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20 April 2015
Madison County Man Sentenced to 10 Years for Heroin ConspiracyRead the Press Release
LEXINGTON — A Madison County man, who was previously convicted of heroin charges, has been sentenced to 10 years in federal prison.
U.S. District Judge Joseph M. Hood sentenced Neal Scott Stone, 39, for conspiracy to distribute heroin, distribution of heroin, possession with intent to distribute heroin, attempt to possess with intent to distribute one kilogram of cocaine, and violating the conditions of his supervised release from a previous crime. Judge Hood also sentenced Stone’s girlfriend, Catherine Leake, 28, to two years in prison for conspiring with Stone. Both defendants must serve at least 85 percent of their prison sentence.
A federal jury convicted Stone of the drug charges in January of this year and found that he conspired to distribute heroin from March 1, 2014 until May 13, 2014. Leake pleaded guilty to the conspiracy offense in January.
According to court documents, in May 2014, Leake distributed heroin, on Stone’s behalf, to another individual at a fast food restaurant in Richmond. Following the transaction, authorities arrested Stone and Leake. After executing a search warrant at Stone’s residence, authorities recovered several items associated with the drug conspiracy, including 71 grams of heroin.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, David Gregory, Chief of Police, Berea, Ky., and Joseph P. Reagan, Special Agent in Charge, DEA, jointly made the announcement.
The investigation was conducted by the Berea Police Department and the DEA. Assistant U.S. Attorney Cindy Rieker prosecuted the case on behalf of the federal government.
MS-13 Member Pleads Guilty in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland –Wilmer Argueta, a/k/a “Chengo,” age 23, of Hyattsville, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including an assault, attempted murder and extortion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to the statement of facts filed with his plea agreement, from 2009 until at least 2012, Argueta was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. Argueta and MS-13 members in the Peajes clique and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
Argueta admitted that on January 3, 2010, he and other MS-13 members attempted to kidnap and assault two victims in the area of East-West Highway and Riggs Road. After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.
According to the plea agreement, on January 13, 2011, Argueta attended a Peajes clique meeting with co-defendant Roni Arriola-Palma and other MS-13 members near the Greenbelt Metro Station. Another MS-13 member spoke at the meeting, criticizing members of the clique for not committing enough violent crimes on behalf of MS-13, and encouraging clique members to find rival gang members and commit acts of violence against them.
After the meeting ended, Argueta and other MS-13 members got into a mini-van being driven by Arriola-Palma. Near the Fort Totten Metro Station, they saw a person they believed was an associate of a rival gang. Argueta and other MS-13 members attacked the victim and dragged him back into the mini-van, where they continued to assault him. Arriola-Palma drove the mini-van around Hyattsville, eventually parking near a dead end in the vicinity of Chillum Manor Road. After Arriola-Palma stopped the mini-van, Argueta and several other MS-13 members kicked, stabbed and choked the victim. Since the victim was wearing heavy winter clothing, Argueta, Arriola-Palma and other MS-13 members forcefully stripped the victim of all clothing, in order to stab the victim. After the assault, two MS-13 members dragged the victim into the woods, where one of the gang members strangled the victim with his belt. When they returned from the woods, they informed the other members that the victim was dead. Arriola-Palma then drove the group of MS-13 members away from the scene. The victim survived the attack.
From March to November, 2011, members of the Peajes clique threatened to kill a fellow MS-13 gang member unless he paid them a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim. Argueta admitted that he ordered other MS-13 associates to relay the death threats to the victim, and contacted the victim himself on multiple occasions to arrange extortion payments. Argueta picked up payments himself, and sent other MS-13 members, including Arriola-Palma, to pick up extortion payments on his behalf. Argueta also used “Facebook,” “Gmail,” and text messaging to relay the extortion demands to the victim.
According to his plea, from September to November 2011, Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George’s County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County. During the conspiracy, Argueta contacted co-defendant Francisco Hernandez from the Prince George’s County Corrections Facility and instructed Hernandez to relay to other MS-13 members that the victim now had a “greenlight” on him. Members of the Peajes Clique of MS-13 acted on this “greenlight,” shooting the victim on November 15, 2011.
Argueta faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for August 4, 2015, at 2:00 p.m. Argueta remains detained pending sentencing.
Francisco Hernandez, age 21, and Roni Arriola-Palma, age 24, both of Hyattsville, previously pleaded guilty for their roles in the racketeering conspiracy and are scheduled to be sentenced at 10:00 a.m. on June 29 and June 30, 2015, respectively.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case
Long Island, New York, Man Sentenced to 25 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Defendant Attempted to Travel to Yemen to Join al-Qaeda Affiliate, Assist Co-Conspirator’s Efforts to Join The Terrorist Group and Destroy Evidence of Terrorism Offenses
Earlier today at the federal courthouse in Central Islip, New York, Marcos Alonso Zea, also known as “Ali Zea,” an American citizen and resident of Brentwood, New York, was sentenced to 25 years in prison following his Sept. 9, 2014, guilty plea to attempting to provide material support to a foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively AQAP), and obstruction of justice.
The sentencing was announced by U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York Police Department (NYPD).
Beginning in the fall of 2011, Zea planned to travel overseas in order to wage violent jihad against the perceived enemies of Islam, which included the government of Yemen and its allies. In furtherance of his plot, on Jan. 4, 2012, Zea boarded a flight at John F. Kennedy Airport (JFK) in Queens, New York, to London, en route to Yemen. Zea was not permitted to travel onward from London, however, and was returned to the United States by British authorities. Zea was interviewed and closely monitored by investigators following his return. Despite being prevented from traveling to Yemen, Zea continued to plot, including by encouraging and supporting his co-conspirator, Justin Kaliebe, who also was planning to travel to fight jihad. In January 2013, Kaliebe was arrested at JFK while attempting to travel to Yemen to join AQAP. Months later, after learning that he too was under investigation, Zea caused electronic media on his computer to be destroyed in an effort to obstruct the investigation. Notwithstanding his efforts, a forensic examination of Zea’s electronic media subsequently conducted by investigators revealed an assortment of violent Islamic extremist materials, including issues of Inspire magazine, part of AQAP’s English-language media operations.
“Marcos Alonso Zea presents a chilling reminder of the danger presented to the United States by homegrown terrorists,” said U.S. Attorney Lynch. “Born, raised and schooled in the United States, the defendant nevertheless betrayed his country by attempting to join al-Qaeda in the Arabian Peninsula, assisting a co-conspirator’s attempt to join that terrorist group, and, after learning he was under investigation, attempting to destroy evidence of his guilt. We will continue to work tirelessly to protect our national security from all enemies, both foreign and domestic.” U.S. Attorney Lynch expressed her grateful appreciation to all the members of the FBI’s Joint Terrorism Task Force and the NYPD’s Intelligence Division for their work on the investigation.
“One of our highest priorities is to protect our country by identifying, disrupting and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations,” said Assistant Attorney General Carlin. “This sentence serves unambiguous notice that attempting to travel abroad to engage in such conduct has significant consequences.”
“The threat from al-Qaeda is real, look no further than Marcos Zea,” said Assistant Director in Charge Rodriguez. “Zea betrayed our country, attempting to first join al-Qaeda. When that failed, he helped others wage jihad. We continue working relentlessly to disrupt the plans of those who look to do us harm.”
“The New York City Police Department will continue to work closely with our federal counterparts to identify and arrest homegrown terrorists like Marcos Alonso Zea, and ensure all extremists bring no harm to American soil, especially here in New York City,” said Commissioner Bratton.
After being arrested in January 2013, Zea’s co-conspirator Kaliebe subsequently pleaded guilty to one count of attempting to provide material support to terrorists and one count of attempting to provide material support to AQAP. Kaliebe is pending sentencing by U.S. District Judge Denis R. Hurley of the Eastern District of New York.
The case is being prosecuted by Assistant U.S. Attorneys Seth D. DuCharme, John J. Durham and Michael P. Canty of the Eastern District of New York, with assistance provided by Trial Attorney Kelli Andrews of the National Security Division’s Counterterrorism Section.
Long Island Man Sentenced to 25 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Marcos Alonso Zea, also known as “Ali Zea,” an American citizen and resident of Brentwood, New York, was sentenced to 25 years in prison following his September 9, 2014, guilty plea to attempting to provide material support to a foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively AQAP), and obstruction of justice.
The sentencing was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Assistant Attorney General, National Security Division; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
Beginning in the fall of 2011, Zea planned to travel overseas in order to wage violent jihad against the perceived enemies of Islam, which included the government of Yemen and its allies. In furtherance of his plot, on January 4, 2012, Zea boarded a flight at John F. Kennedy Airport (JFK) in Queens, New York, to London, England, en route to Yemen. Zea was not permitted to transit onward from London, however, and was returned to the United States by British authorities. Zea was interviewed and closely surveilled by investigators following his return. Despite being prevented from traveling to Yemen, Zea continued to plot, including by encouraging and supporting his co-conspirator, Justin Kaliebe, who also was planning to travel to fight jihad. In January 2013, Kaliebe was arrested at JFK while attempting to travel to Yemen to join AQAP1. Months later, after learning that he too was under investigation, Zea caused electronic media on his computer to be destroyed in an effort to obstruct the investigation. Notwithstanding his efforts, a forensic examination of Zea’s electronic media subsequently conducted by investigators revealed an assortment of violent Islamic extremist materials, including issues of Inspire magazine, part of AQAP’s English-language media operations.
“Marcos Alonso Zea presents a chilling reminder of the danger presented to the United States by homegrown terrorists. Born, raised, and schooled in the United States, the defendant nevertheless betrayed his country by attempting to join al-Qaeda in the Arabian Peninsula, assisting a co-conspirator’s attempt to join that terrorist group, and, after learning he was under investigation, attempting to destroy evidence of his guilt,” stated U.S. Attorney Lynch. “We will continue to work tirelessly to protect our national security from all enemies, both foreign and domestic.” Ms. Lynch expressed her grateful appreciation to all the members of the FBI’s Joint Terrorism Task Force and the New York City Police Department, Intelligence Division, for their work on the investigation.
“One of our highest priorities is to protect our country by identifying, disrupting, and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations,” said Assistant Attorney General Carlin. “This sentence serves unambiguous notice that attempting to travel abroad to engage in such conduct has significant consequences.”
“The threat from al-Qaeda is real, look no further than Marcos Zea. Zea betrayed our country, attempting to first join al-Qaeda. When that failed, he helped others wage jihad. We continue working relentlessly to disrupt the plans of those who look to do us harm,” stated FBI Assistant Director-in-Charge Rodriguez.
Police Commissioner Bratton said, “The New York City Police Department will continue to work closely with our federal counterparts to identify and arrest homegrown terrorists like Marcos Alonso Zea, and ensure all extremists bring no harm to American soil, especially here in New York City.”
The government’s case is being prosecuted jointly by the Office’s National Security and Cybercrime Section and the Long Island Criminal Division. Assistant United States Attorneys Seth D. DuCharme, John J. Durham, and Michael P. Canty are in charge of the prosecution, with assistance provided by Trial Attorney Kelli Andrews of the Counterterrorism Section of the Department of Justice.
The Defendant:
MARCOS ALONSO ZEA (a/k/a “Ali Zea”)
Age: 26
Brentwood, New York
___________________________________________________________________________
1 Kaliebe subsequently pled guilty to one count of attempting to provide material support to terrorists and one count of attempting to provide material support to AQAP. Kaliebe is pending sentence by United States District Judge Denis R. Hurley in Central Islip.
Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Kenneth Charles Poston, III, age 37 of Lincoln, Nebraska, was sentenced on April 17, 2015, in Lincoln, Nebraska, to 78 months in prison by United States District Judge John M. Gerrard, for possessing child pornography. Poston’s sentence also requires him to pay restitution totaling $2,000.00, to be on supervised release for ten years after being released from prison, and to register as a sex offender.
In June of 2014 investigators with the Lincoln Police Department became aware of a computer that was sharing files that had been classified as containing child pornography. Further investigation identified the IP address, service provider and the address of Poston. A search warrant was served in August of 2014 and Poston was taken into custody. Forensic examination of the computer equipment removed from Poston’s residence established Poston’s possession of approximately 50,000 images and 399 videos affiliated with child sexual exploitation.
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."
This case was investigated by the Lincoln Police Department.
Lee County Man Sentenced for False Tax Claims and Obstructing the Internal Revenue ServiceRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Ronald Francis Croteau to 56 months in federal prison for filing false tax claims and for obstructing or impeding the administration of the Internal Revenue laws. A federal jury found him guilty on January 22, 2015.
According to testimony and evidence presented at trial, Croteau belonged to a sovereign citizen, anti-government group; claimed to be a member of the Little Shell Pembina Band of North Dakota; and deemed himself to be an ambassador of the Kingdom of Heaven. Between September 2008 and May 2010, he filed 10 false and fraudulent income tax returns claiming refunds totaling more than $3.8 million. These returns were false and fraudulent in that they claimed federal tax withholdings from fraudulent 1099-OID forms purportedly issued to Croteau by financial institutions.
After being notified by the IRS that his income tax returns were frivolous, Croteau continued to file fraudulent income tax returns. In addition, he obstructed the administration of the Internal Revenue laws by filing false liens against IRS employees, submitting fraudulent instruments to the IRS in an attempt to discharge his tax liabilities, and recording false documents with the Lee County Clerk of Court.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Lee County Man Sentenced for False Tax Claims and Obstructing the Internal Revenue ServiceRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Ronald Francis Croteau to 56 months in federal prison for filing false tax claims and for obstructing or impeding the administration of the Internal Revenue laws. A federal jury found him guilty on January 22, 2015.
According to testimony and evidence presented at trial, Croteau belonged to a sovereign citizen, anti-government group; claimed to be a member of the Little Shell Pembina Band of North Dakota; and deemed himself to be an ambassador of the Kingdom of Heaven. Between September 2008 and May 2010, he filed 10 false and fraudulent income tax returns claiming refunds totaling more than $3.8 million. These returns were false and fraudulent in that they claimed federal tax withholdings from fraudulent 1099-OID forms purportedly issued to Croteau by financial institutions.
After being notified by the IRS that his income tax returns were frivolous, Croteau continued to file fraudulent income tax returns. In addition, he obstructed the administration of the Internal Revenue laws by filing false liens against IRS employees, submitting fraudulent instruments to the IRS in an attempt to discharge his tax liabilities, and recording false documents with the Lee County Clerk of Court.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Law Enforcement Officials Receive Awards for Role in Dismantling Drug Ring Led by Kingpin Craig PettiesRead the Press Release
Memphis, TN – Law enforcement officials responsible for the apprehension, prosecution and conviction of former drug kingpin Craig Petties were recognized with awards during the Organized Crime Drug Enforcement Task Force’s (OCDETF) Southeast Region recent annual meeting.
The award presentation took place at the Shelby County Sheriff’s Office Homeland Security Building.
U.S. Attorney Edward Stanton III, along with OCDETF Deputy Director Thomas Padden of Washington, D.C., presented the officials with individual awards for their time-intensive contributions to Operation Petticoat, an extensive investigation that resulted in the conviction of Petties and 40-plus members of his lucrative and violent drug trafficking organization.
Representatives from federal, state, and local law enforcement agencies such as the U.S. Marshals Service, Drug Enforcement Administration, Federal Bureau of Investigation, Memphis Police Department, and U.S. Attorney’s Office were among those receiving awards during the ceremony.
On August 22, 2013, Petties received nine concurrent life sentences in federal prison for charges including murder in aid of racketeering, conspiracy to commit murder for hire, and money laundering.
At the height of his reign, Petties, a native of South Memphis, was responsible for the distribution of hundreds of kilograms of cocaine throughout the southern United States. He was prosecuted by the U.S. Attorney’s Office in the Western District of Tennessee. To date, it’s the largest drug trafficking prosecution in the state.
OCDETF is a Department of Justice Program that seeks to diminish the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Individuals pictured in photo (L to R): Mike Smith - OCDETF; Abe Collins – (Retired) DEA; Scott Leary - U.S. Attorney’s Office; Stephanie Creasy – U.S. Marshals Service; Bob Reich – (Retired) FBI; Lasundra Price – MPD; Therman Richardson – MPD; Frederic Winston – Alcohol, Tobacco, and Firearms; Chris Henry – Internal Revenue Service; Thomas Padden – OCDETF; Edward Stanton – U.S. Attorney’s Office; Jerry Kitchen – U.S. Attorney’s Office.
KC Woman Sentenced for $100,000 Benefits FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for stealing from the government by receiving more than $100,000 in Social Security and other benefits to which she was not entitled.
Glenda Jacobs, 64, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to two years and six months in federal prison without parole. The court also ordered Jacobs to pay restitution to the government.
On Sept. 9, 2014, Jacobs pleaded guilty to theft of government property. Jacobs admitted that, from January 2009 to August 2013, she fraudulently obtained $107,604 in Social Security, unemployment and Supplemental Nutrition Assistance Program (SNAP, also known as food stamps) benefits.
Jacobs filed for Supplemental Security Insurance benefits in 1982 and was found disabled. From 1987 forward, Jacobs worked continuously under a second Social Security number while continuing to draw benefits. Jacobs repeatedly failed to report her employment and earnings to the Social Security Administration. Jacobs admitted that she fraudulently received $93,922 in Social Security benefits.
Jacobs admitted that she fraudulently received $8,869 in federal unemployment benefits from August 2011 through September 2012. Jacobs admitted that she fraudulently collected $4,813 in SNAP benefits from January 2011 to August 2013.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Social Security Administration, Office of Inspector General; the U.S. Department of Agriculture, Office of Inspector General; and the U.S. Department of Labor, Office of Inspector General.
Joyce Allen Sentenced to Serve A Total of 360 Months for Wire Fraud, Mail Fraud and Money Laundering Violations Related to Benchmark Capital, Inc.Read the Press Release
KNOXVILLE, Tenn. – On Apr. 20, 2015, Joyce Allen, 67, of Louisville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve a total of 360 months in federal prison. Allen was immediately taken into custody by the U.S. Marshals Service following the sentencing hearing.
In addition to her prison sentence, Allen was ordered to pay $20,711,371.72 in restitution. Forfeiture of the same cash amount was also ordered by the court. Upon her release from prison, she will be under the supervision of U.S. Probation for three years.
After a September 2014 jury trial, Allen was found guilty of charges contained in a March 2014 superseding indictment against Allen and five other individuals associated with Benchmark Capital, Inc. (Benchmark), a Knoxville business owned by Charles D. Candler. The business purpose of Benchmark was to defraud investors by taking their funds in exchange for worthless and nonexistent investments, and paying a portion of the funds received to earlier investors under the guise of paying dividends, interest and mortgage payments, thereby encouraging new investors to entrust their funds to Benchmark. Details of the scheme are outlined in the superseding indictment on file with the U.S. District Court.
Allen was the president of J. Allen and Associates, Inc., based in Louisville, Tenn. Through this business, she induced individuals to pay funds to her in exchange for annuity investments with Benchmark, knowing that these funds would not be placed with Benchmark or any other company for investments, but converted to personal use by Allen and her other co-conspirators.
The other five individuals named in the superseding indictment pleaded guilty and have been previously sentenced by the U.S. District Court. Candler died in March 2012 before he could be charged in the conspiracy.
U.S. Attorney Bill Killian stated, “We are pleased with this lengthy sentence and the message it sends to others who use or consider using their positions of trust to defraud innocent victims. This case is a good example of how law enforcement agencies working together can bring individuals to justice for their criminal acts.”
"The U.S. Postal Inspection Service is committed to working with our law enforcement partners to ensure the U.S. Mails are not utilized as a tool to defraud victims in these types of Ponzi schemes” said Thomas Noyes, II, Postal Inspector in Charge of the Charlotte Division.
“IRS-Criminal Investigation is committed to unraveling complex fraud and money laundering schemes. We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means," stated Christopher A. Henry, Special Agent in Charge. “Today’s sentencing should send a clear message to those who would consider conducting or participating in these types of fraudulent financial transactions.”
“Money laundering and fraudulent investments have a devastating impact on the community. Those who steal money from victims who are attempting to save money for their future will pay a high price through the criminal justice system,” said Edward Reinhold, FBI Special Agent in Charge, Knoxville Division.
This case was investigated by the Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr., and Jennifer Kolman represented the United States at trial.
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Jefferson City Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Robert Fount Mahan, 34, of Jefferson City, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On Dec. 30, 2014, Mahan pleaded guilty to being a felon in possession of a firearm. Mahan was traveling westbound on U.S. 54 Highway on Oct. 25, 2012, when a Missouri State Highway Patrol trooper attempted a vehicle stop on the Old Bass Road crossover due to Mahan’s suspicious behavior and the license plate on Mahan’s vehicle being reported as not on file. Mahan instead led the trooper in a vehicle pursuit that reached speeds of 75 to 80 miles per hour on Old Bass Road. Mahan’s vehicle crossed the center line on several occasions. Mahan’s vehicle struck an embankment and crashed into a fence near the Hunter Run intersection. Mahan ran from the vehicle but was apprehended. Troopers found a loaded Hi Point .45-caliber pistol in the vehicle’s center console.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mahan has three prior felony convictions for domestic assault and a prior felony conviction for possession of a controlled substance.
Co-defendant Danielle Christine Orcutt, 33, of Jefferson City, was also sentenced today to one year and one day in federal prison without parole.
Orcutt, who was Mahan’s girlfriend, pleaded guilty to participating in a conspiracy to tamper with evidence so that it could not be used in Mahan’s prosecution. Orcutt admitted that she had twice visited the location where Mahan’s vehicle crashed in search of a purple cloth bag containing methamphetamine. However, troopers had already located the bag prior to Orcutt’s search.
Co-defendant Kenneth Dale Witherell, 28, of Barnett, Mo., was sentenced on March 3, 2015, to three years and six months in federal prison without parole. Witherell pleaded guilty to participating in a conspiracy to distribute methamphetamine and to being a felon in possession of a firearm.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Drug Enforcement Administration and the Cole County, Mo., Sheriff’s Department.
