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Friday 27 March 2015
Registered Sex Offender Sentenced to 10 Years in Prison for Accessing with Intent to View Child PornographyRead the Press Release
A registered sex offender was sentenced to 10 years in federal prison today for accessing an Omaha-based child pornography website with the intent to view graphic images and videos depicting child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division.
David William Peer, 37, pleaded guilty on Dec.16, 2014, to accessing with the intent to view child pornography. Following his prison sentence, Peer will be on supervised release for a period of 15 years, during which he is required to continue to register as a sex offender, is prohibited from having unapproved contact with minors, must submit to computer monitoring and must participate in sex offender treatment. Senior U.S. District Judge Joseph Bataillon of the District of Nebraska imposed the sentence.
During his plea hearing, Peer admitted that, in December 2012, he intentionally accessed an Omaha-based website containing thousands of images and videos depicting children, including infants and toddlers, being sexually abused.
In 2002, Peer was convicted in federal court in the District of Utah of receiving and distributing child pornography, and he was a registered sex offender at the time of this offense.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. The FBI was assisted in its investigation by Europol, as well as members of the FBI’s Violent Crimes Against Children International Task Force. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Port Angeles Man Forges Paperwork to Get Grandmother’s Federal Benefits Long After Her DeathRead the Press Release
A Port Angeles man who collected nearly $200,000 by claiming his grandmother was still alive years after her death, was sentenced today in U.S. District Court in Tacoma to one year in prison and three years of supervised release, announced Acting United States Attorney Annette L. Hayes. MORGAN MICHAEL HOPKINS, 43, pleaded guilty to Theft of Public Funds in connection with his scheme to collect and use survivor benefits owed to his grandmother. At sentencing U.S. District Judge Ronald B. Leighton noted he had seen a number of similar theft cases. “There’s got to be some residue that reverberates to the community at large - - both to the population that is tempted and the population that is angry about the unprovoked theft of taxpayer money,” Judge Leighton said.
According to records filed in the case, after HOPKINS’ grandmother died in March of 2009, he forged official government documentation – claiming to be his grandmother – and requesting that her federal workers’ compensation death survivor benefits continue. The United States Department of Labor had been paying workers’ compensation survivor benefits to the defendant’s grandmother following the death of her husband, a former federal employee, since about 1968. When the defendant’s grandmother died, the Department of Labor terminated the benefits. However, the defendant fraudulently submitted a sworn verification of benefits statement to the DOL in November of 2009 by forging his grandmother’s name and requesting that the benefits be continued. As a result of receiving the falsified verification of benefits form, the DOL continued paying benefits to the defendant’s grandmother and ultimately paid $196,565 into her bank account after her death. HOPKINS used his grandmother’s debit card and forged his grandmother’s signature on checks so that he could access the money and use it for his own purposes.
In January 2014 the Department of Labor confirmed that HOPKINS’ grandmother had died five years earlier and terminated the payments.
The case was investigated by the Department of Labor Office of Inspector General (DOL-OIG). The case was prosecuted by Assistant United States Attorney Erin Wilson.
Owner of Arlington Doggy Daycare Center Sentenced to 10 Years in Prison for Heroin TraffickingRead the Press Release
An Arlington dog kennel operator was sentenced today in U.S. District Court in Seattle to ten years in prison for conspiracy to distribute heroin and methamphetamine, and possession of counterfeit money, announced Acting United States Attorney Annette L. Hayes. SHAWN LUNDY, 61, the operator of Arlington Doggy Day Care, was arrested February 25, 2014 and pleaded guilty November 24, 2014. When law enforcement agents searched the kennel facility in February 2014, they found cash from the sale of drugs and counterfeit money in various safes on the property and in hidden voids in the walls they found heroin, methamphetamine, cash and other drug trafficking paraphernalia. U.S. District Judge Robert S. Lasnik imposed five years of supervised release to follow the prison term.
According to records filed in the case, LUNDY came to the attention of law enforcement as someone distributing significant amounts of heroin in Snohomish County, an area particularly hard hit by heroin overdoses. LUNDY has previous federal drug trafficking convictions in both Connecticut and Washington.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved, The case was investigated by the Drug Enforcement Administration (DEA, Bellingham Resident Office), the Whatcom County Drug and Gang Task Force, Skagit County Inter-local Drug Enforcement Unit, Snohomish Regional Drug and Gang Task Force, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and Customs and Border Protection Air and Marine Division.
The case was prosecuted by Assistant United States Attorneys Karyn Johnson and Steven Masada.
Operator of Tax Preparation Businesses Sentenced to 70 Months in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
A Broward resident who operated various tax preparation businesses was sentenced to 70 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $279,903.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Julio Lugo, 38, previously pled guilty to one count of conspiracy to defraud the government with respect to claims and one count of aggravated identity theft.
According to court documents, Lugo operated various tax preparation businesses including #1 Tax Specialist, The Number One Tax Specialist, and Number Two Tax Specialist. Light House Refund, which was another tax preparation business, obtained an Electronic Filing Identification Number (EFIN) from the IRS to electronically file clients' income tax returns. Lugo used the EFIN for Light House Refund to file 48 fraudulent tax returns using stolen identities, and obtained tax refunds to which he was not entitled.
Co-defendant Jamar James was sentenced to two years of probation. James previously pled guilty to one count of making a false statement to a federal agency.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case was prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
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.
North Potomac Felon Indicted in $212,000 Business Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Curtis R. Martin, Jr., age 55, of North Potomac, Maryland, on charges related to a scheme to defraud a business of more than $212,000. In addition, the indictment charges Martin with making false statements to his probation officers. The indictment was returned on March 18, 2015, and unsealed on March 26, 2015, upon Martin’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the 14-count indictment, Martin purported to operate technology companies, including Oledix Technologies, LLC and The Oledix Store, LLC, as their President and Chief Executive Officer (CEO). Martin represented that Oledix Technologies was in the business of selling video teleconferencing equipment that employed LED touchscreen technology, and that The Oledix Store was a retail outlet for Oledix Technologies. In fact, neither company did any significant amount of business.
According to the indictment, Martin, through false and fraudulent representations, obtained a total of approximately $212,455 between May and August 2012, from New Century Financial (NCF), a company that provides account receivable financing. Martin allegedly used the funds for personal and business-related expenses.
Accounts receivable financing permits a business to obtain loans from a lender or financing company based upon outstanding invoices issued to customers, but for which payment is not yet due under the terms of the invoice. An accounts receivable financing company agrees to provide financing that is less than the full face value of the invoice. The business receiving the financing instructs its customer to make the payment owed on the invoice to the financing company, which retains the difference between the amount financed and the full face value of the invoice as its profit.
The indictment alleges that that Martin submitted an on-line application for financing to NCF that falsely represented and inflated the monthly sales of Oledix Technologies. In support of the financing application, Martin submitted additional fraudulent documents, including bank statements, financial reports, and sales summaries, that presented a false and misleading picture of the financial position of Oledix Technologies. Finally, Martin provided NCF with fraudulent invoices which falsely represented that Oledix Techologies had sold electronic devices relating to video teleconferencing capabilities to Company 1 at a cost of $159,000, and had sold Johns Hopkins Hospital/Hopkins Medical Center three “Oledix mobile telemedicine carts” at a cost of $174,200. Martin submitted an additional fraudulent invoice to NCF claiming that Hopkins had purchased an additional six “Oledix Mobile Telemedicine Carts” for a total price of $332,550. The indictment alleges that Oledix Technologies actually owed money to Company 1, and had not sold any equipment to Johns Hopkins . To carry out the scheme, Martin allegedly sent or caused to be sent to NCF fraudulent emails, purporting to be from a Hopkins doctor and from a Hopkins account manager, which falsely confirmed the validity of the Hopkins invoices.
The indictment further alleges that from July 2011 through July 2013, Martin made false statements to his probation officers. During that time, Martin was on supervised release for a 2010 federal conviction in the Eastern District of California. As part of his supervised release, Martin was required to provide his probation officer with a monthly report detailing personal, employment and financial information. Martin certified that the information provided on the forms was correct. The indictment alleges that Martin made false statements on the forms he provided to his probation officer, including where and with whom he was living, where he was employed, and that he was not a party to any lawsuit.
The indictment seeks forfeiture of $212,455, believed to be the proceeds of the fraud scheme.
Martin faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud, and a maximum of five in prison for each of five counts of making a false statement. Martin had his initial appearance on March 26, 2015 and is detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked the U.S. Probation Office for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
New York City Police Officer and Customs and Border Protection Officer Sentenced to Three Years for International Arms TraffickingRead the Press Release
Defendants Used Law Enforcement Credentials to Obtain Military-Grade Assault Rifles, Sniper Rifles and Other High-Powered Weapons for Smuggling to the Philippines
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office, Special Agent in Charge Delano A. Read of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) New York Field Division and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced today that former New York City Police Officer Rex Maralit and his brother Wilfredo Maralit, a Customs and Border Protection Officer assigned to Los Angeles International Airport, were sentenced earlier today at the federal courthouse in the Eastern District of New York to each serve three years in prison to be followed by three years of supervised release for their roles in an illegal scheme to smuggle high-powered assault rifles, sniper rifles, pistols and firearms accessories from the United States to the Philippines. The defendants pleaded guilty on June 12, 2014, before U.S. District Judge Allyne R. Ross of the Eastern District of New York to violating the Arms Export Control Act. A third brother, Ariel Maralit, resides in the Philippines and remains a fugitive.
“These defendants violated their sworn duties to uphold the law, abusing their positions of trust to profit from the illegal export of extremely dangerous weapons,” said U.S. Attorney Lynch. “Today’s sentences send a powerful message that criminal conduct by police officers, federal agents, and their confederates will not be tolerated, and that no one, least of all those entrusted to protect the communities and the country they serve, is above the law.”
Between January 2009 and September 2013, the defendants exported a variety of military-style firearms, along with high-capacity magazines and accessories for those weapons, from the United States to the Philippines where they were sold to overseas customers. Both Rex and Wilfredo Maralit used their official credentials and status to obtain and ship the weapons without first obtaining a license from the U.S. State Department. The firearms included the Barrett .50 caliber long-range semi-automatic rifle, the FN “SCAR” assault rifle, and high-capacity FN 5.7mm semi-automatic carbines and pistols which fire a cartridge that was specifically designed to penetrate body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the U.S. State Department before shipping weapons overseas. Similarly, dealing in firearms is regulated by ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such business.
The case was investigated by HSI, DCIS, ATF and the NYPD’s Internal Affairs Bureau, with assistance provided by the U.S. Attorney’s Office of the Central District of California and the U.S. Attorney’s Office of the District of New Jersey.
