presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy, rather than using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) planning the minimum number of therapy minutes required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; and (3) providing significantly higher amounts of therapy on the final day of a period that determines reimbursement in order to reach the next highest threshold level.
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorneys Gregg Shapiro and Patrick Callahan of Ortiz’s Affirmative Civil Enforcement Unit and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.
Local Business Owner Indicted for Defrauding Exxon Mobil of More Than $5 MillionRead the Press Release
HOUSTON – R. Scott Jordan, 52, of Houston, has surrendered to authorities following the return of an indictment alleging he defrauded Exxon Mobil and caused a loss of more than $5 million, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal March 23, 2015, and unsealed today as he made his initial appearance before U.S. Magistrate Judge Mary Milloy.
As outlined in the indictment, Jordan owned and operated a company called One Source Industrial, which operated in the Houston area providing welding services. Exxon’s Baytown Olefins Plant (BOP) was One Source Industrial’s primary client. The indictment alleges that from 2004 through 2010, Jordan conspired with Garry W. Arnold, 63, of Dayton, who was employed by Exxon Mobil, to deprive Exxon Mobil of both its money and property and its right to Arnold’s honest services. The indictment also alleges four substantive counts of mail fraud.
According to the indictment, Arnold’s job responsibilities included overseeing the maintenance and repair of numerous large furnaces located at the plant, including ordering replacement parts and coordinating the purchase, delivery and installation of these parts. Arnold also allegedly controlled and was part owner of Metal Blinds Unlimited Inc. The indictment alleges that during the relevant time period, Metal Blinds had minimal legitimate business operations, had no employees other than Jordan and operated out of his residence.
Beginning in approximately January 2004 and continuing through October 2010, Jordan and Arnold allegedly carried out a fraudulent invoicing scheme which caused Exxon to pay at least approximately $5.5 million for furnace parts and fabrication services that were never provided, were provided with materials already owned by Exxon or for which they paid an excessive amount. The indictment alleges Jordan and Arnold shared the proceeds of the scheme by having Exxon send the payment checks to One Source Industrial, after which Jordan caused that company to make payments to a sham corporation owned by Arnold. According to the indictment, Jordan also made payments to Arnold for legitimate work done by One Source Industrial for Exxon and other clients, again by making regular payments by check to Metal Blinds.
In total, Jordan and Arnold allegedly caused Exxon to create approximately 78 purchase orders and pay at least $5.5 million to One Source Industrial for work purportedly done by Metal Blinds. The indictment alleges Arnold received at least $3.2 million in association with these invoices through his sham corporation. Jordan also allegedly paid more than $300,000 to Arnold as part of the concealed profit-sharing agreement.
A conviction for conspiracy to commit mail fraud or substantive mail fraud carries as possible punishment a maximum penalty of 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss.
Arnold has already pleaded to his role in the scheme was sentenced to 63 months in federal prison to be followed by three years of supervised release.
The case is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney John Pearson.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Linn Man Indicted for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Linn, Mo., man has been indicted for illegally possessing firearms.
Charles Howard Trimble, 58, of Linn, was charged with two counts of being a felon in possession of a firearm in an indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Feb. 25, 2015. The indictment was unsealed and made public today upon Trimble’s arrest and initial court appearance.
The federal indictment alleges that Trimble was in possession of 12 firearms on Dec. 4, 2012, including a Gewehr bolt-action 8mm rifle, an Armscor .38-caliber revolver, a Winchester semi-automatic .22-caliber rifle, a Harrington and Richardson .30-06-caliber rifle, a Remington semi-automatic .22-caliber rifle, a Mossberg pump action .410-caliber shotgun, a Mossbergt pump action 12-gauge shotgun, a Marlin bolt action .22-caliber rifle, a Remington semi-automatic 12-gauge shotgun, a Ruger semi-automatic .40-caliber pistol and an EIG .22-caliber revolver with no serial number.
The federal indictment also alleges that Trimble was in possession of two firearms on Sept. 20, 2013, including a Taurus .357-caliber revolver and a Mossberg pump action 12-gauge shotgun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Trimble has two prior felony convictions for driving while intoxicated and prior felony convictions for unlawful use of a weapon and forgery.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Linn, Mo., Police Department, the Osage County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Lexington Park Man Admits to Gun Charges and Trafficking Contraband CigarettesRead the Press Release
Greenbelt, Maryland – William Terrance Proctor, a/k/a “Boobie,” and “Booby,” age 31, of Lexington Park, Maryland, pleaded guilty today to aiding and abetting the theft of a firearm, possession of an unregistered firearm, unlawful sale of a firearm to a prohibited person; and receipt, possession and transportation of contraband cigarettes.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Charles County Sheriff Troy Berry; St. Mary=s County Sheriff Tim Cameron; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“ATF worked hand-in-hand with our local counterparts to uncover a calculated scheme involving the theft and subsequent sale of numerous firearms,” stated ATF Special Agent in Charge William P. McMullan. “The law enforcement community in Southern Maryland strives to protect the public and prevent firearms from getting into the hands of criminals. We will continue to work to ensure that all of those responsible for the theft of these firearms are brought to justice.”
According to his plea agreement, on October 27, 2012, individuals who stole approximately 48 firearms from a gun shop in Lexington Park transported the guns to Proctor’s residence. Knowing that the guns were stolen, Proctor agreed to store the guns at his house. Thereafter and until June 2014, Proctor sold 45 of the stolen firearms, including eight stolen firearms to a previously convicted felon.
On March 20, 2014, Proctor sold for $1,000 a rifle which had a barrel measuring less than 16 inches. And from April to June, 2014, Proctor sold seven firearms in exchange for contraband cigarettes – that is, cigarettes for which the applicable Maryland cigarette taxes were not paid. Proctor then sold all of the contraband cigarettes.
On June 27, 2014, Proctor was arrested in Maryland when he attempted to sell an eighth firearm in exchange for contraband cigarettes.
Proctor faces a maximum sentence of 10 years in prison on the gun charges and five years for receiving and transporting contraband cigarettes. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 3, 2015 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF, Charles County and St. Mary’s County Sheriffs’ Offices and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who is prosecuting the case.
Justice Department Files Lawsuit Alleging that Southeastern Oklahoma State University Discriminated Against Transgender WomanRead the Press Release
The Justice Department announced today the filing of a lawsuit against Southeastern Oklahoma State University (Southeastern) and the Regional University System of Oklahoma (RUSO) for violating Title VII of the Civil Rights Act of 1964 by discriminating against a transgender employee on the basis of her sex and retaliating against her when she complained about the discrimination. Attorney General Eric Holder announced in December 2014 that the Department of Justice takes the position that Title VII’s prohibition against sex discrimination is best read to extend the statute’s protection to claims based on an individual’s gender identity, including transgender status.
According to the United States’ complaint, filed in federal district court in Oklahoma City today, Rachel Tudor began working for Southeastern as an Assistant Professor in 2004. At the time of her hire, Tudor presented as a man. In 2007, Tudor, consistent with her gender identity, began to present as a woman at work. Throughout her employment, Tudor performed her job well, and in 2009, she applied for a promotion to the tenured position of Associate Professor. Southeastern’s administration denied her application, overruling the recommendations of her department chair and other tenured faculty from her department. The United States’ complaint alleges that Southeastern discriminated against Tudor when it denied her application because of her gender identity, gender transition and non-conformance with gender stereotypes.
“By standing beside Dr. Tudor, the Department of Justice sends a clear message that we are committed to eliminating discrimination on the basis of sex and gender identity,” said Attorney General Eric Holder. “We will not allow unfair biases and unjust prejudices to prevent transgender Americans from reaching their full potential as workers and as citizens. And we will continue to work tirelessly, using every legal tool available, to ensure that transgender individuals are guaranteed the rights and protections that all Americans deserve.”
In 2010, Tudor filed complaints regarding the denial of her application for promotion and tenure. Shortly after it learned of her complaints, Southeastern refused to let Tudor re-apply for promotion and tenure despite Southeastern’s own policies permitting re-application. At the end of the 2010-11 academic year, Southeastern and RUSO terminated Tudor’s employment because she had not obtained tenure.
Tudor filed a charge of discrimination with the Oklahoma City Area Office of the U.S. Equal Employment Opportunity Commission, alleging that Southeastern’s decisions were unlawful. The EEOC investigated the charge and determined that there was reasonable cause to believe discrimination occurred. The EEOC’s attempts at conciliation were unsuccessful, and it referred the matter to the Department of Justice.
This lawsuit was brought by the Department of Justice as a result of a joint effort to enhance collaboration between the EEOC and the Justice Department’s Civil Rights Division for vigorous enforcement of Title VII.
“The Department of Justice is committed to protecting the civil rights of all Americans, including transgender Americans,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Discrimination against employees because of their gender identity, gender transition, or because they do not conform to stereotypical notions about how men and women should act or appear violates Title VII. Retaliating against an employee for complaining about unlawful discrimination, as happened in this case, is also unacceptable under Title VII.”
“This is a tremendous example of how collaboration between EEOC and the Department of Justice leads to strong and coordinated enforcement of Title VII,” said EEOC Chair Jenny R. Yang. “This case furthers the EEOC’s Strategic Enforcement Plan, which includes coverage of lesbian, gay, bisexual and transgender individuals under Title VII's sex discrimination provisions as a national enforcement priority.”
“The American workplace must be a level playing field free from discrimination – a place where employees compete based on their merit,” said Director Holly Waldron Cole of the EEOC’s Oklahoma City Area Office. “Here, the decisions about Dr. Tudor’s employment should have been based on her qualifications, not on impermissible bias and stereotype.”
As alleged in the complaint, Title VII’s prohibition on sex discrimination includes discrimination because of gender identity or because an employee has completed a gender transition or is undertaking a gender transition. Title VII also prohibits an employer from discriminating against an employee because her behavior or appearance does not conform to traditional gender stereotypes. In addition, Title VII prohibits employers from retaliating against employees, like Tudor, who lodge complaints about discriminatory treatment. Through its lawsuit, the United States seeks both monetary and injunctive relief.
Attorney General Eric Holder announced in December 2014 that the Department of Justice takes the position that Title VII’s prohibition against sex discrimination is best read to extend the statute’s protection to claims based on an individual’s gender identity, including transgender status.
More information about Title VII and other federal employment laws is available on the website of the Employment Litigation Section of the Civil Rights Division (www.justice.gov/crt/about/emp/).
The continued enforcement of Title VII has been a priority of the Justice Department’s Civil Rights Division. Additional information on the Civil Rights Division’s work is available on its website at www.justice.gov/crt/.
Justice Department Files Brief in the Fifth Circuit Court of Appeals in the State of Texas et al v. United States of AmericaRead the Press Release
Attached is a brief for the federal government filed in the United States Court of Appeals for the Fifth Circuit in State of Texas, et al. v. United States of America, et al.
Immigration CA5 - US PI Brief
Jacksonville Man Sentenced in Child Pornography CaseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge W.Earl Britt sentenced JOHN TOBIAS SWEENEY, 38, to 78 months imprisonment followed by 15 years supervised release. A $10,000 fine was imposed. SWEENEY is also required to register as a sex offender.
A Federal Grand Jury returned a Criminal Indictment on May 21, 2014.On November 3, 2014, SWEENEY pled guilty to receipt of child pornography.
According to the investigation, in March 2013, an investigation was initiated when law enforcement learned of a 12-year-old engaging in explicit communications with SWEENEY, online applications such as TextNow, a test messagin application, and Oovoo, an instant messaging client application. During the communications SWEENEY repeatedly requested sexually explicit images from the 12-year-old victim. That same month, an agent working undercover assumed the identity of the victim and continued the communication through September, 2013. SWEENEY was a high school teacher and the girls/boys soccer coach at South Onslow County High School at the time.