Guilty Plea in Sequoia National Park Marijuana Cultivation ConspiracyRead the Press Release
FRESNO, Calif. —Toribio Cruz-Galvan (Cruz), 29, of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess marijuana with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants and processing of 51 pounds of dried marijuana in the Yucca Mountain area of the Sequoia National Park. The Yucca Mountain area is in an area generally known for its spring wildflower display. In addition to the growing marijuana plants, park rangers found processed marijuana, a shotgun, and ammunition for various firearms. The marijuana cultivation operation also caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
Cruz remains detained as a flight risk and danger to the community and is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on July 20, 2015. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Docket #: 1:14-cr-225-LJO
Guardians Sentenced for Defrauding Department of AgricultureRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on April 17, 2015, Tim Koropatnicki, 56, and Delyte Koropatnicki, 55, both from Pingree, North Dakota, were sentenced before U. S. District Judge Ralph R. Erickson. Tim Koropatnicki pled guilty to a felony charge of Unauthorized Use of Benefits and Delyte Koropatnicki pled guilty to a misdemeanor offense of Conversion of Public Money, Property, or Records. Judge Erickson sentenced each to a term of eighteen (18) months of supervised probation, $6639.19 in restitution to be paid joint and several to the United States Department of Agriculture, perform 100 hours of community service, and ordered Tim Koropatnicki to pay $100 and Delyte Koropatnicki to pay $25 in special assessments to the Crime Victims’ Fund. As a special condition of probation, Judge Erickson ordered that neither Tim nor Delyte Koropatnicki may serve in any capacity over financial or personal affairs of any person for the duration of their probation. An exception was made for Delyte Koropatnicki to continue guardianship of persons she has maintained a long-standing (longer than 7 years) fiduciary responsibility.
From March 2013 through about May 2013, Tim and Delyte Koropanicki knowingly converted Supplemental Nutritional Assistance Program (SNAP) benefits, a program of the United States Department of Agriculture, which belonged to a client under their guardianship through their company, DKK Guardianship Service; specifically, Tim Koropatnicki changed the personal pin identification number on the card and he and Delyte Koropatnicki then used the client’s Electronic Benefit Transfer (EBT) card, without the client’s knowledge or consent, to purchase groceries and meat for their personal use.
This case was investigated by the United States Department of Agriculture, Office of Inspector General.
Assistant U. S. Attorney Janice Morley prosecuted the case.
Getaway Driver in Wolf Point Casino Robbery Pleads GuiltyRead the Press Release
GREAT FALLS – A Wolf Point man who drove the getaway car in a Fort Peck casino robbery pleaded guilty today. Patrick Beauchamp, 35, was charged with aiding abetting robbery after he planned the robbery with others and served as the getaway driver. He faces up to twenty years in prison, a $250,000 fine, and three years supervised release. Sentencing is set for July 27, 2015 at 11:00 a.m. before U.S. District Judge Brian Morris.
Assistant U.S. Attorney Laura Weiss told the court that on June 12, 2013, Beauchamp and three others drove around Wolf Point and discussed robbing a casino. Beauchamp was driving, and two others got out and went into the Northern Lights casino with weapons and their faces covered. One of the robbers hit a casino employee over the head with an axe handle while the other held customers at bay with a bat. The first robber stole money from the casino and the two ran out to the waiting vehicle driven by Beauchamp. More than $1,340 was stolen from the casino. The group was pulled over moments later. Law enforcement found cash strewn throughout the vehicle, as well as the bat. The axe handle was found on the floor of the casino.
The case was investigated by Fort Peck Tribes Department of Law and Justice Criminal Investigations and the Wolf Point Police Department.
Four Arrested on Firearm Trafficking ChargesRead the Press Release
St. Thomas, USVI- A federal grand jury has returned a 12-count indictment charging Tequan Anthony Joseph, 23, Ja’Moi Khadeem Corraspe, 22, D’Mari Jahcoi Heyliger, 22, and Calvia Lake, 20, with federal and territorial firearm offenses, United States Attorney Ronald W. Sharpe announced today. Joseph was arrested Tuesday, April 14, 2015, in Atlanta, Georgia, and is awaiting transportation to St. Thomas. Corraspe was arrested Tuesday, April 14, 2015, in White Plains, New York, and is also awaiting transportation to St. Thomas. Heyliger was arrested Wednesday, April 15, 2015, on St. Thomas, and is detained pending a detention hearing and arraignment Friday in District Court. Lake was arrested Tuesday, April 14, 2015, on St. Thomas, and was released on bond. Her arraignment also is scheduled Friday in District Court.
According to the indictment, the three men and one woman conspired to unlawfully mail firearms from Florida to St. Thomas. The arrest of the four individuals resulted from a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Postal Inspection Service after the U.S. Postal Inspection Service intercepted some of the packages with firearms.
Joseph is charged with three firearm conspiracy counts, one count of unlawful shipment of a firearm with obliterated serial numbers, and one count of unlawful mailing of a firearm. Heyliger is charged with two firearm conspiracy counts, two counts of possession of a firearm with obliterated serial numbers, and unlawful attempt to receive a firearm. Heyliger also is charged under Virgin Islands law with two counts of possession of a firearm with altered identification marks, and two counts of possession of an unlicensed firearm. Corraspe is charged with three firearm conspiracy counts, and Lake is charged with one firearm conspiracy count.
Conspiracy to unlawfully mail firearms carries a maximum sentence of two years. The other federal offenses carry a maximum sentence of five years. The territorial charge of possession of firearms with altered identification marks carries a mandatory 15-year sentence, and the territorial charge of possession of an unlicensed firearm carries a maximum sentence of five years.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Former U.S. Army Colonel Pleads Guilty to False Statements and Conflict of Interest in Connection with Helicopter Procurement ContractsRead the Press Release
TUSCALOOSA – A former colonel in the U.S. Army pleaded guilty today in federal court for criminal misconduct arising from his duties associated with various helicopter procurement contracts at Redstone Arsenal in Huntsville.
U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Special Inspector General John F. Sopko for Afghanistan Reconstruction, Deputy Inspector General for Investigations James B. Burch of the Defense Department’s Defense Criminal Investigative Service (DCIS), and Frank Robey, director of the U.S. Army Criminal Investigation Command's (CID) Major Procurement Fraud Unit made the announcement.
NORBERT VERGEZ, 49, formerly of Mesa, Ariz., pleaded guilty before U.S. District Judge L. Scott Coogler to the three counts of a government information filed last week: two counts charging false statements and one count charging conflict of interest. No sentencing date has been set.
“Colonel Vergez placed his own financial ambitions and personal loyalties above his duties as a member of the armed forces,” Vance said. “In doing so, he betrayed the U.S. Army values of honesty, integrity and selfless service, which are hallmarks of military service. This prosecution highlights our commitment to hold responsible those who, by word and deed, corrupt the government contracting process.”
According to his plea agreement, Vergez served from 2010 to 2012 as the program manager for “Non-Standard Rotary Wing Aircraft” (NSRWA), a component of the Army located at Redstone Arsenal, which was responsible for contracts involving certain “non-standard” helicopters, including the Russian-made Mi-17.
Vergez pleaded guilty to three instances of making false statements and using false writings in communicating with the Department of Defense Office of Inspector General (DODIG) in connection with a DODIG audit of a Mi-17 overhaul contract administered in part by NSRWA. One aspect of the audit had to do with the role NSRWA played in certain contract disputes that involved various contractors and subcontractors in the contracting chain, including a third-tier subcontractor known as Avia Baltika Aviation Ltd. (AVB). Vergez admitted in his plea agreement that on two occasions he made or caused his office to make false representations to DODIG that his office had no direct contact with AVB concerning its subcontract on the Northrop Grumman contract, when, as Vergez then knew, he and his direct subordinates at NSRWA had significant direct contacts with AVB related to its subcontract.
Vergez also admitted that on Feb. 1, 2012, he directed a subordinate official to create and sign a document bearing the typed date Dec. 5, 2011, representing that a $3.67 million claim by AVB under the contract was reasonable. As a result of this backdating, it falsely appeared that the subordinate official had approved the $3.67 million payment before directions were given to Northrop to make that payment. That document was then provided to DODIG in response to its requests for supporting documentation surrounding this attempt to have Northrop pay AVB.
According to the plea agreement, Vergez admitted that he engaged in a criminal conflict of interest by taking official acts as a government official to assist a helicopter manufacturing company in negotiating a “foreign military sale” and adjusting a contract so that the company received payment faster than originally agreed upon at a time when Vergez was negotiating future employment with that company.
Vergez further admitted that he made false statements in his “Confidential Financial Disclosure Report,” a government ethics form, for the year 2012, by not disclosing that his wife had received a Rolex wristwatch from the wife of a representative of AVB; that he had accepted an offer of employment with a private company; and that he had received a $30,000 check from that company.
The Special Inspector General for Afghanistan Reconstruction (SIGAR), DCIS, CID and the FBI investigated the case. Department of Justice Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section (on detail from SIGAR) and Assistant U.S. Attorneys Henry Cornelius and Ramona Albin are prosecuting the case.
Former State Legislator Sentenced for Bank FraudRead the Press Release
TOPEKA, KAN. - A former Kansas state legislator was sentenced Monday to 18 months in federal prison for defrauding Farmers and Merchants Bank of Colby, Kan., of more than $460,000, some of which he deposited in his campaign account, U.S. Attorney Barry Grissom said. He also was ordered to pay $461,000 in restitution.
Trent K. LeDoux, 40, Holton, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted he applied for three loans from the bank, falsely representing that he was going to use all the funds to buy cattle that would serve as the collateral for the loans. In fact, he used some of the money to pay off existing debts and to make contributions to his political campaign account.
Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Former Prison Doctor Gets Prison Term for Schemes to Defraud the IRS and the Financial Aid SystemRead the Press Release
PHILADELPHIA - Dennis Erik Fluck Von Kiel, 58, of New Tripoli, PA, was sentenced today to 41 months in prison for schemes to: defraud the IRS and the Department of Health and Human Services out of hundreds of thousands of dollars, get financial aid grants for his four eldest children, file false claims for social security disability insurance, and lie at a bankruptcy proceeding. Von Kiel is the former medical director of Lehigh County Prison. He pleaded guilty on January 12, 2015 to conspiracy to defraud the United States, five counts of attempting to defeat or evade a federal tax, one count of attempting to obstruct the due administration of the internal revenue code, five counts of failure to file tax returns, one count of wire fraud and aiding and abetting wire fraud, one count of perjury in a bankruptcy proceeding, one count of financial aid fraud and aiding and abetting financial aid fraud, and two counts of mail fraud and attempted mail fraud. In addition to the prison term, U.S. District Court Judge Jeffrey L. Schmehl ordered three years of supervised release, restitution to the IRS in the amount of $256,920, to the Department of Health and Human Services in the amount of $262,303.11 to the Department of Education in the amount of $36,314, forfeiture of $165,988.29, and a $1,325 special assessment.
Since 2001, Von Kiel has engaged in a series of illegal schemes which were designed to help him evade creditors, including the Department of Health and Human Services to whom Von Kiel owed hundreds of thousands of dollars in outstanding medical school loans. He tried to defraud the IRS in order to avoid paying more than $200,000 in duly-owed personal income taxes. Von Kiel also lied on applications to the Department of Education for financial student aid for four of his children, which enabled them to receive more than $36,000 in federal Pell Grants for their college educations. Von Kiel tried to file a fraudulent claim for social security disability benefits by falsely claiming that he suffered from post-traumatic stress disorder. He also intentional made a false statement under oath in a bankruptcy proceeding.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. Most of Von Kiel’s schemes involved him pretending to become a minister of a “church” called the International Academy of Lymphology (which later changed its name to the International Academy of Life and then the Christian Forum Assembly), purporting to take a “vow of poverty,” and then claiming that he had no taxable income because his earnings belonged to “church.” Von Kiel convinced his employer that he was exempt from federal tax withholdings and directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church.” Once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then used the money to pay for all of his family’s day-to-day living expenses and to buy some luxury items.
Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014.
