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Wednesday 25 March 2015
Two Bridgeport Men Sentenced to Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two Bridgeport men have been sentenced for trafficking heroin. RASHAD HEARD, also known as “Shotty,” 25, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by five years of supervised release. Today, Chief Judge Hall sentenced TYSHEEM WRIGHT, 28, to approximately 15 months of imprisonment, time already served, and five year of supervised release.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin, cocaine and crack cocaine 24-hours a day, seven days a week.
HEARD and WRIGHT received heroin from Hanks and sold the drug to their own customers.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging HEARD, WRIGHT, Hanks and 11 other individuals with narcotics and firearms trafficking offenses.
HEARD and WRIGHT have been detained since their arrests in December 2013. Both defendants previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
HEARD’s criminal history includes a conviction in December 2007 for first-degree robbery and attempted murder. He served approximately seven years of imprisonment for those offenses.
Hanks pleaded guilty and, on February 26, 2015, was sentenced to 17 years of imprisonment.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Twenty-Two Individuals from Nine Counties and Three States Arrested for Conspiracy to Distribute Methamphetamine and Firearms Related ChargesRead the Press Release
CHATTANOOGA, Tenn. — On Mar. 25, 2015, 22 individuals from over nine counties, spanning southeast Tennessee, northern Georgia, and northern Alabama, were arrested for their roles in a large methamphetamine distribution conspiracy centered in Marion County, Tenn.
An investigation led by special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) along with detectives of the Marion County Tennessee Sheriff’s Office, resulted in two separate grand jury indictments, which include charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by prohibited people.
Details of the charges are outlined in two criminal indictments on file with the U.S. District Court for the Eastern District of Tennessee at Chattanooga. Those charged in the first indictment include: David Henderson, 45, of Wildwood, Ga.; Ronald Green Jr., 49, of Jasper, Tenn.; James Ray Pritchett, 36, of South Pittsburg, Tenn.; Dennis Reed, 44, of South Pittsburg, Tenn.; Steve Hankins, 58, of Jasper, Tenn.; Christopher Brian Janeway, 41, of South Pittsburg, Tenn.; Kevin, Denney, 40, of South Pittsburg, Tenn.; James Allen Sexton, 50, of Chattanooga, Tenn.; Kelly Nance, 34, of Jasper, Tenn.; Jason Boston, 35, of South Pittsburg, Tenn.; Charles Meeks, 41, of Tracy City, Tenn.; Michael Patterson, 40, of Philadelphia, Tenn.; and Robert Graham, 46, of Trenton, Ga.
Initial appearances for individuals listed above who were arrested on Mar. 25, 2015, are scheduled for 3:00 p.m., Thursday, Mar. 26, 2015, in U.S. District Court in Chattanooga, before the Honorable Susan K. Lee, U.S. Magistrate Judge.
Those charged in the second indictment include: Monica Sha Newman, 38, of Jasper, Tenn.; Mark Anthony Johnson, 33, of Tracy City, Tenn.; Terry Jones, 53, of Crandall, Ga.; Ronald Terry Wilmore, 46, of McMinnville, Tenn.; Tiffany Hadder, 32, of Gruetli Laauger, Tenn.; Nathan Carlton, 40, of Stevenson, Ala.; Rodney Craig Akins, 49, of Dunlap, Tenn.; Jamie Harris, 43, of Whiteside, Tenn.; and Jeremy Toro, 40, of Tracy City, Tenn.
Initial appearances for these individuals, who were arrested on Mar. 25, 2015, are scheduled for 2:00 p.m., Thur. Mar. 26, 2015 in U.S. District Court before the Honorable William B. Carter, U.S. Magistrate Judge. Eight of the individuals charged in these indictments are already in custody on other charges and will have initial appearances at later dates.
In addition to ATF and the Marion County Tennessee Sheriff’s Office, state and local law enforcement agencies who assisted with the arrests include: the Tennessee Bureau of Investigation; Tennessee Highway Patrol; Dade County Georgia Sheriff’s Office; Grundy County Tennessee Sheriff’s Office; Jackson County Alabama Sheriff’s Office; Loudon County Tennessee Sheriff’s Office; Murray County Georgia Sheriff’s Office; Sequatchie County Tennessee Sheriff’s Office; Warren County Tennessee Sheriff’s Office; Monteagle Tennessee Police Department; and Chattanooga Tennessee Police Department. Assistant U.S. Attorney Terra Bay will represent the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Twenty-Three Individuals Charged in A Prescription Drug Distribution ConspiracyRead the Press Release
DALLAS — An indictment returned by a federal grand jury in Dallas last month, and unsealed late yesterday, charges 23 individuals with offenses related to their participation in a prescription drug distribution conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The defendants charged are:
Sina Athari, 24, of Houston, Texas
Shane Barron, 27, of Austin, Texas
Carolina Giselle Berrio, a/k/a “Carolina Slocum Berrio” and “Karrie,” 36, of Lafayette, Louisiana
Angela Moore Booth, 48, of Lafayette, Louisiana
Earl Cain, 53, of Houston, Texas
Glenda Cane, 46, of Houston, Texas
Lashavia Syneice Denson, a/k/a “Shae Denson” and “Shay Denson,” 26, of Houston, Texas
Jason Edgecombe, 38, of Houston, Texas
Darlene Viola Fortenberry, 69, of Houston, Texas
Bertha Alicia Garcia, 49, of Houston, Texas
Tony Sue Griggs, 34, of Dallas, Texas
William Hopkins, a/k/a “New York,” 53, of Dallas, Texas
Fahim Ahmed Khan, 57, of Houston, Texas
Candis O’Shaea Lewis, 29, of Dallas, Texas
Patrick Moore, a/k/a/ “Crowley,” 23, of Lafayette, Louisiana
Ivery Myers, 63, of Houston, Texas
Taneisha Nicole Nickerson, a/k/a “Nookie,” 28, of Houston, Texas
Cornelius Delshun Robinson, a/k/a “Tadow,” 36, of Houston, Texas
Shalisa Shaunta Robinson, a/k/a “Shalisa Speed,” 29, of Houston, Texas
Markii Josett Shular, 30, of Dallas, Texas
Tasmin Jamal Stewart, a/k/a “Taz,” 30, of Baton Rouge, Louisiana
Muhammad Taylor, 32 of Houston, Texas
Cy Viator, 32, of Houston, Texas
Twenty-one of the 23 defendants have been taken into custody in Texas and Louisiana. Each indicted defendant is charged with one count of conspiracy to distribute a controlled substance. Nineteen of the defendants are also charged with unlawful use of a communication facility.
The indictment alleges that from at least May 2013 through July 2014, these individuals participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid a fee to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions and to fill those prescriptions at designated pharmacies. The organizers, sometimes referred to as “script ring leaders,” paid the recruits, the costs of the clinic visits, and the costs to fill the prescriptions. The script ring leaders then obtained the pharmaceuticals and distributed them for profit in Dallas, Austin, Houston and Louisiana.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The maximum statutory penalty for the offense charged in Count 1 is 20 years in federal prison and a $1 million fine. The maximum statutory penalty for each of the offenses charged in Counts 2-27 is four years in federal prison and a $250,000 fine.
The investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is prosecuting the case.
Three Indicted for Identity Theft and Tax Schemes Involving Nearly 300 VictimsRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced the filing of criminal charges against three (3) individuals accused of committing theft of government property, access device fraud, aggravated identity theft, and related crimes in the Baton Rouge area. Collectively, these three individuals are alleged to have misused the names and social security numbers of nearly 300 different taxpayers and of fraudulently obtaining numerous federal income tax refunds. The charges are the result of an initiative by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division to combat stolen identity refund fraud and other tax fraud schemes.
The following individuals have been charged:
JASON DEANDRE DAVIS, age 30, of Baton Rouge, Louisiana, was charged in an indictment with five counts of theft of government property, in violation of Title 18, United States Code, Sections 641 and 2, five counts of receipt of stolen government property, also in violation of Title 18, United States Code, Sections 641 and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The indictment alleges that DAVIS obtained numerous federal tax refunds, either via electronic deposits to bank accounts DAVIS controlled or debit cards that had been pre-loaded with the refunds, knowing that the refunds belonged to other taxpayers and that he was not entitled to the funds. According to the indictment, during and in relation to his fraudulent receipt of one of the refunds, DAVIS also knowingly possessed and used one of the taxpayer’s names and social security numbers. The case is being prosecuted by Assistant United States Attorney René I. Salomon.
TASHA THOMAS, age 26, of Donaldsonville, Louisiana, was charged in an indictment with access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The indictment alleges that from January 2012 through August 2012, THOMAS used and trafficked in the social security numbers assigned to more than two hundred and fifty (250) different taxpayers. Then, in August 2013, the indictment alleges that THOMAS trafficked more than twenty (20) additional social security numbers assigned to other individuals. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Finally, SHONDA V. JOHNSON, age 42, of Baton Rouge, Louisiana, was charged in an indictment with three counts of receipt of stolen government property, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The indictment alleges that JOHNSON obtained several federal tax refunds via paper checks and electronic deposits to a bank account that JOHNSON controlled, knowing that the refunds belonged to other taxpayers and that she was not entitled to the funds. According to the indictment, during and in relation to her fraudulent receipt of one of the refunds, JOHNSON also knowingly possessed and used one of the taxpayer’s names and social security numbers. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
If convicted of the charges returned by the federal grand jury today, each defendant faces a significant term of imprisonment, fines, restitution, and the forfeiture of the proceeds from these alleged schemes. All three investigations are ongoing.
U.S. Attorney Green stated: “This office will continue to aggressively pursue criminals who commit identity theft and use those stolen identities to defraud the United States and line their own pockets. The filing of these three new cases is another significant step in that important effort. Working with our federal, state, and local partners, our investigations of this type of crime in our district will continue.”
“Protecting taxpayer money and trust is an integral part of this agency's mission. We will vigorously pursue fraudulent refund claims and those individuals who engage in identity theft,” stated Jerome R. McDuffie, Special Agent-in-Charge, IRS Criminal Investigation. “We will continue to work aggressively with the United States Attorney's Office to protect innocent taxpayers and preserve the integrity of our tax system. The message to be taken from today’s indictments in Baton Rouge is simple. Participation in refund fraud schemes does not pay and those who do will be prosecuted and be held accountable for their illegal activities.”
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Texan sentenced to 10 years in prison for attempting to entice a minor into producing pornographyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Texan was sentenced to 120 months in prison for trying to lure a minor into producing a sex video.
Sach Kevin Vu, 33, of Arlington, Texas, was sentenced by U.S. District Judge S. Maurice Hicks Jr. for one count of attempting to entice a minor to engage in criminal sexual activity. He was also sentenced to five years of supervised release. According to evidence presented at the October 23, 2014 guilty plea, an undercover officer posing as a 16-year-old girl responded on February 7, 2014 to an online advertisement seeking models for a photo shoot. Vu began communicating with the officer posing as a 16-year-old girl and set up a meeting in Haynesville, La., where he planned to produce a pornographic video. While arranging the meeting, Vu communicated in detail the types of sex acts he wanted performed in the video. He was arrested on February 20, 2014, in Haynesville, La., after traveling there from Texas. Sex toys and camera equipment were found in his vehicle.
“This defendant’s goal was to convince a minor to take part in sexual acts,” Finley stated. “Not only did he plan on abusing a girl, he also intended to record it. We take sexual abuse of minors and the production of child pornography seriously. If members of the public are found to be engaging in such illegal activities, they will be prosecuted to the fullest extent of the law.”
The FBI and the Claiborne Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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, visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
Summer camps are legally required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Barbara L. McQuade announced today.
With summer approaching, parents are beginning to think about sending their children to summer camps. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Eastern District of Michigan reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“Summer camps present tremendous growth opportunities for children to learn independence, try new activities and gain self-confidence,” McQuade said. “The law requires camps to provide equal opportunities to disabled children whose needs can be reasonably accommodated.”
Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Hotline at (313) 226-9151.
Suffolk County Resident Indicted for Fraudulent Lien Scheme Perpetrated Against Suffolk County State Court JudgesRead the Press Release
An indictment was unsealed today in United States District Court for the Eastern District of New York charging Jerry Campora, Jr., a resident of Setauket, New York, with eight counts of mail fraud. Campora was arraigned this afternoon before United States District Judge Joanna Seybert at the federal courthouse in Central Islip. He was released on a $50,000 bond and ordered not to file any liens or affidavits in other jurisdictions without the prior approval of the court.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the indictment and related court proceedings, beginning in 2010, Campora was named as a defendant in a foreclosure action in Suffolk County Supreme Court, due to his failure to pay the mortgage on his house located in Seatauket, New York. Campora represented himself in the foreclosure action and, after several of Campora’s pro se motions were dismissed, his house was ordered to be sold at auction. Thereafter, in October and November of 2013, in retaliation for the adverse decision in the foreclosure action, Campora filed fraudulent affidavits and liens through the mail with the Lamar County Superior Court Clerk’s Office in Barnesville, Georgia, against three Suffolk County state court judges and one private attorney appointed by the court to serve as a referee in Campora’s foreclosure action. The affidavits purported to confer legal rights upon Campora against the victims and also claimed that the victims admitted to having illegally violated Campora’s rights. Campora then cited these fraudulent affidavits as serving as a legal basis to further file false liens with the Lamar County Superior Clerk’s Office against each of the four victims in an amount in excess of $1,500,000.
