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12 May 2015
Pennsylvania Man Sentenced to Two Years in Prison for His Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hazleton, Pennsylvania, man was sentenced today to 24 months in prison for his role in one of the nation’s largest and longest-running stolen identity refund fraud schemes ever prosecuted, U.S. Attorney Paul J. Fishman announced.
Porfirio Paredes, 47, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds and one count of aggravated identity theft. Judge Cecchi imposed the sentence today in Newark federal court.
The conspiracy caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds and resulted in losses to the United States of more than $12 million.
According to documents filed in the case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud that results in over $2 billion in losses annually to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico;
- SIRF participants complete Individual Income Tax Return 1040 Forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 form are entitled to tax refunds – when in fact, the various tax withholdings indicated have not been paid and no refunds are due;
- SIRF perpetrators direct the U.S. Treasury Department to issue the refunds through checks to locations they control or can access, in various ways;
- SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value. The buyers then cash the checks at banks or check cashing businesses or deposit them into bank accounts.
Federal law enforcement agencies, recognizing that SIRF was a serious problem, created a multi-agency task force in New Jersey comprised of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations has revealed that starting as early as 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long-running SIRF scheme.
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fake 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted them, law enforcement officers learned just a handful of IP addresses created many of the fraudulent forms that led to the issuance of tax refund checks.
Paredes and the other members of the conspiracy then gained control of checks, sometimes bribing mail carriers to intercept checks and deliver them to other members of the conspiracy. Paredes used conspirators in Michigan and North Carolina to negotiate the fraudulently obtained treasury checks that he bought and sold.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently applied for refund checks before they were delivered to members of the conspiracy.
In addition to the prison term, Judge Cecchi sentenced Paredes to serve two years of supervised release and ordered him to pay restitution of $1,887,912.98.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli; and the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Carl. J. Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
Defense counsel: Alex Jardines Esq., Union City, New Jersey
Pacifica Bookeeeper Charged with Bank Fraud, Identity Theft and Filing False Tax ReturnsRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Krisinda Messer on charges of bank fraud, aggravated identity theft, and filing false tax returns, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the indictment, from 2007 through 2011, Messer, of Pacifica Calif., was employed as a bookkeeper by a San Francisco company, whose initials are J.A.E., Inc. Messer did not have signatory authority over J.A.E., Inc.’s account with Bank of America. She did, however, have signatory authority over a Wells Fargo Bank account held in the name of American Backflow Company (ABC), a company owned by a member of Messer’s family. ABC provided no goods or services to J.A.E., Inc. The indictment alleges that from May 12, 2008, through August 31, 2011, Messer executed a scheme to defraud Wells Fargo Bank by drafting J.A.E., Inc. checks payable to ABC, on which she forged her supervisor’s signature and then deposited the checks into the ABC bank account. Messer also unlawfully used her supervisor’s identification to make several of these transactions. The indictment further alleges Messer filed false tax returns for the 2009, 2010, and 2011 tax years that did not report to the IRS the income she received from her embezzlement activities. In sum, Messer is charged with twelve counts of bank fraud, in violation of 18 U.S.C. § 1344; four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and three counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1).
Messer is scheduled to make her initial appearance in federal court in San Francisco on May 28, 2015, at 9:30 a.m., before U.S. Magistrate Judge Jacqueline Scott Corley in San Francisco.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of thirty years in prison and a fine of $1,000,000 for each count of bank fraud. In addition, the maximum sentence for aggravated identity theft is two years in prison, consecutive to underlying felony for bank fraud. If convicted for filing a false tax return, the maximum penalties are three years in prison and a fine of $250,000 for each count of filing a false tax return. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant United States Attorney Jennifer Tolkoff and Assistant U.S. Attorney Thomas Moore are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Owner of Miami Home Health Care Company Sentenced to 10 Years in Prison for Lead Role in $13 Million Medicare Fraud SchemeRead the Press Release
An owner of a Miami home health care company was sentenced today to 10 years in prison for his leading role in a $13 million Medicare fraud scheme that involved paying kickbacks and bribes to patient recruiters, Medicare beneficiaries and others in South Florida doctors’ offices and medical clinics.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Alexander Lara, 46, of Hollywood, Florida, pleaded guilty before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida on Feb. 17, 2015, to one count of conspiracy to commit health care fraud. According to admissions made as part of his guilty plea, Lara was an owner and operator of Longcare Home Health Corporation (Longcare Home Health), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries, but the company fraudulently billed the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided at all. From approximately January 2009 through November 2014, Medicare paid approximately $13.7 million for fraudulent claims submitted by Longcare Home Health, according to court documents.
Lara admitted that he personally paid kickbacks and bribes to patient recruiters and to Medicare beneficiaries in exchange for referrals. He also admitted to paying kickbacks and bribes in doctors’ offices and clinics in exchange for fraudulent home health prescriptions for medically unnecessary therapy and services. These prescriptions and recruited patients were used to fraudulently bill the Medicare program for home health care services.
In addition to his sentence, Lara was ordered to pay $13,771,528.94 in restitution and to forfeit $13,771,528.94, which represents the proceeds traceable to his criminal conduct at Longcare Home Health. Lara was sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. The case was prosecuted by Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Fairfield Ohio Car Dealership Indicted on Money Laundering and Currency Transaction Report ChargesRead the Press Release
CINCINNATI – A federal grand jury has charged Bryan Barbarawi, 35, of West Chester, Ohio with committing money laundering and with filing a false currency transaction report in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, announced the indictment that was unsealed on May 8, 2015 following the arrest of Barbarawi on May 7, 2015.
The indictment alleges that since February 2011 Barbarawi owned and operated a car dealership in Fairfield, Ohio under the names Nationwide Credit Solutions, LLC d/b/a Auto Max, Extreme Imports and Falcon Auto Sales, Inc.
Upon receiving more than $10,000 in cash in a trade or business, the trade or business is required to file a currency transaction report, specifically a Form 8300, with the Internal Revenue Service (IRS) or the Financial Crimes Enforcement Network (FINCEN) by the 15th day after the date the cash was received.
It has been alleged that in November 2014 Barbarawi committed money laundering by concealing the source and ownership of the proceeds from narcotics trafficking, as represented to Barbarawi by an undercover law enforcement officer, while conducting a financial transaction.
Also, in November 2014, it has been alleged that Barbarawi received approximately $21,533.50 in cash from two related transactions in connection with the sale of a vehicle and Barbarawi filed, and caused the employees of his car dealership to file, a false currency transaction report, Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Barbarawi falsely reported, and caused his employees to falsely report, the purchaser of the vehicle and the source of the funds used to purchase the vehicle.
Money laundering carries a maximum sentence of 20 years imprisonment and failing to file a currency transaction report carries a maximum sentence of five years imprisonment.
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed to enforcing these laws and following the money, wherever it leads.”
Barbarawi was released on bond following his arraignment before U.S. Magistrate Judge Stephanie K. Bowman.
U.S. Attorney Stewart commended the investigation of this case by the DEA and IRS, and Assistant United States Attorneys Jessica W. Knight and Karl Kadon, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Operator of Stroudsburg Business Charged Federally with Conspiring to Unlawfully Structure Financial TransactionsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Criminal Information was filed today in U.S. District Court in Scranton, charging Mirela Desouza, age 45, of Bangor, Northampton County, Pennsylvania, with conspiring to violate federal currency transaction requirements for the purpose of sending the proceeds of illegal activities out of the United States.
According to United States Attorney Peter Smith, Desouza allegedly conspired with others from January 2008 through December 2011 to use a Stroudsburg-based money transmitter service operated under the name of Tropic Express, Inc., to send money electronically to the Dominican Republic in varying amounts and using names of “nominee” senders and receivers of the funds, to fraudulently evade federal record keeping and reporting requirements.
The government charges include a claim of forfeiture of property involved in the offense including a bank account at M&T Bank in the name of Tropical Express, Inc. and a $25,000 money judgment.
The charges stem from an investigation by the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations.
The government also filed a plea agreement with Desouza, which is subject to the approval of the court.
According to the United States Attorney’s Office, the alleged crime of structuring consists of conducting transactions in currency for the purpose of evading federal reporting requirements. Banking institutions are required to file currency transaction reports (CTRs) with the Internal Revenue Service for each deposit, withdraw and/or exchange of currency, or a payment that involves currency of over specified amounts, in this case $3,000. The law also prohibits evading or attempting to evade record keeping requirements.
The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a $ 250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Officer and Co-Defendant Arrested in Conspiracy to Traffic CocaineRead the Press Release
McALLEN, Texas – A federal grand jury has returned a two-count indictment against a Rio Grande City Police Department investigator and a second defendant in a conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. The investigator, Noel Pena, 29, of Rio Grande City, and Hector Salinas-Hinojosa, 21, of Roma, are charged with conspiracy to possess with intent to distribute as well as possession with intent to distribute cocaine.
The indictment is the result of an investigation that began last year and resulted in a sting operation that occurred last month. Salinas-Hinojosa was arrested April 17, 2015, upon the filing of a criminal complaint. Pena was taken into custody the following morning.
The criminal complaint alleged Pena and Salinas-Hinojosa conspired to provide a ‘fake’ police report to an undercover officer who was acting as a cocaine trafficker. The undercover “cocaine trafficker” claimed to need assistance in stealing the majority of a 10-kilogram cocaine load he was holding for the drug cartels. On April 9, 2015, Salinas-Hinojosa and Pena met with the undercover officer and agreed to provide the ‘fake’ police report to make it appear that 10 kilograms of cocaine had been seized by law enforcement, according to the charges. In exchange they were allegedly supposed to be paid $10,000. The complaint alleged that at the time of the meeting, the undercover officer provided $5,000 as a down payment for the report.
The scheme alleged in the complaint involved Pena, as an investigator assigned to the Starr County High Intensity Drug Trafficking Area Task Force, being tipped off to the location of the cocaine. He would then stage a law enforcement operation.
On April 11, 2015, two kilograms of cocaine was left at a stash house location in Garceno. After being ‘tipped’ off the location, Pena allegedly proceeded to the residence and ‘found’ the cocaine and then obtained a search warrant to seize it. Subsequently, on April 17, 2015, Salinas-Hinojosa provided the ‘fake report’ to the undercover officer and was paid the remaining $5,000.
All three counts carry a minimum of 10 years and up to life in federal prison as possible punishment, as well as a possible $10 million fine.
The charges are the result of investigation conducted by Homeland Security Investigations, Drug Enforcement Administration, Texas Department of Public Safety and FBI with assistance from the Texas Rangers and the Starr County District Attorney’s Office. Assistant U.S. Attorneys Juan F. Alanis and Ted Imperato are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.New Iberia man pleads guilty to role in methamphetamine distribution conspiracyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a New Iberia man pleaded guilty to his role in a methamphetamine distribution conspiracy in the New Iberia and Lafayette areas.
Corey F. Freyou, 37, of New Iberia, La., pleaded guilty before U.S. District Judge Richard T. Haik to conspiracy to distribute and possess with intent to distribute methamphetamine. According to the guilty plea, Freyou, along with codefendants Elliot Jolet, 35, and Anita Desormeaux, 43, both of New Iberia, conspired to distribute and possess with intent to distribute methamphetamine in the New Iberia and Lafayette areas from October 2013 until September of 2014. Jolet and Desormeaux purchased methamphetamine in Texas and transported it to the south central Louisiana area. Freyou traveled with Jolet, Desormeaux and others, purchased methamphetamine in Texas, stored methamphetamine in his home, and sold the methamphetamine. Freyou was supplied with half an ounce of methamphetamine per week and admitted responsibility for at least 500 grams during the conspiracy. Freyou also forfeited his F-250 truck, which was used in the conspiracy.
