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5 May 2015
Connecticut Man Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A Cromwell, Conn. man was sentenced on Friday, May 1, 2015, to child exploitation charges in U.S. District Court in Bridgeport, Conn.
Samuel DiProto, 63, was sentenced to 84 months in prison and 10 years of supervised release by U.S. District Court Judge Jeffrey Alker Meyer. DiProto pleaded guilty in September 2014 to receiving child pornography.
From 2009 through March 2013, DiProto downloaded child pornography from a file sharing network. A law enforcement official discovered DiProto’s child pornography after logging into the publicly available file sharing network and discovered downloaded images and videos of child pornography from a computer that was traced to DiProto.
United States Attorney Carmen M. Ortiz; Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, New Haven Division; and Connecticut State Police Colonel Brian F. Meraviglia, made the announcement today.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Kevin O’Regan, Chief of Ortiz’s Springfield Branch Unit and Assistant U.S. Attorney Neeraj N. Patel in the District of Connecticut. The case was prosecuted under the auspices of the U.S. Attorney’s Office in the District of Massachusetts to avoid the appearance of a conflict of interest because the defendant has a familial relationship with federal law enforcement in the District of Connecticut.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Columbus Tax Preparer Pleads Guilty to Filing over 180 Fraudulent Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Danielle Wallace, age 36, of Columbus, Georgia, entered a plea of guilty on May 5, 2015 to wire fraud, aggravated identity theft and filing false income tax returns before the Honorable Clay D. Land, U.S. District Court Judge, in Columbus, Georgia.
As a part of her plea agreement, Ms. Wallace admitted she filed over 180 fraudulent tax returns between January 1, 2014 and March 24, 2014. During this time, Ms. Wallace was employed by Blue Cross/Blue Shield fielding telephone calls from customers. She would obtain personal information from the customers during the calls and then file false income tax returns through “Simple Cash 1”, a tax preparation business she owned and operated in Columbus. The attempted and actual loss, the amount of funds which was obtained by fraud, is approximately $494,000.
For the wire fraud charge, Ms. Wallace faces a maximum sentence of 30 years in prison, a maximum fine of $1,000,000, or both. For aggravated identity theft, she faces a mandatory sentence of 2 years in prison, consecutive to any other sentence. The charge of filing false income tax returns carries a maximum penalty of five years imprisonment and a $250,000 fine.
“Ms. Wallace took advantage of those who trusted her and came to her for help. She took advantage of her employer as well using the information she obtained in her job to do this. She then took advantage of the public by using this information to get income tax refunds to which she was not entitled,” said U.S. Attorney Michael Moore.
“Instead of providing customer service Ms. Wallace used her position with Blue Cross Blue Shield to steal the identities of unsuspecting individuals and file fraudulent tax returns through a company she owned,” said IRS Criminal Investigation Special Agent In Charge Veronica Hyman-Pillot. “Ms. Wallace’s actions have caused insurmountable hardship to these innocent victims. Today’s plea is an example of the hard work IRS CI and its law enforcement partners continue to perform in an effort to protect the American taxpayer.”
“The Secret Service remains committed to protecting our nation’s financial security, to include aggressively investigating those responsible for using stolen identities to defraud the United States. Along with our law enforcement partners we will continue to pursue those committing these crimes,” said Clint A. Bush, Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service and the Harris County Sheriff’s Office. Assistant United States Attorneys Melvin E. Hyde, Jr. and Chuck Byrd are prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Chesterfield Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – ALFRED BROWN admitted to filing a false 2009 tax return, which failed to disclose income he took from a Church and daycare center. In all, Brown admitted to avoiding more than $80,000 in income taxes for 2008, 2009 and 2010.
According to his plea agreement, Brown failed to report considerable cash withdrawals and payments for luxury cars used by him and his wife as income from the Church of Jesus Christ, of which Brown is pastor, and the AB Academy daycare center, of which his wife is director. Brown further admitted he was to have been precluded from participating in the management or operation of the daycare center because of a prior felony conviction in the State of Missouri.
Brown, of Chesterfield, Missouri, pled guilty to one count of filing a false tax return before United States District Judge Ronnie L. White. Sentencing has been set for August 11, 2015.
This charge carries a maximum penalty of three years in prison and/or a fine up to $100,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Charleston man sentenced for aggravated identity theftRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Troy Lawrence, 45, of Charleston, West Virginia, was sentenced to two years in federal prison for aggravated identity theft. In July of 2014, Lawrence pleaded guilty to aggravated identify theft admitting that he used a dead person’s name and driver’s license to purchase pseudoephedrine from a Rite Aid store in Charleston. Sellers of pseudoephedrine, like Rite Aid, are required by federal law to keep a logbook that identifies individuals who purchase pseudoephedrine. This logbook helps law enforcement identify people who purchase pseudoephedrine to manufacture methamphetamine. “Making and distributing methamphetamine is dangerous business,” said U.S. Attorney Booth Goodwin. “When buyers of pseudoephedrine lie about who they are, they obstruct law enforcement efforts to stop the spread of methamphetamine at the source. We will continue to do everything we can to ensure that buyers and sellers of pseudoephedrine comply with laws intended to protect us from the unlawful manufacture of methamphetamine.”
This case was investigated by the West Virginia State Police and the United States Drug Enforcement Administration.
Career Offender Admits to Committing Three Armed Robberies in Maryland in Six WeeksRead the Press Release
Greenbelt, Maryland –James Davis, age 56, formerly of Washington, D.C., pleaded guilty today to conspiring to commit robbery, robbery of money belonging to the United States, carrying and brandishing a firearm during a robbery, and being a felon in possession of a firearm.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Chief Mark A. Magaw of the Prince George’s County Police Department and Chief Douglas Holland of the Hyattsville Police Department.
According to his plea agreement, on August 8, 2013, Davis and co-conspirator Recardo Beatty drove to the Hyattsville Post Office. Beatty first entered the post office to scout the inside. Davis then entered, while Beatty waited outside in their getaway vehicle. Davis pointed a long black paintball gun at an employee. The employee and another employee fled from their cash registers, while Davis grabbed money and money orders out of the register. Davis and Beatty fled in their vehicle.
On August 15, 2013, the pair traveled to the Glut Food Co-Op in Mt. Rainer, Maryland. As Beatty waited outside in the vehicle, Davis entered the store, walked behind a counter where an employee was working and displayed a paintball gun. Davis ordered the employee to open the cash register and Davis removed money. Davis and Beatty fled in their vehicle.
On September 17, 2013, Davis and Beatty traveled to the Dollars and Sense store in Brentwood, Maryland and entered the store together. Davis demanded that an employee open a cash register, from which he took money and a cash box. Beatty, who was armed with a firearm, saw another employee approach a store exit door. A fight ensued, and the employee was hit on the head. Davis and Beatty fled the store in their vehicle.
On the same day as the Dollars and Sense robbery, officers recovered the firearm from Beatty that was used in the robbery. The next day, September 18, 2013, officers executed a search warrant at Beatty’s residence where Davis was staying, and recovered a paintball gun and clothing used in the robberies.
Davis had previously been convicted of a felony and was thus prohibited from possessing a firearm.
Davis and the government have agreed that if the Court accepts the plea agreement, Davis will be sentenced to 16 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for August 12, 2015 at 10:00 a.m.
Recardo Beatty, age 50, of Washington, D.C., previously pleaded guilty to his participation in the robberies and awaits sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service and the Prince George’s County and Hyattsville Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leah Jo Bressack and Special Assistant United States Attorney Matt Paeffgen, who are prosecuting the case.
Canadian Man Sentenced to 8½ Years in Prison for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Kevin Rockwell, 32, of Leduc, Alberta, Canada, was sentenced today in U.S. District Court by Judge Jon D. Levy to 8½ years in prison and 10 years of supervised release for transporting child pornography. Rockwell pleaded guilty to the charge on October 29, 2014.
According to court records, in April 2013, Rockwell, who was in Canada, sent an email message to the undercover email account of a Special Agent with Homeland Security Investigations in Maine. Attached to the email was a file containing 38 images of sexually explicit conduct involving young children. Rockwell was indicted in the District of Maine in May 2013, and his extradition from Canada was sought. The Canadian Minister of Justice ordered him surrendered to American law enforcement officials in May 2014.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Royal Canadian Mounted Police. U.S. Attorney Thomas Delahanty said, “The internet has made the distribution of child pornography an international problem. The bi-national cooperation of American and Canadian law enforcement agencies, so crucial to tackling crimes spanning the two countries, was a key factor in bringing Mr. Rockwell to justice.”
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. The initiative, which is led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
California Man Pleads Guilty to Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Darmarvis Marquel Lee, 30, of San Bernardino, Calif., pleaded guilty this morning in federal court in Albuquerque, N.M., to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Lee was arrested on Aug. 22, 2014, at the Amtrak Train Station in Albuquerque after a consensual search of his baggage by DEA agents revealed that he was carrying approximately 2.28 kilograms of heroin concealed in a false compartment. Lee subsequently was indicted on Sept. 9, 2014, and charged with possession of heroin with intent to distribute.
During today’s proceedings, Lee pled guilty to the indictment. In his plea agreement, Lee admitted that on Aug. 22, 2014, while on an Amtrak train and during a stop in Albuquerque, law enforcement officers recovered two wrapped bundles containing heroin from his baggage. Lee admitted that he was paid to transport and deliver the drugs.
At sentencing, Lee faces a maximum statutory penalty of 20 years in federal prison. Lee was remanded into federal custody after entering his guilty plea. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Rumaldo Armijo is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Buffalo Woman Pleads Guilty to Tax Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Malisha Mobley, 30, of Buffalo, NY, pleaded guilty to conspiracy to defraud the government in the filing of false tax returns before U.S. District Judge Richard J Arcara. The charge carries a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant obtained fraudulent W-2 forms from James Chatmon and used the forms to file false tax returns for tax years 2011, 2012 and 2014. As a result the defendant obtained tax refunds which she was not entitled to receive.
In addition, Mobely recruited two other individuals to file false tax returns by providing them with the fraudulent W-2 forms obtained from James Chatmon. Those individuals used the forms to file false tax returns for tax year 2012. As a result of the defendant’s actions, losses to the Internal Revenue Service and New York State Department of Taxation and Finance totaled $37,193.00
The plea is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for August 20, 2015 at 1:00 p.m. before Judge Arcara
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Rai Johnson, 35, of Buffalo, NY, pleaded guilty to being a felon in possession of firearms and ammunition, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was previously convicted of a felony violation of the Clean Air Act relating to the Kensington Towers matter. On December 23, 2014, Johnson possessed firearms, namely, one Mossberg, Model 500A, 12 gauge shotgun and one Brazilian, CBC, .22 caliber rifle. In addition, the defendant had multiple rounds of ammunition.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-In-Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for August 17, 2015 at 12:30 p.m. Judge Arcara.
Bronx Man Pleads Guilty to Aiming A Laser Beam at Commercial Airliners Near Laguardia AirportRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ELEHECER BALAGUER pled guilty today in Manhattan federal court to aiming the beam of a laser pointer at commercial airliners in the vicinity of LaGuardia Airport on March 9, 2015. BALAGUER was arrested on March 16, 2015, and pled guilty today before United States District Judge Jed S. Rakoff to aiming a laser pointer at an aircraft.