The case was investigated by the Internal Revenue Service Criminal Investigations, the FBI, and the Department of Education’s Office of Inspector General. It was prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Former Mayor of Spring Valley Found Guilty in Federal Court of Bribery, Extortion and Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that former Spring Valley Mayor NORAMIE JASMIN was found guilty in federal court today of engaging in a bribery scheme in which she negotiated a 50 percent stake for herself in a development company and $5,000 cash in exchange for her use of her office to obtain land and various government approvals to construct a community center in Spring Valley. She was convicted after a one week bench trial before U.S. District Judge Colleen McMahon.
Manhattan U.S. Attorney Preet Bharara said: “This office is committed to ensuring the integrity of New York public officials at all levels and wherever they may be. Today, I announce the conviction of yet another corrupt elected official who failed to live up to her oath of office. Former Spring Valley Mayor Noramie Jasmin used her official position to influence a construction project on a parcel of public land, and she accepted bribes, including a secret fifty percent share of the project, to do so. Like all citizens, the residents of Spring Valley deserved an honest mayor, not one who worked behind closed doors and behind their backs to sell public land and public office for private gain. I want to thank the FBI, the Rockland County District Attorney’s Office, and the Spring Valley Police Department for their outstanding work on this important investigation.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
NORAMIE JASMIN was sworn in as Mayor of the Village of Spring Valley, New York, in December 2009. From September 2011 through April 2013, JASMIN accepted bribes from an undercover FBI agent (the “UC”) and a cooperating witness working with the Government (the “CW”), on multiple occasions in exchange for official acts. The bribe scheme centered on the development of a community center in the Village of Spring Valley whose construction costs were expected to be at least $12 million. In exchange for her vote in favor of a sale of land owned by Spring Valley to a company she believed was controlled by the UC, JASMIN demanded a secret ownership stake in the company. JASMIN also asked for an advance on her profits from the scheme and accepted a $5,000 cash payment from the CW. In support of the scheme, JASMIN directed the UC to find people to pose as bidders for the project so that the transaction would appear legitimate to the other members of the Spring Valley Board of Trustees who voted on the sale. Over the course of two days, JASMIN met the UC and two other undercover FBI agents posing as straw bidders (the “Straw Bidders”) in hotel rooms and instructed the Straw Bidders on how to make a presentation before the Spring Valley Board of Trustees such that the Straw Bidders would lose their purported bids on the land sale. JASMIN then presided over the presentations made by the company in which she had a secret financial stake and the fake presentations that she had helped prepare. The following day, JASMIN presided over a Village Board of Trustees meeting, during which she asked the Board for permission to negotiate the sale of Village land to the UC’s company and then voted with a “strong yes” to grant herself that permission. When questioned as to why the Board needed to vote to grant her that permission, JASMIN remarked that she “cannot sit behind closed doors with a developer to negotiate on behalf of the Board,” precisely what she did in the days preceding that vote.
JASMIN, 51, of Spring Valley, was found guilty of one count of mail fraud and one count of extortion. Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
JASMIN is scheduled to be sentenced by Judge McMahon on August 7, 2015 at 10 a.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the Rockland County District Attorney’s Office, and Chief Paul Modica and the Spring Valley Police Department.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom and Jessica K. Feinstein are in charge of the prosecution.
Federal Search Warrants Target Nashville Area Tax Preparation BusinessesRead the Press Release
Four persons were arrested last week and charged with participating in an income tax refund fraud scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The fraudulent returns were filed in January and February of this year and sought millions of dollars in refunds.
Those arrested were Byron Fernandez-Virula, Sr., 40; Byron Fernandez-Virula, Jr., 23; and Wilmar Soto-Virula, 33; all from the Madison area of Nashville; and Victor Oliva, 38, of Hendersonville, Tenn. Fernandez-Virula, Sr. and Soto-Virula were also charged with being an illegal alien in possession of a firearm.
The arrests follow the execution of 10 federal search warrants on April 15, 2015, at various residences and tax return businesses throughout Middle Tennessee, including Soto’s Income Tax Service in Madison; Soto’s Services 2 in Hermitage; Soto’s Income Tax in Springfield; Soto Services 1 in Gallatin; and S’ Income Tax Services in Nashville.
The searches yielded approximately $497,000 in cash seized from Fernandez-Virula Sr.’s, and disclosed his ownership of more than 15 residential properties that are collectively worth more than $1 million. The search warrants also resulted in the seizure of about $500,000 from Olvia; the additional seizure of more than $100,000 from various locations and bank accounts; and several late model, luxury automobiles.
According to the criminal complaint, the scheme involved the filing of income tax returns that contained an array of false information, including false W-2s, false wages and withholding tax information and false dependents and taxpayer names. Many of the participants have been confirmed to be illegal aliens. The investigation thus far has led to the arrest and conviction of more than 25 participants.
“The people engaged in these crimes are stealing money from honest, hardworking U.S. tax payers,” said U.S. Attorney David Rivera. “Federal investigators will continue to aggressively pursue all evidence available in this case, to wherever, and to whomever, that evidence leads.”
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," stated Christopher A. Henry, Special Agent in Charge. "At the IRS, protecting taxpayer money is a matter we take very seriously. With the help of our law enforcement partners, we will vigorously pursue those who undermine the integrity of the U.S. tax system, and work to recover any monetary loss to the U.S. Treasury."
"Identifying financial crimes that threaten the health of our national economy and exposing criminals who attempt to steal from law-abiding taxpayers will continue to be a major investigative priority for HSI," said Acting Special Agent in Charge of HSI New Orleans Cindy M. Johnson.
The case is being jointly investigated by the Internal Revenue Service- Criminal Investigations; Homeland Security Investigations; and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Hilliard Hester.
Essex County Man Sentenced to 13 Years in Prison for Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. – A Newark, New Jersey, man was sentenced to 156 months in prison for robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
DaQuaan Vaughn, 36, previously pleaded guilty before U.S. District Judge Anne E. Thompson to a superseding information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Vaughn also pleaded guilty to an unrelated count of firearms trafficking in connection with his unlawful sale of firearms between April and June 2012. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2012, Vaughn, Lavell Jones, 29, of East Orange, New Jersey, Darrell A. Carter, 25, or Irvington, New Jersey, and Maryland Liggins III, 30, of Newark, robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
In addition to the prison term, Judge Thompson sentenced Vaughn to five years of supervised release and ordered him to pay $54,000 in restitution to Target. All of the defendants have the same restitution obligation until the full $54,000 is satisfied. Liggins also pleaded guilty to his role in the robbery and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Timothy Donohue Esq., West Orange, New Jersey
Elizabeth Public School District Pays $272,810 to Its School Lunch Program and $49,500 in Civil Penalties to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – The Elizabeth Public School District has agreed to credit its School Lunch Program $272,810 and pay $49,500 to the U.S. Department of Justice to settle allegations that it improperly used federal and state funds to provide meals and catering services for school board meetings and other special functions.
The announcement was made today by U.S. Attorney Paul J. Fishman and Special Agent-in-Charge William G. Squires of U.S. Department of Agriculture (USDA), Office of Inspector General.
The school district participates in the USDA’s National School Lunch Program, which provides reimbursement payments to ensure low-cost or free meals (breakfast, lunch and snacks) for certain qualifying students. The USDA administers the program, while oversight, compliance and general administration is done by the N.J. Department of Education, Office of Fiscal Accountability and Compliance (OFAC) and the state Department of Agriculture (NJDA), Division of Food and Nutrition.
The district receives federal and state funds designated specifically for the lunch program. Those funds must be kept separate and independent from other funds and used solely for approved lunch program purposes. The district may generate revenue for its lunch program by selling snacks and meals and providing catering services, but all money used for and earned from these services must be used solely for the lunch program.
According to the settlement agreement:
Between July 1, 2008, and June 30, 2014, the district failed to collect, reimburse, or apply $182,243 to its lunch program for catering services provided to its Board of Directors and $90,567 for catering services provided to various schools, principals, and administrators within the district for other special functions. The United States contends the district’s lunch program was deprived of the use of $272,810.
In addition to repaying the lunch program and paying penalties, the district will participate in training and be subject to three years of monitoring by OFAC and NJDA.
The civil settlement agreement is between the United States – acting through the U.S. Attorney’s Office for the District of New Jersey and on behalf of the USDA, OFAC, NJDA – and the Elizabeth Public School District.
U.S. Attorney Fishman credited OFAC, NJDA, and the USDA, Office of the Inspector General, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Valorie D. Smith of the U.S. Attorney’s Office Civil Division in Newark.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Defense counsel: Bruce S. Rosen Esq., Florham Park, New Jersey
East Amherst Man Indicted for Bankruptcy 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 a federal grand jury has returned an indictment charging Marc Korn, 58, of Amherst, NY, with bankruptcy fraud. The charges carry a maximum sentence of five years and a fine of $250,000.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the indictment, Korn made false statements under oath during a bankruptcy proceeding concerning the ownership of safe deposit boxes. The indictment further states that the defendant failed to disclose life insurance policies transferred to another person, and concealed assets from his creditors.
Korn was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
Korn is currently under federal indictment on charges of wire fraud, bank fraud, and failure to pay over employment taxes, as well as making false statements to law enforcement which carry a maximum penalty of 30 years in prison, a fine of $1,000,000 or both. A trial on those charges is scheduled to begin on May 20, 2015.
Today’s arrest is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
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.
Domestic violence offender convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Thomas J. Miller, 41, of Benwood, West Virginia, was convicted today in federal court of unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Miller was previously convicted of the misdemeanor offense of “Domestic Battery” in the Circuit Court of Tazewell County, Illinois. As a result of that conviction, he is prohibited from possessing any firearms. He was discovered in January 2015 in Marshall County, West Virginia in possession of two rifles.
Miller pled guilty today to one count of “Domestic Violence Offender in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Perri prosecuted the case on behalf of the government. The West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Convicted Felon Indicted for Gun Crimes and Witness TamperingRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced today that a federal grand jury has returned a Superseding Indictment charging QUENTRELL D. FOUNTAIN, age 27, of Baton Rouge, Louisiana, with possessing a firearm while a convicted felon, tampering with a witness and victim, retaliating against a witness and victim, and discharging a firearm during the commission of crimes of violence. If convicted, the defendant faces a significant term of imprisonment, fines, restitution and the forfeiture of all property involved or used in the commission of the crimes.
The Superseding Indictment alleges that on January 8, 2014 FOUNTAIN beat and threatened his victim with a firearm, stating: “If I wanted to kill you, I could kill you.” According to the Indictment, after law enforcement learned of the incident, FOUNTAIN threatened the victim stating: “I am going to show you for calling the police.” Later that night, FOUNTAIN allegedly fired multiple gunshots in the vicinity of the victim’s residence, while the victim and her child were inside. Later, on March 2, 2014, FOUNTAIN allegedly fired a gun at a vehicle carrying the victim and two other individuals. According to the Indictment, on June 17, 2014 FOUNTAIN was discovered by the U.S. Marshal’s Fugitive Task Force in possession of a firearm.
U.S. Attorney Green stated: “Stopping gun violence and witness tampering are high priorities for this office. Those seeking to undermine the integrity of the criminal justice system by tampering with victims and witnesses will face severe consequences in federal court, particularly when a firearm is involved.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Baton Rouge City Police, and the Port Allen City Police. It is being prosecuted by Assistant United States Attorney Kevin Sanchez.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Coloradan Sentenced for California Marijuana ConspiracyRead the Press Release
FRESNO, Calif. —Mark Jeff Zeldes, 53, of Broomfield, Colorado, was sentenced today to three years and eight months in prison for a conspiracy in California to manufacture, distribute and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced. Zeldes was also ordered to forfeit over 300 pieces of equipment used for the indoor cultivation of marijuana.