Freyou, Jolet and Desormeaux are three of 14 defendants charged in a 20-count indictment returned on November 12, 2014. The other defendants are: Gary Hunt, 59, of Spendora, Texas; Ko Chanhkongshinh, 38, of Youngsville, La.; Jenee Lynn Hargrave, 29, of Scott, La.; David Lowery, 33, of New Iberia; Everette Dupuis, 39, of New Iberia; Michael Guidry, 45, of Erath, La.; Tyrone Howard, 43, of Youngsville; Kevin Jefferson, 31, of New Iberia; Nared Souphannavong, 29, of New Iberia; Brandi Boullion, 28, of New Iberia; and Dewey Migues, 36, of New Iberia. The investigation also resulted in the seizure of crystal methamphetamine, more than $5,000 in cash, a vehicle, and several firearms.
Freyou faces up to 20 years in prison, up to a $1 million fine, and at least three years supervised release. A sentencing date was not set.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation. The DEA, Iberia Parish Sheriff’s Office, Lafayette Parish Sheriff’s Office, Vermilion Parish Sheriff’s Office and the Lafayette Police Department investigated the case. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations, coordinating the necessary law enforcement entities and resources, and disrupting and dismantling of major drug trafficking organizations.
Assistant U.S. Attorneys Myers P. Namie, Daniel J. McCoy and Robert F. Moore are prosecuting the case.
Muskogee Man Pleads Guilty to Robbery ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MATTHEW EUGENE TRIPLETT, age 44, of Muskogee, Oklahoma, pled guilty to CONSPIRACY TO INTERFERE WITH COMMERCE BY ROBBERY, in violation of Title 18, United States Code, Section 1951.
The charge arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation Violent Crime Task Force.
The Indictment alleged that from on or about January 15, 2014, through on or about January 22, 2014, in the Eastern District of Oklahoma, the defendant, MATTHEW EUGENE TRIPLETT, conspired with others, known and unknown to the grand jury, to commit robbery, which unlawfully obstructed, delayed, and affected commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service.
The statutory range of punishment is not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace represented the United States.
Multi-Agency Law Enforcement Operation Tackles Violent Crime, Drug Trafficking, Firearms Offenses, and Gang Activity in Broward CountyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), John Brooks, Chief, Sunrise Police Department (SPD), Amos Rojas Jr., United States Marshal, United States Marshals Service Fugitive Task Force, and J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), announce the filing of federal charges against 29 defendants in 5 separate cases for their alleged participation in criminal conduct, including a violent racketeering (RICO) conspiracy, armed Hobbs Act robberies, a narcotics conspiracy, drug trafficking, and firearms violations by convicted felons.
The referenced indictments are, in large part, the result of initiatives which stem from the Violence Reduction Partnership, launched by the U.S. Attorney’s Office in 2011. Through these Partnerships, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties. The Partnerships strive to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations.
The members of the Violence Reduction Partnership, and participating agencies, include the United States Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Drug Enforcement Administration (DEA), Miami Field Office, Broward Sheriff’s Office (BSO), Sunrise Police Department (SPD), United States Marshals Service Fugitive Task Force, Miami-Dade Police Department (MDPD), Federal Bureau of Investigation (FBI), Miami Field Office, Hollywood Police Department, Homestead Police Department, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), North Miami Beach Police Department (NMBPD), Miami-Dade Police Department, City of Miami Police Department, Palm Beach County Sherriff’s Office, Broward County Office of the State Attorney, and Miami-Dade Office of the State Attorney.
United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack violent crime, drug trafficking, and gang activity is of paramount importance. Today’s charges demonstrate that we are dedicated to improving public safety and the quality of life for law-abiding residents by protecting neighborhoods, adopting proactive law enforcement initiatives, and prosecuting repeat offenders, firearms violators and criminal networks. We will continue to prosecute individuals whose violent criminal conduct infects our communities.”
“Today’s arrest demonstrates law enforcement’s relentless effort to reduce violent crime and rid our streets of criminal gangs,” said ATF Special Agent in Charge Hugo J. Barrera. “In conjunction with our Federal, State and Local partners, we continue to work together to end the gang violence that erodes the quality of life in our neighborhoods. The arrests today sends a clear message that our community will not tolerate the heinous activity perpetrated by violent felons and evidences our commitment to work together to dismantle violent street gangs.”
DEA Special Agent in Charge A.D. Wright stated, “The DEA is proud to work with our law enforcement partners to target these violent offenders. Taking these gang members off the street makes Florida a safer place.”
U.S. Marshal Amos Rojas, Jr. stated, “This operation demonstrates the willingness of Federal, State and local law enforcement agencies to work together to combat violent criminal gangs in our communities”
“The Miami-Dade Police Department remains committed to work with fellow law enforcement agencies in arresting those who harm our communities,” said MDPD Director J.D. Patterson.
Today, U.S. Attorney Ferrer, joined by members of federal and local law enforcement agencies announce the most recent results of their investigative efforts. The cases announced today include:
1. United States v. Juan Alvarez, a/k/a “King Juanma,” et. al., Case No. 15-60094-CR-Cohn
The indictment charges 23 members and associates of the Latin Kings, an organized criminal street gang operating in the Southern District of Florida, for their alleged participation in a violent racketeering conspiracy, in violation of Title 18, United States Code, Section 1962(d).
Charged in the twenty (20) count indictment are Juan Alvarez, a/k/a “King Juanma,” 30, of Miami, Arturo Andrade, a/k/a “King Tu,” 25, of Miami, Sean Buendia, a/k/a “King Chill,” 32, of Davie, Lazaro Castellon, a/k/a “King Speedy,” a/k/a “Laz,” 36, of Hialeah, Domenic Enrique, a/k/a “King Bolo,” 28, of Pembroke Pines, Tony Estevez, a/k/a “King Kilo,” 29, of Miami, Samuel German, a/k/a “King Traffic,” 31, of Hollywood, Alberto Hernandez, Jr., a/k/a “King Gordo,” 20, of Miami, Christopher Isabel, a/k/a “King Nano,” 33, of Plantation, Barbara Lee, a/k/a “Queen Flaka,” 49, of Fort Lauderdale, Andres Lugo, a/k/a “King Ghost,” 33, of Plantation, Danielle Lucatorto, a/k/a “Cookie,” 29, of Margate, John Martins, a/k/a “King Slowdown,” 28, of Lake Worth, Alain Medero, a/k/a “King C-Low,” 31, of Miami, Fernando Moreno, a/k/a “King Boom,” 32, of West Palm Beach, Jorge Perez-Hernandez, 44, of Tampa, Luis Rivera, a/k/a “King Tato,” 32, of Miami Beach, Giovanny Rocha-Collado, a/k/a “King Joker,” 35, of Miami, Barbaro Sanchez, a/k/a “King Tata,” 28, of Miami, Bobbie Tejada, a/k/a “King Riko,”32, of Fort Lauderdale, Jerry Vazquez, 35, of West Palm Beach, Giovanny Viera, a/k/a “King Hollywood,” 35, of Miami, and Juan Marcos Vega, 22, of Homestead.
The indictment alleges that the Latin Kings are one of the largest and most well organized gangs operating in the United States. Chapters of the Latin Kings operate in at least 39 states, including Florida. The gang's primary source of income is generated through offenses related to the distribution of narcotics, assault, robbery, burglary, and identity theft. Members of the gang commit these criminal acts with the intent to benefit, promote, and further the interest of their organization, and to increase their own standing or position within the Latin Kings organization. The Latin Kings adhere to a local, regional, state, and a national hierarchical system. The local chapter reports to the regional officers, the regional officers report to the state officers, and the state officers report to the national officers. State and local chapters, often also referred to as tribes, are comprised of a five person leadership structure, intended to represent the five points of a king’s crown. These positions are identified by the titles of Inca or first crown, Cacique or second crown, Enforcer or third crown, Treasurer or fourth crown, and Secretary or fifth crown. Together, the crowns ensure the Latin Kings members follow the rules and regulations set forth in the Latin King Manifesto, referred to as the “KMC.” Members are required to pay dues, the source of which is usually generated through criminal activity, attend regular meetings and adhere to the gang’s established policies. Failure to adhere to the rules can result in disciplinary action. The Latin Kings colors are Black and Gold. Gang markings consist of a 5 or 3-point "sacred crown," the letters LK (Latin Kings), ALK (Almighty Latin Kings), ALKN (Almighty Latin King Nation), ALKQN (Almighty Latin King Queen Nation), and drawings of the Lion. Once accepted into the organization, members choose a “King” name by which they become known.
At various times, defendants Isabel, Tejada, Rivera, Alvarez, Castellon, Viera, Estevez, German, Medero, Lugo, Rocha-Collado, and Moreno held leadership positions within the state and/or local chapters of the Latin Kings. In their respective positions, these defendants conducted meetings, collected dues, and maintained discipline among members of the Latin Kings.
The twenty-three charged defendants were allegedly employed by and associated with the Latin Kings, a criminal enterprise that affected interstate and foreign commerce, and conspired to violate the federal RICO statute through a pattern of racketeering activity that consisted of multiple acts and threats involving murder, robbery, kidnaping, narcotics trafficking, witness tampering and retaliation, and fraud.
In addition to the racketeering conspiracy charge, many of the defendants were also indicted for their alleged participation in other criminal activity.
Defendants Tejada, Lugo, and Lucatorto are charged with committing a Hobbs Act robbery in Broward County, on or about June 11 and June 12, 2014, in violation of Title 18, United States Code, Sections 1951(a) and 2. The indictment alleges that the defendants attempted to forcibly rob an individual of controlled substances (narcotics). Tejada and Lugo were also charged with possessing a firearm during the commission of the armed robbery, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2.
Defendants Alvarez and Vega were also charged with committing a Hobbs Act Robbery in Miami-Dade County, on or about September 28, 2014. The indictment alleges that the defendants used a firearm to forcibly rob an individual of narcotics and personal items.
Defendant Buenida is also charged with committing a Hobbs Act Robbery in Broward County, on or about June 6, 2014. The indictment alleges that the defendant forcibly robbed an individual of narcotics.
Defendants Rocha-Collado, Medrero, Estevez, Tejada, German and Lee were also charged, with distributing a controlled substance (either cocaine or molly) in Miami-Dade and Broward Counties, on dates on or about and between December 30, 2013 and October 30, 2014, in violation of Title 21, United States Code, Section 841(a)(1).
Isabel, Moreno, Perez-Hernandez, and Vazquez were also charged with conspiring to distribute a controlled substance (heroin), in violation of Title 21, United States Code, Section 846.
Tejada, Alvarez, Viera, Enrique and Castellon were each also charged with being felons in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
During the course of the investigation, law enforcement seized 31 firearms and recovered a variety of narcotics, including cocaine, crack, heroin, and molly.
This case is being prosecuted by Assistant U.S. Attorneys Julia Vaglienti and Lawrence LaVecchio.
2. United States v. Jonathan Gonzalez, III, a/k/a “King Charlie,” Case. No. 15-60059-CR-Cohn
On March 26, 2015, Jonathan Gonzalez III, a/k/a “King Charlie,” 32, Plantation, was charged in a single count indictment for being a felon in possession of a firearm.
