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Wednesday 18 March 2015
Attorney Admits Filing False Tax ReturnsRead the Press Release
Follow @USAO_CTDeirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY G. GRIFFIN, 54, of Ridgefield, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to one count of filing a false tax return.
According to court documents and statements made in court, GRIFFIN practiced law in Bronxville, New York, and his clients paid him for his legal services. In 2006, the Internal Revenue Service sent letters to GRIFFIN about his having not filed income tax returns for 2002, 2003, and 2004 tax years. In response to the IRS inquiry, GRIFFIN prepared and submitted fraudulent individual income tax returns for the 2003 and 2004 tax years. The 2003 return reported business income of $77,713, gross receipts from the law practice of $225,825, a net profit of $32,200, and a total tax of $10,981. The 2004 return reported business income of $67,983, gross receipts from the law practice of $234,894, a net profit of $39,767, and a total tax of $9,606. A subsequent criminal investigation determined that GRIFFIN did not report on these two tax returns approximately $498,934 in additional gross receipts from his law practice, resulting in additional tax due of $136,844.
GRIFFIN is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on December 23, 2014, at which time he faces a maximum term of imprisonment of three years and a fine of up to $250,000. GRIFFIN also has agreed to make restitution to the U.S. Department of Treasury in the total amount of $153,807 – which includes $136,844 for the 2003 and 2004 tax years and $16,963 for the 2005 and 2006 tax years – plus applicable penalties and interest.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Arrests Made and Charges Added in Federal Investigation of Interstate Sex Trafficking RingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg indicted six men – five residents of Chambersburg and one from Harrisburg – as part of an investigation of an alleged sex trafficking ring operating in six states and the District of Columbia.
The indictment, filed on March 11 and unsealed this week, charges Albert E. “Pipo” Martinez, age 34, of Chambersburg, Anthony “Tony” D’Ambrosio, age 34, of Chambersburg, Antonio ”Tony” Delgado, age 18, of Chambersburg, Armando Delgado, age 20, of Chambersburg and Keanu Martinez, age 19, of Chambersburg, with sex trafficking of minors, transportation to engage in prostitution, distribution of controlled substances, and conspiracy. Brandon Hill, age 28, of Harrisburg, is charged with conspiracy and drug distribution.
According to United States Attorney Peter Smith, Martinez and his co-conspirators allegedly recruited and transported females between the ages of 13 and 18 years old to engage in commercial sex acts in Pennsylvania, Maryland, Virginia, West Virginia, Florida, Rhode Island and the District of Columbia. Martinez and the others allegedly rented motel rooms and posted “escort” advertisements and photographs on a website from July 2012 through January 2015. The conspirators allegedly took most of the money made during the course of the prostitution business, and distributed drugs to the women, including oxycodone, cocaine hydrochloride and heroin.Martinez has been incarcerated on an initial indictment since January 15, 2015 and is scheduled for an arraignment on the March 11 indictment on March 26, 2015.
D’Ambrosio, the Delgados, Martinez and Hill were arrested last week by the Federal Bureau of Investigation, with the assistance of the Chambersburg Police Department, the Franklin County Drug Task Force and the Harrisburg Bureau of Police.
The defendants arrested last week appeared before Magistrate Judge Susan E. Schwab on March 12 in Harrisburg and ordered temporarily detained. Yesterday, after the detention hearings, Magistrate Judge Schwab ordered the five co-defendants detained pending trial, which is scheduled for May 11, 2015 before the Honorable William W. Caldwell.
If convicted, each defendant faces a maximum sentence of life imprisonment, a mandatory minimum sentence of 10 years’ imprisonment on the offenses involving a minor, as well as a $250,000 fine. Each defendant faces up to 20 years’ incarceration and a $1,000,000 fine if convicted of the drug trafficking offenses.
This continuing investigation is being conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Meredith A. Taylor. Anyone with information about this case is asked to contact the Federal Bureau of Investigation at 717-232-8686.
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."
Armed Career Criminal Sentenced to 30 Years in Prison for String of RobberiesRead the Press Release
Federal sentence results from “Project Recoil”
LOUISVILLE, Ky. – A career criminal from Georgia was sentenced today to 30 years in prison, followed by five years of supervised release, by Senior District Judge Thomas B. Russell, for multiple robberies, including brandishing a firearm announced Acting United States Attorney John E. Kuhn, Jr. There is no parole in the federal system.
The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Xavier Demetrius Porter, 40, pleaded guilty in U.S. District Court on December 5, 2014, to nine counts of obstructing interstate commerce through robbery, one count of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. In 1996, Porter was convicted of three counts of armed robbery, in case number 96-R-398 in Dougherty County (Georgia) Superior Court. During those robberies, he used a sawed-off shotgun.
“Through the cooperation of federal, state and local law enforcement, a violent and dangerous repeat offender will spend the next 30 years behind bars. Project Recoil’s commitment to a team approach is our most effective weapon against crime. Together, we are getting results and making our community a safer place, “stated Acting U.S. Attorney John E. Kuhn, Jr.
“Today’s sentence sends a very strong message that federal, state and local law enforcement agencies are working together to make Louisville a safer community. Anyone contemplating a gun-related crime should realize the possible consequences,” stated Louisville Metro Police Chief Steve Conrad.
“Today, an armed and violent criminal was removed from the Louisville community for a long time. Strong partnerships among federal, state and local law enforcement and with the public we serve are making a positive difference. Gun violence will not be tolerated in Louisville,” said ATF Special Agent in Charge Stuart Lowrey.
Porter admitted to robbing Spinelli’s Pizza located at 2905 Goose Creek Road on March 5, 2013, the Subway located at 3503 South Hurstbourne Parkway on March 7, 2013, the Subway located at 8056 New LaGrange Road on March 17, 2013, Circle K located at 4600 Wattbourne Lane on April 15, 2013, the White Castle located at 3705 Bardstown Road on April 16, 2013, the Thornton’s located at 3909 Taylorsville Road on April 17, 2013, the Subway located on Bishop Lane on April 17, 2013, Cigarette Outlet located on Six Mile Lane on April 18, 2013, and the Adam and Eve store on South Hurstbourne Parkway on April 18, 2013. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce. During eight of the robberies, Porter brandished a firearm. During the first two robberies, he used a small black handgun. During the last five robberies, he used a pistol-grip 12 gauge shotgun. At the time of his arrest, Porter was clutching the money he stole from Adam & Eve in his hand.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
Alleged High Ranking Member of Los Zetas Cartel ArrestedRead the Press Release
LAREDO, Texas – Jose Manuel Saldivar-Farias aka “Z-31” or “El Borrado” has been charged with conspiracy to possess marijuana allegations after illegally entering the U.S., announced U.S. Attorney Kenneth Magidson.
Saldivar-Farias, 27, is alleged to be a regional commander for the Los Zetas transnational criminal organization. Initially arrested on immigration charges related to his illegal presence in the U.S., a criminal complaint unsealed today charges him and Osiel Hernandez-Martinez, 26, with conspiracy to possess more than 1,000 kilograms of marijuana. Salidvar-Farias is also charged with giving false statements to government agents.
They appeared in federal court in Laredo this morning and are set for a detention and probable cause hearing before U.S. Magistrate Judge Guillermo R. Garcia on Friday, March 20, 2015, at 10:00 a.m. in Laredo.
The criminal complaint alleges that on the night of March 12, 2015, Texas Department of Public Safety (DPS) Quick Reactionary Force (QRF), in conjunction with the Texas Air National Guard, were conducting fly-over operations over Falcon Lake. During that time, they observed a boat traveling northward into the U.S. from Mexico at a high rate of speed. Suspecting the individuals were undocumented foreign nationals attempting to enter the U.S. illegally, DPS-QRF immediately apprehended the individuals aboard the boat, which included Saldivar-Farias and Hernandez-Martinez. Upon arrest, the criminal complaint alleges Saldivar-Farias lied to agents about his true identity.
According to the criminal complaint, Saldivar-Farias is the regional commander of the northern region of Mexico to include the states of Coahuilla, Taumalipas and Nuevo Leon, Mexico, as well as Zapata, Texas. As such, he is allegedly in charge of all narcotics moving through the area. The criminal complaint alleges several multi-ton quantities of marijuana have been crossed into U.S. over this area every week.
If convicted on the drug charges, Saldivar-Farias and Hernandez-Martinez each face a minimum of 10 years and up to life in federal prison and a possible maximum fine of $10 million. Saldivar-Farias also faces up to five years and a $250,000 fine if convicted of making false statements.
The arrest was a collaboration effort between FBI, Drug Enforcement Administration and Homeland Security Investigations which are all investigative partners within the South Texas corridor to include Customs and Border Protection components Office of Border Patrol, Office of Field Operations and Office of Air and Marine. DPS also provided invaluable assistance in the investigation.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz are prosecuting the case.
Akron man sentenced to nearly four years in prison for firearms convictionRead the Press Release
An Akron man was sentenced to nearly four years in prison fo illegally possessing a firearm, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Joe L. Fletcher, age 27, was sentenced to 46 months in prison by U.S. District Judge Christopher Boyko. Fletcher previously pleaded guilty to having a Springfield Armory .45-caliber semi-automatic pistol on Feb. 7, 2014, despite a previous conviction for cocaine trafficking.
"This man had no business possessing a firearm because of his criminal record," Dettelbach said.
"Joe Fletcher is considered to be one of Akron's most dangerous individuals," Akron Police Chief James Nice said. "As a result, the APD collaborated with the U.S. Attorney's Office to bring federal charges against him. Our city is safer today because of this federal conviction."
This case was prosecuted by Assistant U.S. Attorney Edward Feran following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department.
10th Street Gang Member Sentenced on Racketeering ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Nourooz Ali, 31, of Buffalo, who was convicted of RICO conspiracy, was sentenced to 132 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, Ali, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
The defendant is among 44 10th Street Gang members and associates charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Tuesday 17 March 2015
Woman Pleads Guilty to Preparing False Income Tax ReturnsRead the Press Release
HOUSTON – Nicole Dette Perkins has entered a guilty plea to one count of knowingly presenting a material false, fictitious or fraudulent claim against the United States in the nature of a false U.S. Individual Income Tax Return, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (IRS-CI).
The plea agreement filed in the public record of the case indicates that Perkins prepared income tax returns for others. As part of those returns, she attached false and fabricated W-2 forms purporting to show wages earned and federal taxes withheld when, in fact, the taxpayers did not work for the alleged employers nor had the alleged withholdings. As part of her plea, Perkins admitted she knowingly attached a fabricated W-2 to a tax return claiming wages and withholdings that resulted in a false claim for an income tax refund and a tax loss to the United States of $7,889.
Perkins further agreed in the plea agreement that for purposes of sentencing, her conduct resulted in an intended tax loss to the United States of $346,044. The intended tax loss included not only the intended tax loss on tax returns Perkins prepared for others, but also the intended tax loss of more than $20,000 on three of Perkins’s own income tax returns. Perkins has agreed to pay restitution to the United States of $66,332.
U.S. District Judge Lee Rosenthal, who accepted the plea today, has set sentencing for June 25, 2015, at which time Perkins faces up to five years in federal prison and a possible $250,000 fine.