This sentence follows Zeldes’ guilty plea earlier this year. In sentencing Zeldes, Senior U.S. District Judge Anthony W. Ishii considered court documents which indicate that Zeldes was responsible for a large-scale marijuana cultivation and distribution operation with multiple indoor grow locations in Bakersfield, Newbury Park, and Northridge, California. Law enforcement officers seized 1,856 marijuana plants in connection with those operations.
Court records also indicate that, at the time of his arrest in Colorado, Zeldes had several locked and loaded firearms in his residence, as well as several rounds of ammunition, including an automatic weapon magazine capable of holding 100 rounds of ammunition. Following his arrest, Zeldes was brought before a U.S. Magistrate Judge in Denver, who ordered him detained as a flight risk and danger to the community. In ordering his detention, the court cited to Zeldes’ ongoing involvement in marijuana cultivation and distribution activities, including a $9 million contract with private investors to operate a marijuana grow.
This case was the product of an investigation by the U.S. Drug Enforcement Administration with assistance from the U.S. Marshals Service and Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.
Docket #: 1:14-cr-077 AWI
Clarence Physician Pleads Guilty to Distributing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Matthew Bennett, 49, of Clarence, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to unlawfully distributing and dispensing oxycodone, a controlled substance. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.As part of his plea, the defendant will surrender his medical license. Bennett will also forfeit $19,000 in United States currency.
“By putting personal greed ahead of his legal and professional obligations, this doctor crossed the line and in effect became a drug dealer with a degree,” said U.S. Attorney Hochul.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on seven occasions between May and July 2012, Bennett issued prescriptions for controlled substances to undercover law enforcement officers without a proper medical examination and outside the norms of professional medical treatment. In addition, on several occasions, Bennett gave prescriptions to the undercover officers in exchange for items such as paper products and a gas grill.
Some of the prescriptions were written at the defendant’s office at 624 River Road in North Tonawanda but physical examinations were never performed. Other prescriptions were dispensed at Bennett’s home on Hunting Valley Road in Clarence.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, the Niagara County Drug Task Force, under the direction of Sheriff James Voutour, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the West Seneca Police Department, under the direction of Chief Daniel Denz, and the New York State Attorney General=s Medicaid Fraud Control Unit.
Sentencing is scheduled for July 30, 2015 at 12:30 before Judge Arcara.
Charles Town, WV man sentenced to 2 ½ years for heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Woodward, 34, of Charles Town, West Virginia, was sentenced today to 30 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Woodward was discovered in possession of heroin in May 2014 during an investigation by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration. He pled guilty in December 2014 to one count of “Possession with Intent to Distribute Heroin.”
In another matter, Justin Troy Clark, 22, of Baltimore, Maryland, was sentenced to 8 months in prison for selling crack cocaine in Martinsburg, West Virginia in October 2013. He pled guilty in January 2015 to one count of “Distribution of Cocaine Base,” following an investigation by the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
Assistant United States Attorney Paul Camilletti prosecuted the cases on behalf of the government.
Chief U.S. District Judge Gina M. Groh presided.
Chairman of the Board of Forcefield Energy Inc. Arrested for Securities Fraud ConspiracyRead the Press Release
Richard St. Julien, the Executive Chairman of the Board of Directors of ForceField Energy Inc. (ForceField), a publicly traded company whose common stock was listed on the NASDAQ under the ticker symbol FNRG, was arrested late Friday evening on charges of securities fraud conspiracy1. The arrest occurred as St. Julien was preparing to board a plane in Ft. Lauderdale bound for Costa Rica. The defendant’s initial appearance for removal proceedings to the Eastern District of New York occurred this afternoon before United States Magistrate Judge Lurana S. Snow, at the United States District Court in Ft. Lauderdale, Florida.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
ForceField purports to be a worldwide distributor and provider of LED lighting products and solutions. According to the criminal complaint unsealed this morning in Brooklyn federal court, since approximately August 2012, St. Julien and his co-conspirators engaged in a scheme to manipulate the price and trading volume of ForceField’s stock by using undisclosed nominee accounts, including an account held by a dermatologist in Boulder, Colorado, to purchase and sell the stock, and through the use of stock promoters and broker dealers who failed to disclose to potential investors that they had been paid by St. Julien to promote the purchase of the stock. St. Julien did not disclose his ownership and control of the shares purchased through nominees and used offshore banks, including in Belize, to pay the nominees to conceal his ownership and control. St. Julien coordinated the purchases by telephone and text messages.
As detailed in the complaint, at the end of January 2015, St. Julien allegedly paid approximately $50,000 to a stock promoter through the dermatologist in Colorado. A few days later, the stock promoter began promoting the purchase of ForceField shares on its publicly available Facebook page, disclosing that his company had been paid $25,000 by an entity unrelated to St. Julien, or the dermatologist.
Through his scheme, St. Julien and his co-conspirators deceived the investing public by creating the appearance of genuine trading volume and interest in ForceField’s stock, and as a result, from approximately January 2014 to April 2015, the price of the stock rose from a low of $4.55 per share to a high of $7.82 per share.
“As Chairman of the Board of a publicly traded company, St. Julien owed a duty of full disclosure to ForceField’s investors and shareholders. However, instead of protecting their interests by enforcing required disclosures and transparency at the company, St. Julien engaged in a stock trading scheme that was crafted on lies and deceit. Corporate insiders are on notice that we will bring to justice those who seek to deceive the investing public,” stated United States Attorney Lynch. Ms. Lynch expressed her appreciation to the FBI, the agency responsible for leading the government’s investigation, and to the United States Securities and Exchange Commission for its cooperation and assistance in the investigation.
“St. Julien had a fiduciary responsibility to act in the best interest of ForceField and its shareholders. He did neither. As alleged, St. Julien used backroom promoters and broker dealers to boost the price of ForceField by 58%, in violation of securities laws,” stated FBI Assistant Director-in-Charge Rodriguez.
If convicted, the defendant faces a maximum sentence of 25 years’ imprisonment.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney Jacquelyn M. Kasulis is in charge of the prosecution.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
RICHARD ST. JULIEN
Age: 46
Residence: San Jose, Costa Rica
________________________________________________________________________
1 The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Camden County Man Sentenced to 20 Years for Forced Sex TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Camden County, Mo., man was sentenced in federal court today for the forced sex trafficking of two women.
Joshua Kain Smith, 36, of Camden County, was sentenced by U.S. District Judge Gary A. Fenner to 20 years in federal prison without parole. The court also ordered Smith to serve a lifetime of supervised release following incarceration, and ordered him to pay $23,406 in restitution to one of his victims.
On Aug. 12, 2014, Smith pleaded guilty to one count of sex trafficking and one count of attempted sex trafficking. Smith admitted that he used force, threats of force, fraud and coercion to cause a person (identified in court documents as “FV1” – Female Victim 1) to engage in prostitution, from which he benefitted financially, between Nov. 15, 2011, and March 15, 2012. Smith also admitted that he used force, threats of force, fraud and coercion in an attempt to cause another person (identified in court documents as “FV2” – Female Victim 2) to engage in prostitution between Dec. 1, 2010, and Nov. 15, 2011.
Smith met FV1 on a dating Web site in 2011. Shortly after they began dating Smith became physically abusive. Smith was possessive and wanted FV1 around him at all times. When FV1 first met Smith she had a job at a hotel but lost the job when Smith forced her to stop working. Smith arranged for FV1 to have sexual activity with other men and told her she did not have a choice but to participate. Smith demanded the money FV1 received in exchange for sexual activity.
Smith physically abused FV1 and threatened to kill her and her family if she left him. In December 2011 Smith threatened to kill FV1 if she did not travel to Florida with him. Smith also threatened to harm his own family members if she ever contacted authorities for help. Smith threatened her with a knife and tied her up on one occasion. While in Florida, Smith forced FV1 to commit commercial sex acts with customers to support him and his drug habit. After FV1 was raped by a group of men while purchasing drugs for Smith, she was able to get away with the help of one of Smith’s family members. FV1 has since obtained an order of protection against Smith.
Smith met FV2 through an Internet dating service and they began dating in December 2010. The day after FV2 initially met Smith she bailed him out of jail in Eldon, Mo., and attempted to break up with him at that time. Smith became enraged, threatened to kill FV2 and tore all of FV2’s clothing off. For the next year FV2 was in a physically, emotionally and sexually abusive relationship with Smith. FV2 stated that Smith physically assaulted her on numerous occasions, and on at least two occasions wrapped a belt around her neck until she passed out. FV2 estimated Smith threatened to kill her and her family at least 100 times. Smith attempted to convince FV2 to have sex with other men. Smith solicited FV2 to help him open an escort service but she refused.
FV2 subsequently obtained an order of protection against Smith, which he violated on numerous occasions. FV2 maintained many of the threatening texts and e-mails she received from Smith to assist the police in the event she was murdered. Smith posted Craigslist advertisements without her knowledge or consent, advertising FV2 for sexual activity. FV2 received well over 100 telephone calls from men responding to the advertisements.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
Connecticut Man Sentenced to 1,440 Months in Prison for Conspiracy to Distribute SpiceRead the Press Release
Gulfport, Miss - Rasheed Ali Muhammad, age forty-two (42), of Bridgeport, Connecticut, was sentenced to a total of 1,440 months in federal prison (240 months on each of six counts) followed by three years of supervised release for conspiracy to possess with intent to distribute and possessing with intent to distribute bath salts (methylone, a-PVP and 4-MEC) and chemicals used in the manufacture of spice (AM2201), announced U.S. Attorney Gregory K. Davis and DEA Special Agent in Charge Keith Brown. Muhammad was also ordered to pay a $25,000 fine and restitution of $121,425.61 to United Parcel Service.
In January, 2015, Muhammad was found guilty by a jury following a five day trial in U.S. District Court in Gulfport.
From sometime in 2012, Muhammad was ordering chemicals to produce spice and bath salts from manufacturers in the People’s Republic of China and then marketing them for sale on websites in the United States. Muhammad was shipping these products through the use of fraudulent United Parcel Service accounts. His co-defendant, Roslyn Chapman from Gulfport, Mississippi, pled guilty to conspiracy to distribute.
This case was investigated by the Drug Enforcement Administration, the Ocean Springs and Gulfport Police Departments and the Connecticut State Police. It was prosecuted by Assistant U.S. Attorney John Meynardie.
Atlantic City, New Jersey, Bookkeeper Admits Lying to Federal InvestigatorsRead the Press Release
CAMDEN, N.J. – A bookkeeper at an Atlantic City, New Jersey, rolling chair company today admitted lying to federal agents during an investigation into unreported cash taken from the business, U.S. Attorney Paul J. Fishman announced.
Abdus Mian, 66, of Atlantic City, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of making materially false statements to federal agents.
According to documents filed in the case and statements made in court:
Mian was the bookkeeper for Royal Rolling Chairs LLC, an Atlantic City business that provided rolling chair transportation services to patrons on the Atlantic City boardwalk. Mian admitted that he maintained a second set of books that tracked the cash that William Boland, 58, of Ventnor City, New Jersey, and two other owners were removing from the business and not reporting to the IRS.