In December, 2013, a search warrant was executed at SWEENEY’s residence and the high school. During that time it was learned that SWEENEY used approximately 50 email accounts and fake profiles on chat sites and had nude images of minors on his phone. Forensic examination of SWEENEY’s computer revealed nude images of the victim, which were also duplicated on his thumb drive.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Federal Bureau of Investigation - Wilmington. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
Ishpeming Woman Sentenced to More Than 12 Years in PrisonRead the Press Release
MARQUETTE, MICHIGAN – Rachel Lynn Hansen, age 32, of Ishpeming, Michigan, was sentenced to 151 months in prison, U.S. Attorney Patrick A. Miles, Jr., announced today. After her release, she will serve three years of court supervision. Hanson, a mother of three, was convicted of possession of cocaine with intent to distribute. During the sentencing, U.S. District Judge Robert Holmes Bell found that Hanson was a “career offender” due to her extensive criminal history, which included three prior felony drug convictions. As a result, Hanson was subject to a significantly increased sentence.
The U.S. Drug Enforcement Administration (DEA) and the Upper Peninsula Substance Enforcement Team (UPSET) began their most recent investigation of Hanson in January 2014, when they learned that she was again involved in drug trafficking. The DEA and UPSET executed a search warrant at Hanson’s residence in Ishpeming on January 30, 2014. Police found drugs and money in the residence. Hanson was interviewed and admitted selling cocaine and heroin in the Ishpeming area during 2013 and 2014. Her prior convictions include delivery or manufacture of marijuana in 2005, possession of cocaine in 2007, and delivery or manufacture of crack cocaine in 2010.
Prosecution of this case was handled by Assistant U.S. Attorney Maarten Vermaat.
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Investment Adviser Sentenced to Six Years in Prison for Stealing Client FundsRead the Press Release
BOSTON – A Pittsburgh woman was sentenced on Friday, March 27, 2015 for orchestrating a multi-million dollar Ponzi scheme that harmed scores of victims.
Patricia S. Miller, 68, was sentenced by U.S. District Court Judge Leo T. Sorokin to six years in prison, three years of supervised release, restitution and forfeiture. In December 2014, Miller pleaded guilty to five counts of wire fraud for orchestrating a large Ponzi scheme that harmed over 80 victims.
Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that she never made on behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her “investment clubs” would be placed in fixed-income notes and other investments. Miller was able to obtain over $4.1 million from more than 80 clients for these purported investment clubs. Instead of investing the money as promised, she misappropriated client funds for her own use, which robbed many victims of their life savings.
“The personal nature and scope of Ms. Miller’s fraud, as well as the calculated effort she took while carrying it out, makes this one of the more serious white collar cases,” said United States Attorney Carmen M. Ortiz. “The crime has had tangible and long-lasting effects on the lives of the victims who now face the frightening reality of financial insecurity.”
“Ms. Miller engineered an elaborate scam and stole millions of dollars from dozens of unsuspecting victims who trusted her,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI will continue to go after people like her who shamelessly swindle others out of their hard-earned money for the benefit of themselves.”
U.S. Attorney Ortiz and SAC Lisi made the announcement today. U.S. Attorney Ortiz also expressed appreciation for the help and cooperation her office received from the U.S. Attorney’s Office for the Western District of Pennsylvania and the Federal Bureau of Investigation, Pittsburgh Field Division. The case was prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Haroon Aswat, Abu Hamza Co-Conspirator, Pleads Guilty to Terrorism Charges in Federal CourtRead the Press Release
Assistant Attorney General for National Security John Carlin and U.S. Attorney Preet Bharara of the Southern District of New York announced that Haroon Aswat pleaded guilty in the Southern District of New York to terrorism charges related to Aswat’s efforts to establish a terrorist training camp in the United States. Aswat was arrested in Zambia in July 2005, and in August 2005, Aswat was deported from Zambia to the United Kingdom, where he was arrested pursuant to a provisional arrest warrant that was issued in response to a request by the U.S. government in connection with this case. Aswat was extradited to the United States from the United Kingdom on Oct. 21, 2014. Aswat pleaded guilty today to one count of conspiring to provide material support to al Qaeda, and one count of providing material support to al Qaeda.
“With this guilty plea, Haroon Aswat is being held accountable for his provision of material support to al Qaeda and his role in a plot to establish a terrorist training camp on American soil,” said Assistant Attorney General Carlin. “Aswat was arrested almost 10 years ago, and his guilty plea is a testament to our determination to bring to justice all those who wish to harm the United States, whether at home or abroad, no matter how long it takes. I would like to extend my gratitude to all of the many agents, analysts and prosecutors whose dedication and persistence made possible the guilty plea in this case.”
“Haroon Aswat fought his extradition to the United States for almost 10 years,” said U.S. Attorney Bharara. “He then pled guilty to material support charges within just six months of arriving here, showing again our legal system’s capacity for swift justice. For providing support to al Qaeda, Aswat now comes face-to-face with justice and faces up to 20 years in prison, and after the completion of his term he will be deported.”
According to the allegations contained in the indictment, statements made at related court proceedings including today’s guilty plea, and evidence presented at prior trials:
In late 1999, Aswat, along with co-defendants Mustafa Kamel Mustafa, aka Abu Hamza, Ouassama Kassir and Earnest James Ujaama, attempted to create a terrorist training camp in the United States to support al Qaeda, which has been designated by the U.S. Department of State as a foreign terrorist organization. Aswat conspired with Abu Hamza, Kassir and Ujaama to establish the terrorist training camp on a rural parcel of property located in Bly, Oregon. The purpose of the Bly camp was for Muslims to receive various types of training – including military-style jihad training – in preparation to fight jihad in Afghanistan. As used by the conspirators in this case, the term “jihad” meant defending Islam against purported enemies through violence and armed aggression, including, by using murder to rid Muslim holy lands of non-believers in Islam.
In a letter faxed from Ujaama, who was in the United States, to Abu Hamza in the United Kingdom, the property in Bly was described as a place that “looks just like Afghanistan,” and the letter noted that the men at Bly were “stock-piling weapons and ammunition.” In late 1999, after transmission of the faxed letter, Abu Hamza directed Aswat and Kassir, both of whom resided in London and attended Abu Hamza’s mosque there, to travel to Oregon to assist in establishing the camp. On Nov. 26, 1999, Aswat and Kassir arrived in New York, and then traveled to Bly.
Aswat and Kassir traveled to Bly for the purpose of training men to fight jihad. Kassir told witnesses that he supported Usama Bin Laden and al Qaeda, and that he had previously received jihad training in Pakistan. Kassir also possessed a compact disc that contained instructions on how to make bombs and poisons. After leaving Bly, Aswat and Kassir traveled to Seattle, where they resided at a mosque for approximately two months. While in Seattle, Kassir, in Aswat’s presence, provided men from the mosque with additional terrorist training lessons – including instructions on different types of weapons, how to construct a homemade silencer for a firearm, how to assemble and disassemble an AK-47 and how an AK-47 could be altered to be fully automatic and to launch a grenade. On another occasion, with Aswat sitting by his side, Kassir announced to the men in Seattle that he had come to the United States for martyrdom and to destroy, and he informed his audience that some of them could die or get hurt.
A ledger recovered in September 2002 from an al Qaeda safe house in Karachi, Pakistan, listed a number of individuals associated with al Qaeda, including ASWAT. The al Qaeda safe house was used by Khalid Sheikh Mohammed, al Qaeda’s chief operational planner and the alleged planner of the terrorist attacks of Sept. 11, 2001.
* * *
Aswat pleaded guilty to one count of conspiracy to provide material support to a foreign terrorist organization and one count of providing material support to a foreign terrorist organization, each of which carries a maximum term of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Abu Hamza and Kassir were previously convicted for their roles in attempting to establish a terrorist training camp in the United States. On May 12, 2009, after a four-week jury trial in the Southern District of New York, Kassir was found guilty of charges relating to his efforts to establish the terrorist training camp in Bly and his operation of several terrorist websites. On Sept. 15, 2009, U.S. District Judge John F. Keenan of the Southern District of New York sentenced Kassir to life in prison.
On May 19, 2014, after a four-week jury trial in the Southern District of New York, Abu Hamza was found guilty of charges relating to his role in the conspiracy to establish the terrorist training camp in Bly, as well as his role in a hostage-taking in Yemen in 1998 that resulted in four deaths and his support of violent jihad in Afghanistan in 2000 and 2001. On Jan. 9, 2015, U.S. District Judge Katherine B. Forrest of the Southern District of New York sentenced Abu Hamza to life in prison.
Assistant Attorney General Carlin joins U.S. Attorney Bharara in praising the outstanding efforts of the FBI’s Manhattan-based Joint Terrorism Task Force, which principally consists of agents of the FBI and detectives of the New York City Police Department, the U.S. Marshals Service and the Metropolitan Police Department of London. Assistant Attorney General Carlin and U.S. Attorney Bharara also thanked the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being prosecuted by Assistant U.S. Attorneys John P. Cronan, Ian McGinley and Shane T. Stansbury of the Southern District of New York, and Trial Attorney Erin Creegan of the Justice Department’s National Security Division. This prosecution began with the investigation, arrest and prosecution of James Ujaama in the Western District of Washington. The FBI-led Joint Terrorism Task Force (JTTF) in Seattle and the U.S. Attorney’s Office for the Western District of Washington provided substantial assistance with these prosecutions.
Haroon Aswat, Abu Hamza Co-Conspirator, Pleads Guilty to Terrorism Charges in Manhattan Federal CourtRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Assistant Attorney General for National Security John P. Carlin announced that HAROON ASWAT pled guilty today in Manhattan federal court to terrorism charges related to ASWAT’s efforts to establish a terrorist training camp in the United States. ASWAT was arrested in Zambia in July 2005. In August 2005, ASWAT was deported from Zambia to the United Kingdom, where he was arrested pursuant to a provisional arrest warrant that was issued in response to a request by the U.S. Government in connection with this case. ASWAT was extradited to the United States from the United Kingdom on October 21, 2014. ASWAT pled guilty today to one count of conspiring to provide material support to al Qaeda, and one count of providing material support to al Qaeda.
Manhattan U.S. Attorney Preet Bharara said: “Haroon Aswat fought his extradition to the United States for almost 10 years. He then pled guilty to material support charges within just six months of arriving here, showing again our legal system’s capacity for swift justice. For providing support to al Qaeda, Aswat now comes face-to-face with justice and faces up to 20 years in prison, and after the completion of his term he will be deported.”
Assistant Attorney General for National Security John P. Carlin said: “With this guilty plea, Haroon Aswat is being held accountable for his provision of material support to al Qaeda and his role in a plot to establish a terrorist training camp on American soil. Aswat was arrested almost 10 years ago, and his guilty plea is a testament to our determination to bring to justice all those who wish to harm the United States, whether at home or abroad, no matter how long it takes. I would like to extend my gratitude to all of the many agents, analysts and prosecutors whose dedication and persistence made possible the guilty plea in this case.”
According to the allegations contained in the Indictment, statements made at related court proceedings including today’s guilty plea, and evidence presented at prior trials:
In late 1999, ASWAT, along with co-defendants Mustafa Kamel Mustafa, a/k/a “Abu Hamza” (“Abu Hamza”), Ouassama Kassir, and Earnest James Ujaama, attempted to create a terrorist training camp in the United States to support al Qaeda, which has been designated by the United States Secretary of State as a foreign terrorist organization. ASWAT conspired with Abu Hamza, Kassir, and Ujaama to establish the terrorist training camp on a rural parcel of property located in Bly, Oregon. The purpose of the Bly, Oregon camp was for Muslims to receive various types of training – including military-style jihad training – in preparation to fight jihad in Afghanistan. As used by the conspirators in this case, the term “jihad” meant defending Islam against purported enemies through violence and armed aggression, including, if necessary, by using murder to rid Muslim holy lands of non-believers in Islam.