She was permitted to remain on bond pending that hearing.
This case was the result of an IRS-CI investigation and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Williamsburg Man Pleaded Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Fraud resulted in over $800,000 in unpaid fees to select resorts
NEWPORT NEWS, Va. – Keith D. Kosco, 56, of Williamsburg, Va., pleaded guilty today to Conspiracy to Commit Mail and Wire Fraud, Aggravated Identity Theft and Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office made the announcement after the plea was accepted by U.S. District Judge Robert G. Doumar.Kosco was indicted by a federal grand jury on November 17, 2014. Kosco faces a maximum penalty of twenty years on the conspiracy count, ten years for engaging in monetary transactions with proceeds from unlawful activity, and a mandatory two year sentence for aggravated identity theft when he is sentenced on July 13, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with his plea agreement Keith Kosco, admitted to being the owner and operated of a number of entities involved in travel, tourism and timeshare businesses including Resort Realty, Inc., Resort Solutions, Inc., and Exotic Equity Transfers, LLC (“EET”). A timeshare unit, generally a fully furnished resort accommodation, is a deeded or non-deeded interest in real estate divided into intervals, most commonly by week. Since at least 2007, EET conducted timeshare transfers in exchange for a fee charged to the original owner.Keith Kosco and his employees represented that the timeshare unit transfers conducted by EET would be legitimate and result in clean title passing to a new owner with no further obligations of timeshare ownership (including maintenance fees) on the original owner once the transfer was complete. Transfer paperwork was handled by EET in coordination with Professional Closing Company which served as a third party closing entity, and was operated by co-defendant Julie Duffield. From at least 2009 – 2013, Kosco, Duffield and their employees conducted fraudulent transfers of over 1,000 timeshare units into the names of stolen identities, including Kosco’s incarcerated daughter, who were unaware that they were receiving these properties, and straw buyers (about ten total), who they paid $35-$50 for each transferred unit. The defendants collected fees for conducting the transfers from the original owners. None of the stolen identities / straw buyers paid the required maintenance fees or taxes on the timeshare units, resulting in over $800,000 in losses to select resorts for the unpaid fees. Kosco, Duffield and their employees engaged in various fraudulent acts in support of the scheme, including false reps and promises to resorts, propping up stolen identities with email accounts, bank accounts and tax returns, falsely notarizing signatures and preparing fraudulent deed paperwork. The transfers also had devastating impacts on the credit of the stolen identities/straw buyers. Julie Duffield pled guilty on January 12, 2015, to conspiracy to commit mail and wire fraud. Her sentencing is scheduled for May 5, 2015. In a related case, Brendan Hawkins pled guilty on December 22, 2014, to conspiracy to commit mail fraud and his sentencing is scheduled for April 20, 2015.
This case was investigated by the FBI and the Internal Revenue Service. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin C. Gratton are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr66.Washington, D.C. man sentenced to two years for failure to update sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Celot Jay Carr, Jr., 38, of Washington, D.C., was sentenced today to 27 months in prison for failure to update his sex offender registration after relocating to West Virginia, United States Attorney William J. Ihlenfeld, II, announced today.In December 2006, Carr was convicted of “Second Degree Child Abuse” in the District of Columbia Superior Court for engaging in sexual activity with a minor. As a result, Carr is required to register as a sex offender. Upon his release, Carr registered with the District of Columbia Sex Offender Registry. Carr failed to update his sex offender registration when he subsequently relocated from Washington D.C. to Westover, West Virginia.
Carr pled guilty in November 2014 to one count of “Failure to Update Sex Offender Registration” following a U.S Marshals Service and West Virginia State Police investigation.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Virginia Beach Man Sentenced for Transporting Women for ProstitutionRead the Press Release
NORFOLK, Va. – Diamond Latroy Hawkins, Jr., 39, of Virginia Beach, was sentenced today to seven years in prison, followed by twenty years of supervised release, for transporting women for prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office; and James A. (Jim) Cervera, Chief of Police, Virginia Beach Police Department, made the announcement after sentencing by United States District Judge Raymond A Jackson.
Hawkins pled guilty on October 16, 2014. According to court documents, between August of 2009 and April of 2014, Hawkins was a pimp who prostituted multiple women in Virginia and Florida, as well as other locations. Hawkins would recruit these women to work for him and, once they agreed, he took all the money they made and kept control over their movements through physical violence, threats of harm to them and their families, and protracted sexual and verbal abuse. In March 2013, Hawkins forced a group of his prostitutes to move to Florida with him in the hopes of getting better rates for their services.
This case was investigated by the FBI and the Virginia Beach Police Department. Assistant United States Attorneys Elizabeth M. Yusi and V. Kathleen Dougherty prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr98United States Settles False Claims Act Allegations Against Jacksonville-Based Dermatology Practice for $787,814Read the Press Release
Jacksonville, Florida - U.S. Attorney A. Lee Bentley, III announces that the United States has settled allegations that a Jacksonville-based dermatology practice knowingly billed the government for services that were cosmetic in nature and not medically necessary, as well as “up-coded” certain bills to receive higher than allowed reimbursement. The allegations resolved included liability under the False Claims Act (FCA).
The government announced today that it has reached a settlement with the defendant, Coastal Dermatology, and the physician who owned the practice – Dr. Sanjiva Goyal. In reaching this settlement, the parties resolved allegations that from January 1, 2009, until April 2014, Dr. Goyal operated a dermatology practice that routinely had a practice of billing for cosmetic dermatological procedures, billing for services when all the Medicare and TRICARE requirements were not established, and billing for services at a higher rate of reimbursement than appropriate. The government agreed to accept $787,814 to resolve these allegations.
This settlement involved false claims submitted to both the Medicare and TRICARE programs. This case was developed by proactively mining healthcare reimbursement data. In mining through this data, Coastal Dermatology was identified as a top biller of procedures related to skin lesion removal procedures and removal of inflamed seborrheic keratoses. Among the 3,814 TRICARE-participating dermatologists in the South Region, Coastal Dermatology was number one in terms of billings for lesion removals.
"The United States Attorney's Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud," said U.S. Attorney Bentley. "By bringing FCA cases such as this, we hope to recover funds obtained through the fraud and deter others from attempting similar schemes."
"Patients unable to receive necessary medical care suffer the cost of Medicare fraud when those funds are purposely stolen and diverted to pay for uncovered voluntary procedures," stated Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General. "We will continue to work with our law enforcement partners to protect the integrity of entitlement programs like Medicare."
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Department of Justice and the Department of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS' aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees."
This case was investigated by the Defense Criminal Investigative Service (DCIS), Health and Human Services Office of Inspector General (HHS/OIG), HHS Office of Counsel to Inspector General (HHS/OCIG), the Defense Health Agency Program Integrity Office, and Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Air Force Veteran Charged with Attempting to Provide Material Support to ISILRead the Press Release
Yesterday, a federal grand jury in Brooklyn returned a two-count indictment charging Tairod Nathan Webster Pugh, an American citizen and veteran of the United States Air Force, with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization, and obstruction and attempted obstruction of justice. The defendant will be arraigned on the indictment tomorrow at 11 a.m. before Judge Nicholas G. Garaufis at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and William J. Bratton, Commissioner, New York City Police Department.
“Born and raised in the United States, Pugh allegedly turned his back on his country and attempted to travel to Syria in order to join a terrorist organization,” stated U.S. Attorney Lynch. “We will continue to vigorously prosecute extremists, whether based here or abroad, to stop them before they are able to threaten the United States and its allies.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a large number of federal, state, and local agencies from the region. Ms. Lynch also thanked the U.S. Department of State, U.S. Customs and Border Protection, the United States Attorney’s Office for the District of New Jersey, the Asbury Park, New Jersey Police Department, and the Neptune, New Jersey Police Department for their assistance.
“Pugh, an American citizen and former member of our military, allegedly abandoned his allegiance to the United States and sought to provide material support to ISIL,” said Assistant Attorney General Carlin. “Identifying and bringing to justice individuals who provide or attempt to provide material support to terrorists is a key priority of the National Security Division.”
“As alleged, Pugh, an American citizen, was willing to travel overseas and fight jihad alongside terrorists seeking to do us harm. United States citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions. We will continue to work with our partners, both here and abroad, to prevent acts of terrorism. This investigation demonstrates the importance of law enforcement coordination and collaboration here and around the world,” stated FBI Assistant Director-in-Charge Rodriguez.”
“We thank the members of the NYPD Joint Terrorism Task Force and our Federal law enforcement partners for their work in this case and for their tireless efforts to identify threats of terrorism here and abroad. It is this type of collaboration that results in swift investigative work to stop individuals such as this from making any further contribution to terrorist organizations such as ISIL,” said Police Commissioner Bratton.
As alleged in the complaint, indictment, and other court filings, the defendant served in the Air Force as an avionics instrument system specialist and received training in the installation and maintenance of aircraft engine, navigation, and weapons systems. After leaving the Air Force, the defendant worked for a number of companies in the United States and Middle East as an avionics specialist and airplane mechanic. The defendant lived abroad for over a year before his arrest in this case.
Earlier this year, weeks after being fired from his last job as an airplane mechanic based in the Middle East, the defendant attempted to join ISIL. On January 10, 2015, the defendant traveled from Egypt to Turkey in an effort to cross the border into Syria to join ISIL and fight violent jihad. Turkish authorities denied the defendant entry, however, and sent him on a return flight to Egypt. Upon his arrival in Egypt, the defendant was carrying multiple electronic devices, including four USB thumb drives that had been stripped of their plastic casings and an iPod that had been wiped clean of data. The defendant also had a cellular telephone that contained, among other things, a photograph of a machinegun. The defendant was soon thereafter deported to the United States.
On January 14, 2015, JTTF agents obtained a search warrant for the defendant’s electronic devices, including his laptop computer. Subsequent exploitation of the laptop revealed, among other things, the following:
- recent Internet searches for “borders controlled by Islamic state”,
- recent Internet searches for “who controls kobani,” “kobani border crossing,” and “jarablus border crossing,” all references to Syrian cities under ISIL’s control near the Turkish border,
- a chart of crossing points between Turkey and Syria indicating the areas on the Syrian side of the border controlled by ISIL and other groups, and
- Internet searches for “Flames of War,” an ISIL propaganda video, as well as downloaded videos, including one showing ISIL members executing prisoners.
The defendant was arrested pursuant to a federal complaint on January 16, 2015, in Asbury Park, New Jersey, and he has been in custody ever since. After the defendant’s arrest, JTTF agents seized and later obtained warrants to search two backpacks that the defendant had when he was overseas. Agents recovered from the backpacks, among other things: two compasses, a solar-powered flashlight, a solar-powered power source, shards of broken USB thumb drives, a fatigue jacket, and camping clothes.
If convicted, the defendant faces a maximum sentence of 35 years in prison. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Samuel P. Nitze and Tiana A. Demas, with assistance provided by Trial Attorneys Larry Schneider and Andrew Sigler of the Counterterrorism Section of the Department of Justice.