According to the indictment, on February 21, 2014 in Broward County, convicted felon Gonzalez was in possession of a .38 caliber revolver that affected interstate and foreign commerce.
This case is being prosecuted by Assistant U.S. Attorney Mark Dispoto.
3. United States v. Jonathan Jose Castro-Guerra and Chavon Hernandez, Case No. 15-20098-CR-Moore
On February 26, 2015, Jonathan Jose Castro-Guerra, 29, of Hollywood, and Chavon Hernandez, 33, of Hollywood, were charged in a single count indictment for being felons in possession of a firearm and ammunition.
According to the indictment, on or about September 18, 2014 in Miami-Dade County, convicted felons Castro-Guerra and Hernandez possessed a 9mm semi-automatic pistol and three rounds of 9mm ammunition that affected interstate and foreign commerce.
This case is being prosecuted by Assistant U.S. Attorney Bruce Brown.
4. United States v. Victor Martinez-Otero, Jr., a/k/a “King Bless” and Luis Almodovar-Alvarez, a/k/a “King Bolillo,” Case. No. 15-60092-CR-Dimitrouleas
On May 5, 2015, Victor Martinez-Otero, a/k/a “King Bless,” 25, and Luis Almodovar-Alvarez, a/k/a “King Boliollo,” 20, both of Kissimmee, were charged in a two count indictment for unlawfully possessing firearms and ammunition.
According to this indictment, on or about August 7, 2014 in Broward County, Martinez-Otero and Almodovar-Alvarez were unlawfully receiving a 9mm semi-automatic handgun and eight rounds of 9mm ammunition that affected interstate commerce, while under a separate indictment. At the time of possession, Martinez-Otero was allegedly a convicted felon.
This case is being prosecuted by Assistant U.S. Attorney William Shockley.
5. United States v. Oscar Valdivia, a/k/a “King Oscar,” a/k/a “King Two Times,” Case. No. 15-60090-CR- Cohn
On May 5, 2015, Oscar Valdivia, a/k/a “King Oscar,” a/k/a “King Two Times,” 21, of Sunrise, was charged in a six count indictment for illegally possessing and selling firearms and ammunition.
According to this indictment, on four separate dates in Broward County, Valdivia did unlawfully receive firearms and ammunition that affected interested commerce, while under a separate indictment. This indictment alleges that he received: two .40 caliber semiautomatic handguns and a .357 revolver on February 25, 2014; a .22 caliber rifle on March 18, 2014; a 12 gauge pump-action shotgun on April 15, 2014; a 5.56 mm semiautomatic rifle, a 9mm semi-automatic handgun, and 1,000 rounds of ammunition on May 3, 2104; a semiautomatic receiver on May 8, 2014. The indictment further alleges that on June 20, 2014, Valdivia sold a .22 caliber handgun and ammunition to a person he believed was a convicted felon.
This case is being prosecuted by Assistant U.S. Attorney William Shockley.
If convicted, the defendants face the following possible statutory sentences for their charged offenses: up to twenty years in prison for the RICO conspiracy, up to twenty years in prison for the Hobbs Act robbery; a term of imprisonment not less than seven years for possession of a firearm in furtherance of a crime of violence (if the firearm is brandished, otherwise not less than five years) consecutive to other terms of imprisonment; up to ten years in prison for possession of a firearm or ammunition by a convicted felon; up to life in prison for conspiring to possess controlled substances with the intent to distribute; and up to forty years in prison for possession of controlled substances with the intent to distribute.
Mr. Ferrer thanked the law enforcement agencies, community leaders, and social service providers involved in the Violence Reduction Partnership, the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force and the Organized Crime Drug Enforcement Task Force (OCDETF). Mr. Ferrer also commended the investigative efforts of ATF, DEA, BSO, Sunrise Police Department, United States Marshals Service Fugitive Task Force, FBI, Hollywood Police Department, Homestead Police Department, ICE-HSI, North Miami Beach Police Department, Miami-Dade Police Department, City of Miami Police Department, Palm Beach County Sherriff’s Office, Broward County Office of the State Attorney, and Miami-Dade Office of the State Attorney.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mini Market Store Owner Sentenced to Federal Prison for Selling Synthetic Marijuana and Bath SaltsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Yvette Kane sentenced Kulwinder Singh Grewal, age 42, of Myerstown, today to 1 ½ years’ imprisonment for selling bath salts and synthetic marijuana.
Grewal pled guilty in February 2014 to the sale of misbranded drugs under names such as Eight Ballz, Fusion Herbal Potpourri, Joy, Crunky Monkey and Purple Haze.
According to United States Attorney Peter Smith, Grewal operated a mini-mart and sold these items from his store and other stores he helped to supply. The substances were determined to be either controlled substances or analogues of controlled substances. The substances were packaged for retail sale and contain warning labels that they were not for human consumption.
Grewal admitted that he was aware that these products were being ingested by customers to get high. During a search of Grewal’s home in April 2012, agents recovered a white plastic bag in a tool box in the garage that contained packages marked “Eight Balls.” The DEA lab determined that the substances were α-PVP, Pentylone, 4-MEC, and α-PBP, all cathinones and analogues of Methcathinone, a controlled substance.
A substance is an analogue if it is substantially similar to the chemical structure of a schedule I or II substance which has a stimulant, depressant, or hallucinogenic effect on the central nervous system similar to or greater than that of the schedule I or II controlled substance. These substances (bath salts and synthetic marijuana) mimicked marijuana, a Schedule I controlled substance or methcathinone, a Schedule II controlled substance.
Proceeds from the sales of these products were deposited by co-defendant, Amerjit Singh Grewal, into business accounts. Funds from these accounts were withdrawn and used to purchase synthetic marijuana and bath salts products from vendors such as DZE, located in Houston, Texas. Grewal was ordered to forfeit the funds seized from these accounts which totaled almost $500,000. Co-defendant Amerjit Singh Grewal was previously sentenced by Judge Kane to 33 months imprisonment.
“The public is put at risk by the sale and distribution of potentially dangerous drugs that are disguised as innocuous consumer products,” said Special Agent in Charge Antoinette V. Henry of the FDA Office of Criminal Investigations’ Metro-Washington Field Office. "We will continue to work to prevent such drugs from reaching the market and to bring to justice those who endanger the public health by circumventing FDA’s regulatory process."
The case was investigated by the Drug Enforcement Administration, the Food and Drug Administration Office of Criminal Investigations, the United States Attorney=s Office for the Eastern District of Pennsylvania, the Pennsylvania State Police, the Dauphin and Cumberland County Drug Task Forces, Homeland Securities Investigations, the Lancaster and Lebanon County Drug Task Forces, the Pennsylvania Office of Attorney General, the Lewistown Police Department and Drug Task Force, Coal Township, Elizabethtown and Ephrata Police Departments.
Prosecution was handled by Assistant United States Attorney William A. Behe.
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Miami-Dade County Resident Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
A Brownsville resident was sentenced to 63 months for being a felon in possession of a firearm yesterday.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Contrell Leo Floyd, a/k/a “Kevin Wells,” 34, was convicted in a two-day trial before U.S. District Judge Federico A. Moreno for being a felon in possession of a firearm.
On October 20, 2014, in the early afternoon, two Robbery Intervention Detail MDPD Detectives in an unmarked vehicle saw Floyd in front of Brownsville middle school and began to approach Floyd to ask him questions. Before they could speak with him, Floyd quickly stopped, turned toward the car, and pulled up his shirt to flash a handgun that was tucked in his waistband. Immediately upon seeing the gun, one detective drew his weapon and announced “police!” Floyd fled and threw the firearm into a public park in front of Brownsville middle school. The police apprehended Floyd after a short pursuit and recovered the loaded handgun.
Mr. Ferrer commended the investigative efforts of ATF and MDPD. This case was prosecuted by Assistant U.S. Attorneys Timothy Abraham and Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Meth Conspiracy Lands Three in Federal PrisonRead the Press Release
VICTORIA, Texas - The final defendant in a three-defendant methamphetamine conspiracy has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson.
Michael Gregory Oertli, 40, of Brookshire, pleaded guilty in November 2014 to one count of conspiracy to possess with intent to distribute methamphetamine. Today, Senior U.S. District Judge John D. Rainey sentenced Oertli to 70 months imprisonment to be followed by four years of supervised release.
Howard Gene Hicks, 46, and Kathrine Dovey Sexton, 38, both of Port Lavaca, also pleaded guilty in November 2014 to the same charge. Judge Rainey ordered Sexton to serve 63 months imprisonment, while Hicks will serve a 60-month-term. Both sentences will also be followed by four years of supervised release.
The defendants would travel to Sexton’s source of supply in Houston and then distribute the drugs in the Victoria/Port Lavaca area. Hicks and Oertli were charged following a traffic stop in which they were found in possession of methamphetamine. The investigation later led to the identification of Sexton and the discovery that the group would travel to Houston several times a week and return with approximately two ounces of methamphetamine on each occasion.
All have been in custody since their arrests, where they remain pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The charges stem from an investigation by Homeland Security Investigations, Victoria Police Department and Texas Department of Public Safety.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
Maryland Man Sentenced to 13 Years in Prison for Operating Ponzi Scheme That Cost Investors over $28 Million in LossesRead the Press Release
Garfield M. Taylor, 56, of Rockville, Maryland, was sentenced today to 13 years in prison and ordered to pay over $28.6 million in restitution for operating a Ponzi scheme that resulted in investors losing money they invested with Taylor and companies he controlled.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Acting Commissioner Chester A. McPherson of the District of Columbia’s Department of Insurance, Securities and Banking.
Taylor pleaded guilty in March 2014 in the U.S. District Court of the District of Columbia to securities fraud. He was sentenced by Chief District Judge Richard W. Roberts of the District of Columbia. Upon completion of his prison term, Taylor will be placed on three years of supervised release. In addition to the $28.6 million order of restitution, the judge entered a forfeiture judgment in the same amount. Taylor was taken into custody after the sentencing.
In a parallel action, the U.S. Securities and Exchange Commission obtained a civil judgment against Taylor for his fraudulent conduct.
“Garfield Taylor masterminded a Ponzi scheme to bilk local investors out of over $28 million,” said Acting U.S. Attorney Cohen Jr. “When his scheme collapsed, his lies left the families and charities who believed his empty promises holding the bag. This 13-year prison sentence is a reflection of the seriousness of financial crimes and our dedication to vigorous prosecution of securities fraud.”
“Mr. Taylor now faces the consequences of his role in a $28 million fraud scheme that defrauded clients for his own personal gain,” said Assistant Director in Charge McCabe. “With our partners, the FBI remains committed to investigating those who hide behind deceptive financial fraud schemes.”
“Today’s sentencing demonstrates that defrauding investors in the District of Columbia carries significant consequences,” said Acting Commissioner McPherson. “Mr. Taylor deceived investors out of millions causing significant financial harm that justifies this sentence. Together with the U.S. Attorney’s Office, the FBI, the Securities and Exchange Commission and national and local law enforcement, my department will continue to protect investors from the illegal and deceptive practices Mr. Taylor used to defraud investors out of their hard earned money and savings.”
According to the government’s evidence, Taylor devised and employed a scheme from in or about September 2006 through in or about September 2010 in which he convinced investors to invest with him by promising them substantial returns on their investment, telling them that he used a sophisticated securities trading strategy that protected against loss and claiming that he had a proven track record of using this strategy effectively.