In a letter faxed from Ujaama, in the United States, to Abu Hamza, in the United Kingdom, the property in Bly was described as a place that “looks just like Afghanistan,” and the letter noted that the men at Bly were “stock-piling weapons and ammunition.” In late 1999, after transmission of the faxed letter, Abu Hamza directed ASWAT and Kassir, both of whom resided in London, England, and attended Abu Hamza’s mosque there, to travel to Oregon to assist in establishing the camp. On November 26, 1999, ASWAT and Kassir arrived in New York, and then traveled to Bly.
ASWAT and Kassir traveled to Bly for the purpose of training men to fight jihad. Kassir told witnesses that he supported Usama Bin Laden and al Qaeda, and that he had previously received jihad training in Pakistan. Kassir also possessed a compact disc that contained instructions on how to make bombs and poisons. After leaving Bly, ASWAT and Kassir traveled to Seattle, Washington, where they resided at a mosque for approximately two months. While in Seattle, Kassir, in ASWAT’s presence, provided men from the mosque with additional terrorist training lessons – including instructions on different types of weapons, how to construct a homemade silencer for a firearm, how to assemble and disassemble an AK-47, and how an AK-47 could be altered to be fully automatic and to launch a grenade. On another occasion, with ASWAT sitting by his side, Kassir announced to the men in Seattle that he had come to the United States for martyrdom and to destroy, and he informed his audience that some of them could die or get hurt.
A ledger recovered in September 2002 from an al Qaeda safe house in Karachi, Pakistan, listed a number of individuals associated with al Qaeda, including ASWAT. The al Qaeda safe house was used by Khalid Sheikh Mohammed, al Qaeda’s chief operational planner and the alleged planner of the terrorist attacks of September 11, 2001.
ASWAT pled guilty to one count of conspiracy to provide material support to a foreign terrorist organization (al Qaeda), and one count of providing material support to a foreign terrorist organization (al Qaeda), each of which carries a maximum term of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Abu Hamza and Kassir were previously convicted for their roles in attempting to establish a terrorist training camp in the United States. On May 12, 2009, after a four-week jury trial in the Southern District of New York, Kassir was found guilty of charges relating to his efforts to establish the terrorist training camp in Bly, and his operation of several terrorist websites. On September 15, 2009, U.S. District Judge John F. Keenan sentenced Kassir to life in prison.
On May 19, 2014, after a four-week jury trial in the Southern District of New York, Abu Hamza was found guilty of charges relating to his role in the conspiracy to establish the terrorist training camp in Bly, as well as his role in a hostage-taking in Yemen in 1998 that resulted in four deaths, and his support of violent jihad in Afghanistan in 2000 and 2001. On January 9, 2015, U.S. District Judge Katherine B. Forrest sentenced Abu Hamza to life in prison.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation’s Manhattan-based Joint Terrorism Task Force – which principally consists of agents of the FBI and detectives of the New York City Police Department, and includes officers of numerous federal, state, and local law enforcement agencies – the United States Marshals Service, and the Metropolitan Police Department of London, England. Mr. Bharara also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys John Cronan, Ian McGinley, and Shane Stansbury are in charge of the prosecution.
Governor Tomblin, Goodwin and other leaders to unveil statewide initiative to benefit childrenRead the Press Release
CHARLESTON, W.Va. – Governor Earl Ray Tomblin, United States Attorney Booth Goodwin, West Virginia State Police Colonel Jay Smithers, and other state leaders, along with school, law enforcement, child advocacy and mental health professionals will come together at 2:00 p.m. Tuesday, March 31, 2015, to unveil a statewide initiative to address child maltreatment and children’s exposure to trauma.
EVENT INFORMATION:
WHO: Governor Earl Ray Tomblin, United States Attorney Booth Goodwin and WVSP Colonel Jay Smithers
WHAT: Unveiling of a statewide initiative to benefit children
WHEN: 2:00 p.m., Tuesday March 31
WHERE: West Virginia State Police Professional Development Center, 123 Academy Drive, Dunbar, WV 25064
Georgia Man Indicted for Child Sex TraffickingRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Devin Lee Smith (27, Waynesville, GA) with child sex trafficking, enticing a minor to travel in interstate commerce for prostitution or unlawful sexual activity, transporting a minor in interstate commerce for prostitution or unlawful sexual activity, and using a facility of interstate commerce to promote and carry on prostitution activities. If convicted on all counts, he faces a minimum penalty of 10 years, up to life, in federal prison.
According to the indictment, Smith transported a minor female from Georgia to Jacksonville, where he then engaged in commercial sex trafficking of the minor. The indictment also alleges that Smith used a mobile phone to carry out his illicit activities.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Northeast Florida Human Trafficking Task Force, a specialized task force made up of investigators from the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gallegos Sentenced to Serve 180 Months for Possession of Methamphetamine with Intent to DistributeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced Antonio Gallegos, also known as “Lego”, age 35, from Valdosta, Georgia was sentenced on March 25, 2015 by the Honorable Hugh Lawson, Senior United States District Judge in Valdosta, Georgia. Mr. Gallegos was sentenced to serve 15 years (180 months) imprisonment for possession with intent to distribute methamphetamine. Mr. Gallegos had entered his plea of guilty to the offense on January 14, 2015.
On April 29, 2014, a Drug Enforcement Administration (DEA) Task Force Officer in Lowndes County, Georgia received information from DEA Atlanta that a Hispanic male would be delivering a package of methamphetamine to Valdosta via a bus line. Agents observed Jose Renteria-Cortez get off the bus carrying a backpack. The Task Force Officer found 9 packages of methamphetamine with a gross weight of 6.6 pounds. Mr. Renteria-Cortez admitted that he was delivering the drugs to Juan Gabriel Pecina, a co-defendant, for eventual delivery to Antonio Gallegos. Mr. Pecina has previously been sentenced to 168 months imprisonments and Mr. Renteria-Cortez has previously been sentenced to 140 months.
“Methamphetamine destroys the lives of users and non-users alike. The only bus Mr. Gallegos will be waiting on now won’t be one carrying his shipment of drugs, it will be the one taking him to federal prison,” said U.S. Attorney Michael J. Moore.
“As with all drug traffickers, this methamphetamine distributor was driven by greed and power,” Special Agent in Charge of the DEA Atlanta Field Division Daniel R. Salter stated. “Today he stands powerless and will spend well-deserved time in prison. This case would not have been possible without the spirited level of cooperation between our law enforcement counterparts.”
Sheriff Chris Prine, of the Lowndes County Sheriff’s Office is “extremely proud to see this case come to a successful close. With the continued increase in methamphetamine production and distribution, this must be a priority for everyone in the law enforcement community. This sentence is the result of a cooperative effort of the Drug Enforcement Administration, The United States Attorney’s Office and the Lowndes County Sheriff’s Office and a great example of what must be done to impact the flow of illegal drugs in our communities.”
The case was investigated by the U.S. Drug Enforcement Administration and the Lowndes County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers 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 U.S. Postal Contractor and Wife Charged by Federal Grand Jury with Stealing Meds from VeteransRead the Press Release
Memphis, TN – A former U.S. Postal Service contractor and his wife have been charged in a federal indictment that accuses them of conspiring to steal packages of prescription pharmaceuticals intended for military veterans.
Kevin Cochrane, 34, of Verbena, Alabama, and Carmen Cochrane, 36, also of Verbena, Alabama, were named in a four-count indictment charging the couple with conspiracy to possess stolen U.S. Mail; two counts of theft of Veteran’s Administration U.S. Mail packages; and one count of conspiracy to possess hydrocodone with the intent to distribute it. Carmen Cochrane was arrested last Thursday and Kevin Cochrane was taken into custody this morning by U.S. Postal Inspectors.
The thefts occurred at a U.S. Postal Service loading facility in Memphis in November 2013. The packages contained prescription medications intended for veterans. The Cochranes are also charged with conspiring to possess with intent to distribute hydrocodone stolen from the packages.
“The defendants’ alleged scheme of stealing medicine intended for veterans from a U.S. Postal facility is a shameful betrayal of our dedicated service members,” stated U.S. Attorney Edward Stanton III. “This husband and wife will now be held accountable in a court of law for their alleged criminal actions.”
“The U.S. Postal Service has hardworking, honest employees. The arrest of these individuals is a priority to the Postal Inspection Service to ensure the nation’s mail system is protected and those who violate the public trust will be aggressively prosecuted,” said Tom Noyes, Postal Inspector in Charge of the Charlotte Division – Memphis Field Office.
If they are convicted, the couple would face a statutory maximum sentence of 10 years in federal prison.
This case was investigated by the United States Postal Inspection Service and U.S. Department of Veterans Affairs, Office of Inspector General. The government’s case is being prosecuted by Assistant U.S. Attorney David Pritchard.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Tate County Sheriff's Deputy Indicted for Using Excessive Force Against a Pre-Trial DetaineeRead the Press Release
A federal grand jury in Oxford, Mississippi, returned a one-count indictment charging former Tate County Sheriff’s Deputy Randy T. Doss, 62, with unlawfully assaulting J.W., a pre-trial detainee at the Tate County Jail, with a dangerous weapon on Jan. 27, 2011. The indictment charges that Doss’s actions resulted in bodily injury to the victim, J.W.
Doss is charged with violating J.W.’s right not to be deprived of liberty without due process of law. The indictment alleges that Doss unlawfully assaulted J.W. by deploying a Taser electronic control device into J.W.’s back while he was in the custody of the Tate County Sheriff’s Office.
If convicted, Doss faces a maximum punishment of 10 years imprisonment. An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Jackson Division of the Federal Bureau Investigation. It is being prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Former President and Ceo of Immigration Consultation Company Sentenced to Two Years in Prison for Fraud, Money LaunderingRead the Press Release
CAMDEN, N.J. - A Union, New Jersey, man was sentenced today to 24 months in prison for providing fraudulent immigration documents involving sham marriages and attempting to deposit a fraudulent tax return check of more than $100,000, U.S. Attorney Paul J. Fishman announced.
Maxwell Poku, 36, a naturalized United States citizen from Ghana, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to an information charging him with one count each of immigration fraud, wire fraud and money laundering. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Poku was the president and CEO of Max$Max Finance and Travel LLC (Max$Max), a business with offices in Elizabeth, New Jersey, Orange, New Jersey and Ghana. Max$Max purported to offer immigration consultation and other services to the African community.
Poku admitted that he helped numerous individuals obtain immigration benefits to which they were not entitled by filing documents that falsely reflected that they were married to United States citizens. Poku admitted that he paid individuals to act as sham spouses and provided fraudulent letters of employment, utility bills, credit card statements, W-2 forms and tax return transcripts, which he downloaded and altered, to demonstrate the marital status of the immigrant petitioners.
Poku used forged Ghanaian government stamps, which he obtained from a store in New Jersey, as well as blank Ghanaian birth certificates. He used an iron and coffee to give the documents an aged appearance.
The money laundering count arose from an entirely separate scheme in which Poku came into possession of a refund check for $115,138 that was issued as a result of a fraudulent tax return. Poku admitted he incorporated a business entity in the state of New Jersey named “Brian Robinson Equipment Sales LLC,” opened a bank account at Sovereign Bank under that name, and deposited the refund check into the account. The sum was recovered by law enforcement before it could be withdrawn.
As part of the plea, Poku must forfeit to the United States $10,500, and computer media and equipment seized from Max$Max on the day of his arrest on August 10, 2012.
In addition to the prison term, Judge Irenas sentenced Poku to serve three years of supervised release and to pay a fine of $75,000.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly; special agents of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Rodney A. Davis; and special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Justin Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Henry E. Klingeman Esq., Newark, N.J.