The Defendant:
TAIROD NATHAN WEBSTER PUGH
Age: 47
Neptune, New Jersey
E.D.N.Y. Docket Nos. 15-MJ-044 and 15-CR-116 (NGG)
US Air Force Veteran Charged with Attempting to Provide Material Support to ISILRead the Press Release
Defendant, a Former Avionics Specialist, Travelled from Egypt to Turkey in an Attempt to Cross the Border to Syria to Join ISIL
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department announced that yesterday, a federal grand jury in New York City returned a two-count indictment charging Tairod Nathan Webster Pugh, an American citizen and veteran of the U.S. Air Force, with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization, and obstruction and attempted obstruction of justice. The defendant will be arraigned on the indictment tomorrow, March 18, at 11 a.m. before U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York.
“Born and raised in the United States, Pugh allegedly turned his back on his country and attempted to travel to Syria in order to join a terrorist organization,” said U.S. Attorney Lynch. “We will continue to vigorously prosecute extremists, whether based here or abroad, to stop them before they are able to threaten the United States and its allies.” U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a large number of federal, state, and local agencies from the region. U.S. Lynch also thanked U.S. Customs and Border Protection, the U.S. Attorney’s Office of the District of New Jersey, the Asbury Park, New Jersey Police Department and the Neptune, New Jersey, Police Department for their assistance.
“Pugh, an American citizen and former member of our military, allegedly abandoned his allegiance to the United States and sought to provide material support to ISIL,” said Assistant Attorney General Carlin. “Identifying and bringing to justice individuals who provide or attempt to provide material support to terrorists is a key priority of the National Security Division.”
“As alleged, Pugh, an American citizen, was willing to travel overseas and fight jihad alongside terrorists seeking to do us harm,” said Assistant Director in Charge Rodriguez. “U.S. citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions. We will continue to work with our partners, both here and abroad, to prevent acts of terrorism. This investigation demonstrates the importance of law enforcement coordination and collaboration here and around the world.”
“We thank the members of the NYPD Joint Terrorism Task Force and our Federal law enforcement partners for their work in this case and for their tireless efforts to identify threats of terrorism here and abroad,” said Commissioner Bratton. “It is this type of collaboration that results in swift investigative work to stop individuals such as this from making any further contribution to terrorist organizations such as ISIL.”
As alleged in the complaint, indictment and other court filings, the defendant served in the Air Force as an avionics instrument system specialist and received training in the installation and maintenance of aircraft engine, navigation and weapons systems. After leaving the Air Force, the defendant worked for a number of companies in the United States and Middle East as an avionics specialist and airplane mechanic. The defendant lived abroad for over a year before his arrest in this case.
Earlier this year, weeks after being fired from his last job as an airplane mechanic based in the Middle East, the defendant attempted to join ISIL. On Jan. 10, 2015, the defendant traveled from Egypt to Turkey in an effort to cross the border into Syria to join ISIL and fight violent jihad. Turkish authorities denied the defendant entry, however, and sent him on a return flight to Egypt. Upon his arrival in Egypt, the defendant was carrying multiple electronic devices, including four USB thumb drives that had been stripped of their plastic casings and an iPod that had been wiped clean of data. The defendant also had a cellular telephone that contained, among other things, a photograph of a machinegun. The defendant was soon thereafter deported to the United States.
On Jan. 14, 2015, JTTF agents obtained a search warrant for the defendant’s electronic devices, including his laptop computer. Subsequent exploitation of the laptop revealed, among other things, the following:
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recent internet searches for “borders controlled by Islamic state”,
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recent internet searches for “who controls kobani,” “kobani border crossing,” and “jarablus border crossing,” all references to Syrian cities under ISIL’s control near the Turkish border,
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a chart of crossing points between Turkey and Syria indicating the areas on the Syrian side of the border controlled by ISIL and other groups, and
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internet searches for “Flames of War,” an ISIL propaganda video, as well as downloaded videos, including one showing ISIL members executing prisoners.
The defendant was arrested pursuant to a federal complaint on Jan. 16, 2015, in Asbury Park, New Jersey, and he has been in custody ever since. After the defendant’s arrest, JTTF agents seized and later obtained warrants to search two backpacks that the defendant had when he was overseas. Agents recovered from the backpacks, among other things: two compasses, a solar-powered flashlight, a solar-powered power source, shards of broken USB thumb drives, a fatigue jacket and camping clothes.
If convicted, the defendant faces a maximum sentence of 35 years in prison. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Samuel P. Nitze and Tiana A. Demas, with assistance provided by Trial Attorneys Larry Schneider and Andrew Sigler of the National Security Division.
Pugh Indictment
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U.S. Attorney Announces Project Safe Neighborhoods-Funded Initiative to Combat Gun ViolenceRead the Press Release
Local Prosecutors in Four Counties to be Deputized as Special Asst. U.S. Attorneys to Identify State Firearms Cases that can be Adopted for Federal Prosecution
PITTSBURGH – U.S. Attorney David J. Hickton today announced a new initiative whereby several county prosecutors will be designated as Special Assistant United States Attorneys (SAUSAs) for the purpose of evaluating local criminal cases involving the use of firearms and referring appropriate cases for federal prosecution. The salaries of the assistant district attorneys from the four counties - Erie, Washington, Lawrence and Cambria - will be subsidized by Project Safe Neighborhoods grant funds, awarded to Western Pennsylvania in previous years but not yet expended.
“In 2013 and 2014, much of our PSN enforcement efforts focused on illegal activity along our interstates and major thoroughfares, key routes used by dealers to move drugs and guns,” stated U.S. Attorney Hickton. “Cross-designating local prosecutors is an extension of those efforts and will prove an effective means for determining whether or not federal prosecution of an armed defendant would further the aim of making our communities safer. This initiative also adds another dimension of cooperation between our office and the county prosecutors’ offices.”
“ATF Special Agents will team up with our designated prosecutors to initiate federal investigations that identify and target gun carrying criminals and habitual violators, who are a menace to our communities,” said ATF Special Agent in Charge Sam Rabadi. “ATF’s core mission is fighting violent crime and we look forward to working closely with these dedicated prosecutors to reduce gun violence and increase public safety in our neighborhoods throughout western Pennsylvania.”
According to U.S. Attorney Hickton, the Assistant County District Attorneys will serve a six-month term as a SAUSA to handle intake and federal prosecution of PSN cases originating in their respective counties. The SAUSAs would have access to their District Attorney’s database of criminal filings, review cases where serious firearms-related charges have been involved, and quickly retrieve and review investigative reports relating to these cases. The SAUSAs will pay particular attention to chronic offenders, designated as ‘Armed Career Criminals’ in the Federal Sentencing Guidelines, large-scale drug dealers and gang members. Working with the U.S. Attorney’s Office Violent Crime Chief, the SAUSAs will select the more serious and/or complex cases wherein there is a federal jurisdiction and the likelihood of greater federal sentence. Once a case has been selected for federal prosecution, the arrangements would be made to transfer the defendant to federal custody. Also, the SAUSAs will work with local police departments to provide education on federal firearms laws.
The $44,000 in funding for this project is provided by Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The United States Department of Justice has committed millions of dollars to this effort. This funding is being used nationwide to hire new federal, state and local prosecutors, support investigators, provide training, distribute gun safety lock kits, deter juvenile gun crime, and develop and promote community outreach efforts.
In Western Pennsylvania, the Project Safe Neighborhoods Task Force has developed a strategic plan to strengthen partnerships between all levels of law enforcement agencies and community organizations, to increase awareness of the problem and to develop solutions for achieving the goal of creating safer communities by reducing gun crime.
The U.S. Attorney’s Office PSN strategy continues to implement Attorney General Eric Holder’s three-legged stool approach to protecting the public welfare. This approach involves Enforcement, Prevention/Community Engagement and Prisoner Reentry. Beginning in 2011, the U.S. Attorney through PSN began to forge a community impact prosecution strategy intended to have a demonstrable and meaningful impact on community crime and improve public safety. This strategy employs federal, state and local cooperation among law enforcement to target illegal firearms, gang activity and drug trafficking, including the unlawful sale of prescription drugs.
Two More St. Robert Residents Plead Guilty to $3 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two more St. Robert, Mo., residents pleaded guilty in federal court today to their roles in a Nigerian fraud scheme in which thousands of victims across the country were tricked into cashing up to $3 million in counterfeit money orders and cashier’s checks.
Terry L. Shupe, 38, and Nancy Madelen Peebles, 74, both of St. Robert, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to their roles in a conspiracy to commit wire fraud. The conspiracy involved counterfeit postal money orders, counterfeit cashier’s checks and numerous wires to unindicted co-conspirators in the country of Nigeria.
Co-defendants Lisa Kaye Barwick-Majeski, 54, who is Peebles’s daughter, and Cheryl Barber, 41, who lived with Shupe, both of St. Robert, have also pleaded guilty to participating in the conspiracy.
Conspirators dispatched counterfeit postal money orders and bogus cashier’s checks to thousands of victims throughout the United States. These false money orders and cashier’s checks were deposited in victims’ bank accounts after the victims were duped into believing they were paid participants as part of a “secret shopper” exercise designed for them to evaluate Wal-Mart and various money wire outlets. The victims were instructed to keep approximately $200 or more of the less than $2,000 counterfeited postal money orders or bogus cashier’s checks, and immediately wire the remaining money to the conspirators. After a few days, the counterfeited money orders or bogus cashier’s checks would be returned against the victims’ accounts as not negotiable. The victims would then be obligated to pay their banks or their financial institutions.
Conspirators shared most of their proceeds with a group of Nigerians who were responsible for supplying Barwick-Majeski with fraudulent postal money orders and cashier’s checks.
By pleading guilty today, Shupe admitted that his criminal conduct within the wire fraud conspiracy amounted to approximately $6,491 of illegal wires sent or received by Shupe. Peebles admitted that her criminal conduct within the wire fraud conspiracy amounted to approximately $38,360 of illegal wires sent or received by Peebles. Under the terms of their plea agreements, both Shupe and Peebles must pay restitution to their victims.
Under federal statutes, Shupe and Peebles are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Robert, Mo., Police Department.
Two Mexican nationals charged with illegal reentryRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned indictments today charging Mexican nationals Laurencio Garcia-Labra, 39, and Mario Labra-Garcia, 25, with illegal reentry after they were discovered to be in the country illegally, United States Attorney William J. Ihlenfeld, II, announced.
The defendants were allegedly discovered in Ohio County, West Virginia without requisite permission to be in the United States. Both defendants had previously been deported from California to Mexico.
The defendants are each charged with one count of “Reentry of Removed Alien.” They each face up to two 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 defendants.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the cases on behalf of the government. Homeland Security Investigations is leading the inquiry with assistance from the West Virginia State Police.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Martinsburg residents charged with cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Gary Vincent Whorley, 32, and Dawn Marie Wiley, 25, both of Martinsburg, with cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
The defendants allegedly participated in crack cocaine trafficking in Jefferson County, West Virginia.