U.S. Attorney Preet Bharara said: “Lasers, when pointed at aircraft, have the ability to incapacitate and injure pilots. Thankfully, this case did not end in tragedy, but Elehecer Balaguer’s actions were serious and posed a danger. Others should understand that they will be prosecuted criminally if they engage in this conduct.”
According to allegations made in the Complaint and the Information filed today, and statements made during court proceedings, including today’s guilty plea:
On March 9, 2015, the pilots of three commercial airliners near LaGuardia Airport in Queens were struck in the eyes with a bright green beam, causing the pilots to lose focus temporarily and, in two instances, briefly blinding the pilots. All three airliners were full of passengers and were either in the process of taking off from LaGuardia Airport or landing at LaGuardia Airport. In response, an Air Traffic Controller at LaGuardia Airport temporarily changed the runway directions used for all airplanes arriving at and departing from LaGuardia Airport that evening, so that airplanes would avoid the laser beam.
Each of the pilots struck with the green beam noticed that the beam appeared to originate from the Bronx, New York. Later in the evening on March 9, 2015, officers from the New York City Police Department (“NYPD”) Aviation Unit responded to the pilots’ complaints by flying in a helicopter (the “NYPD Helicopter”) in the vicinity of the location where the airplanes had been struck with a beam. While the NYPD Helicopter was in that area, a green beam was directed into the cockpit of the NYPD Helicopter, causing both of the NYPD pilots also to lose sight temporarily. The NYPD pilots observed that the laser beam appeared to originate from a particular second floor apartment of a building in the Bronx (the “Apartment”).
NYPD officers responded to the Apartment later in the night of March 9, 2015. BALAGUER and others were present in the Apartment. The officers recovered a laser pointer (the “Laser Pointer”) from the top of a refrigerator near the window from where the green beam that struck the NYPD Helicopter appeared to have originated. Written on the Laser Pointer is the warning: “DANGER – LASER RADIATION – AVOID DIRECT EYE EXPOSURE.” When questioned the night of March 9, 2015, BALAGUER admitted that he owned the Laser Pointer, but denied knowing who pointed the Laser Pointer at passing airplanes.
On March 13, 2015, in the presence of counsel, BALAGUER admitted to law enforcement that he shined the beam of the Laser Pointer at an airplane on March 9, 2015. BALAGUER further admitted to lying to law enforcement when he was interviewed by NYPD officers on March 9, 2015.
BALAGUER, 54, pled guilty to one count of aiming a laser pointer at an aircraft, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
BALAGUER is scheduled to be sentenced by Judge Rakoff on September 9, 2015.
U.S. Attorney Bharara praised the investigative work of the New York FBI’s Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD, and comprises investigators from numerous federal, state, and local law enforcement agencies. Mr. Bharara also thanked the NYPD’s Aviation Unit and the Port Authority of New York and New Jersey.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Ian McGinley is in charge of the prosecution.
Bradford County Man Charged Federally with Defrauding 92 Year Old of $400,000Read the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a grand jury in Scranton returned an Indictment today charging a Bradford County man with defrauding a 92 year old victim of approximately $400,000.
According to United States Attorney Peter Smith, the Indictment alleges that between April 2011 and December 2013, Alan J. Fassett, age 66, of Athens, Pennsylvania, engaged in a scheme to defraud an elderly woman, who, during 2012 and 2013 was a resident in a nursing home in Athens. The nineteen-count Indictment alleges that Fassett used the purported authority of a Power of Attorney to steal more than $400,000 from the victim, including unlawfully transferring securities and other assets of the victim into Fassett’s personal bank accounts and used them for his personal benefit. The Indictment charges counts of wire fraud, money laundering, and aggravated identity theft.
The investigation was conducted by the Internal Revenue Service and the Athens Police Department. Prosecution is assigned to United States Attorney Michelle Olshefski. The U.S. Attorney’s Office prosecutes crimes against the elderly as a matter of high priority.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the federal statute for wire fraud is 20 years imprisonment and a $250,000 fine on each count. The maximum penalty under the federal statute for money laundering is 10 years imprisonment and a $250,000 fine on each count. The maximum penalty under the federal statute for aggravated identity theft is 2 years imprisonment consecutive to the predicate crime, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Artesia Man Sentenced for Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Angel Guadalupe Ochoa, 38, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in federal prison followed by four years of supervised release for his methamphetamine trafficking and firearms convictions.
Ochoa was arrested on Feb. 28, 2014, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Eddy County, N.M., on Feb. 20, 2014. He subsequently was indicted on May 14, 2014.
The four- count indictment charges Ochoa with distribution of methamphetamine, possession of methamphetamine with intent to distribute, possession of a firearm in relation to a drug trafficking crime, and being a felon in possession of firearms. At the time of his arrest, Ochoa was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of methamphetamine and distribution of marijuana.
Ochoa pled guilty to the indictment on July 7, 2014, and admitted that on Feb. 20, 2014, he sold approximately one ounce of methamphetamine to another person in Carlsbad, N.M. Ochoa also admitted that on Feb. 28, 2014, agents executed a search warrant at his residence where they located approximately two ounces of methamphetamine and three firearms, and that at the time of his arrest he was prohibited from possessing a firearm and ammunition because he previously had been convicted of a felony.
This case was investigated by the Las Cruces office of the DEA, the New Mexico State Police and the Pecos Valley Drug Task Force, and was prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Armed Career Criminal from Albuquerque Sentenced to Fifteen Years for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Anthony Barela, 56, of Albuquerque, N.M., was sentenced today in federal court to 15 years in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition.
Barela was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Barela was arrested in Nov. 2013, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Nov. 9, 2013, in Bernalillo County, N.M. According to the criminal complaint, officers of the Albuquerque Police Department apprehended Barela at a home in northwest Albuquerque when they responded to a call reporting a residential burglary. When the officers arrived at the residence and encountered Barela, he indicated that he had a pistol in his pocket which he admitted taking from the residence. At the time, Barela was prohibited from possessing firearms or ammunition because he previously had been convicted of armed bank robbery in the U.S. District Court for the District of New Mexico and armed robbery with a deadly weapon in the 2nd Judicial District Court for the State of New Mexico in Bernalillo County.
Barela was indicted for unlawfully possessing a firearm and ammunition on Dec. 4, 2013. On Sept. 24, 2014, Barela admitted that he possessed a pistol and ammunition on Nov. 9, 2013, and that he was prohibited from doing so because he was a convicted felon.
This case was investigated by the Albuquerque offices of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Jack Burkhead prosecuted the case.
Andover Attorney Charged in Superseding Indictment with $1 Million Tax Refund Check ScamRead the Press Release
BOSTON – An attorney specializing in real estate closings and a co-conspirator were charged today with depositing more than $1 million in fraudulently obtained IRS refund checks into several different bank accounts, including the attorney’s trust accounts, in an effort to launder the proceeds.
Attorney R. David Cohen, 63, and Francisco Oscar “Frank” Grullon, 48, both of Andover at the time of the alleged crime, were charged in a superseding indictment with conspiracy, conversion, and receipt of stolen United States property, and conspiracy to commit money laundering. Cohen and Grullon were indicted in January 2015, and Cohen was arrested by complaint in December 2014. Grullon is believed to be outside of the United States.
According to the superseding indictment and an affidavit filed in the case, the investigation identified a scheme in which individuals filed fraudulent tax returns with fictitious W-2 information, usually a name and social security number of a resident of Puerto Rico, whose residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to designated addresses in Lawrence, East Boston, and New York controlled by his co-conspirators.
Beginning in October 2011, Cohen, Grullon, and another co-conspirator deposited at least 156 fraudulently deposited tax refund checks totaling $1,027,084 into various local banks to launder them through Cohen’s “Interest On Lawyer’s Trust Accounts” (IOLTA), as well as through bank accounts in the name of AD Professional Association, Inc. When questioned by bank officials about the large amount of third-party U.S. Treasury checks Cohen was depositing and negotiating through his IOLTA and personal accounts, Cohen falsely claimed that the payees were his clients. When one bank requested proof of third-party endorsement of the checks, Cohen falsely signed and notarized a form purporting to state that the payee had endorsed the check to AD Professional Association.
The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the loss or gain from the offense. The charge of conversion and receipt of stolen U.S. property provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, or twice the loss or gain from the offense. The charge of money laundering provides a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $500,000, or twice the value of the property involved in the transaction. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistance with the investigation was provided by the Department of Homeland Security and U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Public Corruption and Special Prosecutions Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Albuquerque Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Andres Salinas, 20, of Albuquerque, N.M., pled guilty today in federal court to possessing child pornography. Under the terms of his plea agreement, Salinas will be sentenced within the range of four to six years in prison followed by not less than 15 years of supervised release. He also will be required to register as a sex offender after completing his term of imprisonment.
Salinas was arrested by Homeland Security Investigations (HSI) agents on Sept. 4, 2014, and charged in a criminal complaint with receipt and possession of visual depictions of minors engaged in sexually explicit conduct. Salinas subsequently was indicted on Sept. 23, 2014, on the same charges.
Court filings reflect that HSI initiated an investigation into Salinas in July 2014, after receiving a referral from the New Mexico Office of the Attorney General, which is a member of the New Mexico Internet Crimes Against Children (ICAC) Task Force. In July 2014, investigators identified an IP address that was being used to download and share child pornography. Subsequent investigation revealed that the IP address was subscribed to the residence in which Salinas lived. In Sept. 2014, investigators interviewed Salinas at his residence and he admitted that he had used the file sharing network to download images and videos consistent with child pornography and child erotica. Investigators seized computers, a video recorder, a cellular phone and computer-related media that contained child pornography after learning that Salinas regularly used the computer while he lived in the residence.
During today’s change of plea hearing, Salinas pled guilty possession of a matter containing visual depictions of minors engaged in sexually explicit conduct, and admitted that from July 20, 2014 through Aug. 9, 2014, he possessed visual depictions of minors engaged in sexually explicit conduct. Salinas remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of HSI, the New Mexico Office of the Attorney General and the New Mexico ICAC Task Force, and is being prosecuted by Assistant U.S. Attorney Jacob Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
2015 National Arson Awareness WeekRead the Press Release
CEDAR RAPIDS, IOWA - This week the U.S. Fire Administration, an entity within Homeland Security’s Federal Emergency Management Agency, announced its theme highlighting the 2015 National Arson Awareness Week: Accelerant Detection Canines – Sniffing out Arson. In recognition of this week, the United States Attorney’s Office for the Northern District of Iowa and the State Fire Marshal Division within the Iowa Department of Public Safety agreed to combat the dangers of arson by sponsoring a training course of study.
Although America's fire losses today represent a dramatic improvement from more than 40 years ago, national statistics still reveal that fire kills over 3,000 and injures 17,000 people each year. Firefighters pay a high price for this terrible fire record as well; about 100 firefighters die on duty each year. Direct property losses due to fire reach almost $12 billion a year. US Attorney Kevin Techau stated, “Arson is a very dangerous and violent crime. It raises the risk of severe injury and even death to the public and responding firefighters and is often committed for profit as part of an insurance fraud scheme resulting in higher premiums passed on to innocent parties.”
