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29 April 2015
McKees Rocks Man Pleads Guilty to Child Pornography Possession ChargeRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Jarred Lynch, 29, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that on or about Feb. 21, 2014, Lynch knowingly possessed images in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge McVerry scheduled sentencing for Aug. 7, 2015, at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Lynch.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Marion Couple Charged with Child Sexual Exploitation OffensesRead the Press Release
Michael Darling, age 20, and Jennifer Darling, age 27, both of Marion, Iowa, have been indicted on charges of sexual exploitation of a child, enticement of a minor, and receipt of child pornography. The charges are contained in an Indictment filed on April 23, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that, between January 2015 and March 2015, Michael and Jennifer Darling persuaded, induced, and enticed a minor female to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, and that they persuaded, induced, and enticed the minor female to engage in sexual activity. The indictment also charges that they received child pornography. In addition, the indictment alleges that, in 2007, Michael Darling was adjudicated delinquent for the offense of sexual abuse in the second degree.
If convicted on all charges, Michael Darling faces a mandatory minimum sentence of 25 years’ imprisonment and a possible maximum sentence of life imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment. If convicted on all charges, Jennifer Darling faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Michael and Jennifer Darling made their initial appearance in federal court in Cedar Rapids on April 24, 2015, and Jennifer Darling appeared for a detention hearing today. Michael Darling was held without bond, and Jennifer Darling was released on bond. Their next appearance for trial is set for June 22, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Jones County Sheriff’s Office.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-39.
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Man Sentenced to 7 1/2 Years for Identity Theft for Purposes of Filing False Tax ReturnsRead the Press Release
CHICAGO — A Chicago man was sentenced yesterday to 90 months in federal prison by U.S. District Court Judge Edmond E. Chang for his role in a scheme involving theft of hundreds of identities which were used to file approximately 395 false and fictitious tax returns claiming refunds in amounts totaling approximately $357,539.
The defendant, ROBERT BROWN, pleaded guilty in January 2015 to one count each of aggravated identity theft and wire fraud in a six-count indictment, admitting that beginning in January 2010 and continuing through March 2014, in cooperation with his co-defendant, he submitted fraudulent federal income tax returns using the misappropriated personal identifying information of approximately 332 taxpayers, causing the IRS to issue refunds. Several of the identities were stolen from residents of nursing homes and assisted living facilities. Judge Chang also ordered Brown to pay restitution in amount of $308,829, which is the amount that Brown caused the IRS to pay in fraudulently claimed tax refunds, and imposed a period of 3 years of supervision after his release. Brown is currently in federal custody.
Brown, 30, of Chicago, and co-defendant Lorenzo Brown, obtained personal identifying information from victim taxpayers, including names, social security numbers, and dates of birth, without the knowledge or consent of the victim taxpayers. Co-defendant Lorenzo Brown gave the misappropriated names, social security numbers, and dates of birth to defendant, who knew that Brown obtained the misappropriated identifying information from the residents of nursing homes and assisted living facilities, including the social security number and other personal identifying information. The defendant prepared fraudulent tax returns and electronically filed those fraudulent tax returns claiming fraudulent refunds based upon false income and false tax withholding information, using the identifying information provided to him by his co-defendant. The defendant caused the IRS to send fraudulently claimed tax refunds via prepaid debit card, United States Treasury check, or electronic funds transfers to bank accounts in the name of the co-defendant, who withdrew the funds from the bank accounts and provided portions of these funds to defendant.
“This defendant used the personal identifying information of many victims, including the vulnerable elderly and disabled victims who reside in nursing homes and assisted living facilities, for his own personal gain,” stated Assistant U.S. Attorney Kelly Greening in the Government’s Sentencing Memorandum, “He profited greatly off of the use of the victims’ information.”
Co-Defendant Brown is scheduled to be sentenced June 25, 2015, by U.S. District Court Judge Chang.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Stephen Boyd, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The government was represented by Assistant U.S. Attorney Kelly Greening.
Madison Man Sentenced to Federal Prison for Distributing Crack CocaineRead the Press Release
Herman Smith, Jr., 50, of Madison, Illinois, was sentenced today in the U.S. District Court for the Southern District of Illinois to 120 months in prison and eight years of supervised release on two counts of Distribution of a Controlled Substance. He was also ordered to pay a $400 fine, a $200 Special Assessment, and to forfeit his interest in a firearm found in his apartment, U.S. Currency found in his apartment, and a motorcycle.
Evidence showed that on July 15, 2014, a person working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives met up with Smith in Madison, Illinois, and purchased 56.7 grams of a substance containing cocaine base, commonly known as crack-cocaine. On August 5, 2014, this person again met up with Smith and made another purchase of 56.7 grams of a substance containing cocaine base, commonly known as crack-cocaine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Louisville Tax Preparer Sentenced for Filing False Federal Tax Returns and Diverting Client Funds Without Their KnowledgeRead the Press Release
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr., and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation announced today that Elizabeth A. Lawless, 66, of Louisville, Kentucky, was sentenced this week by Senior District Judge Thomas B. Russell to 6 months in prison, followed by 3 years of supervised release, and ordered to pay restitution in the amount of $329,465 to the IRS.
On November 7, 2014, Lawless pleaded guilty to all counts of a 24-count indictment filed on October 1, 2013, charging her with wire fraud, and aiding and assisting in the preparation of false federal income tax returns.
Beginning in or around February 2010 and continuing through April 2012, Lawless prepared fraudulent tax returns for clients through her business, Lawless BK and Tax, by creating false education credits and fabricating itemized deductions for medical expenses, charitable contributions, and unreimbursed employee business expenses. Lawless did not notify her clients that she was falsifying deductions and credits and did not review her clients' tax returns with them, other than informing them of the amount they were to receive as a refund. As such, her clients were unaware that their returns were fraudulent. From February 2010 to April 2012, the fraudulent returns filed by Lawless, on behalf of her clients, resulted in tax loss of approximately $231,303.
Further, Lawless diverted substantial portions of her clients' fraudulent tax refunds to her own bank account. After the fraudulent tax returns were filed, Lawless provided copies of tax returns to her clients, advising them they were the returns that were filed with the Internal Revenue Service ("IRS"). In many cases, the returns Lawless provided to clients differed from the returns that were actually filed with the IRS, in that the filed returns contained additional fraudulent credits and deductions, resulting in larger refunds. Without her clients’ knowledge or consent, Lawless filed Forms 8888 along with the fraudulent returns so that a portion of the refunds would be deposited in her bank account, while deposits for the amounts indicated on the copies of the tax returns (Lawless provided to the clients) were deposited into the clients' accounts. From February 2010 to April 2012, Lawless diverted approximately $127,553 from her clients' fraudulent tax refunds to her own bank account.
This case was prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Internal Revenue Service-Criminal Investigation.
Louisville Resident Sentenced to 48 Months in Prison for A Scheme to Obtain Fraudulent Federal Income Tax Refunds Using Stolen IdentitiesRead the Press Release
Ordered to pay $94,159 in restitution
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation announced today that Erica Spencer, 37, of Louisville, Kentucky, was sentenced this week by Senior District Judge Thomas B. Russell to 48 months in prison, to be followed by 3 years of supervised release, and ordered to pay $94,159 in restitution.
On November 7, 2014, Spencer pled guilty to all counts of a 31-count second superseding indictment filed on October 22, 2014. She was charged with theft of public money, unauthorized use of access devices, wire fraud, and aggravated identity theft. The original indictment in this case was filed on December 18, 2013.
From June 2011 through June 2012, Spencer used the identities, including names, dates of birth, and social security numbers, of several individuals to file fraudulent federal income tax returns in their names and to receive fraudulent federal income tax refunds. Further, Spencer received the fraudulent federal tax refunds in bank accounts she controlled.
This case was prosecuted by Assistant United States Attorney Bryan R. Calhoun of the Western District of Kentucky and was investigated by the Internal Revenue Service-Criminal Investigation.
Lorain man indicted for child pornographyRead the Press Release
James J. Paterson, 49, of Lorain, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that from on or about September 10, 2010, through on or about November 17, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Paterson knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on March 30, 2014, Paterson possessed two computers that contained child pornography.
If convcited, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Litchfield Resident Pleads Guilty to Multiple Fraud ConspiraciesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that RYAN GEDDES, 43, of Litchfield, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to multiple conspiracies involving a series of real estate transactions intended to shield assets from creditors.
According to court documents and statements made in court, GEDDES had accrued a series of debts as of late 2005, and was the subject of various lawsuits and collection efforts for the next several years. A bank fraud conspiracy commenced in November 2005 when GEDDES sold a lakefront home located at 27 Palmer Road in Morris to Thomas Provenzano. Lacking the funds to qualify for the $923,000 mortgage, Provenzano nonetheless obtained the loan based on an application that falsely listed his income as $20,000 per month, or $240,000 annually, and falsely listed his employment as the Operations Manager for one of GEDDES’s construction companies. Provenzano was not employed at all by GEDDES. The loan application also listed GEDDES’s company as having verified Provenzano’s employment. In November 2006, Provenzano refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior one, falsely listed Provenzano as employed by GEDDES’s construction company, and falsely listed his monthly income as $28,000, or $336,000 annually. The application again listed GEDDES’s company as having verified Provenzano’s employment. The loan is now in default, and the 27 Palmer Road property is in foreclosure.
The first of two mail and wire fraud conspiracies commenced in December 2009 and January 2010, in a series of discussions among GEDDES, Provenzano, and others about how to defraud a title insurance company. The discussions focused on conducting a real property transfer based on a deliberately defective title search, in which liens against the property are omitted, and title insurance is obtained based on the defective title search report. Later, a fraudulent claim is lodged against the title insurer. The conspirators decided to attempt the scheme on a property controlled by GEDDES, located at 66 Donahue Road Extension in Litchfield. After Provenzano assisted in a title search, GEDDES personally reviewed the report and crossed off several liens to be omitted from the title insurance application. In March 2010 GEDDES arranged a straw transfer of the property to another individual, while continuing to reside in and pay the mortgage and expenses on the property. Title insurance was issued on the property, with five liens, totaling about $990,000, deliberately omitted from the title search report.