The defendants are each charged with:
• One count of “Aiding and Abetting the Distribution of Cocaine Base within 1,000 Feet of a School,” for which they each faces up to 60 years in prison and a fine of up to $2,000,000.00,
• One count of “Conspiracy to Distribute Cocaine Base,” for which they each face up to 30 years in prison and a fine of up to $1,000,000.00,
• One count of “Aiding and Abetting the Distribution of Cocaine Base,” for which they each face to 30 years in prison and a fine of up to $1,000,000.00, and
• One count of “Aiding and Abetting the Possession with Intent to Distribute Cocaine Base,” for which they each face up to 30 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 defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti are prosecuting the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, is leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Troy R. Morley Selected to Serve as Tribal LiaisonRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that Troy R. Morley has been named the new Tribal Liaison for the U.S. Attorney’s Office, District of South Dakota. As Tribal Liaison, Morley will serve as the conduit in matters between the U.S. Attorney’s Office and the nine tribes of South Dakota.
Morley joined the U.S. Attorney’s office in 2012, as an Assistant U.S. Attorney in the Pierre branch office. In that capacity, his primary area of prosecutorial responsibility is in Indian country, and specifically the Standing Rock Sioux Indian Reservation.
Morley is currently involved in the formation of a working group to study reentry alternatives with the States of North Dakota, South Dakota, and the Standing Rock Sioux Tribe. Morley will also be working on a reentry project with the Sisseton-Wahpeton Sioux Tribe, as well as working with tribal officials in implementing a pilot program to exercise special domestic violence jurisdiction.
Morley completed his undergraduate studies at the University of Nevada, Las Vegas, and received his law degree, with distinction, from the University of North Dakota. In addition to his experience in private practice prior to joining the U.S. Attorney’s office, Morley previously served as Special Judge to the Turtle Mountain Band of Chippewa. He is also a veteran of the United States Navy and was a member of the Commission to Study Racial and Ethnic Bias in the North Dakota Court System.
He is originally from Grand Forks, North Dakota, and is an enrolled member of the Turtle Mountain Band of Chippewa.
Morley and his wife, Abby, live in Pierre, and are the parents of six children.
Troy R. Morley Selected to Serve as Tribal LiaisonRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that Troy R. Morley has been named the new Tribal Liaison for the U.S. Attorney’s Office, District of South Dakota. As Tribal Liaison, Morley will serve as the conduit in matters between the U.S. Attorney’s Office and the nine tribes of South Dakota.
Morley joined the U.S. Attorney’s office in 2012, as an Assistant U.S. Attorney in the Pierre branch office. In that capacity, his primary area of prosecutorial responsibility is in Indian country, and specifically the Standing Rock Sioux Indian Reservation.
Morley is currently involved in the formation of a working group to study reentry alternatives with the States of North Dakota, South Dakota, and the Standing Rock Sioux Tribe. Morley will also be working on a reentry project with the Sisseton-Wahpeton Sioux Tribe, as well as working with tribal officials in implementing a pilot program to exercise special domestic violence jurisdiction.
Morley completed his undergraduate studies at the University of Nevada, Las Vegas, and received his law degree, with distinction, from the University of North Dakota. In addition to his experience in private practice prior to joining the U.S. Attorney’s office, Morley previously served as Special Judge to the Turtle Mountain Band of Chippewa. He is also a veteran of the United States Navy and was a member of the Commission to Study Racial and Ethnic Bias in the North Dakota Court System.
He is originally from Grand Forks, North Dakota, and is an enrolled member of the Turtle Mountain Band of Chippewa.
Morley and his wife, Abby, live in Pierre, and are the parents of six children.
Thai Man Sentenced to Prison for Conspiracy to Violate Arms Export Control Act and International Traffic in Arms Regulations, Involving Significant Amounts of Gun PartsRead the Press Release
WASHINGTON - Kitibordee Yindeear-Rom, 28, a native and citizen of Thailand, was sentenced today to three years in prison for taking part in a conspiracy involving the purchase and shipment of hundreds of gun parts from the United States to Thailand without a license.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr. and Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
Yindeear-Rom pled guilty in November 2014, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations. The plea, which was contingent upon the Court’s approval, called for a sentence of 36 months of incarceration. The Honorable Rosemary M. Collyer accepted the plea today and sentenced the defendant accordingly.
According to the evidence presented at the plea hearing, beginning at least in or about July 2010, Yindeear-Rom entered into an agreement with at least one other individual to ship United States origin goods, including defense articles - specifically gun parts - to Thailand. As part of their agreement, Yindeear-Rom purchased gun parts from United States manufacturers through on-line purchases, and directed the purchased items to be sent to at least one other individual in the United States to conceal the ultimate destination of the purchases.
Upon receipt of the gun parts, the items would be repackaged for shipment to Thailand. Extending through at least October 2013 as part of the conspiracy, Yindeear-Rom caused to be purchased and shipped hundreds of different gun parts from the United States to Thailand without a license. These gun parts included, for example, magazines, gun barrels, night vision scopes, and all manner of gun replacement parts for a variety of handguns, rifles, and shotguns. These defense articles had a retail value in excess of $66,000.
As part of the plea agreement, Yindeear-Rom agreed to his removal from the United States and the forfeiture of $66,000.
In announcing the sentence, U.S. Attorney Machen and Special Agent in Charge Settles commended the efforts of the Special Agents who investigated the case for U.S. Immigration and Customs Enforcement, Homeland Security Investigations. They also commended the work of Assistant U.S. Attorneys Tejpal Chawla and Opher Shweiki, who prosecuted the case, and Assistant U.S. Attorney Zia Faruqui, who assisted with forfeiture aspects of the investigation.
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Texans Sentenced in East Texas Mortgage Fraud ConspiracyRead the Press Release
PLANO, Texas – Six defendants have been sentenced for their roles in a mortgage fraud conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Sentencing hearings were held before U.S. District Judge Marcia Crone.
Debra Rush-Santens, 42, of Plano, pleaded guilty on Oct.4, 2012, and was sentenced to 60 months in federal prison on Mar. 12, 2015, and ordered to pay restitution in the amount of 6,215,087.47.
Casey Irons, 42, of Rockwall, Texas, pleaded guilty on Dec 18, 2012, and was sentenced to 87 months in federal prison on Mar. 12, 2015, and ordered to pay restitution in the amount of $5,907,697.05.
Chris Limbrick, 47, of Houston, pleaded guilty on Nov 8, 2012, and was sentenced to 47 months in federal prison on Mar. 13, 2015, and ordered to pay restitution in the amount of $4,521,764.15.
Gregory Preston, 43, of Cedar Hill, Texas, pleaded guilty on Dec 18, 2012, and was sentenced to 42 months in federal prison on Mar. 16, 2015, and ordered to pay restitution in the amount of $3,085,085.52.
Eric Patterson, 36, of Dallas, pleaded guilty on Nov 8, 2012, and was sentenced to 25 months in federal prison on Mar. 12, 2015, and ordered to pay restitution in the amount of $1,233,784.91.
Michael Allen, 47, of Houston, pleaded guilty on July 7, 2014 and was sentenced to 41 months in federal prison and ordered to pay restitution in the amount of $507,862.61.
Santens, Irons, Limbrick, and Preston all pleaded guilty to conspiracy to commit money laundering. Patterson and Allen pleaded guilty to conspiracy to commit wire fraud.
According to information presented in court, from July 2006 to March 2008, in the Eastern District of Texas and elsewhere, Santens conspired with Irons, Limbrick, Preston, Patterson, and Allen to engage in monetary transactions in criminally-derived property of a value greater than $10,000, which property was derived from wire fraud, that is a scheme to induce lending institutions to fund mortgage loans for residential properties for which the property values had been fraudulently inflated for buyers who had been fraudulently qualified for loans.
Santens owned, operated, and controlled Silver Key Financial ("SKF"), LDS Lakehill Developers Group, L.P. ("LDS"), and North Texas Developers Group ("NTDG") from her residence in Plano, Texas, and at her office in Frisco, Texas, both in the Eastern District of Texas. In furtherance of the conspiracy, Santens caused HUD-1 forms to be submitted to lending institutions that falsely stated that the buyers had provided the down payment for the purchase of the property when Santens was the source of the down payment. Santens knew at the time of submission to the lending institutions that the source of the down payment was material to the lender in determining whether to fund the requested mortgage loan. Santens also knew that co-conspirators would provide documents containing false information to the lending institutions; that lending institutions would rely on the false material representations made in the loan documents in determining whether to fund the mortgage loans; that the lending institutions would provide the loan funds through the use of interstate wire transfers; and Santens intended for these actions to occur.
Santens, as a recipient of the criminally-derived loan funds from the title companies’ subsequent disbursements, distributed the proceeds through wire transfers in amounts greater than $10,000 to co-conspirators as kickbacks for their roles in the conspiracy.
Irons' role in the offense was to identify properties that could be fraudulently flipped by Santens, through one of her companies, at a fraudulently inflated price to a straw buyer. Irons coordinated these fraudulent deals with the title company employees, the appraisers, Santens, and other co-conspirators. Irons knowingly caused false gift letters and false verifications of employment forms to be submitted to lenders to induce the lenders to fund the mortgage loans.
Limbrick was a loan officer for Outlook Mortgage who assisted individuals with completing Loan Applications in order to qualify the individuals for mortgage loans from lending institutions.
Patterson and Preston's role in the offense was to recruit buyers to purchase properties in a fraudulent flipping scheme where Santens, through one of her companies, would sell properties at a fraudulently inflated price.
Allen was a loan processor for Mortgage Icons who assisted individuals with completing Loan Applications in order to qualify the individuals for mortgage loans from lending institutions.
This law enforcement action is part of President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by Federal Bureau of Investigation and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Andy Williams and Chris Eason.
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Ten sentenced on drug trafficking chargesRead the Press Release
ELKINS, WEST VIRGINIA – Ten individuals were sentenced today on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced.
Dustin Turner, 42, of Weston, West Virginia, was sentenced to 120 months in prison for his role in manufacturing methamphetamine in Lewis County, West Virginia, in May 2014. He pled guilty in October 2014 to one count of “Possession of Materials to be used in the Manufacture of Methamphetamine” following an investigation by the Lewis County Sheriff’s Office. Turner will receive credit for time served since May 2014.
Julie Ann Johnson, 37, of Elkins, West Virginia, was sentenced to 57 months in prison for her role in manufacturing methamphetamine in Randolph County, West Virginia. She pled guilty in November 2014 to one count of “Possession of Materials to be used in the Manufacture of Methamphetamine” following an investigation by the Randolph County Sheriff’s Office. Johnson was also ordered to pay restitution in the amount of $19,221.49.
Shannon David Flagg, 41, of Hambleton, West Virginia, was sentenced today to 41 months in prison for her role in manufacturing methamphetamine in Tucker County, West Virginia. She pled guilty in October 2013 to one count of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” following an investigation by the United States Forest Service, the Tucker County Sheriff’s Office, and the West Virginia State Police.
Richard Raymond Linger, 29, of Norton, West Virginia, was sentenced today to 15 months in prison after he was discovered in possession of morphine in Tucker County, West Virginia in February 2014. He pled guilty in December 2014 to one count of “Possession with Intent to Distribute Morphine” following an investigation by the Tucker County Sheriff Department.
Shannon Salisbury, 35, of Burnsville, West Virginia, was sentenced today to five years of probation for her role in manufacturing methamphetamine in Lewis County, West Virginia. She pled guilty in May 2014 to one count of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” following an investigation by the West Virginia State Police.