“Arson is a cowardly crime and often difficult to prosecute without solid investigative tools and well-trained investigators,” stated Techau. He went on to add, “The type of training sponsored by the State Fire Marshal Division is crucial to solving these crimes as are leads that can be provided by everyday Iowans. My office is committed to working with our law enforcement partners at all levels to aggressively investigate violent crimes of this nature that threaten our communities.”
Echoing Techau’s comments, State Fire Marshal Jeffrey Quigle offered, “The dynamic opportunity of pairing frontline fire investigators with prosecutors during this daylong training is a first for Iowa and should enhance the working partnership to combat arson related crimes.”
Major players involved in sniffing out the cause of arson crimes are the trained accelerant detection canines, the theme this year’s arson awareness week. Iowa has three accelerant detection K-9 handlers. The State Fire Marshal has one dedicated team headed by a Special Agent and his K-9 partner Pogo. The other two teams work out of fire departments in Cedar Rapids and Davenport.
Pogo entered Accelerant Detection duties in 2013.
The K-9 teams have been instrumental in investigating and solving arson crimes but when supported by witness tips the chance for a successful prosecution is greatly enhanced. Both Techau and Quigle invite the public to provide information and possible important tips pertaining to fires suspected of being arson and on any unsolved arson case. US Attorney Techau stressed that, “Detecting, investigating and prosecuting arson crime is everyone’s fight.”
Both Techau and Quigle emphasized that public tips and information can be extremely valuable in solving the case. If the public has information on any of these unsolved arsons they are encouraged to contact the State Fire Marshal State Division at 215 East 7th Street, Des Moines, Iowa 50319, or by calling 515-725-6145.
- December 12, 2003 – Henry County Courthouse. The fire occurred in the law library. The law books were tossed on the floor and intentionally set on fire.
- September 28, 2003 – Vacant church fire in Wever. Fire was started in the attic and was determined to be intentionally set.
- April 5, 2006 – Skateland Roller Skating Rink in Ft. Madison – There was evidence of a burglary that was likely attempted to be covered up by the arson.
- August 15, 2007 – Cross burning in the yard of a private residence in Salem. The FBI joined in this investigation but no leads were uncovered.
- March 8, 2008 – First Presbyterian Church in Monticello. Extensive damage to the front foyer and smoke and heat damage throughout. The fire was determined to be intentionally set.
- September 10, 2013 – Residential fire at 2720 Ave A in Council Bluffs. Racial and sexual slurs were found spray painted throughout the house. There were no signs of forced entry into the home. An accelerant canine was used during the investigation. The fire was found to be suspicious in nature.
- January 16, 2015 – Residential fire at 2929 Ave G in Council Bluffs. Gasoline was found poured throughout this residence and then lit on fire.
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4 May 2015
Williamson County Resident Pleads Guilty to Drug OffenseRead the Press Release
On April 30, 2015, Corinthus Bevely, a/k/a "Rent," 45, of Marion, plead guilty to a one-count indictment charging conspiracy to distribute cocaine and crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between March 2014 and December 2014, in Williamson County. The offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Bevely is currently being held without bond pending an August 27, 2015, sentencing hearing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group. The Williamson County State’s Attorney’s Office also assisted in the investigations.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Weirton man sentenced for unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Ian K. Saunders, 35, of Weirton, West Virginia, was sentenced today to 51 months in prison for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Saunders, who is addicted to heroin, was discovered in January 2014 in possession of four rifles and two pistols. He pled guilty in August 2014 to one count of “Unlawful Drug User and Addict in Possession of a Firearm.” As part of the sentence issued today, Saunders was also ordered to pay restitution in the amount of $8,000.00.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco and Firearms, the Brooke County Sheriff’s Department, and the Weirton Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
U.S. Attorney Daly Appointed to Attorney General's Advisory Committee, National Commission on Forensic ScienceRead the Press Release
U.S. Attorney General Loretta Lynch has appointed Deirdre M. Daly, U.S. Attorney for the District of Connecticut, to the 21-member Attorney General’s Advisory Committee (AGAC). The appointments of U.S. Attorney Daly and five other U.S. Attorneys were effective on April 29, 2015.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys. There are 93 U.S. Attorney Offices located throughout the United States and its Territories.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
Daly has also been appointed to serve on the National Commission on Forensic Science, which the Department of Justice established in 2013 to improve the reliability of forensic science. Co-chaired by Acting Deputy Attorney General Sally Q. Yates, the Commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country.
More information on the National Commission on Forensic Science can be found at www.justice.gov/ncfs
Daly was presidentially appointed and sworn in as the U.S. Attorney for the District of Connecticut on May 28, 2014. Daly previously served as the U.S. Attorney in an acting or interim capacity since May 14, 2013. From July 2010 to May 2013, Daly served as the First Assistant U.S. Attorney and had oversight of both the Criminal and Civil Divisions. From 1985 to 1997, Daly was an Assistant U.S. Attorney in the Southern District of New York, where she prosecuted a wide range of cases from racketeering and murder to corruption and fraud and later served as the Assistant-In-Charge of White Plains Office for three years. After leaving the Justice Department, Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring.
The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The Office employs approximately 63 Assistant U.S. Attorneys, 51 staff members and eight contractors at offices in New Haven, Hartford and Bridgeport.
Three Indicted on Federal Charges Related to Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – A federal grand jury today indicted Michael Andrew Davila, age 26, of Berwyn Heights, Maryland, Elsie Liseth Pazmino, age 28, also of Berwyn Heights, and John David Hamlett, age 32, of Laurel, Maryland, for conspiracy to engage in sex trafficking of a minor, sex trafficking of a minor, and transportation of a minor for prostitution.
The indictment 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the three count indictment, between January and March 2015, the defendants conspired to, and did, have the victim, who was under the age of 18, engage in commercial sex acts.
Specifically, the indictment alleges that Davila enticed the victim to engage in prostitution and created and posted advertisements on the Internet that advertised the victim for prostitution. According to the indictment, the advertisements used a false name and age for the victim and included pictures of another female, not the victim. Davila and Pazmino allegedly answered text messages and calls from clients seeking to engage in sexual acts with the victim and arranged “dates” for the victim with those clients. According to the indictment, Davila and Pazmino arranged and paid for hotel rooms in which the victim engaged in prostitution. The defendants allegedly transported the victim to locations within and outside Maryland to engage in prostitution and benefited financially from the proceeds of the victim’s prostitution.
The defendants face a maximum sentence of life in prison. Davila, Pazmino and Hamlett were previously charged by criminal complaint. After an initial appearance on the charges in the criminal complaint, Davila and Hamlett were ordered to be detained and Pazmino was released under the supervision of U.S. Pretrial Services. No date has been set for the defendants’ initial appearance and arraignment on the indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Conor Mulroe, who are prosecuting the case.
The Executive Office for Immigration Review Announces I³Read the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced that it has launched eInfo, a web-based application that allows registered attorneys and fully accredited representatives to view their clients’ case information. eInfo provides similar information to that which is currently available by telephone via the Automated Case Information Hotline (also known as the “1-800 phone number”). Users can retrieve information such as future hearing dates, decision information and case appeals.
eInfo brings EOIR’s electronic applications to three, joining eRegistry and eFiling, and creating the new Internet Immigration Information application known as I³. I³ offers electronic access and filing for the immigration courts and the Board of Immigration Appeals.
“EOIR continues to work toward a paperless environment,” said EOIR Director Juan P. Osuna. “eInfo is the latest complement to our long-term plan to provide continuous electronic access to immigration proceedings.”
EOIR has also updated its online Action Center, located on EOIR’s homepage, to provide users easy access to the electronic applications portal. Please see the following link for more details and frequently asked questions: I³ Frequently Asked Questions.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Springfield Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – Luis Oppenheimer, 27, of Springfield, pleaded guilty today to conspiracy to possess with intent to distribute and to distribute heroin, and possession with intent to distribute and distribution of heroin. U.S. District Judge Mark G. Mastroianni scheduled sentencing for August 20, 2015.
On Oct. 6, 2013, Oppenheimer sold heroin to an undercover federal agent in Springfield. He also admitted that, during the transaction, he accepted $400 in exchange for drugs after his co-conspirator handed heroin to the undercover agent. Oppenheimer’s co-conspirator, Jose Vargas, pleaded guilty to the same charges in March 2015. The drug purchase was captured on video.
The charge of conspiracy to possess with intent to distribute heroin provides a sentence of no greater than 20 years in prison, 3-5 years supervised release, and a fine of $1 million. The charge of distribution of heroin provides a sentence of no greater than 20 years in prison, 3-5 years supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Six Individuals from Colorado Are Charged with Prison Refund Fraud SchemeRead the Press Release
DENVER – Raul Caraveo, age 43, Pamila Lucero, age 40, Sabrina Caraveo, age 31, Eugene Chavez, age 43, Carolina Aragon, age 58, and Christina Portillos, age 35, all from Colorado, were charged for conspiracy to file false IRS refunds, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Gilbert R. Garza announced. All six defendants were indicted by a federal grand in Denver on April 7, 2015, which remained sealed until those charged had their initial appearances before a U.S. Magistrate Judge last week.
According to the indictment, beginning in February 2008, and continuing until May 2014, the defendants and unindicted coconspirators conspired with each other to defraud the Internal Revenue Service by submitting or causing to be submitted false claims for income tax refunds.
Raul Caraveo, while incarcerated within the Colorado Department of Corrections (DOC), obtained the identifying information of fellow inmates and inmates’ relatives to include names, dates of birth, and social security numbers. Caraveo and fellow DOC inmate Eugene Chavez used this information to generate false Form 1040A tax returns, listing the names of inmates and their relatives as either the primary tax payer or as a dependent of that alleged tax payer, and entering false wage and income information on the Forms 1040A. They submitted to the IRS tax returns for the years 2005 through 2013 with similar characteristics to include but not limited to Form 1040A, Earned Income Tax Credits, and all requested refunds that ranged between $2,491 and $3,052.
In most instances, Raul Caraveo and Eugene Chavez would fill out Form 1040A returns and mail them from prison to Pamila Lucero, Sabrina Caraveo, or Carolina Aragon. At other times, Raul Caraveo, Eugene Chavez, and other inmates would provide missing information for the returns to Pamila Lucero, Sabrina Caraveo, or Carolina Aragon, and direct them to add that information to the returns.
Almost all of the false returns used one of approximately a dozen addresses provided by Pamila Lucero, Sabrina Caraveo, Carolina Aragon, Christine Portillos, and unindicted co-conspirators. Once the packages of returns were completed, Pamila Lucero, Sabrina Caraveo, or Carolina Aragon would mail them to the IRS Service Center for processing.
During the course of this conspiracy, over 250 false claims for income tax refunds were submitted to the Internal Revenue Service in an attempt to receive fraudulent refunds.
All six defendants were charged with count one, count of conspiracy to file false claims for a refund. The remaining counts two through thirty-seven, are false claims for a refund, are charged as follows: Raul Caraveo 33 counts, Pamila Lucero 32 counts, Sabrina Caraveo 29 counts, Eugene Chavez 30 counts, Carolina Aragon 3 counts and Christina Portillos 7 counts.