The second of two mail and wire fraud conspiracies commenced in May 2009 when GEDDES arranged to transfer another property of his, located in Old Forge, N.Y., to Dustin Whitten. GEDDES continued to use the property and pay the mortgage and maintenance expenses. In March 2011, GEDDES and Whitten arranged to obtain a home insurance policy on the New York property in Whitten’s name. On July 4, 2011, after a bankruptcy court meeting about seeking to compensate GEDDES’s creditors, the New York property was destroyed in a fire. In September 2011, Whitten swore out an insurance claim on the property, representing himself as the owner and seeking compensation in the respective amounts of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire. The claim was eventually denied by the insurance company. In pleading guilty, GEDDES admitted that the purpose of the scheme was to shield the insurance proceeds from his creditors.
GEDDES pleaded guilty to one count of conspiracy to commit bank fraud and two counts of conspiracy to commit mail and wire fraud. Judge Arterton scheduled sentencing for July 21, 2015, at which time GEDDES faces maximum term of imprisonment of 70 years and a fine of up to $1.5 million.
Provenzano and Whitten previously pleaded guilty. On December 1, 2014, Provenzano was sentenced to 18 month of imprisonment. Whitten awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.
Leader and Top Enforcer of Criminal Gang Convicted of Racketeering and MurderRead the Press Release
Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Damion Hardy, also known as “World,” and Aaron Granton, also known as “E-Bay,” on charges of racketeering, including six murders, narcotics trafficking, kidnaping, and robbery as predicate racketeering acts, and related offenses. Granton was also convicted of his participation in a murder-for-hire. When sentenced by United States District Judge Frederic Block, each defendant faces a mandatory sentence of life imprisonment on the most serious charge.
The verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Raymond R. Parmer Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and William J. Bratton, Commissioner, New York City Police Department.
“Today’s verdict is the culmination of more than a decade of work by prosecutors, special agents, and detectives to dismantle the Cash Money Brothers gang and to hold Damion Hardy and Aaron Granton accountable for their heinous crimes. Hardy and Granton terrorized parts of Brooklyn in the 1990s and early 2000s, and they now face mandatory sentences of life imprisonment,” stated Acting United States Attorney Currie. “I would like to thank our partners at the FBI, HSI, and the New York City Police Department for their hard work and years of dedication to this important case.”
“The process of eradicating gangs and the violence they bring to our communities remains a top priority for the FBI. Today’s convictions are a significant step, but in no way do they mark the end of our commitment to protect the welfare of those who live in neighborhoods plagued by crime,” stated FBI Assistant Director-in-Charge Rodriguez.
“Drug traffickers destroy lives and ruin communities. Today’s guilty verdicts should leave no doubt about our shared commitment to attack and dismantle drug traffickers who pose a threat to our communities,” HSI New York Special Agent-in-Charge Parmer. “Working alongside our law enforcement partners, HSI will continue to use its unique authorities to ensure criminals are held accountable and brought to justice.”
“We applaud this guilty verdict which acknowledges the violent acts perpetrated by notorious gang members Damion Hardy and Aaron Granton. I want to thank our law enforcement partners for their dedication and tireless efforts which resulted in these criminals being brought to justice,” stated NYPD Commissioner Bratton.
From 1991 until August 2004, Hardy was the leader of a criminal enterprise known as the “Cash Money Brothers” (CMB), based in the Lafayette Gardens houses in Brooklyn, New York (Lafayette Gardens). Granton was a member of CMB and one of its top enforcers. From the time the crack-cocaine epidemic began in the late 1980s, Lafayette Gardens was a central and lucrative hub for the distribution of cocaine base. At that time, the young men who would later form CMB acted as low-level street dealers under the direction of the senior drug dealers who controlled Lafayette Gardens. In or around 1991, after CMB was formed under the leadership of the defendant Hardy and his brother, Myron Hardy, also known as “Wise,” the CMB ousted the senior dealers and seized control of the Lafayette Gardens crack trade for themselves.
The CMB wrested and maintained control of Lafayette Gardens through acts of violence that included near-daily gun battles with rival organizations and numerous murders. In 1998, Hardy ordered a junior gang member to shoot and kill Michael Colon because Hardy believed that Colon had disrespected and humiliated him at a roller skating rink. In 1999, while Hardy was incarcerated, his brother Myron Hardy was shot and killed in Lafayette Gardens. Hardy and other CMB members believed that a rival drug dealer named Ivery “Peanut” Davis and other members of Davis’s drug organization were responsible for the murder. Immediately after Myron Hardy was shot, while he still lay wounded in the hospital, Damion Hardy, from prison, began directing his gang members to exact revenge. Hardy ordered the CMB to murder Darryl Baum, James Hamilton, Tyrone Baum, and Ivery Davis, all four of whom were ultimately murdered by CMB members. Davis’s killing also resulted in the death of an innocent bystander, Johan Camitz. At Hardy’s direction, Granton acted as the triggerman in the murders of Darryl Baum, Hamilton, and Davis.
In addition, Granton also participated in the 2001 contract murder of Troy Singleton. Through his work with CMB, Granton had earned a reputation as an effective and ruthless killer. He was recruited by a separate gang, known as the “Supreme Team,” to kill Singleton, who was then shot multiple times in the back and head as he left a nightclub in Queens, New York.
The government’s case is being prosecuted jointly by the Office’s International Narcotics & Money Laundering Section and Organized Crime & Gangs Section. Assistant United States Attorneys Matthew Amatruda, Soumya Dayananda, and Rena T. Paul are handling the prosecution.
The Defendants:
DAMION HARDY
Age: 40
Brooklyn, NY
AARON GRANTON
Age: 40
Brooklyn, NY
E.D.N.Y. Docket No. 04-CR-0706
Justice Department, EPA and State of California Require Lehigh Cement to Cut Toxic Discharges to San Francisco BayRead the Press Release
Today, the Department of Justice, the Environmental Protection Agency (EPA) and the state of California announced a settlement requiring the Lehigh cement plant near Cupertino, California, to reduce toxic discharges of selenium and other metals to Permanente Creek, a tributary of San Francisco Bay. The company, owned by Hanson Permanente Cement Inc. and operated by Lehigh Southwest Cement Co., will spend more than $5 million to install wastewater treatment and make other facility improvements to prevent future violations. The company will also pay $2.55 million in civil penalties to settle the case.
The settlement addresses Lehigh’s and Hanson’s violations of the Clean Water Act. The Cupertino facility routinely discharged excessive selenium into Permanente Creek in violation of Lehigh’s permits from at least 2009 to 2014. The plant’s discharges also routinely exceeded standards for total suspended solids, total dissolved solids, turbidity, and pH and in some cases exceeded standards for mercury, hexavalent chromium, nickel and thallium.
“Today’s Clean Water Act settlement, done jointly with the state of California, will remove selenium and other toxic substances from Permanente Creek and help protect the fragile and life-sustaining ecosystem of San Francisco Bay,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “By bringing this older facility up to contemporary standards, and by pushing it to introduce cutting-edge treatment technology, the Department of Justice and our partners are helping create a level playing field, where all industry members are held to the same standards and no company can gain an economic advantage over its competitors by shortchanging environmental compliance.”
“EPA and California are working together to enforce the Clean Water Act and help restore San Francisco Bay,” said Regional Administrator Jared Blumenfeld for EPA for the Pacific Southwest. “Every action we take to remove selenium and other toxic metals improves water quality and leads to a healthier and more resilient Bay.”
“Lehigh Cement discharged millions of gallons of industrial wastewater that flowed into the San Francisco Bay,” said Attorney General Kamala D. Harris for California. “This settlement holds Lehigh Cement accountable for its actions and will prevent future toxic discharges. I thank our state and federal partners for their work to protect this precious resource and consumers from the serious environmental and health damage caused by water pollution.”
“This settlement will result in important reductions in pollutant discharges, in facility upgrades, and in improvements to help protect and restore water quality in Permanente Creek and San Francisco Bay,” said Executive Officer Bruce Wolfe for the San Francisco Bay Regional Water Board. “We will continue our multiagency efforts to regulate all water quality aspects of this facility, including installation of the full-scale wastewater treatment system, restoration of stream habitat and control of stormwater runoff.”
Since at least 2009 to 2014, the limestone mine and cement plant discharged millions of gallons daily of quarry process water and stormwater polluted with thousands of pounds of sediment and hundreds of pounds of selenium and other toxic metals, to Permanente Creek, in violation of the federal Clean Water Act. The settlement requires Lehigh to construct an advanced wastewater treatment system to significantly reduce its selenium and other metals discharges. Lehigh already installed an interim treatment system and a permanent system will be completed by 2017. Lehigh will make other facility improvements to remove sediment from its stormwater runoff, spending more than $5 million overall to come into compliance.
Selenium is a naturally occurring element in limestone and other rock formations. When discharged at high concentrations to waterways, selenium becomes toxic to fish and other aquatic life and to birds and other animals that consume selenium-contaminated aquatic organisms. Permanente Creek, to which the Lehigh cement facility discharges, is listed as “impaired” for selenium under the Clean Water Act. Permanente Creek provides important habitat for red-legged frogs, a species listed as threatened under the Endangered Species Act.
The proposed Clean Water Act settlement, subject to a 30-day public comment period and court approval, is available at: www.justice.gov/enrd/Consent_Decrees.html
For more information about the investigation and settlement, including photos, visit: http://www.epa.gov/region9/mediacenter/lehigh/
Learn more about EPA’s work to restore San Francisco Bay: www2.epa.gov/sfbay-delta/
More information about the San Francisco Bay Regional Water Board’s permits and enforcement actions is available at: www.waterboards.ca.gov/sanfranciscobay/water_issues/hot_topics/lehigh.shtml
Johnson County Man Sentenced to Federal Prison on Methamphetamine ChargesRead the Press Release
A Johnson County man was sentenced today to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Robert D. Brewer, 49, of Vienna, Illinois, was sentenced to 78 months in prison, to be followed by three years of supervised release, and fined $300. Brewer had previously pleaded guilty to six counts in a federal indictment. Counts 2, 3, 6, and 7 charged Brewer with possession of pseudoephedrine knowing it would be used to manufacture a controlled substance – methamphetamine on the following dates: April 29, 2013, April 20, 2013, April 10, 2013, and February 20, 2013. Counts 4 and 5 charged Brewer with attempted possession of pseudoephedrine knowing it would be used to manufacture a controlled substance – methamphetamine on the following dates: April 18, 2013, and April 16, 2013.
The investigation in this case was conducted by the Illinois State Police and the United States Fish and Wildlife Service.
The case is being handled by Assistant United States Attorney George Norwood.
