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16 April 2015
Manufacturer of Defective North Carolina Bridge Parts Pleads Guilty to Making False Statements on Highway ProjectsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court before United States District Judge Terrence W. Boyle, JOEL DE LA TORRE, 33, of Chicago, Illinois, pleaded guilty to Making False Statements Concerning Highway Projects, in violation of Title 18, United States Code, Section 1020, and Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A.
Investigation revealed in October of 2011 a federal highway contractor discovered a defect in a grouping of elastomeric bridge bearings that had been shipped for use on bridges in North Carolina. An elastomeric bridge bearing is a slab of rubber that is reinforced with multiple layers of steel and placed underneath bridges to absorb shock. The bearings were defective because the steel plates were exposed, subjecting them to the elements and creating the potential for deterioration.
The North Carolina Department of Transportation began an investigation and found systematic problems with the bearings that had been shipped, and in some instances installed, on bridge projects throughout the state. In total, 1,270 of the shipped bearings were found to be nonconforming and defective. The bearings were shipped in connection with 25 different highway projects in North Carolina between May of 2009 and October of 2011. Upon further investigation, the Department of Transportation found that many of the bridge bearings had come from a company named Delgado Elastomeric Bearings Corporation, located in the Chicago area.
The United States Department of Transportation conducted a criminal investigation into the creation and shipment of the defective bridge bearings. It was discovered that the North Carolina application to supply the bridge bearings to local contractors had been forged. The name of a teenager with no knowledge of how to manufacture bridge bearings was fraudulently used on the application. This teenager was also held out by Delgado Elastomeric Bearings Corporation as the vice president of the company, when in fact, the teenager had no idea of this title. This same name and title had also been used on all certificates sent to North Carolina highway contractors certifying the conformity of the bearings with applicable state and federal regulations.
Ultimately, the investigation revealed that the defendant, JOEL DE LA TORRE, had forged the name of the teenager on the documents described above. Inspection of the Chicago facility used to manufacture the bridge bearings revealed that the facility did not contain the required testing devices and machinery which would have revealed the defects in the bridge bearings.
Costs associated with the replacement of the bearings are expected to exceed $5 Million due to the difficulty in removing the bearings from beneath existing structures, engineering costs, and traffic control.
Sentencing is currently scheduled for July 2015. A violation of Making False Statements Concerning Highway Projects carries a maximum penalty of 5 years imprisonment, $250,000.00 fine, and 3 years of supervised release. A violation Aggravated Identity Theft carries a maximum penalty of 2 years imprisonment consecutive to any other sentence imposed, $250,000.00 fine and 1 year of supervised release.
The investigation of this case was conducted by the United States Department of Transportation, Office of the Inspector General, with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represents the United States.
Man Sentenced to 7 Years in Prison for Possession of MethamphetamineRead the Press Release
TULSA, Okla.—Juan Pablo Charre, 35, was sentenced by United States District Court Chief Judge Gregory K. Frizzell on Wednesday to serve 84 months in federal prison for possessing over 50 grams of methamphetamine with intent to distribute, announced United States Attorney Danny C. Williams Sr.
Following a traffic stop on October 18, 2014, Tulsa Police Department officers discovered approximately four pounds of methamphetamine concealed in a compartment of Charre’s vehicle. Charre was travelling from Texas to Tulsa. The drugs had a value of at least $46,000. Charre was charged on November 4, 2014, and pleaded guilty on January 5, 2015.
The superseding indictment also charged Charre’s nephew, Alejandro Cabrera Charre, 23, with conspiring to distribute and possession with intent to distribute methamphetamine. On January 28, 2015, following a three-day trial, a federal jury found Alejandro Charre guilty of conspiring with Juan Charre to bring the methamphetamine from Texas to Tulsa. Sentencing for Alejandro Charre is scheduled for May 6, 2015.
This case was investigated by the Tulsa Police Department’s Special Investigations Division and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Neal C. Hong and Timothy L. Faerber.
Luzerne County Man Sentenced for Bank Robbery and Hobbs Act RobberyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Townsley, age 43, of Luzerne County, was sentenced yesterday in federal court by United States District Court Judge Richard P. Conaboy to 151 months’ imprisonment for bank robbery.
According to United States Attorney Peter Smith, Townsley engaged in an 18-day crime spree beginning on December 24, 2013 and ending on January 10, 2014. The crime spree included two robberies of the First National Community Bank (branches in Kingston and Hanover Township), and seven robberies of various local businesses. Townsley previously entered guilty pleas to all charges filed in a criminal information on June 18, 2014.
For each robbery, Townsley used a black pellet gun that mirrored the look of a 9mm handgun as a threat of force and to instill fear in his victims. Townsley was arrested on January 13, 2014 and has remained in custody in the Lackawanna County Prison.
The charges are the result of an investigation by the Federal Bureau of Investigation with the assistance of many local police departments including Kingston, Kingston Township, Larksville, Hanover Township, Wilkes-Barre, Plains, Ashley, and Luzerne County District Attorney Detectives.
Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
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Longwood Scientist Ordered to Pay $199,825 to NASA for Wire FraudRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has ordered Donatus E. Asumu (52, Longwood) to pay $199,825 in restitution to the National Aeronautics and Space Administration (NASA) for wire fraud committed against the agency. The Court also ordered him to forfeit a Nissan automobile, a traceable proceed of the offense. In addition, Asumu was sentenced to serve one year of probation, including 45 weekends at the Brevard County Work Camp, and six months of home confinement. During the sentencing hearing, the Court made a finding that Asumu, who was represented by the Federal Public Defender, was not indigent and must pay back attorney’s fees pursuant to the Criminal Justice Act.
According to the plea agreement, between 2009, and continuing through 2012, Asumu, as president and owner of Aligned Concepts, LLC (“ACL”), fraudulently obtained two Small Business Innovation Research (“SBIR”) contracts from NASA valued at $199,825. He obtained the contracts by, among other things, (i) falsely representing to NASA that certain individuals would work certain hours on the contracts, when in fact those individuals did not work or perform any tasks on the contracts; (ii) falsely representing to NASA that he was not employed full-time by another organization, when in fact he was; (iii) falsely representing to NASA that ACL was a legitimate Small Business Concern (SBC); and (iv) falsely submitting invoices to NASA for work that was certified as complete per contract terms, when in fact ACL did not perform the work per those terms.
This case was investigated by NASA, Office of the Inspector General. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Laredoan Learns Fate After Alien Harboring Jury ConvictionRead the Press Release
LAREDO, Texas – Gustavo Villegas, 28, of Laredo, has been ordered to prison following his conviction on four counts related to harboring 21 illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Villegas Jan. 27, 2015, following a one-day trial and 90 minutes of deliberation.
Today, U.S. District Judge Janis Graham Jack, who presided over the trial, handed Villegas the 27-month sentence to be immediately followed by two years of supervised release.