Rita Brown, 50, of Sand Fork, West Virginia, was sentenced today to five years of probation for her role in manufacturing methamphetamine in Gilmer County, West Virginia. She pled guilty in May 2014 to one count of “Maintaining Drug-Involved Premises” following an investigation by the West Virginia State Police.
Clyde Earl Goldstein, 35, of Davis, West Virginia, was sentenced today to two years of probation for selling subutex, a prescription painkiller, in Tucker County, West Virginia. He pled guilty in October 2014 to one count of “Distribution of Subutex” following an investigation by the Tucker County Sheriff Department.
Jessica Dawn Kerns, 23, of Beverly, West Virginia, was sentenced today to two years of probation for selling Alprazolam, an anti-anxiety drug, in Randolph County, West Virginia. She pled guilty in September 2014 to one count of “Distribution of Alprazolam” following an investigation by the Mountain Region Drug and Violent Crime Task Force, the United States Forest Service, the Pocahontas County Sheriff’s Office, and the West Virginia State Police.
Angie Lyn Graber, 48, of Philippi, West Virginia, was sentenced today to two years of probation for selling Clonazepam, an anti-anxiety medication, in Randolph County, West Virginia. She pled guilty in September 2014 to one count of “Distribution of Clonazepam” following an investigation by the United States Forest Service.
Mindy Rachelle Leary, 26, of Durbin, West Virginia, was sentenced today to two years of probation for her role in manufacturing methamphetamine in Randolph County, West Virginia. She pled guilty in November 2014 to one count of “Distribution of Laboratory Supply Knowingly to Manufacture Methamphetamine” following an investigation by the Mountain Region Drug and Violent Crime Task Force, the United States Forest Service, the Pocahontas County Sheriff’s Office, and the West Virginia State Police.
Assistant U.S. Attorney David Perri prosecuted Brown and Turner, Assistant U.S. Attorney Michael Stein prosecuted Goldstein and Linger, and Assistant U.S. Attorney Stephen Warner prosecuted the remaining defendants on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Stover Man Charged with Threatening to Shoot the PresidentRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Stover, Mo., man was charged in federal court today for making threats against the President of the United States.
Cameron James Stout, 24, of Stover was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo. Stout, who was arrested and had an initial court appearance today, remains in federal custody.
According to an affidavit filed in support of the federal criminal complaint, Stout threatened on several occasions to shoot and kill President Barack Obama.
A confidential informant approached a Morgan County sheriff’s deputy on Friday, March 13, 2015, and reported that Stout had solicited him the previous day for a rifle and assistance in his plan to shoot the president in the next few weeks, the affidavit says. The confidential informant, a former Aryan Nation member, reported that Stout said he was going to kill the president and that he was serious. According to the confidential informant, Stout said he didn’t have a high-powered rifle and needed to obtain one. The confidential informant told Stout he could put him in contact with a high-ranking member of the Aryan Nation to assist him in obtaining a rifle and to provide Stout with information which would assist him.
On Saturday, March 14, 2015, Stout again discussed shooting the president while he and the confidential informant worked on four-wheel ATVs. Stout drew two diagrams of the Washington, D.C., area and his shooting locations that he had identified through research on the Internet, the affidavit says, which he gave to the confidential informant (who turned them over to law enforcement). According to the affidavit, Stout told the confidential informant that he actually owns a .270-caliber Weatherby rifle with a high-powered scope that he had loaned to another person, but now has the rifle back and plans to use it to commit his crime.
On Monday, March 16, 2015, the confidential informant visited Stout’s residence then met him again later. According to the affidavit, they again discussed Stout’s intention to shoot the president and made arrangements for Stout to meet the confidential informant’s superior in the Aryan Nation.
Stout and the confidential informant met again this morning with an undercover law enforcement officer purporting to be the confidential informant’s superior in the Aryan Nation. According to the affidavit, Stout stated that his plan was to set up at Crown Center in Kansas City, Mo., and to shoot the president the next time he comes to Kansas City. Stout wanted the undercover officer to provide him with transportation to and from Kansas City. Stout allegedly stated that he was a competent shot up to 200 yards.
The undercover officer asked Stout if it was Stout’s plan to shoot the president, according to the affidavit, and Stout replied “Yes.” Stout allegedly told the undercover officer that he had done research for his plan on his home computer.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller and Assistant U.S. Attorney Jim Lynn. It was investigated by the U.S. Secret Service and the Morgan County, Mo., Sheriff’s Department.
St. Petersburg Man Sentenced to Twelve Years for Child Pornography OffensesRead the Press Release
Fort Myers, Florida – United States District Judge John E. Steele has sentenced William G. Roberts (55, St. Petersburg) to 12 years in federal prison for receiving, possessing, and distributing child pornography. The Court also ordered him to serve a life term of supervision following his release from prison, and to register as a sex offender. Roberts pleaded guilty on December 11, 2014.
According to court documents, Roberts sought out and caused a nine-year-old child to engage in sexually explicit conduct for the purpose of producing videos of the explicit conduct. The child was directed by Roberts to upload the requested videos to his private YouTube account. The child’s mother discovered the explicit videos and chats and contacted police. Subsequent investigation by law enforcement identified Roberts as the individual with whom the child had been communicating.
This case was investigated by the Federal Bureau of Investigation, Child Exploitation Unit and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Saipan Sex Trafficker Sentenced to over 19 Years in PrisonRead the Press Release
SAIPAN, CNMI – ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on Tuesday, March 17, 2015, U.S. District Chief Judge Ramona V. Manglona sentenced Wei Lin, age 32, of the People’s Republic of China, to 235 months in prison followed by five years of supervised release for conspiracy to commit sex trafficking. Judge Manglona also ordered Lin to pay $7,172.39 in restitution to each of the three victims.
Lin pleaded guilty to the offense on June 8, 2012. At today’s sentencing hearing, Judge Manglona found the United States had also proven by clear and convincing evidence that Lin was the leader of the sex trafficking organization.
United States Attorney for the Districts of Guam and the Northern Mariana Islands, Alicia A.G. Limtiaco, stated, “Those who traffic women will find no refuge from law enforcement. We will aggressively prosecute anyone who tries to profit off the sexual exploitation of women. Human trafficking is a modern form of slavery, and today’s sentence reflects the seriousness of this heinous crime. It also sends a clear message that trafficking in persons will not be tolerated in the C.N.M.I.”
The case was investigated by the Federal Bureau of Investigation, with assistance of the Department of Homeland Security/Homeland Security Investigations, and prosecuted by Assistant U.S. Attorney Garth R. Backe.
Registered Child Sex Offender Pleads Guilty to Receipt of Child PornographyRead the Press Release
WILMINGTON, Del. – Rogelio “Roger” Cordero, age 58, of New Castle, Delaware, pled guilty today to Receipt of Child Pornography, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware.
Cordero was previously convicted in Delaware of Unlawful Sexual Intercourse, Unlawful Sexual Penetration and Unlawful Sexual Contact Second Degree in 1992. Those crimes involved Cordero’s sexual abuse of two female minors over an 18-month period. He was sentenced to 18 years in Delaware state prison, and 5 years of probation following his release.
As a result of his prior convictions, Cordero faces enhanced sentencing penalties under federal law, including a mandatory minimum sentence of fifteen years, and a maximum sentence of forty years, in prison. Cordero also faces a term of supervised release of five years to life following his prison sentence, and he will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. Cordero will be sentenced on July 27, 2015 by United States District Judge Sue L. Robinson.
According to statements made and documents filed in court, Cordero came to the attention of the Delaware Child Predator Task Force (the “Task Force”) after it began an investigation into two other registered child sex offenders living in Delaware. That investigation began in October 2012, after the Task Force received a cybertip from the National Center for Missing and Exploited Children (NCMEC). The cybertip reported that an AOL user, subsequently identified as Cordero, a registered child sex offender from New Castle, Delaware, had uploaded files containing child pornography through an AOL server.
On December 20, 2012, Task Force officers executed a state search warrant at Roger Cordero’s New Castle residence, where they found computers containing thousands of images of child pornography featuring mostly prepubescent and adolescent children. They also found that Cordero had been trading child pornography with David Pennington, another registered child sex offender whom Cordero had met while both were incarcerated in the Smyrna Correctional Institution for child sex offenses. The men shared the images of child pornography by mailing digital photographs saved to thumb drives back and forth to one another. They also found a small, concealable “pen” camera that Cordero had used to attempt to record explicit footage of a minor child changing clothes.
Later on the day of December 20, 2012, Task Force officers executed a state search warrant at Pennington’s Georgetown residence. Pennington, who was then wearing an electronic monitoring device due to a state probation violation, was present for the search. During the search, Task Force members recovered evidence relating to the mailing of USB “thumb drives” containing child pornography and handwritten child sexual abuse stories between Pennington and Cordero. Pennington also informed the officers that he would view child pornography mailed to him by Cordero with another registered sex offender, William Zimmerman, of Georgetown, Delaware.
On January 8, 2013, Task Force officers executed a state search warrant at Zimmerman’s Georgetown residence. They recovered several pieces of computer equipment found to contain hundreds of images of child pornography. The images featured children ranging in age from infancy to mid-teen being posed or engaged in sexual acts with adult males.
Cordero is now the third member of the group to be convicted of child exploitation crimes. On October 11, 2013, David Pennington was sentenced to 28 years in prison by Delaware Superior Court Judge T. Henley Graves after pleading guilty to Dealing in Child Pornography, in violation of Delaware law. On April 22, 2014, William Zimmerman was sentenced to the mandatory minimum term of 15 years in federal prison by United States District Judge Gregory M. Sleet after pleading guilty to Receipt of Child Pornography.
All three cases were brought as part of the United States Department of Justice’s Project Safe Childhood Program, which was launched in May 2006 to combat the growing epidemic of online child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue child victims.
As intended by the United States Department of Justice’s Project Safe Childhood Program, the Delaware Child Predator Task Force, the United States Department of Homeland Security, Homeland Security Investigations, the Delaware Attorney General’s Office and the U.S. Attorney’s Office worked together to investigate and prosecute Cordero, Pennington and Zimmerman. Based on their outstanding efforts, the investigative and prosecution team recently received the United States Department of Homeland Security’s “Exemplary Partnership Award,” the only award of its kind presented nationally by DHS this year.
Ramah Man Sentenced to Ten Years in Federal Prison for Possession of a Stolen FirearmRead the Press Release
ALBUQUERQUE – Kenneth Durante, 57, of Ramah, N.M., was sentenced today to 120 months in federal prison for his possession of a stolen firearm conviction. Durante will be on supervised release for three years after completing his term of incarceration.
Durante was arrested on Jan. 6, 2014, in Gallup, N.M., on an indictment charging him with being a felon in possession of a firearm. The indictment alleged that Durante unlawfully possessed a firearm and ammunition on July 6, 2013, in McKinley County, N.M. At the time, Durante was prohibited from possessing firearms and ammunition because he previously had been convicted of aggravated burglary, aggravated assault, aggravated battery, attempted second degree murder and possession of marijuana.