Indiana Woman Charged with Involuntary ManslaughterRead the Press Release
Today, the filing of an Information charging Alicia Keir, 24, of Demotte, Indiana, with involuntary manslaughter for the death of her newborn child by failing to summon medical attention, announced U.S. Attorney David Capp for the Northern District of Indiana.
On October 10, 2011, Keir was aboard a cruise ship on the high seas, gave birth alone and failed to obtain any medical attention. The child died from exposure and lack of care. Jurisdiction for acts occurring upon the high seas can be in the district where a defendant resides. In conjunction with the information, Keir has filed a petition to enter a guilty plea to the involuntary manslaughter charge.
The U.S. Attorney’s Office emphasized that an information is merely an allegation and not proof of guilt. All persons charged are presumed innocent until and unless proven guilty in court.
This case was the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by the Assistant U.S. Attorneys Randall S. Stewart and Gary T. Bell.
Houston Man Accused of Stealing from UK-based CompanyRead the Press Release
HOUSTON - Federal charges have been filed against Avery Lamarr Ayers, 48, of Houston, alleging he committed wire fraud by deceiving a foreign company into sending him more than $350,000 to which he was entitled, United States Attorney Kenneth Magidson announced today.
The indictment was returned under seal yesterday and unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen Wm. Smith tomorrow at 10:00 a.m.
According to the allegations in the indictment, from approximately Nov. 21, 2014, through March 9, 2015, Ayers deceived a United Kingdom based company - Impact Oil and Gas - into sending him $357,000 for a purported contractual agreement. Ayers allegedly reported to be a representative of Minas & Hidrocarbonetos-GB SARL, the legitimate company that was owed the funds from Impact Oil and Gas. The indictment alleges Ayers deceived the company and caused them to wire the $357,000 to Ayers’ Comerica Bank account here in Houston.
If convicted, he faces up to 20 years in prison and a possible $250,000 maximum fine.
The investigation leading up to the arrest was conducted by Homeland Security Investigations - Asset Identification and Removal Group. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hospital Authority of Irwin County Resolves False Claims Act Investigation for $520,000Read the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, and Samuel S. Olens, Attorney General for the State of Georgia, announced today they have reached a civil settlement with the Hospital Authority of Irwin County (ICH), Dr. Mahendra Amin, Dr. Ashfaq Saiyed, Dr. Romana Bairan, Dr. Arturo Ruanto, Dr. Concordio Ursal, Dr. Drew Howard, Dr. Steve Anderson, Dr. Robert Reese, and Dr. Marshall Tanner. The Defendants agreed to pay $520,000 to resolve allegations that they caused false claims to be submitted to Medicare and Medicaid.
The settlement marks the end of an investigation into alleged violations of the Federal Anti-Kickback Statute, the Federal Stark Law, and related Georgia Medicaid policies. Allegations of the suit concern the amount of compensation paid by ICH to Dr. Amin, ICH’s leases with the co-defendants, and the supervision of certain diagnostic imaging services at ICH. This investigation began with a lawsuit filed by Connie Brogdon and Summer Holland under the whistleblower provisions of the False Claims Act and the Georgia False Medicaid Claims Act, which allow private citizens to bring civil actions on behalf of the Government and share in any recovery obtained. Ms. Brogdon and Ms. Holland will receive a share of the settlement payment pursuant to the whistleblower provisions.
Defendants fully cooperated in the investigation after which the parties agreed to resolve the allegations made by the United States and the State of Georgia. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
“One important mission of this office’s Civil Division is to ensure that when taxpayer money is paid out under federal health care programs, it is paid out in a manner that complies with federal healthcare laws,” said U.S. Attorney Michael J. Moore. “Whistleblower lawsuits, like this case, are an increasingly important way in which our office is able to protect the integrity of the many federal programs that the citizens of Middle Georgia rely on each and every day.”
Attorney General Sam Olens stated, “My office takes seriously our obligation to ensure that providers comply with all applicable state laws, regulations, and policies when receiving state taxpayer funds for services they provide as part of the Medicaid program. This case reflects our continued commitment to investigating allegations of Medicaid fraud and abuse.”
The case was investigated by Special Agent Mark Creamer of the Department of Health & Human Services, Office of Inspector General; Investigator Enedelia Bostrup of the United States Attorney’s Office for the Middle District of Georgia; and Investigator Tonia Medlin, Nurse Investigator Judy Cooper, Investigative Auditor Anita Reddick, and Analyst Carmen Staley, all of the Georgia Medicaid Fraud Control Unit, a division of the Office of the Attorney General of Georgia.
The civil settlement was reached by Assistant United States Attorney Charles W. Byrd, Assistant United States Attorney Todd Swanson, and Assistant Attorney General Elizabeth White.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Heroin Dealer Sentenced to 156 Months in Federal PrisonRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jacob Alan Seiger, age 24, of Yakima, Washington, was sentenced today for distribution of heroin. United States District Court Judge Thomas O. Rice sentenced Seiger to a 156 month term of imprisonment, to be followed by a three year term of court supervision upon release from Federal prison.
According to information presented during the court proceedings, Seiger sold heroin to multiple individuals during 2013 and early 2014. In February 2014, an individual obtained heroin from Seiger and shortly thereafter died of a heroin overdose. In May, 2014, Seiger was charged by indictment with conspiracy to distribute heroin, three counts of distribution of heroin, and one count of distribution of heroin resulting in death, among other offenses. On November 12, 2014, Seiger pled guilty to distribution of heroin.
Michael C. Ormsby said, "The United States Attorney’s Office for the Eastern District of Washington is committed to protecting the community from the harm caused by heroin, one of the most dangerous and addictive Schedule I controlled substances. In recognition of the insidious effects that heroin and other opioids cause and the pressing need to address this growing problem, my office is co-sponsoring a multi-disciplinary Opioid Summit on May 5th in Ellensburg, Washington."
This case was investigated by the Drug Enforcement Administration with the assistance of the Yakima Police Department. The case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Garland Man Sentenced to 168 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Mark Stamps, of Garland, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 168 months in federal prison on a child pornography conviction, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Stamps, 54, pleaded guilty in May 2014 to a felony information charging one count of transporting and shipping child pornography. He has been in custody since his arrest in April 2014.
The investigation began when a detective with the Sherman, Texas, Police Department, identified a computer that appeared to be sharing child pornography. In fact, the detective was able to obtain a list from the shared folder that contained at least 90 files of known or suspected child pornography.
Further investigation revealed that the computer belonged to Stamps, and based on this information, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Stamps’ residence on April 10, 2014. Special agents located child pornography videos on an external hard drive.
Stamps admitted that at the time of the search, he knowingly had more than 2500 child pornography images and videos on his computer and other media. Some of those images and videos depicted sadistic and/or violent content, and some of the files depicted infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI and the Sherman Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Four Men Indicted for Identity Theft, Counterfeit Check ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four men have been indicted by a federal grand jury for their roles in a conspiracy to steal identity information and use the stolen information to create and cash more than $70,000 in counterfeit checks.
Tyler Sutton, 53, Gary K. Keesler, 35, and Chad M. Mills, 26, all of Kansas City, Mo., and Christopher Hite, 32, of Windsor, Mo., were charged in a 10-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, April 28, 2015.
The federal indictment alleges that Sutton, Keesler, Mills and Hite participated in the conspiracy beginning in October 2013.
According to the indictment, Sutton unlawfully obtained identity and account information belonging to other persons and businesses. Sutton allegedly stole these items from a business and from the mail and allegedly paid addict co-conspirators in cash and/or drugs for checks, identification information, credit card numbers, and other information that could be used to create counterfeit checks and identifications. Sutton and co-conspirators used the stolen documents to create counterfeit identifications and checks, the indictment says, which they cashed at retail stores and financial institutions
Sutton was employed to be a property manager. He was a tenant at a residence in the 400 block of Gladstone Boulevard in Kansas City. According to the indictment, however, he only paid rent for one month and was evicted in October 2014. Sutton used the Gladstone Boulevard residence to conduct his illegal business, the indictment says, by operating it as a flop house where he offered cash and/or drugs to drug addicts who brought him stolen mail, identities, addresses, credit card numbers, and bank account information that could be used to create counterfeit identifications and checks. Sutton often allowed the addicts to stay at the Gladstone Boulevard residence.
Sutton did not usually create counterfeit identifications and checks himself, according to the indictment, nor did he personally present counterfeit identifications and checks for payment. Rather, he allegedly instructed others in the making and presenting of counterfeit identifications and checks, and shared the illegal proceeds with his co-conspirators. In this manner, the indictment says, Sutton attempted to insulate himself from liability.
In addition to the conspiracy, Sutton, Keeler and Hite are charged together in two counts of bank fraud and in two counts of aggravated identity theft. Sutton and Mills are charged together in one count of possessing counterfeit checks. Sutton is also charged with two additional counts of possessing counterfeit checks and two counts of possessing stolen mail.
The indictment also contains a forfeiture count, which would require the defendants to forfeit to the government any proceeds obtained through the alleged violations, including a money judgment of $70,100.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Four KC Residents Indicted for Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four Kansas City, Mo., residents have been indicted for their roles in an arson and insurance fraud conspiracy.
Tina L. Shonk, 34, Roy Thieman, 30, Joseph Levi Little, 40, and Tyler Sutton, 53, all of Kansas City, were charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, April 28, 2015.
The federal indictment alleges that Shonk led the arson and insurance fraud conspiracy in 2014. She allegedly obtained renter’s insurance on a house she rented, burned the house with the help of co-conspirators, and then made false claims on the insured property resulting in a total loss to insurance companies of $235,464.
According to the indictment, Shonk rented a residence in the 3500 block of Garfield in Kansas City, Mo., for about three years. In 2014, the indictment says, Shonk obtained renter’s insurance in the amount of $60,000, much more than the value of her personal property. At the time Shonk obtained renter’s insurance, she owed approximately $7,929 in back due rent, and had the gas shut off due to non-payment.
Shonk and her co-conspirators allegedly moved all of her personal property of any value to a storage unit. They allegedly moved damaged and broken electronic equipment and appliances into the residence so that it would appear that valuable appliances were destroyed. In April 2014, according to the indictment, Shonk owed $10,356 in back due rent and eviction proceedings had been initiated by her landlord.
Shonk, Thieman and Little allegedly set fire to the residence on April 4, 2014, by covering a space heater with a blanket and setting fire to the blanket. The Kansas City Fire Department extinguished the fire but the house was a total loss.