The government’s case is being prosecuted by Assistant U.S. Attorneys Seth DuCharme and Sam Nitze of the Eastern District of New York, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
New York City Police Officer and Customs and Border Protection Officer Sentenced to Three Years in Prison for International Arms TraffickingRead the Press Release
Former New York City Police Officer Rex Maralit and his brother Wilfredo Maralit, a Customs and Border Protection Officer assigned to Los Angeles International Airport, were sentenced earlier today at the federal courthouse in Brooklyn to three years’ imprisonment to be followed by three years of supervised release for their roles in an illegal scheme to smuggle high-powered assault rifles, sniper rifles, pistols, and firearms accessories from the United States to the Philippines. The defendants pleaded guilty on June 12, 2014, before United States District Judge Allyne R. Ross to violating the Arms Export Control Act. A third brother, Ariel Maralit, resides in the Philippines and remains a fugitive.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Assistant Attorney General John P. Carlin; Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office; Delano A. Read, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“These defendants violated their sworn duties to uphold the law, abusing their positions of trust to profit from the illegal export of extremely dangerous weapons,” stated Ms. Lynch. “Today’s sentences send a powerful message that criminal conduct by police officers, federal agents, and their confederates will not be tolerated, and that no one, least of all those entrusted to protect the communities and the country they serve, is above the law.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, ATF, and the NYPD’s Internal Affairs Bureau, which worked closely together to investigate the case, and to the U.S. Attorney’s Office for the Central District of California and the U.S. Attorney’s Office for the District of New Jersey for their assistance.
Between January 2009 and September 2013, the defendants exported a variety of military-style firearms, along with high-capacity magazines and accessories for those weapons, from the United States to the Philippines where they were sold to overseas customers. Both Rex and Wilfredo Maralit used their official credentials and status to obtain and ship the weapons without first obtaining a license from the U.S. State Department. The firearms included the Barrett .50 caliber long-range semi-automatic rifle, the FN “SCAR” assault rifle, and high-capacity FN 5.7mm semi-automatic carbines and pistols which fire a cartridge that was specifically designed to penetrate body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the United States State Department before shipping weapons overseas. Similarly, dealing in firearms is regulated by the ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such a business.
The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and Sam Nitze, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
The Defendants:
REX G. MARALIT
Lawrenceville, New Jersey
Age: 46
WILFREDO MARALIT
Garden Grove, California
Age: 49
Navajo Man from Littlewater, N.M., Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Michael Benally, 31, an enrolled member of the Navajo Nation who resides in Littlewater, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to assault charges. Benally is the last of three defendants to enter a guilty plea in this case.
Benally and co-defendants Gabriel Largo, 28, and Joshua Largo, 20, both enrolled members of the Navajo Nation who reside in Crownpoint, N.M., were arrested on Sept. 17, 2014, on a criminal complaint charging them with assaulting a Navajo man with a sledgehammer and a rock and causing him serious bodily injury. The complaint alleges that the assault took place in the Crownpoint Chapter of the Navajo Nation in McKinley County, N.M., on Sept. 5, 2014.
The three co-defendants subsequently were indicted on Oct. 7, 2014, in a four-count indictment. Count 1 charged Benally with assaulting the victim and causing him serious bodily injury on July 30, 2014. Count 2 charged Benally, Gabriel Largo and Joshua Largo with conspiring to assault the victim by chasing the victim, throwing rocks at him, kicking him, and striking him with a sledgehammer on Sept. 5, 2014. Counts 3 and 4 charged the three defendants with assault resulting in serious bodily injury and assault with a dangerous weapon.
During today’s proceedings, Benally pled guilty to a felony information charging him with conspiracy to commit assault resulting in bodily injury and assault with a dangerous weapon. Benally admitted that on Sept. 5, 2014, he and his co-defendants approached the victim who was selling firewood. When the victim ran away from them, Benally and his co-defendants chased the victim, threw rocks at him and knocked him down. The three men then hit and kicked the victim. In his plea agreement, Benally admitted taking a sledgehammer from his truck and striking the victim in the legs with it with the intention of injuring and harming him. Benally further admitted that at some point he handed the sledgehammer to Gabriel Largo who used it to strike the victim.
On March 5, 2015, Gabriel Largo pled guilty to a felony information charging him with assault, and admitted that on Sept. 5, 2014, he and his co-defendants assaulted the victim. When the victim ran away from them, Gabriel Largo and his co-defendants chased the victim, threw rocks at him and knocked him down. In his plea agreement, Gabriel Largo admitted obtaining a sledgehammer from Benally and using it to strike the victim.
Joshua Largo also pled guilty to a felony information on March 5, 2015, and admitted his participation in a conspiracy to assault the victim. Joshua Largo admitted joining his co-defendants in chasing the victim, throwing rocks at him and knocking him down, and hitting and kicking the victim.
At sentencing, Benally and Gabriel Largo face a maximum statutory penalty of ten years imprisonment and Joshua Largo faces a statutory maximum penalty of five years in prison. Their sentencing hearings have yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Linda Mott.
NYPD’S 2012 Officer of the Year Pleads Guilty to Conspiracy to Possess with Intent to Distribute Five Kilograms or More of CocaineRead the Press Release
A New York City Police Officer pled guilty today to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and John Brooks, Chief, Sunrise Police Department, made the announcement.
Phillip Leroy, 28, of Queens, New York, pled guilty to conspiring to possess with the intent to distribute multiple kilograms of cocaine. According to the stipulated factual basis, beginning in November 2014, an undercover officer engaged in a series of telephone conversations with co-defendant Richard Quintanilla to arrange the sale of ten kilograms of cocaine to Leroy and co-defendant Brian Espinal, in exchange for $200,000. On November 30, 2014, Leroy and Espinal drove from New York to South Florida, and on December 1, 2014, Leroy, Espinal and Quintanilla met with the undercover officer in order to facilitate the drug transaction. At the meeting location, Leroy and Espinal retrived approximately $200,000 from the back of their vehicle and provided it to the undercover officer in exchange for ten kilograms of cocaine. Leroy and Espinal then concealed the cocaine inside a hidden compartment located in the center console of their vehicle. As Leroy and Espinal prepared to leave the scene, they were apprehended. A loaded, 9 mm handgun, with one round in the chamber, was recovered underneath Leroy’s seat. The firearm was Leroy’s off-duty service revolver. Leroy admitted that he accompanied Espinal to Florida in order to purchase multiple kilograms of cocaine that they intended to transport back to New York.
Sentencing is scheduled for June 5, 2015 at 1:15 p.m. before United States District Judge William P. Dimitrouleas. At sentencing, Leroy faces a minimum mandatory sentence of ten years and a possible maximum sentence of life in prison. Leroy’s co-conspirators, Brian Espinal and Richard Quintanilla, previously pled guilty to conspiracy to possess with intent to distribute five kilograms or more of cocaine and are scheduled to be sentenced on May 15 and 18, 2014, respectively.
Mr. Ferrer commended the investigative efforts of the DEA and Sunrise Police Department. This case is being prosecuted by Assistant U.S. Attorney Corey Steinberg.
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.
Mexican Citizen Sentenced to Two Months Incarercation After Felony Conviction for Illegal Reentry into the United StatesRead the Press Release
The United States Attorney Kenyen R. Brown announces that Victor Manuel Mina-Garcia, a 32 year old, citizen of Mexico, was sentenced today to two months incarceration after his felony conviction for illegal re-entry after deportation.
On February 26, 2015, Mina-Garcia pled guilty to reentering the United States after having been deported. In summary, on December 12, 2014, Mina-Garcia was arrested in Saraland, Alabama for local theft crimes. His fingerprints indicated that he was the same Mina-Garcia who had been deported in 2010 after having been found in Texas after entering the United States illegally.
Special agents of Homeland Security/Immigration and Customs Enforcement along with Saraland, Alabama police officers investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Manhattan U.S. Attorney Announces Conviction of Colombian Narcotics Trafficker for Conspiracy to Engage in Narco-Terrorism and Other Terrorism and Narcotics ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the conviction yesterday of RAFAEL ANTONIO GARAVITO-GARCIA for conspiracy to engage in narco-terrorism, and other terrorism and narcotics charges. Following an eight-day trial before U.S. District Judge Jed S. Rakoff, the jury found GARAVITO-GARCIA guilty of all four counts with which he was charged: conspiracy to engage in narco-terrorism (Count One), conspiracy to distribute five kilograms or more of cocaine, knowing or intending that the cocaine would be imported into the United States (Count Two), conspiracy to provide material support and resources to the Fuerzas Armadas Revolucionarios de Colombia (the “FARC”) (Count Three), and conspiracy to acquire and transfer anti-aircraft missiles (Count Four). GARAVITO-GARCIA was arrested in Colombia on April 5, 2013, following a long-term investigation conducted by the Drug Enforcement Administration’s (“DEA”) Special Operations Division, and arrived in the Southern District of New York on July 22, 2014. The guilty verdict marks the first time in the District a defendant has been convicted at trial of conspiracy to engage in narco-terrorism, although in prior cases there have been pleas of guilty to the narco-terrorism conspiracy charge.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury has found, Rafael Antonio Garavito-Garcia was at the heart of a conspiracy to import cocaine into the U.S. and arm a terrorist organization with sophisticated weaponry that would be used against U.S. forces in Colombia. Thanks to the outstanding work of the DEA, another dangerous international criminal no longer poses a threat. He now awaits sentencing on these serious crimes.”
According to court documents and the evidence presented at trial:
Beginning in the summer of 2012, GARAVITO-GARCIA communicated with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of the FARC. The communications occurred by telephone, over e-mail, and in a series of audio-recorded and videotaped meetings. Following initial recorded meetings in Brazil, GARAVITO-GARCIA accompanied the CSs to Guinea Bissau, where he introduced them to two local men, whom he indicated were his associates in that country. GARAVITO-GARCIA later introduced the CSs to a Colombian man, whom GARAVITO-GARCIA identified as his drug trafficking partner.
During meetings in Guinea-Bissau beginning in June 2012, and continuing through November 2012, GARAVITO-GARCIA agreed to receive and store multi-ton shipments of FARC-owned cocaine in Guinea-Bissau. He agreed, in particular, to receive the cocaine in Guinea-Bissau and to store the cocaine there pending the eventual shipment of some of the cocaine to the United States, where it would be sold for the financial benefit of the FARC. GARAVITO-GARCIA also agreed to sell some of the cocaine himself, and to provide the FARC with some of the proceeds of his drug sales. Also during those meetings, GARAVITO-GARCIA and his associates agreed to help arrange to purchase weapons for the FARC, including surface-to-air missiles, by importing them into Guinea-Bissau for the nominal use of the Guinea-Bissau military.
For example, on June 30, 2012, during a recorded meeting in Guinea Bissau with the CSs, GARAVITO-GARCIA and his Guinea Bissau-based associates agreed to assist in the distribution of FARC cocaine by facilitating the shipment of cocaine to Guinea Bissau inside loads of military uniforms. They also agreed to establish a front company in Guinea Bissau to facilitate the export of cocaine from Guinea Bissau to the United States. On July 2, 2012, GARAVITO-GARCIA introduced the CSs to General Antonio Indjai, who was then head of the Guinea-Bissau Armed Forces, and helped win Indjai’s support for the drug and weapons deal. During another recorded meeting in Guinea Bissau the following day, GARAVITO-GARCIA met with the CSs and a Guinea Bissau military representative and discussed the benefits of using Guinea Bissau as a transshipment point for cocaine obtained in South America and destined for the United States. GARAVITO-GARCIA also discussed with the others the process for offloading the cocaine once it arrived in Guinea Bissau, and the nature of the weapons to be supplied to the FARC to combat American forces assisting the Colombian authorities, including surface-to-air missiles and AK-47 assault rifles.