“We will continue to aggressively identify and pursue those who would manipulate the judicial system through private vendettas in the hope of causing financial hardship to public servants with whom they disagree,” stated Unites States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the New York State Court System for its assistance and cooperation in this investigation.
FBI Assistant Director-in-Charge Rodriguez stated, “Mr. Campora allegedly used the legal system to retaliate against Suffolk County Court judges who had ordered a foreclosure action on his house. Vendettas against members of the judiciary have no place in our legal system.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Campora faces a statutory maximum sentence of 30 years in prison and a fine of up to $1,000,000 on each of the eight counts.
The government’s case is being prosecuted by Assistant United States Attorney Raymond A. Tierney.
The Defendant:
JERRY CAMPORA, JR.
Age: 46
Setauket, New York
E.D.N.Y. Docket No. 15-CR-123
Staten Island Man Pleads Guilty to Federal Tax Charge Related to Illegal GamblingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SALVATORE FERRAIOLI, 33, of Staten Island, New York, pleaded guilty today in Hartford federal court to a federal tax charge stemming from his involvement in an illegal sports gambling operation.
According to court documents and statements made in court, FERRAIOLI was a bookmaker in a sports gambling operation run by Dean DePreta and Richard Uva, two alleged associates of the Gambino organized crime family. DePreta and Uva used sports-gambling websites, particularly 44wager.com based in Costa Rica, to conduct their bookmaking operation.
FBI analysis of 44wager.com website data determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
In court, FERRAIOLI admitted to being a bookmaker in the operation, and for failing to register with the Internal Revenue Service or to file a wagering tax return in 2011.
FERRAIOLI pleaded guilty to one count of failing to file a wagering tax return. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 17, 2015, at which time he faces a maximum term of imprisonment of one year and a fine of up to $25,000. FERRAIOLI also has agreed to forfeit $160,988, and to pay back taxes, interest and penalties.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation Division, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]St. Charles Man Sentenced to Prison for Filing False Tax ReturnRead the Press Release
DES MOINES, IA - On March 25, 2015, Jay A. Ochanpaugh, age 50, of St. Charles, Iowa, and formerly of Ames, Iowa, was sentenced by United States District Judge Stephanie M. Rose to 12 months and one day in federal prison for filing a false income tax return for the calendar year 2009, announced United States Attorney Nicholas A. Klinefeldt. Ochanpaugh will be required to serve one year of supervised release following his release from prison, and will be required to cooperate with the Internal Revenue Service to pay his tax liability. Ochanpaugh will be required to surrender to the United States Bureau of Prisons at a date to be determined.
In a written plea agreement filed December 12, 2014, Ochanpaugh admitted that he filed false income tax returns for the calendar years 2007 through 2010, underreporting his business income, which resulted in a tax loss of at least $80,000. Ochanpaugh is in the insurance sales business, working for Ochanpaugh Financial Group, LLC, but he will not be permitted to continue to sell insurance as a result of this conviction.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Southern California Man Charged in Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. - A Southern California man is expected to make his initial court appearance today for allegedly conspiring to transport 12 kilograms of cocaine from California to New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Jesus Raul Iribe, 37, of Riverside, California, is charged by federal criminal complaint with one count of conspiring to distribute cocaine. Iribe is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
Iribe has been in custody since he was arrested at his home on March 10, 2015. When federal agents arrested Iribe, they found $460,000 in cash hidden in the house, as well as three guns, including an AR-15 assault rifle.
According to the complaint:On Feb. 8, 2013, law enforcement recorded and observed meetings between Iribe and other conspirators in which they allegedly planned to use a tractor-trailer to transport cocaine from California to New Jersey and other destinations along the East Coast. Eventually, law enforcement followed the tractor trailer to Bronx, New York, where they recovered a produce box containing 12 kilograms of cocaine.
The conspiracy charge carries a statutory mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA Los Angeles Field Office and the Fontana, California, Police Department with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Barry Kamar and David Eskew of the U.S. Attorney’s Office General Crimes Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.15-102
Slidell Woman Sentenced for Embezzlement of Union FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANDREA HOBGOOD, age 36, of Slidell, was sentenced today, having pled guilty to embezzlement of union funds. HOBGOOD had been a union’s office manager and, on more than 100 occasions, failed to deposit members’ dues payments into the union’s bank account and instead kept and spent the money for herself.
U.S. District Judge Helen G. Berrigan sentenced HOBGOOD to 5 years probation and ordered her to pay restitution.
U.S. Attorney Polite praised the work of the U.S. Department of Labor’s Office of Labor-Management Standards in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Six Charged in Scheme to Commit Marriage FraudRead the Press Release
HOUSTON – A total of six Houston residents have been charged in a nine-count indictment alleging their involvement in a marriage fraud scheme involving Nigerian nationals, announced U.S. Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston.
The indictment was returned under seal Feb. 26, 2015, and unsealed today as Shakietha Ann Joseph, 39, Nathan Michael, 36, Trevor Ray Frenney, 39, and Hauwa Bello, 37, all of Houston, made their initial appearances in federal court. At that time, U.S. Magistrate Judge Mary Milloy ordered they be detained pending further criminal proceedings.
Anthony Andrews 27, also of Houston – is in state custody on unrelated charges and is expected to make his appearance in federal court in the near future.
A final defendant - Anisha Nicole Gable, 33 – is considered a fugitive and a warrant remains outstanding for her arrest. Anyone with information about her whereabouts is asked to contact HSI at 281-985-0500.
The six defendants allegedly conspired together in connection with a marriage fraud ring involving arranged “sham” marriages between recruited U.S. citizens and Nigerian nationals. A “sham” marriage is a marriage that is entered into for the primary purpose of circumventing the immigration laws.
“Becoming an American citizen is an honor and a privilege,” said Moskowitz. “Obtaining citizenship through fraud is an affront to every person who has played by the rules and it threatens the integrity of our legal immigration system. HSI special agents will continue to work with our partners to ensure that those who use criminal and dishonorable means to achieve the most honorable of goals are brought to justice.”
The indictment alleges conspirators would pay U.S. citizens for entering into fraudulent marriages to Nigerian nationals who had originally entered the country on tourist visas. The conspirators would then complete immigration documents and submit them to Citizenship and Immigration Services (CIS) to obtain legal permanent resident status, according to the indictment. As part of the conspiracy, the indictment further alleges they would take staged photographs of themselves as a couple for documentation of an allegedly meaningful relationship. The conspirators also allegedly coached the recruits and/or the Nigerian nationals on what to say when questioned or interviewed by law enforcement or immigration officials about the legitimate nature of the marriages.
The indictment charges all six with conspiracy commit marriage fraud. Gable is also charged with four counts of aiding and abetting marriage fraud, while Joseph and Frenney are each charged with two counts of the same allegation. Michael and Bello were also indicted on one count of committing marriage fraud.
Gable allegedly recruited Andrews, Frenney and Joseph to marry Nigerian nationals. The indictment further alleges Bello did knowingly marry Frenney, a U.S. citizen for the for the purpose of evading any provision of the immigration laws of the United States. Similarly, Michael allegedly entered into a sham marriage with Joseph, according to the allegations. At the time of their respective marriages, Bello and Michael were natives and citizens of Nigeria and were in the U.S. temporarily on B1/B2 non-immigrant visas.
If convicted on any of the counts as charged, each defendant faces up to five years in federal prison and a possible $250,000 fine.
The charges are the result of an investigation by HSI, Department of Homeland Security (DHS) - Document and Benefit Fraud Task Force, Office of Fraud Detection, CIS and the Department of Agriculture - Office of the Inspector General. Special Assistant U.S. Attorneys Rick Bennett and Mark Evans are prosecuting the case.
All defendants are presumed innocent unless convicted through due process of law.Sexual Predator Receives Lengthy Prison Sentence for Extorting Girls to Send Him Pornographic ImagesRead the Press Release
ATLANTA - Destin Whitmore has been sentenced to 17 years, six months for extortion, distribution of child pornography, and possession of child pornography. The defendant used a social media site, where he maintained two fake aliases as well as a personal account, to entice and then force nine minors to provide him pornographic images of them.
“This case is a sad example of the dangers of the Internet for teens that aren’t careful,” said Acting U.S. Attorney John Horn. “This defendant victimized at least nine teenage girls by using their images to extort pornographic images, creating a vicious cycle of exploiting vulnerable victims.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In April 2012, a girl in Arizona reported that she had been contacted on Facebook by an individual using the profile name “Ralph Jenkins.” The individual using the Jenkins profile, later identified as Destin Whitmore, sent the teen compromising images of herself that she had previously sent to Whitmore, and he threatened to send those images to other persons, including her family members, if she did not immediately create additional images for him.
A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington,” showed that both profiles were used by Whitmore, along with his own Facebook account, to transmit pornographic images of numerous teen girls to the girls in order to extort them for additional images. He threatened to distribute the pornographic images to others and post them on various websites for public consumption if they did not comply with his demands. Whitmore knew many of the girls through personal relationships or through long-term communications using web cameras with the girls online. Some of the girls had previously sent sexually explicit images to Whitmore or had provided such images to others, which Whitmore subsequently obtained. The investigation revealed that Whitmore contacted and extorted at least nine minors over a period of six months.
Whitmore, 23, of Canton, Georgia, has been sentenced to 17 years, six months in prison to be followed by supervised release for life. Whitmore was convicted of these charges on September 22, 2014, when he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and Cobb County Police Department.
Assistant United States Attorneys Mary Webb and Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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/.
Seventeen Charged in White Plains Federal Court with Massive Oxycodone and Heroin Conspiracies in and Around Rockland CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas Zugibe, Rockland County District Attorney, James Hunt, Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), and Ed Day, Rockland County Executive, announced the unsealing of an Indictment charging 17 defendants with conspiring to distribute oxycodone and heroin in and around Rockland County.
Twelve of the seventeen defendants charged in the Indictment unsealed today were arrested today or had previously been taken into custody. Those defendants are expected to be presented in White Plains federal court today before Magistrate Judge Judith C. McCarthy. In a related prosecution, New York State has charged an additional 12 defendants.
U.S. Attorney Bharara stated: “What we have more and more in this country is poison by prescription. The abuse of prescription painkillers, and oxycodone in particular, has become a crisis of epidemic proportions. Today we announce the unsealing of charges against members of a massive drug trafficking organization who sought to capitalize on this increasingly deadly epidemic. The federal Indictment names 17 defendants, and the Rockland County DA is bringing a related prosecution against 12 additional defendants. We will not permit prescription painkillers and other illegal drugs to decimate our community, our state, or our nation. This has to stop, and we will do everything we can to stop it.”
District Attorney Zugibe stated: “Dealers in this operation are alleged to have sunk to a new low, selling prescription drugs and heroin at popular locations where parents drop off their kids to see a movie, attend a birthday party or spend time ice skating with friends. With today’s federal indictment, we take a giant step to ensure a feeling of safety and security in our community – making certain that Rockland County continues to be a great place to live and work. Our success in this ongoing investigation is the direct result of the exceptional cooperation with U.S. Attorney Preet Bharara, the DEA and state and local law enforcement agencies. My office is dedicated to continuing to work with our partners to target, investigate and bring to justice those who prey on our community.”
DEA SAC Hunt stated: “Throughout the nation, opioid overdose and abuse statistics have become reality in our local towns, suburban communities and inner city. Diverted prescription pain medication and heroin drug crews are public health enemy #1. Today’s arrests of Victor Esteban and his alleged drug crew demonstrate law enforcement’s commitment to arresting those responsible for arming addicts with their drug of choice and protecting residents from the possibility of being another statistic.”
County Executive Day said: “We are losing an average of two local residents each month to the scourge of heroin and prescription drugs. It’s happening to wealthy families and to poor families. It doesn’t know any boundaries. This operation demonstrates how police and prosecutors continue to work together to dig in at the local level and hammer away at the drug markets plaguing our neighborhoods. I want to commend District Attorney Zugibe and U.S. Attorney Bharara for leading a dedicated team in the support of making Rockland County a safer community.”
According to the allegations in the Indictment and other documents in the public record:
The defendants were part of a sophisticated drug trafficking organization (the “Organization”) that operated in the area of Rockland County, New York. The Organization, led by defendant VICTOR ESTEBAN, distributed massive quantities of oxycodone and heroin, often in highly public locations, including at the Palisades Center Mall in West Nyack, New York.