At trial, the jury heard that Villegas took part in a conspiracy to smuggle and harbor illegal aliens in Laredo in July 2014. Villegas transported illegal aliens to a local Burger King restaurant as well as both the American Best Value Inn and Gateway Inn hotels in Laredo. Homeland Security Investigations (HSI) ultimately discovered a total of 21 illegal aliens at the hotels. Through ongoing investigation, agents tracked vehicles to Villegas and others and he was arrested on Oct. 23, 2014.
When HSI agents learned of a smuggling event which was to occur at an HEB parking lot in Laredo, they began conducting surveillance and witnessed a number of persons exit a Ford Focus car and get into a Dodge Durango truck Villegas was driving. Agents followed the vehicle to a Burger King where four of the people got out of the Dodge truck and boarded another vehicle bound for America’s Best Value hotel in Laredo. Several people got out and entered a room at the hotel. Agents witnessed similar activity leading them to the Gateway Inn hotel where more individuals were seen entering that hotel on two separate occasions. Eventually, agents knocked on the doors of both hotels and asked for consent from the occupants.
The jury heard and was provided evidence that Villegas had rented the room at America’s Best Value hotel which was found to hold seven El Salvadoran nationals and one Honduran national. Co-defendant Rodolfo Castaneda rented the Gateway Inn hotel room which held 13 El Salvadoran nationals.
At trial, the United States presented testimony from numerous HSI agents, the undocumented aliens as well as local hotel owners. The government also provided evidence of vehicle registration information connecting Villegas to multiple vehicles used in this conspiracy.
Villegas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Castaneda previously pleaded guilty and is awaiting sentencing.
HSI conducted the investigation. Assistant U.S. Attorneys Jorge Vela and Sanjeev Bhasker prosecuted the case.
Kansas City Man Drove Getaway Car in Five Bank RobberiesRead the Press Release
KANSAS CITY, KAN. - A Kansas City man pleaded guilty Thursday to federal charges of taking part in five bank robberies in Kansas and Missouri, U.S. Attorney Barry Grissom said.
Dale Williamson, 35, Kansas City, Mo., pleaded guilty to five counts of bank robbery. In his plea, he admitted driving a getaway car in the following bank robberies.
- April 24, 2014, UMB Bank, 6252 Raytown Road, Raytown, Mo.
- May 12, 2014, First Bank of Missouri, 7001 North Oak Trafficway, Gladstone, Mo.
- May 22, 2014, Bank of America, 15811 Metcalf Ave. Overland Park, Kan.
- May 30, 2014, Commerce Bank, 9501 Antioch Road, Overland Park, Kan.
- May 30, 2014, Commerce Bank, 3606 Frederick Ave., St. Joseph, Mo.
Sentencing is set for July 6. Both parties have agreed to recommend a sentence of 55 months in federal prison. Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Kanawha County man pleads guilty to possessing child pornographyRead the Press Release
CHARLESTON, W.Va. - A 58-year old Kanawha County man faces up to 20 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. Ronnie Eugene Naylor, of Elkview, West Virginia, entered a guilty plea before District Court Judge John T. Copenhaver, Jr.
Naylor admitted that he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located on his personal computer which was kept in his home. The investigation revealed that Naylor was using a computer program that allowed him to download, receive and distribute child pornography to and from others. U.S. Attorney Booth Goodwin said, “We are committed to the fight against criminals like Ronnie Eugene Naylor who contribute to the exploitation and abuse of children. We will use every available tool to track them down and prosecute them to the fullest extent allowed by law.”
The court scheduled sentencing for Naylor for August 5, 2015, in Charleston, West Virginia.
The West Virginia State Police and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
KC Man Sentenced to 16 Years for Robbing Brookside BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing Bank Midwest with a pellet gun.
Casey M. Widman, 60, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 16 years in federal prison without parole.
Widman was sentenced as a career offender due to his prior criminal convictions. Widman has approximately 92 criminal convictions, according to court documents. This is Widman’s third conviction for bank robbery, his 15th felony conviction and his seventh conviction for a crime of violence. Widman also has approximately 77 misdemeanor convictions.
On Oct. 7, 2014, Widman pleaded guilty to stealing $838 from Bank Midwest.
According to court documents, Widman entered Bank Midwest, 6249 Brookside, Kansas City, at about 1:45 p.m. on Dec. 30, 2013. Widman approached one of the tellers, pulled out a black pistol (a pellet gun) and placed it on the counter in front of the teller. Widman said he wanted to make a withdrawal in “all fifties and hundreds.” When the teller placed the money on the counter, he became agitated and told her that he wanted more money. She placed more money on the counter, and Widman took the cash and fled from the bank.
A witness told police officers that he saw a blue Ford Taurus parked near the bank for about 15 minutes. The vehicle left the bank immediately after the robbery occurred. An officer saw a vehicle that matched that description and followed it. When the driver stopped at a gas station, Widman was taken into custody.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Asks Federal Court to Shut Down South Carolina Tax Return PreparersRead the Press Release
In separate actions, the United States has asked a federal court in South Carolina to permanently bar two South Carolina men from preparing federal income tax returns for others, the Justice Department announced today.
In 1997, Clinton A. Broomfield, of Lexington, South Carolina, Tony McGill, of Ladson, South Carolina, and Stacy Middleton formed MBM Tax and Accounting Services LLC to prepare tax returns and provide other financial services. In 2007, Broomfield, McGill and Middleton ended their formal partnership and opened separate tax preparation businesses. Broomfield currently manages Summerville MBM Tax Service, while McGill manages MBM Accounting and Tax Services LLC in North Charleston, South Carolina. Though the partnership ended in 2007, McGill, Broomfield and Middleton continue to share advertising expenses.
In July 2013, the U.S. District Court for the District of South Carolina permanently barred Middleton from preparing federal tax returns for others. He is not a defendant in the current lawsuit.
The complaints allege that, through Summerville MBM Tax Service and MBM Accounting and Tax Services LLC, Broomfield and McGill prepare returns for customers that unlawfully understate income tax liabilities and overstate refunds. According to the suit, the defendants fabricate bogus deductions on Forms 1040, Schedule A (Itemized Deductions) and Schedule C (Profit or Loss from Business) that report nonexistent business expenses and deductions on their customers’ returns. These phony business losses offset the customers’ wages and falsely reduce their income tax liability, according to the suit.
The complaints further allege that Internal Revenue Service (IRS) audited returns prepared by McGill, which revealed tax understatements on 58 of the 61 examined returns, resulting in an average tax deficiency of $5,709 per return. Of the 147 IRS- examined returns that Broomfield prepared, 123 resulted in an increase of his customer’s tax liability, resulting in an average tax deficiency of $2,817 per return, according to the suit. Based on the large percentage of audited returns that understate customers’ actual tax liability and the number of returns Bloomfield and McGill prepare, the complaints allege that the U.S. Treasury may have lost millions of dollars in tax revenue as a result of the defendants’ conduct.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Asks Federal Court to Shut Down South Carolina Tax Return PreparersRead the Press Release
Contact: (202) 514-2007
WASHINGTON – In separate actions, the United States has asked a federal court in South Carolina to permanently bar two South Carolina men from preparing federal income tax returns for others, the Justice Department announced today.