Thereafter, on August 31, 2012, during a recorded meeting in Bogota, Colombia, GARAVITO-GARCIA and his Colombian partner agreed to facilitate the receipt of approximately 4,000 kilograms of cocaine from the FARC in Guinea Bissau, with the understanding that approximately 500 kilograms of that cocaine would later be sent to customers in the United States and Canada. During a recorded meeting in Guinea Bissau on November 13, 2012, GARAVITO-GARCIA explained to a Guinea Bissau military official that the FARC needed anti-aircraft missiles to be used against United States helicopters operating in Colombia. The military official then advised one of the CSs that the weapons transaction could be executed once the FARC brought money to Guinea Bissau.
GARAVITO-GARCIA was arrested in Bogota, Colombia, on April 5, 2013.
GARAVITO-GARCIA, 70, of Bogota, Colombia, was convicted of one count of conspiracy to commit narco-terrorism, which carries a mandatory minimum sentence of 20 years, and a maximum sentence of life in prison. In addition, GARAVITO-GARCIA was convicted of one count of conspiracy to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years, and a maximum sentence of life in prison; one count of conspiracy to provide material support to a designated foreign terrorist organization, namely, the FARC, which carries a maximum sentence of 15 years in prison; and one count of conspiracy to acquire and transfer anti-aircraft missiles, which carries a mandatory minimum sentence of 25 years in prison, and a maximum sentence of life in prison. The mandatory minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.
Sentencing before Judge Rakoff is scheduled for July 20, 2015, at 4:00 p.m.
In April 2013, an indictment was unsealed charging General Antonio Indjai with conspiracy to commit narco-terrorism, conspiracy to import cocaine into the United States, conspiracy to provide material support to the FARC, and conspiracy to acquire and transfer anti-aircraft missiles. Indjai is currently a charged defendant located outside the arrest jurisdiction of the United States.
The conviction was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, DEA’s Special Operations Division’s Bilateral Investigation Unit and FAST, the DEA Lisbon Country Office, the DEA Bogota Country Office, the U.S. Department of Justice’s Office of International Affairs and its National Security Division, and the U.S. State Department.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Aimee Hector, Shane Stansbury, and Ilan Graff are in charge of the prosecution.
Man Who Tied Rope Around Neck of James Meredith Statue on University of Mississippi Campus Indicted on Civil Rights ChargesRead the Press Release
Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI Jackson Office announced today that a man was charged with federal civil rights crimes for engaging in threatening conduct directed at African American students and employees at the University of Mississippi in Oxford, Mississippi. Graeme Phillip Harris was indicted by a federal grand jury on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African American students because of their race or color.
According to the charging documents, Harris, a student at the university, conspired with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag, which prominently depicts the Confederate battle flag, around the neck of the James Meredith statue on the campus of the University of Mississippi, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
“This shameful and ignorant act is an insult to all Americans and a violation of our most strongly-held values,” said Attorney General Eric Holder. “No one should ever be made to feel threatened or intimidated because of what they look like or who they are. By taking appropriate action to hold wrongdoers accountable, the Department of Justice is sending a clear message that flagrant infringements of our historic civil rights will not go unnoticed or unpunished.”
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. The investigation is ongoing.
This case is being investigated by the FBI’s Jackson, Mississippi, Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Who Tied Rope Around Neck of James Meredith Statue on University of Mississippi Campus Indicted on Civil Rights ChargesRead the Press Release
WASHINGTON – Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI Jackson Office announced today that a man was charged with federal civil rights crimes for engaging in threatening conduct directed at African American students and employees at the University of Mississippi in Oxford, Mississippi. Graeme Phillip Harris was indicted by a federal grand jury on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African American students because of their race or color.
According to the charging documents, Harris, a student at the university, conspired with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag, which prominently depicts the Confederate battle flag, around the neck of the James Meredith statue on the campus of the University of Mississippi, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
“This shameful and ignorant act is an insult to all Americans and a violation of our most strongly-held values,” said Attorney General Eric Holder. “No one should ever be made to feel threatened or intimidated because of what they look like or who they are. By taking appropriate action to hold wrongdoers accountable, the Department of Justice is sending a clear message that flagrant infringements of our historic civil rights will not go unnoticed or unpunished.”
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. The investigation is ongoing.
This case is being investigated by the FBI’s Jackson, Mississippi, Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
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Man Sentenced to Prison for Drug and Gun ChargesRead the Press Release
Andre Hutson, 32, of St. Louis, Missouri, was sentenced today to a total of 60 months in prison on a three-count indictment charging him with Distribution of Cocaine, Distribution of Cocaine Base and Felon in Possession of a Firearm, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Hutson will be on federal supervised release for 4 years. He was also ordered to pay a fine of $450, as well as a $300 special assessment. All firearms and ammunition in Hutson’s possession will be forfeited.
This case was investigated by Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Lubbock Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 44 year-old Lubbock, Texas, resident, Eduardo Cantillo, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea in December 2014 to one count of possession of prepubescent child pornography, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Cantillo used a computer at his residence to search the Internet for images and videos of child pornography. In the course of those searches, Cantillo located, downloaded and viewed numerous images and videos constituting child pornography. Cantillo also saved some of the material onto a thumb drive. Some of the images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Long Time Accounting Technician for Hotel at JBLM Sentenced to Prison for Embezzling more than $250,000Read the Press Release
A Tacoma woman who worked for more than 27 years at a military hotel on Joint Base Lewis McChord was sentenced today in U.S. District Court in Tacoma to two years in prison for theft of more than $250,000 in government funds, announced Acting United States Attorney Annette L. Hayes. GAIL JEANETTE MOODY, 52, was hired in 1985 as a desk clerk at the Rainier Inn on what was then Fort Lewis. She worked her way up over the years to an accounting position where she reconciled the cash receipts at the hotel along with other payments, and made deposits into the Armed Forces Bank. Records from the hotel reveal that between September of 2010 and October of 2012, MOODY stole more than $250,000 in cash receipts. At sentencing U.S. District Judge Ronald B. Leighton said MOODY “violated a position of trust . . . . it’s a lot of money. It’s a lot of deception.”
The Rainier Inn was operated by the Department of Defense (DOD) to provide low cost lodging to active duty military personnel, persons under official military orders from the United States Department of Defense, retired military personnel, and their families. Profits earned by the hotel were funneled back into the facilities so DOD could provide the benefit of low cost lodging. According to records filed in the case, MOODY was a trusted employee with access to the locked security container where desk clerks put receipts at the end of their shifts. In August 2012 when MOODY took an extended leave, the staff discovered significant discrepancies regarding the cash receipts and what had been deposited into the hotel bank accounts. A forensic review revealed MOODY had altered records to disguise the fact that she was taking the cash for her own use. MOODY abruptly quit her job when confronted about the discrepancies.
After completing her prison sentence, MOODY is required to get treatment for a gambling addiction pursuant to the terms of her three years supervised release.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Erin Wilson.
Lockheed Martin Agrees to Pay $2 Million to Settle Allegations That It Overbilled the GovernmentRead the Press Release
ATLANTA – Lockheed Martin Corporation (“Lockheed”) has agreed to pay $2 million to settle allegations that it overbilled the government for fuel it used while manufacturing C-130 aircraft for the United States Air Force.
“The resources of the United States Government are limited and must be protected. We expect companies doing business with the United States to be circumspect and forthright in billing the United States and using its resources,” said Acting U.S. Attorney John Horn. “Here, in causing the government to pay for fuel that was the company’s financial responsibility, Lockheed failed to live up to the terms of the contracts and caused financial injury to the government. The settlement reflects our resolve to ensure that companies that overbill or overcharge the Government will be identified and held responsible for their actions.”
“This settlement illustrates the diligent work exhibited by a joint Air Force Office of Special Investigations and DCIS investigative team, that sifted through and unwound dense and complicated data to reveal the overcharges,” said Lloyd Clark, Assistant Special Agent in Charge, AFOSI Procurement Fraud Detachment Five.
“This settlement is the culmination of the tireless investigative efforts of DCIS agents working closely with our Air Force OSI partners,” said John F. Khin, Special Agent in Charge, Southeast Field Office. Combatting waste and abuse in Department of Defense contracts to protect the integrity of our national defense programs, remains a top priority for the Defense Criminal Investigative Service.”
Between 2006 and 2013, Lockheed manufactured C-130s for the U.S. Air Force at its Marietta facility. Pursuant to the underlying contracts, the Government provided Lockheed with up to 22,000 gallons of fuel (characterized as government furnished property or “GFP”) per aircraft, which could be used for the engine runs, fuel operations and test flights necessary to manufacture C-130s. Once Lockheed exhausted its 22,000 gallon allotment on a particular aircraft, Lockheed, not the Government, was financially responsible for any additional fuel.
However, the Government’s investigation indicated that between 2006 and 2013, Lockheed routinely used fuel in excess of the 22,000 gallons, but failed to reimburse the government for the excess. Additionally, the evidence suggests that Lockheed used the fuel on other unrelated projects, where the government was either not a party, or had not agreed to furnish fuel.
This matter was investigated by the United States Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and Defense Contract Audit Agency.
Assistant United States Attorney Paris A. Wynn handled this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lincoln Man Sentenced in Drug and Money Laundering ConspiraciesRead the Press Release
United States Attorney Deborah R. Gilg announced that John Ways, Jr., age 48, of Lincoln, Nebraska, was sentenced to 15 years in prison by Senior United States District Court Judge Joseph F. Bataillon. In August of 2014 Ways was found guilty by a jury of conspiracy to sell drug paraphernalia, conspiracy to distribute controlled substances, conspiracy to commit money laundering, and of being a felon in possession of ammunition. He ran Exotica stores in Omaha and South Sioux City, Nebraska, and Council Bluffs, Iowa, through which he sold the controlled substances and drug paraphernalia. He will also forfeit to the United States approximately $1,100,000 in cash as drug proceeds seized from multiple bank accounts, two vehicles he purchased with drug proceeds, various computers and equipment, ammunition, and four gun safes. He was also ordered to serve three years of supervised release following his release from incarceration.
United States Attorney Deborah R. Gilg commented: “It does not matter whether drug dealers sell illegal drugs on the street, through the internet or, like this defendant, under the guise of a legitimate business. It is still drug dealing. With the help of our law enforcement partners such as the ATF, we will investigate and prosecute drug dealers no matter how they ply their trade. We will also seize and forfeit their illegitimate gains.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Omaha Police Department, Lincoln Police Department, and Nebraska State Patrol.