Former Joplin Oncologist Pleads Guilty to Dispensing Foreign, Misbranded DrugsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an oncologist who operated a clinic in Joplin, Mo., pleaded guilty in federal court today to dispensing foreign, misbranded drugs to his cancer patients.
Robert L. Carter, 74, of Carthage, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with buying and selling misbranded prescription drugs.
Carter was the president and medical practitioner of Robert L. Carter, M.D., in Joplin, from Oct. 23, 1991, to April 2, 2012. As a medical oncologist, Carter provided care and treatment for patients with cancer and blood diseases. The practice purchased prescription drugs, including chemotherapy drugs, which were prescribed by Carter and were administered and dispensed through the practice. Reimbursement for the drugs and their administration was sought from the Medicare and Medicaid programs, Tricare as well as other private health care benefit programs.
In April 2010, Dr. Carter began ordering prescription cancer drugs from Quality Specialty Products (QSP) in Winnipeg, Manitoba, Canada. QSP sold drugs – which had been obtained from foreign sources and which had not been approved by the U.S. Food and Drug Administration for distribution or use in the United States – to physicians and other health care providers in the United States.
QSP shipped misbranded and FDA-unapproved drugs to Carter at his practice in Joplin. These misbranded and FDA-unapproved drugs were administered to Carter’s cancer patients and Carter was reimbursed by government and private health insurance programs.
The labeling for the prescription drugs that Carter purchased from QSP was different than the versions of the drugs the FDA had approved for distribution in the United States. Among other things, they did not have labels bearing the symbol “Rx only,” and the labeling for some of the drugs was in one or more foreign languages. Some of the prescription drugs lacked mixing and use instructions in the English language.
Carter paid $971,854 in restitution today to Medicare, Tri-Care, Missouri Medicaid, Oklahoma Medicaid and Kansas Medicaid. Under the terms of today’s plea agreement, Carter also must forfeit to the government $1.2 million, of which $228,145 was paid today, representing the proceeds from his scheme. Carter is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations and the U.S. Department of Health and Human Services, Office of Inspector General.
Former Federal Agents Charged with Bitcoin Money Laundering and Wire FraudRead the Press Release
Agents Were Part of Baltimore’s Silk Road Task Force
Two former federal agents have been charged with wire fraud, money laundering and related offenses for stealing digital currency during their investigation of the Silk Road, an underground black market that allowed users to conduct illegal transactions over the Internet. The charges are contained in a federal criminal complaint issued on March 25, 2015, in the Northern District of California and unsealed today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division, Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) San Francisco Division, Special Agent in Charge Michael P. Tompkins of the Justice Department’s Office of the Inspector General Washington Field Office and Special Agent in Charge Lori Hazenstab of the Department of Homeland Security’s Office of the Inspector General in Washington D.C. made the announcement.
Carl M. Force, 46, of Baltimore, was a Special Agent with the Drug Enforcement Administration (DEA), and Shaun W. Bridges, 32, of Laurel, Maryland, was a Special Agent with the U.S. Secret Service (USSS). Both were assigned to the Baltimore Silk Road Task Force, which investigated illegal activity in the Silk Road marketplace. Force served as an undercover agent and was tasked with establishing communications with a target of the investigation, Ross Ulbricht, aka “Dread Pirate Roberts.” Force is charged with wire fraud, theft of government property, money laundering and conflict of interest. Bridges is charged with wire fraud and money laundering.
According to the complaint, Force was a DEA agent assigned to investigate the Silk Road marketplace. During the investigation, Force engaged in certain authorized undercover operations by, among other things, communicating online with “Dread Pirate Roberts” (Ulbricht), the target of his investigation. The complaint alleges, however, that Force then, without authority, developed additional online personas and engaged in a broad range of illegal activities calculated to bring him personal financial gain. In doing so, the complaint alleges, Force used fake online personas, and engaged in complex Bitcoin transactions to steal from the government and the targets of the investigation. Specifically, Force allegedly solicited and received digital currency as part of the investigation, but failed to report his receipt of the funds, and instead transferred the currency to his personal account. In one such transaction, Force allegedly sold information about the government’s investigation to the target of the investigation. The complaint also alleges that Force invested in and worked for a digital currency exchange company while still working for the DEA, and that he directed the company to freeze a customer’s account with no legal basis to do so, then transferred the customer’s funds to his personal account. Further, Force allegedly sent an unauthorized Justice Department subpoena to an online payment service directing that it unfreeze his personal account.
Bridges allegedly diverted to his personal account over $800,000 in digital currency that he gained control of during the Silk Road investigation. The complaint alleges that Bridges placed the assets into an account at Mt. Gox, the now-defunct digital currency exchange in Japan. He then allegedly wired funds into one of his personal investment accounts in the United States mere days before he sought a $2.1 million seizure warrant for Mt. Gox’s accounts.
Bridges self-surrendered today and will appear before Magistrate Judge Maria-Elena James of the Northern District of California at 9:30 a.m. PST this morning. Force was arrested on Friday, March 27, 2015, in Baltimore and will appear before Magistrate Judge Timothy J. Sullivan of the District of Maryland at 2:30 p.m. EST today.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the FBI’s San Francisco Division, the IRS-CI’s San Francisco Division, the Department of Justice Office of the Inspector General and the Department of Homeland Security Office of the Inspector General in Washington D.C. The Treasury Department’s Financial Crimes Enforcement Network also provided assistance with the investigation of this case. The case is being prosecuted by Assistant U.S. Attorneys Kathryn Haun and William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section.
Criminal Complaint
Former Federal Agents Charged with Bitcoin Money Laundering and Wire FraudRead the Press Release
SAN FRANCISCO – Two former federal agents have been charged with wire fraud, money laundering and related offenses for stealing digital currency during their investigation of the Silk Road, an underground black market that allowed users to conduct illegal transactions over the Internet. The charges are contained in a federal criminal complaint issued on March 25, 2015, in the Northern District of California and unsealed today.
U.S. Attorney Melinda Haag of the Northern District of California, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division, Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Northern District of California, Special Agent in Charge Michael P. Tompkins of the Justice Department’s Office of the Inspector General Washington Field Office and Special Agent in Charge Lori Hazenstab of the Department of Homeland Security’s Office of the Inspector General in Washington D.C. made the announcement.
Carl M. Force, 46, of Baltimore, was a Special Agent with the Drug Enforcement Administration (DEA), and Shaun W. Bridges, 32, of Laurel, Maryland, was a Special Agent with the U.S. Secret Service (USSS). Both were assigned to the Baltimore Silk Road Task Force, which investigated illegal activity in the Silk Road marketplace. Force served as an undercover agent and was tasked with establishing communications with a target of the investigation, Ross Ulbricht, aka “Dread Pirate Roberts.” Force is charged with wire fraud, theft of government property, money laundering and conflict of interest. Bridges is charged with wire fraud and money laundering.
According to the complaint, Force was a DEA agent assigned to investigate the Silk Road marketplace. During the investigation, Force engaged in certain authorized undercover operations by, among other things, communicating online with “Dread Pirate Roberts” (Ulbricht), the target of his investigation. The complaint alleges, however, that Force then, without authority, developed additional online personas and engaged in a broad range of illegal activities calculated to bring him personal financial gain. In doing so, the complaint alleges, Force used fake online personas, and engaged in complex Bitcoin transactions to steal from the government and the target of the investigation. Specifically, Force allegedly solicited and received digital currency as part of the investigation, but failed to report his receipt of the funds, and instead transferred the currency to his personal account. In one such transaction, Force allegedly sold information about the government’s investigation to the target of the investigation. The complaint also alleges that Force invested in and worked for a digital currency exchange company while still working for the DEA, and that he directed the company to freeze a customer’s account with no legal basis to do so, then transferred the customer’s funds to his personal account. Further, Force allegedly sent an unauthorized Justice Department subpoena to a online payment service directing that it unfreeze his personal account.
Bridges allegedly diverted to his personal account over $800,000 in digital currency that he gained control of during the Silk Road investigation. The complaint alleges that Bridges placed the assets into an account at Mt. Gox, the now-defunct digital currency exchange in Japan. He then allegedly wired funds into one of his personal investment accounts in the United States mere days before he sought a $2.1 million seizure warrant for Mt. Gox’s accounts.
Bridges self-surrendered today and will appear before Magistrate Judge Maria-Elena James of the Northern District of California at 9:30 a.m. PST this morning. Force was arrested on Friday, March 27, 2015, in Baltimore and will appear before Magistrate Judge Timothy J. Sullivan of the District of Maryland at 2:30 p.m. EST today.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Kathryn Haun and William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI’s San Francisco Division, the IRS-CI’s San Francisco Division, the Department of Justice Office of the Inspector General and the Department of Homeland Security Office of the Inspector General in Washington D.C. The Treasury Department’s Financial Crimes Enforcement Network also provided assistance with the investigation of this case.
Former FBI Special Agent Sentenced to 10 Years in Prison for Bribery and Obstruction SchemeRead the Press Release
A former FBI special agent was sentenced today to 10 years in prison and ordered to forfeit $70,000 for soliciting and accepting bribes to obstruct a federal grand jury investigation into an alleged kickback scheme involving a defense contractor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carlie Christensen of the District of Utah and Justice Department Inspector General Michael E. Horowitz.
“FBI agents—like all federal law enforcement—must be above reproach, but former Special Agent Lustyik sold his badge and position of public trust to the highest bidder,” said Assistant Attorney General Caldwell. “This sentence serves as a stark reminder that no one is above the law. Corrupt officials who break the law and breach their oaths will be prosecuted and sent to prison, even if they come from within the ranks of federal law enforcement.”
“These three defendants attempted to thwart a significant criminal investigation in Utah,” said U.S. Attorney Christensen. “Two of these defendants were entrusted with protecting our citizens and upholding the law. Their conduct, in particular, stands in stark contrast to the integrity and sacrifice of the men and women in our military and law enforcement ranks and their sentences today send a powerful message that no one is above the law.”
“Today’s sentencings represent important steps toward justice in this case,” said Inspector General Horowitz. “Department of Justice employees and their associates must be held accountable when they abuse their authority and betray the public’s trust.”
Robert G. Lustyik Jr., 52, of Sleepy Hollow, New York, a 24-year veteran of the FBI, pleaded guilty to all charges in an 11-count indictment on Sept. 29, 2014. Specifically, Lustyik pleaded guilty to conspiracy to commit bribery and obstruction, eight counts of honest services wire fraud, obstruction of a grand jury investigation and obstruction of an agency proceeding.
Lustyik’s co-defendants, Michael L. Taylor, 54, of Harvard, Massachusetts, and Johannes W. Thaler, 51, of New Fairfield, Connecticut, were also sentenced today to 24 months in prison and 13 months in prison, respectively, for their roles in this scheme. Thaler was also ordered to forfeit $70,000, joint and several with Lustyik. U.S. District Senior Judge Tena Campbell of the District of Utah imposed all three sentences.
Lustyik and Thaler both pleaded guilty for their involvement in a similar bribery scheme in the Southern District of New York. Thaler was sentenced to 30 months in prison in that case, and will serve the two sentences consecutively. Lustyik is scheduled to be sentenced on April 30, 2015, in the Southern District of New York.
According to court documents, from October 2011 to September 2012, Lustyik and Thaler conspired to use Lustyik’s official position as an FBI counterintelligence special agent to obstruct a criminal investigation into Taylor, a businessman who owned and operated American International Security Corporation. Taylor was under investigation for allegedly paying kickbacks to obtain a series of contracts from the Department of Defense worth approximately $54 million. Taylor promised Lustyik and Thaler that, in exchange for their help, he would provide them cash and multimillion dollar business contracts. In an email message, Taylor told the two men, “I’ll make you guys more money than you can believe, provided they don’t think I’m a bad guy and put me in jail.”