On Dec. 3, 2014, Durante pled guilty to a felony information charging him with possession of a stolen firearm. Durante admitted possessing a loaded revolver which had been stolen from a residence when he was encountered by law enforcement on July 6, 2013, in McKinley County, N.M.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the McKinley County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney David M. Walsh.
The case 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.
Portland Woman Pleads Guilty to Mail and Wire FraudRead 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 Beth M. Rogers, 45, of Portland, Maine, pleaded guilty today in U.S. District Court to mail and wire fraud.
Court records show that Rogers operated TravelWise Cruises & Tours, a travel agency in Saco. Beginning in late 2011, Rogers began taking client money without making travel reservations for the clients who had provided the funds. She instead used the money to pay for the travel of other individuals who had booked travel through TravelWise. She misapplied money from more than 50 clients in this fashion until mid-2012, when her scheme was discovered.
Rogers faces up to 20 years in prison, a $250,000 fine and three years of supervised release. She will also be required to pay full restitution to her victims. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Saco Police Department and the Federal Bureau of Investigation.
Portland Resident Sentenced to Six Months in Federal Prison for Aiming a Laser Pointer at Commercial AircraftRead the Press Release
PORTLAND, Ore. - Stephen Francis Bukucs, 41, of Portland, was sentenced to six months in federal prison yesterday by U. S. District Judge Michael W. Mosman for two felony counts of aiming a laser pointer at commercial jetliners as they approached Portland International Airport for night landings in October 2013. Following the prison term, Bukucs must serve three years of supervised release.
On July 15, 2014, Bukucs pleaded guilty to aiming his green laser device at United Airlines Flight 1406 and Jet Blue Flight 1205 as they flew over his apartment in Northeast Portland on October 13, 2013. The laser struck both aircraft and distracted the pilots during their final descents to Portland. Bukucs confessed to the FBI that, over several months, he had targeted up to 25 aircraft and that he did so for entertainment and as a “cat-and-mouse” game with the police who pursued him. His arrest occurred after intense air and ground surveillance by FBI agents and police officers. Investigators reported over 100 laser strikes from the vicinity of defendant’s apartment in 2013, the government stated to the court.
Bukucs, a native of Portland, worked for Delta Airlines in the Portland ground crew from 1997 to 2004. From 2007 until his arrest, he worked for a private security firm, providing armed security in Portland and Vancouver, Washington.
Among his findings as part of the sentence, Judge Mosman found that “the offense involved recklessly endangering the safety of an aircraft.” The government noted at sentencing that aiming a laser at aircraft always jeopardizes aircraft safety, since it may impair pilots’ vision by causing glare or flash blindness. The action can force pilots to divert their eyes from their flight or landing path, startle them, and reduce their ability to observe obstacles.
The investigation was conducted by the FBI, the Portland Police Bureau, the Port of Portland Police and the Clackamas County Sheriff’s Office. The case was prosecuted by Assistant U. S. Attorney Stephen F. Peifer.
Pecos Father and Daughter Sentenced in Methamphetamine ConspiracyRead the Press Release
In Pecos today, a federal judge sentenced 56-year-old Jose Luis Corrales to 365 months and 28-year-old Angelica Corrales to 210 months in federal prison, announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Pecos Chief of Police Clay D. McKinney.
Both defendants are from Pecos. In addition to the prison terms, visiting U. S. District Chief Judge of the Southern District of Mississippi Louis Guirola, Jr., ordered the defendants to serve a 5-year term of supervised release upon completion of their prison terms.
According to court records, Jose Luis Corrales and Angelica Corrales pled guilty to one count of conspiracy to distribute methamphetamine, admitting that from October, 2013, continuing until August, 2014, the two distributed over 3000 grams of methamphetamine. Court records further reveal that Angelica Corrales admitted she sold at a minimum three grams of methamphetamine, supplied by her father, three times a day for a year.
This case was investigated by the Department of Homeland Security Investigations - Alpine and the Pecos Police Department with assistance from the United States Border Patrol, Department of Public Safety, the Texas Rangers, and the Federal Bureau of Investigation. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
Newton County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 61-year-old Newton, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Dale Clark pleaded guilty on Oct. 28, 2014, to the sexual exploitation of a child and was sentenced to 180 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on July 30, 2013, law enforcement officers were alerted to possible child exploitation taking place in Newton County. Federal search warrants were executed for Clark’s digital camera, memory card, an external thumb drive, and a thumb drive. A forensic examination of the items revealed images of child pornography, which Clark had produced. Clark was indicted by a federal grand jury on Sep. 4, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Newton County Sheriff’s Office and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
New York Man Admits Enticing a Minor to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted soliciting a female minor to produce sexually explicit images and using Craigslist to advertise sexual encounters with the minor, U.S. Attorney Paul J. Fishman announced
Gabriel Toro, 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in the case and statements made in court:
Toro admitted that between December 2011 and August 2014, he used the internet to induce a 14-year-old girl to engage in criminal sexual conduct including taking pictures of her genitals for him. Toro also admitted to distributing images of the girl to another individual and posting advertisements on Craigslist for individuals to have sex with the minor in exchange for money.
The charge to which Toro pleaded guilty carries a maximum statutory penalty of life in prison, a mandatory minimum prison sentence of 10 years and a maximum fine of $250,000. Toro will be required to register as a sex offender. Sentencing is scheduled for June 25, 2015.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: James Friedman Esq., Newark
New York City Police Department Auxiliary Officer Charged with Hacking into NYPD Computer and FBI DatabaseRead the Press Release
Earlier today, a criminal complaint was unsealed charging Yehuda Katz, a New York City Police Department (NYPD) Auxiliary Deputy Inspector assigned to the 70th Precinct in Brooklyn, with executing a scheme to hack into a restricted NYPD computer and other sensitive law enforcement databases. The defendant was arrested earlier this morning and will have his initial appearance this afternoon at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge James Orenstein.
The charges and arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and William J. Bratton, Commissioner of the New York City Police Department.
“The defendant allegedly used his position as an auxiliary officer to hack into restricted computers and networks in order to obtain the personal information of thousands of citizens in a scheme to enrich himself through fraud,” stated United States Attorney Lynch. “The threat posed by those who abuse positions of trust to engage in insider attacks is serious, and we will continue to work closely with our law enforcement partners to vigorously prosecute such attacks.” Ms. Lynch expressed her grateful appreciation to the FBI and the NYPD’s Internal Affairs Bureau, which worked together closely to investigate the case.
“As alleged, Katz illegally accessed sensitive law enforcement computer systems for his own personal gain. This type of behavior betrays the public’s trust and cannot be tolerated. We entrust our public servants to safeguard confidential information and not prey upon victims, and we will continue to work with our partners to prosecute those who engage in this type of criminal activity,” stated FBI Assistant Director-in-Charge Rodriguez.
“This case is a clear example of the collaborative effort between federal prosecutors, the FBI, and the NYPD’s Internal Affairs Bureau to weed out individuals who allegedly violate the Department’s trust,” said Police Commissioner Bratton.
According to the complaint, the defendant surreptitiously installed multiple electronic devices in the Traffic Safety Office of the NYPD’s 70th Precinct that allowed him to remotely access restricted NYPD computers and law enforcement databases, including one maintained by the FBI, that he did not have permission to access. One of the electronic devices installed by the defendant contained a hidden camera that captured a live image of the Traffic Safety Office and was capable of live-streaming that image over the Internet. The second electronic device was connected to one of the computers in the Traffic Safety Office and allowed the computer to be accessed and controlled remotely.
As alleged in the complaint, investigators with the NYPD’s Internal Affairs Bureau and the FBI determined that the devices had been used to allow the defendant to remotely log onto an NYPD computer using usernames and passwords belonging to NYPD uniformed officers. Thereafter, the defendant ran thousands of queries in databases, including a restricted law enforcement database maintained by the FBI, for information, including the personal identifying information of victims, related to traffic accidents in the greater New York City area.
The complaint further alleges that, after the defendant accessed the NYPD computer and law enforcement databases, he contacted individuals who had been involved in traffic accidents and falsely claimed to be, among others, an attorney with the fictitious “Katz and Katz law firm” who could assist them with potential legal claims. Letters sent by the defendant to accident victims included claims such as “I can advise you with 100% confidence that I can resolve this claim in your favor,” and “My fee is 14% only when you collect. And I know that you will collect.” All told, according to the complaint, between May and August 2014, the defendant ran over 6,400 queries in sensitive law enforcement databases that he accessed remotely via the compromised NYPD computer for information related to traffic accidents.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 10 years.
The government’s case is being prosecuted by Assistant United States Attorneys Samuel P. Nitze and Peter W. Baldwin, with assistance provided by the Computer Crime and Intellectual Property Section of the Department of Justice.
The Defendant:
YEHUDA KATZ
Age: 45
Brooklyn, New York
E.D.N.Y. Docket No. 15-MJ-229
Mexican National Sentenced for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr., announced that GALDINO MARTINEZ-CARRILLO, age 38, a citizen of Mexico, was sentenced yesterday for illegal re-entry of previously removed alien.
U.S. District Judge Martin L.C. Feldman sentenced MARTINEZ-CARRILLO to time served. MARTINEZ-CARRILLO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings
According to the court documents, on August 1, 2014, GALDINO MARTINEZ-CARRILLO was found in the United States after having been deported previously on October 25, 2012.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Mexican Citizen Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Tomas Bustamante-Machado, 51, a Mexican citizen illegally residing in Phoenix, Ariz., pleaded guilty this morning in Albuquerque, N.M., to federal trafficking charges.
Bustamante-Machado was arrested on Jan. 16, 2015, in Bernalillo County, N.M., after the New Mexico State Police found approximately 1286 grams (2.8 pounds) of heroin hidden in his vehicle following a routine traffic stop. According to the criminal complaint, the heroin was found in an altered compartment in the back seat of Bustamante-Machado’s vehicle after he consented to a search of the vehicle. Court documents indicate that Bustamante-Machado is a Mexican citizen who was out of prison on an immigration bond pending a deportation hearing at the time of his arrest in this case. Bustamante-Machado subsequently was indicted on Feb. 10, 2015, and charged with possession of heroin with intent to distribute.
During today’s proceedings, Bustamante-Machado pled guilty to the indictment and admitted that on Jan. 16, 2015, while traveling from Phoenix, he was stopped by law enforcement and found to be in possession of more than one kilogram of heroin which was concealed in a secret compartment in the vehicle he was driving. He further admitted that the heroin was intended for another person.
Bustamante-Machado has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Bustamante-Machado faces a mandatory minimum of ten years and a maximum of life in federal prison. He will be deported after completing his prison sentence.
This case was investigated by the Border Enforcement Security Task Force (the BEST Team) of the Albuquerque office of HSI and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Joel R. Meyers and the Organized Crime Section of the U.S. Attorney’s Office.
This case was 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.
Members of Floyd County Family Plead Guilty to Insurance FraudRead the Press Release
PIKEVILLE — Three members of a Floyd County family admitted in federal court that they attempted to defraud insurance companies out of thousands of dollars.
On Monday, Charles Ray Tackett, 42, his son, Michael Ray Tackett, 25, and his wife, Anna Grace McGuire Tackett, 27, pleaded guilty to wire fraud and conspiracy before U.S. District Judge Danny C. Reeves.