After the fire, Shonk made false claims to the insurance company as to the value of her property, that her property was in the house at the time of the fire, and also that she had no knowledge of, or involvement in, the fire. She received a $57,364 check from the insurance company, which was deposited into a bank account controlled by Sutton. Shonk allegedly paid $2,500 to Thieman and $4,000 to Little for their criminal assistance.
In May 2014, Shonk and Thieman moved into a house in the 3800 block of Pittman Road in Kansas City, Mo., a property managed by Sutton. Co-conspirators allegedly discussed repeating the arson insurance fraud scheme at the Pittman Road house. According to the indictment, Thieman wrote a letter to Shonk outlining plans to insure their personal property and then burn the house, stating in part, “there can be no evidence, nor signs of foul play, or accelerant.”
In addition to the conspiracy, Shonk, Thieman and Little are charged together in one count of arson. Shonk and Sutton are charged together in two counts of money laundering related to conducting financial transactions which involved the proceeds of unlawful activity. Shonk is also charged with one count of mail fraud.
The indictment also contains a forfeiture allegation, which would require all of the defendants to forfeit to the government any proceeds obtained as the result of the alleged violations, including $62,364.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Forty Four Defendants Charged in State and Federal CourtRead the Press Release
United States Attorney James L. Santelle announced today that five indictments were unsealed in federal court charging 24 defendants with conspiracy to distribute controlled substances, including heroin, crack cocaine, and cocaine.
Patrick L. YOUNG, age 40
Larry J. GARRETT, age 33
Charlie B. NELSON, age 40
Dai-Cheri RASHADA, age 32
Lamont M DALLAS, age 30
Sebastian O. KING, age 39
Terrance M. JONES, age 35
Marvin C SEAY, age 36
Joel WRIGHT, age 39
Pierre J TYSON, age 42
Bryan I. THOMAS, age 26
Darius L. ALLEN, age 32
Henry T. WADE, age 33
Bernard L. JEDKINS, age 29
Tony GILMORE, age 45
Dionia SCOTT, age 36
Marcus BUTLER, age 31
Shawn TUCKER, age 34
Jondelyn JACKSON, age 26
Myles WASHINGTON, age 26
Lloyd RANDLE, Jr., age 35
Edward TANNER, Jr., age 34
Larry ASHLEY, Jr., age 26
Jerrod PATTERSON, age 28
All the defendants except Randle, Tanner, Ashley, and Patterson are charged with offenses punishable by up to forty years in prison, with a mandatory minimum sentence of five years in prison. Randle, Tanner, Ashley, and Patterson face up to life imprisonment if convicted. Various defendants are also charged with substantive drug distribution counts. The majority of the suspects arrested were members of the Gangster Disciple Street Gang and all of them operated in Kenosha and Racine Counties.
Yesterday, law enforcement officers arrested twelve of these defendants. Five were already in custody. Seven are still at large, including: Larry Garrett, Lamont Dallas,Marcus Butler, Bernard Jedkins, Jerrod Patterson, Lloyd Randle, and Jondelyn Jackson.
In addition, 12 defendants were charged by the Kenosha County District Attorney’s Office with narcotics offenses. Law enforcement arrested four of those defendants; eight are still at large. Law enforcement also arrested eight other individuals on outstanding state warrants or related narcotics charges.
In addition to yesterday’s arrests, law enforcement executed 12 federal search warrants in the Kenosha and Racine areas targeting members of this organization. Four state search warrants were also obtained and executed. Law enforcement recovered approximately 800 grams of crack cocaine, 676 grams of heroin, 227 marijuana plants, 120 pounds of marijuana, and 3.5 grams of hash oil. In addition, there were a total of 25 firearms seized, a CS grenade, and a police scanner.
In making today’s announcement about the federal charges, property searches and seizures, and defendant arrests, United States Attorney Santelle stated: “Following a targeted, focused, and resource-intensive investigation of a violent street gang operating in the Kenosha and Racine areas, most of its many members are now apprehended and brought to justice—ending an extensive criminal operation that compromised the safety and the well-being of our community. The charges in the indictments against them describe a conspiracy to possess and distribute significant amounts of heroin, cocaine powder, and crack cocaine—along with their illegal possession of firearms that underscores the destructive nature of their criminal conduct.” Santelle commended all of the federal, state, and local law enforcement officers and units involved in the investigation. “Through a highly integrated and thoroughly collaborative law enforcement effort, these investigators and agents have made our streets and neighborhoods more secure, and the prosecutions—undertaken by my office in partnership with that of the Kenosha County District Attorney will accomplish the end of this long-time criminal enterprise.”
Kenosha County District Attorney Robert Zapf stated: “I have been around law enforcement and prosecution for the past 40 years and I can honestly say that this operation was one of the most successful (in terms of arrests) and best coordinated federal, state, and local drug investigations and takedowns that I can remember.”
“‘This organization, nicknamed ‘The Firm,’ has been entrenched in the Kenosha area for years dealing heroin and other drugs; however, that reign ended yesterday with charges against more than 40 drug traffickers, thanks to the outstanding and remarkable cooperation among the DEA and its Wisconsin law enforcement partners,” said Dennis A. Wichern, Special Agent in Charge of the U.S. Drug Enforcement Administration Chicago Field Division, which includes Wisconsin. Wichern also praised the dedication and teamwork of the agents, officers and prosecutors who worked tirelessly to dismantle this drug trafficking organization.
Chief John Morrissey of the Kenosha Police Department stated “I know that sometimes citizens get frustrated and think that we are not working drug investigations to the level they need to be. However, they are a priority for our department and our city. This type of operation takes a lot of work and cooperation between many agencies. We understand that at all levels of law enforcement we are dealing with the same issues, same problems and same people. We appreciate the assistance from all the state and federal partners. This operation is a worthy example of everyone working together and combining our resources to deal with these issues.”
“The multiple arrests in Kenosha are another prime example of the importance of our local and federal law enforcement partnerships,” said Robert J. Shields Jr., special agent in charge, FBI Milwaukee. “I commend the efforts of our Southeast Wisconsin Regional Gang Task Force, they have been very effective in getting violent offenders off the streets and into custody.”
Kenosha Sheriff David Beth stated that he is “proud that the Kenosha Sheriff’s Department’s Drug Operations Group (KDOG) partnered with the other law enforcement agencies in the successful and safe apprehension of more than 40 drug traffickers. Today the citizens of Kenosha County have a safer community thanks to the excellent work of all these fine law enforcement officers. The Kenosha Sheriff’s Department stands ready to combat illegal drug activity with all of our resources.”
The investigating agencies included the U.S. Department of Justice, Drug Enforcement Administration and Federal Bureau of Investigation, Kenosha Police Department, Kenosha County Sheriff’s Office, Oak Creek Police Department, Racine Police Department, the Racine County Sheriff’s Office and the Ozaukee County Sheriff’s Office. The United States Marshal Service and the Wisconsin Department of Justice, Division of Criminal Investigation, also assisted with the arrests and search warrants.
These cases are being prosecuted federally by Assistant U.S. Attorneys Mario Gonzales and Margaret Honrath.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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Former Navy Officer Sentenced for Attempting to Entice A MinorRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton sentenced William Daniel Thompson (67) today to 16 years in federal prison for attempting to persuade, induce, and entice two minors to engage in illicit sexual conduct. He pleaded guilty on December 24, 2014.
According to court documents, on September 10, 2014, an FBI agent responded to an advertisement in the “all personals” section of Craigslist, which made reference to a single white male seeking a “family dynamic.” Thompson communicated online with the undercover agent, who was posing as the father of a 10-year-old girl and a 13-year-old boy. During the online conversations, Thompson told the agent that he wanted to engage in sexual conduct with the minors.
On September 11, 2014, Thompson traveled from his home in Manatee County to Altamonte Springs, where he intended to meet the father for the purpose of engaging in illicit sexual conduct. He was subsequently arrested. During an interview with law enforcement, Thompson admitted that he had traveled for the purpose of meeting the father of two children with whom he had been e-mailing since September 10, 2014, and to explore the possibility of having sex with a 10-year-old girl.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
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 (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.
Final Defendant Convicted After Five Day Trial of Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – A federal jury today convicted Nikolay Zakharyan, age 24, of Owings Mills, Maryland, for conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Nikolay’s father, Artur Zakharyan, age 54, of Reisterstown, pleaded guilty before trial to his participation in the conspiracy.
The conviction and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to their guilty pleas, Elmar Rakhamimov was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov (no relation) and Artur Zakharyan to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York. Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.
According to court documents and testimony at the five day trial, Artur Zakharyan recruited his son, Nikolay Zakharyan, to participate in the scheme. Nikolay Zakharyan assisted in the unloading, accounting, bagging, moving and loading of the master cases of contraband cigarettes. Nikolay Zakharyan traveled to the home of Elmar Rakhamimov to assist during no less than 10 deliveries of contraband cigarettes. Nikolay Zakharyan unloaded the cases of cigarettes from the truck into Elmar Rakhamimov’s garage and counted the number and types of cigarettes delivered to ensure that the delivery was complete. Nikolay Zakharyan also traveled to Elmar Rakhamimov’s home in the days following the delivery of the cigarettes to load them into the vehicle used to transport the contraband cigarettes to Brooklyn, New York.
Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew.
The first transaction occurred at Chesapeake Monuments, a business owned by Ilgar Rakhamimov, on December 11, 2011, when Elmar Rakhamimov and Ilgar Rakhamimov purchased 20 master cases of contraband cigarettes in exchange for $18,000 in cash. After the first transaction, the contraband cigarettes were delivered to and stored at the home of Elmar Rakhamimov in Owings Mills. Prior to each transaction, Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan discussed the transaction on the phone, and frequently met at Elmar Rakhamimov’s home to discuss the purchase and compile and count the money for the transaction.
The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded over the course of the conspiracy was more than $2.5 million.