Mian admitted that he was interviewed by IRS and FBI special agents on June 9, 2011, at which time he was asked questions about his role as bookkeeper. Mian falsely stated that he only maintained one set of books, never prepared a second set of books and was unaware of the owners taking cash out of the business.
The false statements charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is currently scheduled for July 29, 2015.
On Oct. 30, 2014, Boland admitted conspiring with his two partners at Royal Rolling Chairs to defraud the IRS of $119,880 in income taxes over the course of three years. Boland is scheduled to be sentenced by Judge Rodriguez on July 14, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Camden and Trial Attorney Tino Lisella of the Tax Division of the U.S. Department of Justice.
Defense counsel: Steven I. Kaplan Esq., Northfield, New Jersey
Albion Man Arrested for Importing Synthetic DrugsRead 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 Donald Stirk, 35, of Albion, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of a Schedule I controlled substance, conspiracy to import and importing a Schedule I controlled substance, and smuggling. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank Pimentel, who is handling the case, stated that according to the complaint, on March 5, 2015, Customs and Border Protection officers in Memphis, Tennessee selected a package mailed from China to a “Donald Starks” in Albion, NY for routine inspection. The contents of the package were listed as “Betaine HCL,” a dietary supplement. Further inspection revealed the package actually contained Alpha-PVP, a Schedule I controlled substance.
The complaint further states that on March 13, 2015, law enforcement officers determined there was another package from China addressed to “Donald Starks” at the Albion Post Office. Further inspection revealed the package contained Alpha-PVP. As the investigation continued, law enforcement officers continued to identify more packages from China intended for the defendant.
On April 15, 2015, a search warrant was executed at Stirk’s residence on State Route 31 in Albion. According to the complaint, the defendant purchased the chemicals to help him with his mental illness. Stirk also sold the chemicals to another individual.
Following his arrest, the defendant made an initial appearance on April 17, 2015 before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on April 23, 2015.
The complaint is the culmination of an investigation on the part of Special Agents of 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.
18 April 2015
Attorney General Statement on the 20th Anniversary of the Oklahoma City BombingRead the Press Release
Attorney General Eric Holder released the following statement to commemorate the 20th anniversary of the Oklahoma City bombing:
“Twenty years ago, domestic terrorists struck at the heart of all that this country stands for – liberty, democracy and the rule of law. The toll of their heinous and cowardly act – in lives lost and families shattered – devastated our public servant community and shook the confidence and faith of our nation. But through the resilience of Oklahomans and the strength of the American people, we recommitted ourselves to the fundamental values that make this country a beacon of freedom, fairness and opportunity. In the years since, the Department of Justice has rededicated itself to the fight against homegrown threats and has been aggressive in going after those who would inflict violence on their fellow citizens. Our measures have been effective and our record is strong, but we must remain vigilant – public servants and citizens alike – in our efforts to identify potential threats before they cause harm.
“To that end, last year, I relaunched the Justice Department’s Domestic Terrorism Executive Committee, which had originally been established by Attorney General Janet Reno in response to the bombing in Oklahoma City. Through its meetings and ongoing efforts, the committee serves as a vital forum for members of the Justice Department, the FBI and a number of other law enforcement agencies across the federal government to assess and share information about domestic terror threats and developments. It is a part of the critical progress we have made in the wake of Oklahoma City. And it is one of the many ways in which we pay tribute to the lives and the legacies of the 168 men, women, and children who were taken from us on that tragic day two decades ago.
“As we mark this somber anniversary and as many gather at what is now a beautiful and inspiring memorial in Oklahoma City, our thoughts and prayers are with those who lost lives and loved ones. We will continue to honor their memory. And in the days, months and years ahead, we will continue to uphold the values of this nation – a nation that stands strong, a nation that overcomes and a nation that moves forward, inexorably, toward that more perfect Union our founders imagined for us all.”
17 April 2015
“Drug Dealer and Car Thief” Sentenced for Immigration OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Miguel Rivera-Bugarin was sentenced on April 17, 2015 to 84 months (7 years) in prison for Illegal Re-Entry After Deportation By An Aggravated Felon.
Rivera-Bugarin, 33, is a citizen of Mexico who has been previously deported or removed from the U.S. to Mexico on nine separate occasions.
Rivera-Bugarin pled guilty to the federal charge on December 13, 2014. He has been continuously confined since his arrest by Madison County Sheriff’s deputies on August 21, 2014, for Possession of Methamphetamine, a state offense for which he was subsequently convicted.
At his federal sentence hearing on April 17th, U.S. District Court Judge David R. Herndon observed that "Mr. Rivera-Bugarin is a career criminal, drug dealer and car thief." Judge Herndon further noted that Rivera-Bugarin had ignored the orders of nine other judges who had previously instructed him not to return to the United States, and that the relatively short prison sentences which Rivera-Bugarin had received in the past "did not seem to serve as a deterrent."
The investigation which resulted in Rivera-Bugarin’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA) and by the Madison County Sheriff’s Department.
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Woodstock Man Sentenced to 12 Years in Prison for Child Pornography OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN HARDING, 29, of Woodstock, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 144 months of imprisonment, followed by 15 years of supervised release, for receiving and possessing child pornography.
According to court documents and statements made in court, between July 16, 2013 and October 30, 2013, HARDING received images and videos of child pornography that he downloaded from individuals via the Internet using a peer-to-peer file sharing program. During a search of the residence on October 30, 2013, law enforcement officers seized computers and a thumb drive. Forensic analysis of HARDING’s computers and thumb drive revealed more than 600 image files and videos of child pornography. He also possessed images of a partially naked 13-year old boy that he knew.
On November 20, 2014, HARDING pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
After his arrest on November 26, 2013, HARDING was released on bond and placed on home confinement with GPS monitoring. At the conclusion of today’s sentencing proceeding, he was remanded to custody to begin serving his sentence
This matter was investigated by Homeland Security Investigations and the Connecticut State Police Computer Crimes Unit. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Woman Sentenced for Selling Counterfeit Samsung BatteriesRead the Press Release
HOUSTON – Graciella Balderrama-Acevedo, 53, has pleaded guilty and was sentenced for her part in a conspiracy to sell counterfeit Samsung batteries, announced U.S. Attorney Kenneth Magidson along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
At the hearing today, the court heard from a representative of Samsung who explained Samsung takes pride in producing quality products. He noted that they take very seriously and are extremely concerned anytime counterfeit products, that are a violation of their trademark, are introduced into the United States. Of particular concern is when they pose such a public safety risk like counterfeit lithium-ion batteries. U.S. District Judge Gray H. Miller found Balderrama responsible for more than $90,000 in restitution to Samsung and will serve 12 months and 1 day in federal prison. Balderrama is a Mexican citizen who had resided in Houston and is expected to face deportation proceedings following her release from prison.
Balderrama engaged in a conspiracy to traffic in counterfeit goods. Balderrama received the lithium-ion batteries from an individual in China who was engaged in sending them in bulk to people in the U.S. who then forward the counterfeit products on to individual Ebay purchasers.
On Oct. 30, 2014, a search warrant was executed at Balderrama’s home. At that time, authorities found the packaging, additional batteries as well as text communications from Balderrama supporting her involvement in this conspiracy. In some of those messages with her contact in China, she makes admissions as to knowledge of the counterfeit items but agrees to continue working.
Balderrama admitted to authorities she knew the batteries were not actual Samsung batteries but continued to package and sell them anyway.
Counterfeit Lithium-ion batteries are a public safety concern because they do not follow safety regulations and have been found to set themselves on fire and harm individuals. This is especially a growing problem in China where the batteries are made.
Those charged in relation to this case were identified through an investigation conducted by HSI. The case is being prosecuted by Assistant U.S. Attorneys Celia Moyer and Richard Bennett.
West Bloomfield Man Sentenced in Multi-Million Dollar Cellphone Trafficking SchemeRead the Press Release
A West Bloomfield man was sentenced to twelve months in federal prison and ordered to forfeit $600,000, for his role in a scheme to traffic in cellular telephones, announced United States Attorney Barbara L. McQuade. Joining McQuade in the announcement was Marlon Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The sentencing caps a more than three-year probe by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). U.S. District Judge Nancy G. Edmunds imposed sentence on Jason Floarea, 29, of West Bloomfield, the former president of ACE Wholesale in Troy and Taylor, Michigan. As part of the sentencing, Floarea forfeited his interest in approximately $1,000,000 in seized funds and assets and was ordered to pay a $120,000 forfeiture money judgment. In addition, Floarea will be under the supervision of the court for a period of 24 months following his release. According to court documents, Floarea used ACE Wholesale to sell stolen and fraudulently obtained cellphones. The phones were modified to function on any mobile network through a process known as “jailbreaking.” Floarea then shipped to phones overseas buyers at costs far exceeding their retail price, sometimes up to $3,000 each. The investigation showed that Floarea obtained phones from straw purchasers who entered into cellular service contracts that provided buyers with cellular phones at either no cost or low promotional costs, a practice called “credit muling.” Credit muling occurs when recruiters solicit individuals to purchase cellphones in bulk by entering into contracts that they have no intention of fulfilling. During one 2012 outbound inspection, special agents discovered ten boxes containing 300 cellphones, which were later determined to be obtained by fraud. In 2012, HSI special agents searched businesses, homes and warehouses belonging to Floarea in Troy, Taylor, West Bloomfield and Atlanta, Georgia. Floarea’s offices were equipped with armed guards and bulletproof glass. “This sentence will no doubt send shock waves throughout the illegal, underground cell phone trafficking network which continues to be a source for robberies and other violent crimes in metro areas throughout the country,” said Marlon Miller, Special Agent in Charge of HSI Detroit. “The individuals and groups operating these schemes should be warned that HSI has the unique authorities and expertise to bring down these networks wherever they operate.” The Taylor and Romulus Police Departments and the Wayne County Airport Authority assisted with the investigation. According to Mr. Miller, the latest industry studies estimate credit muling contributes to approximately $50 million in annual losses to the telecommunications industry. Analysts say stolen and lost cellphones cost American consumers up to $30 billion each year.Villa Grove Man Sentenced to 17 ½ Years in Prison for Sexual Exploitation of Multiple ChildrenRead the Press Release
Urbana, Ill. – A Villa Grove man, whose last known address was the Knight’s Inn in Arcola, Ill., David E. Auteberry, 54, of Villa Grove, today was sentenced to 17 ½ years (210 months) for sexual exploitation of minors, announced U.S. Attorney Jim Lewis, Central District of Illinois. In addition, U.S. District Judge Colin S. Bruce ordered Auteberry to register as a sex offender for his natural life and to remain on supervised release for an additional 10 years following completion of his prison sentence.
Auteberry pled guilty on September 16, 2014, to four counts of sexual exploitation of a minor and agreed to the forfeiture of all of his computer media. According to court documents, Auteberry targeted minors through a popular social networking website, posing as a teen-aged boy. Auteberry coerced the minors to engage in sexually explicit conduct and produce images of said conduct. Auteberry was arrested on May 2, 2014 and has remained in the custody of the U.S. Marshals Service since his arrest.
The case was prosecuted by Assistant U.S. Attorney Elly Peirson. The charges were investigated by the Federal Bureau of Investigation.
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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney’s Office Presents “Your Future, Your Decision” Program to more than 100 Students at Woodland AcademyRead the Press Release
BOSTON – The United States Attorney’s Office, in partnership with Worcester Public Schools, the Worcester County District Attorney’s Office and the Worcester Police Department, conducted a youth violence prevention event on Wednesday, April 15, 2015 for 110 fifth and sixth-grade students at Woodland Academy in Worcester.