In 1997, Clinton A. Broomfield, of Lexington, South Carolina, Tony McGill, of Ladson, South Carolina, and Stacy Middleton formed MBM Tax and Accounting Services LLC to prepare tax returns and provide other financial services. In 2007, Broomfield, McGill and Middleton ended their formal partnership and opened separate tax preparation businesses. Broomfield currently manages Summerville MBM Tax Service, while McGill manages MBM Accounting and Tax Services LLC in North Charleston, South Carolina. Though the partnership ended in 2007, McGill, Broomfield and Middleton continue to share advertising expenses.
In July 2013, the U.S. District Court for the District of South Carolina permanently barred Middleton from preparing federal tax returns for others. He is not a defendant in the current lawsuit.
The complaints allege that, through Summerville MBM Tax Service and MBM Accounting and Tax Services LLC, Broomfield and McGill prepare returns for customers that unlawfully understate income tax liabilities and overstate refunds. According to the suit, the defendants fabricate bogus deductions on Forms 1040, Schedule A (Itemized Deductions) and Schedule C (Profit or Loss from Business) that report nonexistent business expenses and deductions on their customers’ returns. These phony business losses offset the customers’ wages and falsely reduce their income tax liability, according to the suit.
The complaints further allege that Internal Revenue Service (IRS) audited returns prepared by McGill, which revealed tax understatements on 58 of the 61 examined returns, resulting in an average tax deficiency of $5,709 per return. Of the 147 IRS- examined returns that Broomfield prepared, 123 resulted in an increase of his customer’s tax liability, resulting in an average tax deficiency of $2,817 per return, according to the suit. Based on the large percentage of audited returns that understate customers’ actual tax liability and the number of returns Bloomfield and McGill prepare, the complaints allege that the U.S. Treasury may have lost millions of dollars in tax revenue as a result of the defendants’ conduct.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Justice Department Applauds Adoption of Police Department-Wide Tactical De-escalation Training Program in SeattleRead the Press Release
U.S. District Judge James L. Robart today approved a department-wide training program developed by the Seattle Police Department (SPD) and endorsed by the Justice Department, the Seattle City Attorney’s Office and the Federal Court Monitor Merrick Bobb, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division and Acting U.S. Attorney Annette L. Hayes of the Western District of Washington. The training is a key requirement of the 2012 consent decree entered by the city and the Justice Department to address a pattern and practice of excessive use of force by SPD officers.
All 1,300 sworn officers of the SPD will be trained in tactical de-escalation skills and strategies through the newly approved program. The goal of the training is to teach SPD officers that tactical de-escalation is more than a set of specific skills but also an overarching approach to incident resolution and community policing. De-escalation more broadly refers to the strategic slowing down of an incident in a manner that allows officers more time, distance, space and tactical flexibility during dynamic situations on the street. Applying these specific skills increases the potential for resolving the situation with minimized force or no force at all, which reduces the likelihood of injury to the public, increases officer safety and mitigates the immediacy of potential or ongoing threats. A reduction in use of force incidents also reduces community complaints, promotes the perception of procedural justice and, most importantly, promotes resolution of events with the public’s compliance.
The 2015 tactical de-escalation training builds upon training that officers received for the first time in 2014. Tactical de-escalation training has and will be woven into every aspect of more specific technical training that SPD officers will receive throughout the year, including firearms, individual and team defensive tactics and more.
As the Federal Court Monitor Bobb stated in his filing memo with the court:
For some time, many Seattle residents, like others throughout the country, have suggested that officers receive training on how to de-escalate situations in order to reduce the potential for force needing to be contemplated. However, in many instances, the concept of “de-escalation” has tended to be imprecisely defined and served as a kind of “catch-all” term or approach used to refer to anything that might defuse difficult police encounters. Clear and precise training on what de-escalation means in Seattle began in earnest last year. This year’s training will deepen officers’ understandings of how de-escalation is strategic, tactical, and valuable both to officers and the communities that they serve. By providing clear detail and real-world techniques that officers can apply immediately in the field, it puts substantial “meat on the bones” of what “de-escalation” is in its full scope and how, when, and why such techniques should be used. This training is a notable step forward.
“De-escalation tactics are essential skills for police officers and departments both to help to ensure constitutional policing and to improve public safety and officer safety,” said Principal Deputy Assistant Attorney General Gupta. “Force must be both reasonable and necessary, and this training will provide valuable guidance to officers when they make split-second decisions about when and how to use force. As the Seattle Police Department implements this training, it is taking a vital step forward toward compliance with the consent decree.”
“Tactical de-escalation goes to the heart of the consent decree,” said Acting U.S. Attorney Hayes. “Training in these skills will give officers the tools they need to avoid, mitigate, or minimize force encounters. When put to use, these skills keep both officers and the individuals they encounter safer, allowing officers to focus on their primary mission – service to their community.”
Judge Robart approved the consent decree in August 2012. The Justice Department and the city of Seattle jointly selected and the court approved the monitor in October 2012.
Justice Department Applauds Adoption of Police Department-Wide Tactical De-Escalation Training Program in SeattleRead the Press Release
WASHINGTON – U.S. District Judge James L. Robart today approved a department-wide training program developed by the Seattle Police Department (SPD) and endorsed by the Justice Department, the Seattle City Attorney’s Office and the Federal Court Monitor Merrick Bobb, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division and Acting U.S. Attorney Annette L. Hayes of the Western District of Washington. The training is a key requirement of the 2012 consent decree entered by the city and the Justice Department to address a pattern and practice of excessive use of force by SPD officers.
All 1,300 sworn officers of the SPD will be trained in tactical de-escalation skills and strategies through the newly approved program. The goal of the training is to teach SPD officers that tactical de-escalation is more than a set of specific skills but also an overarching approach to incident resolution and community policing. De-escalation more broadly refers to the strategic slowing down of an incident in a manner that allows officers more time, distance, space and tactical flexibility during dynamic situations on the street. Applying these specific skills increases the potential for resolving the situation with minimized force or no force at all, which reduces the likelihood of injury to the public, increases officer safety and mitigates the immediacy of potential or ongoing threats. A reduction in use of force incidents also reduces community complaints, promotes the perception of procedural justice and, most importantly, promotes resolution of events with the public’s compliance.
The 2015 tactical de-escalation training builds upon training that officers received for the first time in 2014. Tactical de-escalation training has and will be woven into every aspect of more specific technical training that SPD officers will receive throughout the year, including firearms, individual and team defensive tactics and more.