Iowa City Man Sentenced for Heroin Trafficking OffenseRead the Press Release
DAVENPORT, IA – On March 26, 2015, Antoine Marquet Clemons, age 38, of Iowa City, Iowa, was sentenced by Senior United States District Judge James E. Gritzner for conspiracy to distribute heroin announced United States Attorney Nicholas A. Klinefeldt. Clemons was sentenced to 151 months’ imprisonment, ordered to serve three years’ supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
In November of 2013, law enforcement utilized an undercover agent to make two purchases of approximately half-gram amounts of heroin directly from a subject of interest. On both occasions, immediately before the undercover agent received heroin from the subject, police observed Clemons meet and sell heroin to the subject. Approximately one week after the second transaction, law enforcement executed search warrants for two residences associated with Clemons. At one residence agents located, among other things, 26.5 grams of heroin and indicia of Clemons’ residency. At the other residence, police located $2,648 in U.S. currency (of which $200 was pre-serialized "buy funds" that the undercover agent provided to the other subject moments before the second transaction), digital scales, and indicia for Clemons.
Clemons pleaded guilty on December 19, 2014, to the crime of conspiracy to distribute heroin. Prior to the instant conviction, Clemons’ had seven prior felony drug convictions.
This case was investigated by the Johnson County, Iowa, Drug Task Force, the Iowa Department of Public Safety Division of Narcotics Enforcement, the Iowa City, Iowa, Police Department, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Inmate Sentenced to over 17 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced inmate Russell Carrington, a/k/ Rutt, age 34, of Baltimore, and a leader in the Black Guerilla Family (BGF) gang, today to 210 months in prison, followed by six years of supervised release, for a racketeering and drug conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Carrington was convicted on February 5, 2015, after a lengthy trial.
Earlier this week, Judge Motz sentenced former correctional officers Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown, Maryland; Milshenna Peoples, age 29, of Baltimore; and Javonne Lunkin, age 28, of Baltimore, each to a year and a day in prison, followed by three years of supervised release. Owens, Peoples and Lunkin pleaded guilty to a racketeering conspiracy arising from their participation in the smuggling of drugs and contraband for members of BGF inside BCDC.
In a related proceeding, U.S. District Judge Ellen L. Hollander sentenced Tyesha Mayo, age 31, of Baltimore, on March 26, 2015, to 15 months in prison, followed by three years of supervised release. Mayo also pleaded guilty to the racketeering conspiracy, admitting that she supplied drugs to the COs which the COs then smuggled into the jail.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn J. Mosby.
This case developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts, or a share of the profits.
Carrington was a BGF leader incarcerated in BCDC who sold Percocet pills which COs smuggled into the jail for him. Carrington had a sexual relationship with a correctional officer, who helped Carrington finance his drug operations by keeping Green Dot cards for him. In 2012, Carrington introduced Tavon White and a correctional officer to a source of supply for Percocet pills. He also attempted to recruit other correctional officers to smuggle contraband into BCDC. Former prison employee Michelle McNair also helped Carrington with his drug operations, but quit after Carrington failed to pay her.
Former correctional officers Owens, Peoples and Lunkin admitted that while they worked at BCDC, they helped smuggle contraband into the jail, including tobacco, marijuana, and prescription drugs, on behalf of and for further distribution by BGF members. The defendants knew that by smuggling contraband into BCDC, they furthered the racketeering enterprise of BGF.
Owens and Peoples entered into personal and sexual relationships with inmates who were BGF gang members. For example, Owens admitted that she had a personal and sexual relationship with BGF gang leader Tavon White while he was an inmate at BCDC and has two children by White. Owens had “Tavon” tattooed on her neck. Peoples admitted that she also had personal and sexual relationships with inmates who were BGF members. Owens, Peoples and Lunkin were aware of other COs who were involved in smuggling and who had sexual relationships with inmates.
Outside the prison, Owens frequently obtained contraband from Tyesha Mayo and other co-defendants. Mayo obtained Percocet, Xanax, Suboxone and marijuana from co-conspirators for distribution to COs. Tavon White funded the drug purchases and paid Mayo for her services by means of Green Dot money transfers and by cash payments provided by co-conspirators outside the prison.
Inmates and BGF members Tavon White, a/k/a Bulldog and Tay, age 37, and Jamar Anderson, age 24, both of Baltimore, were sentenced to 12 years in prison and 121 months in prison, respectively. Michelle McNair, age 24, of Baltimore, a former contract employee with the Department of Public Safety and Correctional Services, was convicted at trial for the racketeering and drug conspiracies, as well as a money laundering conspiracy. McNair is awaiting sentencing.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Harrisburg Man Charged with Bank RobberyRead the Press Release
The United States Attorneys Office for the Middle District of Pennsylvania announced that a Criminal Information was filed today in U.S. District Court in Harrisburg charging Dylan Blum, age 22, of Harrisburg, with the December 9, 2014 robbery of the Mid Penn Bank, North Front Street, Harrisburg.
According to U.S. Attorney Peter Smith, Blum passed a threatening note to a teller at the bank and made off with $1,358. Blum later turned himself in to the Harrisburg Police Department on January 3, 2015. The government also filed a plea agreement with the defendant which is subject to approval by the court.
The matter was investigated by the Harrisburg Police Department and the Federal Bureau of Investigation. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $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.
Haitian National Sentenced for Disrupting Transatlantic FlightRead the Press Release
BOSTON – A Haitian national pleaded guilty and was sentenced today in U.S. District Court in Boston for disrupting a transatlantic American Airlines flight.
Edmond Alexandre, 60, a Haitian national residing in Paris, was sentenced today by U.S. District Court Judge Denise J. Casper to one year of supervised release, a fine of $1,000 and restitution of $6,303 to American Airlines. Alexandre pleaded guilty to interference with flight crew members.
On Aug. 27, 2014, at 7:00pm, American Airlines Flight 62 departed Miami, Fla. en route to Paris, France. At 9:00pm, Alexandre, a passenger on the plane, became disruptive and started arguing with other passengers. A flight crew member intervened, and attempted to calm Alexandre down. Unable to do so, the flight crew member walked away towards the back of the plane at which time Alexandre raised his voice again, chased the crew member down the aisle towards the back of the plane, and grabbed the crew member’s arm. Immediately, federal air marshals, who were on the plane, identified themselves and subdued Alexandre. Alexandre was taken into custody, and the captain of the plane diverted the flight to Boston’s Logan Airport. Alexandre was removed from the plane and taken into custody. Four hours later, the flight received clearance and departed for Paris.
United States Attorney Carmen M. Ortiz; Dwain G. Troutt, Special Agent in Charge of the U.S. Transportation Security Administration, Office of Law Enforcement, Federal Air Marshal Service, Boston Field Office; Bob Allison, Federal Security Director for the Transportation Security Administration for the District of Massachusetts; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Timothy P. Allen, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant United States Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Granite City Man Sentenced for Possession of Child PornographyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 27, 2015, Steven W. Beckman, 64, Granite City, IL, was sentenced for Possession of Visual Depictions of Prepubescent Minors Engaged in Sexually Explicit Conduct. Beckman, who had been convicted in the Southern District of Illinois in 2006 for Receiving Child Pornography through the U.S. Mail and Possession of Child Pornography, received an increased penalty of a mandatory minimum sentence of 120 months in federal prison because of these prior convictions. Beckman was also sentenced to 3 years’ supervised released, fined $500, and ordered to pay a $100 special assessment. In addition, Beckman’s sentence must run consecutive to the sentence he received for violating his supervised release for the 2006 convictions listed above. He will also be required to register as a sex offender. Beckman has been held without bond since his arraignment on July 22, 2014.
"This kind of crime is not just a pervert looking at dirty pictures." noted United States Attorney Wigginton. "The children depicted are horribly abused and will be haunted for life. Hopefully, sentences like this one will keep offenders from robbing these children of their innocence."
The investigation began on March 11th, 2014, when a detective with the Missouri Internet Crimes Against Children Task Force ("ICAC") contacted both a United States Probation Officer who was supervising Beckman and Special Federal Officer ("SFO") David Vucich, a member of the FBI’s Springfield Child Exploitation Task Force (SCETF). Investigation revealed that Beckman uploaded an image of child pornography to his Facebook page around November 29, 2013, approximately seven days after being released from imprisonment, and placed on supervised release. That same day, United States Probation Officers searched Beckman’s home and seized, among other items, approximately thirty-three compact disks ("CD-Rs") that were found in various areas of the house. When asked whether he possessed child pornography on any of the electronic media seized from his home, Beckman stated that there was child pornography mixed into the CD-Rs as well as on some other electronic media taken from his home.
SFO Vucich obtained a federal search warrant for all of the electronic media seized from Beckman’s home so that the items could be forensically analyzed. SFO Vucich discovered that twenty-seven (27) CD-Rs recovered contained 187 images and 2 video files of minors engaged in sexually explicit behavior, with the majority of the images depicting prepubescent males.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Missouri Internet Crimes Against Children Task Force, the United States Probation Office and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Galt Man Sentenced to over 17 Years in Prison for Production of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Tyler Jordan, 32, of Galt, was sentenced today by United States District Judge Garland E. Burrell Jr. to 17 and a half years in prison and a life-term of supervised release for production of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Jordan offered files of child pornography for download on a file-trading website. Law enforcement downloaded 60 child pornography files from him. During a subsequent search of Jordan’s computer, law enforcement found over 20,000 images and videos that showed minors engaged in sexually explicit conduct. Jordan admitted to inappropriately touching two children, both of whom were under the age of 12, and taking sexually explicit pictures of them.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Justin Lee prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.Four Veterinarians Charged with Conspiracy to Administer Drugs to Race Horses Unlawfully at Penn National Race TrackRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that criminal charges were filed late yesterday in U.S. District Court in Harrisburg against four veterinarians involved in treating thoroughbred race horses at Penn National Race Track, in Grantville, Pennsylvania.
According to U.S. Attorney Peter Smith, Dr. Kevin Brophy, age 60, Florida, Dr. Fernando Motta, age 44, Lancaster, Pennsylvania, Dr. Christopher Korte, age 43, Pueblo, Colorado, and Dr. Renee Nodine, age 52, Annville, are each charged in separate Criminal Informations.
Each defendant is charged with allegedly administering drugs to thoroughbred race horses within 24 hours of when the horse was entered to race. This conduct was in violation of the state criminal law prohibiting the rigging of publicly exhibited contests; the administering of the drugs was not pursuant to a valid prescription and constituted misbranding of the prescription animal drugs in violation of federal law. The alleged activity took place at various times beginning as early as 1986 and continuing up to August 2014.
The Informations also allege that the defendants conspired with horse trainers, whose identities are “known to the United States”, to administer the drugs in violation of the laws, rules and regulations governing the conduct of thoroughbred racing.
The government also filed plea agreements with each of the four veterinarians in which they agreed to plead guilty and cooperate with the United States in the continuing investigation. The plea agreements are subject to the approval of the court.
According to the charges, trainers allegedly placed orders for drugs and the defendants, after administering the drugs, backdated the billing records to avoid detection. The defendants allegedly submitted false veterinarian treatment reports to the State Horse Racing Commission, omitting from those reports any reference to the drugs administered to horses at the track on race day. The filing of these reports and the backdating of billing records were, allegedly, to further the conspiracy by concealing the illegal activity. These acts had the potential to defraud other owners and trainers whose horses were entered in the same race and defrauded the betting public as well.