Following many of the deliveries, the conspirators met at Elmar Rakhamimov’s residence to discuss moving the cigarettes to Brooklyn, New York where the cigarettes were sold at a profit to individuals in New York, who further distributed the contraband cigarettes. The cigarettes were often transported from Maryland to New York by Adam Azerman, who delivered them to Shamil Novakhov, a relative of Ilgar Rakhamimov. Ilgar Rakhamimov brought Novakhov into the conspiracy, and was the primary contact with Novakov throughout the conspiracy. Novakhov’s nephew, Ruslan Ykiew, also would travel from New York to Maryland to obtain contraband cigarettes and transport them to his uncle in New York. Ykiew initially stored the cigarettes in a restaurant he owned. At Novakhov’s request, in 2012 Ykiew rented a warehouse for the storage of the contraband cigarettes. Ilgar Rakhamimov and his co-conspirators paid $30 for each carton of contraband cigarettes, and sold them to buyers in New York for approximately $41 - $45 per carton.
Yelizarov and Elmar Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions.
As part of his plea agreement, Artur Zakharyan is required to forfeit $50,000 believed to be proceeds of the offense, $11,947 and a 1 troy ounce gold bar seized from Zakharyan’s belongings on December 17, 2013, and four troy ounce gold bars and a gold coin seized from his home on December 11, 2013.
Artur and Nikolay Zakharyan each face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Artur Zakharyan for July 9, 2015, at 1:00 p.m. and for Nikolay Zakharyan on July 29, 2015 at 10:00 a.m.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 44, of Reisterstown, Maryland; Ilgar Rakhamimov, age 41, Zarakh Yelizarov, age 52, and Adam Azerman, age 60, all of Pikesville, Maryland; and Shamil Novakhov, age 59, and Ruslan Ykiew, age 40, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Federal Indictment Charges Letter Carrier for Dumping U.S. MailRead the Press Release
CHARLOTTE, N.C. – A federal criminal indictment charging Marlin D. Haley, 22, of Charlotte, with two counts of destroying and delaying U.S. mail was returned by a federal grand jury on Thursday, April 23, 2015, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Haley was arrested this morning and had his initial appearance before U.S. Magistrate Judge David S. Cayer.
Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General joins Acting U.S. Attorney Rose in making today’s announcement.
According to the criminal indictment and court proceedings, on two separate occasions on March 22, 2015 and April 6, 2015, in Mecklenburg County, Haley unlawfully did and attempted to secret, destroy, delay and open U.S. Mail entrusted to him for delivery. The indictment alleges that Haley dumped the mail instead of delivering it to the addressed recipients.
Haley faces a maximum penalty of five years in prison and a $250,000 for each count.
The charges contained in these indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by USPS, Office of the Inspector General. Assistant U.S. Attorney Kenneth Smith is prosecuting the case.
Federal Grand Jury in Florence, South Carolina, Returns IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictment(s) against the following:
Illegal Re-Entry Into U.S. After Being Deported
Jose Matias Benitez, age 43, of Horry County, South Carolina was charged in a 1-count indictment. Jose Matias Benitez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a). The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000. The case was investigated by deportation officers of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Illegal Re-Entry Into U.S. After Being Deported
Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez, age 23, of Horry County, South Carolina was charged in a 1-count indictment. Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a). The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000. The case was investigated by deportation officers of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Identity Theft
Lauren E. Blackwell, age 28, of Bishopville, South Carolina was charged in a 2-count indictment. Lauren E. Blackwell was charged with identity theft, a violation of Title 18, U. S. C. §1028(a)(7), and unauthorized use of a credit card, a violation of Title 18, U. S. C. §1029(a)(2). The maximum penalty Blackwell could receive is 15 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the U.S. Postal Inspection Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Manufacturing and Possessing Counterfeit Money
Donald Gene McIntyre, age 39, of Myrtle Beach, South Carolina was charged in a 2-count indictment. Donald Gene McIntyre was charged with manufacturing counterfeit money, a violation of Title 18, U. S. C. §471, and possession of counterfeit money, a violation of Title 18, U. S. C. §472. The maximum penalty McIntyre could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United State Secret Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Embezzling Social Security Funds
Lucy Wallace, age 52, of Kingtree, South Carolina was charged in a 1-count indictment. Lucy Wallace was charged with embezzling funds from Social Security Administration, a violation of Title 18, U. S. C. §471. The maximum penalty Wallace could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.New York Man Indicted for Trafficking Heroin
Dany Alexis Toro-Munera, age 29, was charged in a 1-count indictment for Possession with Intent to Distribute Heroin, a violation of Title 21, U. S. C. §841(a)(1). The maximum penalty Toro-Munera could receive is 40 years imprisonment and a maximum fine of $2,000,000. The case was investigated by the Florence County Sheriff's Office and the Drug Enforcement Administration Task Force and is assigned to Assistant United States Attorney Christopher D. Taylor of the Florence office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Eleven Defendants Indicted for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 11 defendants have been indicted for their roles in a conspiracy to distribute at least 10 kilograms of methamphetamine worth nearly $500,000.
Mike Kamal Ahmad, also known as “Viper Mike,” 39, Carey Michael Vannostran, 39, and Patrick Thomas Baker, 50, all of Kansas City, Mo.; Lori L. Justus, 51, Nicole Marie Bartram, 35, and Jono Dean Hamlin, 43, all of St. Joseph, Mo.; Scott Dewain Yount, 42, of Maryville, Mo.; Joseph Michael Tooley, 32, of Fordland, Mo.; and Matthew Lee Gusman, 31, Mike Andrews Lawson, Jr., 25, and Kayla Caroline Cornelison, 22, all of Red Oak, Iowa, were charged in an indictment returned under seal by a federal grand jury on April 15, 2015. That indictment was unsealed and made public following the arrests and initial court appearances of the defendants.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2010, to April 15, 2015.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government $494,200, which allegedly was received in exchange for the unlawful distribution of methamphetamine, based on a conservative average street price of $1,400 per ounce and the total conspiracy distribution of at least 10 kilograms. Ahmad would be required to forfeit to the government a 2001 Dodge Viper and a 2003 Hummer H2, both of which allegedly were used to facilitate the drug-trafficking conspiracy.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force and the Drug Enforcement Administration.
El Paso Man Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
In El Paso, 44–year-old Albert Hibbert was sentenced to 15 years in federal prison for receipt of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term handed down yesterday, U.S. District Judge Philip R, Martinez ordered that Hibbert pay a $1,000 fine, be placed on supervised release for a period of 20 years after completing his prison term and register as a sex offender.
According to court records, the HSI El Paso Cyber Crimes Group identified the defendant, who goes by the username “swelldad”, during an investigation involving suspected child pornography called Operation Protego. On April 3, 2014, Hibbert consented to a residential search by investigators. Evidence gathered during that search included the defendant’s laptop computer. A subsequent search of the computer revealed the presence of more than 400 images and 13 videos depicting the sexual exploitation of minors downloaded from the Internet.
On January 22, 2015, Hibbert pleaded guilty to one count of receipt of child pornography. He has remained in federal custody since his arrest on April 3, 2014.
“HSI is committed to protecting our children from individuals who exploit and prey on them,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “We will continue to work with our law enforcement partners and the U.S. attorney’s office to arrest and prosecute such individuals in our community.”
This case was investigated by Homeland Security Investigations together with the Texas Rangers. Assistant U.S. Attorney Robert Almonte prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Daniel Musa Sentenced to 51 Months in Prison for Using Withheld Employee Taxes for His Own BenefitRead the Press Release
United States Attorney Andrew M. Luger announced the sentence of DANIEL NOK MUSA, 56, to 51 months in prison for withholding taxes from his employees but failing to pay them to the Internal Revenue Service. The defendant was sentenced on April 22, 2015, before U.S. District Judge John R. Tunheim in Minneapolis, Minn.
According to his guilty plea and documents filed in court, between 2002 and October 31, 2009, MUSA owned and operated home health care businesses known generally as “Life Care.” His employees were personal care attendants. As the owner of this business, MUSA withheld income taxes and Social Security and Medicare taxes from his employees’ paychecks. However, beginning in 2002, MUSA did not pay the full amounts owed, and repeatedly paid little or nothing to the IRS. Beginning in March 2006 and for the 12 subsequent tax quarters, MUSA paid only a portion or none of the money withheld from his employees’ paychecks. During that period, MUSA deducted a total of $101,340 from his employees’ paychecks and kept $85,122 for his own personal use. In total, MUSA failed to pay $284,000 in employment taxes.
According to his guilty plea and documents filed in court, MUSA evaded paying taxes by, among other things, falsely telling revenue officers that he was shutting down his business, when in fact he only shifted his business into different shells. For example, in 2005, MUSA operated Life Care as a sole proprietorship called Life Care Home Health Care. When the IRS began trying to collect unpaid unemployment taxes, MUSA reconstituted Life Care as Life Care Home Health, LLC. In 2006, MUSA again changed the name of the entity to avoid taxes, this time calling it Life Care PCA, LLC. MUSA reconstituted the business between 2007 and 2013 under four additional names to avoid paying taxes.
According to his guilty plea and documents filed in court, MUSA spent the money he stole on an extravagant lifestyle. He bought multiple houses, luxury vehicles, and other extravagances. MUSA also spent a large amount of money at Mystic Lake Casino, losing between $1,000 and $2,000 per week. Between 2006 and 2011, MUSA was at Mystic Lake at least 462 times.
The investigation was conducted by the Internal Revenue Service-Criminal Investigations Division.
This case was prosecuted by Assistant United States Attorney Michael L. Cheever.
Defendant Information: DANIEL NOK MUSA, 56
Shakopee, Minn.
Convicted: • Failure to account for and pay over withheld taxes, 14 counts
Sentenced: • 51 months in prison
• 3 years supervised release
• $284,000 restitutionConvicted domestic violence offender sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Convicted domestic offender Zachary Burton Taylor, 22, of Stonewood, West Virginia, was sentenced today to 18 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Taylor was convicted in December 2012 of the misdemeanor offense of “Domestic Battery” in the Magistrate Court of Harrison County, West Virginia. As a result of the conviction, Taylor is prohibited from possessing a firearm. During a subsequent May 2014 arrest, Taylor was discovered in possession of a stolen .22 caliber pistol.
Taylor pled guilty in November 2014 to one count of “Prohibited Person in Possession of Firearm – Misdemeanor Crime of Domestic Violence,” following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Contract Postal Worker Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID HENRY, age 31, of Covington, was sentenced today for theft of mail.
According to court records, as a result of multiple complaints of missing mail from highway contract route No. 76 (“Route 76”) in Mandeville, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into Route 76 in an effort to determine the cause of the lost mail. On April 23, 2014, HENRY, admitted to taking three cards that he believed to have contained cash. HENRY also admitted to taking cash from the mail on three or four other occasions.