As the Federal Court Monitor Bobb stated in his filing memo with the court:
For some time, many Seattle residents, like others throughout the country, have suggested that officers receive training on how to de-escalate situations in order to reduce the potential for force needing to be contemplated. However, in many instances, the concept of “de-escalation” has tended to be imprecisely defined and served as a kind of “catch-all” term or approach used to refer to anything that might defuse difficult police encounters. Clear and precise training on what de-escalation means in Seattle began in earnest last year. This year’s training will deepen officers’ understandings of how de-escalation is strategic, tactical, and valuable both to officers and the communities that they serve. By providing clear detail and real-world techniques that officers can apply immediately in the field, it puts substantial “meat on the bones” of what “de-escalation” is in its full scope and how, when, and why such techniques should be used. This training is a notable step forward.
“De-escalation tactics are essential skills for police officers and departments both to help to ensure constitutional policing and to improve public safety and officer safety,” said Principal Deputy Assistant Attorney General Gupta. “Force must be both reasonable and necessary, and this training will provide valuable guidance to officers when they make split-second decisions about when and how to use force. As the Seattle Police Department implements this training, it is taking a vital step forward toward compliance with the consent decree.”
“Tactical de-escalation goes to the heart of the consent decree,” said Acting U.S. Attorney Annette L. Hayes. “Training in these skills will give officers the tools they need to avoid, mitigate, or minimize force encounters. When put to use, these skills keep both officers and the individuals they encounter safer, allowing officers to focus on their primary mission – service to their community.”
Judge Robart approved the consent decree in August 2012. The Justice Department and the city of Seattle jointly selected and the court approved the monitor in October 2012.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on April 15, 2015, and entering pleas of Not Guilty were:
- WILLIAM ROY BARGE, a 22-year-old resident of Bozeman, appeared on charges of passing or uttering counterfeit obligations or securities of the United States. If convicted of the most serious charge contained in the indictment, BARGE faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service. PACER Case Reference: 15-24
- GEORGE CHAD DEPUTEE, a 40-year-old resident of Lodge Grass, appeared on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious charge in the indictment, DEPUTEE faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-21
- BOB CLARENCE PARKER, a 24-year-old resident of Billings, appeared on charges of possession of a stolen firearm. If convicted of the charge contained in the indictment, PARKER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-17
Appearing before U.S. Magistrate Judge Ostby in Billings on April 10, 2015, and entering pleas of Not Guilty were:
- MICHELLE LYNN EDELMAN, a 43-year-old resident of Billings, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, EDELMAN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Drug Task Force. PACER Case Reference: 14-102
Appearing before U.S. Magistrate Judge Johnston in Great Falls on April 6, 2015, and entering pleas of Not Guilty were:
- BRYTTNI LIND BUSTOS, a 23-year-old resident of Browning, appeared on charges of assault on a federal officer. If convicted of the charge contained in the indictment, BUSTOS faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-27
- DEAN MADPLUME, a 40-yeard old resident of Browning, appeared on charges of assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, MADPLUME faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-28
Appearing before U.S. Magistrate Judge Lynch in Missoula on April 2, 2015 and entering pleas of Not Guilty were:
- PAUL HOWARD BENBOW, a 47-year-old resident of Seeley Lake, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, BENBOW faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference: 15-07
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information Technology Manager Indicted for Damaging Servers and Illegally Intercepting Email Accounts of Former EmployerRead the Press Release
CHICAGO ― A former information technology manager for a Northbrook-based company was indicted Tuesday for allegedly damaging servers maintained by the company, intercepting company emails without authorization, and disclosing the contents of intercepted emails without authorization. The defendant, George N. Turner, was charged with one count of computer fraud, two counts of illegal wire interceptions, and four counts of disclosing information obtained from illegal wire interceptions in a seven count indictment returned by a federal grand jury, announced Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.
Turner, 50, of Vernon Hills, will appear for an arraignment before Judge Feinerman on April 21, 2015, in U.S. District Court. The indictment seeks forfeiture of computers that were seized from Turner that were used in the commission of the crime.
According to the indictment, Turner worked for the victim company as the manager of information technology from approximately October 2007 through March 2014, during which time he had authorization to have access to the victim company’s computer network and servers, including the email server. Turner no longer worked for the company after March 2014, and was no longer authorized to access the victim company’s computer network or servers.
Beginning in April 2014, Turner allegedly intercepted the company email accounts of two of the victim company’s executives. Additionally, on May 12, 2014, Turner allegedly accessed and caused significant damage to some of the victim company’s servers. In July 2014, Turner allegedly sent multiple emails containing information he obtained from the victim company’s executives’ email accounts. In four separate emails, Turner allegedly sent to other persons the victim company’s payroll information, executive bonus information, and pricing information.
“This defendant used his skills to cause significant damage to his former employer, and illegally to obtain private information. Cybercrime hurts companies and their employees, and we will prosecute those responsible,” stated Zachary T. Fardon, United States Attorney, after the charges were announced.
The computer fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine. Each of the illegal wire interception counts carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorney Shoba Pillay.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Houston Man Pleads Guilty to Role in Money Laundering ConspiracyRead the Press Release
McALLEN, Texas – Alejandro Morales-Flores, 60, a naturalized U.S. citizen residing in Houston, has entered a plea of guilty in McAllen federal court to conspiring to commit money laundering, announced U.S. Attorney Kenneth Magidson.
On Oct. 24, 2014, Morales-Flores was driving a tractor-trailer from Houston to the Rio Grande Valley. A trooper with the Texas Department of Public Safety (DPS) stopped him near San Manuel for a traffic violation as he was heading to the Valley. His trailer was found to be emplty, but a search resulted in the discovery of several bags containing a total of $1,413,255 in U.S. currency hidden in the sleeper compartment.
Morales-Flores admitted he knew the money was drug trafficking proceeds and that he was being paid to deliver it to unknown individuals in the Rio Grande Valley area.
U.S. District Judge Randy Crane accepted the plea today and set sentencing for June 29, 2015, at which time Morales-Flores faces up to 20 years in federal prison and a possible fine of more than $2.8 million. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation by the Drug Enforcement Administration with assistance from DPS. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Hartford Heroin Trafficker Sentenced to Three Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALVARO ALVARADO, 27, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by two years of supervised release, for trafficking heroin.
This matter stems from a joint investigation into heroin trafficking to combat the dramatic increase in heroin overdoses in Connecticut.
According to court documents and statements made in court, in March 2014, law enforcement made two controlled purchases of heroin from ALVARADO at his apartment building on Webster Street in Hartford. On March 26, 2014, a court authorized search of ALVARADO’s apartment revealed approximately 700 grams of heroin, a small amount of cocaine, and approximately $3,200 in cash.
Seven hundred grams of heroin can produce approximately 28,000 individual dose bags when packaged for resale.
ALVARADO has been detained since his arrest on March 26, 2014. On January 15, 2015, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
This matter was investigated by the Drug Enforcement Administration and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Brian Leaming.