During the course of this scheme, however, Taylor never used the trading strategy that he told investors that he would use. With the investments he made during this period, Taylor either lost money or made minimal profits far below what was needed to pay the amounts he owed. The only way that Taylor was able to pay the substantial interest rates was to use portions of the principal invested by new investors to pay amounts that were owed to earlier investors.
In one example from the government’s evidence, Taylor, in April 2010, used approximately half of an investor’s $425,000 investment to pay interest and principal that was due to earlier investors, rather than using those funds to invest in securities, as he had promised to do. Taylor paid only a portion of the interest payments he was required to pay the investor, before telling the investor that, because of trading losses, he was unable to make any more interest payments or to return the investor’s principal.
At the time of the scheme’s collapse, Taylor owed investors over $28.6 million just to cover the principal he was contractually required to return to them.
In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe and Acting Commissioner McPherson commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia’s Department of Insurance, Securities and Banking. They also expressed appreciation to the U.S. Securities and Exchange Commission for its significant assistance. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office. The case was also investigated and prosecuted by Assistant U.S. Attorneys Matt Graves, Lionel André, Catherine K. Connelly, Della Sentilles and Zia Faruqui of the District of Columbia. Former Assistant U.S. Attorney Bridget Fitzpatrick of the District of Columbia also investigated the matter.
Maryland Man Sentenced to 13 Years in Prison for Operating Ponzi Scheme That Cost Investors over $28 MillionRead the Press Release
WASHINGTON - Garfield M. Taylor, 56, of Rockville, Md., was sentenced today to 13 years in prison and ordered to pay over $28.6 million in restitution for operating a Ponzi scheme that resulted in investors losing money they invested with Taylor and companies he controlled.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Chester A. McPherson, Acting Commissioner of the District of Columbia Department of Insurance, Securities, and Banking.
Taylor pled guilty in March 2014 in the U.S. District Court for the District of Columbia to securities fraud. He was sentenced by the Honorable Chief Judge Richard W. Roberts. Upon completion of his prison term, Taylor will be placed on three years of supervised release. In addition to the $28.6 million order of restitution, the judge entered an identical forfeiture judgment in the same amount. Taylor was taken into custody after the sentencing.
In a parallel action, the U.S. Securities and Exchange Commission obtained a civil judgment against Taylor for his fraudulent conduct.
“Garfield Taylor masterminded a Ponzi scheme to bilk local investors out of over $28 million,” said Acting U.S. Attorney Cohen. “When his scheme collapsed, his lies left the families and charities who believed his empty promises holding the bag. This 13-year prison sentence is a reflection of the seriousness of financial crimes and our dedication to vigorous prosecution of securities fraud.”
“Mr. Taylor now faces the consequences of his role in a $28 million fraud scheme that defrauded clients for his own personal gain,” said Assistant Director in Charge McCabe. “With our partners, the FBI remains committed to investigating those who hide behind deceptive financial fraud schemes.”
“Today’s sentencing demonstrates that defrauding investors in the District of Columbia carries significant consequences,” said Acting Commissioner McPherson, of the D.C. Department of Insurance, Securities and Banking. “Mr. Taylor deceived investors out of millions causing significant financial harm that justifies this sentence. Together with the U.S. Attorney’s Office, the FBI, the Securities and Exchange Commission and national and local law enforcement, my department will continue to protect investors from the illegal and deceptive practices Mr. Taylor used to defraud investors out of their hard earned money and savings.”
According to the government’s evidence, Taylor devised and employed a scheme from in or about September 2006 through in or about September 2010 in which he convinced investors to invest with him by promising them substantial returns on their investment, telling them that he used a sophisticated securities trading strategy that protected against loss, and claiming that he had a proven track record of using this strategy effectively.
During the course of this scheme, however, Taylor never used the trading strategy that he told investors that he would use. With the investments he made during this period, Taylor either lost money or made minimal profits far below what was needed to pay the amounts he owed. The only way that Taylor was able to pay the substantial interest rates was to use portions of the principal invested by new investors to pay amounts that were owed to earlier investors.
In one example from the government’s evidence, Taylor, in April 2010, used approximately half of an investor’s $425,000 investment to pay interest and principal that was due to earlier investors, rather than using those funds to invest in securities, as he had promised to do. Taylor paid only a portion of the interest payments he was required to pay the investor, before telling the investor that, because of trading losses, he was unable to make any more interest payments or to return the investor’s principal.
At the time of the scheme’s collapse, Taylor owed investors over $28.6 million just to cover the principal he was contractually required to return to them.
In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe, and Acting Commissioner McPherson commended those who investigated the case from the FBI’s Washington Field Office and the D.C. Department of Insurance, Securities and Banking. They also expressed appreciation to the U.S. Securities and Exchange Commission for its significant assistance. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, John Lowell and Ida Anbarian; former Litigation Technology Specialist Joseph Calvarese; Assistant U.S. Attorneys Matt Graves, Lionel André, Catherine K. Connelly, Della Sentilles, and Zia Faruqui, who investigated and prosecuted the matter; and former Assistant U.S. Attorney Bridget Fitzpatrick, who investigated the matter.
Lynn Michael Lavictor of Sault Ste. Marie Sentenced to 355 Months for Sexual AssaultRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Lynn Michael LaVictor, 44, of Sault Ste. Marie, Michigan, was sentenced by U.S. District Court Judge R. Allan Edgar to 355 months imprisonment for sexually assaulting his then- girlfriend in Sault Ste. Marie, attempting to tamper with a witness and contempt of court. The sentences will run concurrently. Judge Edgar also ordered LaVictor to have no contact with the victim in the case. Judge Edgar commented during the sentencing that there was a "manifest need to provide protection for the public and those who have been abused by [the defendant] in the past."
The assault took place last July. The victim’s injuries from the assault required her to be transported by ambulance to the hospital, where she underwent surgery later in the day. Nevertheless, LaVictor repeatedly contacted the victim and attempted to influence her testimony, even after his arrest and the placement of a no-contact order. A federal jury convicted LaVictor in December, following a four day trial.
"Fighting the victimization of women in Indian country is a main priority in the Western District of Michigan," stated U.S. Attorney Patrick A. Miles, Jr., "and those who engage in this behavior will be prosecuted to the fullest extent of the law."
The Sault Ste. Marie Tribal Police and the FBI investigated the case. Assistant U.S. Attorneys Jeff J. Davis and Hannah N. Bobee prosecuted the case.
Luzerne County Man Charged with Heroin and Cocaine OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury sitting in Scranton, Pennsylvania has returned an indictment charging Roberto Sanchez, age 37, of Hazleton, Pennsylvania, with conspiracy to distribute more than a kilogram of heroin and more than 500 grams of cocaine. The grand jury also charged Sanchez with counts relating to the possession with the intent to distribute more than 100 grams of heroin, and an additional count charging that he possessed with the intent to distribute an unspecified quantity of cocaine. The indictment further seeks forfeiture of $54,283.00 in US Currency.
According to U.S. Attorney Peter Smith, the charges in the indictment stem from Robert Sanchez’s arrest by United States Marshals on a warrant issued by New York authorities. In the process of the arrest, the Marshals determined that there were drugs on the premises and contacted agents with the Drug Enforcement Administration to assist. Ultimately, Sanchez was found to have in his possession within the residence more than 300 grams of heroin, more than 100 grams of cocaine, and $54,283.00 in United States currency.
The maximum penalty under the federal statute for conspiracy to distribute more than 1 kilogram of heroin is life imprisonment. Sanchez also faces a term of supervised release following imprisonment and a fine, if convicted. Sanchez is presently in custody at the Luzerne County Correctional Facility.
Prosecution of the case is assigned to Assistant U.S. Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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La Vergne Woman Pleads Guilty to Counterfeit Check SchemeRead the Press Release
NASHVILLE, Tenn. – May 12, 2015 - Christine Smith, 49, of La Vergne, Tennessee, pleaded guilty yesterday to a felony charge of possessing counterfeit securities, announced David Rivera, United States Attorney for the Middle District of Tennessee.
During a plea hearing before Judge Aleta A. Trauger, Smith admitted taking part in a counterfeiting scheme in which she manufactured a variety of counterfeit checks, using fake accounts, and then used the checks to purchase stamps at various U.S. Post Office locations. Smith then sold the stamps to another individual and on eBay at a reduced rate.
On October 2, 2013, U.S. Postal Inspectors conducted a search of Smith’s residence and found a counterfeit check. Smith admitted that she knew the check was counterfeit and that she had intended to use it to purchase more stamps from the U.S. Postal Service. Smith also acknowledged that she had negotiated approximately 50 counterfeit checks at various Post Office locations, which totaled more than $5,000.
Smith faces up to 10 years in prison and a fine of up to $250,000 when she is sentenced by Judge Trauger on August 17, 2015.
The case was investigated by the U.S. Postal Inspection Service and the U.S. Secret Service. The case has been prosecuted by Assistant U.S. Attorneys William F. Abely and Scarlett S. Nokes.
Justice Department Signs Agreements with Chaves County, New Mexico, to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department announced today an agreement with Chaves County, New Mexico, to improve access to civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA). This agreement is the fifth so far this year, as the department recognizes the 25th anniversary of the ADA, which the Civil Rights Division plays a critical role in enforcing.
As part of PCA, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify changes needed to comply with the ADA. The agreements detail the remedial actions a city or county must take to improve access. The department has a PCA agreement in every state, and this is the first agreement in southern New Mexico.
Under the agreement, the county will remove barriers to accessibility at county facilities, including the county courthouse, administration building, health centers, medical complexes, detention center and juvenile detention center. The county will make physical modifications to those facilities so that parking, routes into buildings, entrances, service areas and counters, restrooms, elevators and drinking fountains are accessible to people with disabilities. The county will also survey other facilities and programs and make modifications wherever necessary to achieve full compliance with ADA requirements. In addition to physical accessibility, the county will administer a grievance procedure for resolving ADA complaints, provide effective communication for county programs and services including law enforcement, provide improved access to polling places and the voting process and ensure that the county’s official website and other web-based services are accessible to people with disabilities.
“Providing access to local government programs, services, and activities is critical to ensure equal opportunities for individuals with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “I commend county officials for their cooperation in working with us and for making this commitment to provide equal access to their residents and visitors with disabilities.”
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The department will actively monitor compliance with the agreement, which will remain in effect for three years.
For more information about the ADA, today’s agreement, and the PCA initiative, individuals can access the ADA web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Secures Statewide Training for Law Enforcement on Interacting with Persons with Intellectual or Developmental DisabilitiesRead the Press Release
Today, the Justice Department announced that, under a settlement agreement with the United States, the state of Tennessee is launching a training program available to all law enforcement personnel in Tennessee on effective interactions with people who have intellectual or developmental disabilities. The training, developed by Tennessee’s Department of Intellectual and Developmental Disabilities (DIDD), helps law enforcement officers communicate effectively with people who have disabilities and their families in order to improve the safety and effectiveness of those interactions and to enhance community policing efforts. DIDD has posted the training materials on its website and will present the materials at a statewide conference of law enforcement training officers later this month.
DIDD developed the training as part of a court-approved exit plan that resolves long running litigation between the United States and Tennessee concerning care for people with intellectual and developmental disabilities. The lawsuit will continue during DIDD’s performance of other exit plan provisions.
“We applaud the state’s efforts to ensure that law enforcement officers engage safely and effectively with people who have intellectual or developmental disabilities and their families,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “This initiative is good for those people, for officers who serve in communities across the state, and for effective law enforcement. Tennessee joins a new national trend in recognizing and preparing for the intersection between law enforcement and people with disabilities. We also recognize and appreciate the continued collaboration of important stakeholders in reaching agreement on this crucial training, including DIDD, People First of Tennessee and the Parent Guardian Associations of Clover Bottom and Greene Valley Developmental Centers.”