The “Your Future, Your Decision” program has been presented by the U.S. Attorney’s Office to over 2,700 middle school students around the state, combining an emphasis on the importance of good decision-making skills with a resource fair featuring after-school and summer activities. Speakers representing the U.S. Attorney’s Office, District Attorney’s Office, Worcester Public Schools and Police Department told the students about the choices they made along the way that kept them on a positive path in their lives. Worcester native Jeffrey Lassey also made a powerful presentation to the young people about poor decisions that he made as a young person and the consequences he faced, including prison time. Topics that were spotlighted included involvement with gang activity, guns, drugs, bullying, and the legal and social consequences that can impact the students’ futures, particularly affecting their ability to get jobs, housing and admission to college.
U.S. Attorney Carmen Ortiz said, “It’s extremely important that we get the message to middle school students that this is the time to start thinking about the decisions they make every day and how those choices can affect the rest of their lives. Many outside factors are influencing our youth, and the best possible tool for them is the resiliency to be able to step back and evaluate their options when faced with difficult decisions. That’s what we endeavor to provide with the ‘Your Future, Your Decision’ program.”
According to Woodland Academy Principal Patricia Padilla, “Woodland Academy students were very fortunate to take part in the ‘Your Future, Your Decision’ program. Having the opportunity to hear powerful messages about making positive choices, has equipped them with the strategies needed when faced with challenging situations throughout their lives.”
Following the speaker presentations, the students visited a resource fair in the school’s gymnasium offering information on after-school and summer programs. Agencies participating in the fair included the Worcester Boys & Girls Club, Clark University Basketball Camp, Friendly House Neighborhood Center, Girl Scouts of Central and Western Massachusetts, Guild of St. Agnes, Salvation Army’s Bridging the Gap Program, Worcester Public Library, Worcester YMCA and Worcester Youth Flag Football. A resource guide, developed by the U.S. Attorney’s Office and produced by Worcester Public Schools, was also provided to students. The guide provides information about activities and programs in the City of Worcester.
Two KC Men Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two members of a drug-trafficking organization that distributed at least 10 kilograms of methamphetamine in the Independence, Mo., and Kansas City, Mo., area have been sentenced in federal court.
Alberto Manuel Piggott, 32, and Diamond Lynell Cooper, 34, both of Kansas City, Mo., were sentenced by U.S. District Judge Gary A. Fenner. Piggott was sentenced today to 20 years in federal prison without parole. Cooper was sentenced on Thursday, April 16, 2015, to 16 years and eight months in federal prison without parole.
The court also ordered Piggott and Cooper to forfeit $700,000 to the government for which they are jointly and severally liable, which represents the proceeds of drug-trafficking (based on a conservative street price of $2,000 per ounce and distribution of at least 10 kilograms of methamphetamine through the overall conspiracy).
On Sept. 25, 2014, Piggott pleaded guilty to participating in a conspiracy to distribute methamphetamine, participating in a money-laundering conspiracy, possessing methamphetamine with the intent to distribute, possessing a firearm in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
On Oct. 30, 2015, Cooper pleaded guilty to his role in the drug-trafficking and money-laundering conspiracies, and to aiding and abetting the use of a firearm in furtherance of drug trafficking.
Piggott admitted that, from 2009 to 2012, he and co-defendant Bonnie Cortez Hernandez, 39, of Kansas City, Mo., supplied the other conspirators with methamphetamine for further distribution. From May 5, 2010, to July 19, 2011, Piggott was found in possession of methamphetamine totaling over 50 grams and three weapons: May 5, 2010, vehicle stop and seizure of .20-gauge shotgun and 1.73 grams of methamphetamine; Dec. 22, 2010, vehicle stop and seizure of 21.23 grams of methamphetamine; Jan. 31, 2011, vehicle stop and seizure of 14 grams of methamphetamine; Feb. 24, 2011, vehicle stop and seizure of 19 grams of methamphetamine; April 4, 2011, vehicle stop and seizure of a shotgun and a 9mm Beretta handgun; and July 19, 2011, a stolen Taurus TCP 380 with six rounds.
Cooper admitted that he sold 1.4 grams of methamphetamine to a confidential informant on Aug. 23, 2011. On Sept. 13, 2011, a vehicle stop of Hernandez and Cooper was conducted and a stolen .45-caliber Sig Sauer and 37.69 grams of methamphetamine were seized. On Oct. 18, 2011, a vehicle stop of Cooper was conducted and a consent search of Hernandez’s residence was conducted and they resulted in the seizure of a 9mm Sky Industries pistol and 4.2 grams of methamphetamine. On Dec. 7, 2011, another vehicle stop of Cooper resulted in the seizure of 39.23 grams of methamphetamine.
Co-defendants Hernandez, Juliann Marie Savona, 30, and William Gregory Smith, 33, all of Kansas City, Mo., have pleaded guilty and await sentencing.
Co-defendant Brittany Michelle Dugger, 26, of Independence, Mo., was sentenced on March 18, 2015, to 11 years and eight months in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration, the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Convicted of Murder on Federal LandRead the Press Release
HOUSTON – Two men have entered guilty pleas, admitting they murdered a teenager in the Sam Houston National Forest, announced U.S. Attorney Kenneth Magidson.
Cristian Alexander Zamora aka Christian Zamora, Alexander, Alex or Pollo and Ricardo Leonel Campos Lara aka La Muerte entered pleas of guilty to aiding and abetting each other and others with the murder of a 16-year-old male victim on Sept. 22, 2013.
Zamora, 22, and Lara, 19, both of El Salvador, admitted they took part in the murder by striking the male victim with a bat and a machete multiple times. Zamora and Lara admitted they had received an order from MS-13 members to kill the teenager. After receiving the order, they assisted in taking him to the forest where they then struck him with a bat and machete to the point of near decapitation.
U.S. District Judge Ewing Werlein, accepted the pleas today and has set sentencing for July 10, 2015. They are facing life in federal prison.
The charges are the result of an investigation by the FBI, Houston Police Department, Texas Rangers and the Walker County Sheriff’s Office. Assistant U.S. Attorneys Mark E. Donnelly and Casey MacDonald are prosecuting the case.
Three Sentenced for Roles in Bribery Scheme at Big Spring Correctional CenterRead the Press Release
LUBBOCK, Texas — A former employee at Big Spring Correctional Center (BSCC), who admitted smuggling contraband into the facility for an inmate, the inmate, and another individual involved in the scheme, were sentenced this morning by U.S. District Judge Sam R. Cummings, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Eva Bermea, 42, of Big Spring, Texas, was sentenced to 36 months’ probation, with eight of those months to be served in home confinement. Bermea pleaded guilty on December 30, 2014, to one count of bribery of public officials and aiding and abetting. She worked as a Recreational Specialist at BSCC.
Jonas Cruz, 34, an inmate at BSCC, was sentenced to 24 months in federal prison, to be served consecutively to the 211-month federal sentence he is currently serving following a guilty plea in January 2004 to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in connection with a drug crime. Cruz also pleaded guilty on December 30, 2014, to one count of bribery of public officials and aiding and abetting.
Bermea’s friend, Kami Nicole Bennett, 32, of Big Spring, was sentenced to one year of probation. She pleaded guilty to a superseding information charging one count of misprision of a felony on December 30, 2014.
According to documents filed in the case, the investigation began in January 2014 when the Department of Justice Office of Inspector General (OIG) received information that Bermea was suspected of smuggling contraband into the prison for inmate Cruz.
The investigation revealed that Cruz had developed a close friendly relationship with Bermea, and in September 2013, they began to discuss smuggling contraband into the prison for Cruz to sell to other inmates. From September 13, 2013, to December 21, 2013, Bermea smuggled tobacco products and creatine into BSCC on three occasions for Cruz, who paid her $1,500. Cruz admitted he recruited his bother to receive the payments made to him by other inmates for the contraband. This brother would then send the money to Bennett, whom Bermea had recruited to assist in packaging the contraband to be smuggled, and to facilitate receiving and retrieving the money for smuggled contraband.
The Department of Justice OIG conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted the case.
Three Indicted in Connection with Two Separate Hash Oil Manufacturing OperationsRead the Press Release
A federal grand jury has indicted three people in connection with hash oil manufacturing that endangered young children, announced Acting United States Attorney Annette L. Hayes. Police and fire personnel responded to the homes in south Seattle and in Maple Valley after citizens expressed concern about the children in the homes. Investigating officers discovered hash oil manufacturing operations with highly explosive butane gas in the basement of each home, in one case, directly under the bedroom of the young children who live there. All three defendants will appear in U.S. District Court in Seattle.
In the south Seattle incident, JESSE RUSSELL DAVISSON, 36, has been charged with Endangering Human Life while Manufacturing a Controlled Substance, Maintaining a Drug Involved Premises and Manufacturing Hash Oil and Marijuana. Police reports indicate officers were called to the home on July 1, 2014, to check on the welfare of three children ages 13, 11 and 8. In the basement officers found a hash oil manufacturing operation with cans of butane scattered on the floor. Seattle Fire was called in to make sure any explosive gas was vented and ignition sources were disconnected. DAVISSON was arrested today and will make his initial appearance at 2:00 in U.S. District Court in Seattle.
In the second case, JOSHUA MATTHEW MAUK, 38, and DEBORAH ELIZABETH BRECHLER, 52, are charged with Endangering Human Life While Manufacturing Controlled Substances, Maintaining a Drug Involved Premises, and Manufacturing Hash Oil and Marijuana. On July 27, 2014, the King County Sheriff’s Office was called on to check on the welfare of two children at a home in Maple Valley. Due to evidence and information provided by a member of the public, the officers obtained a court authorized search warrant and responded with a bomb disposal unit. Officers located a homemade hash oil lab that used explosive solvents directly under the bedroom where two young children were sleeping. The couple operated a business dubbed “Home Blown Concentrates.” The lab was dismantled and the couple was charged in King County Superior court. Those charges will be dismissed with the filing of federal charges. MAUK and BRESCHLER will appear for arraignment on April 30, 2015.
Endangering Human Life While Manufacturing Controlled Substances is punishable by up to ten years in prison and three years of supervised release; Maintaining a Drug Involved Premises is punishable by up to 20 years in prison and three years of supervised release and Manufacturing Hash Oil and Marijuana is punishable by up to five years in prison and three years of supervised release.
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the Seattle Police Department and the King County Sheriff’s Office. The King County Prosecutors Office provided substantial assistance on these cases. The cases are being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Tennessee Sex Offender Sentenced to 25 Years in Prison for Enticement of A Minor and Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
Springfield, Ill. – A repeat child sex offender, Joseph Cain Harrison, 38, of Nashville, Tenn., was sentenced to 25 years (300 months) in prison today for enticement of a minor and two counts of travel with the intent to engage in illicit sexual conduct, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sue E. Myerscough sentenced Harrison in federal court in Springfield, Ill.
Harrison was convicted on December 5, 2014, of one count of enticement of a minor, two counts of travel with the intent to engage in illicit sexual conduct, and committing a felony sex offense on a minor while a registered sex offender. During Harrison’s three day trial held in Urbana, Ill., the government presented evidence that between July 1, 2011, to Jan. 20, 2012, Harrison used the Internet and a cellular telephone to entice an individual whom he believed to be 13 years of age to engage in sexual activity. The jury also heard evidence that Harrison traveled from Nashville, Tenn., to Champaign, Ill., on two occasions, Jan. 13, 2012, and Jan. 17, 2012, for the purpose of engaging in any illicit sexual conduct with a minor.