Harrisburg Man Charged with Federal Drug and Firearms OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daleo G. Powell, 32, of Harrisburg, was indicted yesterday by a federal grand jury in Harrisburg. The indictment charges Powell with possession of a firearm by a convicted felon, possession of a firearm in furtherance of drug trafficking, and possession with intent to distribute a controlled substance.
According to United States Attorney Peter Smith, the charges are a result of an initial investigation by Harrisburg Police in December 2014 that allegedly resulted in Powell being found in possession of a loaded firearm and nine bundles of heroin on 15th Street in Harrisburg, PA, after having previously been convicted of several felony offenses. At the time of Powell’s arrest, he allegedly had an active warrant for his arrest, was driving with a suspended license, and had previous felony convictions.
This case was investigated by the Federal Bureau of Investigation and the Harrisburg Police Bureau. As part of an ongoing cooperative effort by federal and local law enforcement, the case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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GSA Official Admits Accepting Bribes and Stealing Government PropertyRead the Press Release
Timothy Francis Cashman, a Building Manager for the General Services Administration (“GSA”), admitted today to an almost decade-long conspiracy to accept bribes and steal property owned by the United States. In doing so, Cashman acknowledged using his position with GSA (overseeing operations and maintenance at the Otay Mesa, San Ysidro, and Tecate Ports of Entry) for his personal enrichment; rather than to fulfill GSA’s core mission of delivering “the best value in real estate, acquisition, and technology services to government and the American people.”
As revealed in Court, Cashman admitted that in return for providing favorable treatment relating to the awarding of GSA contracts, he corruptly demanded that government contractor Hugo Alonso Inc. (“HAI”) give him $10,000 in cash and perform thousands of dollars’ worth of construction and renovation services on Cashman’s personal residence. These services included having HAI paint Cashman’s Lakeside home and replace his roof and windows free of charge.
The former GSA building manager also admitted demanding that HAI pay another government contractor (Company “A”) $120,000 in exchange for HAI being awarded a GSA construction contract at the Otay Mesa POE. Subsequently, Cashman accepted six checks from Company “A” totaling $42,000, which he deposited into his personal account. All of the income he received from HAI was concealed from the IRS when submitting his federal income tax returns.
In addition to accepting bribes from HAI, Cashman also detailed in Court how he improperly obtained thousands of dollars in valuable United States Government building materials for his own benefit by causing GSA contractors and others to remove and transport such materials away from GSA facilities where he could sell or use them without the knowledge of GSA. For example, Cashman instructed government contractors: (1) in March 2011, to load approximately 25 stainless steel panels located at the San Ysidro POE into his personal Ford truck; (2) in January 2012, to load 35 heavy brass letters (spelling out “United States Border Inspection Station” and weighing approximately 2,000 pounds) into his personal truck; (3) in December 2012, to collect approximately 3,000 feet of underground copper cable belonging to the United States and to deliver it to, among other places, his personal residence; and (4) in November 2013, to set aside for his personal sale a large quantity of underground copper cable and approximately 5 aluminum panels located at the Otay Mesa POE.
United States Attorney Laura E. Duffy said, “This defendant abused his position of trust for many years and the taxpayers paid the price. Combatting public corruption will remain one of my office’s highest priorities.” She also thanked the Special Agents with the FBI, IRS-CI and GSA-OIG whose tireless work both uncovered this corruption and resulted in removing the corrupt official from the government fisc.
“Mr. Cashman admittedly undermined the process of fair and open competition when he conspired to accept bribes in exchange for awarding lucrative government contracts,” said IRS Criminal Investigation’s Los Angeles Field Office Special Agent in Charge Erick Martinez. “The IRS is committed to aggressively investigating those individuals who engage in corruption, fraud and deceit designed to satisfy their greed.”
“When a public servant like Mr. Cashman abuses his position and fails to conduct the public’s business in an honest and ethical manner, it undermines the public’s trust in government,” said FBI Special Agent in Charge, Eric S. Birnbaum. “When that happens, the FBI and our law enforcement partners will work together to restore the public’s trust by aggressively investigating and holding accountable those individuals who would abuse this trust for their own personal gain.”
“GSA employees who take bribes and steal from the U.S. government will be investigated and prosecuted to the full extent of the law,” said GSA Acting Inspector General Robert C. Erickson.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
HAI, and its principal, Hugo Alonso, have previously pled guilty and been sentenced. Cashman is scheduled to be sentenced before U.S. District Judge Gonzalo P. Curiel on August 7, 2015 at 8:30 a.m.
DEFENDANT Case Number: 14CR3621-GPC Timothy Francis Cashman Age: 54 Lakeside, California CHARGESCount 1: 18 U.S.C. § 371 - Conspiracy to commit bribery and theft of government property
Maximum Penalty: 5 years’ imprisonment and a $250,000 fineCount 2: 26 U.S.C. § 7206(1) - Filing False Tax Return
INVESTIGATING AGENCIES
Maximum Penalty: 3 years’ imprisonment and a $250,000 fineFederal Bureau of Investigation
Internal Revenue Service – Criminal Investigations
General Services Administration – Office of Inspector General
CBP Office of Field Operations
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector GeneralFour Defendants Charged with Passing Counterfeit MoneyRead 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 four defendants have been charged by criminal complaint with distributing and passing counterfeit currency. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Under arrest are Tiffany Key, 42, Shamell McCullough, 24, and Turemail McCullough, 23, all of Rochester. Key and Shamell McCullough made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson and were released on conditions. Turemail McCullough will make an initial appearance this afternoon at 3:00 p.m. before Judge Payson.
A fourth defendant, Dashawn Sanders, is still being sought by police.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, ON February 9, 2015, an investigating began into multiple passes of counterfeit currency in Monroe County, NY. The four named defendants were identified in part by video surveillance and photographs from various victim merchants. Some of the alleged illegal transactions include:
• On February 16, 2015, Tiffany Key passed $1,340 in counterfeit $20 Federal Reserve Notes at a Walmart located Cicero, NY.
• On March 9, 2015, Tiffany Key and Shamell Mccullough passed $1,020 in counterfeit $20 Federal Reserve Notes at a Walmart located in Webster, NY.
• On March 9, 2015, Dashawn Sanders and Shamell Mccullough passed $900.00 in counterfeit $20 Federal Reserve Notes at a Walmart located in Irondequoit, NY.
• On March 10, 2015, Tiffany Key, Shamell Mccullough and Turemail Mccullough passed $1,640 in counterfeit $20 Federal Reserve Notes at a Walmart located in Greece, NY.
• On March 10, 2015, Tiffany Key and Dashawn Sanders passed $1,300.00 in counterfeit $20 Federal Reserve Notes at a Dollar General Store located in Greece, NY.
• On March 12, 2015, Dashawn Sanders passed $3,800.00 in counterfeit $20 Federal Reserve Notes at a Walmart located in Seneca Falls, NY.