Conspiracy to file false claims for a refund, if convicted, carries a penalty of not more than 10 years imprisonment, and up to a $250,000 fine, per count. False claims for a refund, carries a penalty of not more than 5 years imprisonment, and up to a $250,000 fine, per count.
This case is being investigated by Internal Revenue Service – Criminal Investigation (IRS CI). The defendants are being prosecuted by Assistant U.S. Attorney Martha A. Paluch.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Shafter Man Pleads Guilty to Cocaine SmugglingRead the Press Release
FRESNO, Calif. — A Shafter man pleaded guilty today to conspiring to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced.
Jimmy Gil, aka Joselin Jimelet Gil Sanchez, aka Joselin Gil, aka Gilberto Sanchez, 35, of Shafter, pleaded guilty to conspiring to smuggle cocaine with Jose Luis Montoya-Salazar, aka Rafael Salazar-Sanchez (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico. As part of the plea agreement, Gil will forfeit $3.1 million in cash that drug agents seized during the investigation of the case.
According to court documents, Gil conspired with Eslava, the driver of a tractor trailer containing cocaine smuggled into the United States from Mexico at the Otay Mesa Port of Entry, to a location in Bakersfield. After Gil took possession of the tractor trailer, he and Montoya began unloading 18 one-kilogram packages of cocaine from a hidden compartment in the underside of the tractor trailer and placing the cocaine in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload 20 more kilograms of cocaine concealed in the tractor trailer. Follow-up investigation resulted in the seizure of $3,104,661 in cash hidden in an asphalt roller at another location in Bakersfield. The seized cocaine has a street value of over $3 million.
Gil is scheduled to appear for sentencing before U.S. District Judge Lawrence J. O’Neill in Fresno on July 27, 2015. Gil faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. Eslava previously entered a guilty plea and is scheduled for sentencing on May 11, 2015. Any sentence imposed would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Montoya are still pending and are only allegations; Montoya is presumed innocent until and unless proven guilty beyond a reasonable doubt. Montoya, if convicted, and Eslava are subject to removal to Mexico after serving any prison sentence imposed.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Raleigh Man Sentenced in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, PAUL FANTZ, 32, was sentenced by Senior United States District Judge W. Earl Britt to 100 months imprisonment followed by 15 years supervised release for receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), during his arraignment.
On March 5, 2014, a Criminal Information was filed charging FANTZ with the violation. On May 12, 2014, FANTZ pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to the investigation, FANTZ was seen attempting to videotape a child in the men’s restroom at the North Carolina State Fair in October, 2013. He was stopped and questioned by Wake County Sheriff deputies. After admitting to the violation, FANTZ was placed under arrest and a search warrant was obtained for his Ipone and laptop. Forensic examination revealed at least 100 videos of boys urinating. Another 100 images were discovered of child pornography on the laptop.
Investigation of this case was conducted by the Wake County Sheriff’s Department Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Owner of restaurants in Stark and Summit counties sentenced to nearly three years in prison for fraud and hiring undocumented workersRead the Press Release
A Uniontown man was sentenced to nearly three years in prison for his role in a conspiracy to hire undocumented workers at a chain of restaurants in Stark and Summit counties and pay them less than minimum wage and sometimes only in tips, said Steven M. Dettelbach, United States Attorney for the Northern District.
Miguel Castro, 44, was sentenced to 33 months in prison by U.S. District Judge Sara Lioi. Castro owned the “Mariachi Locos” and “Mariachi Cocos” chain of restaurants with locations in Akron, Stow, Tallmadge and North Canton. He previuosly pled guilty to one count of mail fraud and one count of conspiracy to harbor aliens.
Castro was also ordered to forfeit $100,000 and pay $7,792 in restitution.
His wife, Monica Castro, 44, was sentenced to three months of incarceration and five months of home detention after previously pleading guilty to related crimes.
“These restaurant owners took advantage of their workers’ immigration status for their own profit,” Dettelbach said. "They ignored the laws and regulations, and now must be held accountable for their actions."
The Castros owned the restaurants since 2002. They defendants engaged in the practice of hiring undocumented workers who were illegally present in the United States and conspired to shield these workers from detection by paying them in cash, excluding them from payrolls, leasing housing for the workers and aiding the workers in obtaining fraudulent work documentation, according to court documents.
They also used the U.S. mail to submit false wage reports to the state of Ohio. The defendants’ employment practices enabled them to enrich themselves because they paid the undocumented workers less than minimum wage and did not pay these workers for overtime hours worked. In some cases, the defendants paid these workers only the tips that the workers received from their customers, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following a joint investigation by agents of Department of Homeland Security and the Department of Labor -- Office of Inspector General.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Wayne Lippman of Walnut Creek, California. To date, as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California, 55 individuals have agreed to plead or have pleaded guilty.
According to court documents, between August 2008 and January 2011, Lippman conspired with others not to bid against one another and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda and Contra Costa counties. Lippman made and received payoffs for the agreements not to bid, diverting money that would have otherwise gone to mortgage holders and other beneficiaries.
“This plea is the latest step in the Antitrust Division’s ongoing efforts to hold investors accountable for colluding at foreclosure auctions and denying lenders and homeowners the fair market value of their property,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “We will continue to work with our law enforcement partners to investigate and prosecute collusion at real estate foreclosure auctions and to restore confidence in the housing market.”
“The negative impact resulting from bid rigging and fraud at public foreclosure auctions is far-reaching,” said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office. “The FBI remains committed to identifying such violations and we are grateful for the unwavering dedication to justice shared by all of our law enforcement partners.”
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Alameda and Contra Costa counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Lippman Information
New York man sentenced to five years for cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cedric Malachi Jones, 33, of South Ozone Park, New York, was sentenced today to 60 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Jones was discovered in possession of cocaine in Mineral County, West Virginia in September 2013. He pled guilty in August 2014 to one count of “Possession with Intent to Distribute Cocaine.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force led the investigation.
Chief U.S. District Judge Gina M. Groh presided.
New York State Senate Majority Leader Dean Skelos and Son Arrested on Corruption ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-In-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that New York State Senate Majority Leader DEAN SKELOS and his son ADAM SKELOS were taken into custody this morning on charges that they extorted those with business before New York State to make payments to ADAM SKELOS, with the expectation that such payments would result in official action by DEAN SKELOS. The defendants were also charged with bribery and honest services fraud schemes. Among other things, DEAN SKELOS is accused of illegally obtaining a $20,000 payment for ADAM SKELOS from a large real estate developer dependent on DEAN SKELOS for tax breaks and a $10,000 monthly payment from an environmental technology company seeking government-funded contracts in New York State. DEAN SKELOS and ADAM SKELOS surrendered to the FBI in Manhattan, this morning, and are scheduled to appear before U.S. Magistrate Judge Henry B. Pitman in Manhattan federal court later today.
U.S. Attorney Preet Bharara said: “As the Complaint charges, in six counts, Dean Skelos unlawfully used his power and influence as Senate Majority Leader, repeatedly, to illegally enrich his son, Adam, and indirectly, himself. And, more specifically, the Complaint, in multiple places, alleges that Dean Skelos’s support for certain infrastructure projects and legislation was often based, not on what was good for his constituents or good for New York, but rather on what was good for his son’s bank account. By now, two things should be abundantly clear. First, public corruption is a deep-seated problem in New York State. It is a problem in both chambers; it is a problem on both sides of the aisle. And second, we are deadly serious about tackling that problem.”
FBI Assistant Director-In-Charge Diego Rodriguez said: “The charges announced today describe the alleged criminal activity of Dean and Adam Skelos. In particular, the defendants are alleged to have conspired to take advantage of Dean Skelos’s powerful position within state government to influence and extort those with business before the state. When all was said and done, Dean Skelos is charged with having caused more than $200,000 to be paid to Adam Skelos in exchange for backdoor bribes. We hold our elected representatives to the highest standards, and will continue to root out corruption in all forms and at all levels of government: municipal, state, and federal.”
According to the allegations contained in the Complaint* unsealed today in Manhattan federal court:
Since his re-election in 2010, DEAN SKELOS has served as Majority Leader or Co-Majority Leader of the New York State Senate, a position that gives him significant power over the operation of New York State government. DEAN SKELOS used this power to pressure companies with business before New York State to make payments to his son, ADAM SKELOS, who substantially depended on these companies for his income. DEAN SKELOS and ADAM SKELOS were able to secure these illegal payments through implicit and explicit representations that DEAN SKELOS would use his official position to benefit those making the payments, which DEAN SKELOS in fact did when it was necessary to ensure that the payments to ADAM SKELOS continued.
DEAN SKELOS, as charged, obtained over $200,000 in payments to ADAM SKELOS through persistent and repeated pressure applied to a senior executive of a major real estate developer (“Developer-1”) who is cooperating with the Government and referred to in the Complaint as CW-1. In response to this pressure, CW-1 arranged for Developer-1 to pay $20,000 to ADAM SKELOS and further arranged for an environmental technology company (the “Environmental Technology Company” or “Company”) in which Developer-1’s founding family and CW-1 owned stakes to make $10,000 monthly payments to ADAM SKELOS. CW-1 arranged for these payments to ADAM SKELOS due to Developer-1’s substantial dependence on DEAN SKELOS for real estate tax abatements and other real estate legislation favorable to Developer-1, and based in part on a statement from DEAN SKELOS that he would punish those in the real estate industry who defied him. In return for the payments to ADAM SKELOS, and to ensure that they would continue, DEAN SKELOS took numerous official actions to benefit both Developer-1 and the Environmental Technology Company, including promoting State legislation beneficial to the companies.
Dean Skelos’s Demands For Payments To Adam Skelos
Beginning in approximately 2010, DEAN SKELOS met repeatedly with CW-1 and other representatives of Developer-1 to request that Developer-1 provide sales commissions to his son, ADAM SKELOS, claiming that ADAM SKELOS was suffering financially. DEAN SKELOS met repeatedly with CW-1 to request payments for his son, including during meetings where CW-1 and others from Developer-1 were lobbying DEAN SKELOS with respect to real estate legislation. CW-1 was concerned about Developer-1 making payments to ADAM SKELOS but did not want to ignore DEAN SKELOS’s repeated requests in light of his position as Senate Majority Leader and his importance in ensuring the passage of real estate legislation beneficial to Developer-1.
Payments To Adam Skelos Arranged By CW-1
As charged, CW-1 responded to the requests from DEAN SKELOS by arranging for payments to ADAM SKELOS that would be difficult to trace to Developer-1. First, CW-1 caused a $20,000 check to be issued to ADAM SKELOS from a title insurance company dependent on Developer-1 for business, even though ADAM SKELOS did no work whatsoever in connection with the real estate transaction for which title insurance was being issued. CW-1 made this payment after ADAM SKELOS forwarded to his father, DEAN SKELOS, an e-mail that ADAM SKELOS had sent to CW-1 requesting a title insurance commission. After receiving the email, DEAN SKELOS responded “Following up, be patient” during the same time period DEAN SKELOS was contacting CW-1 and a lobbyist working for Developer-1 to renew his request for payments to his son.