The matter is being investigated by the Harrisburg Office of the Federal Bureau of Investigation, the Pennsylvania State Horse Racing Commission, U.S. Food and Drug Administration’s Office of Criminal Investigations, and the Pennsylvania State Police. Assistant United States Attorney William A. Behe is prosecuting the cases for the United States.
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.
The maximum penalty in these cases under the federal statute is 2 years imprisonment, a term of supervised release following imprisonment, and a $200,000 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.
Former Tinley Park Man Charged with Bankruptcy Fraud for Concealing Seven Luxury Cars Worth $294,000Read the Press Release
CHICAGO — A former Tinley Park resident was charged by information today with concealing his ownership of seven luxury cars during his 2012 bankruptcy proceeding. The charges allege that JOSEPH W. CAMPBELL, 49, concealed cars having a total value of approximately $294,000, including a Lamborghini worth $122,000, a 1966 Chevrolet Corvette, a 1971 Chevrolet Corvette, a 1978 Pontiac Firebird Trans Am, a 1981 DeLorean, a 1989 Pontiac Firebird Trans Am, and a 1997 Dodge Viper. Campbell will be arraigned at a later date in U.S. District Court.
According to the information filed in court, Campbell concealed his ownership of the luxury cars from his creditors, the bankruptcy court, and the trustee in his bankruptcy case by failing to disclose them in his bankruptcy petition. He is also charged with lying under oath about his ownership of the cars in testimony he provided during a creditors’ meeting, a discovery deposition, and a bankruptcy court hearing.
The crimes of bankruptcy fraud and making false statements during a bankruptcy proceeding each carry a maximum penalty of 5 years in prison and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Patrick Layng, United States Trustee for the Northern District of Illinois.
The government is being represented by Assistant U.S. Attorney Jacqueline Stern.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Former Plan Trustee Indicted for $1.1 Million Embezzlement from A Bankruptcy Estate and Tax EvasionRead the Press Release
DAYTON – A federal grand jury has charged Timothy Hock, 50, currently of Chicago, Illinois, with embezzlement from a bankruptcy state and tax evasion in an indictment returned in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the indictment returned yesterday.
According to the indictment, Hock, who was a Certified Public Accountant, was the controller for Domin-8 Enterprise Solutions, Inc. (Domin-8) when Domin-8 (and other related entities) filed for Chapter 11 bankruptcy in September 2009 in the Southern District of Ohio. Domin-8 was a Mason, Ohio-based company that provided software to companies that managed rental properties.
During the bankruptcy proceedings, Hock was initially appointed as the “Responsible Person” for Domin-8 and later appointed the Plan Trustee. As the Plan Trustee, Hock was responsible for handling the company’s liquidation and transfer of assets, completing claims reviews and making appropriate distributions to various creditors of the company.
Hock allegedly used his position to embezzle money belonging to the bankruptcy estate of Domin-8. Specifically, the indictment alleges that between approximately February 2010 and May 2013, Hock embezzled approximately $1.1 million.
Furthermore, the indictment alleges that Hock committed tax evasion on his 2011 federal income tax return by claiming that his taxable income for 2011 was $0.00, when in actuality his taxable income for the year was $433,625.
Hock was charged with one count of embezzling property that belonged to a bankruptcy estate, in violation of 18 U.S.C. § 153, and one count of tax evasion, in violation of 26 U.S.C. § 7201.
Both crimes are punishable by up to 5 years imprisonment.
“Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts those creditors who can ill-afford to take a loss on legitimate debts,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Embezzling funds belonging to a bankruptcy estate and not paying taxes is a gross violation of civic duty and deserves the punishment handed down today.”
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Alex R. Sistla, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Madison Police Officer Indicted on Use of Unreasonable Force Against a Man he was QuestioningRead the Press Release
BIRMINGHAM – Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton today announced the indictment of a Madison police officer for using unreasonable force against a man he was attempting to question in February.
The one-count felony indictment filed in U.S. District Court charges that ERIC SLOAN PARKER, 26, of Toney, while acting in his official capacity as a police officer on Feb. 6 in Limestone County, injured a man by slamming him to the ground. The indictment identifies the victim only by initials, "S.P."
"Police officers are sworn to uphold the law and protect the public. The public must be able to trust the police," Vance said. "Law enforcement officers who violate their oath to protect and use excessive force must be brought to justice."
According to the indictment, Parker's actions deprived the victim of his right under the U.S. Constitution to be secure from unreasonable searches and seizures, which includes the right to be free from unreasonable force by someone acting under color of law.
An indictment is only an allegation and does not constitute evidence of guilt on the part of the defendant.
The FBI investigated the case. First Assistant U.S. Attorney Robert O. Posey, Assistant U.S. Attorney Russell E. Penfield and DOJ Trial Attorney Henry C. Leventis of the Civil Rights Division and are prosecuting the case.
Former Madison Police Officer Indicted on Use of Unreasonable Force Against a Man He Was QuestioningRead the Press Release
A federal grand jury late Thursday indicted a city of Madison, Alabama, police officer for using unreasonable force against a man he was attempting to question in February 2015, announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Joyce White Vance of the Northern District of Alabama and Special Agent in Charge Roger C. Stanton of the FBI.
The one-count indictment filed in U.S. District Court charges that Eric Sloan Parker, 26, while acting in his official capacity as a police officer on Feb. 6 in Limestone County, injured a man by slamming him to the ground. The indictment identifies the victim only by initials, "S.P."
Parker's actions deprived the man in Madison of his right under the U.S. Constitution to be secure from unreasonable seizures, which includes the right to be free from unreasonable force by someone acting under color of law, according to the indictment. An indictment is only an allegation and does not constitute evidence of guilt on the part of the defendant.
The FBI investigated the case. Trial Attorney Henry C. Leventis of the Civil Rights Division and Assistant U.S. Attorneys Robert O. Posey and Russell E. Penfield of the Northern District of Alabama are prosecuting the case.
Former Las Vegas Casino Company Employee Sentenced to PrisonRead the Press Release
A former employee of a Las Vegas casino company was sentenced yesterday to serve 12 months and one day in federal prison, three years of supervised release and ordered to pay $351,039 in restitution to the United States for tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
According to the plea agreement and other court documents, from about 2005 to 2008, Anthony M. Cirulli was employed as a production manager in the corporate advertising department of Station Casinos, a company that owns several casinos in the Las Vegas area. Part of his job involved reviewing bids for printing contracts and determining which printing companies would be awarded the contracts. During the course of his job, Cirulli began soliciting side payments from printing companies. He instructed the companies to pay him a percentage of the printing contract to guarantee that the companies would continue to be awarded work. Over the course of four years, Cirulli received side payments of more than $2.1 million from these arrangements. He concealed the payments in two different nominee bank accounts in the names of sham business entities.
“The Tax Division is committed to holding individuals accountable for their criminal conduct,” said Acting Assistant Attorney General Ciraolo. “This prosecution and the sentence imposed on Mr. Cirulli sends a clear message that those individuals evading their federal tax obligations do so at their own peril.”
On Sept. 9, 2014, Cirulli pleaded guilty to one count of tax evasion for concealing the payments that he received from printing companies and willfully filing a false federal income tax return for 2007 that omitted the funds.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher Maietta of the Tax Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Former Independence, Missouri, Police Officer Indicted on Federal Civil Rights and Obstruction of Justice ChargesRead the Press Release
Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Tammy Dickinson of the Western District of Missouri announced that a federal grand jury has returned a four-count indictment against former Independence, Missouri, police officer Timothy Runnels for violating the constitutional rights of a minor who was in his custody and obstructing the subsequent investigation into the incident.
According to the indictment, Runnels continuously deployed a Taser against the minor while the minor was on the ground and not posing a threat to Runnels or others. The indictment also charges that Runnels deliberately dropped the minor headfirst onto the ground while the minor was restrained and not posing a threat to Runnels or others. The indictment alleges that the minor sustained bodily injury as a result of Runnels’ actions and, with respect to the first count, that the offense involved the use of a dangerous weapon. The indictment also charges Runnels with two counts of obstruction of justice for filing a false police report concerning the incident and for making a false statement to Independence Police Department investigators regarding the amount of force that he used against the minor.
If convicted, Runnels faces a statutory maximum sentence of 10 years in prison and a fine of $250,000 for each of two charged counts of civil rights violations, and a statutory maximum sentence of 20 years in prison and a fine of $250,000 for one count of obstruction of justice by submitting a false police report and one count of providing misleading information to Independence Police Department investigators.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Kansas City Division and is being prosecuted by Trial Attorney Shan Patel of the Civil Rights Division and First Assistant U.S. Attorney David Ketchmark of the Western District of Missouri.
Former Greece Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that John Casey, 46, formerly of Greece, NY, pleaded guilty to possession of child pornography before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that in March 2014, Federal Agents from Homeland Security Investigations working online in an undercover capacity observed the defendant sharing images of child pornography on the internet. At that time, they were able to download several sexually explicit images of children being raped from Casey’s computer. Agents identified the defendant’s physical location and then obtained and executed a federal search warrant for his Greece residence. During the search, they seized multiple digital items which were forensically analyzed. Child pornography images and movies were recovered from two laptops which were also linked to the files shared online. Some of the images depicted children as young as infants being sexually abused.
The plea is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Patrick Phelan and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 26, 2015 at 3:00 p.m. before Judge Wolford.
Former Florida Realtor Indicted on Conspiracy and Bank Fraud ChargesRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Joseph Pasquale (38, Worcester, MA) with one count of mortgage fraud conspiracy involving bank fraud and two counts of bank fraud. He faces a maximum penalty of 30 years’ imprisonment for each count. The indictment also notifies Pasquale that the United States is seeking a money judgment for the proceeds of the mortgage fraud conspiracy.
According to the indictment and court proceedings, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County. The new owners of The Arbors then engaged in a plan to convert the complex from rental apartment units to condominium units.
Pasquale’s co-conspirator, Brenden Bolger, aided the developers in the sale of numerous condominium units at The Arbors through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase units, Bolger created an addendum to the purchase contract that offered buyers various incentives such as rental supplements, money to defray maintenance costs, and a design credit to upgrade the unit’s amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid a kickback for the amount of the design credit to the buyer from Capital Management’s bank account. In this manner, Bolger, Pasquale, and other co-conspirators failed to disclose to buyers’ mortgage lenders material facts about the financing of the sale of The Arbors condominium units.
Pasquale’s alleged role in the conspiracy consisted of marketing The Arbors units. He did so by promising buyers closing cash and undisclosed incentives, providing closing cash to borrowers who purchased units at The Arbors, facilitating the payment of kickbacks to his clients via Capital Management Guarantee, and facilitating the submission of false loan applications to FDIC insured financial institutions.