According to court documents, Lustyik attempted to obstruct the investigation into Taylor by identifying Taylor as an official FBI confidential source in an effort to persuade the FBI, the Justice Department and the prosecutors and law enforcement agents in Utah that Taylor’s usefulness to the government outweighed the government’s interest in prosecuting him. Indeed, Lustyik emphasized that indicting Taylor would threaten the nation’s security. Lustyik also sought to take steps to directly intervene in the investigation by interviewing key witnesses.
According to court documents, the defendants boasted about the success of their scheme. In one email message, Lustyik wrote to Taylor, “The rate this is going. I will be indicted way before u ever are !!” Lustyik wrote separately to Thaler, “I can leave [the FBI] in June. But I’m afraid to if [Taylor] gets indicted n I’m not an agent I’m no help. Has he mentioned giving me‐u a salary?”
Taylor admitted at his plea hearing that, as part of this conspiracy, he offered Lustyik a six-figure salary and a share of the proceeds from various multi-million dollar business deals he was pursuing. Acknowledging this, Lustyik wrote to Taylor, “Let’s just get Utah over with and get stinking rich,” to which Taylor replied, “Getting stinking rick [sic], we are well on the way with that so I have the ball.”
The investigation was conducted by the U.S. Department of Justice Office of Inspector General. The case was prosecuted by Deputy Chief Peter Koski and Trial Attorney Maria Lerner of the Criminal Division’s Public Integrity Section and Trial Attorney Ann Marie Blaylock of the Criminal Division’s Asset Forfeiture and Money Laundering Section. Trial Attorney Scott Ferber of the National Security Division’s Counterespionage Section also assisted in the prosecution.
Former Contract Employee Sentenced to Federal Prison for Theft of an Estimated $478,000 in U.S. Postal Service PropertyRead the Press Release
In San Antonio today, 68-year-old Marvis Charles Box of Converse, TX, was sentenced to three years in federal prison for stealing an estimated $478,000 of United States Postal Service equipment announced Acting United States Attorney Richard Durbin, Jr., and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez, Houston Division.
In addition to the prison term, United States District Judge David A. Ezra ordered that Box pay $467,044.75 restitution to the U.S. Postal Service and be placed on supervised release for a period of three years after completing his prison term.
As a U.S. Postal Service contract employee, Box was responsible for transporting mail to and from the Canyon Lake Post Office. On approximately 175 occasions between August 22, 2012 and December 4, 2013, Box stole U.S. Postal Service mail transportation equipment, namely sacks, pouches, trays, metal containers, wire cages, pallets and other items. He subsequently sold the materials, including an estimated 418,000 pounds of metal to a San Antonio scrapyard, for personal financial gain. On May 30, 2014, Box pleaded guilty to one count of theft of government property.
This case was investigated by inspectors with the U.S. Postal Inspection Service. Assistant United States Attorney Michael R. Hardy prosecuted this case on behalf of the Government.
Federal and Local Law Enforcement Along with Michigan Department of Corrections Officials Meet with State Parolees to Improve Kalamazoo Prisoner ReentryRead the Press Release
Officials encourage parolees to take advantage of services and make smart choices in leading law abiding lives or risk returning to prison
GRAND RAPIDS, MICHIGAN – In an effort to reduce the risk and rate of repeat offenses by recently released prisoners, U.S. Attorney for the Western District of Michigan Patrick Miles, in collaboration with the Michigan Department of Corrections (MDOC), has brought a new program called “Facing Choices” to Kalamazoo. As part of the Facing Choices Program, state and federal law enforcement officials met late last week with state parolees in the Kalamazoo area. Parolees also heard from several speakers who have successfully turned their lives around. Representatives of service providers and programs available to parolees were also in attendance. This is the third in a series of such meetings to be held throughout Western Michigan.
The program is intended to help parolees make decisions that keep them on a law-abiding path and away from offending again. “The goal of the Facing Choices program is to reduce recidivism. That means less crime which means fewer victims as well as lessening the burden on law enforcement, the judicial and prison systems, and taxpayers,” U.S. Attorney Miles stated. “Nationally, approximately two-thirds of ex-offenders are rearrested within three years of release and almost half are re-incarcerated. In Michigan, the recidivism rate is 28 percent. According to one report I read, if 93 percent of prisoners in the U.S. did not commit another offense, American taxpayers would save between $17.3 billion and $1.1 trillion.”
U.S. Attorney Miles, Kalamazoo Department of Public Safety Chief Jeff Hadley, Chief Prosecuting Attorney Jeff Getting, other law enforcement representatives and MDOC officials reminded the parolees that law enforcement, prosecutors, and the MDOC are prepared to see them sent back to jail if they make poor choices and re-offend. But, they prefer seeing them become productive members of society and succeed. A parolee who re-offends is a high priority target for law enforcement. “But the point of this meeting is not just to remind you that we’ll hold you accountable if you do wrong,” U.S Attorney Miles explained. “We’re here to remind you that parole is an opportunity for you. Take advantage of the resources and the contacts that your parole status affords you.”
MDOC Deputy Administrator Brian Shipman noted: “The mission of the Department of Corrections is to hold offenders accountable while promoting their success. The MDOC envisions the placement of an offender into the community as a carefully planned process. It is guided by a case plan which is meant to prepare him or her for a legally and socially acceptable adjustment to life in the community. Supported by experienced professionals in the public and private sectors, the offender will have the resources and guidance necessary to support successful community adjustment.”
Over 50 parolees attended the event. Following the comments and encouragement of the speakers, the parolees were directed to the attending service providers.
Representatives of the Kalamazoo County Sheriff’s Office, Kalamazoo County Prosecutor’s Office and Federal Bureau of Alcohol, Tobacco, Firearms and Explosives also spoke and shared in the message to the parolees. U.S. Attorney Miles praised the cooperation and collaboration that are critical to the Facing Choices program, “I am pleased that local, state, and federal law enforcement as well as County Prosecutors see the value in working together to reduce recidivism,” he said.
ENDEssex County, New Jersey, Man Admits Illegally Possessing Fireram and Smuggling Marijuana into Federal Pretrial Detention FacilityRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing a firearm and conspiring with others to smuggle contraband, including marijuana and tobacco, into a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Muhammad Subpunallah, 33, of Orange, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with the illegal possession of a firearm and to an information charging him with one count of conspiring to smuggle contraband into the Essex County Correctional Facility, a federal pretrial detention facility. Subpunallah is being held without bail.
According to the documents filed in this case and other cases and statements made in court:
On Oct. 11, 2011, Subpunallah had a loaded .38 caliber Cobra firearm in his waistband while standing near Broad and Market streets in Newark. He had previously been convicted of robbery in Essex County Superior Court. After Subpunallah was arrested and detained on the illegal possession of a firearm, he engaged in a conspiracy to smuggle contraband into the Essex County Correctional Facility. From September 2013 to February 2014, Subpunallah directed a relative, Vladimir Sauzereseteo, to deliver contraband, including marijuana and tobacco, to Brian Kapalin, a New Jersey lawyer, who then smuggled the contraband into the Essex County Correctional Facility in exchange for a cash fee. Subpunallah sent inmates to the attorney visitor room to meet with Kapalin and retrieve the contraband.
In January 2014, Subpunallah spoke with Kapalin over a recorded correctional facility phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. Sauzereseteo was then paid $1,650 via Western Union money transfers, which he used to purchase marijuana that he delivered to Kapalin, along with a cash payment for Kapalin’s service. A few days later, Kapalin met the inmate from the Essex County Correctional Facility in the attorney visitor room and he delivered the marijuana.
The charge for illegally possessing a firearm carries a maximum penalty of 10 years in prison. The charge for conspiring to provide contraband, including marijuana, to inmates at the Essex County Correctional Facility, carries a maximum penalty of five years in prison. Each charge also carries a maximum fine of $250,000. Sentencing is scheduled for July 20, 2015.
U.S. Attorney Fishman credited officers with the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George P. Belsky; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark: and investigators with the Internal Affairs Division of the Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s plea.
The government is represented by Special Assistant U.S. Attorney Andrew Tyler and Assistant U.S. Attorneys Cari Fais of the Criminal Division, General Crimes Unit; Robert Frazer, of the Organized Crime/Gangs Unit; and Rahul Agarwal of the Special Prosecutions Division, in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Dubuque Man Sentenced to Federal Prison for Possession of an Unregistered Sawed-Off ShotgunRead the Press Release
A Dubuque man who possessed an unregistered sawed-off shotgun was sentenced on March 26, 2015 to more than seven years in federal prison.
Jordan Michael Edmonds, age 24, from Dubuque, Iowa, received the prison term after a December 29, 2014 guilty plea to one count of possession of an unregistered sawed-off shotgun.
At the plea hearing, Edmonds admitted that, on or about June 14, 2014, he knowingly possessed a 12-gauge shotgun with a barrel less than 18 inches that had a partially obliterated serial number. The shotgun was not registered to him.
Edmonds was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Edmonds was sentenced to 87 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to pay $626.78 in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Special Assistant United States Attorney Erin R. Eldridge and Assistant United States Attorney C.J. Williams and was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-1017.
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District Court Enters Permanent Injunction against Los Angeles Seafood Company and Senior Officers to Stop Distribution of Adulterated ProductsRead the Press Release
The U.S. District Court for the Central District of California entered a consent decree of permanent injunction against L.A. Star Seafood Company Inc. of Los Angeles and its corporate officers Sima Goldring and Sam Goldring to prevent the distribution of adulterated seafood products, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Central District of California on Jan. 5, at the request of the U.S. Food and Drug Administration (FDA), alleging that the company’s seafood products are produced under conditions that are inadequate to ensure the safety of its products. The complaint alleges that L.A. Star Seafood imports, receives, prepares, processes, packs, holds and distributes ready-to-eat smoked and salt-cured seafood, including cold-smoked mackerel and steelhead trout, and pickled herring and sprats. The complaint also alleges that Sima Goldring and Sam Goldring are L.A. Star Seafood’s corporate officers with the authority and responsibility for preventing and correcting violations of federal law at the company.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the federal Food, Drug, and Cosmetic Act (FDCA). The consent decree requires L.A. Star Seafood to cease all manufacturing operations and requires that, in order for the defendants to resume distributing seafood products, the FDA first must determine that its manufacturing practices have come into compliance with the law.
“L.A. Star Seafood was repeatedly informed that the sanitation practices at its facility were deficient,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The failure to actively plan for and control the presence of bacteria and neurotoxins commonly found in seafood processing facilities can pose a serious risk to the public health.”
According to the complaint, FDA inspections in 2013 and 2014 documented a pattern of insanitary conditions resulting in the presence of Listeria monocytogenes (L. mono). These insanitary conditions were the result of deviations from current good manufacturing practices, such as not adequately cleaning surfaces and utensils used for cutting fish. Further, the FDA’s most recent inspection in February and March of 2014 documented the defendants’ failure to have and implement adequate Hazard Analysis and Critical Control Point (HACCP) plans that control Clostridium botulinum (C. bot) and L. mono hazards. L. mono is the bacterium that causes listeriosis, a serious and sometimes fatal infection for vulnerable groups such as newborns, the elderly and those with an impaired immune system. Ingestion of the neurotoxin C. bot can cause botulism. Though the incidence of botulism is rare, its effect is severe. The disease can cause paralysis or death if not promptly treated.
“Companies and their owners who violate food safety regulations endanger public health,” said Associate Commissioner of Regulatory Affairs Melinda K. Plaisier of the FDA. “The FDA will continue to take every necessary action to assure the food supply is safe.”