Since 2014, members and associates of the Organization have conspired to distribute more than 50,000 oxycodone tablets, with a value in excess of $1 million, in and around Rockland County. The defendants obtained the oxycodone through deceptive means, including the use of forged and fraudulent prescriptions. For example, defendant JUSHAWN STEVENS used his home computer to fill out official blank New York State prescriptions with fraudulent information about purported patients and prescribing doctors. Law enforcement officers also identified a defendant posing as a doctor on the phone when a pharmacy called to inquire about an oxycodone prescription. After generating fraudulent prescriptions, the defendants employed lower-level members of the Organization, known as “runners,” to go to pharmacies across New York State to fill the fraudulent prescriptions.
The principal supplier of heroin to the Organization was JUAN AGRAMONTE, who was based in the Bronx. ESTEBAN pooled money with other defendants to purchase significant quantities of heroin from AGRAMONTE, which they then distributed in locations around Rockland County.
The defendants distributed oxycodone and heroin in a multitude of public places. They sold these illicit drugs in the parking lots of the Palisades Center Mall in West Nyack, New York, at the Mt. Ivy Trailer Park in Pomona, New York, and in various motels around Rockland County, where they would rent rooms to meet with customers.
Certain defendants also celebrated their oxycodone and heroin trafficking activity on social media sites like Twitter and Instagram. Some of the defendants referred to themselves as the “TMC” crew, meaning “Too Much Cash.” For example, on one occasion, a defendant posted a message on Twitter saying, “Shout out my TMC bros we taking over the streets.” On another occasion, a defendant posted a message on Twitter saying, “I make money without a 9-5 gimmie some feens a trap fone and I’ll be fine . . . ,” meaning that he did not need a legitimate job, but rather only some drug addicts and a “trap phone” with which to arrange drug deals. This defendant also posted a message saying, “The feds just wanna see me in jail.”
The Indictment charges 17 defendants and contains two counts. Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Drug Enforcement Administration’s Tactical Diversion Squad (Group TDS-NY), which comprises agents and officers from the DEA, the New York City Police Department, Town of Orangetown Police Department and the Westchester County Police Department. He also thanked the Rockland County District Attorney’s Office for its participation, and the Internal Revenue Service for its assistance.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys George Turner and Douglas Zolkind are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v. Esteban et al Indictment
Schlumberger Oilfield Holdings, Ltd. Agrees to Plead Guilty and Pay over $232.7 Million for Violating U.S. Sanctions by Facilitating Trade with Iran and SudanRead the Press Release
WASHINGTON –Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd., has agreed to enter a guilty plea and to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan, U.S. Attorney Ronald C. Machen Jr. announced today.
“This is a landmark case that puts global corporations on notice that they must respect our trade laws when on American soil,” said U.S. Attorney Machen. “Even if you don’t directly ship goods from the United States to sanctioned countries, you violate our laws when you facilitate trade with those countries from a U.S.-based office building. For years, in a variety of ways, this foreign company facilitated trade with Iran and Sudan from Sugar Land, Texas. Today’s announcement should send a clear message to all global companies with a U.S. presence: whether your employees are from the U.S. or abroad, when they are in the United States, they will abide by our laws or you will be held accountable.”
Assistant Attorney General for National Security John P. Carlin and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS) joined in the announcement.
The plea agreement, which is contingent upon the court’s approval, requires that SOHL pay the U.S. government $232,708,356 and enter into a three-year period of corporate probation. SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.
The plea agreement also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law. In addition to SOHL’s commitments, under the plea agreement, SOHL’s parent company, Schlumberger Ltd., has also agreed to the following additional terms during the three-year term of probation, inter alia: (1) maintaining its cessation of all operations in Iran and Sudan, (2) reporting on the parent company’s compliance with sanctions, (3) responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and (4) hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance.
The guilty plea concludes a joint investigation commenced in 2009 and led by the U.S. Attorney’s Office for the District of Columbia, the Justice Department’s National Security Division, and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) Dallas Field Office.
The U.S. Attorney’s Office for the District of Columbia is a national leader in export enforcement cases designed to stem the flow of weapons, technology, and other goods to sanctioned countries and entities overseas, including Iran, Sudan, and Cuba. Additionally, over the past five years, the U.S. Attorney’s Office has obtained more than $1.5 billion in recoveries from European banks – including ABN Amro Bank, ING Bank N.V., Standard Chartered Bank, and Commerzbank AG – that have admitted moving money illegally through the U.S. financial system on behalf of sanctioned countries and entities, including Iran, Sudan, and Cuba.
“Over a period of years, Schlumberger Oilfield Holdings Ltd. conducted business with Iran and Sudan from the United States and took steps to disguise those business dealings, thereby willfully violating the U.S. economic sanctions against those regimes,” said Assistant Attorney General Carlin. “The International Emergency Economic Powers Act is an essential tool that the United States uses to address foreign threats to national security through the regulation of commerce. Knowingly circumventing sanctions undermines their efficacy and has the potential to harm both U.S. national security and foreign policy objectives. The guilty plea and significant financial penalty in this case underscore that skirting sanctions for financial gain is a risk corporations ought not take.”
“Today's criminal guilty plea demonstrates the Commerce Department’s commitment to aggressively prosecute multinational corporations for violations involving embargoed destinations,” said Under Secretary Hirschhorn. “We will continue to pursue violators wherever they are located and whatever their size. I commend the Office of Export Enforcement and the Department of Justice for their outstanding efforts to investigate and prosecute this case.”
A criminal information was filed today in federal court in the District of Columbia charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA. SOHL waived the requirement of being charged by way of federal Indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees by entering into a plea agreement with the government.
In addition to SOHL’s agreement to continue its cooperation with U.S. authorities throughout the three-year period of probation and not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., also has agreed to continue its cooperation with U.S. authorities during the three-year period of probation, and hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.
Summary of the Criminal Conduct
According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL. Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures. As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan.
The Illegal Schemes
Illegal U.S. Person Approval of Capital Expenditures. According to court documents, one of the important functions of D&M management personnel was the supervision of D&M’s capital expenditure (CAPEX) process. The CAPEX process was a forecasting mechanism enabling oilfield locations to predict what tools and equipment they would need to meet anticipated demand for oilfield services. Oilfield personnel worldwide made requests through an automated system for the manufacture of new tools and for permission to spend money for certain purchases in order to support oilfield operations. Once approved by the D&M Global Asset Manager in the United States, a request for new equipment was transmitted to one of three manufacturing centers for the production of new tools and other assets. The spending of funds for large-scale purchases was authorized once the request was approved by the D&M Global Asset Manager. Under the CAPEX process in place during the relevant time period, approval by the D&M Global Asset Manager, a U.S. person, was required for every CAPEX request, including requests submitted by or for the benefit of D&M oilfields in Iran and Sudan.
Consequently, D&M’s CAPEX process violated sanctions with Iran and Sudan in a number of ways. Although CAPEX approvals were ordinarily sought through an automated computer system, D&M personnel outside the United States frequently sent emails to the D&M Global Asset Manager in the United States justifying particular requests, many of which related to requests submitted by or on behalf of Iran and Sudan. Furthermore, in these email communications, D&M personnel outside the United States referred to Iran as “Northern Gulf” and Sudan as “Southern Egypt” or “South Egypt” in email communications with D&M personnel in the United States.
In addition, D&M personnel outside the United States implemented a process designed to disguise the identities of the embargoed locations in the automated computer system in order to obtain approval from the D&M Global Asset Manager in the United States. Orders entered into the automated computer system were identified by a series of numbers and letters. Typically, the alpha-numeric identifier included a two or three-letter code indicating the country that placed the order. Instead of entering the country code for Iran or Sudan, D&M personnel entered non-embargoed country codes for embargoed location orders. Specifically, the code “BGM,” which identified a bonded-goods warehouse in Jebel Ali, United Arab Emirates, was used in place of the Iran and Sudan country codes in order to disguise the true locations. These efforts were deliberately taken and demonstrate the company’s involvement in contriving ways intended to evade restrictions imposed by U.S. sanctions.
D&M Headquarters Involvement in Iran and Sudan. According to court documents, separate and apart from the illegal CAPEX approval process that violated U.S. sanctions, D&M headquarters personnel made and implemented business decisions involving D&M operations in Iran and Sudan—again, all in violation of U.S. sanctions’ restrictions on the facilitation of trade with Iran and Sudan. D&M’s illegal involvement in the day-to-day operations in Iran and Sudan, through U.S. persons working at D&M headquarters, occurred with D&M’s knowledge and understanding of the applicability of U.S. sanctions laws to the company.
Technical Services. According to court documents, when technical problems arose in oilfield locations related to the operation of drilling tools, D&M personnel would enter relevant information about the technical issue into an automated computer system. D&M’s automated computer system would generally route the query to a technical expert who could assist the oilfield location in addressing the technical issue. If the technical issue was sufficiently complex, the query would ordinarily be routed to the technical experts located at the product center that manufactured the tool. At times, queries entered by, or on behalf of, D&M personnel in Iran and Sudan were addressed by D&M personnel located in the United States. The technical services provided to Iranian and Sudanese operations, by U.S. persons, violated the prohibitions of trade with Iran and Sudan required by U.S. sanctions.
SOHL and Schlumberger’s Remediation Efforts
In 2009, in consultation with the U.S. Department of State, Schlumberger agreed to no longer pursue new oilfield contracts in Iran. In 2011, Schlumberger voluntarily decided to cease providing oilfield services in Iran and the Republic of the Sudan (North Sudan). As of June 30, 2013, Schlumberger ceased providing oilfield services in Iran, and presently, Schlumberger has ceased providing oilfield services in North Sudan as well.
In announcing the plea, U.S. Attorney Machen, Assistant Attorney General Carlin and Under Secretary Hirschhorn commended the work of Special Agent Troy Shaffer from BIS’s Dallas Field Office. They also acknowledged the work of those who handled the case from the U.S. Attorney’s Office and DOJ’s National Security Division, including former Assistant U.S. Attorneys John Borchert and Ann H. Petalas and former Trial Attorney Ryan Fayhee.
The case is being prosecuted by Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the Asset Forfeiture and Money Laundering Section, both of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Casey Arrowood of DOJ’s National Security Division.
Schlumberger Oilfield Holdings Ltd. Agrees to Plead Guilty and Pay over $232.7 Million for Violating US Sanctions by Facilitating Trade with Iran and SudanRead the Press Release
Parent Company, Schlumberger Ltd., Also Agrees to Continue Cooperation With U.S. Authorities and To Hire an Independent Consultant to Review Its Sanctions Policies, Procedures and Internal Sanctions Audits
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security announced today that Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd., has agreed to enter a guilty plea and to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.
The plea agreement, which is contingent upon the court’s approval, also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law. In addition to SOHL’s commitments, under the plea agreement, SOHL’s parent company, Schlumberger Ltd., has also agreed to the following additional terms during the three-year term of probation, inter alia: (1) maintaining its cessation of all operations in Iran and Sudan, (2) reporting on the parent company’s compliance with sanctions, (3) responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and (4) hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance. The guilty plea concludes a joint investigation commenced in 2009 and led by the Justice Department’s National Security Division, the U.S. Attorney’s Office for the District of Columbia and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) Dallas Field Office.
“Over a period of years, Schlumberger Oilfield Holdings Ltd. conducted business with Iran and Sudan from the United States and took steps to disguise those business dealings, thereby willfully violating the U.S. economic sanctions against those regimes,” said Assistant Attorney General Carlin. “The International Emergency Economic Powers Act is an essential tool that the United States uses to address foreign threats to national security through the regulation of commerce. Knowingly circumventing sanctions undermines their efficacy and has the potential to harm both U.S. national security and foreign policy objectives. The guilty plea and significant financial penalty in this case underscore that skirting sanctions for financial gain is a risk corporations ought not take.”
“This is a landmark case that puts global corporations on notice that they must respect our trade laws when on American soil,” said U.S. Attorney Machen. “Even if you don’t directly ship goods from the United States to sanctioned countries, you violate our laws when you facilitate trade with those countries from a U.S.-based office building. For years, in a variety of ways, this foreign company facilitated trade with Iran and Sudan from Sugar Land, Texas. Today’s announcement should send a clear message to all global companies with a U.S. presence: whether your employees are from the U.S. or abroad, when they are in the United States, they will abide by our laws or you will be held accountable.”
“Today's criminal guilty plea demonstrates the Commerce Department’s commitment to aggressively prosecute multinational corporations for violations involving embargoed destinations,” said Under Secretary Hirschhorn. “We will continue to pursue violators wherever they are located and whatever their size. I commend the Office of Export Enforcement and the Department of Justice for their outstanding efforts to investigate and prosecute this case.”
A criminal information was filed today in federal court in the District of Columbia charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA. SOHL waived the requirement of being charged by way of federal Indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees by entering into a plea agreement with the government. The plea agreement, which is contingent upon the court’s approval, requires that SOHL pay the U.S. government $232,708,356 and enter into a three-year period of corporate probation. SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.
In addition to SOHL’s agreement to continue its cooperation with U.S. authorities throughout the three-year period of probation and not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., also has agreed to continue its cooperation with U.S. authorities during the three-year period of probation, and hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.