In addition to the $20,000 payment CW-1 convinced the CEO of the Environmental Technology Company to hire ADAM SKELOS as a $4,000 per month “consultant” by telling the CEO that, through payments to ADAM SKELOS, DEAN SKELOS would be able to assist the Environmental Technology Company in winning government-funded contracts in New York State. For example, CW-1 e-mailed the CEO that “there is great potential for [ADAM SKELOS] to exploit his father’s contacts statewide.” Likewise, ADAM SKELOS arranged a conference call between DEAN SKELOS and a senior executive with the Environmental Technology Company who is cooperating with the Government (“CW-2”) to demonstrate that his father would assist the Company in return for payments. Later, after ADAM SKELOS had been hired by the Company on a $4,000 per month contract, CW-1 told the CEO on behalf of ADAM SKELOS and DEAN SKELOS that they would block Nassau County’s approval of a $12 million contract with the Environmental Technology Company unless payments to ADAM SKELOS were sharply increased. In addition, CW-1 e-mailed the CEO that ADAM SKELOS’s “dad called” and “I think they don’t think [the Nassau County contract is] worth pushing through” absent higher payments to ADAM SKELOS. The CEO then agreed to increase ADAM SKELOS’s payments to $10,000 per month, and CW-2 responded in an e-mail that the Environmental Technology Company was being “held hostage.”
Official Actions By Dean Skelos
As charged in the Complaint, DEAN SKELOS took official actions beneficial to Developer-1 in return for the $20,000 payment to ADAM SKELOS and Developer-1’s role in arranging for payments to ADAM SKELOS from the Environmental Technology Company. Among other things, DEAN SKELOS voted for real estate-related legislation lobbied for by Developer-1, including the renewal of tax abatement and rent regulation legislation crucial to the financial success of Developer-1 enacted in 2011, and an expansion of the tax abatement program in 2013.
With respect to the Environmental Technology Company, DEAN SKELOS and ADAM SKELOS periodically communicated to the CEO and CW-2 directly and indirectly that DEAN SKELOS would use his official position to benefit the Company so as to induce the Company to continue making payments to ADAM SKELOS. And, when the Company at times became frustrated with the limited progress in obtaining and collecting on government-funded contracts, DEAN SKELOS took official action to benefit the Company, including the following actions described in the Complaint:
- DEAN SKELOS used his official position to assist the Environmental Technology Company in applying and obtaining approvals for a $12 million contract with Nassau County, including by consulting with CW-2 on the Environmental Technology Company’s proposal and making calls to Nassau County officials to expedite the contracting process. Through these actions, ADAM SKELOS’s monthly payment from the Company more than doubled from $4,000 to $10,000.
- DEAN SKELOS pressured Nassau County officials to make payments to the Environmental Technology Company, stating at one point that his son could lose his job if payments were not expedited. For example, DEAN SKELOS was intercepted over a Court-authorized wiretap in a call with the Nassau County Executive in which he asked for an explanation for the lack of payments, complaining on behalf of ADAM SKELOS that “somebody feels like they’re getting jerked around the last two years.” Nassau County officials were concerned that if they did not pay ADAM SKELOS then DEAN SKELOS would not be responsive to the County’s legislative needs. Indeed, when Nassau County was slow in making payments to the Company, ADAM SKELOS told CW-2 on an intercepted call that Nassau County was “burning bridges left and right” and that the “State is not going to do a fucking thing for the County” because “they haven’t helped us with what we needed.”
- DEAN SKELOS used his official position to promote hydrofracking wastewater treatment regulations which would essentially require the use of a product of the type marketed by the Environmental Technology Company, and that would result in additional commission payments to ADAM SKELOS. To this end, DEAN SKELOS met privately with ADAM SKELOS and CW-2 on the Company’s fracking proposals and directed a member of his Senate Staff to arrange a meeting with a New York State government official and employees of the Environmental Technology Company. When the Governor of New York announced in December 2014 that New York State would continue to ban fracking, DEAN SKELOS repeatedly reassured ADAM SKELOS that “we’re going to totally focus on the other thing now,” referring to other legislative action that could benefit the Company.
- DEAN SKELOS used his official position in an attempt to direct a portion of a $5.4 billion sum that the State had recovered in litigation with financial services companies (the “Settlement Funds”) in a way that would benefit water projects and contracts that were being pursued by the Environmental Technology Company. For example, when ADAM SKELOS expressed concern in an intercepted call that the Governor was “pushing to spend all that money on his own” in his budget proposal, DEAN SKELOS told his son “don’t worry” and referred him to the speech that a fellow Senator would give in response to the Governor, in which DEAN SKELOS had inserted language advocating for using the Settlement Funds for “sewer and water systems.”
- DEAN SKELOS also used his official position in an attempt to enact State “design-build” legislation that Nassau county officials had explained was necessary to fully implement the $12 million contract with the Environmental Technology Company. Nassau County officials provided Dean Skelos with proposed legislation which Dean Skelos stated he would support if backed by the Governor. In a recorded call, ADAM SKELOS told CW-2 that DEAN SKELOS was “going to be sure that gets done” and that the plan involved the Nassau County executive lobbying the Governor to “[k]ind of make [the Governor] think it’s his idea and you’re supporting his agenda.” ADAM SKELOS later told CW-2 and the CEO that while design-build legislation would not be enacted as part of the budget process, DEAN SKELOS would continue to pursue it in the legislative session continuing through June 2015.
Caution Following the Arrest of the Assembly Speaker
After the Speaker of the New York State Assembly was arrested on January 22, 2015 and media outlets reported shortly thereafter that DEAN SKELOS was under investigation, the defendants became more cautious in pursuit of the Company’s legislative goals. ADAM SKELOS, for example, obtained what he referred to as his “burner phone” – a common slang term to refer to a phone that is not traceable to the user – to use for speaking to CW-2 about DEAN SKELOS’s progress in obtaining legislative benefits for the Environmental Technology Company. DEAN SKELOS is also caused the cancellation of a meeting Adam Skelos had arranged in furtherance of the scheme, commenting in an intercepted phone call “right now we are in dangerous times Adam.”
At the direction of the Government, CW-2 informed ADAM SKELOS in late March of this year that due to the limited progress on the Company’s legislative goals, the CEO of the Environmental Technology Company was considering terminating his $10,000 monthly payment. ADAM SKELOS then placed an intercepted call to DEAN SKELOS, telling his father he “lost something that I had . . . the water . . . the water thing.” In response, DEAN SKELOS told ADAM SKELOS that “we’ll try to get it back at some point.” DEAN SKELOS advised ADAM SKELOS not to “panic over this” and not to “burn bridges,” but rather to just tell the Environmental Technology Company that “hopefully we can get it all going again.” ADAM SKELOS then placed an intercepted call to the CEO of the Environmental Technology Company and stated he would draft a letter of separation “just in case I ever get questioned by anyone” but that “really nothing is going to change.”
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DEAN SKELOS, 67, and ADAM SKELOS, 32, both of Rockville Centre, New York, are each charged with three counts of extortion under color of official right, two counts of soliciting bribes in connection with a federal program, and one count of conspiracy to commit honest services fraud. The extortion and honest services counts carry a maximum penalty of 20 years in prison and the soliciting bribes counts carry a maximum of 10 years. 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 a judge.
U.S. Attorney Bharara praised the work of the FBI and the Criminal Investigators of the United States Attorney’s Office, who jointly conducted this investigation.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jason Masimore, Rahul Mukhi, Tatiana Martins, and Thomas McKay are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
* As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
US v. Dean and Adam Skelos Complaint
New Hampshire Man Pleads Guilty to Felon in Possession of A FirearmRead the Press Release
CONCORD, N.H. –Richard Lariviere, 45, of Nashua, plead guilty today in United States District Court for the District of New Hampshire to a felon in possession of a firearm charge, announced Acting United States Attorney Donald Feith.
On May 20, 2014, members of the Nashua Police Department obtained a search warrant for a Mercedes operated by Lariviere. The officers stopped the Mercedes in the parking lot of the Country Barn Motel as Lariviere was driving out of the parking lot. The detectives executed the search warrant and located a loaded, 7.65mm Walther semiautomatic handgun with serial number 20384 within a black bag on the vehicle's front passenger seat. The police subsequently applied for and received permission to execute a search warrant for Lariviere’s hotel room where the police found one box of .22 caliber ammunition in addition to Lariviere's license and a check stub for Lariviere. Lariviere was arrested and agreed to waive his Miranda rights and speak with the detectives. Lariviere admitted that he knew that he could not possess a firearm because he was a convicted felon. On August 11, 2009, Lariviere was convicted of Felonious Assault on a Peace Officer in the State of Ohio, County of Belmont, Court of Common Pleas, Docket Number 09-CR-119, a crime punishable by more than one (1) year imprisonment.
“Enforcement of the federal firearms laws is a priority for this office,” Acting U.S. Attorney Feith stated. “This office will continue to work with our local, state, and federal partners to ensure that the possession of firearms is limited to those legally entitled to own and possess these weapons. Individuals who are legally prohibited from possessing or dealing in firearms, and those who aid or abet illegal possession by others, should expect that they will be prosecuted to the fullest extent of the law.”
Lariviere is facing a maximum of ten years in prison and is scheduled to be sentenced on August 17, 2015. He was detained pending sentencing.
The case was investigated by the Nashua Police Department and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Martinsburg man convicted of unlawful distribution of explosivesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chris O’Connor, 37, of Martinsburg, was convicted in federal court today of unlawful distribution of explosives, United States Attorney William J. Ihlenfeld, II, announced.
In December 2014, O’Connor sold explosives in Berkeley County, West Virginia without the requisite license.
O’Connor pled guilty today to a criminal Information charging him with one count of “Unlicensed Distribution of Explosive Materials.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marshall County woman convicted of heroin and cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Miranda Calissie, 29, of Moundsville, West Virginia, was convicted in federal court today of heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Calissie, along with other individuals, collaborated to distribute heroin and cocaine that had been transported across state lines from Cleveland, Ohio into Northern West Virginia.
Calissie pled guilty today to one count of “Conspiracy.” 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 Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Marshall County Drug and Violent Crime Task Force investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Marion County man convicted of possession of stolen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Richard Wells, 22, of Baxter, West Virginia, was convicted in federal court today of possession of a stolen firearm, United States Attorney William J. Ihlenfeld, II, announced.
Wells was discovered in Lewis County, West Virginia in possession of a stolen .357 caliber revolver. He pled guilty today to a criminal Information charging him with one count of “Aiding and Abetting in the Possession of Stolen Firearms.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.U.S. Magistrate Judge John S. Kaull presided.
Manager/owner of Pain Clinic Is Sentenced to 15 Years in Federal Prison for Conspiracy, Distribution of A Controlled Substance and Money LaunderingRead the Press Release
DENVER -- Keith A. Schwartz, age 47, of Silverthorne, Colorado, was sentenced last week by Senior U.S. District Court Judge John L. Kane to serve 180 months (15 years) in federal prison for conspiracy, distribution of a controlled substance and money laundering, United States Attorney John Walsh announced. Following his prison sentence, Schwartz was ordered to serve 6 years on supervised release. Schwartz was convicted by a jury on October 24, 2014, following a 14-day trial. The jury deliberated for a day and a half before returning a verdict of guilty. Schwartz, who has been in custody since his indictment, remains in custody. Schwartz was indicted by a federal grand jury in Denver on May 22, 2013.