• On March 17, 2015, Turemail Mccullough passed $980.00 in counterfeit $20 Federal Reserve Notes at a Walmart located in Henrietta, NY.
According to the complaint, the counterfeit currency is being obtained from the New York City area and brought to the Rochester area to be distributed and passed. The defendants are accused of passing a total of $92,960 in counterfeit currency.The complaint is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.
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.
Four Defendants Charged with Passing Counterfeit MoneyRead 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 four defendants have been charged by criminal complaint with distributing and passing counterfeit currency. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Under arrest are Tiffany Key, 42, Shamell McCullough, 24, and Turemail McCullough, 23, all of Rochester. Key and Shamell McCullough made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson and were released on conditions. Turemail McCullough will make an initial appearance this afternoon at 3:00 p.m. before Judge Payson.
A fourth defendant, Dashawn Sanders, is still being sought by police.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, ON February 9, 2015, an investigating began into multiple passes of counterfeit currency in Monroe County, NY. The four named defendants were identified in part by video surveillance and photographs from various victim merchants. Some of the alleged illegal transactions include:
• On February 16, 2015, Tiffany Key passed $1,340 in counterfeit $20 Federal Reserve Notes at a Walmart located Cicero, NY.
• On March 9, 2015, Tiffany Key and Shamell Mccullough passed $1,020 in counterfeit $20 Federal Reserve Notes at a Walmart located in Webster, NY.
• On March 9, 2015, Dashawn Sanders and Shamell Mccullough passed $900.00 in counterfeit $20 Federal Reserve Notes at a Walmart located in Irondequoit, NY.
• On March 10, 2015, Tiffany Key, Shamell Mccullough and Turemail Mccullough passed $1,640 in counterfeit $20 Federal Reserve Notes at a Walmart located in Greece, NY.
• On March 10, 2015, Tiffany Key and Dashawn Sanders passed $1,300.00 in counterfeit $20 Federal Reserve Notes at a Dollar General Store located in Greece, NY.
• On March 12, 2015, Dashawn Sanders passed $3,800.00 in counterfeit $20 Federal Reserve Notes at a Walmart located in Seneca Falls, NY.
• On March 17, 2015, Turemail Mccullough passed $980.00 in counterfeit $20 Federal Reserve Notes at a Walmart located in Henrietta, NY.
According to the complaint, the counterfeit currency is being obtained from the New York City area and brought to the Rochester area to be distributed and passed. The defendants are accused of passing a total of $92,960 in counterfeit currency.The complaint is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.
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.
Former Steel Workers Union Official Charged with Theft of Union FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that criminal charges were filed late yesterday in U.S. District Court in Scranton against a former official of the United Steelworkers of America, Local 1338, for stealing almost $9,000 in union funds over a two-and-a-half year period.
According to United States Attorney Peter Smith, the Information alleges that on multiple occasions between May 2011 and December 2013, David Deitrick, aged 50, of Ranshaw, Pennsylvania, abused his position as the union’s secretary/treasurer in order to steal a total of $8,993.38 of the labor organization’s money.
The investigation was conducted by investigators from the United States Department of Labor. The case is being prosecuted by Assistant United States Attorney Peter Hobart.
The maximum penalty under federal law for Embezzlement and Theft of Labor Union Assets is 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former State Official Convicted of Bribery Scheme Involving Louisiana State Board of CosmetologyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of a former official of the Louisiana State Board of Cosmetology who engaged in a bribery scheme to sell answers to upcoming Board-administered cosmetology examinations for cash.
WINN E. JOHNSON, age 71, of Boyce, Louisiana, has been charged in a Bill of Information with two counts of using the telephone in aid of bribery, in violation of Title 18, United States Code, Section 1952. This morning, JOHNSON appeared before Chief U.S. District Judge Brian A. Jackson and pled guilty.
As described in Court earlier today, the Federal Bureau of Investigation and the Louisiana Office of the State Inspector General opened an investigation involving JOHNSON and others in 2013, based in part on allegations that JOHNSON would accept cash from individuals who were scheduled to take Board examinations. JOHNSON acknowledged in Court today that on three different occasions, he met with an individual whose wife, JOHNSON believed, was seeking to obtain a cosmetology license. Each time, JOHNSON provided the individual with answers to an upcoming Board examination, in exchange for $500 in cash. JOHNSON used his cellular telephone to arrange the meetings, which took place on various dates in 2014 in Baton Rouge, Louisiana.
Louisiana Inspector General Stephen Street commented: “We have zero tolerance for those who compromise the integrity of government in exchange for monetary gain. It undermines the entire system and is an enormous disservice to the taxpayers. We will continue working with the FBI and United States Attorney to make sure that anyone who does this faces criminal consequences.”
U.S. Attorney Green stated: “This case is a reminder that corruption comes in a wide variety of forms. Individuals at all levels of our government can misuse their positions of trust to line their pockets, and it is never acceptable. Working with our partners at the Federal Bureau of Investigation and the Louisiana Inspector General’s Office, among other agencies, we will puruse these types of allegations whenever they come to our attention. I commend the State Board’s leadership on its assistance and cooperation in helping us root out this corrupt actor.”
This ongoing investigation is being handled jointly by the Federal Bureau of Investigation and the Louisiana Office of State Inspector General, with valuable assistance from the Louisiana State Board of Cosmetology. U.S. Attorney Green emphasized that the State Board’s leadership has consistently cooperated with the investigation. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.
Former New York Pediatrician Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – Daniel J. O’Hern, 65, a Mashpee resident and former New York pediatrician, pleaded guilty yesterday to distribution and possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 21, 2015.
On May 31, 2014, law enforcement discovered that O’Hern was distributing child pornography when he utilized a public file sharing program to post pictures and videos of minors, between the ages of 5 to 12 years old, engaged in sexually explicit conduct with adults. In June 2014, federal agents executed a search warrant at O’Hern’s residence and seized multiple computers, external hard drives, hundreds of DVDs, and other media storage devices which contained an extensive collection of images and videos depicting children being sexually assaulted by adults.
The charge of distribution of child pornography provides for a minimum mandatory term of five years and no greater than 20 years in prison, a minimum term of five years to a lifetime of supervised release, and registration with the sex offender registration board. The charge of possession of child pornography provides for a term of no greater than 10 years in prison and a lifetime of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Chief Rodney Collins of the Mashpee Police Department; and Chief Paul MacDonald of the Barnstable Police Department made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Montgomery Nightclub Owner and Ringleader of Stolen Identity Tax Refund Fraud Scheme Sentenced to PrisonRead the Press Release
MONTGOMERY, AL – The ringleader of a stolen identity tax refund fraud scheme and former nightclub owner was sentenced yesterday in the U.S. District Court in Montgomery, Alabama, for stolen identity refund fraud related crimes, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Tarrish Tellis, 38, of Montgomery, was sentenced to serve 223 months in federal prison, three years of supervised release and ordered to pay $694,366 in restitution. On Jan. 14, a federal jury convicted Tellis of conspiracy to commit theft of public money, theft of public money and aggravated identity theft.