Summary of the Criminal Conduct
According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL. Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures. As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan.
The Illegal Schemes
Illegal U.S. Person Approval of Capital Expenditures. According to court documents, one of the important functions of D&M management personnel was the supervision of D&M’s capital expenditure (CAPEX) process. The CAPEX process was a forecasting mechanism enabling oilfield locations to predict what tools and equipment they would need to meet anticipated demand for oilfield services. Oilfield personnel worldwide made requests through an automated system for the manufacture of new tools and for permission to spend money for certain purchases in order to support oilfield operations. Once approved by the D&M Global Asset Manager in the United States, a request for new equipment was transmitted to one of three manufacturing centers for the production of new tools and other assets. The spending of funds for large-scale purchases was authorized once the request was approved by the D&M Global Asset Manager. Under the CAPEX process in place during the relevant time period, approval by the D&M Global Asset Manager, a U.S. person, was required for every CAPEX request, including requests submitted by or for the benefit of D&M oilfields in Iran and Sudan.
Consequently, D&M’s CAPEX process violated sanctions with Iran and Sudan in a number of ways. Although CAPEX approvals were ordinarily sought through an automated computer system, D&M personnel outside the United States frequently sent emails to the D&M Global Asset Manager in the United States justifying particular requests, many of which related to requests submitted by or on behalf of Iran and Sudan. Furthermore, in these email communications, D&M personnel outside the United States referred to Iran as “Northern Gulf” and Sudan as “Southern Egypt” or “South Egypt” in email communications with D&M personnel in the United States.
In addition, D&M personnel outside the United States implemented a process designed to disguise the identities of the embargoed locations in the automated computer system in order to obtain approval from the D&M Global Asset Manager in the United States. Orders entered into the automated computer system were identified by a series of numbers and letters. Typically, the alpha-numeric identifier included a two or three-letter code indicating the country that placed the order. Instead of entering the country code for Iran or Sudan, D&M personnel entered non-embargoed country codes for embargoed location orders. Specifically, the code “BGM,” which identified a bonded-goods warehouse in Jebel Ali, United Arab Emirates, was used in place of the Iran and Sudan country codes in order to disguise the true locations. These efforts were deliberately taken and demonstrate the company’s involvement in contriving ways intended to evade restrictions imposed by U.S. sanctions.
D&M Headquarters Involvement in Iran and Sudan. According to court documents, separate and apart from the illegal CAPEX approval process that violated U.S. sanctions, D&M headquarters personnel made and implemented business decisions involving D&M operations in Iran and Sudan—again, all in violation of U.S. sanctions’ restrictions on the facilitation of trade with Iran and Sudan. D&M’s illegal involvement in the day-to-day operations in Iran and Sudan, through U.S. persons working at D&M headquarters, occurred with D&M’s knowledge and understanding of the applicability of U.S. sanctions laws to the company.
Technical Services. According to court documents, when technical problems arose in oilfield locations related to the operation of drilling tools, D&M personnel would enter relevant information about the technical issue into an automated computer system. D&M’s automated computer system would generally route the query to a technical expert who could assist the oilfield location in addressing the technical issue. If the technical issue was sufficiently complex, the query would ordinarily be routed to the technical experts located at the product center that manufactured the tool. At times, queries entered by, or on behalf of, D&M personnel in Iran and Sudan were addressed by D&M personnel located in the United States. The technical services provided to Iranian and Sudanese operations, by U.S. persons, violated the prohibitions of trade with Iran and Sudan required by U.S. sanctions.
SOHL and Schlumberger’s Remediation Efforts
In 2009, in consultation with the U.S. Department of State, Schlumberger agreed to no longer pursue new oilfield contracts in Iran. In 2011, Schlumberger voluntarily decided to cease providing oilfield services in Iran and the Republic of the Sudan (North Sudan). As of June 30, 2013, Schlumberger ceased providing oilfield services in Iran, and presently, Schlumberger has ceased providing oilfield services in North Sudan as well.
In announcing the plea, Assistant Attorney General Carlin and U.S. Attorney Machen commended the work of Special Agent Troy Shaffer from BIS’s Dallas Field Office. They also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.
The case is being prosecuted by Trial Attorney Casey Arrowood of the National Security Division, Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the Asset Forfeiture and Money Laundering Section.
Schlumberger Plea Agreement
Schlumberger Statement of Offense
Schlumberger Information
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jaime Juan Alvarado, 36, of Roswell, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Alvarado was arrested on Jan. 20, 2015, in Roswell after agents and officers from the DEA, Chaves County Metro Narcotics Task Force and the Lea County Drug Task Force executed a federal search warrant at his residence. According to the criminal complaint, the law enforcement officers seized approximately 35.7 grams of methamphetamine, heroin, several safes and a digital scale when they executed the search.
During today’s proceedings, Alvarado pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Alvarado admitted that on Jan. 20, 2015, in Chaves County, N.M., agents executed a federal search warrant on his residence and found methamphetamine in his kitchen which he planned to distribute to others.
Alvarado remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Alvarado faces a maximum of 20 years in federal prison followed by a minimum of three years of supervised release.
This case was investigated by the Las Cruces office of the DEA, the Chaves County Metro Narcotics Task Force and the Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
The Chaves County Metro Narcotics Task Force and the Lea County Drug Task Force are part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Rochester Attorney Sentenced for Obtaining A Controlled Substance by MisrepresentationRead 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 Salvatore J. Marcera, Jr., 54, of Rochester, NY, who was convicted of obtaining a controlled substance by misrepresentation, was sentenced to three years probation by U.S. District Judge Frank P. Geraci, Jr. Marcera also was ordered to pay restitution to Excellus BlueCross BlueShield in the amount of $1,965.71.Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that on July 28, 2006, the defendant was a sole practitioner attorney in Rochester. Marcera obtained prescriptions from a medical doctor, including OxyContin and Roxycodone, both of which contain oxycodone, a Schedule II controlled substance. The defendant did this on behalf of his brother, who was incarcerated in the Monroe County Jail at the time. In order to obtain the prescriptions, Marcera claimed that the drugs were medically necessary for his brother, knowing that in fact the prescriptions were not medically necessary.
After obtaining the prescriptions, the defendant then gave them to another family member knowing that family members would arrange to have the prescriptions filled at a pharmacy on behalf of Marcera’s brother. The prescriptions were subsequently filled at a pharmacy and paid for by Excellus BlueCross BlueShield.
As part of the same case, Marcera was previously convicted of filing a false personal income tax return for tax years 2004 through 2007 by understating the gross receipts of his law practice. The defendant was sentenced in March 2014 to five years of probation, including one year of home confinement, on the tax charges. Marcera also was ordered to pay restitution to the Internal Revenue Service in the amount of $104,074.
As part of the sentencing proceeding, Marcera reported to the Court that his law license has been suspended and that he is subject to further disciplinary proceedings in May 2015 before the Appellate Division, Fourth Judicial Department of the Supreme Court of the State of New York.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas F. O’Donnell, as well as Investigators from the New York State Insurance Department's Frauds Bureau, under the direction of Frank Orlando.
Prior Felon from Eunice Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Ramon Perez, Sr., 33, of Eunice, N.M., pleaded guilty this morning in federal court in Las Cruces, N.M., to violating federal firearms laws. Under the terms of his plea agreement, Perez will be sentenced to 72 months in federal prison followed by a term of supervised release to be determined by the court.
Perez is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Perez was arrested on Nov. 17, 2014, on an indictment charging him with unlawfully possessing firearms and ammunition on Dec. 31, 2013, in Lea County, N.M. At the time, Perez was prohibited from possessing firearms and ammunition because he previously had been convicted of numerous felony offenses including possession of cocaine, discharging a firearm, possession of narcotics with intent to distribute, possession of a firearm during the commission of a felony and possession of a controlled substance.
During today’s proceedings, Perez pled guilty to the indictment and admitted possessing three pistols, two of which had obliterated serial numbers, and multiple rounds of ammunition.
Perez has been in federal custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lea County Drug Task Force and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Previously Convicted Owings Mills Sex Offender Pleads Guilty to Possession of Child PorngraphyRead the Press Release
Baltimore, Maryland – Shawn Joseph Eisenstein, age 28, of Owings Mills, Maryland, pleaded guilty today to possession of child pornography. Eisenstein was previously convicted of distribution of child pornography in Baltimore County and was required to register as a sex offender.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Eisenstein’s plea agreement, on May 28, 2008, in the Circuit Court for Baltimore County, Maryland, Eisenstein was convicted of distribution of child pornography, and was sentenced to five years’ incarceration, with three years and six months suspended. Eisenstein was placed on three years of probation upon his release from prison and was also ordered to register as a sex offender.
According to his plea agreement, in July 2014, Eisenstein uploaded images containing child pornography to his email account. Following the email provider’s discovery of the images, a search warrant for Eisenstein’s residence was executed on July 29, 2014. Eisenstein was present during the execution of the search warrant. After being advised of his rights, Eisenstein voluntarily spoke to the investigators and admitted to using his cell phone and his email accounts to trade files of child pornography with people he met on an image board website. He stated that he viewed the child pornography on his cell phone.
During the search warrant, investigator’s seized Eisenstein’s cell phone, which was forensically examined by a Baltimore County Computer Forensic Examiner (CFE), and found to contain over 100 images of children engaged in child pornography. In all, Eisenstein possessed over 600 images of child pornography, including pre-pubescent children and images portraying sadistic or masochistic conduct, or other depictions of violence.
Eisenstein further admitted that in October 2011, while still on probation for his previous conviction for distribution of child pornography, he used an email account to communicate with an undercover Baltimore County detective who represented himself as a 13 year old female. During those conversations Eisenstein discussed meeting the “girl” to engage in sexually explicit conduct.
As part of his plea agreement, Eisenstein must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Eisenstein and the government have agreed that if the Court accepts the plea agreement Eisenstein will be sentenced to 11 years in prison followed by up to a lifetime of supervised release. U.S. District Judge George L. Russell has scheduled sentencing for June 12, 2015, at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Police officer pleads guilty to accepting cash payments from Desperado’s Cabaret ownerRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Carencro Police officer pleaded guilty to receiving cash payments from James Panos, former owner and manager of Desperado’s Cabaret, while the officer was in charge of regulating exotic dancer permits for the Carencro Police Department, and during a time Desperado’s operated as an illegal enterprise.
Timothy Prejean, 42, of Carencro, La., pleaded guilty before U.S. District Judge Richard T. Haik to interference with commerce by extortion under color of official right. According to evidence presented at the guilty plea, Prejean accepted cash payments from James Panos during the years Prejean processed and delivered exotic dancer licenses for Desperado’s employees. Additionally, Prejean failed to investigate reported illegal activity at Desperado’s from 2007 to December 5, 2012. The illegal activity involved prostitution in the VIP room and drug distribution/use inside the business. During this time, Prejean was assigned as the liaison officer between the Carencro Police Department and Desperado’s for the purpose of enforcing local ordinances pertaining to exotic dancer licensing and related regulations.
Prejean improperly received a total of $10,000 in cash and other benefits from club owners James and Jennifer Panos while in performance of his regulatory duties. Other benefits included no cover charge to enter, free access to the VIP rooms, and free drinks.
James Panos, Jennifer Panos, and eight other defendants were charged in a 10-count indictment on May 15, 2013, alleging racketeering conspiracy, drug conspiracy, and firearms charges. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway.
“Timothy Prejean violated his oath of office and the public’s trust by failing to uphold the law and by taking cash payments from a corrupt business,” said Finley. “The people of Carencro deserve and expect more from their law enforcement officers. My Office will lead the charge in investigating and bringing to justice corrupt public officials.”
James Panos, Jennifer Panos and the remaining defendants were sentenced on August 7, 2014. As part of the plea agreement, the owners agreed to forfeit illegal proceeds already seized, return proceeds illegally earned, and they agreed to forfeit the Desperado’s property to include the building and land.
Prejean faces up to 20 years in prison, three years supervised release, and a $250,000 fine. A sentencing date was not set.
The DEA, FBI, U.S. Department of Homeland Security Investigations, Louisiana State Police, and Lafayette Metro Narcotics investigated the case. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy prosecuted the case.
Pineville Sex Offender Pleads Guilty to Producing Child Porn, Faces at Least 25 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Pineville, Mo., man who is a registered sex offender pleaded guilty in federal court today to producing child pornography.
Jeremy Wayne Law, 30, of Pineville, pleaded guilty before U.S. Magistrate Judge David P. Rush to attempting to use a minor to produce child pornography. Law, who was previously convicted of sexual abuse with a minor in New York, is a registered sex offender.
By pleading guilty today, Law admitted that he communicated via text messages with a 16-year-old female, identified as “T.C.,” who resided in New York. Investigators found pornographic images and videos of T.C. on Law’s computer. Law also admitted that he had twice engaged in sexual intercourse with T.C. in a vehicle and that he had sent her an image of his genitalia.