The United States brought suit against the state of Tennessee in 1996, concerning conditions of care and the right to care in integrated settings for residents of Clover Bottom Developmental Center, Greene Valley Developmental Center and Nat T. Winston Center. The state and the United States, along with two interveners, settled the case in 1996 through an agreement that called for both improved conditions within the centers and the integration of residents into community settings. Shortly after the initiation of the suit, the state closed Nat T. Winston Center. The state is now closing Clover Bottom Center and Greene Valley Developmental Centers. In 2015, the court approved an exit plan designed to resolve the litigation by bringing to fruition planned community improvements in respite care, individual support planning and other areas. The exit plan also required that the state develop the law enforcement training discussed above.
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Moves to Intervene in Disability Discrimination Lawsuit Alleging that Miami University Uses Inaccessible Educational Technologies and Course MaterialsRead the Press Release
The Justice Department announced today that it has moved to intervene in Aleeha Dudley v. Miami University, et al., 14-cv-038 (S.D. Ohio), a private lawsuit alleging disability discrimination by Miami University in Oxford, Ohio. In the United States’ motion to intervene and complaint, the United States alleges that Miami University has violated Title II of the Americans with Disabilities Act (ADA) by requiring current and former students with disabilities to use inaccessible websites and learning management system software, and by providing these students with inaccessible course materials. The motion was filed in the U.S. District Court of the Southern District of Ohio.
As alleged in today’s filings, Miami University uses technologies that are inaccessible to current and former students who have vision, hearing or learning disabilities. Miami University has failed to ensure that individuals with disabilities can interact with its websites and learning management systems and access course assignments, textbooks and graphical materials on an equal basis with students without disabilities. Miami’s failures have deprived persons with disabilities of a full and equal opportunity to benefit from Miami University’s educational opportunities.
Many students with disabilities, including those who have vision, hearing or learning disabilities, require assistive technologies to use computers and interact with electronic content. Examples of assistive technologies include screen reader software, refreshable Braille displays, audio description, captioning and keyboard navigation. Screen reader software audibly reads aloud information that is otherwise presented visually on a computer screen; refreshable Braille displays convert digital text into Braille; captioning translates video narration and sound into text; and keyboard navigation allows individuals with visual or manual dexterity disabilities to access computer content using a keyboard rather than a mouse.
The complaint seeks a judgment from the court requiring Miami University to provide accessible materials to ensure that individuals with disabilities can equally participate in and benefit from Miami University’s educational opportunities, and to compensate aggrieved individuals.
“Education is said to be the great equalizer of American society, and educational technologies hold great promise to make this a reality,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “However, students with disabilities continue to encounter an impenetrable glass ceiling of opportunity when schools fail to comply with the ADA.”
Title II of the ADA prohibits discrimination on the basis of disability by state and local government entities, including colleges and universities. Title III of the ADA likewise prohibits disability discrimination by private educational institutions.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Files Federal Lawsuit Against Park City Business for Violating the Employment Rights of Utah Naval Reserve MemberRead the Press Release
The Justice Department’s Civil Rights Division and U.S Attorney Carlie Christensen of the District of Utah announced today the filing of a complaint in U.S. District Court in Salt Lake City against Veteran’s Trading Company (VTC), a business with headquarters in Park City, Utah. The complaint alleges the business violated the employment rights of Naval Reserve Captain Paul M. Costello under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Costello is a Navy veteran with a disability who has served his country as an F-18 fighter pilot. Since 1997, he has served as a member of the United States Naval Reserve.
According to the complaint, filed by the United States on Costello’s behalf, Costello’s military service was a motivating factor in VTC’s decisions to deny his request for re-employment and, ultimately, to terminate his employment. The United States claims that both actions by VTC violated Costello’s USERRA rights.
The complaint further alleges that in July 2013, VTC fired Costello from his job as company President due to his military service and subsequently denied Costello’s application for reemployment following his active military duty in September 2013. On April 30, 2015, VTC pre-emptively filed its own suit against Costello in Utah state court claiming that he was inappropriately remunerated for his service to the company while he was on military leave; despite the fact that while he was on military he took personal leave in order to preside over company meetings. In addition to filing its federal complaint, the United States removed the employer’s action from state court to federal court.
“The brave men and women who serve in our Armed Forces should never have to fear losing their job while they’re deployed overseas,” said Acting Associate Attorney General Stuart F. Delery. “That’s why the Department of Justice is committed to protecting the employment rights of service members and we will continue to devote time and resources to hold bad actors accountable.”
“Captain Costello served our nation honorably, and USERRA guarantees his right to re-employment upon his return from service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”
“Members of our National Guard and Reserves make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Christensen. “When our service members are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. We are filing suit today, on behalf of Captain Costello, a member of the U.S. Naval Reserve, to ensure that he does not lose his rights while he was protecting ours.”
USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and proved that service members cannot be discriminated against because of their military obligations.
The lawsuit filed by the United States seeks damages equal to the amount of Costello’s lost wages and other benefits caused by VTC’s failure to comply with USERRA and a dismissal of VTC’s complaint. It also seeks an order requiring VTC to return Costello’s ownership and distribution shares and pay him all amounts that were distributed to shareholders between June 9, 2013, and the date of judgment. The lawsuit seeks an order requiring VTC to pay for all litigation fees related to the court action.
Costello initially filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division, Employment Litigation Section. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office for the District of Utah. The Department of Justice has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s Web sites at http://www.usdoj.gov/crt/emp and http://www.servicemembers.gov, as well as on the Labor Department’s website at http://www.dol.gov/vets/programs/userra/main.htm.
Jury Convicts Felon in Possession of Machine GunsRead the Press Release
TULSA, Okla. — Following a two-day jury trial, Gregory Lynn Shrader, 56, of Jay, Oklahoma, a convicted felon, was found guilty of being in possession of firearms and ammunition, United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma announced today. On June 5, 2014, Shrader was charged by a grand jury with the offense.
On March 6, 2014, a search warrant was executed at Shrader’s home. During the search, law enforcement found three firearms and ammunition, including a 12GA gauge shotgun, a .45 ACP rifle, and a 9mm rifle and ammunition. Both rifles were machine guns.
Sentencing has been set on August 13, 2015, before United States District Court Judge Claire V. Eagan. Shrader faces the statutory maximum penalty of 10 years in prison and a fine of $250,000. In addition, Shrader faces the forfeiture of the firearms and ammunition involved in the offense.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Field office, with assistance by the United States Postal Inspection Service, Phoenix division, and Federal Bureau of Investigation, Tulsa office. Assistant United States Attorneys Joel-lyn A. McCormick, Clemon Ashley, and Catherine Depew prosecuted the case.
Iowa Man Sentenced to Seven Months Imprisonment and Seven Years of Supervised Release for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that on May 11, 2015, Richard Allen Knight, 44, of Shenandoah, Iowa, was sentenced for his failure to register as a sex offender. Senior United States District Judge Lyle E. Strom sentenced Knight to a 7-month term of imprisonment. After his release from prison, Knight will begin a 7-year term of supervised release.
Knight was previously convicted in the State of Oregon of an offense requiring him to register as a sex offender. In July 2014, the United States Marshals Service became aware that Knight was living in Omaha, Nebraska. It was determined that Knight had been in Nebraska for at least three months without registering as a sex offender with the Nebraska State Patrol.
This case was the result of an investigation by the United States Marshals Service.
Indiana Pa., Woman Sentenced to Prison for Conspiring to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Indiana, Pa., has been sentenced in federal court to 15 months in prison and four years supervised release on her conviction of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Tiffany N. White, 26.
According to information presented to the court, from April 2012 to March 8, 2013, White conspired with her co-defendants to possess and distribute 100 grams or more of heroin.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of White.
Hagerman Man Sentenced Ten Years in Federal Prison for Violating Firearms LawsRead the Press Release
ALBUQUERQUE – Terry Lynn Little Jr., 33, of Hagerman, N.M., was sentenced today in federal court in Las Cruces, N.M., to ten years in federal prison followed by three years of supervised release for being a felon in possession of a firearm.
Little was arrested in Oct. 2013, on a criminal complaint charging him with possession of firearms and ammunition in Eddy County, N.M. At the time, Little was prohibited from possessing firearms or ammunition because previously he had been convicted of felony offenses including criminal sexual penetration, aggravated assault with a deadly weapon, aggravated battery resulting in great bodily harm, and failure to register as a sex offender. Little subsequently was indicted on Jan. 22, 2014, and charged with being a felon in possession of a firearm and possession of a firearm with an obliterated serial number.
Little pled guilty on April 3, 2014, to Count 1 of the indictment charging him with being a felon in possession of a firearm. Little admitted that on Sept. 29, 2013, he possessed a shotgun despite knowing that he was prohibited from possessing a firearm due to his status as a convicted felon.
This case was investigated by the Las Cruces and Roswell offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chaves County Sheriff’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Little was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Guilty Pleas in Bakersfield Drug Distribution RingRead the Press Release
FRESNO, Calif. —Arnoldo Delgado Garcia (Delgado), aka Fabricio Rene Delgado-Perea, 35, a Mexican national, pleaded guilty on Monday to conspiring to distribute and possess with intent to distribute methamphetamine and heroin, and in the same case Erik Gesus Rivera, 28, of Bakersfield, pleaded guilty to possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, from May 2013 through January 2014, Delgado and Rivera regularly distributed methamphetamine and heroin to various drug dealers and users in Kern County. During this time period, Delgado admitted that he distributed between 15 and 45 kilograms of methamphetamine and over 1,000 grams of a mixture or substance containing a detectable amount of heroin. Rivera admitted in his plea agreement that he was involved in the distribution of between 15 and 45 kilograms of methamphetamine, and on January 29, 2014, he was found to be in possession of over a pound of crystal methamphetamine and several ounces of heroin that were intended for distribution. According to the plea agreement, Delgado was the supplier for co-conspirator Jose Cruz, 28, of Bakersfield. On April 27, 2015, Cruz pleaded guilty to the conspiracy charge.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Cruz is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on July 20, 2015. Delgado and Rivera are scheduled to be sentenced by Judge O'Neill on August 3, 2015. Cruz and Delgado face a maximum statutory penalty of life in prison and a $10 million fine. Rivera faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Glassport Man Sentenced to 8+ Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania was sentenced in federal court to 100 months imprisonment, followed by 15 years supervised release, on his conviction of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Michael George Hadam, 60, of Glassport, Pa.
According to information presented to the court, from on or about April 9, 2014 to on or about April 11, 2014, Hadam distributed videos containing material depicting the sexual exploitation of minors. Pursuant to the initial forensic review of Hadam’s external hard drive located at the time of the search of his residence, forensic examiners identified approximately 700,000 image files and 1,000 video files of child pornography. In addition to the videos and images found on the hard drive, more than 5,000 video files of child pornography also were recovered from Hadam’s desktop computer.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General for conducting the investigation leading to the successful prosecution of Hadam.
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.
Four Persons Charged with Conspiracy to Unlawfully Ship Firearms to LebanonRead the Press Release
Ali Afif Al Herz, age 50, Bassem Herz, age 30, Sarah Zeaiter, age 24, and Adam Ben Ali Al Herz, age 22, all from Cedar Rapids, Iowa, have each been charged with conspiracy to provide a container or package containing firearms and ammunition to a common carrier without notice to the shipper. The charges are contained in a Complaint unsealed today in United States District Court in Cedar Rapids.