According to court documents, Charles Tackett devised a scheme to defraud insurance carriers, by fraudulently obtaining insurance on classic vehicles. Tackett admitted he purchased vehicles, including a 1971 Cadillac Deville and a 1972 Oldsmobile, and falsely reported to the insurance companies that the vehicles had been fully restored through a body shop, when no such work had been done to the vehicles.
Tackett claimed the cars were worth significantly more than their actual value and he obtained insurance based on the inflated value of the vehicles. After the vehicles were destroyed in a fire, Tackett attempted to recover money by filing a claim under the fraudulently obtained insurance policy.
Tackett also acknowledged he recruited his wife and son to join the conspiracy. Michael Tackett and Anna McGuire Tackett executed similar schemes involving a 1978 Chevy Monte Carlo, a 1979 Pontiac Trans Am, and a 1984 Pontiac Firebird.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty pleas.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kate K. Smith represents the federal government in this case.
All three defendants are scheduled to be sentenced on June 22, 2015. They face a maximum prison sentence of 20 years and a maximum fine of $250,000. Any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Member of Lawrence Kidnapping Crew Sentenced to 16 Years in PrisonRead the Press Release
BOSTON – Calling his crime “heinous” and “dastardly,” a U.S. District Court Judge sentenced a Lawrence man to 16 years in federal prison yesterday for his role in a 2012 kidnapping.
Edgar Acevedo, 34, was sentenced to 16 years in prison and two years of supervised release. In December 2014, Acevedo pleaded guilty to conspiracy to commit kidnapping.
Acevedo was part of a kidnapping crew headed by Alfred Vasquez. On Jan. 30, 2012, Vazquez, Acevedo, Alberto Moreno, Julio Gonzalez, and Deborah Torres, all of Lawrence, held a gun to a victim and kidnapped him from a street in the Jamaica Plain neighborhood in Boston. Through Vasquez, the crew demanded a $100,000 ransom for the victim’s release and, joined by William Ayala, held the victim in Lawrence for five days. After federal agents interceded, the victim was rescued, unharmed, in Lawrence. Among other evidence, members of the crew were identified by fingerprint and DNA evidence.
Before imposing sentence, Judge Gorton termed Acevedo’s crime “heinous” and remarked:
“You deserve to be severely punished here because you played an integral role in a sophisticated, well-planned kidnapping that involved the use of violence, firearms and an abduction for at least several days and the demand for and pursuit of a ransom after death threats. This kind of an egregious crime is rightly dealt with harshly in the sentencing guidelines, particularly to deter the commission of such crimes. And because you were part of the conspiracy to carry out this potentially deadly kidnapping, you are deserving of the long sentence you are about to receive. This sentence is intended not only to deter you from ever committing such a crime again but also to deter anyone else, whether engaged in drug trafficking or otherwise, from committing such dastardly crimes.”
This case is part of a two-year investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Massachusetts State Police, the Lawrence Police Department, and other law enforcement agencies into violent kidnapping and home invasion crews operating in Lawrence. According to affidavits and other documents filed in court, the investigation revealed that the majority of these kidnappings were carried out by organized, armed, violent crews often referred to as Joloperros (loosely translated as “Stick-up Guys”). These Joloperros crews typically kidnapped drug dealers for large ransoms, paid in cash and/or drugs; used safe houses to hold their hostages; and sometimes assaulted and burned their victims while they held them captive. These crews also frequently used sophisticated tracking techniques, such as GPS devices, to follow their victims before the abductions, and at times used associates in the Dominican Republic to receive ransom money.
Seven people have pleaded guilty in connection with this kidnapping, including Miguel Nolasco, a relative of the victim who hired Vazquez to commit the kidnapping, Acevedo, Moreno, Gonzale,; Torres, and Ayala. Sentencing hearings for the remaining defendants are scheduled for March and April 2015.
Since the investigation began, more than 20 people have been charged in federal court with kidnapping-related offenses or because they were identified as being associated with members of Lawrence-based kidnapping crews. Including the guilty pleas referenced here, to date, nine people have pleaded guilty to conspiracy to commit kidnapping, while four others have pleaded guilty to firearm-related offenses.
United States Attorney Carmen M. Ortiz; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief James Fitzpatrick of the Lawrence Police Department; Commissioner William Evans of the Boston Police Department; Chief Damenic J. DiMella of the Saugus Police Department, made the announcement today. The cases are being prosecuted by Assistant U.S. Attorneys Peter K. Levitt, Christopher Pohl, and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
Member of Drug Trafficking Organization Sentenced to 57 Months in Prison for Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A member of a large-scale drug trafficking organization was sentenced today to 57 months in prison for conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Jamar Johnson, a/k/a “Rep,” of Lakewood, New Jersey, pleaded guilty Dec. 1, 2014, before U.S. District Judge Peter G. Sheridan to conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
In March 2014, 18 other alleged members of the drug trafficking organization of which Johnson was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those individuals, eight have pleaded guilty.
According to documents filed in the case and statements made in court:
Between September 2013 and March 2014, Johnson conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. Johnson admitted that he distributed between 100 and 400 grams of heroin in furtherance of the conspiracy.In addition to the prison term, Judge Sheridan sentenced Johnson to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Joshua Markowitz Esq., Lawrenceville, N.J.
Medford Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
MEDFORD, Ore. - On Monday, March 16, 2015, Senior U.S. District Judge Owen M. Panner sentenced Joel Daniel Dixon, 49, of Medford, Oregon, to 188 months in federal prison, after he previously pled guilty to being a felon in possession of ammunition. Dixon will be on supervised release for five years after he completes his prison sentence.
In February 2013, a Jackson County Probation officer, accompanied by Jackson County Sheriff’s deputies, conducted a home visit on a probationer. The probation officer had reason to believe that another fugitive was at the residence. A sheriff’s deputy went to the back of the residence and saw Dixon hiding by the back window in a narrow space between the fence and the house. The deputy ordered Dixon to put his hands up. Dixon turned away, reached into his pocket and threw something down, and then walked towards the deputy with his hands up. The deputy frisked Dixon and found a Colt .380 magazine loaded with five .380 rounds in his pocket. In the narrow space where Dixon was hiding, officers found a small baggie of methamphetamine that had been dropped on the ground, a gallon ziplock of marijuana bud, a backpack, and a leather satchel containing 584 grams of methamphetamine packaged for sale.
Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or felony drug trafficking crimes is an Armed Career Criminal and faces a 15 year mandatory minimum prison sentence. Dixon’s criminal history includes over 62 arrests, with 14 felony convictions, including felony attempt to elude police, manufacture of methamphetamine, possession of a controlled substance, supplying contraband, theft in the first degree, and felon in possession of a firearm. Dixon also has 22 misdemeanor convictions, including six assault in the fourth degree convictions, resisting arrest, attempt to elude police, false information to police, and felon in possession of a restricted weapon.
This case was investigated jointly by Jackson County Parole and Probation Services, the Jackson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Luzerne County Man Charged with Drug Trafficking and Illegal Gun PossessionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal information was filed today charging a Kingston man with distributing Oxycontin and unlawfully possessing a firearm as an illegal drug user.
According to United States Attorney Peter Smith, the information alleges that Shawn Jenks, age 32, unlawfully possessed the firearm during September through November 2014, and illegally distributed Oxycontin pills on November 22, 2014, in Luzerne County.
The charges stem from an investigation by special agents of the Federal Bureau of Investigation and Kingston Police.
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, if the defendant is convicted of the charges, he faces a maximum penalty under the federal statute of 20 years in prison and a $1 million fine for the drug charge, and 10 years in prison and a $250,000 fine for the gun charge. 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.
Lone Tree Businessman Pleads Guilty to Defrauding the U.S. GovernmentRead the Press Release
DENVER – Hemal Ramesh Jhaveri, age 52, of Lone Tree, Colorado, pled guilty this week before Chief U.S. District Court Chief Marcia S. Krieger to conspiracy to defraud the United States, federal authorities announced. Chief Judge Krieger is scheduled to sentence Jhaveri on June 15, 2015. Jhaveri was indicted by a federal grand jury in Denver on August 6, 2014. An information was subsequently filed on March 16, 2015, the same day he pled guilty. Jhaveri is free on bond.
According to information contained in the charging documents and the plea agreement, Jhaveri was the founder, sole owner, and chief executive officer of SofTec Solutions, Inc. of Englewood, Colorado.
Between 2001 and 2010, SofTec Solutions participated in the Small Business Administration’s 8(a) Business Development Program, which was available to small businesses that were owned and controlled by socially and economically disadvantaged individuals. As a result of its participation in the program, the company received United States government contracts under which it provided clerical and administrative support and other services. During the life of the conspiracy, the government paid SofTec Solutions more than $17,000,000 pursuant to those contracts.
As requirements for SofTec Solutions’ continued participation in the program, Jhaveri’s net worth was to remain under $750,000 and his withdrawals from the company were not to exceed $300,000 in any fiscal year. In order to circumvent those limits, Jhaveri, with the assistance of others, diverted money from SofTec Solutions to bank accounts that he controlled and to other places for his personal use and benefit. The government’s position is that the diversions occurred in the years 2006 through 2009 and the total amount of money diverted was $4,494,305.79.
Much of the diverted money moved to bank accounts in California, India, Singapore, and Hong Kong and from those accounts to accounts that Jhaveri controlled. In addition, Jhaveri diverted over $500,000 from SofTec Solutions and used it as part of the purchase price of his $3,000,000 residence in Lone Tree, Colorado. He also arranged for the company to pay the IRS $177,240 to satisfy his personal tax bill. In 2008 and 2009, Jhaveri caused SofTec Solutions to transfer a total of $984,194 to pay expenses related to a restaurant in which he had an interest. In addition, Jhaveri funneled $45,000 from SofTec Solutions to an account of a dormant company and used that money to make his alimony payments.
Jhaveri never informed the SBA that this money had been diverted from SofTec Solutions to his use and benefit. If Jhaveri had provided that information, the SBA would have seen that his withdrawals from the company exceeded $300,000 in each of the years 2006 through 2009 and that his net worth each year was more than he reported to the agency.
Jhaveri willfully failed to report much of the diverted money on his federal income tax returns. The government has taken the position that Jhaveri failed to report $3,349,111 of the diverted money as income on his 2006-09 returns and, as a result, he caused a tax loss of $1,171,179. The government is requesting that Jhaveri be ordered to pay that amount as restitution to the IRS.
Jhaveri pled guilty to one count of conspiracy to defraud the United States, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000.
This case was investigated by IRS – Criminal Investigation, Department of Defense – Office of Inspector General – Defense Criminal Investigative Service, General Services Administration - Office of the Inspector General, Army Criminal Investigation Command – Colorado Fraud Resident Agency – Major Procurement Fraud Unit, Small Business Administration – Office of the Inspector General. The Special Enforcement Program of the Internal Revenue Service assisted in the case. The defendant was prosecuted by the Economic Crime Section of the U.S. Attorney’s Office’s Criminal Division.