Under the terms of today’s plea agreement, the court is requested to impose a sentence of at least 25 years in federal prison without parole and not more than 35 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force, the Northwest Arkansas Internet Crimes Against Children Task Force, the McDonald County, Mo., Sheriff’s Department and the Hamburg, N.Y., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Prison Nurse Charged with Providing Contraband to Yazoo Federal InmateRead the Press Release
Jackson, Miss. – Lavonne Boose, 43, of Benton, appeared before U.S. Magistrate Judge Linda R. Anderson on March 23, 2015 for an arraignment pursuant to a Criminal Information charging her with providing contraband to a federal inmate, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway announced today.
Boose, who was employed as a nurse at the Yazoo Federal Corrections Complex, is charged with providing the inmate with a telephone, in violation of federal law. This case is set for trial on May 5, 2015. If convicted, Boose faces a maximum penalty of one year in federal prison and a $100,000 fine.
This case was investigated by the United States Department of Justice Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Patrick Lemon is prosecuting the case.
Prison Nurse Charged with Providing Contraband to Yazoo Federal InmateRead the Press Release
Jackson, Miss. – Lavonne Boose, 43, of Benton, appeared before U.S. Magistrate Judge Linda R. Anderson on March 23, 2015 for an arraignment pursuant to a Criminal Information charging her with providing contraband to a federal inmate, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway announced today.
Boose, who was employed as a nurse at the Yazoo Federal Corrections Complex, is charged with providing the inmate with a telephone, in violation of federal law. This case is set for trial on May 5, 2015. If convicted, Boose faces a maximum penalty of one year in federal prison and a $100,000 fine.
This case was investigated by the United States Department of Justice Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Patrick Lemon is prosecuting the case.
Nigerian Woman Pleads Guilty; Sentenced for Improper Use of A PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul. Jr. announced today that Elizabeth Afola Oyenekan, 42, of Nigeria, pleaded guilty to improper use of another’s passport. The defendant was sentenced to time served by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that the defendant attempted to enter the United States at the Peace Bridge Port of Entry on February 1, 2015. Oyenekan presented a Canadian passport to a Customs and Border Protection Officer bearing the name Diana Adetuni. When asked where she was born, Oyenekan stated Nigeria but quickly retracted and claimed she was born in Saint Vincent. The defendant also told the officer she was traveling to Brooklyn, NY to stay with a friend.
A search of the defendant’s luggage revealed a credit card in the name of E. O. Oyenekan which was a possible match to a previous Visa Waiver Refusal in Ireland in October 2014. An officer then entered the defendant’s fingerprints into a Fingerprint Identification System and determined that she was in fact Elizabeth Afola Oyenekan and not Diana Adetuni.
The plea and sentencing are the culmination of an investigation on the part of Customs and Border Protection, under the direction of Rose Hilmey, ActingDirector of Field Operations.
New York City Tax Return Preparer Indicted for Aiding or Assisting in Preparation of False Tax ReturnsRead the Press Release
A federal grand jury in the Eastern District of New York returned an indictment today charging a Brooklyn, New York, tax return preparer with 31 counts of aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, between 2008 and 2010, Phillip Baynes operated a tax preparation business called Small Mans Accounting and Tax Service in Brooklyn. During that time, Baynes allegedly prepared false individual income tax returns for taxpayer clients. On the returns, Baynes falsified business expenses and losses, charitable contributions and unreimbursed employee expenses.
If convicted, Baynes faces a statutory maximum sentence of three years in prison and a fine of $250,000 on each count.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mark Kotila and Brittney N. Campbell of the Tax Division, who are prosecuting the case.
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 proceeding.
Morgantown woman convicted of oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alicia Tavagilone, 21, of Morgantown, West Virginia, was convicted in federal court today of selling oxycodone in Monongalia County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Valley Drug and Violent Crime Task Force revealed that Tavagilone participated in a drug distribution operation designed to transport heroin and prescription painkillers across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale.
Tavagilone pled guilty today to one count of “Distribution of Oxycodone.” She faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Montgomery Vermont Man Sentenced in Cross-border Marijuana Trafficking ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont has stated that Roy “Opie” McAllister II, 39, of Montgomery, Vermont has been sentenced to prison for his role in a cross-border marijuana trafficking conspiracy. In September 2014, McAllister was convicted of two counts of tax filing false tax returns following a jury trial. The jury was unable to reach a verdict on the marijuana conspiracy charge and the Court declared a mistrial. A retrial was scheduled for December 2014. On November 24, 2014, before the retrial against McAllister on marijuana trafficking charges, McAllister pleaded guilty to conspiracy to distribute marijuana. McAllister has been ordered to serve 30 months in jail on each count of conviction, with the time periods to run concurrently. McAllister has also been ordered to pay a $25,000 fine and to serve three years of supervised release following his jail sentence. As a condition of his supervised release, McAllister has been ordered to file corrected tax returns and pay taxes owed to the Internal Revenue Service. McAllister will begin serving his jail sentence in April 2015.
McAllister, and his co-conspirator, Jeffrey Donna, have been described as kingpins in a marijuana trafficking business that began in the mid-2000s and continued until the two were arrested on May 29, 2013. The two defendants were responsible for bringing bulk quantities of marijuana across the Canadian border into northern Vermont for several years. According to the evidence of record, McAllister was responsible for between 1,000 and 3,000 kilograms of marijuana as part of the conspiracy. The marijuana trafficking has been characterized as a for-profit enterprise, in which McAllister made lavish expenditures using drug proceeds.
McAllister has been ordered to forfeit a home heating oil delivery truck used by McAllister Fuels, 115 Troy Street, Montgomery, Vermont, which the government alleged was bought with McAllister’s drug proceeds. He has also been ordered to forfeit more than 30 guns, two Harley Davidson motorcycles, a Polaris ATV, a Chevy Tahoe, a Ford F-150 Harley Davidson edition pick-up truck, a GMC Yukon and expensive jewelry purchased during the time of the conspiracy. A forfeiture action against his residence of 2404 Regan Road, Montgomery, Vermont, is pending.
As part of the marijuana trafficking conspiracy, McAllister and Donna were assisted by Jesse Soule, 48, also of Montgomery, Vermont. Soule was convicted in January 2014 of his role in the marijuana trafficking conspiracy. According to court records, Soule participated in the conspiracy by storing bulk marijuana on his farm. Soule is currently in jail serving a 13 month sentence. He has forfeited $250,000 in drug proceeds to the government and a Polaris ATV.
Kirt Westcom, 48, of Fairfield, Vermont, also has been convicted of conspiracy to distribute marijuana. He received bulk marijuana from Donna and McAllister at his farm on 262 Egypt Road, Fairfield, Vermont for several years. Westcom is currently in jail serving a 24 month sentence. Westcom has forfeited $135,000 to the government, as well as a Harley Davidson motorcycle, and a Ford F-350 pick-up truck.Seven other individuals have pleaded guilty to federal crimes arising out of this drug enforcement action in Franklin County, Vermont. They are Jeffrey Baisley, 32, of Richford, Vermont, Jeffrey Tatro, Jr., 28, of Richford, Vermont, Robert Patterson, 55, of Richford, Vermont, Jonathan Palermo, 29, of Essex, Vermont, and Benjamin Pratt, 32, of Colchester, Vermont, who all have been convicted of conspiracy to distribute marijuana. Eric Jette, 32, of Enosburg, Vermont and Johnthan Aldrich, 34, of Richford, Vermont also have been convicted of federal drug charges.
The United States Attorney’s Office would like to thank the United States Border Patrol, the Franklin County Sheriff’s Office, and the Drug Enforcement Administration for their work in conducting this investigation. This investigation was also assisted by the United States Internal Revenue Service and the Bureau of Alcohol, Tobacco and Firearms.
The United States was represented by Assistant U.S. Attorney Heather Ross. Roy McAllister II was represented by Peter Langrock, Langrock Sperry & Wool.
Minnesota National Guardsman Indicted for Producing Child Pornography While Deployed to AfghanistanRead the Press Release
A Minnesota National Guardsman was indicted last week for inducing a 14 year-old girl to send him nude photos over the Internet while he was deployed to Afghanistan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
Andrew Schiller, 28, of Lakeville, Minnesota, is charged with one count of production of child pornography. Schiller was ordered detained pending trial today by U.S. Magistrate Judge Becky R. Thorson of the District of Minnesota.
According to allegations in the indictment and the government’s request for pretrial detention, between Sep. 23, 2013, and Jan. 12, 2014, Schiller contacted a 14 year-old girl from Minnesota via Skype. During repeated communications with the girl, Schiller allegedly requested that she send sexually explicit photos of herself to him. The victim allegedly sent several images in response to Schiller’s requests, including at least one sexually explicit image.
According to additional allegations in the government’s request for pretrial detention, Schiller used various social media platforms to communicate online with dozens of girls between the ages of 13 and 17. Among those platforms were MyLOL (“funinlife”), Skype (“thriller_a_schiller3”), Meet Me (“mnfuntimes”) and Facebook. Schiller also allegedly used KIK, an instant messaging application for mobile devices that allows users to share photographs and other content. After establishing online contact with the girls, Schiller allegedly directed the conversation to sexual topics and attempted to convince the girls to send sexually explicit videos or images of themselves to him. Schiller allegedly shared sexually explicit images of himself to encourage the girls to send photographs and videos of themselves, and he sometimes promised money or alcohol in exchange for sexually explicit images or live video chats.
The charges contained in the indictment and the allegations contained in the government’s request for pretrial detention are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Anyone with additional information about this case can call the FBI Minneapolis Field Office at 763-569-8000. If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is being investigated by the Army Criminal Investigative Division and the FBI. This case is being prosecuted by Trial Attorney Jeffrey H. Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota.
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.
Schiller Indictment
Schiller Detention Memo
Minnesota National Guardsman Indicted for Producing Child Pornography While Deployed to AfghanistanRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the indictment of a Minnesota National Guardsman for inducing a 14 year-old girl to send him nude photos over the Internet while he was deployed to Afghanistan. ANDREW SCHILLER, 28, of Lakeville, Minnesota, is charged with one count of production of child pornography. SCHILLER was ordered detained pending trial today by U.S. Magistrate Judge Becky R. Thorson of the District of Minnesota.
According to the indictment and the government’s request for pretrial detention, between September 23, 2013, and January 12, 2014, SCHILLER contacted a 14 year-old girl from Minnesota via Skype. During repeated communications with the girl, SCHILLER allegedly requested that she send sexually explicit photos of herself to him. The victim allegedly sent several images in response to SCHILLER’s requests, including at least one sexually explicit image.
According to additional allegations in the government’s request for pretrial detention, SCHILLER used various social media platforms to communicate online with dozens of girls between the ages of 13 and 17. Among those platforms were MyLOL (“funinlife”), Skype (“thriller_a_schiller3”), Meet Me (“mnfuntimes”) and Facebook. SCHILLER also allegedly used KIK, an instant messaging application for mobile devices that allows users to share photographs and other content. After establishing online contact with the girls, SCHILLER allegedly directed the conversation to sexual topics and attempted to convince the girls to send sexually explicit videos or images of themselves to him. SCHILLER allegedly shared sexually explicit images of himself to encourage the girls to send photographs and videos of themselves, and he sometimes promised money or alcohol in exchange for sexually explicit images or live video chats.
Anyone with additional information about this case can call the FBI Minneapolis Field Office at 763-569-8000. If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800- 843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the Army Criminal Investigative Division and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota and Trial Attorney Jeffrey H. Zeeman of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.
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.
Defendant Information:
ANDREW SCHILLER, 28
Lakeville, Minn.
Charges:
• Production of child pornography, 1 countThe charges contained in the indictment and the allegations contained in the government’s request for pretrial detention are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Milton Man, Scott Taylor, Sentenced to 48 Months in Jail for Possession of Stolen FirearmsRead the Press Release
Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Scott Taylor, 21, of Milton, Vermont, was sentenced on March 25, 2015 by United States District Court Judge William K. Sessions III, to 48 months in prison for being in possession of stolen firearms. Taylor was also sentenced to 3 years of supervised release following his release from prison.
According to Court records, Taylor committed a number of residential burglaries in Vermont during which he stole firearms and other items. Subsequently, Taylor traded some of the stolen firearms to an out-of-state drug dealer in exchange for heroin.
Taylor was indicted by a federal grand jury on March 20, 2014. He pled guilty to possessing stolen firearms on August 18, 2014. He has been detained in prison since October 7, 2014.
This case was investigated by the Vermont State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). The United States Attorney, Eugenia A. P. Cowles, commends those agencies for their work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney Michael Desautels of the Office of the Federal Public Defender.
Milford Man Sentenced to Prison for Stealing $292K in SSA Benefits Deposited into Deceased Mother's AccountRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM E. CHASE, 69, of Milford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, followed by three years of supervised release, for stealing his deceased mother’s social security benefits for more than 25 years.