Harrison was indicted by a grand jury in March 2012, following his arrest in the Middle District of Tennessee on January 20, 2012. Harrison has remained in the custody of the U.S. Marshals Service since his arrest.
The charges are the result of an investigation by the U.S. Secret Service, Springfield, Ill., and Nashville, Tenn., divisions; the Champaign Police Department; and the Nashville Metropolitan Police Department Sex Crimes Unit. The case is being prosecuted by Assistant U.S. Attorney Elly Peirson with the cooperation of Champaign County State=s Attorney Julia Rietz.
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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ten Individuals to Be Honored During National Crime Victims’ Rights WeekRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that 10 individuals will be awarded Department of Justice Certificates of Appreciation as part of National Crime Victims’ Rights Week (NCVRW) 2015. The two ceremonies honoring these individuals will take place during NCVRW, April 19-25, where Mr. Seiler will present the honorees with their awards and provide brief remarks in recognition of their outstanding dedication, service, and contributions on behalf of crime victims.
The first ceremony will be held in Rapid City on Monday, April 20, 2015, at1:30 pm.
It will take place at the U.S. Attorney’s Office, located at 515 Ninth Street. The award recipient is Hollie Strand, an Education Specialist/Forensic Interviewer with Child Advocacy Center (CAC) of the Black Hills.Ms. Strand has worked at the CAC for over seven years, and has interviewed more than 1,100 children during that time. Through hundreds of trainings and presentations, she has been instrumental in bringing public awareness to the issue of child sexual abuse and other traumatic crimes, and has made an extraordinary difference in the lives of numerous children.
The second ceremony will be held in Sioux Falls on Thursday, April 23, 2015, at 1:00 pm. It will take place at the U.S. Attorney’s Office, located at 325 S. 1st Ave., Suite 300. There will be nine honorees at this ceremony.
The first honoree is Doug Thesenvitz, the Tribal Prosecutor for the Flandreau Santee Sioux Tribe. Mr. Thesenvitz has given 16 consecutive years to the tribe, steadfastly representing the rights of victims. He is one of the longest serving tribal prosecutors in South Dakota.
The remaining eight honorees were selected for their work in the area of sex trafficking. This team began a sex trafficking investigation in January of 2012, with a tip that one underage girl was being sold for sex. Using their full arsenal of investigative tools, they uncovered a loose ring of interconnected “pimps” selling dozens of girls and young women for sex in the Sioux Falls area and across several Midwest states. This interagency cooperation and professionalism resulted in four federal indictments and convictions. The sentences ranged from a 33-year prison term; three life sentences; four life sentences; and a 30-year prison term.
The team members and award recipients include the following:
Charla Aramayo
Special Agent - Department of Homeland Security InvestigationsGretchen Slate
Special Agent – SD Division of Criminal Investigation/FBI Joint Terrorism Task ForceGayle Scott
Victim Specialist – FBIMatthew J. Miller
Special Agent – FBIMichael D. Melcher
Special Agent – FBIStephanie Knapp
Child/Adolescent Forensic Interviewer – FBI Office for Victim Assistance in Loveland, COCullen McClure
Officer – Sioux Falls Police Department - Street Crimes UnitBrad Smidt
The Victims of Crime Act was passed by Congress in 1984, and NCVRW honors and celebrates the achievements of the past thirty years in securing rights, protections, and services for victims. For additional information, visit the Office for Victims of Crime website at www.ovc.gov
Detective – Sioux Falls Police Department - Street Crimes Unit
Suitland Man Charged in Fatal Shooting at the U.S. Census BureauRead the Press Release
Greenbelt, Maryland – A criminal complaint was filed today in U.S. District Court in Maryland charging Ronald Anderson, age 48, of Suitland, Maryland, with kidnapping, murder, using and discharging a firearm during a crime of violence, and causing death by use of a firearm during a crime of violence.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Director Eric Patterson of the Federal Protective Service, Department of Homeland Security.
According to the affidavit filed in support of the criminal complaint, on April 9, 2015 Anderson abducted victim 1 at gun point from the 1800 block of 3rd Street, NE, Washington, D.C. Anderson drove victim 1 to the rear of his apartment complex in Suitland, Maryland. On the way, he called another person (victim 2) and asked her to meet him at his apartment. When Anderson and victim 1 arrived at the apartment complex, Anderson parked next to victim 2’s vehicle. Anderson exited his car and approached the driver’s side of victim 2’s vehicle. Victim 2 saw that victim 1 was crying and victim 1 mouthed words to victim 2 asking for help. Victim 1 got out of Anderson’s vehicle and into victim 2’s Honda CRV. Victim 2 sped off with victim 1. Anderson got back into his car and pursued the CRV at a high rate of speed.
Victim 2 fled to the U.S. Census Bureau building at 4600 Silver Hill Road in Suitland, because she knew there were armed security officers there. As victim 2 drove into the Census Bureau complex, Anderson continued to pursue the CRV. As Anderson continued to chase her, Victim 2 crashed the Honda CRV into a light pole near two armed security officers, including Officer 1. Anderson stopped his vehicle behind the Honda CRV and exchanged gunfire with Officer 1, striking Officer 1 once in the chest. Anderson fired additional rounds at a second officer, but did not hit that officer. Anderson then fled from the Census Bureau in his dark colored Honda Accord. Prince George’s County Police Officers responded to the Census Bureau for a shooting in progress. Upon arrival, police officers located Officer 1, suffering from a gunshot wound. Officer 1 was transported to the Prince George’s County Hospital Center where he was pronounced dead.
Later that evening, Metropolitan Police Department (MPD) officers saw Anderson driving the Honda Accord and attempted to make a traffic stop. Anderson continued to flee, and fired numerous times at MPD officers. The pursuit concluded in the vicinity of 11th and H Street, NE in Washington DC. Anderson continued to fire at law enforcement. MPD officers returned fire, striking Anderson multiple times. One MPD officer was struck in the leg. Anderson and the MPD officer were transported to the hospital for treatment. Anderson had identification on him and his identity was further confirmed by a comparison of fingerprints taken from Anderson at the hospital. Law enforcement saw a .45 caliber handgun in plain view in the Honda Accord.
If convicted, Anderson faces a maximum sentence of death or life in prison. An initial appearance has not been scheduled. Anderson continues to undergo medical treatment and remains detained on related charges filed in the Superior Court for the District of Columbia.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Metropolitan Police Department, and the Federal Protective Service of the National Protection and Programs Directorate, Department of Homeland Security for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Bryan E. Foreman, who are prosecuting the case.
Smoke Shop Owner and Employee Charged with Conspiring to Distribute Synthetic Drugs That Led to Death of Area YouthRead the Press Release
CHICAGO — A former smoke shop owner and her employee were charged by criminal complaint yesterday for allegedly conspiring to distribute substances containing controlled substance analogues at the Cigar Box, a store formerly located in the Fox Valley Mall in Aurora, federal law enforcement officials announced today.
Ruby Mohsin, 52, of Glen Ellyn, and Mohammad Khan, 63, of Glendale Heights, were charged with conspiracy in United States District Court in Chicago. Both defendants will make their initial appearance at a date yet to be determined in U.S. District Court. According to the affidavit, between March 1, 2011 and August 12, 2011, defendant Mohsin purchased hundreds of packages of synthetic drugs such as iAroma and Zero Gravity containing controlled substance analogues from an Iowa-based manufacturer and distributor.
According to the affidavit, synthetic cannabinoids (sometimes referred to as synthetic marijuana) are a large family of substances with chemical structures similar to tetrahydrocannabinol (THC) in cannabis that mimic the effects of THC by acting on the same receptors in the central nervous system. Synthetic cannabinoid chemicals are typically manufactured in China and shipped to the United States in powder form. The powder is then mixed with acetone and sprayed on plant material such as marshmallow leaf and packaged for sale. These new drugs (or analogues) are not listed in the Controlled Substance Act, but still have the same dangerous effects as the scheduled substances or compounds. Accordingly, in 1986, Congress enacted the Controlled Substances Analogue Enforcement Act to address this issue.
On June 14, 2011, Mohsin sold three one-gram packages of “iAroma Hypnotic,” “iAroma Train Wreck,” and “iAroma Mango,” containing the controlled substance analogue JWH-210 for the sale price of $20 to 19-year old Max Dobner and a friend. Shortly afterwards, Max Dobner smoked a portion of the package of iAroma Hypnotic, suffered a severe adverse reaction, and died when he crashed his car into a house in North Aurora, Illinois. The FDA laboratory determined that the packages of iAroma Hypnotic, iAroma Train Wreck, and iAroma Mango that Mohsin sold to Max Dobner contained the controlled substance analogue JWH-210. A toxicology examination revealed the presence of JWH-210 in Max Dobner’s blood at the time of his death and no other drugs or alcohol.
According to the complaint affidavit, Mohsin and Khan continued to offer synthetic drugs containing controlled substance analogues for sale at the Cigar Box after Max Dobner’s death. On August 4, 2011, Khan sold two packages of “Head Trip” and “Kush Potpourri” containing the controlled substance analogue JWH-122 for $30 to an undercover Aurora Police officer.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis Wichern, Special Agent-in-Charge of the Chicago office of the Drug Enforcement Administration; John Redmond, Special Agent-in-Charge of the Food and Drug Administration’s Office of Criminal Investigations in Chicago, and Stephen Boyd, Acting Special Agent in Charge, IRS Criminal Investigation Division. The Kane County Sheriff’s Office, the Aurora Police Department, the Yorkville Police Department, and the Bettendorf, Iowa Police Department also assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Matthew M. Schneider.
The charge in the criminal complaint carries a maximum penalty of 20 years in prison and a maximum fine of $1,000,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Sex Offender Receives 22 Months in Federal Prison for Failing to RegisterRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Gary Gibson was sentenced today in federal court in Florence, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a). United States District Judge R. Bryan Harwell of Florence sentenced Gibson to 22 months imprisonment and 5 years supervised release.
Evidence presented during court proceedings established that Gibson was required to register as a sex offender because of his 2001 conviction in Oklahoma for Lewd Acts with Child under 16. Gibson, who has multiple prior convictions for failing to register as a sex offender, also failed to register as a sex offender when he moved to South Carolina in 2012.
The case was investigated by agents of the U.S. Marshal Service. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Scott AFB Airman Pleads Guilty to Obscenity ChargeRead the Press Release
Belleville resident, Steven M. Zachman, an active duty airman stationed at Scott Air Force Base, Illinois, pled guilty in federal district court today to a one-count felony information charging that he knowingly transported obscene matters in interstate commerce, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Zachman is scheduled for sentencing on July 24, 2015, at 11:00 a.m. before the Honorable David R. Herndon, United States District Judge. Zachman faces a maximum penalty of 5 years in federal prison, a $250,000 fine, and 3 years supervised release.
Court documents indicate that from August to November, 2013, Zachman knowingly used the photosharing and social networking website, Tumblr.com, to upload to the Internet digital images and videos depicting graphic bestiality, as well as approximately 20 images of prepubescent minors engaging in sexually explicit conduct. As part of his plea, Zachman admitted that the images he uploaded were obscene.
The case was investigated by the United States Air Force, Office of Special Investigations, and is assigned to Assistant United States Attorney Nathan D. Stump.