Bolger previously pleaded guilty for his role in this scheme. He is scheduled to be sentenced on June 22, 2015.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
Former Centreville Firefighter Sentenced on Firearm ChargeRead the Press Release
A former firefighter for the Church Road Fire Protection District in Centreville, Illinois, Derrick N. Henry, 45, of Alorton, Illinois, was sentenced on March 26, 2015, in United States District Court in East St. Louis to 37 months in federal prison, to be followed by 3 years of supervised release, a $500 fine, and a $100 special assessment, for being a felon in possession of a firearm, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Henry pled guilty to possessing firearms while he was serving a state sentence of intensive probation resulting from a domestic violence conviction. Court documents revealed that on March 7, 2014, at approximately 7:00 AM, the St. Clair County Probation Department conducted a compliance check of high-risk probationers who were serving terms of intensive probation for state-court criminal violations. A St. Clair County probation officer was assigned to go to Henry’s home to verify whether Henry was complying with the terms of his intensive probation. The probation officer conducted a search of the residence and found five long guns (rifles and shotguns) in plain view leaning against the corner of the wall immediately adjacent to the door of a locked bedroom. Four of the weapons were unloaded, but one of the .22 caliber rifles was loaded with a magazine and had a live round in the chamber. Additional ammunition was found inside of the home. While Henry denied knowing that the guns were in the locked room, the key to the door was found inside of Henry’s pants pocket.
The investigation was conducted by a probation compliance task force including agents from the Illinois State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Clair County State’s Attorney, Marissa Police Department, Southwestern Illinois College Police Department, Southern Illinois University at Edwardsville Police Department, Millstadt Police Department, and the St. Clair County Probation Department. The case is being prosecuted by Assistant United States Attorneys Steven D. Weinhoeft and Michael Hallock.
Florida Man Sentenced for Mortgage Relief ScamRead the Press Release
Earlier today, Jonathan L. Herbert, 36, of Lighthouse Point, Florida, was sentenced to 140 months in federal prison for wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced.
In commenting on today’s sentence, United States Attorney Wigginton stated: "The stiff sentence imposed by Judge Herndon is entirely appropriate. The fraud scheme conducted by this defendant was particularly heinous. Herbert stole money by taking advantage of our citizens’ trust in government. He labeled his fraudulent companies as ‘federal’ or ‘government’ related. He took money that his victims thought was being paid toward their mortgages. This crime caused severe financial hardship for the victims, and even caused a few of them to lose their homes. We hope that the long prison sentence Herbert received will cause other criminals to think twice before engaging in similar fraud schemes. As always, whether a person steals money by pointing a gun or does so with a pen and a crafty ruse, my office will continue to protect the good people of Southern Illinois and elsewhere."
"There is nothing more reprehensible than a con man viewing the financial crisis and a TARP foreclosure prevention scheme as an opportunity." said Christy Romero, Special Inspector General for TARP (SIGTARP). "TARP’s HAMP program was designed to help struggling homeowners avoid foreclosure, not to provide a list of victims. Herbert outright swindled 247 struggling homeowners out of more than $470,000 with false claims that he was affiliated with federal housing aid programs, including HAMP, and could modify homeowners’ mortgage loans in order to make their payments more affordable. Instead, Herbert set-up businesses with names including ‘Federal’ with sham mailing addresses located in Washington, D.C. (addresses which were really just UPS mailboxes); instructed homeowners to mail their ‘modified’ mortgage payments to him at the addresses; re-routed homeowners’ payments to himself in Florida; and pocketed the proceeds himself for personal expenses and to keep the scam operating. SIGTARP and our law enforcement partners will bring swift justice to perpetrators of criminal schemes that fraudulently exploit TARP’s housing programs."
In addition to the 140 month prison sentence, United States District Judge David R. Herndon also ordered Herbert to serve 5 years of supervised release following his release from prison, and ordered Herbert to pay restitution to the victims of his crime. Judge Herndon gave the parties additional time to calculate the exact amount owed in order that all losses would be the subjects of restitution.
Herbert conducted his fraud scheme from a strip mall office located in Fort Lauderdale, Florida. As part of his guilty plea, Herbert admitted that he usually contacted his victims through unsolicited telephone calls, introducing himself as a "federal loan officer" with the "Federal Debt Commission," "Federal Mortgage Marketplace," or "Federal Assistance Program." Herbert used these names and titles in order to deceive the victims into believing that his fraudulent program was either operated, or approved, by the federal government. Herbert told his victims that they qualified for a loan modification because of financial hardship or some type of illegal conduct engaged in by their lenders.
After the initial phone calls, Herbert mailed letters to the victims who expressed interest in his bogus loan modification programs. These letters congratulated the victims on their acceptance into the program, quoted a new monthly mortgage payment rate, and directed the victims to begin sending their monthly mortgage payments to one of two addresses located in Washington, D.C. The Washington, D.C., addresses were for mailboxes which Herbert had rented at UPS Stores. Pursuant to forwarding orders Herbert put in place with these UPS stores, the victims’ payments were forwarded to Herbert in Florida.
Herbert admitted that he did not apply any of the money he received from the victims to reduce their home loan debt. Instead, he used the money he received from the victims for his own personal expenses and to continue his fraudulent operation. In the plea agreement, Herbert acknowledged that the total of the losses sustained by the victims as a result of his fraud scheme is approximately $750,000.
One of Herbert’s victims resides in Troy, Illinois. The charges state that during a telephone call in September of 2013, Herbert falsely told this victim that the Federal Debt Commission had selected her to benefit from a new federal mortgage assistance program instituted by President Obama.
In July of last year, the Chicago Office of the Federal Trade Commission (FTC) took legal action to shut down Herbert’s business. The FTC has cooperated with, and provided substantial assistance to, the United States Attorney’s Office, the United States Postal Inspection Service (USPIS), and the Treasury Department’s Special Inspector for the Troubled Asset Relief Program (SIGTARP), who all coordinated in the investigation of this case.
This case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Felon Sent to Prison for Selling Firearms to a Convicted FelonRead the Press Release
Donnie A. Sherrell, 22, of Granite City, Illinois, was sentenced today in the U.S. District Court for the Southern District of Illinois to 70 months in prison and 3 years of supervised release on two counts of Sale of a Weapon to a Convicted Felon and two counts of Possession of a Weapon by a Felon. Evidence showed that from May until August of 2014, Sherrell sold a total of four weapons to a convicted felon, including a 9mm semiautomatic handgun, a .38 caliber revolver, and two rifles. Sherrell, himself, is a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Federal Court Sentences Defendant on Mail Fraud ChargeRead the Press Release
DAVENPORT, IA - On March 27, 2015, Johna Loreen Vandemore, also known as Johna Volger and Johna Ratliff, age 34, was sentenced by United States District Court Judge Stephanie M. Rose to 18 months in prison, after pleading guilty to one count of mail fraud, announced United States Attorney Nicholas A. Klinefeldt. Vandemore was also ordered to serve three years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund. Vandemore was also ordered to pay $95,850 in restitution to the victim.
In 2007, Vandemore was involved in a short-term relationship with the victim, after which she informed him she was pregnant. The victim agreed to provide financial support, however, Vandemore demanded a lump sum or she would take him to court for more. There was no child. The victim agreed to make monthly payments of $1,000 plus all child related monthly expenses. The victim requested a copy of a birth certificate, and Vandemore provided a falsified birth certificate from a non-existent hospital. In order to obtain additional funds from the victim, Vandemore provided a false medical bill purporting to reflect past treatment of the fictitious child. When the victim requested pictures, Vandemore solicited pictures of a family member’s daughter, and forwarded these pictures to the victim misrepresenting them to be her child with the victim. Although Vandemore lived in Maquoketa, she directed the victim to make payments to a post office box in Bettendorf, Iowa. When her husband discovered and questioned her receipt of monthly $1,000 checks, she told him the payments were residual compensation from prior sales made with Herbalife. From August 5, 2007 to October 1, 2013, Vandemore received over 90 separate payments from the victim for a total of $95,850.00.
This case was investigated by the Federal Bureau of Investigations and the Bettendorf, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Fake Movers Who Allegedly Stole Household Goods in Multiple Locations Are ArraignedRead the Press Release
ATLANTA - Tasheen Raphael Pickett and Shedrick Giles have been arraigned on federal charges arising from the theft of personal property that was entrusted to them as they held themselves out to be professional movers. Pickett and Giles were indicted by a federal grand jury on March 10, 2015.
“While acting as a professional movers, the defendants allegedly took innocent victims’ belongings—clothes, furniture, and other personal items—and simply never returned them,” said Acting U.S. Attorney John Horn.
“This action demonstrates the Department of Transportation’s commitment to combat those household goods movers who take advantage of customers by stealing their belongings or holding their goods hostage,” said Marlies T. Gonzalez, Department of Transportation Office of Inspector General Special Agent-in-Charge. “Working with our law enforcement colleagues across government and Federal Motor Carrier Safety Administration (FMCSA) officials, we will continue our efforts to ensure that movers adhere to Federal laws and regulations designed to protect the public.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Since November 2013, Pickett and Giles traveled the United States, acting as professional movers while picking up innocent victims’ personal property shipments and promising to deliver those shipments to agreed-upon locations. Instead of delivering the property, however, Pickett and Giles would allegedly take control of the property, keeping some of it for themselves.
After a criminal complaint was filed against Pickett in Amarillo, Texas, in July 2014, the Department of Transportation Office of Inspector General (DOT-OIG) was notified. In September 2014, DOT-OIG agents searched storage units at a Public Storage Facility in East Point, Georgia. There it was discovered that the units were stacked full with approximately 14 individuals’ personal property—property that had allegedly been taken by Pickett months prior and never delivered.
Other property allegedly taken by Giles was discovered in a second Public Storage Facility in Decatur, Georgia, in January 2015. Although both Pickett and Giles have worked as movers for the last several years, neither is authorized to transport household goods by the Federal Motor Carrier Safety Administration, the federal agency tasked with providing oversight over household goods movers.
Tasheen Raphael Pickett, 40, of College Park, Georgia, and Shedrick Giles, 43, of Brentwood, New York, were arraigned before Chief U.S. Magistrate Judge Janet F. King. Pickett was arraigned on March 11, 2015, and Giles was arraigned on March 18, 2015. They are charged with conspiracy, transportation of stolen property, and possession of stolen property.Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Transportation – Office of Inspector General.
Assistant United States Attorney Samir Kaushal is prosecuting the case.
More than 5,800 household goods moving companies are registered with the FMCSA. In 2014, FMCSA received more than 2,800 consumer complaints about household goods movers, down from more than 3,100 in 2013. Among the most common complaints are shipments being held hostage, loss and damaged goods, delay of shipments, unauthorized movers, and deceptive practices such as unwarranted overcharges. Consumers can report unsafe and unlawful moving companies by calling FMCSA’s nationwide complaint hotline at 1-888-368-7238 (1-888 DOT-SAFT) or by visiting the database at http://nccdb.fmcsa.dot.gov. Consumers can visit www.protectyourmove.gov to find out more about the “red flags” of moving fraud.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
East St. Louis Man Pleads Guilty to "Crack" DistributionRead the Press Release
Willie J. Butler, 34, from East St. Louis, Illinois, pled guilty on March 27, 2015, in federal district court, in East St. Louis, Illinois, to one count of "crack" cocaine distribution, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Butler is scheduled for sentencing on July 17, 2015, at 10 a.m., where he faces a prison term of up to 20 years, a fine of up to $1,000,000 or both, as well as a minimum of 3 years of supervised release and a $100 special assessment. Court proceedings revealed that Butler admitted to selling approximately .75 grams of cocaine base in the form of "crack" on January 10, 2014, to an undercover officer in East St. Louis, Illinois.