According to court documents and statements made in court, CHASE’s mother, a Social Security benefits recipient, died in November 1988. At the time of his mother’s death, CHASE was a co-signor on the checking account into which his mother’s monthly Social Security benefits were deposited. Despite the fact that CHASE was identified as the informant on his mother’s death certificate in 1988, he failed to notify the Social Security Administration of her death or take any steps to stop the monthly benefit payments. From the time of his mother’s death until May 2014, $307,396 in Social Security benefits were direct deposited into the bank account controlled by CHASE. CHASE utilized more than $292,000 of the deposited benefits for his personal use and enjoyment.
In May 2014, the bank returned the remaining balance of the checking account, approximately $14,761, to the Social Security Administration.
CHASE was ordered to pay full restitution.
On December 3, 2014, CHASE pleaded guilty to one count of theft of public funds.
This matter was investigated by the Social Security Administration, Office of Inspector General – Office of Investigations, and was prosecuted by Assistant U.S. Attorney Anastasia Enos King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mifflin County Man Sentenced for Passing Counterfeit MoneyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Mifflin County man has been sentenced for his involvement in passing counterfeit $100 Federal Reserve notes.
According to U.S. Attorney Peter Smith, Mohammed Abughaniyeh, age 31, resident of Laury’s Station, Pennsylvania, was sentenced by U.S. District Court Judge Yvette Kane to 10 months’ imprisonment. Abughaniyeh previously pleaded guilty to a felony criminal indictment on September 5, 2014, alleging that from October 2013 to November 2013, he passed counterfeit $100 Federal Reserve notes at local businesses and fruit stands generally located in Mifflin County. Abughaniyeh would buy small items to get genuine U.S. currency in exchange.
The case was investigated by U.S. Secret Service, Pennsylvania State Police, Mifflin County Regional Police Department, Sandy Township Police Department, and Logan Township. Prosecution was assigned to Assistant United States Attorney Daryl F. Bloom.
Metro Denver Bank Executive Vice President Indicted for EmbezzlementRead the Press Release
DENVER – Candice L. White, age 42, of Centennial, Colorado, is scheduled to appear before a U.S. Magistrate Judge this afternoon after a federal grand jury in Denver indicted her on charges of embezzlement and willful misapplication of funds by a bank officer or employee, reported the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI) and the Special Inspector General of Troubled Asset Relief Program (SIGTARP).
According to the indictment, White was a Senior Vice President of Front Range Bank. From July 2009 through March 2011 she allegedly embezzled more than $92,000 from the bank for her own personal use and for the use of others. In addition, White is charged with willfully misapplying additional funds from other client accounts to an escrow account from which White embezzled the majority of the $92,000 in order to conceal and facilitate her ongoing criminal activity.
Because Front Range Bank received TARP funds, the Special Inspector General (SIGTARP) assisted the FBI in the investigation.
White faces 37 felony counts of embezzlement and willful misapplication of funds from a federally insured bank. If convicted on those counts, she faces not more than 30 years in federal prison, and up to a $250,000 per count. She also faces two misdemeanor counts of embezzlement and willful misapplication of funds from a federally insured bank. If convicted on those counts, she faces not more than 1 year in federal prison, and up to a $100,000 fine.
The defendant is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.Mason City Man Sentenced to Federal Prison for Cerro Gordo County Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced March 23, 2015, to more than 21 years in federal prison.
Christopher Lee Evenson, 32, from Mason City, Iowa, received the prison term after a November 14, 2014, guilty plea to conspiracy to distribute methamphetamine and to possession with intent to distribute methamphetamine. Evenson was previously convicted of possession of marijuana with intent to deliver in 2004.
At the guilty plea, Evenson admitted his involvement from January 2014 through August 2014, in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine. Evenson was found in possession of 109.75 grams of methamphetamine in August 2014, when the vehicle in which he was a passenger was stopped. The methamphetamine was located under the front passenger seat, where Evenson was seated. Evenson admitted to selling approximately a pound of ice methamphetamine.
Evenson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Evenson was sentenced to 262 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system. Evenson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3048.
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Lockport Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that George Krajas, 46, of Lockport, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to time-served by Senior U.S. District Judge William M. Skretny.Assistant U.S. Frank T. Pimentel, who handled the case, stated that between November 2010 and June 16, 2011, the defendant permitted co-defendant Charles Palmer to use the automotive garage Krajas operated at 2307 Broadway, Cheektowaga, NY to process and distribute cocaine. Krajas also traded cocaine to other co-conspirators in exchange for hydrocodone.
Charles Palmer has been convicted and is scheduled to be sentenced on April 22, 2015 at 10:00 a.m. before Judge Skretny.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force.
Leader of Contraband Cigarettes Trafficking Conspiracy Sentenced in Manhattan Federal Court to 78 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MOHAMMED ALAZZAM was sentenced today in Manhattan federal court to 78 months in prison, and to restitution in the amount of $36,195,000. ALAZZAM was sentenced for organizing and leading a conspiracy to distribute untaxed cigarettes in and around New York City and Westchester County, and bail jumping. The sentence was imposed by the Honorable Loretta A. Preska, United States District Judge.
U.S. Attorney Preet Bharara said: “For years, Mohammed Alazzam ran an underground black market for untaxed cigarettes, costing more than $36 million in tax revenue and netting millions of dollars for himself. His conduct deprived New York’s system for taxing cigarettes – which is designed to protect public health and save lives – of millions of dollars. Today’s sentence requires Alazzam to pay for his greed by forfeiting money and his liberty.”
According to the Indictment, court hearings, and today’s proceedings:
From late 2008 through May 2011, when ALAZZAM and his co-conspirators were arrested in this case, a criminal organization led by ALAZZAM and Yacoub Kanan (the “Alazzam Organization”) ran a black market for untaxed, contraband cigarettes in the New York metropolitan area. The Alazzam Organization obtained its supply of contraband cigarettes from, among other places, the Poospatuck Reservation, in Suffolk County, New York, in quantities ranging from 300 cartons to more than 1,000 cartons at a time, for which no New York State or city taxes were paid. Once obtained, the supply of contraband cigarettes was routinely stored by the Alazzam Organization in private storage facilities, including in Yonkers, New York, and Mt. Vernon, New York. The contraband cigarettes were thereafter distributed from the storage facilities to others by way of the backs of pick-up trucks and other vehicles that traveled to and from the facilities regularly.
ALAZZAM was the leader of the organization. He organized the criminal conspiracy by, among other things, arranging for a regular supply of contraband cigarettes, paying for the supply in amounts of more than $100,000 on a sometimes weekly basis, arranging for and renting storage locations to store the cigarettes, recruiting and instructing members of the conspiracy to transport and sell the contraband cigarettes, and, when those members were arrested, bailing them out and arranging for their representation by counsel.
The Alazzam Organization was responsible for distributing approximately 100 cases of contraband cigarettes per week during the conspiracy, from December 2008 until the arrest of Alazzam and his co-conspirators in May 2011. This resulted in a total estimated tax loss of $36,195,000. The estimated wholesale value of the contraband cigarettes is $26,250,000, and the retail value is far greater. During the conspiracy, ALAZZAM bragged that his personal net profit from the criminal organization was in excess of a million dollars annually.
On May 13, 2011, ALAZZAM and ten co-conspirators were indicted for conspiracy to traffic untaxed cigarettes. While charges in this case were pending and less than two months before the scheduled trial, ALAZZAM, who had been released on conditions of bail, fled to Jordan. He thereby failed to appear for pre-trial conferences and the scheduled trial, which appearances were required as a condition of his release. On September 13, 2013, ALAZZAM voluntarily returned to the U.S. and surrendered to law enforcement officers. ALAZZAM pled guilty in April 2014.
ALAZZAM is the eighth defendant and member of the conspiracy to be sentenced in the case. Yacoub Kanan remains at large, while the other two defendants pled guilty and await sentencing.
In addition to the prison time and restitution, ALAZZAM, 49, of Westchester County, was ordered to forfeit $2,500,000.
Mr. Bharara praised the efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their investigation in this case.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Benjamin Allee and Rachel Maimin are in charge of the prosecution.
Leader of Contraband Cigarettes Trafficking Conspiracy Sentenced in Manhattan Federal Court to 78 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MOHAMMED ALAZZAM was sentenced today in Manhattan federal court to 78 months in prison, and to restitution in the amount of $36,195,000. ALAZZAM was sentenced for organizing and leading a conspiracy to distribute untaxed cigarettes in and around New York City and Westchester County, and bail jumping. The sentence was imposed by the Honorable Loretta A. Preska, United States District Judge.
U.S. Attorney Preet Bharara said: “For years, Mohammed Alazzam ran an underground black market for untaxed cigarettes, costing more than $36 million in tax revenue and netting millions of dollars for himself. His conduct deprived New York’s system for taxing cigarettes – which is designed to protect public health and save lives – of millions of dollars. Today’s sentence requires Alazzam to pay for his greed by forfeiting money and his liberty.”
According to the Indictment, court hearings, and today’s proceedings:
From late 2008 through May 2011, when ALAZZAM and his co-conspirators were arrested in this case, a criminal organization led by ALAZZAM and Yacoub Kanan (the “Alazzam Organization”) ran a black market for untaxed, contraband cigarettes in the New York metropolitan area. The Alazzam Organization obtained its supply of contraband cigarettes from, among other places, the Poospatuck Reservation, in Suffolk County, New York, in quantities ranging from 300 cartons to more than 1,000 cartons at a time, for which no New York State or city taxes were paid. Once obtained, the supply of contraband cigarettes was routinely stored by the Alazzam Organization in private storage facilities, including in Yonkers, New York, and Mt. Vernon, New York. The contraband cigarettes were thereafter distributed from the storage facilities to others by way of the backs of pick-up trucks and other vehicles that traveled to and from the facilities regularly.
ALAZZAM was the leader of the organization. He organized the criminal conspiracy by, among other things, arranging for a regular supply of contraband cigarettes, paying for the supply in amounts of more than $100,000 on a sometimes weekly basis, arranging for and renting storage locations to store the cigarettes, recruiting and instructing members of the conspiracy to transport and sell the contraband cigarettes, and, when those members were arrested, bailing them out and arranging for their representation by counsel.
The Alazzam Organization was responsible for distributing approximately 100 cases of contraband cigarettes per week during the conspiracy, from December 2008 until the arrest of Alazzam and his co-conspirators in May 2011. This resulted in a total estimated tax loss of $36,195,000. The estimated wholesale value of the contraband cigarettes is $26,250,000, and the retail value is far greater. During the conspiracy, ALAZZAM bragged that his personal net profit from the criminal organization was in excess of a million dollars annually.
On May 13, 2011, ALAZZAM and ten co-conspirators were indicted for conspiracy to traffic untaxed cigarettes. While charges in this case were pending and less than two months before the scheduled trial, ALAZZAM, who had been released on conditions of bail, fled to Jordan. He thereby failed to appear for pre-trial conferences and the scheduled trial, which appearances were required as a condition of his release. On September 13, 2013, ALAZZAM voluntarily returned to the U.S. and surrendered to law enforcement officers. ALAZZAM pled guilty in April 2014.
ALAZZAM is the eighth defendant and member of the conspiracy to be sentenced in the case. Yacoub Kanan remains at large, while the other two defendants pled guilty and await sentencing.
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In addition to the prison time and restitution, ALAZZAM, 49, of Westchester County, was ordered to forfeit $2,500,000.
Mr. Bharara praised the efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their investigation in this case.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Benjamin Allee and Rachel Maimin are in charge of the prosecution.
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Lafayette man pleads guilty to bomb threat, bank robbery chargesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Lafayette man pleaded guilty to making a bomb threat and attempting to rob a bank.
Devin Haywood, 31, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to one count of using a facility in interstate commerce to willfully make a threat or maliciously convey false information, and one count of attempted bank robbery. According to the indictment, Haywood used a cell phone to make a bomb threat at 5:30 a.m. on July 16, 2014, to a local television station that there was a bomb at Girard Park in Lafayette and on the University of Louisiana at Lafayette campus. While law enforcement agents were investigating the bomb threat, Haywood attempted to rob a bank on Moss Street in Lafayette. Haywood approached two of the bank employees after they had arrived for work at the bank. He appeared to be carrying a gun. The two bank employees fled back to their vehicles and left the scene.
Haywood faces 10 years in prison and three years of supervised release for the bomb threat charge. He faces 20 years in prison and five years of supervised release for the attempted bank robbery charge. Both charges carry a fine of up to $250,000. A sentencing date was not set.
“Actions of this defendant created a very dangerous situation within the city of Lafayette,” Finley stated. “Law enforcement, emergency responders and others were called away from other important work to respond to a fabricated bomb threat so that this individual could attempt to rob a financial institution. He is now facing the consequences of his actions. I want to thank the law enforcement agencies that responded professionally and promptly to this incident.”
The FBI, ATF, U.S. Marshals Service, Louisiana State Police, Lafayette Police Department, Lafayette Parish Sheriff’s Office, and the University of Louisiana at Lafayette Police Department investigated the case. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
Jury Convicts Two St. Croix Men of Murder and Related Firearm OffensesRead the Press Release
St. Croix, USVI B After a two-week trial, on March 24, 2015, a federal jury on St. Croix convicted Elvin Wrensford, 29, and Craig Muller, 30, of first degree murder and related firearm offenses, United States Attorney Ronald W. Sharpe and Virgin Islands Police Commissioner Delroy Richards announced today.