The Affidavit supporting the Complaint alleges that between about August 2014 and May 11, 2015, three containers originating from Cedar Rapids were loaded with Bobcat skid loaders, clothing, and various other items with an intended destination of Beirut, Lebanon. The first container was not interdicted. On about March 26, 2015, the second container was interdicted at the outbound port in Norfolk, Virginia, where it was found to contain 53 firearms and more than 6800 rounds of ammunition secreted in three Bobcat skid loaders inside the container. On May 8, 2015, a third container, loaded and shipped from a Cedar Rapids business, was searched and found to contain an additional 99 firearms and over 9500 rounds of ammunition. The firearms and ammunition were again secreted within two Bobcat skid loaders in the container.
The Affidavit alleges that of the 152 firearms seized from the two shipping containers, approximately 66 of the firearms are known to have been purchased by the four individuals in Cedar Rapids and surrounding areas. As of the time filing the Complaint, whereabouts of at least 47 guns known to have been purchased by the group were unknown.
If convicted on all charges, each individual faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, a $100 in special assessment, and 3 years of supervised release following any imprisonment.
All four individuals appeared today in federal court in Cedar Rapids and were held without bond. Ali Afif Al Herz’ next appearance will be a detention hearing set for May 15, 2015 at 10:00 a.m. Bassem Herz is being held in custody by the U.S. Marshals pending further proceedings. Sarah Zeaiter Herz’ next appearance will be a detention hearing set for May 15, 2015 at 2:00 p.m. Adam Ben Ali Al Herz’ next appearance will be a detention hearing set for May 15, 2015 at 1:00 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard Murphy and was investigated by U.S. Immigration and Customs Enforcement, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The following agencies assisted with the execution of search and arrest warrants today: Bureau of Investigation and Identity Protection, Customs and Border Protection, Homeland Security Investigations, United States Marshals Service, Division of Narcotics Enforcement, Department, Iowa Department of Inspections and Appeals, Iowa Division of Criminal Investigation, Linn County Sheriff’s Office, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Cedar Rapids Police Department, Hiawatha Police Department, Marion Police Department, Vinton Police Department,, Johnson County Drug Task Force, and the Iowa State Patrol.
Anyone with information concerning this matter is requested to contact Homeland Security Investigations at 319-286-4680.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 15-mj-136; 15-mj-137; 15-mj-138; 15-mj-139.
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Fort Pierce Woman Pleads Guilty to Jamaican Lottery ScamRead the Press Release
Sheila Denise Kelly-Christie, 48, of Fort Pierce, pled guilty today to one count of conspiracy to commit wire and mail fraud, in violation of Title 18, United States Code, Sections 371 and 2326. Sentencing is scheduled for August 10, 2015, at 3:00 p.m., before U.S. District Judge Jose E. Martinez in Ft. Pierce. At sentencing, Kelly-Christie faces up to fifteen years in prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
According to court documents, Kelly-Christie was a participant in a Jamaica based scam primarily targeting persons over the age of 55. Kelly-Christie and her co-conspirators in Jamaica, contacted individuals throughout the United States by telephone and falsely told the victims that they had won a lottery or sweepstakes prize. The callers instructed the victims that in order to the claim the prize, the victims had to send money to the scammers in order to pay non-existent fees, registration taxes and the like. The co-conspirators would direct the victims to send their payments to individuals and addresses located in Florida. Kelly-Christie and individuals she would recruit to aid in the scam would receive money from the victims, by U.S. mail, wire transfer, or deposits that were uploaded to debit cards. In turn, Kelly-Christie would keep ten percent of the fraudulently induced payments and forward the remainder of the monies to co-conspirators in Jamaica. During the course of the fraudulent scheme, Kelly-Christie is believed to have received and forwarded over $70,000 in fraudulently induced payments from victims.
Mr. Ferrer commended the investigative efforts of USPIS and HSI. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Former Security Company Operator Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
A Temple Hills, Maryland, resident who operated a company that provided security guards to private businesses and apartment complexes pleaded guilty today in the U.S. District Court for the District of Columbia to failing to file employment tax returns and pay over approximately $600,000 in employment taxes to the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.
Jeffrey Norman Jackson operated Innovative Security Services LLC in Washington, D.C., between 2005 and 2009, according to court documents. Jackson controlled the business’s finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns (IRS Forms 941) and paying over to the IRS the business’ federal income, social security and Medicare taxes (known as FICA taxes) that were withheld from the wages of Innovative’s employees. For more than four years, Jackson willfully failed to comply with these legal obligations. He used the stolen funds to pay personal expenses, such as rent and gym membership fees.
The plea agreement requires Jackson to pay $595,687.39 in restitution to the IRS for the taxes due and owing. He faces a statutory maximum sentence of five years in prison and a $250,000 fine when he is sentenced on July 27.
Acting Deputy Assistant Attorney General Wszalek commended the special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Melissa S. Siskind of the Tax Division, who is prosecuting the case. Wszalek also thanked the U.S. Attorney’s Office of the District of Columbia for their assistance.
Former Postal Employee Pleads Guilty to Discarding MailRead 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 Jeffrey Wojcik, 36, of Cheektowaga, NY, pleaded guilty to obstruction of the mails before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The charge carries a maximum penalty of six months in prison and a $5,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendant, a former employee of the United States Postal Service, failed to deliver a bundle of mail that consisted of Bed Bath & Beyond advertisements. A concerned citizen who witnessed the incident reported it to the United States Postal Service, and the mail was recovered and delivered to its intended recipients.
The plea is the culmination of an investigation by Special Agents of the United States Postal Service Office of the Inspector General, under the direction of Monica Weyler.
Sentencing is scheduled for August 13, 2015 at 10:00 AM before Judge Schroeder.
Former MVA Employee Sentenced to 18 Months in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Traci Lynette Cure, age 46, of Silver Spring, Maryland today to 18 months in prison followed by a year of supervised release for conspiracy in connection with issuing fraudulent driver’s licenses and duplicate vehicle titles.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Milton Chaffee, Administrator of the Maryland Motor Vehicle Administration - Investigation and Security Services Division.
Cure worked at the Maryland Motor Vehicle Administration in Upper Marlboro, Maryland beginning in 1997, and served as a customer agent/lead worker from 2007 until September 4, 2013.
According to her plea agreement, from November 2011 to August 2013, a co-conspirator paid Cure at least $5,500 to issue fraudulent driver’s licenses for the co-conspirator and others, and fraudulent duplicate vehicle titles. Cure received approximately $40 for each of at least 120 duplicate vehicle titles she fraudulently produced, and $100 for each of at least seven driver’s licenses she fraudulently issued. Cure produced driver’s licenses bearing the photos of the co-conspirator and others, and the names of real people, including victims who were citizens of Colombia and Puerto Rico.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and MVA - Investigation and Security Services Division for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
Former Financial Assistant of Architectural Firm Pleads Guilty to ForgeryRead the Press Release
Forged 83 company checks totaling over $469,000
NORFOLK, Va. – Katherine Albert-McNaughton, 36, of Virginia Beach, Virginia, pleaded guilty today to one count of making forged securities and two counts of engaging in a monetary transaction in criminally derived property.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard.
Albert-McNaughton was indicted by a federal grand jury on March 19, 2015. She faces a maximum penalty of 10 years in prison on each of the three counts when she is sentenced on September 3, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with the plea agreement, Albert-McNaughton was employed as a financial assistant by HBA Architecture & Interior Design, Inc., a business located in Virginia Beach, Virginia. Between October 2011 and June 2014, Albert-McNaughton forged the signature of a principal of HBA Architecture & Interior Design, Inc. on 83 company checks, totaling $469,831.89. She deposited all of the forged checks into bank accounts that she maintained and used the money for her own personal benefit, including vacations, shopping, plane tickets, photography, and the purchase of vehicles, concert and professional football tickets.
This case was investigated by the United States Secret Service. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr31.
Former City of Miami Police Officer Sentenced for ExtortionRead the Press Release
Jerry Sutherland, 28, of Miami-Dade County, Florida, formerly an officer with the City of Miami Police Department, was sentenced yesterday to 24 months in prison, followed by one year of supervised release, including 150 hours of community service, following a guilty plea to two counts of extortion. Sutherland was also ordered to pay a $2,000 fine and forfeit $3,400 in illegal proceeds.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
On March 2, 2015, Sutherland admitted to the following facts in support of his plea of guilty:
In early 2014, Sutherland, who, at the time, was an officer with MPD, managed a football team in his spare time. Sutherland requested that a vendor paint the football team’s helmets free of charge. Subsequently, Sutherland began to demand additional services from the vendor without payment. When the vendor balked at these demands, Sutherland, who erroneously believed that the vendor was involved in an illegal gambling operation that was located adjacent to the vendor’s business in Miami-Dade County, intimated that he would shut down the gambling operation if his demands were not met.
Sutherland represented to the vendor that he would provide the vendor with information about impending surveillance and other operations by MPD in the area of the gambling operation so that the vendor could pass on that information to the owners and operators of the gambling operation.
An investigation of Sutherland ensued in which several recordings were made of the defendant receiving 10 bribe payments, many which he received while he was in uniform. Of these payments, 6 were made to Sutherland in exchange for his promise to provide protection for a gambling operation located in Miami-Dade County, that communicated the bets placed there to a gambling establishment in Las Vegas, Nevada; two were made to Sutherland in exchange for his promise to arrange for the dismissal of a criminal court case against an employee of the illegal gambling operation; one was made to Sutherland in exchange for his agreement to increase the visibility of police around a rival gambling location in order to discourage its customers from patronizing that rival location; and the remaining payment was for Sutherland’s promise to provide the vendor with a “case card” with a fictitious case number and officer’s name. Sutherland had been told that the fictitious case card would be used to falsely demonstrate that the gambling operation had been robbed so that the workers could keep for themselves the gambling proceeds that had been made that day. Pursuant to Sutherland’s demands, he received bribe payments which totaled $3,400.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the City of Miami Police Department Internal Affairs Section. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
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United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following: Greenville Residents Charged with Theft of Government Property
John W. Brown, age 63, and Betty Brown, age 57, both of Greenville, South Carolina, were charged in a two-count Indictment charging violations of Title 21, United States Code, Section 843(a)(3), which prohibits obtaining prescription drugs by deception and subterfuge, and Title 18, United States Code, Section 641, which prohibits the theft of government funds or property. The maximum penalty the defendants could receive is four years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Individual Charged with Escape from Custody
Tishika N. Gatson, age 34, was charged in a single-count Indictment with escaping from the custody of a correctional facility, a violation of Title 18, United States Code, Section 751(a). The maximum penalty Gatson could receive is five years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Marshals Service, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Foreign Nationals Charged with Illegal Re-entry
Maclovio Avellaneda-Gama, Miguel Angel Sanchez-Raudales, Magdelena Bartolon-Garcia, David Tello-Sanchez and Alfredo Jimenez-Gonzalez were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by Department of Homeland Security, U.S. Immigration and Customs Enforcement agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Eighth Guilty Plea in Norteno InvestigationRead the Press Release
BOISE – Kenny P. Breedlove, 35, of Porterville, California, pleaded guilty today in United States District Court to possession of methamphetamine with intent to distribute, U.S. Attorney Wendy J. Olson announced. Breedlove was indicted by a federal grand jury on November 14, 2014.