This case was investigated by the Metropolitan Enforcement of Southwestern Illinois (MEGSI) and is being prosecuted by Assistant United States Attorney Daniel T. Kapsak.
East Bay Finance Manager Charged in Wire Fraud and Tax Evasion SchemeRead the Press Release
OAKLAND – A federal grand jury in Oakland indicted Scott Thomas Hatanaka yesterday with wire fraud and tax evasion announced United States Attorney Melinda Haag; Federal Bureau of Investigation, Special Agent in Charge David Johnson; and Internal Revenue Service Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the indictment, Hatanaka, is alleged to have carried out a scheme to embezzle money from his employer, Foster Wheeler Martinez, Inc. (“FWM”). FWM operated a natural gas combined cycle cogeneration facility which produced electrical power using a natural gas turbine while simultaneously converting excess heat into additional electrical power. The indictment alleges that while working as FWM’s finance manager, Hatanaka drafted company checks made payable to himself and to his personal credit card company. In order to conceal his thefts, Hatanaka forged signatures on the checks and entered false ledger entries into the company’s accounting system, among other things.
Hatanaka is scheduled to make his initial appearance in federal court in Oakland on April 8, 2015 at 9:30 a.m. before U.S. Magistrate Judge Donna M. Ryu. Hatanaka’s next scheduled appearance will be set before the Honorable Jeffery S. White, U.S. District Court Judge.
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 maximum statutory penalty for each count of wire fraud in violation of 18 U.S.C § 1343 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for each count of tax evasion in violation of 26 U.S.C § 7201 is 6 years in prison and a fine of $250,000. 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.
Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan and Noble Hughes. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.
Eagle Butte Man Sentenced for Assault by Striking, Beating, and WoundingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on March 23, 2015, by U.S. Magistrate Judge Roberto A. Lange.
Joshua Heideman, age 21, was sentenced to 2 years of probation, and a $25 special assessment to the Federal Crime Victims Fund.
Heideman was indicted by a federal grand jury on September 16, 2014, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. He pled guilty to Assault by Striking, Beating, and Wounding on January 26, 2015.
The conviction arose from a July 2014 incident in Eagle Butte, in which Heideman assaulted a victim by striking, beating, and wounding him.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Decatur Drug Dealers Who Robbed Letter Carriers at Gunpoint Sentenced to Federal PrisonRead the Press Release
ATLANTA – William Wilkins and Michael Fairnot-Woods have been sentenced to 18 years and 15 years in federal prison, respectively, for their roles in an armed robbery spree that targeted U.S. Postal Service letters carriers in Decatur and Lithonia, Georgia. The robberies were part of a scheme to steal a rival drug dealer’s marijuana that was being shipped illegally through the mail. The conspirators also sought to steal financial documents and blank checks that were then used for bank fraud and identity theft.
“Postal workers perform an important public service and should not have their lives jeopardized simply for doing their jobs,” said Acting U.S. Attorney John Horn. “The fact that they were targeted in broad daylight while delivering mail in quiet residential neighborhoods is one more indication of the disregard those in the illegal drug trade have for other people’s lives.”
“The U.S. Postal Inspection Service is pleased with today's sentence. A large part of the Postal Inspection Service mission is assuring the safety of postal employees and we want them to have confidence that they can focus on their duties. These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.” said Tom Noyes, Postal Inspector in Charge of the Charlotte Division –Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: On August 18, 2012, in a residential area in Decatur, Georgia, William Wilkins and Michael Fairnot-Woods approached a U.S. Postal Service letter carrier, “K.W,” pointed a military-style assault rifle at her, and stole a package that she was in the process of delivering. The package contained marijuana shipped illegally by a rival drug dealer. Wilkins and Woods fled the area in a pick-up truck.
On November 20, 2012, at another residence in Decatur, Wilkins approached a letter carrier, “A.J.,” pointed a handgun at her, and stole several packages and a tray of mail from her postal vehicle. Wilkins fled the area in a car driven by Fairnot-Woods. Several blank checks stolen during this robbery were later altered and deposited fraudulently by a co-conspirator, Joshua Ellis.
On November 23, 2012, at a residence in Lithonia, Georgia, Wilkins approached a letter carrier, “D.C.,” pointed a silver handgun at him, and demanded the keys to his postal truck. D.C. resisted, and Wilkins then fled the scene empty-handed with Woods, who was waiting in a car nearby.
On January 24, 2013, in a residential area in Decatur, Wilkins approached a letter carrier, “C.C.,” pointed a handgun at him, and directed him to open the back door of his postal vehicle. Wilkins jumped into the truck and began rifling through various packages until he located the particular package containing marijuana that he was looking for. Wilkins fled the scene with the package in a car driven by Woods. After receiving a tip about 30 minutes later, DeKalb County Police stopped the car Wilkins and Woods were traveling in and located the stolen marijuana package, the firearm used during the robbery, and other evidence linking the defendants to this crime. An investigation by federal agents later connected Wilkins and Woods to the earlier robberies and attempted robbery described above.
William James Wilkins, 28, of Decatur, Georgia, pleaded guilty to two counts of armed postal robbery, one count of brandishing a firearm during a crime of violence, and one count of possessing marijuana with the intent to distribute it. Wilkins was sentenced to 18 years in prison on March 24, 2015, to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $2,895.37.
Michael Anthony Fairnot-Woods, 27, of Decatur, Georgia, pleaded guilty to two counts of armed postal robbery, one count of brandishing a firearm during a crime of violence, one count of possessing marijuana with the intent to distribute it, and one count of illegally possessing a firearm after receiving a felony conviction. Fairnot-Woods was sentenced to 15 years in prison on March 27, 2015, to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $2,895.37.
Joshua Ellis, 22, of Decatur, Ga., pleaded guilty to one count of bank fraud and one count of possessing stolen mail. Ellis was sentenced to three years on probation on March 27, 2015. He was also ordered to pay restitution in the amount of $2,895.37.
This case was investigated by the United States Postal Inspection Service and the DeKalb County Police Department.
Assistant United States Attorneys John S. Ghose, Katherine M. Hoffer, and Mary F. Kruger prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Cleveland man pleads guilty to violating the Clean Air Act after storing garbage at old factoryRead the Press Release
A Cleveland man pleaded guilty in federal court to fraud, money laundering and violating the Clean Air Act by failing to remove asbestos prior to demolishing a former factory in Cleveland, law enforcement officials said.
Christopher Gattarello, 51, admitted to defrauding a Louisiana company out of nearly $1.2 million. He is scheduled to be sentenced June 19.
“Our neighborhoods are not garbage dumps,” said Steven Dettelbach, U.S. Attorney for the Northern District of Ohio. “Mr. Gattarello’s actions show his total disdain for the law and for the people who live near the factory. He will be held accountable for his actions.”
"This defendant had total disregard for the environment and cared only about his own illicit financial gain," said Steven D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
"Exposure to asbestos endangers human health and can prove fatal,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “As a result of the defendant’s actions, debris containing asbestos fibers piled up outside and was exposed to the elements, threatening dozens of nearby businesses and homes. Today’s guilty plea demonstrates that EPA and its partner agencies are prepared to prosecute those who 'cut corners' by avoiding the costs of handling asbestos safely and legally.”
“This was one of the most egregious examples of open dumping of solid waste ever seen in the state of Ohio; these actions will not be tolerated,” said Ohio EPA Director Craig W. Butler. “I would like to commend all those involved in this case from the Northeast Ohio Environmental Crimes Task Force which includes Ohio EPA’s Special Investigations Unit, along with the invaluable efforts of local, state and federal criminal investigatory and prosecutorial agencies.”
“IRS-Criminal Investigation is committed to unravelling complex financial schemes and following the money to ensure those who profit from crime are held accountable,” said Kathy Enstrom, Special Agent in Charge, Internal Revenue Service – Criminal Investigations.
According to court documents:
Gattarello owned and controlled several municipal garbage-hauling businesses in greater Cleveland, including Reach Out Disposal, All Points Rubbish Disposal and Axelrod Rubbish Recycling. In June 2011, Gattarello, on behalf of All Points, leased the former National Acme facility at 170 East 131st Street in Cleveland. The 570,000 square-foot facility was built in 1917 and was used for manufacturing for nearly a century. It is located near many homes and a school. Gattarello represented to the lessor that paper and cardboard waste would be recycled at the facility.
In July 2011, a company estimated removing asbestos from the facility would cost $1.5 million.
Around August 2011, Gattarello directed paper and cardboard waste, as well as municipal garbage, be delivered to the facility for recycling. Over the next several months, more garbage, paper and cardboard were delivered than could be handled, and Gattarello had the waste moved inside. By April 2012, most of the facility was filled with garbage.
In May 2012, Gattarello, on behalf of Reach Out, entered into a contract to purchase the facility. Gattarello intended to demolish the facility and sell any metal removed as scrap.
In July 2012, company officials submitted a notice of demolition with the Cleveland Division of Air Quality stating there was no asbestos in the National Acme facility. About 10 days later, the CDAQ rejected the notice because it was incomplete and stated demolition “may not begin” until a proper notice was submitted and approved. About 10 days after that, on July 21, 2012, Gattarello directed the demolition to begin.
Asbestos fibers were released into the environment during demolition. Debris accumulated outside the facility from demolition and asbestos in the piles were exposed to the wind and elements.
Additionally, Gattarello pleaded guilty to one count each of conspiracy to commit wire fraud and money laundering.
AIM Business Capital LLC is a financial company based in Louisiana that specializes in “factoring” – a practice in which AIM purchases accounts receivable, such as invoices billed to customers for goods and services. Businesses that factored their receivables with AIM received immediate cash. AIM, like other factoring companies, purchase the receivables at a percentage discount of the invoice. AIM made a profit by collecting the full amount of the invoice from the business’s customers, according to court documents.
In 2011 and 2012, Robert Shaw, on behalf of Reach Out and Axelrod, entered into contracts with AIM for the purchase of receivables from Reach Out and Axelrod. Gattarello directed the creation of false and fraudulent invoices for the companies and directed that they be submitted to AIM. In some cases, Gattarello and Shaw directed other employees to create false letters attesting to the validity of the invoices, which Shaw forwarded to AIM. The loss to AIM was nearly $1.2 million, according to court documents.
Shaw’s case is pending.
The case is being prosecuted by Assistant United States Attorneys Brad Beeson and James V. Moroney following an investigation by the FBI, the U.S. and Ohio Environmental Protection Agencies, the Ohio Bureau of Criminal Investigation and the Internal Revenue Service.
Cambodian National Indicted for Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHHAY LIM, age 44, a citizen of Cambodia, was charged today in a two-count Indictment for violations of the Federal Gun Control Act.
According to the Indictment, on or about March 2, 2015, LIM, an alien present illegally in the United States, was found in possession of a TriStar 9mm semi-automatic pistol and a Marlin Model 6082 .22 caliber rifle.