According to the complaint, the FDA documented numerous seafood HACCP and current good manufacturing practice violations when it inspected L.A. Star Seafood’s facility. The complaint alleges that the company’s products are therefore adulterated within the meaning of the FDCA. As further alleged, the company was told to take certain precautions while brining fish to control potential C. bot hazards but failed to take appropriate corrective action. According to the complaint, L.A. Star Seafood failed to adequately clean food-contact surfaces and food manufacturing equipment, utensils and containers to protect against contamination of food, and failed to protect in-process fish products from contamination. The complaint alleges that the company’s insanitary practices resulted in widespread L. mono contamination and that FDA environmental samples from critical areas of L.A. Star Seafood’s facility, such as the processing-room floor and on food-contact surfaces, tested positive for L. mono.
The government is represented by Trial Attorney Kerala T. Cowart of the Civil Division’s Consumer Protection Branch, with the assistance of Donald Yoo of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Melissa J. Mendoza of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Convicted Felon Sentenced to 33 Months in Prison for Possession of AmmunitionRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez, on March 30, 2015, sentenced Rudy Bridges, 31, to 33 months in prison for possession of ammunition by a convicted felon, United States Attorney Ronald W. Sharpe announced.
According to court records, U.S. Customs and Border Protection (CBP) inspectors discovered 290 rounds of ammunition in Bridges’ luggage when he arrived in St. Thomas aboard a Spirit Airlines flight from Fort Lauderdale on April 18, 2013.
On December 18, 2014, Bridges pleaded guilty to possession of ammunition by a convicted felon. Judge Gomez also sentenced Bridges to three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and CBP. It was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Caddo Parish Commissioner Michael Williams indicted for stealing from nonprofitRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted Caddo Parish Commissioner Michael Dwayne Williams for defrauding the Caddo Parish Commission and stealing from a nonprofit meant to help at-risk youth.
Williams, 54, of Shreveport, was indicted on 12 counts of wire fraud. The indictment alleges that from October 1, 2012 through July 1, 2014, Williams devised a scheme to take more than $2,000 from a nonprofit’s bank account. Williams urged the parish commission to appropriate public funds for the nonprofit SWAG Nation. Once those funds were allocated from the parish’s budget to SWAG Nation, Williams caused a bank debit card to be issued for the nonprofit. Between April of 2013 and July of 2014, Williams used an ATM card to remove money on numerous occasions. According to the indictment, he took $100 to $200 each time that he made a withdrawal initializing 12 transactions from August 2013 to June 2014 for personal use. SWAG Nation’s declared purpose is to partner with local institutions to help mentor and counsel at-risk individuals ages 7 to 17 so that they can better function in society.
“The Caddo Parish Sheriff’s Office investigated Michael Williams for several months and is pleased with the return of this indictment,” said Caddo Sheriff Steve Prator. “Unfortunately, there are people elected to office who will abuse the public’s trust. This money was meant for children, not politicians.”
Williams faces up to 20 years in prison, five years of supervised release, and a $250,000 fine for each count.
The FBI and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Joseph G. Jarzabek and Brandon B. Brown are prosecuting the case.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Bridgeport Man Sentenced to 55 Months in Prison for Stolen Check SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAYQUAN JACKSON, also known as “Quan” and “DaeDae,” 27, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 55 months of imprisonment, followed by three years of supervised release, for operating a mail fraud and bank fraud scheme.
According to court documents and statements made in court, JACKSON and others stole mail from residences in Fairfield County throughout 2013 and 2014 to obtain either blank checks or credit card “convenience checks.” JACKSON and others then used some of the stolen checks to purchase cars, motorcycles, and all-terrain vehicles listed for sale on the Internet from unsuspecting victims in surrounding states. Some of the stolen checks also were provided to “runners” who deposited the checks into their bank accounts. JACKSON and others then withdrew the funds from the accounts.
The court calculated the intended loss to financial institutions and individual victims resulting from this scheme as more than $177,000. JACKSON was ordered to pay restitution in the amount of $84,242.
JACKSON was arrested on August 22, 2014. On October 29, 2014, he pleaded guilty to one count of conspiracy to commit mail fraud and bank fraud.
This matter is being investigated by the U.S. Postal Inspection Service, with substantial assistance from the Connecticut Financial Fraud Task Force and the Greenwich, Fairfield, Wilton, and Bridgeport Police Departments, as well as law enforcement in New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Marc Silverman.
Brazilian Man Pleads Guilty and Sentenced for Illegally EntryRead 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 Demilson Loubak Ferreira, 36, of Brazil, pleaded guilty to illegally entering the United States at a location other than a designated port of entry before U.S. Magistrate Judge Jeremiah J. McCarthy. The defendant was then sentenced to time served.Assistant U.S. Attorney Paul J. Campana, who handled the case, stated that on March 26, 2015, shortly after 11:00 p.m., the defendant, his wife and their child were found aboard a freight train crossing the Blackrock International Train Bridge in Buffalo. The train was stopped at the order of a Customs and Border Protection Officer who detected the Ferreira and his family on the train.
The defendant’s wife and child were returned to Canada on March 27, 2015. Ferreira will also be removed to Canada.
The plea and sentencing are the result of an investigation by Customs and Border Protection, under the direction of Acting Special Agent in Charge Rose Hilmey.
Berlin Man Charged with Producing Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted David Edward Weatherholtz, age 55, of Berlin, Maryland, on charges of producing and possessing child pornography, and attempting to entice minors to engage in sex. The indictment was returned on March 24, 2015 and unsealed today upon his arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Worcester County Sheriff Reggie T. Mason, Sr. and Worcester County State’s Attorney Beau Oglesby.
According to the six count indictment, from 2008 to 2012, Weatherholtz coerced a minor to engage in sex to produce images of child pornography. On December 16, 2014, Weatherholtz is alleged to have possessed a computer hard drive and a laptop containing child pornography.
The indictment further alleges that from December 3 to 16, 2014, Weatherholtz used electronic mail and text messaging to attempt to coerce minors to engage in sex.
Weatherholtz faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of three counts of producing child pornography; life in prison, with a minimum mandatory sentence of 10 years in prison, for attempted enticement; and 10 years in prison on each of two counts for possession of child pornography. An initial appearance was held this afternoon in U.S. District Court in Baltimore. Weatherholtz was detained pending a detention hearing scheduled for April 3, 2015 at 11:30 a.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland State Police, Worcester County Sheriff’s Office, Worcester County State’s Office’s Office and the Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
BSI SA of Lugano, Switzerland, is First Bank to Reach Resolution Under Justice Department’s Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that BSI SA, one of the 10 largest private banks in Switzerland, is the first bank to reach a resolution under the Department of Justice’s Swiss Bank Program.
“Because of the department’s continuing efforts to root out offshore tax evasion, Swiss banks are operating much differently today than they did just a few years ago, and the department’s Swiss Banking Program is a big part of that change,” said Acting Deputy Attorney General Sally Quillian Yates. “When we announced the program, we said that it would enhance our efforts to pursue those who help facilitate tax evasion and those who use secret offshore accounts to evade taxes. And it has done just that. We are using the information that we have learned from BSI and other Swiss banks in the program to pursue additional investigations into both banks and individuals.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared United States-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
- Make a complete disclosure of their cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, BSI agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts, and pay a $211 million penalty in return for the department’s agreement not to prosecute BSI for tax-related criminal offenses.
“The department’s Swiss Bank Program is an innovative effort to get the financial institutions that facilitated a massive fraud on the American tax system to come forward with information about their wrongdoing – and to ensure that they are held responsible for it,” said Acting Associate Attorney General Stuart F. Delery. “Today’s resolution demonstrates that the program is working. BSI is paying an appropriate penalty for its misconduct and the information and continuing cooperation we have required the banks to provide in order to participate in the program is allowing us to systematically attack offshore tax avoidance schemes.”
BSI helped its U.S. clients create sham corporations and trusts that masked the true identity of its U.S. accountholders. Many of its U.S. clients also opened “numbered” Swiss bank accounts that shielded their identities, even from employees within the Swiss bank. BSI acknowledged that in order to help keep identities secret, it issued credit or debit cards to many U.S. accountholders without names visible on the card itself.
BSI not only helped U.S. clients shield their identity from the Internal Revenue Service (IRS). but helped them repatriate cash as well. BSI admitted that its relationship managers and their U.S. clients used code words in emails to gain access to funds. BSI disclosed instances where its U.S. clients would use coded language, such as asking their private bankers, “can you download some tunes for us?” or note that their “gas tank is running empty” when they required additional cash to be loaded to their cards.
From the beginning of the Swiss Bank Program, the department has emphasized the importance of the banks’ helping to identify individuals who facilitate U.S. tax evasion and U.S. accountholders. BSI provided substantial assistance in this regard.
“An individual is not culpable simply because he or she is identified by a bank within the program,” said Acting Assistant Attorney General Caroline D. Ciraolo of the department’s Tax Division. “With that said, the department strongly encourages those individuals and entities currently under indictment, under investigation, or who have concerns regarding their potential criminal liability to contact and fully cooperate with the department to reach a final resolution.”
Since 2009, the department has charged more than 100 offshore bank accountholders, dozens of facilitators, and financial institutions. The department’s offshore enforcement efforts have reached far beyond Switzerland, as evidenced by publicly announced actions involving banking activities in India, Luxembourg, Liechtenstein, Israel and the Caribbean.
BSI had more than 3,000 active United States-related accounts after 2008, many of which it knew were not disclosed in the United States. In resolving its criminal liabilities under the program, BSI provided extensive cooperation and encouraged hundreds of U.S. accountholders to come into compliance. BSI is also assisting with ongoing treaty requests.
“This action under the Swiss Bank Program shows just how far we’ve come in our efforts to stop offshore tax avoidance,” said Deputy Commissioner Douglas O’Donnell of IRS’s Large Business and International Division (LB & I). “The IRS and DOJ remain committed to aggressively enforce our nation's tax laws regardless of how sophisticated or complicated the schemes may be.”
While BSI’s U.S. accountholders who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS’s offshore voluntary disclosure programs, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS offshore voluntary disclosure program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of BSI’s non-prosecution agreement, its noncompliant U.S. accountholders must now pay that 50 percent penalty to the IRS if they wish to enter the IRS’ program.
BSI and other banks in the Swiss Bank Program are also providing detailed information to the department about transfers of money from Switzerland to other countries. The Tax Division and the IRS intend to follow that money to uncover additional tax evasion schemes.
The department has emphasized the importance of identifying U.S. accountholders who have undeclared foreign bank accounts, and BSI has provided assistance in that task. Because of the information provided to the department under the program, the Tax Division has already begun the process of identifying noncompliant U.S. accountholders who have maintained accounts at many Swiss banks participating in the Swiss Bank Program.
“Today’s action sends a clear message to anyone thinking about keeping money offshore in order to evade tax laws,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Fighting offshore tax evasion continues to be a top priority for IRS-CI and we will trace unreported funds anywhere in the world. IRS-CI special agents are our nation’s best financial investigators, trained to follow the money and enforce our country’s tax laws to ensure fairness for all.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and LB & I for their substantial assistance, as well as Trial Attorney Kevin F. Sweeney of the Tax Division, who served as lead counsel on this matter, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
- Make a complete disclosure of their cross-border activities;
Acoma Pueblo Man Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Arthur L. Garcia, 23, a member and resident of Acoma Pueblo, N.M., pleaded guilty on Friday, March 27, 2015, to a voluntary manslaughter charge.
According to court filings, Garcia killed the victim, a 33-year-old Acoma Pueblo man, in the early morning hours of May 8, 2014, by throwing a weight at the victim and striking him in the head. The crime occurred during a scuffle between Garcia and the victim on Acoma Pueblo in Cibola County, N.M.
During Friday’s proceedings, Garcia pled guilty to a felony information charging him with voluntary manslaughter. In entering his guilty plea, Garcia admitted killing the victim by striking the victim with a ten-pound weight with the intention of causing him serious bodily injury.