According to the plea agreement, Breedlove admitted that on October 6, 2014, he possessed methamphetamine that he intended to distribute to another person. On that date, Nampa Police officers conducted a traffic stop of a vehicle Breedlove was driving. Breedlove told officers the vehicle belonged to him. A police drug-detection dog sniffed the vehicle and alerted to the odor of illegal drugs. Police officers searched the vehicle and located a loaded 9 millimeter pistol, 337 grams of methamphetamine, and digital scales. As part of his plea agreement, Breedlove admitted that he possessed the pistol in connection with the drug offense.
The charge of possession of methamphetamine with intent to distribute is punishable by a minimum term of imprisonment of five years and up to forty years, a maximum fine of $5 million, and a minimum term of four years supervised release. Breedlove is scheduled to be sentenced on August 3, 2015, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Breedlove was charged as a result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. So far, one defendant has been sentenced. Guadalupe Serrano was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Breedlove was the eighth defendant to plead guilty. The others that have pleaded guilty include Johnny Lee Martinez, 33, Guillermo Farias Jr., 29, Jose Manuel Menchaca, 35, Nicole Danelle Nieto, 31, Brandi Marie Larrea, 31, and Tara Noelle Rivera, 30, all from Nampa. Three others are scheduled for trial including Michael David Bradshaw, 31, Richard Lobato, 51, both from Nampa, and Isaac Bright, 21, from Caldwell. Three other defendants have outstanding warrants, including Jose Enrique Olvera Jr., 51, Ruben Rodriguez, 36, and Veronica Cantu, 26, all from Nampa.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Egyptian national sentenced to 6 months in prison for resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that an Egyptian national was sentenced Monday to six months in prison for refusing to leave the country twice after being ordered to depart.
Mohamed Admed Hassan Abdallah Omran, 39, of Egypt, was sentenced by U.S. District Judge Dee D. Drell on two counts of failure to depart for resisting removal after final deportation orders. He was also sentenced to one year of supervised release. Evidence admitted at the defendant’s trial, which started on February 4 and ended February 5, 2015, revealed that after an immigration judge issued a final order of removal from the country, U.S. Immigration Enforcement agents attempted to remove Omran from the country via the Alexandria International Airport using commercial flights on two separate occasions. The defendant hampered agents’ ability to remove him by verbally and physically resisting agents on June 12, 2013, and a second time on July 24, 2013. The defendant’s actions prevented him from boarding the flights because of airline and Transportation Security Administration safety policies.
Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys F. Michael O’Mara and Cytheria D. Jernigan prosecuted the case.
East Stroudsburg Man Charged with Theft of MailRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal information was filed today in U.S. District Court in Scranton charging Jacob Tanner, age 28, of East Stroudsburg, Monroe County, with theft of mail.
According to United States Attorney Peter Smith, the alleged theft was discovered after a number of Stroudsburg residents complained about missing, torn or discarded mail. Tanner was allegedly observed on surveillance video removing mail from a mailbox outside a residence in Stroudsburg. Postal Authorities later apprehended Tanner in possession of stolen mail in December 2014.
The government also filed a plea agreement in the case, which must be approved by the court.
The case is being investigated by the United States Postal Service, Office of Postal Inspection Services, and is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Anyone who believes they may be a victim or have further information should contact Postal Inspector David Heinke, United States Postal Service, at 877-876-2455.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Dominican Man Pleads Guilty to Fraudulently Receiving Disability BenefitsRead the Press Release
BOSTON – A Dominican man, who currently lives in Lawrence, pleaded guilty today in U.S. District Court in Boston to receiving $62,243 in disability benefits under a false identity.
Jose Marin, 33, pleaded guilty to one count of theft of public money after being indicted in October 2014. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for Aug. 4, 2015.
Marin, who was born in the Dominican Republic, entered the United States in or about 2003 unlawfully and acquired identification documents in the name of another person. From 2006 through July 2014, Marin received $62,243 in Social Security disability benefits under the other person’s identity. Marin would not have been eligible for these benefits under his true identity.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration (SSA) to investigate and prosecute fraud pertaining to Social Security disability benefits.
In May 2015, Wendy Mairle, of North Attleboro, pleaded guilty to stealing $32,439 in SSA benefits from a disabled man whose finances she was managing. Sentencing is scheduled for Aug. 18, 2015.
In March 2015, Emily Lardiero, of Revere, was sentenced to three years of probation, including six months of home confinement, and was ordered to pay $47,671 in restitution to SSA and $40,391 in restitution to the U.S. Department of Housing and Urban Development (HUD). Lardiero worked and earned income for several years, despite telling SSA that she was still disabled and not earning income in order to continue receiving disability benefits. She also illegally received HUD rental subsidies for several years.
In July 2014, Charles Flynn and Steven Grondell, both of Georgetown, were each sentenced to three years of probation, including six months of home confinement, and ordered to serve 105 hours of community service and to pay $105,158 in restitution to SSA. Flynn received SSA disability benefits while working under Grondell’s identity, and with his permission, to conceal the work from SSA.
Also in July 2014, Carl Lynch, of Ware, was sentenced to three years of probation, including six months of home confinement, and was ordered to pay $50,264 in restitution to SSA. Lynch received SSA disability benefits while working under another man’s identity to conceal the work from SSA.
In January 2014, Antonio Pulinario Brea, of the Dominican Republic, was sentenced to 10 months in prison and ordered to pay $60,455 in restitution to SSA. Pulinario Brea used the identity of an American citizen to obtain SSA disability benefits that he would otherwise not have been entitled to receive.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Marin case was investigated by the Homeland Security Investigations’ Document and Benefit Fraud Task Force. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Dominican Man Guilty of Illegally Reentering the United StatesRead the Press Release
Concord, NH – Jose Luis Diaz-Pena, 34, of the Dominican Republic, pleaded guilty in United States District Court for the District of New Hampshire to illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith.
Diaz-Pena was arrested on January 13, 2015 by agents of the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. A New Hampshire State Trooper serving on the New Hampshire State Police’s Department of Motor Vehicles Task Force contacted federal authorities after Diaz-Pena appeared at a DMV office in Nashua and attempted to obtain a New Hampshire identification card. Fingerprints taken by federal authorities determined that Diaz-Pena had been deported from the United States on three prior occasions.
Diaz-Pena was indicted in U.S. District Court on March 11, 2015. His sentencing was scheduled for August 19, 2015, at 10:00. Diaz-Pena will again be deported after serving his sentence.
This case was investigated by the New Hampshire State Police and the Bureau of Immigration and Customs Enforcement. It is being prosecuted by Assistant U.S. Attorney Alfred Rubega.
Detroit man sentenced to 97 months for role in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a conspiracy that funneled multiple kilos of heroin into the Huntington area between 2012 and 2014 was sentenced yesterday to more than eight years in federal prison, announced United States Attorney Booth Goodwin. Kenneth D. Bowden, 29, previously pleaded guilty in February 2015 to possession with intent to distribute 100 grams or more of heroin before Chief United States District Judge Robert C. Chambers.
Bowden admitted that between 2013 and April 2014, he conspired with other individuals to distribute heroin in the Huntington, West Virginia area. During the conspiracy, shipments of heroin were frequently made from Michigan to Huntington. Bowden and his associates used multiple residences in Huntington as locations from which they prepared, stored and distributed heroin.
On April 8, 2014, officers executed a search warrant at an apartment in the 900 block of 6th Street in Huntington. Bowden was staying in the apartment at the time of the search warrant. When they entered the apartment, officers observed Bowden and a second individual exiting through the rear bedroom. During the search, officers found a bag containing 113.7 grams of heroin. The Huntington Police Department Forensic Investigations Unit located a usable print on the bag, and connected the drugs to Bowden through his right thumb print.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Daniel T. Eckstrom Sentenced to 240 Years Imprisonment for Production, Possession and Distribution of Child PornographyRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Daniel T. Eckstrom, 32, of Lake Station, Indiana, was sentenced today to 240 years (2,880 months) of imprisonment followed by lifetime supervised release for his nine criminal convictions for Production, Distribution and Possession of Child Pornography.
According to documents filed in the case, on January 17, 2014, Eckstrom pled guilty to seven charges of producing child pornography, one charge of distributing child pornography and one charge of possessing child pornography.
The production of child pornography charges were based on Eckstrom’s capturing of thousands of images and hundreds of videos depicting three minor female victims under the age of 12 being caused to engage in sexually explicit conduct. One victim was sexually abused by Eckstrom over a period of 5 years. The court found that Eckstrom had used force to cause her to engage in sexual acts, and also used threats of violence. Based on the evidence of child pornography production presented at sentencing, the court concluded that Eckstrom was a repeat and dangerous sex offender and sentenced him to consecutive terms of 360 months (30 years) on each of the seven production of child pornography charges.
On the distribution of child pornography charge, the evidence presented at sentencing established that Eckstrom distributed depictions of two of his victims to others. As a result, over 600 depictions of one victim have been found in 7 investigations in 6 different U.S. states, and over 10,000 depictions of another have been found in 77 investigations in 29 different states. Eckstrom received a 240 month (20 year) sentence for his distribution of child pornography charge, and another 120 months (10 years) for possession of child pornography, both consecutive to each other and consecutive to the production charges.
The investigation in this case began when Homeland Security Investigations out of Salt Lake City, UT located an individual suspected of producing child pornography in Sandy, UT and distributing the material via an email account. Upon further investigation, that target was found to be trading depictions, including depictions produced by Eckstrom, with another target out of Syracuse, NY. When the material was sent to the National Center for Missing and Exploited Children, an investigator with that agency helped identify Eckstrom. Once Eckstrom was located in northwest Indiana, local agents with Homeland Security Investigations obtained a federal warrant to search his residence.
This case was a culmination of the great work that can be accomplished from outstanding coordination between various law enforcement agencies around the country to identify and bring serial child sexual abusers to justice.
This case was investigated by the United States Department of Homeland Security Investigations and prosecuted by Assistant United States Attorney Jill R. Koster.
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Court Approves Dismissal of Longstanding School Desegregation Case in Wayne County, MississippiRead the Press Release
Today, the United States District Court for the Southern District of Mississippi approved the joint motion for unitary status filed by the Department of Justice and the Wayne County School District in Mississippi. At the department and school district’s request, the court dismissed this longstanding school desegregation case. The school district serves close to 3,500 students and has been operating under a desegregation order since 1970.
In 2006, the court entered an order specifically prohibiting the use of race in classroom assignments at Waynesboro Elementary School, one of the district’s four elementary schools. In 2012, after concerns continued about Waynesboro’s classroom assignment practices, the court approved a consent order directing the district to randomly assign students to classrooms in the school. The district has successfully used the new classroom assignment procedures for the last four school years.
The department recently determined that the district had complied fully with the terms of the 2012 consent order and is therefore eligible for unitary status and dismissal of the case.
“We commend the Wayne County School District for satisfying its remaining obligations in this case and ensuring equal educational opportunities for all students,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We have been pleased to work with the district and other school systems under desegregation orders to resolve outstanding issues and seek dismissal of these cases when district have satisfied their obligations.”
Currently, the department monitors 178 school districts under active desegregation orders. Over the last year, several school districts under desegregation orders have successfully sought unitary status from the courts and the cases have been dismissed.
Promoting school desegregation is a priority of the department’s Civil Rights Division. Additional information about the division is available at www.justice.gov/crt.