According to the indictment and evidence presented at trial, Schwartz, in conjunction with co-conspirators, all of but one of whom have previously pled guilty, knowingly conspired and agreed to dispense and distribute, or facilitate the dispensing and distribution of controlled substances, to patients at times and in circumstances outside the usual course of professional medical practice. He then laundered the proceeds from the patients through bank accounts in his wife’s name. The patients didn’t have a sufficient medical necessity for the prescription of the controlled substances. The primary prescription drug involved in the case was Oxycodone, with over one half million dosage units prescribed in an 18 month period.
Specifically, Schwartz, using an alias, approached a pain doctor named Kevin Clemmer in May of 2011, who at the time was housed in the Federal Detention Center in Englewood, Colorado after his indictment for the unlawful prescription of controlled substances. Schwartz offered to purchase the list of Clemmer’s patient lists, most of whom received substantially more narcotic or other controlled substance medication than was medically necessary.
That same month, after obtaining the patient list, Schwartz, and his co-conspirators, first saw Dr. Clemmer’s patients in a Holiday Inn in Wheat Ridge, Colorado, where they enlisted and worked with co-conspirator Dr. Joseph Ferrara, who was registered with the DEA to write prescriptions for controlled substances. The pain clinic eventually moved into office space, and Schwartz, who was the owner, manager, organizer and operator, had direct communications with patients regarding Dr. Ferrara’s treatment regimen. The defendant induced Dr. Ferrara to unlawfully write opioid and benzodiazepine prescriptions in large numbers to addicted patients – the amounts of which far exceeded the amount medically necessary and safe to use. In fact, the government presented expert testimony that proved that many of the controlled substance prescriptions written were up to four times the safe medical limit. As a result of the unlawful distribution of controlled substances, medication prescribed by Schwartz’s pain clinic contributed to the death of at least three patients.
The relationship among the co-conspirators began in the summer of 2009, when Schwartz recruited Dr. Ferrara to write medical marijuana recommendations to support Schwartz’s marijuana growing in his house. During 2009 and 2010, the medical marijuana business expanded to include travel throughout the state of Colorado, where Dr. Ferrara wrote medical marijuana recommendations. In May of 2011, the conspiracy shifted its primary focus to distribution of prescription controlled substances while also maintaining the medical marijuana recommendation business.
Schwartz laundered the money obtained by the pain clinic by placing it in bank accounts in corporations in the name of his wife. Schwartz used some of the illegally obtained money to purchase his $1.6 million house out of foreclosure.
“For a fistful of dollars, Defendant Schwartz stoked the epidemic of prescription drug abuse that is killing hundreds of Coloradans every year,” said U.S. Attorney John Walsh. “The painful sentence Schwartz received in this case mirrors the pain and suffering that flowed directly from his criminal conduct.”
“Prescription drug abuse is a serious problem in Colorado and those individuals that are responsible for the illegal and excessive distribution of prescription medicines need to be held accountable and brought to justice," said Barbra Roach, Special Agent in Charge of the Drug Enforcement Administration, Denver Field Division. “This is a great example of Federal and local law enforcement agencies working together to make our community a better place.”
“Because of our financial expertise, IRS CI has been involved in prescription drug abuse investigations and prosecutions around the country. In the Schwartz case IRS CI focused its financial investigative resources on the money laundering activities,” said Gilbert R. Garza, Acting Special Agent in Charge of IRS Criminal Investigation, Denver Field Office. “Thanks to IRS CI Special Agents, over $1,000,000 in assets was seized as part of the investigation, representing some of the defendant’s ill-gotten gains.”
Following the trial, he was found guilty of one count of conspiracy to distribute and dispense controlled substances, prescription drugs outside the course of usual professional medical practice, two counts of distribution and dispensing a controlled substance and aiding and abetting the same, four counts of use of a telephone to facilitate a drug crime, one count of conspiracy to commit money laundering, and 36 counts of money laundering. The defendant was found not guilty of two counts of use of a telephone to facilitate a drug crime and two counts of money laundering.
This case was investigated by the Tactical Diversion Squad (TDS) of the DEA, which includes members of the IRS Criminal Investigation, the Greenwood Village Police Department and the Arvada Police Department.
The defendant was prosecuted by Assistant U.S. Attorney M.J. Menendez.
Man Sentenced for Assaulting A Border Patrol OfficerRead 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 Felix Santos, 41, who was convicted of assaulting an officer of the United States, was sentenced to 14 months in prison.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that on October 24, 2013, Felix Santos yelled at and put his hands on the chest of a United States Border Patrol Agent, who, at the time, was an employee of the United States and engaged in official duties. At the time, the agent was responding to a complaint by a hotel manager that the defendant would not leave the Sheraton Hotel at 300 Third Street, Niagara Falls, New York after being asked to leave multiple times.
"We as a community ask a great deal of our law enforcement officers, said U.S. Attorney Hochul. “One thing we won't tolerate is an officer being assaulted in the course of her or his duties."
The sentencing is the result of an investigation by the Federal Bureau of Investigation and the United States Border Patrol, under the direction Steven J. Oldman, Patrol Agent in Charge.
Madison County Man Charged with Methamphetamine OffenseRead the Press Release
A Southern Illinois resident was indicted on April 21, 2015, for possession with the intent to distribute methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
James Lynn Wagner, 49, of Madison County, was charged in a one-count indictment of knowingly and intentionally possessing with the intent to distribute 50 grams or more of methamphetamine. The indictment alleges that the offense occurred on or about February 27, 2014, within the Southern District of Illinois. Wagner made his initial appearance and arraignment in federal court on May 1, 2015, in East Saint Louis. He is temporarily detained in the custody of U.S. Marshals until his detention hearing set on Wednesday, May 6, 2015.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a statutory mandatory minimum of 5 years imprisonment and carries a maximum penalty of up to 40 years in federal prison, to be followed by 4 years’ supervised release, and an $8,000,000.00 fine.
The ongoing investigation is being conducted by the U.S. Postal Inspection Service and the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI).
The case is assigned to Special Assistant United States Attorney Vanessa T. Lu for prosecution.
Los Lunas Man Pleads Guilty to Federal Child Exploitation ChargeRead the Press Release
ALBUQUERQUE – Victor Castellon, 51, of Los Lunas, N.M., pled guilty today in federal court in Albuquerque, N.M., to a child exploitation charge. Under the terms of his plea agreement, Castellon will be sentenced within the range of ten to 15 years followed by a term of supervised release to be determined by the court. Castellon will also be required to register as a sex offender.
Castellon was arrested on Feb. 11, 2015, on an indictment charging him with using a cellular telephone in an attempt to entice a minor to engage in a sexual activity. According to the indictment, Castellon committed the offense on Sept. 17 and 18, 2014, in Bernalillo County, N.M.
During today’s change of plea hearing, Castellon pled guilty to the indictment. In his plea agreement, Castellon admitted that on Sept. 17, 2014, he responded to a notice on a website that appeared to be posted by a minor, and he initiated a conversation with the minor regarding the possibility of meeting on Sept. 18, 2014, for the purpose of engaging in sexual activity. Unbeknownst to Castellon, he was communicating with an undercover law enforcement agent posing as a child. Castellon was taken into state custody when he arrived at the location where he arranged to meet the “minor.”
Castellon has been in federal custody since his arrest on Feb. 11, 2015. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Sexual Predator and Exploitation Enforcement Detail (SPEED) of Homeland Security Investigations (HSI) Albuquerque office and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
This case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Last 3 of 27 Defendants Sentenced on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – The remaining three of the 27 defendants charged in connection with an investigation into drug trafficking and illegal firearm possession in Catawba County were sentenced today, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Tom Adkins of the Hickory Police Department (HPD) join Acting U.S. Attorney Rose in making today’s announcement.
Lavoris Hector, 27, of Hickory, N.C., was sentenced to 10 years in prison, followed by five years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine. Kenneth Norman, 36, of Hickory, pleaded guilty to possession with intent to distribute crack cocaine and was sentenced to 15 months in prison followed by three years of supervised release. Tyree Rhinehardt, 22, of Hickory, was sentenced to 12 months and one day in prison and three years of supervised release. He pleaded guilty to aiding and abetting possession with intent to distribute crack cocaine.
According to filed court documents and court proceedings, the defendants were charged following a seven-month investigation which began in October 2012, targeting individuals who participated in illegal drug transactions and gun trafficking in and around Hickory. Over the course of the investigation law enforcement seized more than 80 firearms, including 53 handguns, 19 rifles, 10 shotguns and one short barrel shotgun. Law enforcement also seized more than 1,425 grams of narcotics, including over 1,125 grams of cocaine and more than 230 grams of marijuana, with a total street value of over $55,000.
The following defendants have been sentenced to date, in connection with the case:
- Kerston Deshawn Edwards was sentenced to 188 months in prison and four years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine.
- Damion Eugene Houston was sentenced to 120 months in prison and five years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine.
- Jonathan Marquis Meyers was sentenced to 96 months in prison and four years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine.
- Traquon Rashaad Davis was sentenced to 84 months in prison and four years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime.
- Brandon Jaqwan Sifford was sentenced to 81 months in prison and five years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime.
- Christopher Durand Myers was sentenced to 78 months in prison and three years of supervised release. He pleaded guilty to aiding and abetting possession with intent to distribute crack cocaine.
- Damion Jordan Armstrong was sentenced to 77 months in prison and five years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and possession of a firearm by a felon.
- Anthony Roger Mull was sentenced to 77 months in prison and four years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and possession of a firearm by a felon.
- Xavier Ahmad Cade was sentenced to 68 months in prison followed by two years of supervised release. He pleaded guilty to possession of a firearm by a felon.
- Keon Maurquie Gaither was sentenced to 64 months in prison and three years of supervised release. He pleaded guilty to one count of conspiracy to possess with intent to distribute crack cocaine and possession of a firearm by an obliterated serial number.
- William Shalon Linebarger was sentenced to 63 months in prison and four years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine.
- Anthony Lamar Mason was sentenced to 63 months in prison and three years of supervised release. He pleaded guilty to aiding and abetting possession with intent to distribute crack cocaine.
- Brandon Colbert was sentenced to 60 months in prison and four years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine.
- Donald Lavar Ramseur was sentenced to 60 months in prison and four years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and three counts of aiding and abetting possession with intent to distribute crack cocaine.
- Cortez Lamar Rogers was sentenced to 47 months in prison and three years of supervised release. He pleaded guilty to felon in possession of a firearm.
- Chaetez Sean Clayton was sentenced to 46 months in prison and three years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine.
- Larry Elwood Steptoe was sentenced to 46 months in prison and three years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine.
- Donnell Lavon Thomas was sentenced to 38 months in prison and one year of supervised release. He pleaded guilty to possession of a firearm by a felon.
- Larry Jermaine Linebarger was sentenced to 37 months imprisonment and three years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and aiding and abetting possession with intent to distribute crack cocaine.