Today, U.S. District Court Judge Ivan L.R. Lemelle sentenced HENRY to three years probation and a $250.00 fine.
U.S. Attorney Polite praised the work of the U. S. Postal Inspection Service, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
Cleveland man faces drug and firearm chargesRead the Press Release
A federal grand jury returned a two-count indictment charging Tremaine D. Cowan, 24, of Cleveland, with possessing with intent to distribute crack cocaine and with being a felon in possession of firearms and ammunition, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on or about February 22, 2015, Cowan possessed with intent to distribute less than 28 grams of crack cocaine.
Count 2 of the indictment alleges that on or about February 22, 2015, Cowan possessed a Smith & Wesson, model 642, .38 caliber revolver; a Beretta, model 950BS, .22 caliber semi-auto pistol; and ammunition, after having been convicted of felonious assault, escape and receiving stolen oroperty, all in the Cuyahoga County Common Pleas Court.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wellsville Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charleston man sentenced to 14 years in federal prison for heroin traffickingRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Jon Paul Clements, 33, of Charleston, West Virginia, was sentenced to 14 years in federal prison for selling heroin. Clements pled guilty in October of 2014 to four counts of distributing heroin in the Charleston area.
At his guilty plea hearing, Clements admitted that he repeatedly sold heroin to a confidential informant working with law enforcement at various times and locations in July and August of 2014. Clements was sentenced as a career offender based on his criminal history that included prior convictions for robbery, unlawful wounding, and possession with intent to deliver marijuana.
“We’re fighting back hard against the spread of heroin in West Virginia,” said U.S. Attorney Goodwin. “Honest citizens shouldn’t have to worry about career criminals selling drugs in their communities. Now this defendant will have a long time in federal prison to think about the families and neighborhoods he damaged.”
The case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman was in charge of the prosecution.
Centralia Resident Convicted on Federal Charges for Burglarizing Gun DealerRead the Press Release
A Centralia resident pleaded guilty on April 29, 2015, in United States District Court for burglarizing the Buchheit of Centralia farm and home supply store and stealing thirty nine guns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dakota R. Moss, 19, faces a maximum of up to 40 years in prison for his crimes.
Moss was arrested days after the burglary and indicted by a federal grand jury in December 2014. Moss’ accomplice was not identified because that person is a juvenile.
Facts revealed in Court showed that on November 29, 2014, the Buchheit of Centralia farm and home supply store was burglarized and thirty nine firearms were stolen, along with at least one thousand rounds of ammunition. The burglary was accomplished using a full size pickup truck, which was stolen from the Centralia, Illinois High School. The suspects utilized the stolen truck to ram the locked security gate to make entry onto Buchheit’s parking lot, where the suspects then broke out store windows to make entry into the store. The surveillance video established that the initial burglary occurred at approximately 2:40 am. However, the video evidence revealed that the two suspects left the scene and returned to steal additional firearms and ammunition on two occasions - thereby making a total of three separate entries into the store between 2:40 am and 4:00 am.
Further, Moss and his juvenile accomplice were armed while inside of Buchheit’s and intended to shoot anyone who interrupted the burglary – including police. The complaint alleged that Moss and his accomplice stole the firearms in order to sell the guns; and that Ferguson, Missouri, was among the potential destinations for the weapons. The affidavit also states that the two planned on participating in the ongoing rioting and looting of businesses in the Ferguson, Missouri, area, however the plan did not materialize.
Centralia Police and agents from the ATF identified the suspects soon after the burglary and have recovered 37 of the 39 stolen guns as of this date. Anyone with knowledge of the remaining stolen firearms or the ammunition is encouraged to call law enforcement.
United States Attorney Stephen R. Wigginton credited the law enforcement response when he stated, "The ATF and the Centralia police department have done a fantastic job investigating this case. We fully support their continued investigation to ensure that everyone associated with this event is brought to justice. Moss is facing a longer time in prison than the time he has been on this earth, and for good reason: this was potentially a horribly violent crime which could easily have led to massive numbers of deaths [referring to the numbers of guns and the amount of ammunition taken]" United States Attorney Wigginton also praised the cooperation from Clinton County State’s Attorney John Hudspeth and said, "The State’s Attorney has been a valuable partner in this investigation who personally worked with the United States Attorney’s Office to ensure that justice is done. We look forward to continuing this joint investigation to ensure that everyone who participated in the crime is prosecuted to the fullest extent of the law. We will not stop looking for the remaining unrecovered weapons."
Moss was convicted of stealing firearms from a federal firearms licensee, possession of stolen firearms, being a felon in possession of firearms, and carry and use of a firearm during a crime of violence. The first three charges are all punishable by not more than 10 years’ imprisonment, a $250,000 fine, and not more than 5 years supervised release. Carry and use of a firearm during a crime of violence carries an additional mandatory consecutive sentence of not less than 5 years. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Sentencing has been scheduled for July 31, 2015.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia Police Department, along with the Clinton County State’s Attorney’s office. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Cedar Rapids Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
A Cedar Rapids man who illegally possessed a firearm pled guilty yesterday in federal court in Cedar Rapids.
Kendan Fonville, also known as “Fudd,” age 22, from Cedar Rapids, Iowa, was convicted of one count of Possession of a Firearm by an Unlawful Drug User and one count of Possession of a Firearm with an Obliterated Serial Number.
In a plea agreement, Fonville admitted that he illegally possessed a Bersa Thunder .380 caliber pistol in March 2012. Fonville admitted that the pistol had an obliterated serial number, that he knew the serial number was obliterated, and that he was an unlawful drug user at the time he possessed the pistol.
Fonville has been in the custody of the United States Marshals Service since his arrest in October 2014. After a detention hearing on October 22, 2014, Chief United States Magistrate Judge Jon Stuart Scoles ordered that Fonville be detained pending trial. In so doing, Judge Scoles concluded that Fonville “is virtually a one-man crime spree.” Judge Scoles explained that “despite being only 22 years old, [Fonville] has approximately 30 convictions,” including “11 convictions for assault, 6 convictions for interference with official acts, 4 convictions for public intoxication, and 3 convictions for trespass.”
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Fonville remains in custody of the United States Marshal. Fonville faces a possible maximum sentence of 15 years’ imprisonment, a fine of up to $500,000, $200 in special assessments, and up to 6 years of supervised release following any imprisonment.
Cedar Rapids Police Chief Wayne M. Jerman stated following the plea, “The city has been concerned about the level of gun crime that has been occurring. I truly appreciate the efforts of the prosecutors, investigators, and the patrol officers who remain committed to keeping Cedar Rapids safe.”
The case is being prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Ravi T. Narayan, and was investigated by the Federal Bureau of Investigation Safe Streets Task Force and the Cedar Rapids Police Department.
Court file - https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-117-LRR.
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Career Offender Drug Dealer Sentenced to More Than Fourteen Years in Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Dustin Dylan Glass, age 28, from Monroe, Georgia, was sentenced today by the Honorable C. Ashley Royal, United States District Judge in Athens, Georgia. Mr. Glass was sentenced to 170 months imprisonment for distribution of methamphetamine.
Mr. Glass pled guilty to the charge on December 22, 2014. As part of his plea agreement, Mr. Glass admitted to selling methamphetamine on June 12, 2014 and stipulated to possessing 7.77 grams of actual methamphetamine. Mr. Glass’ prior state convictions include sale of methamphetamine, possession of methamphetamine, aggravated assault, possession of a firearm during the commission of a felony, and battery. Last month, an indictment was filed in the Superior Court of Newton County charging Mr. Glass with the offenses of violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act (3 counts), conspiracy to commit murder, aggravated assault (7 counts), violation of the Street Gang Terrorism and Prevention Act (15 counts) and possession of firearm during commission of a felony (7 counts). The Newton County prosecution is pending.
“Mr. Glass has demonstrated a dangerous propensity for drug dealing and violence,” said U.S. Attorney Michael Moore. “Today’s sentence of more than fourteen years in federal prison punishes Mr. Glass for his status as a career offender, and the citizens of Monroe will be safer while he serves time behind bars.”
The case was investigated by the Monroe Police Department. Assistant United States Attorney Peter Leary prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Melvin Tucker, 29, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, crack cocaine, was sentenced to 36 months by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the prosecution, stated that between the summer of 2012 and April 3, 2013, the defendant, along with several co-defendants, possessed and distributed crack cocaine. Specifically, as part of this conspiracy, a co-defendant maintained several locations on the grounds of the Perry Housing Projects in Buffalo. Tucker purchased crack cocaine from this co-defendant and then distributed the drug to his own customers. Tucker did not sell cocaine base to customers on the grounds of the Perry Housing Projects, rather to customers in other parts of Buffalo.On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.
Tucker was arrested in April 2013 along with 11 others. Defendants Nannette Brown, Brandon Atkins, Eric Ross, and Phayon Redmond have also been convicted. Charges are pending against Tyshawn Bradley, Dallas McLamore, Tashawn Gay, David Varner, Latifah Donaldson, and Tara Robinson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Buffalo Man Sentenced for Wire FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dewayne Vass, 30, of Buffalo, NY, who was convicted of wire fraud affecting a financial institution, was sentenced to 30 months in prison by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $2,400.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant was part of a scheme to defraud the government by obtaining money from the filing of false tax returns. Vass received the proceeds from one of the fraudulent tax returns which was filed with the Internal Revenue Service and for which the refund was placed on a prepaid debit card. The defendant used that card to obtain cash from an ATM totaling $6,248. The intended fraud of the Internal Revenue Service totaled $72,589.00.
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.
The sentencing is the culmination of a joint investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division.
Buffalo Man Sentenced for Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ronald McClendon, Jr., 27, of Buffalo, N.Y., who was convicted of bank robbery, was sentenced to five years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on July 5, 2013, co-defendant Adlyn Marie Echevarria Robles entered M&T Bank, located at 1580 Hertel Avenue in Buffalo. Robles passed the teller a demand note threatening the use of a weapon. The teller gave Robles a specific amount of money. Robles exited the M&T Bank branch with the money, and entered a vehicle driven by McClendon who drove away from the area.
On July 24, 2013, Robles entered the M&T Bank at 709 Elmwood Avenue in Buffalo and passed the teller a demand note threatening the use of a weapon. The teller gave Robles a specific amount of money. Robles exited the M&T Bank branch with the money, and once again entered a vehicle driven by McClendon who drove away from the area.