“Stealing over $700,000 from innocent citizens is disgraceful and will not be tolerated,” stated U.S. Attorney Beck. “This sentence sends a message that if you steal, you will be caught, prosecuted and go to jail for a very long time.”
“As evidenced by today’s sentence, individuals like Mr. Tellis, who commit stolen identity theft crimes and in doing so, victimize innocent American taxpayers and brazenly steal from the U.S. Treasury, face lengthy incarceration and substantial financial penalties,” said Acting Assistant Attorney General Ciraolo. “The Tax Division and its law enforcement partners stand ready to vigorously pursue and prosecute these offenders to the fullest extent of the law.”
According to evidence presented at trial, Tellis, the former owner of Club Iconz Bar and Grill in Montgomery, masterminded a more than $700,000 stolen identity tax refund scheme. Tellis’ co-conspirator, Nakia Jackson, obtained approximately 700 names, dates of birth and social security numbers from an employee of the Alabama Medicaid State Agency. Jackson provided some of the stolen names to Tellis, who in turn used them to file false income tax returns. In exchange, Tellis taught Jackson how to file false tax returns.
Tellis concealed the origin of the tax refund proceeds by recruiting friends and relatives, including Bobby Joe Means, Delancey Tolliver, Glen Powell Jr. and Tracey Montgomery, to open up bank accounts for the purpose of receiving the tax refunds. When the refunds were deposited into their bank accounts, Tellis directed them to withdraw the money and provide it to him. On the false tax returns submitted to the Internal Revenue Service (IRS), Tellis directed more than $300,000 in refunds to be deposited in those accounts. Tellis also recruited a bank teller, Laquanta Clayton, who used her position to open up bank accounts in the name of fictitious individuals and in the name of her daughter’s father. On the false tax returns submitted to the IRS, Tellis directed approximately $200,000 in refunds to be deposited into the accounts that Clayton controlled. Clayton withdrew the refund proceeds in cash and provided the majority of the money to Tellis. Tellis also took steps to conceal his involvement in the filing of false tax returns, including filing numerous tax returns by accessing another person’s residential wireless router that was not password protected so that it appeared as though the owner of the residence had filed the returns.
In 2014, Tellis’ co-conspirators were sentenced to prison for their involvement in the stolen identity refund fraud scheme. Jackson was sentenced to serve 87 months in prison, Clayton was sentenced to serve 21 months in prison, Tolliver was sentenced to serve 15 months in prison, Powell Jr. and Means were each sentenced to serve 12 months and one day in prison and Montgomery was sentenced to serve six months in prison.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey, Charles M. Edgar Jr. and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Former Kirtland Hills police chief sentenced to two years in prison for stealing $80,000 from the villageRead the Press Release
The former police chief of Kirtland Hills was sentenced to two years in prison for defrauding the village out of at least $80,000 by making unauthorized purchases of clothing, tools and goods for his own personal use, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Gerald Smith, Jr., 57, of Kirtland, previously pleaded guilty to one count of mail fraud and one count of destruction, alteration or falsification of records in a federal investigation.
To date, Smith has paid $140,503, which covers the amount he stole and the village's related legal expenses. He was ordered to pay an additional $9,034 in restitution.
“Mr. Smith used the village treasury as his own personal checkbook,” Dettelbach said. “He violated the public's trust."
“When any law enforcement officer crosses the line of being a law-abiding citizen to becoming a law-breaking citizen it is disheartening," Anthony said. "The FBI will continue to pursue and bring to justice those in a position of trust and authority that violate that trust by breaking the law."
Smith joined the Kirtland Hills police department in 1978 and served as chief from 1988 until April 4, 2014. In this capacity, Smith was authorized to reimburse officers for work-related expenses and use village funds to procure necessary supplies, including the use of several village credit cards or lines of credit, according to the information.
The department also had petty cash fund, maintained in Smith’s office, in which employees submitted receipts with their name and the purpose of the expense written on it, for which they were then reimbursed, according to court documents.
Smith made approximately $80,000 in personal expenditures using village credit cards between 2007 and 2014. Some of the items were used to partially furnish his Florida condominium. Items purchased include ceiling fans, plumbing supplies, vacuum cleaners, children’s lunch boxes and story books, clothing, televisions, book shelves, personal hygiene items, firearms, car repairs and more, according to court documents.
Smith concealed these purchases by making false entries on receipts to make it appear they were made by others or made for official police business. By spreading the purchases out among different funds, he prevented the village from readily noticing large amounts of expenditures from one particular fund, according to court documents.
For example, Smith went on a hunting trip to Pennsylvania in 2007. While on vacation, he made the following purchases on a Kirtland Hills credit card: knife sharpening ($70), items at an Army Navy store ($269.96), and items at a sporting goods store, including Pro Hunter pants and jacket and a shirt ($209.97). He then falsely wrote on the receipt that the sporting goods clothing was SWAT clothing for a Kirtland Hills officer, according to court documents.
In 2007, Smith ordered several items online, including a $107.96 pair of women’s tan Ugg boots with the village Mastercard. Smith falsely wrote on the receipt “Road Dept Boots and Boots for (a Kirtland Hills police officer),” knowing the officer did not receive the boots, according to court documents.
Smith also obtained Kirtland Hills money by submitting false claims to the petty cash fund. When Kirtland Hills officers went out to lunch, or when Smith took personal trips with officers and the group stopped for food, Smith at times asked for the receipts. He then submitted the receipts for petty cash reimbursement under the officers’ names but without their knowledge, taking the cash for himself, according to court documents.
On March 17, 2014, Smith was placed on leave by Kirtland Hills and required to surrender his access badges, keys and all village property. He was also served by FBI agents with a federal grand jury subpoena, which required the production of certain documents and items.
On March 20, 2014, Smith secretly brought more than 50 items from his residence to a village storage shed and placed the items on the shelves, to give the appearance that these items belonged to the Village of Kirtland Hills. Among the items Smith returned were a drill, heater, dehumidifier, air purifier, camouflage tarps, socket set, channel locks, extension cords, hammer, hand saw and other items, according to court documents.
The case is being prosecuted by Assistant United States Attorney Antoinette T. Bacon following an investigation by the Federal Bureau of Investigation.
Former Investment Adviser at Global Bank Charged in Manhattan Federal Court with Multimillon-Dollar Scheme to Defraud ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MICHAEL OPPENHEIM was charged with wire, securities, and investment adviser fraud, as well as embezzlement, for allegedly using his position as an investment adviser at a global financial institution based in New York City (the “Bank”) to defraud multiple Bank clients out of approximately $20 million over a four-year period. OPPENHEIM was arrested this morning and will be presented later today in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “Michael Oppenheim is alleged to have misrepresented to investment advisory clients what he would do with their money. The allegations include that he lied to his clients and misappropriated their money. I want to thank the FBI and the SEC for their continued vigilance in protecting investors and their money.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Investment advisers are required to act in the best interest of their clients. Oppenheim did just the opposite by allegedly taking advantage of those who trusted him. As alleged, he concealed their money in a game of hide-and-seek and personally benefitted from illegitimately obtained profits. Now that his actions have been exposed, he will be made to face the consequences of the justice system.”