Convicted Felon Pleads Guilty to Possessing Firearm Stolen from Rural King Break InRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Michael J. Khoury, 43, of Cahokia, Illinois, pled guilty today in the United States District Court to one count of Possession of a Weapon by a Felon. Evidence showed that on January 19, 2015, Khoury and another individual broke in to Rural King, located at 2801 North Illinois, Swansea, Illinois, and stole over fifteen firearms. Khoury later sold one of the stolen firearms to a confidential informant, who provided that weapon to law enforcement. The serial number of that firearm matched the serial number of one of the firearms taken in the burglary.
Sentencing has been scheduled for August 21, 2015, in front of the Honorable David R. Herndon. Due to Khoury’s criminal history, he is eligible for sentencing as an Armed Career Criminal, thus he faces a minimum sentence of fifteen years in the Bureau of Prisons.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Swansea Police Department. The case is being prosecuted by Assistant United States Attorney Laura Reppert.
Connecticut Man Sentenced to Ten Years in Child Enticement StingRead the Press Release
BOSTON – A Connecticut man was sentenced today in U.S. District Court in Boston for traveling to Watertown in response to an advertisement on Craigslist in which a woman sought an adult man who might be interested in a sexual relationship with her child. The Craigslist ad was placed by undercover federal agents seeking to detect online predators.
Paul R. Hinkel, 57, of Chester, Conn., was sentenced by U.S. District Court Judge William G. Young to 10 years in prison and five years of supervised release. He was convicted by a federal jury following a three-day trial in February 2015 of using the Internet in an attempt to entice or coerce a minor to engage in sex.
In February 2014, an undercover federal agent placed an advertisement on Craigslist posing as a mother seeking an adult male interested in a sexual relationship with her daughter. Hinkel responded to the advertisement and was not deterred when he was told that the daughter was only 15-years-old. Hinkel proceeded to engage in hundreds of emails with the undercover agents, detailing the sexual activities in which he would engage with the teen. On March 19, 2014, Hinkel traveled from his home in Chester, Conn. to Watertown to meet and have sex with the fictional minor daughter. He carried a bag to the door with him, which contained sexual paraphernalia, men’s cologne, and a stuffed animal. Hinkel was arrested by federal agents upon his arrival at the site in Watertown.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The HSI New Haven, Conn. Field Division; Customs & Border Protection, New York Air Unit; Watertown Police Department; and Massachusetts State Police, also assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Eve A. Piemonte and Jordi de Llano of Ortiz’s Major Crimes Unit.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Company Owner Pleads Guilty to Falsifying Records in A Federal InvestigationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LINDA D. WHITE, age 64, of Livingston, Louisiana, pled guilty yesterday before U.S. District Judge Shelly D. Dick to altering and falsifying records in a federal investigation, in violation of Title 18, United States Code, Section 1519. As a result of her conviction, WHITE faces a potential prison term, as well as a significant fine and restitution to her victims.
WHITE operated a company called Linda White & Associates, which, from 2010 until 2013, represented hundreds of agricultural employers seeking to hire temporary foreign workers using H-2A visas. Before hiring foreign workers, United States Department of Labor rules require that the agricultural employers attempt to hire domestic workers by placing newspaper advertisements. As owner and operator of Linda White & Associates, WHITE received fees from her clients to place the ads; in many cases, however, WHITE kept the fees without placing any ads. The advertising fees ranged from $450 to $675 per client.
The U.S. Department of Labor eventually developed concerns regarding WHITE and her business and initiated an audit. In response to the audit, instead of truthfully admitting her scheme, WHITE falsified numerous documents and submitted the false documents to the Department of Labor. These documents included, for instance, false advertisement receipts that represented that WHITE had placed advertisements on behalf of her agricultural clients when, in fact, she had not done so.
U.S. Attorney Green stated: “Defrauding clients and attempting to cover up the fraud during a federal audit is a quick path to becoming a federal felon. We will continue to aggressively pursue those who seek to defraud and obstruct the important oversight missions by the U.S. Department of Labor and other federal agencies.”
This investigation was handled by the U.S. Department of Labor’s Office of Inspector General and the Federal Bureau of Investigation. This matter is being prosecuted by Special Assistant United States Attorney J. Brad Casey.
Commercial truck driver convicted of stealing products during shipmentRead the Press Release
WHEELING, WEST VIRGINIA – Bruce Silver, 55, of Neffs Ohio, was convicted in federal court today after he admitted to using his position as a commercial truck driver to steal merchandise, United States Attorney William J. Ihlenfeld, II, announced.
Mr. Silver owned and operated a commercial vehicle which he used to transport shipments of retail goods, including deliveries of products and goods from Cabela’s Distribution Center located in Triadelphia, West Virginia. He devised a scheme to embezzle and steal Cabela’s merchandise while the goods were being transported. Specifically, in April 2014, Silver stole a shipment of Cabela’s products valued at more than $1,000.00.
Silver pled guilty today to a criminal Information charging him with one count of “Theft From Interstate Shipment.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
Senior U.S. District Judge Frederick P. Stamp presided.
Cincinnati Woman Pleads Guilty to Role in Illegal Money Laundering SchemeRead the Press Release
‘Work From Home’ Jobs Actually Fraudulent Scheme
CINCINNATI – Shawnell Evans, 28, of Cincinnati, pleaded guilty in U.S. District Court for operating an unlicensed money transmitting business.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Senior Judge Sandra Beckwith.
Evans admitted to serving as a “money mule” for multiple fraudulent schemes through “work from home” jobs from approximately 2011 through 2013. According to court documents, during that time, Evans received instructions from a variety of different individuals via email regarding transfers of money and goods in exchange for a payment to Evans. Per the instructions, Evans would wait for money to show up on debit cards, transfer most of the money via Western Union or MoneyGram, and keep a percentage of the funds.
The defendant was also instructed to print fake company checks by downloading certain bank logos. On certain occasions, Evans received stolen credit cards as part of her money mule services and used the stolen credit cards. Evans was warned by the FBI that she was participating in facilitating certain fraud rings, but even after the warnings, Evans continued to wire the fraudulent funds and help the schemes.
Evans pleaded guilty to one count of knowingly conducting, controlling, managing, supervising, directing and owning all or part of an unlicensed money transmitting business, a crime punishable by up to five years in prison.U.S. Attorney Stewart commended the cooperative investigation by the FBI, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
Castle Rock Man Pleads Guilty to Sending Marijuana Thorugh the U.S. MailRead the Press Release
Defendant also received over $100,000 in cash through the U.S. Mail in return
DENVER – Brian Daniel Evins, age 42, of Castle Rock, Colorado, pled guilty before U.S. District Court Judge Robert E. Blackburn to three counts of possession of a controlled substance with the intent to distribute, U.S. Attorney John Walsh and Denver U.S. Postal Inspector in Charge Adam P. Behnen announced. Evins, appeared at the change of plea on April 30, 2015 before Judge Blackburn. He was at that hearing free on bond. Evins was originally indicted by a federal grand jury in Denver on February 9, 2015.
According to the stipulated facts contained in the plea agreement, on April 2, 2014, a U.S. Postal Inspector came across a suspicious mailing that may have contained narcotics or narcotic proceeds. The first package in question came from Missouri, and contained U.S. currency. The package was sent to a Commercial Mail Receiving Agency (CMRA) mailbox and was addressed to an individual from Lone Tree, Colorado. Further investigation revealed that the person who rented the CMRA mailbox used fake identification.
Inspectors conducted surveillance of the CMRA mailbox. They saw an individual driving a grey Honda Pilot come into the CMRA, pick up several packages from the CMRA mailbox, and return to his car. Inspectors traced the car to an individual named Brian Daniel Evins, of Castle Rock, Colorado. A review of Evins’ driver’s license revealed that he was the same individual who entered the CMRA and claimed parcels from the CMRA mailbox. At one point he also claimed one parcel of what appeared to be U.S. Currency that was too large to fit in his mailbox.
As the investigation continued, the Inspectors found Evins mailing parcels of marijuana from a handful of post offices in South Metro Denver during the Summer and Fall of 2014. Further, he continued to pick up parcels that appeared to be U.S. currency from his CMRA mailbox. As a result, Inspectors decided to contact him while he was collecting his mail at the mailbox.
During that contact it was determined that Evins sent via U.S. Mail over 100 outbound packages containing marijuana to various locations across the country. Further, he received over 100 inbound money parcels containing several hundreds of thousands of dollars in U.S. currency. Inspectors then conducted a search of Evins’ apartment. That search resulted in recovering 580 grams of bagged marijuana, 800 grams of marijuana extract/hash oil, 5,480 grams of marijuana edibles, for a total weight of 6,860 grams of marijuana. A search of his vehicle resulted in finding an additional 78 grams of liquid marijuana. He had previously mailed two additional packages that were seized by law enforcement. Those packages contained 3,654 grams of marijuana. In total, Inspectors learned that Evins sent 11,026 grams of marijuana. Law enforcement also had seized during the investigation over $53,000 of U.S. currency which was the proceeds from his illegal narcotics transactions. That money was forfeited to the government as part of the defendant’s plea agreement.
“As the Department of Justice has made clear, stopping the interstate transportation of marijuana is a federal priority,” said U.S. Attorney John Walsh. “When drug traffickers use the U.S. mail to violate federal drug laws, the U.S. Attorney’s Office will team up with our local, state and federal partners to hold violators accountable.”
“The defendant’s use of the U.S. Mail to send marijuana is illegal and is evidenced by his recent guilty plea to federal charges for intent to distribute” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “Although some states have recently passed laws allowing their residents to possess small amounts of marijuana, it is a violation of federal statute to use the U.S. Mail to ship any and all illegal drugs.”
The defendant pled guilty to three counts of possession of a controlled substance with the intent to distribute. He faces not more than 20 years in federal prison, and up to a $1,000,000 fine per count.
This case was investigated by the U.S. Postal Inspection Service.
Evins is being prosecuted by Assistant U.S. Attorneys Kurt Bohn.
California Men Sentenced to Federal Prison for Trafficking Methamphetamine in New MexicoRead the Press Release
ALBUQUERQUE – Two residents of La Puente, Calif., were sentenced today in federal court in Las Cruces, N.M., for convictions on methamphetamine trafficking charges. Mario Llantada, 51, was sentenced to 168 months in prison followed by five years of supervised release, and Martin Llantada, 42, was sentenced to 121 months in federal prison followed by five years of supervised release.
Mario Llantada and Martin Llantada were indicted on March 19, 2014, and charged with conspiracy to distribute methamphetamine. The three-count indictment also charged Mario Llantada with money laundering and using a communication device in furtherance of a drug trafficking crime. On Aug. 14, 2014, the indictment was superseded to add a fourth count, possession of methamphetamine with intent to distribute, against Mario Llantada.
The indictments charged the defendants with participating in a conspiracy to distribute methamphetamine from Los Angeles, Calif., to Doña Ana County, N.M. As part of that conspiracy, between March 4, 2014 and March 21, 2014, the defendants, who were in California, conspired with each other to sell approximately four pounds of methamphetamine to an undercover FBI agent in Doña Ana County. The defendants were arrested on March 21, 2014, and have been in federal custody since that time.
Mario Llantada pled guilty on Sept. 23, 2014, to the four counts of the superseding indictment without the benefit of a plea agreement. His co-defendant, Martin Llantada pled guilty to conspiracy to distribute an aggregate of four pounds of methamphetamine in Doña Ana County.
This case was investigated by the Las Cruces office of the FBI, the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and the San Bernardino Police Department, and was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.