McClendon drove Robles to both M&T Bank branches knowing that Robles was going to rob the banks. Robles was sentenced to 24 months in prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force which includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
Black Disciples Gang Leader Sentenced to 15 Years in Prison for Drug DistributionRead the Press Release
CHICAGO — A high-ranking leader of the Black Disciples street gang was sentenced today to 15 years in federal prison after being convicted of narcotics distribution. The defendant, WALTER BLACKMAN, 52, of Gary, Indiana, pleaded guilty in August 2014 to distribution of illegal narcotics. Today’s sentence was imposed by United States District Court Judge Edmond E. Chang. Blackman has been in federal custody since his arrest in April 2013. He must serve at least 85 percent of his sentence.
Blackman was a high-ranking leader of the Black Disciples street gang in Chicago. He distributed drugs – including crack cocaine, powder cocaine, and heroin – and controlled the Black Disciples gang members’ drug trafficking in the city of Chicago’s far south side, including the violence-plagued Roseland and Altgeld Gardens communities. According to the government’s sentencing memorandum, Blackman admitted that he had approximately 500 subordinate gang members underneath his control in his territory in “the hundreds,” being part of the Roseland neighborhood of Chicago named for the three-digit streets.
Blackman’s charges in this case, namely sixteen counts of drug distribution, are a small sample of his larger drug trafficking operation in and outside the Black Disciples street gang – an operation that encompassed multiple drug types, multiple years, and multiple states. The defendant was a repeat and large scale supplier of controlled substances, selling and distributing crack cocaine, powder cocaine, and heroin in the Chicago area and elsewhere, including Wisconsin, to numerous wholesale customers.
The Court held Blackman responsible for distributing approximately 4,000 grams of crack cocaine, 1,000 grams of powder cocaine, and approximately 390 grams of heroin. Blackman also possessed firearms during his drug trafficking activities.
“This sentence holds the defendant accountable for the narcotics enterprise he controlled, and for his role in the accompanying gang and gun violence that harms our communities,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “I want to thank our local, state, and federal law enforcement partners for their brave and outstanding work which has resulted in a major impact on this street gang’s narcotics operation and illegal activities,” Mr. Fardon added.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Internal Revenue Service’s Criminal Investigation Division and the Chicago Police Department’s Gang Investigations Division also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF). The Indianapolis, Milwaukee, Minneapolis and Omaha offices of the FBI also assisted with the investigation.
The government was represented by Assistant U.S. Attorneys Carol A. Bell and Sarah Streicker.
Black & Decker Agrees to Pay $1.575 Million for Delay in Reporting Hazards in Cordless Electric LawnmowersRead the Press Release
The Department of Justice and the Consumer Product Safety Commission (CPSC) jointly announced today that Black & Decker (United States) Inc. has agreed to pay a $1.575 million penalty to settle allegations that it knowingly violated the reporting requirements of the Consumer Product Safety Act (CPSA) with respect to cordless electric lawnmowers that started spontaneously and that continued to operate after consumers released the lawnmower handles and removed the safety keys. Black & Decker has also agreed to establish and maintain a compliance program with internal recordkeeping and monitoring systems to keep track of information about product safety hazards. The settlement agreement is awaiting judicial approval.
Black & Decker has previously paid four civil penalties relating to Black & Decker’s untimely reporting of defects and risks presented by other Black & Decker products.
“Not for the first time, Black & Decker held back critical information from the public about the safety of one of its products,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will continue to protect the public against companies that put profits over safety.”
“Black & Decker’s persistent inability to follow these vital product safety reporting laws calls into question their commitment to the safety of their customers,” said Chairman Elliot F. Kaye of the CPSC. “They have a lot of work to do to earn back the public’s trust. Companies are required to report potential product hazards and risks to CPSC on a timely basis. That means within 24 hours, not months or years as in Black & Decker’s case.”
The complaint relates to cordless lawnmowers manufactured and sold by Black & Decker from 1995 to 2006. According to the complaint, in as early as November 1998, Black & Decker started receiving reports that its cordless electric lawnmowers continued to run even after a user released the lawnmower’s handle and removed the safety key, referred to as a continuous-run defect. A second defect involved lawnmowers that unexpectedly started even though the handle was released and the safety key removed, referred to as a spontaneous ignition defect.
The United States alleged that between 1998 and 2009, Black & Decker received more than 100 complaints regarding the continuous-run or spontaneous ignition defects. Dozens of these complaints specifically reported that the lawnmower continued to run or exhibited spontaneous ignition after the lawnmower’s handle was released and the safety key was removed. The United States further alleged that, after consulting an outside expert, the company knew in 2004 that the lawnmowers could continue to run even if a user released the handle and removed the safety key. Despite knowledge of all of this information, Black & Decker failed to report to the CPSC until early 2009, even though federal law requires “immediate reporting.”
The complaint further notes that at least two consumers informed Black & Decker that the lawnmower’s blades started unexpectedly while the consumer cleaned them, resulting in injury. The complaint states that in one case, the lawnmower continued to run, with the handle released and without the safety key, for several hours while the consumer sought treatment in a hospital emergency room for injury to the consumer’s hand, and after fire department personnel arrived and removed the blade.
In addition to the civil penalty, Black & Decker agreed to be bound by a consent decree of permanent injunction that prohibits the company from committing future violations of the CPSA. The consent decree requires that Black & Decker continue to implement and maintain a robust compliance program that ensures timely, truthful, complete and accurate reporting to the CPSC as required by law. In addition Black & Decker is subject to liquidated damages for each day the company is not in compliance with the consent decree.
The government is represented by former Trial Attorney Dan Baeza of the Civil Division’s Consumer Protection Branch, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel.
In agreeing to settle this matter, Black & Decker has not admitted that it knowingly violated the CPSA.
Bangor Man Sentenced to Probation for Possessing Marijuana in Acadia National ParkRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Alexander J. Batson, 22, of Bangor, was sentenced today in U.S. District Court by Magistrate Judge John C. Nivison to two years of probation and fined $1,000 for possessing marijuana. Batson pleaded guilty to the charge on February 6, 2014.
According to court records, on May 27, 2014, rangers at Acadia National Park spotted an open container of alcohol in Batson’s car. The rangers located Batson, who confirmed the vehicle and open container belonged to him. Batson also admitted to having marijuana and consented to a search of his car. The search revealed 63 grams of marijuana, an electronic scale, several plastic bags, and $3,200 in cash, all belonging to the defendant. Batson admitted that he sold marijuana.
The investigation was conducted by the National Park Service.
Armed Career Criminal Sentenced to More Than 16 Years for Gun ChargeRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Henry Noble (37, Atlantic Beach) to 16 years and three months in federal prison for being a felon in possession of a firearm. He pleaded guilty on December 5, 2014.
According to court documents, Noble was seen outside a young girl’s bedroom window at midnight on July 27, 2014. A neighbor saw him and called 911. Officers from the Atlantic Beach Police Department responded, they observed Noble at the bedroom window, and then ordered him to ground. Noble fled from the officers, but was apprehended after a short foot chase. The officers found a loaded .45 caliber pistol in his pocket. The firearm had been previously stolen during a residential burglary.
Noble was previously convicted of several felonies, including robbery, aggravated battery, and drug charges, and therefore is prohibited from possessing a firearm or ammunition under federal law. As such, he qualifies for an enhanced penalty under the Armed Career Criminal statute.
This case was investigated by the Atlantic Beach Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Jason Mehta and Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Amherst Man Arrested, Charged with Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Timothy Murphy, 50, of Amherst, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, on October 15, 2014, law enforcement officers searched the defendant’s residence on Kings Highway in Amherst. The officers recovered a computer being used by Murphy. A subsequent forensic examination determined that the computer contained approximately 123 images and one video of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contained depictions of violence.
The defendant made an initial appearance before U.S. District Judge Hugh B. Scott. Murphy is being held pending a detention hearing on May 5, 2015 at 2:00 p.m.
The complaint is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Alicia Keir Charged with Involuntary ManslaughterRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today the filing of an Information charging Alicia Keir, 24 of Demotte, Indiana, with involuntary manslaughter for the death of her newborn child by failing to summon medical attention
On October 10, 2011, Keir was aboard a cruise ship on the high seas, gave birth alone and failed to obtain any medical attention. The child died from exposure and lack of care. Jurisdiction for acts occurring upon the high seas can be in the district where a defendant resides. In conjunction with the Information, Keir has filed a Petition to Enter a Plea of Guilty to the involuntary manslaughter charge.
The United States Attorney’s Office emphasized that an Information is merely an allegation and not proof of guilt. All persons charged are presumed innocent until and unless proven guilty in court.
This case was the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by the Assistant United States Attorneys Randall M. Stewart and Gary T. Bell.
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Albuquerque Man Sentenced to Thirteen Years for Conviction on Federal Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gilbert Gonzales, 34, of Albuquerque, N.M., was sentenced today in federal court to 156 months in prison followed by three years of supervised release for violating the Hobbs Act and federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Gonzales was arrested in June 2013, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on May 25, 2013, in Bernalillo County, N.M. According to the criminal complaint, an APD officer found a firearm and ammunition in a vehicle Gonzales was driving during a routine traffic stop. At the time, Gonzales was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses in the 2nd Judicial District Court for the State of New Mexico.
In April 2014, a federal grand jury filed a five-count superseding indictment charging Gonzales with two counts of being a felon in possession of a firearm, possession of a stolen firearm, robbing a business engaged in interstate commerce, and brandishing a firearm during a crime of violence. According to the superseding indictment, Gonzales unlawfully possessed firearms in Bernalillo County on May 25, 2013 and June 5, 2013, and unlawfully possessed a stolen firearm on May 25, 2013. It also charged Gonzales with interfering with interstate commerce by robbing a commercial business at gunpoint on May 29, 2013, and with brandishing a firearm at an employee of the business during the robbery.
On Jan. 27, 2015, Gonzales pled guilty to the armed robbery of a business engaged in interstate commerce and to brandishing a firearm during that robbery. In his plea agreement, Gonzales admitted that on May 29, 2013, he obstructed interstate commerce by robbing Southwest Communications, located at 120 San Pedro SE in Albuquerque. Gonzales further admitted brandishing a firearm at an employee of that business during the armed robbery.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. The case was prosecuted by Assistants U.S. Attorneys David M. Walsh and Louis E. Valencia 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.