If convicted of these charges, LIM faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Cambodian National Indicted for Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHHAY LIM, age 44, a citizen of Cambodia, was charged today in a two-count Indictment for violations of the Federal Gun Control Act.
According to the Indictment, on or about March 2, 2015, LIM, an alien present illegally in the United States, was found in possession of a TriStar 9mm semi-automatic pistol and a Marlin Model 6082 .22 caliber rifle.
If convicted of these charges, LIM faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
California Man Sentenced for his Part in Methamphetamine Conspiracy and Firearm ChargesRead the Press Release
A California man, previously convicted by a jury in the Southern District of Illinois of Conspiracy to Distribute and Possess with Intent to DistributeMethamphetamine, Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, was sentenced to 420 months in federal prison on March 27, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Willie Gonzalez, 31, of Los Angeles, California, received a 360 month sentence on the drug convictions, and a 60 month sentence on the firearm offense, to run consecutively, for a total of a 420 month sentence (35 years). Following release from imprisonment, Gonzalez will serve a 5 year term of supervised release. Gonzalez was also ordered to pay a $750 fine, a $300 special assessment, and forfeited his interest in two firearms.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service, Criminal Investigations, and United States Marshal Service. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
California Man Arrested on Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Efrain Sanchez Jr., 26, of San Bernardino, Calif., made his initial appearance this morning in federal court in Albuquerque, N.M., on a criminal complaint charging him with possession of methamphetamine with intent to distribute. Sanchez remains in federal custody pending a preliminary hearing and a detention hearing which are scheduled for March 30, 2015.
Sanchez was arrested yesterday after DEA agents allegedly seized approximately 11.22 pounds of methamphetamine from his baggage during a consensual search at the Greyhound Bus Station in Albuquerque.
If convicted on the charge in the criminal complaint, Sanchez faces a statutory maximum penalty of not less than ten years and not more than life in prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
CEO and Managing Director of US Broker-Dealer Sentenced for International Bribery SchemeRead the Press Release
The former chief executive officer and former managing director of a U.S. broker-dealer (the Broker-Dealer), were sentenced to prison today for their roles in a scheme to pay bribes to a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (Bandes), in return for trading business that generated more than $60 million in commissions.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement. The sentences were imposed by U.S. District Judge Denise L. Cote of the Southern District of New York.
Benito Chinea, 48, of Manalapan, New Jersey, and Joseph DeMeneses, 45, of Fairfield, Connecticut, were each sentenced to four years in prison. They were also ordered to pay $3,636,432 and $2,670,612 in forfeiture, respectively, which amounts represent their earnings from the bribery scheme. On Dec. 17, 2014, both defendants pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act and the Travel Act.
“These Wall Street executives orchestrated a massive bribery scheme with a corrupt official in Venezuela to illegally secure tens of millions of dollars in business for their firm,” said Assistant Attorney General Caldwell. “The convictions and prison sentences of the CEO and Managing Director of a sophisticated Wall Street broker-dealer demonstrate that the Department of Justice will hold individuals accountable for violations of the FCPA and will pursue executives no matter where they are on the corporate ladder.”
“Benito Chinea and Joseph DeMeneses paid bribes to an officer of a state-run development bank in exchange for lucrative business she steered to their firm,” said U.S. Attorney Bharara. “Chinea and DeMeneses profited for a time from the corrupt arrangement, but that profit has turned into prison and now they must forfeit their millions of dollars in ill-gotten gains as well as their liberty.”
Chinea, the chief executive officer, and DeMeneses, a managing director in the Broker-Dealer, admitted that they worked with others, to arrange bribe payments to the Bandes official, Maria De Los Angeles Gonzalez, in exchange for her directing Bandes’s financial trading business to the Broker-Dealer. Previously, Gonzalez, along with two employees of the Broker-Dealer, Tomas Alberto Clarke Bethancourt (Clarke) and Jose Alejandro Hurtado (Hurtado), pleaded guilty for their involvement in this bribery scheme. A managing director of the Broker-Dealer, Ernesto Lujan, also pleaded guilty for his role in the scheme.
Background on the Broker-Dealer and Bandes
According to court documents, and as admitted by Chinea and DeMeneses at their guilty pleas, the Broker-Dealer, which was headquartered in New York City and had offices in Miami, established a group called the Global Markets Group in 2008, which included DeMeneses, Lujan and Clarke, and which offered fixed income trading services to institutional clients. One of the Broker-Dealer’s clients was Bandes, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in Bandes and provided it with substantial funding. Gonzalez was an official at Bandes and oversaw the development bank’s overseas trading activity. At her direction, Bandes conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of Bandes involved fixed income investments for which the Broker-Dealer charged Bandes a mark-up on purchases and a mark-down on sales.
The Bribery Scheme
As alleged in court documents, Chinea and DeMeneses, together with three Miami-based Broker-Dealer employees, Lujan, Clarke and Hurtado, participated in a bribery scheme that ran from late 2008 through 2012, in which Gonzalez directed trading business to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in commissions from trades with Bandes.
As further alleged in court documents, in order to conceal the scheme, payments to Gonzalez, frequently in six-figure amounts, were routed through third-parties posing as “foreign finders” and into offshore bank accounts. In several instances, Chinea personally signed checks worth millions of dollars that were made payable to one of these purported “foreign finders” and later deposited in a Swiss bank account. Chinea and DeMeneses admitted that they agreed to use Broker-Dealer funds to reimburse DeMeneses and Clarke for the approximately $1.5 million from their personal funds they used to bribe Gonzalez. To conceal their true nature, Chinea and DeMeneses agreed to hide these reimbursements in the Broker-Dealer’s books as sham loans from the Broker-Dealer to DeMeneses and Clarke.
This case is being investigated by the FBI, and prosecuted by Senior Deputy Chief James Koukios and Trial Attorney Kevin R. Gingras of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Harry A. Chernoff and Jason H. Cowley of the Southern District of New York. Assistant U.S. Attorney Carolina Fornos of the Southern District of New York is responsible for the forfeiture aspects of the case. The U.S. Securities and Exchange Commission also assisted with this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
CEO and Managing Director of U.S. Broker-Dealer Each Sentenced to Four Years in Prison for Scheme to Bribe A Venezuelan Foreign OfficialRead the Press Release
PREET BHARARA, the United States Attorney for the Southern District of New York, and LESLIE R. CALDWELL, the Assistant Attorney General for the Criminal Division of the United States Department of Justice, announced that BENITO CHINEA and JOSEPH DEMENESES , the former Chief Executive Officer and former Managing Director, respectively, of a United States broker-dealer (the “Broker-Dealer”), were each sentenced to four years in prison today for carrying out a scheme to pay bribes to Maria De Los Angeles Gonzalez De Hernandez (“Gonzalez”), who was a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (“BANDES”). CHINEA and DEMENESES, working with others, arranged the bribe payments to Gonzalez in exchange for her directing BANDES’s financial trading business to the Broker-Dealer. CHINEA and DEMENESES each had previously pled guilty to conspiring to violate the Foreign Corrupt Practices Act and the Travel Act. They were sentenced today by U.S. District Judge Denise Cote.
Previously, on May 3, 2013, Gonzalez, along with two employees of the Broker-Dealer, Tomas Alberto Clarke Bethancourt (“Clarke”) and Jose Alejandro Hurtado (“Hurtado”) were arrested on charges relating to this bribery scheme. On June 12, 2013, a managing director of the Broker-Dealer, Ernesto Lujan (“Lujan”), was arrested on related charges as well. Each of these four defendants has since entered guilty pleas.
Manhattan U.S. Attorney Preet Bharara said: “Benito Chinea and Joseph DeMeneses paid bribes to an officer of a state-run development bank in exchange for lucrative business she steered to their firm. Chinea and DeMeneses profited for a time from the corrupt arrangement, but that profit has turned into prison and now they must forfeit their millions of dollars in ill-gotten gains as well as their liberty.”
Assistant Attorney General Leslie R. Caldwell said: “These Wall Street executives orchestrated a massive bribery scheme with a corrupt official in Venezuela to illegally secure tens of millions of dollars in business for their firm. The convictions and prison sentences of the CEO and Managing Director of a sophisticated Wall Street broker-dealer demonstrate that the Department of Justice will hold individuals accountable for violations of the FCPA and will pursue executives no matter where they are on the corporate ladder.”
According to the allegations in the Indictment, the defendants’ pleas, and other documents previously filed in Manhattan federal court:
Background on the Broker-Dealer and BANDES
At all times relevant to the charges, CHINEA was the chief executive officer and DEMENESES was a managing director in the Broker Dealer, which was headquartered in New York, with offices in Miami, Florida. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included DEMENESES, Lujan, and Clarke, and which offered fixed income trading services to institutional clients. One of the Broker-Dealer’s clients was BANDES, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. Gonzalez was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed income investments for which the Broker-Dealer charged BANDES a mark-up on purchases and a mark-down on sales.
The Bribery Scheme
From at least late 2008 through at least 2012, CHINEA and DEMENESES, along with Lujan, Clarke, Hurtado, and Gonzalez, participated in a bribery scheme in which Gonzalez directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer, including CHINEA and DEMENESES, split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including CHINEA, DEMENESES, Lujan, Clarke, and Hurtado, devised a split with Gonzalez of the commissions paid by BANDES to the Broker-Dealer.
To further conceal the scheme, the kickbacks to Gonzalez were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For example, DEMENESES, Lujan, and Clarke used an account in Switzerland to transfer at least $1.5 million to an account Gonzalez controlled in Switzerland. In addition to Gonzalez receiving the bribe payments, other participants in the scheme, including CHINEA and DEMENESES, also received millions in proceeds generated from the scheme.
In addition to the prison terms, Judge Cote sentenced CHINEA, 48, who resides in Manalapan, New Jersey, and DEMENESES, 45, who resides in Fairfield, Connecticut, to three years of supervised release each. CHINEA was ordered to forfeit $3,636,432 and DEMENESES was ordered to forfeit $2,670,612. Each defendant was also ordered to pay a $40,000 fine and a $100 special assessment fee.
Mr. Bharara praised DOJ’s Criminal Division and the Federal Bureau of Investigation for their work in the investigation. He also thanked the Securities and Exchange Commission for its assistance in this case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Harry A. Chernoff and Jason H. Cowley, and Fraud Section Deputy Chief James Koukios and Trial Attorney Kevin Gingras, are in charge of the prosecution.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Buffalo Man Arrested in Texas for Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Archie Phillips, 43, most recently of Houston, TX, but originally of Buffalo, NY, with conspiracy to distribute five kilograms or more of cocaine. The charge carries a maximum penalty of life in prison.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment, between early 2012 and April 3, 2013, Phillips conspired with Beverly Fields and others to distribute, and possess with intent to distribute, cocaine in Western New York. Fields is also charged with conspiracy.
Phillips was arrested on March 26, 2015 in Houston. He will be returned to Buffalo for a detention hearing on April, 6, 2015 at 10:00 a.m.
The defendant was convicted on a previous federal drug charge and sentenced to 51 months in prison in May 2002.
The indictment and arrest are the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division; the Federal Bureau of Investigation; and the United States Marshals Service, under the direction of Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.