Wrensford was convicted of possession of a firearm in a school zone, using a firearm during a violent crime, possession of a firearm with an obliterated serial number, murder first degree and unauthorized possession of a firearm. Muller was convicted of possession of a firearm in a school zone, murder first degree and unauthorized possession of a firearm. Murder in the first degree carries a mandatory penalty of life in prison without parole. Both defendants were detained pending sentencing. No sentencing date has been set.
Evidence presented at trial established that during the afternoon on May 10, 2012, Wrensford and Muller were in a red truck and got into an alteration with an individual at Ben’s Car Wash. They followed the individual but then left the area and returned later in the red truck, Muller driving. They chased Hendricks, who had left Ben’s Car Wash, and Wrensford fired a gun at him. On May 12, 2012, Hendricks died from the gunshot wounds. Wrensford was linked to the firearm by DNA evidence. An eyewitness identified Wrensford as the shooter and Muller as the driver of the red truck.
This case was investigated by the Virgin Islands Police Department. It was prosecuted by Assistant United States Attorneys Alphonso Andrews, Jr. and Rhonda Williams-Henry.
Jury Convicts Makers of OXYwater for Wire Fraud, Money Laundering and Tax CrimesRead the Press Release
Today, a federal jury convicted a man from Lewis Center, Ohio, and his business partner of Powell, Ohio, of defrauding their company’s investors and diverting investors’ funds for their own personal use. Preston Harrison and his wife, Lovena E. Harrison, 42, were also both convicted of conspiracy to defraud the United States and filing a false income tax return, and Lovena Harrison was convicted of structuring financial transactions to evade currency reporting requirements.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Kathy Enstrom of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division announced the verdict reached today, which was returned following a trial that began on March 16 before U.S. District Judge Gregory L. Frost.
According to court testimony, Thomas E. Jackson, 40, of Powell, and Preston J. Harrison, 43, of Lewis Center, operated Westerville, Ohio, based Imperial Integrated Health Research and Development LLC and developed a product called OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The defendants engaged in a scheme to deceive the investors in their company about the structure, composition, finances, sales and profits of OXYwater in order to make the company appear to be a lucrative and profitable financial investment. Jackson and Harrison produced and sent false and fraudulent documents intended to deceive investors, the ultimate purpose of such false statements being for Jackson and Preston Harrison to obtain money invested in the company. They then misappropriated that money for their own personal use and household expenditures including the purchase of jewelry, a Cadillac Escalade, a BMW, weapons, clothing, home improvements and a swimming pool.
“This case was about the millions of dollars that the defendants stole from investors to fuel their lavish lifestyle,” said Assistant U.S. Attorney Jessica Kim in court.
Jackson and Harrison misappropriated approximately $2 million of the investors’ funds between August 2010 and spring 2013. The defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of the defendants’ conduct, investors lost approximately $9 million.
Jackson and Preston Harrison were each convicted of one count of conspiracy to commit wire fraud, for which they face a statutory maximum sentence of 20 years in prison, and one count of conspiracy to commit money laundering, for which they face a statutory maximum sentence of 10 years in prison. Jackson was convicted of eight counts of wire fraud, which carries a statutory maximum sentence of 20 years in prison, and 12 counts of money laundering, which carries a statutory maximum sentence of 10 years in prison. Harrison was convicted of 12 counts of money laundering, for which he faces a statutory maximum sentence of 10 years in prison.
Preston and Lovena Harrison were both convicted of conspiracy to defraud the United States and with filing a false tax return. Preston Harrison misappropriated approximately $1.1 million in 2011 from his company, which he and his wife, Lovena Harrison, placed in an account in the name of her daycare business. They used the money for personal expenses and did not report the money as income on their 2011 income tax return. Lovena Harrison was also convicted of one count of structuring financial transactions to evade currency reporting requirements. Conspiracy to defraud the United States and structuring financial transactions to evade currency reporting requirements are each crimes with a statutory maximum sentence of five years in prison, and filing a false tax return carries a statutory maximum sentence of three years in prison.
Preston Harrison and Jackson also face potential forfeiture of $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account.
The three defendants were indicted by a grand jury on May 20, 2014.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Stewart commended the cooperative investigation by the IRS-CI and FBI, as well as Assistant U.S. Attorney Jessica Kim and Trial Attorneys Andrew Young and Jason Scheff of the Tax Division, who prosecuted the case.
Jury Convicts Makers of Oxywater for Wire Fraud, Money Laundering, Tax CrimesRead the Press Release
COLUMBUS, Ohio – A federal jury convicted Preston J. Harrison, 43, of Lewis Center, Ohio, and his business partner, Thomas E. Jackson, 40, of Powell, Ohio, of defrauding their company’s investors and diverting investors’ funds for their own personal use. Preston Harrison and his wife, Lovena E. Harrison, 42, were also both convicted of conspiracy to defraud the United States and filing a false income tax return, and Lovena Harrison was convicted of structuring financial transactions to evade currency reporting requirements.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Caroline D. Ciraolo, Acting Assistant Attorney General for the Justice Department’s Tax Division, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Field Division, announced the verdict reached today, which was returned following a trial that began on March 16 before U.S. District Judge Gregory L. Frost.
According to court testimony, Jackson and Preston Harrison operated Westerville, Ohio-based Imperial Integrated Health Research and Development, LLC, and developed a product called OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The defendants engaged in a scheme to deceive the investors in their company about the structure, composition, finances, sales and profits of OXYwater in order to make the company appear to be a lucrative and profitable financial investment. Jackson and Preston Harrison produced and sent false and fraudulent documents intended to deceive investors, the ultimate purpose of such false statements being for Jackson and Preston Harrison to obtain money invested in the company. They then misappropriated that money for their own personal use and household expenditures including the purchase of jewelry, a Cadillac Escalade, a BMW, weapons, clothing, home improvements, and a swimming pool.
“This case was about the millions of dollars that the defendants stole from investors to fuel their lavish lifestyle,” Assistant United States Attorney Jessica Kim told the court.
Jackson and Preston Harrison misappropriated approximately $2 million of the investors’ funds between August 2010 and spring 2013. The defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of the defendants’ conduct, investors lost approximately $9 million.
Jackson and Preston Harrison were each convicted of one count of conspiracy to commit wire fraud, which is punishable by up to 20 years in prison, and one count of conspiracy to commit money laundering, which is punishable by up to 10 years in prison. Jackson was convicted of 8 counts of wire fraud, which is punishable by up to 20 years in prison, and 12 counts of money laundering, which is punishable by up to 10 years in prison. Preston Harrison was convicted of 12 counts of money laundering, which is punishable by up to 10 years in prison.
Preston and Lovena Harrison were both convicted of conspiracy to defraud the United States and with filing a false tax return. Preston Harrison misappropriated approximately $1.1 million in 2011 from his company, which he and his wife, Lovena Harrison, placed in an account in the name of her daycare business. They used the money for personal expenses, and did not report the money as income on their 2011 income tax return. Lovena Harrison was also convicted of one count of structuring financial transactions to evade currency reporting requirements. Conspiracy to defraud the United States and structuring financial transactions to evade currency reporting requirements are each crimes punishable up to five years in prison, and filing a false tax return is punishable by up to three years in prison.
Preston Harrison and Jackson also face potential forfeiture of $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account.
All three were indicted by a grand jury on May 20, 2014.
U.S. Attorney Stewart and Acting Assistant Attorney General Ciraolo commended the cooperative investigation by the IRS-CI and FBI, as well as Assistant United States Attorney Jessica Kim and U.S. Department of Justice Tax Division Trial Attorneys Andrew Young and Jason Scheff, who prosecuted the case.
Imposter Sentenced to Prison for Resume Fraud and Fake BadgesRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Roy Antigua (55, Miami) to one year and one day in federal prison for making a false statement in a matter within the jurisdiction of the federal government and for wrongfully possessing federal government identification badges. The Court also ordered a money judgment in the amount of $114,000, the proceeds of the charged criminal conduct. Antigua pleaded guilty on January 6, 2015.
According to court documents, Antigua submitted employment applications to two home health care agencies in which he fraudulently claimed to have been awarded a Master’s Degree in Social Work from Boston University. He also submitted a fraudulently created diploma with his applications. Antigua was subsequently hired by both agencies that, in reliance on his false statements, billed Medicare for social work services he had performed for Medicare beneficiaries. Medicare will only pay for social work services performed by individuals holding a Master’s Degree in Social Work.
During a search of Antigua’s home on August 1, 2012, law enforcement agents found him to be in wrongful and unauthorized possession of colorable imitations of badges purportedly issued by the Department of Defense, Defense Criminal Investigative Service and the National Aeronautic and Space Administration.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General (OIG), the Department of Homeland Security - OIG, NASA - OIG, the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Coast Guard Investigative Service, and the New Port Richey Police Department. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC SAMUEL MOTINO-ALVAREZ, age 26, a citizen of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien.
According to the Indictment, on or about January 29, 2015, MOTINO-ALVAREZ was found in the United States after having been officially deported and removed on or about October 2, 2009.
MOTINO-ALVAREZ faces a maximum term of imprisonment of two years, a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Helen G. Berrigan set sentencing for May 20, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Griffin Men Indicted on Federal Gun Dealing ChargesRead the Press Release
ATLANTA - Rashard Jones, Octavious Hasting, Xzavius Ogletree, Tony Anthony Goodman, David Combs, Demetrice Coggins, and Shedrick Howard have been charged in two separate federal indictments with illegal firearms dealing, possession of firearms by convicted felons, illegal possession of “sawed-off” shotguns and rifles, and distribution of narcotics.
“These indictments, which are the result of an undercover investigation, highlight the commitment of federal and local law enforcement to work together to address the problem of illegal guns and drugs in our communities,” said Acting U.S. Attorney John Horn.
“This enforcement action is the product of collaborative efforts on the part of ATF, the Griffin Police Department, and other local and federal law enforcement partners aimed at eliminating perpetrators of violent crime,” said ATF Special Agent in Charge Carl Walker. “ATF will continue to dedicate our resources in conjunction with other law enforcement agencies to target violent criminal activity within the communities we serve.”
“I am appreciative of the cooperation between the police department and ATF,” said Griffin Police Chief Steve Heaton. “As a result of this investigation, we were able to remove several dangerous people and illegal weapons from our community.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: After learning that several Griffin men were allegedly involved in the illegal sales of firearms, ATF and the Griffin Police Department launched an investigation. This investigation led to the identification of two groups of defendants who allegedly were involved in the illegal sales of firearms and narcotics. Each of the defendants is a convicted felon and as a result was prohibited by federal law from possessing a gun, including unregistered “sawed-off” shotguns and rifles, in violation of the National Firearms Act.
Rashard Jones, Octavious Hastings, and Xzavius Ogletree are charged in one indictment with illegal firearms dealing. Defendant Jones allegedly sold guns directly to a confidential informant in addition to serving as a middle man between the confidential informant and Octavious Hastings and Xzavius Ogletree. In total, the defendants allegedly sold and possessed seven different firearms, including five hand guns, an assault rifle, and a shotgun -- many of which had previously been reported stolen. In addition to dealing in firearms, Defendant Jones is charged with distribution of cocaine.
A second indictment charges Tony Goodman, David Combs, Demetrice Coggins, and Shedrick Howard with illegal firearms dealing. Tony Goodman, aided and abetted by Demetrice Coggins, Combs, and Howard, allegedly was involved in the sale of ten different firearms including three “sawed-off” shotguns and a “sawed-off” rifle. Howard allegedly sold nine different firearms including a “sawed-off” shotgun. In total, the defendants allegedly sold and possessed 22 firearms, many of which had previously been reported stolen. Goodman and Howard are also individually charged with the distribution of MDMA.
All of the defendants listed below are from Griffin, Georgia:
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Rashard Jones, a/k/a Bulldog, 26;
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Octavious Hasting, a/k/a Tay Lay, 29;
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Xzavius Ogletree, a/k/a Zay, 35;
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Tony Anthony Goodman, 50;
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David Combs, a/k/a Bishop, 24;
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Demetrice Coggins, a/k/a Meechie, 37;
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Shedrick Howard, a/k/a Petro, 24.
Ogletree, Combs, and Coggins were arraigned before Chief U.S. Magistrate Judge Janet F. King on March 18, 2015. Goodman was arraigned before Judge King on March 20, 2015. After detention hearings, Ogletree, Combs, Coggins, and Goodman were detained pending trial. Jones, Hastings, and Howard are awaiting arraignment. All were indicted by a federal grand jury in two separate indictments on March 4, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Griffin Police Department.
Assistant United States Attorney Matthew S. Carrico is prosecuting 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 Newnan Division is http://www.justice.gov/usao/gan/.