16 Members and Associates of 7th Street Murda Squad Indicted on Federal Drug ChargesRead the Press Release
Memphis, TN – Sixteen members and associates of a violent, drug trafficking street gang were recently indicted on federal drug charges.
This morning members of the Memphis Drug Enforcement Administration Task Force arrested nine of the defendants named in the indictment. Assisting the task force in making the arrests were officers from the Memphis Police Department’s Organized Crime Unit, the Narcotics Unit from the Shelby County Sheriff’s Office, the Bartlett Police Department, the Collierville Police Department, the Germantown Police Department, the Tennessee Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The indictment and arrests are the result of an extensive investigation conducted by federal, state, and local law enforcement officials on the 7th Street Murda Squad, a criminal organization comprised of various gangs, including members of the Gangster Disciples and Vice Lords.
According to the indictment, the investigation of the 7th Street Murda Squad began in late 2012. During the investigation, officials were able to determine that members and associates of the gang were distributing large quantities of narcotics, primarily cocaine and methamphetamine, throughout the Western District of Tennessee.
Nine Defendants Arrested:
David Lenard Matlock, 32, Memphis
Joe Jones, 36, Memphis
Alvin Lewis, 41, Memphis
Carbin Junior Bullard, 55, Memphis
Albert Demarcus Calhoun, 23, Memphis
Marquice Bell, 28, Blytheville, AR
Christopher Adas Nelson III, 42, (In State Custody)
Roderick McNary, 38, Memphis
Charles Eugene Seaborn, 38, Memphis7 At-Large Defendants:
Tavious Swift, 35, Memphis
Ronnie Kenneth Malone, 45, Memphis
Larry Hill, 45, Memphis
Antonio Anderson, 29, Memphis
Cal Griffin, 39, Memphis
Eric Grove, 38, Memphis
Markeith DeWayne McDaniel, 35, MemphisFive firearms were also seized during the early morning round-up: an AK-47; two 12-guage shotguns; .44 caliber revolver; and 9mm Ruger.
Nine of the defendants face a sentence of up to life in federal prison if convicted: Matlock, Jones, Jackson, Swift, Malone, Hill, Anderson, and Bullard. Another five defendants face a sentence of up to 40 years if convicted: Bell, Grove, Calhoun, McDaniel, and Nelson.
The case was investigated by the Memphis DEA Task Force. Assistant U.S. Attorney Daniel French is representing the government in this case.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
10 Arrested in Large-Scale Drug and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Several South Texas men and one from Houston have been arrested on charges including a marijuana trafficking conspiracy and laundering monetary instruments during an Organized Crime Drug Enforcement Task Force Operation (OCDETF) dubbed “Operation Black Mask,” announced U.S. Attorney Kenneth Magidson.
Josue Estrada, 37, of Rio Grande City, was arrested today and is expected to make his initial appearance in McAllen tomorrow at 9:00 a.m. before U.S. Magistrate Judge Peter Ormsby.
Gustavo Garza-Avalos aka Tavo, 36, of Houston, was arrested yesterday as were Rio Grande City residents Roel Rodriguez, 18, Elijio Perez, 24, Juan Antonio Perez aka Nune, 24, Luis De La Cruz, 47, Edgar Marroquin-Benavides, 35, Ricardo Gonzalez, 40, Jairo Gonzalez-Hernandez aka Toluca, 27, and Manuel Everardo Lopez aka Aldo, 33. Garza-Avalos made his initial appearance today in Houston, while the others appeared before Judge Ormsby in McAllen. All were ordered into custody pending their respective detention hearings.
The indictment remains sealed as to those charged but not as yet in custody.
All were charged in a sealed indictment returned March 11, 2015, which was unsealed upon each arrest.
The indictment charges all with conspiracy to possess with the intent to distribute more than 1000 kilograms of marijuana between June 1, 2012, and the date of the indictment. Rodriguez and Elijio Perez are also charged with conspiracy to commit money laundering on Dec. 2, 2013. A third count also charges Elijio Perez with being felon in possession of a firearm on that date.
Also included in the indictment is a notice that the government is seeking a personal money judgment from the defendants in the amount of $250,000.
If convicted of the marijuana conspiracy, each faces not less than 10 and up to life in federal prison as well as a possible $10 million fine. If convicted of the money laundering charge, Rodriguez and Elijio Perez face up to 20 years in federal prison and a possible $500,000 fine (or twice the value of the monetary instrument or funds involved in the transactions or both). Elijio Perez further faces another 10 years in prison on the firearm charge, upon conviction.
The investigation leading to the indictment was conducted through OCDETF in Corpus Christi, McAllen, Falcon Dam and Houston by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service—Criminal Investigation, The Bureau of Alcohol, Tobacco, Firearms and Explosives, Border Patrol, Alice Police Department, sheriff’s offices in Jim Wells and Harris Counties, Starr County High Intensity Drug Trafficking Area Task Force, Texas Department of Public Safety and the United States Marshals Service.
The case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.***media Advisory***Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Assistant Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant Special Agent in Charge Mark E. Godshall of Homeland Security Investigations in Albuquerque, and Chief Gorden Eden, Jr., of the Albuquerque Police Department will hold a press conference to discuss charges recently filed pursuant to two federal initiatives TODAY, APRIL 29, 2016 AT 1:00 P.M. at the U.S. Attorney’s Office. No further information will be released until the press conference.
WHO: U.S. Attorney Damon P. Martinez for the District of New Mexico
Special Agent in Charge Carol K.O. Lee, FBI’s Albuquerque Division
Special Agent in Charge Will R. Glaspy, DEA’s El Paso Division
Assistant Special Agent in Charge Mark Murray, ATF’s Phoenix Division
Assistant Special Agent in Charge Mark E. Godshall, HSI Albuquerque
Police Chief Gorden Eden, Jr., APD
WHAT: Announcement of charges filed under two federal initiatives
WHEN: WEDNESDAY, APRIL 29, 2015, 1:00 P.M.
WHERE: U.S. Attorney’s Office
10th Floor Multi-Media Room (Reception on 9th Floor)
201 Third Street NW
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 12:45 pm. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
28 April 2015
Yamada Manufacturing Co. Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
Yamada Manufacturing Co. Ltd. has agreed to plead guilty and to pay a $2.5 million criminal fine for its role in a conspiracy to fix prices and rig bids for manual (non-electric or non-hydraulic-powered) steering columns installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court of the Southern District of Ohio in Cincinnati, Yamada Manufacturing, based in Kiryu City, Gunma Prefecture, Japan, conspired to rig bids and fix prices of steering columns sold to certain subsidiaries of Honda Motor Co. Ltd. in the United States and elsewhere. According to the charge, Yamada carried out the conspiracy from at least as early as the fall of 2007 and continuing until as late as September 2012. Yamada Manufacturing has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.
“Yamada’s collusion deprived Honda and its U.S. customers the benefits of freely set prices for manual steering columns, a simple but necessary auto part,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Companies that conspire to undermine competition and harm U.S. consumers will continue to be held accountable for their crimes.”
According to the charge, Yamada Manufacturing, and others participating in the scheme, conspired through a meeting and conversations in which they discussed and agreed upon bids and price quotations to be submitted to Honda. Based on those discussions, Yamada Manufacturing and its co-conspirators sold steering columns to Honda at collusive and non-competitive prices and employed measures to keep their conduct secret.
Including Yamada Manufacturing, 35 companies and 29 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of more than $2.5 billion in criminal fines.
Yamada Manufacturing is charged with one count of price fixing and bid rigging in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office with assistance from the U.S. Attorney’s Office for the Southern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Yamada Information
Worley Women Sentenced for Theft from Coeur d'Alene TribeRead the Press Release
COEUR D'ALENE - Twilla Marie St. Pierre, 37, of Worley, Idaho, was sentenced today to five years of probation for theft from a tribal organization, the Benawah Market, U.S. Attorney Wendy J. Olson announced. U.S. District Judge William Fremming Nielsen, from the Eastern District of Washington, also ordered St. Pierre to pay restitution in the amount of $2,978.54 to the Coeur d’Alene Tribe, and $19,686.50 to Travelers Claims Hartford. St. Pierre pleaded guilty on February 3, 2015.
According to the plea agreement, St. Pierre admitted that on August 21, 2014, she, along with two others entered the closed market and stole cash and checks totaling approximately $22,650.
The case was investigated by Coeur d’Alene Tribal Police and Federal Bureau of Investigation (FBI).
Ware Police Department Enters into Agreement to Guarantee Effective Communication for Hearing ImpairedRead the Press Release
BOSTON – The U.S. Attorney’s Office entered into an agreement today with the Ware Police Department resolving a complaint that the Department lacked effective means to communicate with people who are deaf or hard of hearing.
“Equal access to justice requires that law enforcement be able to effectively communicate with all arrestees, witnesses, and victims to ensure they understand their rights,” said U.S. Attorney Carmen Ortiz. “Through their cooperation and commitment to implementing this agreement, the Ware Police Department is taking a critical step in effecting these necessary changes.”
The agreement requires the Ware Police Department to contract with a qualified sign language interpreting agency and provide sign language interpreters to arrestees, detainees, suspects, victims, witnesses, complainants, and visitors who are deaf or hard of hearing. The agreement also requires the Ware Police Department to establish nondiscriminatory policies and to train all officers on communication with persons who are deaf or hard of hearing.
This complaint arose under the Americans with Disabilities Act which requires the Ware Police Department, as a public entity, to ensure effective communication with people with disabilities.
This matter was handled by Assistant U.S. Attorneys Michelle Leung of Ortiz’s Civil Rights Enforcement Team and Kevin O’Regan, Chief of the Springfield Branch Office.
Two Plead Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARA AITCH, age 39, and WENDY ERVIN, age of 42, both of New Orleans, each pled guilty on Tuesday, April 28, 2015, to one count of conspiracy to commit wire fraud relating to the fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
On March 12, 2015, AITCH and ERVIN were indicted along with 18 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud and the BP fraud.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. In November, 2010, AITCH and ERVIN conspired with LISA CRINEL to apply for disaster assistance funds, and represent that they were employees of LACE, a reception hall owned and operated by LISA CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE HOME CARE SERVICES, INC.
Based on their fraudulent applications, the co-defendants received a total of $35,800 in GCCF funds, monies neither were entitled to receive.
AITCH and ERVIN both face a maximum term of imprisonment of five (5) years, a $250,000 fine, and three (3) years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for July 29, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the U. S. Department of Health and Human Services, Office of Inspector General in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.