At sentencing, Garcia faces a statutory maximum penalty of 15 years in prison followed by at least three years of supervised release. Garcia has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Acoma/Laguna Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
Saturday 28 March 2015
March Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 27 indictments charging 30 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jose Acosta-Noguez, a/k/a Jorge Avila, age 45, of Lincoln, is charged with illegal reentry into the United States on or about March 2, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Misti Bohlen, age 33, of Blue Hill, Nebraska, is charged in a two-count Indictment . Count I of the Indictment charges the defendant with misappropriation of postal funds from on or about November 2014, through and including to on or about February 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Bohlen with false entries and reports of money or securities while being a United States Postal Service employee from on or about November 2014, through and including to on or about February 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Abraham Diaz, age 50, of Omaha, is charged with illegal reentry into the United States on or about March 6, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Israel Gaytan-Cruz, age 34, of Omaha, is charged with illegal reentry into the United States on or about March 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Anthony Shaquille Harris, age 25, and Tiara A. Blanco-Liggins, age 23, both of Lincoln are charged in a two-count Indictment. Count I of the Indictment charges the defendants with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about February 16, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Harris and Blanco-Liggins with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about February 16, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Yazmani Hernandez-Hernandez, age 30, of Omaha, is charged with illegal reentry into the United States on or about March 12, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Timothy Patrick Hoyt, age 44, is charged with robbery from the Godfather’s Pizza Restaurant, 15234 West Maple Road, Omaha, Nebraska, on or about July 23, 2013. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Emiliano Juarez Lopez, age 38, of Lincoln, is charged with illegal reentry into the United States on or about March 9, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* John S. Loeffler, age 52, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography from between on or about July 2013 and continuing through September 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Loeffler with possession of child pornography on or before September 28, 2014.
The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Jose Fortino Macia Gonzalez, age 36, of Lincoln, is charged with illegal reentry into the United States on or about March 4, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Miguel Martell-Rios, age 36, of Omaha, is charged with illegal reentry into the United States on or about March 1, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Shyla Martinez is charged with misprision of a felony from an unknown date but at least as early as July 15, 2014, up to and including October 25, 2014. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 1 year term of supervised release and a $100 special assessment.
* Cynthia Mcauliffe, also known as Cyndi Mcauliffe, age 31, of Alexandria, Nebraska, is charged in a two-count Indictment . Count I of the Indictment charges the defendant with misappropriation of postal funds from on or about July 2014, through and including to on or about January 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Mcauliffe with false entries and reports of money or securities while being a United States Postal Service employee from on or about July 2014, through and including to on or about January 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Frank I. Nava, age 32, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine beginning on or about December 1, 2014, and continuing to on or about February 3, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II, III and IV of the Indictment charge Nava with distribution of 5 grams or more of methamphetamine on or about December 22, 2014, on or about January 8, 2015 and on or about January 12, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment for each count.
* Roman Perales, age 16, of Winnebago, is charged in a five-count Indictment . Counts I and II of the Indictment charge the defendant with assault with intent to commit any felony on or about September 22, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges Perales with assault with a dangerous weapon on or about September 22, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges defendant with discharging a firearm during a crime of violence on or about September 22, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count V of the Indictment charges Perales with making threatening interstate communications on or about September 13, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Armando Perez-Sanchez, a/k/a Mario Pena-Sanchez, age 39, of Omaha, is charged with illegal reentry into the United States on or about February 11, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Charles M. Perkins, Jr., age 49, of Omaha, is charged with failure to register as a sex offender from on or about December 11, 2014, and continuing until January 27, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Ramon Pintado-Delgado, age 42, of Omaha, is charged with illegal reentry into the United States on or about March 10, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Felipe Andres Portillo-Cortes, age 33, of Omaha, is charged with illegal reentry into the United States on or about March 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Preciado, age 28, of Mojave, California and Alberto Hineges, Jr., age 29, of Mendota, California are charged in a two-count Indictment. Count I of the Indictment charges Preciado with possession with intent to distribute a mixture of methamphetamine on or about February 28, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Hineges with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about February 28, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment
* Jose Ramirez Figueroa, a/k/a Antonio Ramirez Figueroa, age 29, of Omaha, is charged with illegal reentry into the United States on or about February 19, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Leonel Ramirez Gomez, age 48 , of Grand Island, Nebraska, is charged in a three-count Indictment. Counts I and II of the Indictment charge the defendant with distribution of a mixture containing methamphetamine on or about January 16, 2015 and January 23, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment for each count. Count III of the Indictment charges Gomez with carrying a firearm during and in relation to, a drug trafficking offense on or about January 23, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Danielle Marie Rico, age 31, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with theft of Government funds from the Social Security Administration beginning in or around July 2008, and continuing without interruption until in or around July 2013 by receiving Social Security Disability Insurance Benefits payments made to her to which she knew she was not entitled. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Rico with social security fraud on or about May 30, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count III of the Indictment charges the defendant with making a false statement on or about June 20, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Joshua W. Rodriguez, age 32 , of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession of a machine gun on or about December 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Rodriguez with drug user in possession of a firearm on or about December 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Juana Tapia Borjas, age 28, of Omaha, is charged with illegal reentry into the United States on or about February 25, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Miguel Tercero Bernabe, age 39, of Omaha, is charged with illegal reentry into the United States on or about February 23, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ezequiel Zavala, age 40, and Mark Andrew Johnson, age 50, both of Omaha, are charged in a three-count Indictment. Count I of the Indictment charges Zavala with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine beginning on or about June 2014, and continuing to on or about March 5, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Zavala with possession with intent to distribute 50 grams of a mixture containing methamphetamine on or about March 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count III of the Indictment charges Johnson possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about March 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment.
Friday 27 March 2015
Wrigley Field Rooftop Owner Indicted in Alleged Scheme to Defraud Chicago Cubs, State and Local Taxing AuthoritiesRead the Press Release
CHICAGO ― An owner and operator of a rooftop entertainment venue overlooking Wrigley Field was indicted on federal fraud charges for allegedly scheming to withhold approximately $600,000 due and owing collectively to the Chicago Cubs, the State of Illinois, Cook County, and the City of Chicago, federal law enforcement officials announced today.
The defendant, R. MARC HAMID, 46, an attorney licensed in Illinois and residing in Chicago, owned and operated the rooftop venue Skybox on Sheffield located beyond the right field wall and bleachers of Wrigley Field. Hamid also owned and operated companies that purchased and re-sold tickets to entertainment and sporting events, including JustGreatTickets.com and Just Great Seats. Hamid was charged with four counts of mail fraud in an indictment that was returned yesterday by a federal grand jury. He will be arraigned on a date yet to be determined in U.S. District Court.
The indictment also seeks forfeiture of at least $600,000 in alleged fraud proceeds.
According to the indictment, for the years 2008 through 2011, Hamid caused Skybox on Sheffield to submit false annual royalty statements to the Chicago Cubs that fraudulently under-reported event attendance figures by thousands of paid attendees, and under-reported gross revenues for the rooftop by a total of more than $1.5 million. By concealing the actual revenues of Skybox on Sheffield from the Cubs, Hamid caused Skybox on Sheffield to withhold hundreds of thousands of dollars in royalty payments rightfully owed to the Cubs under the terms of the rooftop’s agreement with the Cubs.
Hamid also caused Skybox on Sheffield to submit false sales tax returns to the State of Illinois and false amusement tax returns to Cook County and the City of Chicago that fraudulently under-reported event attendance and gross revenues during 2008-2011. By concealing the actual attendance and revenues of Skybox on Sheffield, Hamid caused Skybox on Sheffield to withhold hundreds of thousands of dollars due and owing to the state and local taxing authorities.
According to the indictment, Hamid caused Skybox on Sheffield to falsely report that the rooftop had 200 or fewer attendees at certain events, when Hamid knew that more than 200 persons had attended the events, making it appear that the rooftop had complied with city ordinances limiting the number of attendees at the rooftop to 200 per event. Hamid also allegedly caused sales revenues for Skybox on Sheffield to be diverted to his ticket businesses, including Just Great Tickets and Just Great Seats, in order to conceal some of the rooftop revenues from the Cubs and others. According to the indictment, Hamid used the unlawfully withheld funds to pay Hamid’s personal expenses, and business expenses of Skybox on Sheffield and Hamid’s other businesses.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Stephen Boyd, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation in Chicago; and Tony Gómez, Postal Inspector in Charge of the U.S. Postal Inspection Service in Chicago. The government is being represented by Assistant U.S. Attorneys Ryan Hedges, Barry Jonas, and Katherine Neff Welsh.
Each count of mail fraud carries a maximum sentence of 20 years in prison and a $250,000 fine or an alternate fine of twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Volo, Illinois Woman Charged in Federal Court with Attempted Robbery of Chase Bank in JohnsburgRead the Press Release
ROCKFORD — A Lake County woman was charged yesterday in federal court with attempted bank robbery. TERESA M. KNOWLES, 39, of Volo, Ill., was charged with the attempted robbery of Chase Bank located at 2911 Commerce Drive, Johnsburg, Illinois, on March 24, 2015. According to the complaint, Knowles entered Chase Bank at about 4:36 p.m. and approached a teller window at the counter and passed a note to the teller demanding money. The teller refused to turn over any money to the defendant and the defendant left the bank. Thereafter, officers of the McHenry Police Department stopped Knowles in a vehicle matching the description of the vehicle used in the attempted robbery.
Knowles is scheduled to appear before U. S. Magistrate Judge Iain D. Johnson for an initial appearance on March 31, 2015, at 11:00 a.m. in federal court in Rockford.
Attempted bank robbery carries a maximum potential penalty of up to 20 years in prison, up to 3 years of supervised release following imprisonment, a fine of up to $250,000, and full restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Keith Von Allmen, Chief of the Johnsburg, Illinois Police Department; John M. Jones, Chief of the McHenry, Illinois Police Department; and Phillip Perlini, Chief of the Grayslake, Illinois Police Department.
The government is represented by Assistant U.S. Attorney Michael D. Love.
U.S. Attorney Finley to speak to Shreveport breakfast group for Women’s History MonthRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley plans to visit the Tuesday Morning Breakfast Group to speak in honor of Women’s History Month.
The meeting is scheduled for 8 a.m., March 31, 2015, at the Pamoja Cultural Center, 3806 Linwood Ave., Shreveport. In observance of Women’s History Month, the Tuesday Morning Breakfast Group has selected local women to speak on a variety of issues. Finley will discuss her role as the U.S. Attorney of the Western District of Louisiana as well as the history and the progress women have made in the United States. The meeting is free and open to the public. Breakfast is Dutch treat. For more information, contact coordinator Lloyd Thompson at (318) 934-8036.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010, to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force and currently serves as Chair of the U.S. Attorney’s Office of Management and Budget Committee.
U.S. Attorney Finley speaks to LSUE and Southern University law studentsRead the Press Release
EUNICE/BATON ROUGE, La. – United States Attorney Stephanie A. Finley visited Louisiana State University at Eunice and Southern University Law Center in Baton Rouge this week to talk about her office’s role in administering justice.
“I always enjoy spending time with our future leaders,” Finley said. “If I can encourage or inspire any of them to strive for excellence and commit to sacrifice, no matter their career choice, then we all benefit.
The U.S. Attorney and FBI Senior Supervisory Resident Agent Don Bostic spoke to students at LSU at Eunice during an Introduction to Criminal Justice class on March 23, 2015. Finley and Bostic gave a presentation on the federal criminal process. They touched on the role of social media in criminal cases, the relationship between federal law enforcement and local law enforcement, the work that goes into investigating a case, the various jobs offered within the Department of Justice, and the makeup of the Western District of Louisiana, among other topics.