Law Firm Bookkeeper Pleads Guilty to Embezzling Approximately $1 MillionRead the Press Release
ABINGDON, VIRGINIA – Patricia Ethel Chinault, 72, of Apopka, Florida, pled guilty today to embezzling approximately $1 million from a Carroll County law firm. Chinault previously lived in Carroll County and worked as a bookkeeper for the law firm. After she moved to Florida in 2009, Chinault continued to provide bookkeeping services for the firm.
Chinault had electronic access to the law firm’s accounts. Investigation revealed that she used that access to fraudulently divert money to herself from 2010 to 2014. Federal law enforcement agents became aware of suspicious activity on one of Chinault’s credit card accounts and subsequent investigation revealed the extent of Ms. Chinault’s criminal activity.
According to information provided to the Court at the guilty plea hearing, Chinault spent most of the stolen money on internet gambling. The government has asserted that Chinault will be responsible for more than $1.1 million in restitution. Chinault has admitted to stealing at least $960,809.
United States District Judge James P. Jones scheduled sentencing for June 4, 2015, at 2:00 p.m. Chinault faces a maximum possible penalty of up to twenty years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Laredoan Pleads Guilty to Possessing Child PornographyRead the Press Release
LAREDO, Texas – Oscar Herrera III, 42, of Laredo, has pleaded guilty to possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio and Webb County Sherriff Martin Cuellar.
“This case is another example of the many successes resulting from the strong partnership between HSI and Webb County,” said Ayala, “a partnership which is a credit to the leadership and direction of Sheriff Martin Cuellar.”
As part of the plea today, the court heard that an investigator with the Webb County Sheriff’s Office, while using peer-to-peer software, was able to successfully download various files containing child pornography from an IP address associated with Herrera. As a result of this information, HSI special agents were contacted to assist in the investigation.
In November 2014, agents executed a search warrant at Herrera’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 3,000 images and more than 400 videos of child pornography. Herrera admitted watching the videos and that he knew that it was wrong.
“We’re glad individuals such as Herrera are admitting to the crime they committed, said Cuellar. “We will continue to be on the lookout for those who prey on the most vulnerable members of our population and ensure that they are brought to justice.”
The arrest of Herrera was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
U.S. District Court Judge Marina Garcia Marmolejo accepted the guilty plea today and set sentencing for June 30, 2015. At that time, Herrera faces a maximum of 10 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Herrera also faces up to life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Herrera has been and will remain in custody pending sentencing.
This case, prosecuted by Assistant U.S. Attorney Christopher A. dos Santos, 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."
Justice Department Releases Critical Response Report of San Diego Police Department's Misconduct Policies and PracticesRead the Press Release
COPS Office Releases 40 Recommendations to Implement Best Practices at San Diego Police Department
The U.S. Department of Justice’s Office of Community Oriented Policing Services today announced the completion of an assessment of the San Diego Police Department’s policies and practices for preventing, detecting and investigating misconduct. The San Diego Police Department volunteered to undergo the review by the COPS Office following a series of misconduct incidents over the course of five years.
“Our goal with this report began with identifying deficiencies in policies, practices, or organizational culture that allowed misconduct to occur and to go undetected for years in San Diego,” said COPS Office Director Ronald Davis. “We see this report as a blueprint for reforms, and for building on the reform efforts already undertaken by former Chief William Lansdowne and Chief Shelley Zimmerman.”
The COPS Office first announced the beginning of the Critical Response Technical Assistance review in March 2014. The report focuses on 17 cases of misconduct over five years and includes a review of how the cases were handled, and of the department’s policies and accountability system. During the assessment, the COPS Office’s training and technical assistance provider for the assessment, the Police Executive Research Forum, conducted focus groups and interviews with city and department stakeholders, community outreach and observed operations.
The report identifies a number of deficiencies in recruiting practices, supervision and training of officers, accountability systems, and mechanisms for reviewing citizen complaints and leadership. The assessment recommends a comprehensive approach to all aspects of policing that can help prevent misconduct. This includes the training and supervision of officers, the recruitment and selection of new officers, accountability mechanisms, internal investigations and disciplinary practices.
“We requested and welcomed this assessment from the Department of Justice COPS Office," said San Diego Police Chief Shelley Zimmerman. “The numerous recommendations they have made will only help us improve our department and the proud service we provide to our community.”
The report, Critical Response Technical Assistance Review—Police Accountability: Findings and National Implications of an Assessment of the San Diego Police Department can be found here: https://cops.usdoj.gov/RIC/ric.php?page=detail&id=COPS-W0756.
The assessment was administered as part of the COPS Office’s Critical Response Technical Assistance initiative, designed to provide technical assistance to agencies facing significant law enforcement-related issues. Using subject matter experts, interviews and direct observations, as well as conducting extensive research and analysis, the COPS Office assists law enforcement agencies with enhancing and improving their policies and procedures, operating systems and professional culture.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 126,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
Justice Department Asks Federal Court to Shut Down Indiana Tax Return PreparerRead the Press Release
The United States filed a complaint seeking to permanently bar an Indianapolis woman from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction complaint against Jennifer Carolina Gonzalez, doing business as Jenny’s Tax Services, which was filed in the U.S. District Court for the Southern District of Indiana, alleges that Gonzales fraudulently adjusted customers’ income claimed on Schedule C (Profit or Loss From Business) to either increase an Earned Income Tax Credit the customer was not entitled to, or to reduce the customer’s tax liability. Gonzalez, according to the suit, also frequently prepared returns claiming head of household filing status for customers who were ineligible. The complaint alleges that Gonzalez frequently prepared returns claiming child tax credits for customers’ relatives who lived in Mexico and had never lived in the United States, even though Gonzalez knew that children living in Mexico cannot be used to support child tax credits and additional child tax credits.
Tax return preparers must provide their Preparer Tax Identification Number (PTIN) on returns they prepare. As alleged in the complaint, as part of a pattern of non-compliance, Gonzalez failed to provide her own PTIN on returns she prepared until January 2013. Instead, the complaint alleges that Gonzalez used a PTIN assigned to a person living in New Jersey, who has no connection to Gonzalez and has never authorized Gonzalez or anyone else to use the PTIN.
The complaint further alleges that, in 2012, Gonzalez sold the use of the third-party PTIN she had appropriated, her own Electronic Filing Identification Number (EFIN) and Jenny’s Tax Services’ Employer Identification Number (EIN) to another tax preparation business, which agreed to pay Gonzalez $20 per return filed containing Gonzalez’s identification numbers. Despite selling the use of the identification numbers, Gonzalez continued to use the identification numbers when preparing returns for the 2011 tax year, as did the purchaser.
According to the complaint, the Internal Revenue Service (IRS) estimates that Gonzalez, through Jenny’s Tax Service, has prepared more than 2,000 tax returns since 2011. The suit alleges that the false information she included on her customers’ tax returns generated larger refunds or reduced tax liabilities for Gonzalez’s customers, and that the losses to the U.S. Treasury could exceed $3.9 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ithaca Man Pleads Guilty to ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chris Beach, 48, of, Ithaca, NY, pleaded guilty before U.S. Magistrate Judge Marian W. Payson to a misdemeanor conspiracy charge. The charge carries a maximum sentence one year in prison, a fine of $100,000, or both.Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Beach, a member of the Plumbers & Steamfitters Local 267, conspired to submit a false claim for reimbursement of $6,358 from the Local 267 health benefit program.
The plea is the culmination of an investigation by Special Agents the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the Direction of Special Agent-in-Charge Cheryl Garcia.
Sentencing is scheduled for June 1, 2015 at 12:00 p.m. before Judge Payson.
Hudson County, New Jersey, Contractor Admits Fraudulently Receiving more than $200,000 in Government-Funded Projects through CollusionRead the Press Release
TRENTON, N.J. - A Hudson County, New Jersey, man, today admitted to colluding with other contractors to secure projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.
John Youngclaus, 43, of Bayonne, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with theft of $224,250 in government funds.
According to documents filed in this case and statements made in court:
Youngclaus was the owner of JRY Plumbing and Heating (JRY), a plumbing company in Bayonne. The City of Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low-income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD selected contractors for the HUD-funded rehabilitation grants through a competitive bidding process that required the submission of bids from competing contractors with estimated price quotes. The CBDCD selected the lowest bidder for particular applications.
Between January 2012 and December 2012, Youngclaus solicited, received and submitted bids from competing contractors that were higher than the bids that Youngclaus submitted to the CBDCD on behalf of JRY. On at least one occasion, Youngclaus received blank invoices from a competing contractor and Youngclaus wrote the job details and price quote on the blank invoice and submitted the fraudulent bid along with a lower bid from JRY to the CBDCD for a certain grant-funded job to obtain the grant project. The information also describes at least two instances when Youngclaus submitted fraudulent bids from competing contractors for properties that he owned in Bayonne. Although the jobs were awarded to the competing contractor with the lowest bid, JRY plumbing performed the work on the properties owned by Youngclaus and received the payment for the work.
As a result of Youngclaus colluding with other contractors, JRY wrongfully obtained $224,250 in HUD funds from the CBDCD during 2012.
The theft of government funds charge to which Youngclaus pleaded guilty carries a maximum potential penalty of 10 years in prison and maximum fines of $250,000. Sentencing is currently scheduled forJune 22, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the continuing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
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Defense counsel: Lawrence S. Lustberg Esq., Newark
Honduran Sentenced for Illegal Re-Entry After DeportationRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Omar Oseguera-Cortez, 30, was sentenced on March 16, 2015 to the time he has served in custody for the federal felony offense of re-entering the U.S. unlawfully after two previous deportations.
Oseguera-Cortez is a Honduran national. At his change of plea hearing, Oseguera-Cortez admitted that he had been previously deported to Honduras in 2007 and 2009.
Oseguera-Cortez had served more than two months in custody prior to his sentence hearing. Oseguera-Cortez was originally arrested by Madison County Sheriff’s deputies on January 6, 2015, for criminal damage to property. Oseguera-Cortez will now be remanded to the custody of U.S. Immigration and Customs Enforcement (I.C.E.) for deportation.
The investigation which resulted in Oseguera-Cortez’s arrest and conviction was conducted by Immigration and Customs Enforcement agents.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Harrisburg Man Sentenced to 12 and A Half Years in Prison for Cocaine TraffickingRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a 36-year-old Harrisburg man was sentenced today to 151 months in prison by Chief District Court Judge Christopher C. Conner for possession with the intent to distribute cocaine and crack cocaine.
According to United States Attorney Peter Smith, the defendant, Darnell Lamont Doss, previously pleaded guilty to possession of cocaine base with the intent to distribute in October 2014.
Doss was previously charged in February 2014 in a superseding indictment, as a result of an investigation by the Harrisburg Police Department and the FBI.
The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz.
Gregg County Sex Offender Sentenced for Child Pornography ViolationsRead the Press Release
TYLER, Texas – A 42-year-old Kilgore, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Terry Drennen pleaded guilty on Dec. 2, 2014 to possession of child pornography and was sentenced to 180 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, Drennen, a registered sex offender having been previously convicted of indecency with a child, was found to be in possession of material depicting the sexual exploitation of a child. Drennen was indicted by a federal grand jury on June 19, 2014 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
This case was investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the Rusk County Sheriff’s Office and the Orlando, Florida Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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