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Grand Jury Indicts Four Individuals on Federal Child Pornography ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that combined federal, state, and local efforts to combat child pornographers has resulted in a federal grand jury returning indictments in four different matters involving federal child pornography offenses. If convicted, each defendant could face significant incarceration, fines, restitution, forfeiture, and supervised release following imprisonment.
The following individuals have been indicted:
PIERRE A. MOOSEBROKER, JR., age 46, of Baton Rouge, Louisiana, is charged with possession of child pornography and forfeiture.
EVERETT EUGENE CARTER, age 56, of Gonzales, Louisiana is charged with transportation of child pornography, possession of child pornography, and forfeiture.
BRANDON L. HUNT, age 26, of Denham Springs, Louisiana is charged with distribution of child pornography, possession of child pornography, and forfeiture.
BRIAN SCHALLER, age 42, of Denham Springs, Louisiana is charged with distribution of child pornography, possession of child pornography, and forfeiture.
U.S. Attorney Green stated: “Today’s indictments reflect the continuing commitment by this office, together with our federal, state, and local partners, to aggressively pursue those who contribute to the sexual exploitation of our children. I commend the excellent work of the federal, state, and local agencies who worked closely together on these important cases.”
“Those who prey on our most vulnerable citizens must recognize that it is our priority to stop them and to eliminate this scourge on our society,” Attorney General Buddy Caldwell said. “Through the collaborative efforts of state, federal and local law enforcement agencies, we are working to bring child predators to justice and make Louisiana safer.”
These matters were investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the Cyber Crime Unit and the Criminal Division of the Louisiana Attorney General’s Office, the Baton Rouge Police Department, with assistance from the East Baton Rouge Parish District Attorney’s Office, the Ascension Parish District Attorney’s Office, and the Livingston Parish District Attorney’s Office. These cases are being prosecuted by Assistant United States Attorneys Cam Le and Chris Dippel.
These federal charges are part of Project Safe Childhood, a nationwide initiative by the U.S. 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.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Fourth Defendant Pleads Guilty to Second Degree Murder Charge in Case Arising from Kidnapping and Murder of Navajo WomanRead the Press Release
ALBUQUERQUE – Scott Thompson, 28, of Farmington, N.M., pled guilty today to a second degree murder charge arising out of the kidnapping and brutal murder of a 28-year old Navajo woman. Three co-defendants, Justin Benally, 26, of Farmington, N.M., Mariah Benally, 22, and LaSheena Jacquez, 27, both of Kirtland, N.M., entered similar guilty pleas in Oct. and Nov. 2014.
Thompson, Justin Benally, Mariah Benally and Jacquez are four of five individuals, all of whom are enrolled members of the Navajo Nation, who were indicted in Jan. 2014, on criminal charges arising from the kidnapping and murder of the victim on Oct. 23, 2013. The five defendants previously had been arrested in Dec. 2013, on a criminal complaint that was filed after law enforcement authorities received information that the victim, who had been reported as missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
In addition to charging Thompson, Justin Benally, Mariah Benally and Jacquez, the four-count indictment also charged Patrick Benally, 26, of Kirtland, N.M., with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Justin Benally, Mariah Benally, Jacquez and Thompson with harboring Patrick Benally to prevent his arrest on a warrant for an unrelated crime. The indictment alleges that the crimes charged occurred on the Navajo Indian Reservation within San Juan County, N.M.
This morning, Thompson pled guilty to a felony information charging him with second degree murder. In entering his guilty plea, Thompson admitted aiding and abetting the victim’s murder by participating in her kidnapping and taking actions that ultimately resulted in the victim’s death. Under the terms of his plea agreement, Thompson will be sentenced to a term of imprisonment within the range of 252 to 360 months (21 to 30 years).
On Nov. 19, 2014, Justin Benally pled guilty to a felony information charging him with second degree murder. In entering his guilty plea, Justin Benally admitted aiding and abetting the victim’s murder by participating in her kidnapping and taking actions that ultimately resulted in the victim’s death. Under the terms of his plea agreement, Justin Benally will be sentenced to a 22-year term of imprisonment.
On Oct. 29, 2014, Mariah Benally also pled guilty to a second degree murder charge. Mariah Benally admitted causing the victim’s death by throwing rocks at her, and aiding and abetting others who also caused the victim’s death. She also admitted throwing rocks at the victim after the victim had been repeatedly stabbed by three of her co-defendants and thrown off a cliff by one of the co-defendants. Mariah Benally also aided her co-defendants in restraining the victim and transporting her to the murder site, and destroying evidence of their crimes.
Jacquez pled guilty to a second degree murder charge on Oct. 16, 2014, and admitted causing the victim’s death on Oct. 23, 2013, by repeatedly stabbing the victim with a knife, throwing rocks at the victim, and aiding and abetting others who also caused the victim’s death. Jacquez also admitted that she destroyed evidence and aided and abetted others in the destruction of evidence in an effort to evade prosecution.
Thompson, Justin Benally, Mariah Benally and Jacquez have been in federal custody since they were arrested and remain detained pending their sentencing hearings, which have yet to be scheduled. Each faces a maximum statutory penalty of life imprisonment.
Patrick Benally has entered a not guilty plea to the indictment and is detained pending trial, which is currently scheduled for May 2015. If convicted of the charges in the indictment, Patrick Benally faces a maximum statutory penalty of life imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.
Four Charged Federally with Fourteen Bank Robberies in Three Separate IndictmentsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that four individuals have been charged by a federal grand jury in Scranton with robbery or attempted robbery of 14 banks in three separate indictments filed late yesterday in the U.S. District Court in Scranton.
According to U.S. Attorney Peter Smith, the robberies, which took place over an eight month period between June 2014 and January 2015 in Luzerne, Lackawanna, Carbon and Schuylkill Counties, were investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police, with the assistance of the Police Departments of Hazleton, Rush Township, Dickson City, Scranton, Jenkins Township, Plains Township, Ashley, Hanover Township and Wilkes-Barre, as well as the Luzerne and Wyoming County District Attorney’s Offices.
Sean Quinn, Supervisory Senior Resident Agent in the Scranton FBI office, stated “The FBI is committed to protecting the citizens from violent crime such as this scourge of armed bank robberies our area has seen over the past year. We will devote any resources necessary to combat these crimes and the people who would commit them. In these cases, honest citizens got involved to help determine who committed these violent crimes and I thank and commend them.”
The defendants and the charges:
Timothy Fenster, age 29, of Plains, is charged in an indictment with seven bank robberies or attempted bank robberies and one robbery of a store, as follows:
• armed robbery of Community Bank, Church Street, Laceyville, on December 17, 2014;
• armed robbery of M&T Bank, Sans Souci Parkway, Hanover Township, on December 22, 2014;
• armed robbery of First National Community Bank (FNCB), North River Street, Plains Township, on January 14, 2015;
• armed robbery of M&T Bank, Coal Street Branch, Wilkes-Barre, on January 22, 2015;
• armed robbery of Community Bank, SR 6, Meshoppen, on January 26, 2015;
• armed robbery of Family Dollar, South Main Street, Ashley Borough, on January 28, 2015;
• attempted robbery of First Keystone Community Bank, Main Street, Plymouth, on January 29, 2015;
• attempted robbery of FNCB, Old Boston Road, Jenkins Township, on January 29, 2015.The maximum penalty under the federal statute for each armed bank robbery is 25 years’ imprisonment. The attempted bank robberies and the robbery of the store each carry a maximum sentence of 20 years’ imprisonment. Fenster also faces a term of supervised release following imprisonment, and a fine if convicted. He is in custody.
Lee Sokalsky, age 34, of Scranton, is charged in an indictment with six bank robberies or attempted bank robberies, as follows:
• robbery of First National Community Bank, West Broad Street, Hazleton, on June 19, 2014;
• robbery of NBT Bank, Main Street, Dickson City, on July 25, 2014;
• attempted robbery of FNCB, West Broad Street, Hazleton, on August 26, 2014;
• robbery of Mauch Chunk Trust Bank, Claremont Avenue, Tamaqua, on August 26, 2014;
• robbery of National Penn Bank, South Hunter Highway, Drums, on September 20, 2014; and
• armed robbery of M&T Bank, Laurel Mall, Hazle Township, on October 10, 2014.The maximum penalty under the federal statute for the armed bank robbery of the M&T Bank is 25 years’ imprisonment. The maximum penalty for each of the other robberies or for attempted bank robbery is 20 years’ imprisonment. Sokalsky faces a term of supervised release following imprisonment, and a fine if convicted. He is in custody.
David Weaver, age 40, and Crystal Serfass, age 30, both of Junedale, Carbon County, are charged in an indictment with conspiring to commit armed bank robbery and armed bank robbery of the Jim Thorpe Neighborhood Bank, Penn Forest Township, on November 18, 2014. Weaver is also charged with use of a firearm and obstruction of justice. Serfass is additionally charged with obstruction of justice, illegal firearms possession, possession of methamphetamine, and making false statements to an FBI agent.
The maximum penalty under the federal statutes underlying the charges filed against Weaver is life imprisonment and, for Serfass, 86 years’ imprisonment. Both face a term of supervised release following imprisonment, and a fine if convicted. Weaver is in custody. FBI Agents arrested Crystal Serfass this afternoon in Junedale on the charges. Serfass will be scheduled to appear for an initial appearance before U.S. Magistrate Judge Karoline Mehalchick in the U.S. District Court in Scranton.
Prosecution of the three cases is assigned to Assistant U.S. Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Indictment
Indictment
Indictment
Former Treasurer Pleads Guilty to Embezzling Nearly $475,000 from Fraternal Order of PoliceRead the Press Release
TULSA, Okla.–Lorna Jean Vanlandingham, the former Treasurer of the Fraternal Order of Police Oklahoma State Lodge and the Tulsa Fraternal Order of Police, pleaded guilty today to embezzling nearly $475,000 from Lodge bank accounts, announced United Sates Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. Sentencing is scheduled on June 22, 2015 before U.S. District Court Chief Judge Gregory K. Frizzell.
Vanlandingham, 71, of Tulsa, was charged in a criminal information with two-counts of wire fraud on February 11, 2015. At the time of the scheme, she was responsible for maintaining the financial books and records of the Fraternal Order of Police Oklahoma State Lodge and the Fraternal Order of Police Oklahoma State Lodge #93 in Tulsa.
According to court documents, from April 6, 2010 to March 11, 2014, Vanlandingham embezzled nearly $68,000 from the Fraternal Order of Police Oklahoma State Lodge by writing fraudulent checks and making unauthorized transfers. Additionally, from January 23, 2013 to April 23, 2014, Vanlandingham embezzled nearly $405,000 from the Fraternal Order of Police Oklahoma Lodge #93. She used the monies for personal expenses.
Vanlandingham faces the statutory maximum penalty of 20 years in prison, plus restitution, for each wire fraud charge.
The case was handled by the Federal Bureau of Investigation; Assistant U.S. Attorney Jeffrey A. Gallant is prosecuting the case.
(U.S. vs. Lorna Jean Vanlandingham)
Former Energy Company Exec Sentenced to Prison for Gas Royalty FraudRead the Press Release
PITTSBURGH - A Beaver County resident has been sentenced in federal court to 30 months incarceration, a $5,000 fine, and a $200 special assessment on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Davis S. Cercone imposed the sentence on Scott D. Hamilton, aka Art Follage, aka Michael Lewis, 38, of Baden, Pa.
According to the information presented to the court, Hamilton was the Manager for Land Records in the CNX Land Department. One of his responsibilities was to oversee CNX gas and oil lease interests properties that would pay royalties to CNX. CNX owned lease interests in a parcel of land in Christian County, Illinois and lease interests in a land parcel in Fayette County, West Virginia. Using his knowledge of these types of gas and oil lease transfers, and of how CNX functioned internally, Hamilton was able to acquire the royalty payments that should have been paid to CNX for these two parcels. He did this by creating a bogus, shell company named PRH LLC, opening a post office box and a bank account in its name, and filing forged and fabricated assignments that included names of imaginary individuals. The assignments transferred CNX’s rights to the royalties to Hamilton’s shell company. Later in the scheme, Hamilton changed the name of the recipient of the monies from PRH LLC to his wife, Kelly Hamilton. The scheme continued undetected for 30 months until a drilling company that was paying royalties inquired with CNX about contact information for Kelly Hamilton, who appeared of record to be the current owner of the lease interests instead of CNX. After discovery of the fraud, Hamilton attempted to avoid prosecution by offering to re-pay the stolen monies so long as the matter wasn’t reported to authorities. After the matter was investigated and Hamilton pled guilty he did make full restitution of $440,216.35.
Judge Cercone stated that in deciding what sentence to impose he gave Hamilton credit for having repaid all of the stolen money. However, the large sum of money stolen and the need to deter others from similar conduct required a sentence of incarceration, and that a sentence of 30 months was sufficient to reflect the seriousness of the offense, to promote respect for the law and to provide just punishment for the offense.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Postal Inspection Service for the investigation leading to the successful prosecution of Scott D. Hamilton.