Louisiana State University at Eunice is a two-year community college, which is part of the LSU school system, and was founded in the mid-1960s. Find out more at www.LSUE.edu.
U.S. Attorney Finley also visited a Law Office Practice class at Southern University Law Center on March 24, 2015 in Baton Rouge. She spoke to the students about the role of the U.S. Attorney’s Office and the various careers available within agencies under the Department of Justice. She was also present to answer questions from the students about the federal civil and criminal practices of the U.S. Attorney’s Office.
Southern University Law Center was formed in 1947, and its mission is to provide access and opportunity to a diverse group of students from underrepresented racial, ethnic, and socio-economic groups to obtain a high quality legal education with special emphasis on the Louisiana civil law. Find out more at www.sulc.edu.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force and currently serves as Chair of the U.S. Attorney’s Office of Management and Budget Committee.
Syracuse Man Sentenced for Robbing Two BanksRead 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 Gary R. Latray, 55, of Syracuse, NY, who was convicted of aggravated bank robbery, was sentenced to 77 months by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney John M. Alsup, who handled the case, stated that on November 10, 2009, the defendant entered Northwest Savings Bank at 3670 McKinley Parkway in Hamburg, NY, and handed the teller a note demanding a sum of money and indicating that he had an explosive device. The teller gave Latray a specific amount of money in response to the threat.
On December 1, 2009, the defendant entered a Suntrust Bank in Harrisonburg, Virginia, and carried out a similar style bank robbery.
The Court ordered that the defendant’s 77 month sentenced be served consecutively to a 30 year sentenced Latray received in Maryland on state robbery charges.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, the Hamburg Police Department, under the direction of Chief Gregory Wickett, the United States Attorney’s Office in the Western District of Virginia, under the direction of acting U.S. Attorney Anthony Giorno, the Harrisonburg, Virginia Police Department, under the direction of Chief Stephen B. Monticelli, the West Virginia State Police, under the direction of Colonel Jay Smithers, and the Garrett County, Maryland Sherriff’s Office, under the direction of Sheriff Rob Corley.
Stockbroker Sentenced to 105 Months in Scheme to Defraud Clients of over $2.6 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Gary Clark Steciuk, age 39, of Buffalo Grove, Illinois and Heber Springs, Arkansas, today to 105 months in prison followed by three years of supervised release for mail fraud in connection with a six year scheme to defraud his clients of their retirement funds. Judge Hollander also entered an order that Steciuk pay restitution of $2,386,025.07, the amount stolen from at least 18 victims.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Steciuk was a stockbroker who worked primarily out of his home in Buffalo Grove. Steciuk was authorized to sell stocks, bonds, options, mutual funds and variable annuities. In approximately 2009, Steciuk established a business, College Funding Solutions, ostensibly to provide investment advice to clients interested in investing and saving for college expenses.
According to his plea agreement, from May 2008 to August 2014, Steciuk embezzled funds from his clients’ investment accounts. These accounts were funded with client retirement funds and were maintained by the issuers of the annuities. Steciuk used a variety of methods to embezzle the funds. For example, Steciuk submitted forged forms at the firm that issued the annuities to change his clients’ address to a post office box in Hampstead, Maryland that Steciuk controlled. Steciuk then directed the firm to send funds from his clients’ accounts by check to the Maryland post office box. Steciuk forged the clients’ signatures on the back of the check, which were in the clients’ names, and deposited the checks into bank accounts he controlled. In addition, Steciuk created unauthorized loans from the clients’ annuities for his benefit; used forged transfer forms and forged checks to make unauthorized withdrawals; and in some cases, liquidated the annuities in their entirety and stole the proceeds.
Steciuk used the proceeds of the scheme to support a lavish lifestyle, including purchasing multiple homes for himself and others, as well as to support his extramarital affairs.
There were at least 18 victims of the scheme, including Steciuk’s step-grandmother and mother-in-law, as well as elderly and vulnerable victims. The total loss resulting from the fraudulent scheme is approximately $2,686,025.07.
Today’s announcement 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. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.
St. Louis Man Sentenced for Passing Counterfeit CurrencyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 26, 2015, Wade R. Buckner, 26, of St. Louis, MO, was sentenced to 9 days in prison, and 3 years of supervised release for Passing or Uttering Counterfeit Obligations or Securities, as charged in a one count indictment. Buckner was also ordered to pay a $100.00 special assessment.
At his sentencing, Buckner admitted that he passed counterfeit United States currency at the Oz Nightclub located in Sauget, Illinois, on March 7, 2013. Buckner handed the bartender a $100 bill to purchase drinks. Immediately realizing the bill was fraudulent, the bartender ran water over it, and the ink began to run. Security escorted Buckner to the exit where he was apprehended by the authorities. Police found an addition $400 worth of counterfeit currency.
The case was investigated by the United States Secret Service and the Sauget, Illinois, Police Department. The case was prosecuted by Assistant United States Attorney Michael Hallock.
Sewickley Man Admits Conspiring to Defraud Bank, Filing False Income Tax ReturnRead the Press Release
PITTSBURGH - A resident of Sewickley, Pa., pleaded guilty in federal court to charges of conspiracy to commit bank fraud and filing a false income tax return, United States Attorney David J. Hickton announced today.
Joseph W. Nocito, Jr. pleaded guilty to two felony counts before United States District Judge Arthur J. Schwab.
According to information presented to the Court at the guilty plea, Nocito knowingly and willfully conspired with other individuals to commit an offense against the United States, that is, bank fraud, in connection with Nocito’s purchase of the real property located in Longboat Key, FL. Nocito purchased the property on July 27, 2007 with a mortgage loan from Washington Mutual Bank in the amount of $2,377,000. In loan documents submitted by Nocito to the bank, Nocito falsely represented that the purchase price of the property was $3,000,000 and that a $600,000 cash deposit had been made by or on behalf of Nocito toward the purported $3,000,000 sales price. As part of the conspiracy, $458,350 of the mortgage loan monies were paid to Nocito as kickbacks, without the knowledge or approval of Washington Mutual Bank.
Nocito also filed a false tax return for calendar year 2007 in which Nocito reported that his total adjusted gross income was $88,269, whereas, as he knew and believed, his correct total adjusted gross income was $529,619.
Judge Schwab scheduled sentencing for Oct. 15, 2015. The law provides for a maximum total sentence of eight years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Nocito on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service and the Internal Revenue Service/Criminal Investigation Division conducted the investigation leading to the Information in this case.
Sentencings for March 24 - 25, 2015Read the Press Release
Eastern Shoshone Woman Sentenced for Voluntary Manslaughter
United States Attorney Christopher A. Crofts announced today that on March 25, 2015, Ardis Enos, a 21-year-old enrolled Eastern Shoshone woman from Ethete, Wyoming, was sentenced by United States District Judge Scott W. Skavdahl for voluntary manslaughter. Enos received 132 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $3,700.00. The charge stemmed from Enos killing, upon a sudden heat of passion, her newborn son on March 26, 2014, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation.
United States Attorney Christopher A. Crofts would like to remind everyone that a parent or parent’s designee may relinquish a newborn child who is 14 days of age or younger to a safe haven provider (a fire station, hospital, police department or sheriff’s office or any other place of shelter and safety identified by the department of family services which is staffed twenty-four (24) hours a day, seven (7) days a week) in accordance with Wyoming’s Safe Haven Laws [Wyo. Stat. §§ 14-11-101 et seq.] and retain complete anonymity. Relinquishment of a newborn child shall not, in and of itself, constitute abuse or neglect and the newborn child shall not be considered abused or neglected so long as the relinquishment is carried out in substantial compliance with the provision of the safe haven act.
Northern Arapaho Woman Sentenced for Assault Resulting in Serious Bodily Injury
United States Attorney Christopher A. Crofts announced today that on March 24, 2015, Yvonne Lynn Moss, a 38-year-old enrolled Northern Arapaho woman from St. Stephens, Wyoming, was sentenced by United States District Judge Scott W. Skavdahl for assault resulting in serious bodily injury. Moss received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution will be determined at a later date. The charge stemmed from an assault on Clarence Joseph Tyler, Moss’s boyfriend, which took place on or about October 11, 2014, on the Wind River Indian Reservation. Clarence Joseph Tyler subsequently died as a result of the injuries he suffered during the assault. The case was investigated by the Federal Bureau of Investigation with substantial assistance of the Bureau of Indian Affairs.
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Demario Robbins, 24, of North Tonawanda, NY, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that as an associate of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Robbins then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Robbins was arrested along with 16 other Schuele Boys Gang members and associates in July 2014. He is the second to be convicted. Aaron Glenn pleaded guilty on March 26, 2015. Also charged are:
• Antwan Garner, 29, Buffalo
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, Buffalo
On March 24, 2015, an additional seven members and associates were indicted including:
• Eric Sears, 47, Buffalo
• Andre Jackson, 28, Buffalo
• Tyrell Skipper, 25, Buffalo
• Willie Griffin, 25, Buffalo
• Robert Brown, 52, Buffalo
• Samuel Walker, 50, Buffalo
• Tywone Smothers, 36, Buffalo
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 on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sanford Felon Convicted of Firearm and Drug OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Eugene Chisolm (57, Sanford) guilty of possessing a firearm as a convicted felon and possessing cocaine and cocaine base (“crack”) with the intent to distribute it. He faces a mandatory minimum penalty of 15 years, up to life, in federal prison on the firearm count, and up to 20 years’ imprisonment on the drug count. His sentencing hearing is scheduled for June 19, 2015. Chisolm was indicted on December 19, 2014.
According to evidence presented at trial, on March 13, 2014, law enforcement officers executed a search warrant at Chisolm’s residence in Sanford. During the search, agents recovered drug-trafficking quantities of crack cocaine and cocaine, along with digital scales and other equipment that had recently been used to manufacture the crack cocaine. Agents also recovered a loaded Smith and Wesson.40 caliber pistol. Chisolm was subsequently arrested and interviewed by agents. He admitted that he lived at the residence and that he had sold crack from there.
Prior to this incident, Chisolm had been convicted of multiple felony offenses, including robbery, burglary, battery on a law enforcement officer, and possession of a firearm by a convicted felon. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Seminole County Sheriff’s Office, City County Investigative Bureau. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Rosebud Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 23, 2015, by U.S. Judge Roberto A. Lange.
Kameron Jackson, age 22, was sentenced to 12 months and one day in custody, 5 years of supervised release, $60 restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Jackson was indicted for Failure to Register as a Sex Offender by a federal grand jury on August 19, 2014. He pled guilty on January 21, 2015.
Between June 15, 2014, and August 7, 2014, Jackson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Todd County, South Dakota, and elsewhere.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher prosecuted the case. Jackson was immediately turned over to the custody of the U.S. Marshals Service.
Registered Sex Offender Sentenced to 10 Years in Prison for Accessing with Intent to View Child PornographyRead the Press Release
A registered sex offender was sentenced to 10 years in federal prison today for accessing an Omaha-based child pornography website with the intent to view graphic images and videos depicting child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division.
David William Peer, 37, pleaded guilty on Dec.16, 2014, to accessing with the intent to view child pornography. Following his prison sentence, Peer will be on supervised release for a period of 15 years, during which he is required to continue to register as a sex offender, is prohibited from having unapproved contact with minors, must submit to computer monitoring and must participate in sex offender treatment. Senior U.S. District Judge Joseph Bataillon of the District of Nebraska imposed the sentence.
During his plea hearing, Peer admitted that, in December 2012, he intentionally accessed an Omaha-based website containing thousands of images and videos depicting children, including infants and toddlers, being sexually abused.
In 2002, Peer was convicted in federal court in the District of Utah of receiving and distributing child pornography, and he was a registered sex offender at the time of this offense.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. The FBI was assisted in its investigation by Europol, as well as members of the FBI’s Violent Crimes Against Children International Task Force. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.