- Kadeem Jamal Albright was sentenced to 33 months in prison and three years of supervised release. He pleaded guilty to two counts of possession with intent to distribute crack cocaine; one count of conspiracy to possess with intent to distribute crack cocaine and one count of aiding and abetting possession with intent to distribute crack cocaine.
- Antonio Rashawn Whitworth was sentenced to 33 months in prison and three years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine.
- Kianta Martese Davis was sentenced to 30 months in prison followed by threeyears of supervised release.He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine.
- Kenteze Rayvon Martin was sentenced to 30 months in prison and three years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine.
- Eric Jay Ramirez was sentenced to 30 months in prison and three years of supervised release. He pleaded guilty to felon in possession of a firearm.
- Paris Michael Thompson was sentenced to 27 months in prison and three years of supervised release. He pleaded guilty to conspiracy to possess with intent to distribute crack cocaine.
- Isreal Lerock Linebarger was sentenced to probation. He pleaded guilty to one count of unlawful dealing in firearms.
- Marquice Tyrone Streeter was sentenced to time served. He pleaded guilty to conspiracy with intent to distribute crack cocaine.
The investigation was conducted by the ATF and Hickory PD.Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte is leading the prosecution.
Lackawanna County Man Charged with Receiving and Distributing Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Archbald man was indicted today by a federal grand jury in Scranton on charges of receiving and distributing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Michael J. Costello, age 41, used a computer to download and distribute images of child pornography during January through November 2014.
Costello is charged in separate counts with receiving and distributing child pornography, attempted receipt of child pornography, and distribution of child pornography. He is also charged with one count of possession of child pornography.
The Indictment stems from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and the Lackawanna County District Attorney’s Office.
If convicted, Costello faces a mandatory minimum sentence of five years in prison for the receipt and distribution charges, and a maximum sentence of 20 years in prison for each charge.
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."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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La Jolla Con-Man’s Investment Scheme Nothing More Than A Shell GameRead the Press Release
SAN DIEGO – James Yiu Lee, a resident of La Jolla, was sentenced today to 78 months in prison for fraud arising from the loss of clients’ funds through on-line trading.
Lee solicited clients through a string of false representations, including that he was a wealthy attorney with numerous graduate degrees who had significant trading experience. Among other things, Lee failed to disclose that he had previously been convicted of defrauding investors. As part of his sentence, U.S. District Court Judge Roger T. Benitez ordered Lee to repay over $10.5 million in losses to his former clients.
Lee pleaded guilty to obstructing justice in October 2014, at which time he admitted to hiding clients’ funds in shell corporation accounts and using a series of elaborate transactions to avoid having to pay restitution he owed the United States from his previous felony conviction. Lee was previously convicted of defrauding investors and embezzling from their pension funds in December 1997 in U.S. District Court for the Northern District of California. For the prior offense, Lee was sentenced to 30 months in custody and ordered to pay $2.88 million in restitution. After his release from custody, Lee began a new scheme in San Diego by creating corporations in the names of other persons in order to prevent the United States from finding and collecting his assets. To date, Lee has paid less than $30,000 of the previously-ordered restitution.
By 2009, Lee actively sought clients’ funds for on-line trading by falsely claiming he was a CPA who had Ph.D., J.D., and M.B.A. degrees. Lee also lied about his professional trading experience and his ability to cover potential losses -- assuring clients he could and would cover 50% of any realized losses. In exchange, Lee instructed clients to send management fees and 50% of realized profits to bank accounts opened in the name of his shell corporations, including San Diego-based ELX Int., Inc. (“ELX”), which intentionally failed to list Lee as a corporate officer or on its bank account. Once the assets were under his control, Lee transferred them to other shell accounts under his control and spent hundreds of thousands of dollars on personal expenses, including lavish international trips and credit card bills for high-end department stores.
By January 2011, Lee’s trading activity created significant realized losses for his various clients. Rather than pay clients for 50% of the losses as promised, Lee restructured billing invoices to disguise the losses. To compound the lies, he then fraudulently billed his clients for non-existent gains. Several victims reported losing retirement funds and life savings as a consequence of accepting Lee’s misrepresentations.
United States Attorney Laura Duffy said, “Although the significant custodial sentenced imposed on the defendant for his brazen and calculated crime may be of little compensation to his victims who lost millions, he will be unable to continue his fraudulent scheme to the detriment of others. It is unfortunate that Mr. Lee did not learn his lesson after his first fraud conviction. He will now have a significant period to reflect on the victims whose savings hard-earned money he squandered.”
DEFENDANT James Yiu Lee Age: 59 SUMMARY OF CHARGES Case Number: 14CR2937-BEN Obstruction of Justice, in violation of Title 18, United States Code, Section 1503
Maximum penalty: 10 years of custody; $250,000 Fine
DEFENDANT James Yiu Lee Age: 59 SUMMARY OF PREVIOUS CHARGES Case Number: 95CROO41-MMC-1 (NDCA) Wire Fraud (18 U.S.C. § 1343) & Pension Embezzlement (18 U.S.C. § 664) INVESTIGATING AGENCIESFederal Bureau of Investigation
Indianapolis man charged with production and possession of child pornographyRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced that Russell C. Taylor, 43, Indianapolis, was charged by a criminal complaint today with seven counts of production and one count of possession of child pornography. Taylor appeared before a federal Magistrate Judge earlier this afternoon for his initial appearance, following his arrest last night by the Indianapolis Metropolitan Police Department, the Indiana State Police, and the Federal Bureau of Investigation. These agencies are part of the Indiana Internet Crimes Against Children Task Force and the FBI Safe Streets Violent Crimes Against Children Task Force. The federal charges arose from a joint investigation of criminal activity started by the Indiana State Police.
“Protecting those who cannot protect themselves will always be a priority of this office,” said Minkler. “Adults who sexually exploit children by producing child pornography knowingly cause vast harm to their victims and should expect appropriately strong punishment.”
Law enforcement agents received information that Taylor was allegedly in possession of illegal pornographic images and served a warrant at his home on April 29, 2015. During the search, the investigators alleged discovered a cache of sexually explicit photos and videos Taylor allegedly produced by secretly filming minor children at this home. The investigators also allegedly found over 400 videos of child pornography on computers and storage media recovered from Taylor’s home office in his Indianapolis residence. Some of these videos were produced inside the bathrooms or bedrooms of Taylor’s current and former Indianapolis residences, during the period between 2012 and 2015.
According to Senior Litigation Counsel Steven DeBrota, who is prosecuting this case for the government, Taylor faces decades in prison if convicted on all counts.
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 Attorney’s Office 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 “resource.”
A criminal complaint is only a charge. The defendant is presumed innocent until proven guilty in federal court.
Indiana Man Sentenced to 12 Years for Prisoner Transportation FraudRead the Press Release
TALLAHASSEE, FLORIDA – Walter John Cassidy, also known as “William James Cassidy,” 54, of Florence, Indiana, was sentenced today by United States District Judge Mark E. Walker to 12 years in prison for wire fraud in connection with a scheme to obtain money by operating a private prisoner transportation business under false pretenses. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between October 2010 and June 2014, Cassidy transported prisoners throughout the country as an employee and manager of United States Prisoner Extradition Service and Interstate Criminal Extraditions. In contracting with sheriffs’ offices to transport prisoners from one jurisdiction to another, including violent felons, Cassidy misrepresented the prisoners’ security and treatment and concealed material facts concerning his fitness to operate as a prisoner transport agent. Specifically, Cassidy concealed that he was on felony probation while transporting prisoners and that his conditions of probation prohibited him from associating with felons, from visiting jails, from carrying weapons, and from leaving the state of Kentucky. Additionally, during his transportation of female prisoners, Cassidy left the prisoners unrestrained, gave them drugs and alcohol, and had sex with them in his vehicle and hotel rooms. Cassidy pled guilty in September 2014.
Although Cassidy was indicted under the name of “William James Cassidy,” the identity he used in committing these offenses, Cassidy’s true name is actually Walter John Cassidy. Shortly before he was to be sentenced in this case, officials learned that Cassidy had been living under the false name of “William Cassidy” for more than 17 years. By adopting another identity, Cassidy was able to conceal his lengthy record of criminal convictions for burglary, theft, firearms, and other offenses. In addition to working as a private prisoner transport agent, Cassidy had also previously served as a constable in Gibson County, Tennessee, under the assumed identity of William Cassidy.
“Over the course of four years, the defendant defrauded sheriff’s offices who entrusted him with the security and transportation of prisoners throughout the nation, and he abused their trust by using female prisoners for his own sexual gratification,” said United States Attorney Marsh. “Today’s sentence makes clear that such abuses of power carry severe consequences.”
United States Attorney Marsh praised the work of the Federal Bureau of Investigation, the United States Department of Justice Office of the Inspector General, and the United States Marshals Fugitive Task Force, whose joint investigation led to the charges and sentence. The case was prosecuted by Criminal Chief Karen Rhew-Miller.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Indiana Man Sentenced to 12 Years for Prisoner Transportation FraudRead the Press Release
TALLAHASSEE, FLORIDA – Walter John Cassidy, also known as “William James Cassidy,” 54, of Florence, Indiana, was sentenced today by United States District Judge Mark E. Walker to 12 years in prison for wire fraud in connection with a scheme to obtain money by operating a private prisoner transportation business under false pretenses. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between October 2010 and June 2014, Cassidy transported prisoners throughout the country as an employee and manager of United States Prisoner Extradition Service and Interstate Criminal Extraditions. In contracting with sheriffs’ offices to transport prisoners from one jurisdiction to another, including violent felons, Cassidy misrepresented the prisoners’ security and treatment and concealed material facts concerning his fitness to operate as a prisoner transport agent. Specifically, Cassidy concealed that he was on felony probation while transporting prisoners and that his conditions of probation prohibited him from associating with felons, from visiting jails, from carrying weapons, and from leaving the state of Kentucky. Additionally, during his transportation of female prisoners, Cassidy left the prisoners unrestrained, gave them drugs and alcohol, and had sex with them in his vehicle and hotel rooms. Cassidy pled guilty in September 2014.
Although Cassidy was indicted under the name of “William James Cassidy,” the identity he used in committing these offenses, Cassidy’s true name is actually Walter John Cassidy. Shortly before he was to be sentenced in this case, officials learned that Cassidy had been living under the false name of “William Cassidy” for more than 17 years. By adopting another identity, Cassidy was able to conceal his lengthy record of criminal convictions for burglary, theft, firearms, and other offenses. In addition to working as a private prisoner transport agent, Cassidy had also previously served as a constable in Gibson County, Tennessee, under the assumed identity of William Cassidy.
“Over the course of four years, the defendant defrauded sheriff’s offices who entrusted him with the security and transportation of prisoners throughout the nation, and he abused their trust by using female prisoners for his own sexual gratification,” said United States Attorney Marsh. “Today’s sentence makes clear that such abuses of power carry severe consequences.”
United States Attorney Marsh praised the work of the Federal Bureau of Investigation, the United States Department of Justice Office of the Inspector General, and the United States Marshals Fugitive Task Force, whose joint investigation led to the charges and sentence. The case was prosecuted by Criminal Chief Karen Rhew-Miller.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Illinois Man Sentenced on Identity Theft and Credit Card Fraud ChargesRead the Press Release
St. Louis, MO – TYRELLE A. PHILLIPS, Herrin, IL, was sentenced to 39 months in prison and was ordered to pay restitution to the identified victims of the scheme. He was sentenced on multiple identity theft and credit card charges, resulting in excess of $62,000 of losses in the St. Louis metropolitan area.
According to court documents, on September 16, 2014, O’Fallon, Missouri, police officers were in a local Walgreens Store in order to obtain surveillance photos of individuals who had been purchasing prepaid gift cards with counterfeit credit cards. Coincidentally, Tyrelle A. Phillips, had traveled from Kentucky to the St. Louis area to use counterfeit credit cards to buy gift cards. While the officers were in the store, they observed Phillips attempting to purchase prepaid Visa gift cards in separate transactions using multiple credit cards. Due to their familiarity with the scheme and the fact that Phillips’ appearance matched that of an individual suspected of the crime, the officers stopped Phillips.
During a search of his vehicle, the officer found a laptop computer with a card writing machine and five fraudulently purchased gift cards valued at $500 each. Phillips explained that he used the laptop computer and a magnetic strip reader/writer device to produce the counterfeit cards. According to Phillips, he had been receiving text messages containing three to four stolen credit or debit card account numbers from an associate in California for more than six months. In particular, during a trip to the St. Louis metropolitan area in August, Phillips estimated making fraudulent purchases of approximately $10,000 in several local municipalities. His role was to produce counterfeit cards and use them to purchase gift cards in large denominations in exchange for 50% of the proceeds.
An inspection of his cellular telephone revealed multiple text messages received within the last two weeks containing a total of 96 account numbers. A review of his computer allowed the officers to track his travel to multiple cities in California, Oregon, Illinois, Wyoming, Utah, Nevada and Oregon, between July 30, 2014 and his arrest on September 16, 2014.
Phillips appeared Monday for sentencing before United States Senior District Judge E. Richard Weber, in St. Louis.
This case was investigated by the United States Postal Inspection Service, O’Fallon and Maryland Heights Police Departments and the St. Charles County Cyber Crime Task Force. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney's Office.
Helena Chemical Corporation to Pay $225,000 Fine for Environmental CrimeRead the Press Release
TULSA, Okla.— United States Attorney Danny C. Williams Sr. announced today a guilty plea by Helena Chemical Corporation for unlawfully disposing the restricted pesticide, Medal II AT, at its Welch, Oklahoma, facility in Craig County.
According to the plea agreement, for at least a six-month period beginning in May 2013, Helena Chemical Corporation disposed of unused Medal II AT by discharging the pesticide onto the ground and allowing it to run onto an adjacent property and into the Little Cabin Creek. Medal II AT contains the restricted use chemicals Altrazine and S-Metolachor which are two of the main active ingredients.
If exposed to Altrazine, a person may experience difficulty breathing, weakness, irritation of the eyes, and suffer from liver damage; and a person exposed to S-Metolachor may experience eye, skin and respiratory irritation, dizziness, and nausea.
Under the settlement, Helena Chemical will pay $150,000 in criminal fines and $75,000 toward performing community service to fund environmental projects, initiatives, emergency responses, and/or education dedicated to the preservation and restoration of the environment and waters.
The case was jointly investigated by the Environmental Protection Agency and the Oklahoma Department of Agriculture. Assistant United States Attorney Joel-lyn A. McCormick prosecuted the case.
Hampstead Man Pleads Guilty to Distribution and Possession of Child PorngraphyRead the Press Release
Baltimore, Maryland – Michael Eugene Aldridge, age 42, of Hampstead, Maryland, pleaded guilty today to distribution and possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Carroll County Sheriff James DeWees.
According to Aldridge’s plea agreement, he covertly took videos of minor females, including while they were undressed, to produce child pornography. Aldridge distributed those videos to others to encourage them to engage in the production of child pornography and exchanges the images and videos with Aldridge. On June 26, 2014, a search warrant was executed on his residence and Aldridge was interviewed by law enforcement. During the interview, Aldridge admitted that he viewed and distributed child pornography. A search of Aldridge’s email account recovered two images of child pornography. A forensic analysis of his cell phone recovered 15 images depicting minors engaged in sexually explicit conduct.
As part of his plea agreement, Aldridge 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).
Aldridge faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison, for distribution of child pornography; and a maximum of 10 years in prison for possession of child pornography, followed by up to lifetime of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for July 28, 2015, at 9:00 a.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 HSI Baltimore, Maryland State Police, and Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Fresno Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
FRESNO, Calif. — Daniel James Owen, 28, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to 10 years in prison for possessing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 23, 2012, Owen possessed eight separate images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Owen pleaded guilty to this charge on February 27, 2015. In light of a prior conviction, Owen faced a minimum statutory sentence of 10 years in prison.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Former Union Official Sentenced to Prison for Embezzling Money from UnionRead the Press Release
ALBUQUERQUE – Leonard Bridge, 45, of Albuquerque, N.M., was sentenced this morning to 12 months in federal prison followed by three years of supervised release for his conviction for embezzling assets from a labor organization. Leonard also was ordered to pay $140,877.56 in restitution to the International Union of Elevator Constructors, Local 131 (Union).
Bridge was indicted in Feb. 2014, and charged with 20 counts of embezzlement of assets from a labor organization. According to the indictment, Bridge embezzled money belonging to the Union on 20 separate occasions between April 2009 and Aug. 2011. Bridge perpetrated his embezzlement scheme by writing checks on the Union’s bank account, making cash withdrawals with the Union’s debit card, and making cash withdrawals from the Union’s bank account. During the period charged in the indictment, Bridge was employed as the Union’s business manager.
Bridge entered a guilty plea to Count 1 of the indictment on Sept. 2, 2014. In his plea agreement, Bridge admitted while he was the Union’s business manager, he was responsible for the day-to-day operations of the Union and that his financial responsibilities included preparing and signing checks from the Union’s bank accounts, making disbursements, maintaining financial records and reporting on the Union’s finances to the Union’s board and membership.
Bridge admitted that while serving as the Union’s business manager, he embezzled Union funds for his own use. Bridge accomplished the embezzlement in a variety of ways, including paying himself excess salary, writing unauthorized checks to himself, making unauthorized purchases on the Union’s debit card, and making unauthorized cash withdrawals from the Union’s bank account. Bridge acknowledged that when he took office, the Union had approximately $106,000.00 in its general account, and when he resigned, the general account had $2,400.00.
This case was investigated by the Office of Labor-Management Standards of the U.S. Department of Labor and was prosecuted by Assistant U.S. Attorneys C. Paige Messec and Samuel A. Hurtado.
Former Fresno Police Department Detective and Fresno Marijuana Trafficker Sentenced to Federal Prison for Bribery ConspiracyRead the Press Release
FRESNO, Calif. — Derik Carson Kumagai, 41, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to two years in prison for conspiring to commit bribery, United States Attorney Benjamin B. Wagner announced. Kumagai was ordered to self-surrender on June 12 at 2:00 p.m. to begin serving his sentence.
In addition, co-defendant Saykham Somphoune, aka Oat, 41, also of Fresno, was sentenced to time served, which was 13 months in jail for his role in the bribery conspiracy. Both defendants were ordered to pay $13,962 in restitution.
According to court documents, beginning in April 2012, federal law enforcement agents were investigating a group of individuals that included Somphoune and one of his associates, for suspected cultivation and distribution of marijuana. In October and November 2013, Somphoune had a series of meetings with his associate, some of which were attended by Kumagai. At the time, Kumagai was a Fresno Police Department detective in the Vice and Intelligence Unit.
During these meetings, the associate was told that he was under federal investigation, but that in return for a bribe payment, Kumagai could close the investigation and arrange to have the associate designated as a confidential informant for the Fresno Police Department. On November 6, 2013, the associate paid Kumagai approximately $20,000 cash. A few hours later, the associate signed documents for the purported purpose of becoming a confidential informant for the Fresno Police Department. The defendants were arrested in March of 2014, and the associate never actually served as a confidential informant for the Fresno Police Department.
“Former detective Kumagai violated the trust given to him as a law enforcement officer,” said U.S. Attorney Wagner. “He will now spend time in federal prison for his corrupt conduct. It is an important mission of the U.S. Attorney’s Office to prosecute law enforcement officers and other public officials who abuse their official authority for their own personal gain. We will continue to work closely with our law enforcement partners to investigate and prosecute these cases.”
“Such criminal activity tarnishes the reputations of the men and women in law enforcement who are committed to upholding laws that keep citizens safe,” said Assistant Special Agent in Charge John Gliatta of the Sacramento field office of the Federal Bureau of Investigation. “We and our law enforcement partners are committed to the identification and investigation of any such activity to ensure that those who corruptly abuse public trust are held accountable for their criminal activity.”
“Former police officer Derik Kumagai participated in an elaborate bribery scheme in which he utilized his position as a law enforcement officer for personal gain. This type of behavior from a public servant is not only illegal, but also appalling,” stated DEA Acting Special Agent in Charge Bruce C. Balzano. “DEA will vigorously work to hold those accountable who abuse their position and violate the public trust.”
“The defendant’s conduct was reprehensible and a dishonor to those who took an oath to uphold the law and protect citizens,” said IRS Criminal Investigation Special Agent in Charge José M. Martinez. “Mr. Kumagai used his position for personal gain, betraying the community he swore to protect. IRS-CI will continue to investigate public corruption to ensure everyone plays by the same rules—regardless of job or position.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney prosecuted the case.This case was the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Former Florida Resident Sentenced for Orchestrating an International Stock Fraud SchemeRead the Press Release
A former Florida resident was sentenced to 60 months in prison, to be followed by three years of supervised release, a special assessment in the amount of $3,000, and restitution in the amount of $476,195.51 by U.S. District Court Judge Donald M. Middlebrooks, for orchestrating an international stock fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, George L. Piro, Special Agent in Charge, Federal Bureau Investigation (FBI), Miami Field Office, and Alysa Erichs, Special Agent in Charge U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Amy Brook Wilkerson, 22, formerly from Orlando, Florida, was charged by information with twenty-nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343 and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Wilkerson pled guilty to the 30 count information on January 12, 2015.
According to court documents, Wilkerson, while living in Afyonkarahisar, Turkey and later in Tbilisi, Georgia, purchased a list containing contact information for stock market investors. Wilkerson then referred to this list in order to recruit potential clients. Using an alias and falsely claiming to be a high ranking officer and stock broker for a well-known international bank, Wilkerson contacted a number of individuals who were living in the United States. Wilkerson represented to the potential clients that she had access to various initial purchase offerings (IPOS) that would be very profitable. Based on Wilkerson’s fraudulent representations, twenty-three individuals wired a total of $805,996 to various bank accounts controlled by Wilkerson. Following her arrest, the defendant admitted that she in fact never had access to any IPOS, that her entire operation was fraudulent, that she never purchased any stocks as represented to the victims, and that she used the monies wired by the victims to cover her personal expenses.
Mr. Ferrer commended the investigative efforts of the USPIS, FBI, ICE-HSI and the United States Department of Justice Office of International Affairs (OIA). The case was prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.