According to the allegations in the Criminal Complaint unsealed today in Manhattan federal court:
From at least March 2011 to March 2015, OPPENHEIM, a former investment adviser at the Bank, a global financial institution based in New York City, abused his relationship of trust with his clients in converting to his own use and benefit at least $20 million belonging to at least seven clients whose investment advisory accounts at the Bank he purported to manage.
In some instances, OPPENHEIM induced clients to consent to the withdrawal of hundreds of thousands, and in some cases millions, of dollars from their accounts at the Bank, based on false and misleading representations that OPPENHEIM would invest their money in low-risk municipal bonds to be held in an account at the Bank. In other instances, OPPENHEIM simply withdrew hundreds of thousands of dollars from clients’ accounts without their knowledge.
OPPENHEIM did not invest these clients’ money in low-risk municipal bonds at the Bank as promised. Instead, after taking a client’s money, OPPENHEIM, without the client’s knowledge, used the client’s money to obtain cashier’s checks purporting to be remitted by the clients. OPPENHEIM then deposited the cashier’s checks in at least three online brokerage accounts OPPENHEIM controlled at financial institutions other than the Bank. OPPENHEIM used clients’ funds for his own personal use, including on-line trading in accounts he controlled, and to pay for personal expenses such as a home loan and bills.
In an effort to cover up his fraudulent scheme, OPPENHEIM provided some clients with fraudulent Bank account statements. The purported Bank account statements reflected bonds held by other clients of the Bank, but OPPENHEIM caused his clients’ names to appear on the statements in order to give the false impression that OPPENHEIM had purchased bonds on behalf of those clients, as he had promised. In a further effort to conceal his fraud, on several occasions, and without his clients’ consent or authority, OPPENHEIM withdrew funds from one client and deposited those funds into the account of another client.
OPPENHEIM continued the fraud until he was terminated by the Bank in March 2015.
OPPENHEIM, 48, of Livingston, New Jersey, is charged with one count of wire fraud, one count of embezzlement, one count of securities fraud, and one count of investment adviser fraud. The embezzlement count carries a maximum of 30 years in prison. The wire fraud and securities fraud counts each carry a maximum sentence of 20 years in prison. The investment adviser fraud count carries a maximum sentence of five years in prison. The charges carry a maximum fine of $5 million, 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.
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against OPPENHEIM.
Mr. Bharara praised the work of the FBI, and thanked the SEC and FINRA for their assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Janis Echenberg, Alexander Wilson, and Brooke Cucinella are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Michael Oppenheim Complaint
Former Inmate Sentenced to 42 Years for Distributing Child Porn from PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former California prison inmate, incarcerated for state sex offenses, was sentenced in federal court today for using a smuggled cell phone to distribute child pornography over the Internet.
Eric Lee Bederson, 37, formerly an inmate at the California Medical Facility in Vacaville, Calif., was sentenced by U.S. Chief District Judge Greg Kays to 42 years in federal prison without parole.
On Aug. 12, 2014, Bederson pleaded guilty to two counts of distributing child pornography. At the time he committed these offenses, Bederson was serving a 16-year state sentence in California for a charge involving the aggravated sexual abuse, sexual abuse, and abusive sexual conduct of a minor. Bederson, then a 21-year-old day care center teacher, had been arrested following an investigation into suspicions that he was molesting multiple children and possessed child pornography. According to court documents, Bederson molested at least 20 children. A civil lawsuit resulted in a judgment of more than $10 million in damages.
Bederson used smuggled cell phones to distribute numerous images and videos of child pornography while he was incarcerated. As his release date approached, Bederson began communicating with other traders of child pornography via e-mail. He amassed upwards of 40 gigabytes of images and videos in his multiple e-mail accounts, which he used to actively trade, receive, and distribute to others – including an undercover federal agent based in Kansas City, Mo. According to court documents, these images and videos constitute violent and disturbing child pornography, including minors as young as five years old.
Between Sept. 29 and Oct. 8, 2011, he sent six e-mails to an undercover agent with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), which included a total of 164 images and 10 videos of child pornography. Bederson sent this child pornography with the hope and expectation that the undercover HSI agent (and others) would reciprocate in sending child pornography back to him in return. Bederson also admitted that his e-mail accounts contained multiple gigabytes of e-mails and attachments of child pornography.
For example, on Sept. 29, 2011, Bederson sent an e-mail with 24 attached images of child pornography to the undercover federal agent. On Oct. 1, 2011, Bederson sent another e-mail to the undercover federal agent, which contained a video of child pornography.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the California State Prison security office.
Former Corrections Officers Plead Guilty to Conspiracy to Violate Civil RightsRead the Press Release
PANAMA CITY, FLORIDA – William F. Finch, 35, of Wauseau, Florida, and Dalton E. Riley, 24, of Bethlehem, Florida, pled guilty today to conspiring to violate the civil rights of an inmate at the Northwest Florida Reception Center (“NWFRC”), a state prison in Chipley, Florida. Their co-defendant, Robert L. Miller, 48, of Lynn Haven, Florida, pled guilty on April 1. The guilty pleas were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During their pleas, Finch, Riley, and Miller admitted to physically assaulting an inmate at NWFRC on August 5, 2014, without justification and causing the inmate bodily injury. To conceal the defendants’ actions, Finch falsified reports of the incident by falsely stating that the assault was in response to the inmate spitting on another officer.
Sentencing for Finch and Riley is scheduled for July 1, 2015, before United States District Judge Richard Smoak at the United States Courthouse, 30 West Government Street, Panama City, Florida. Sentencing for Miller is scheduled for June 17.
The case is being investigated by the Federal Bureau of Investigation and the Florida Department of Corrections – Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Gayle E. Littleton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Chief Compliance Officer Arrested for Embezzling from EmployerRead the Press Release
HOUSTON – Dawn Harris, 36, of Katy, a former chief compliance officer for LTD Financial Services L.P., has been charged with embezzling money from her then-employer from 2007 to 2013, announced U.S. Attorney Kenneth Magidson.
The indictment was returned under seal April 15, 2015, and unsealed today upon her arrest. She is scheduled to make her initial appearance before U.S. Magistrate Judge Frances Stacy on Friday, April 17, 2015.
According to the Indictment, Harris was employed by LTD Financial starting in 1999 and was promoted several times, eventually becoming LTD Financial’s vice president of compliance in 2011 and finally its chief compliance officer in April 2013.
Starting in 2007, according to the indictment, Harris embezzled money from LTD Financial by abusing her authority to issue checks to pay for invoices that the vendors did not submit. Later, as she was promoted, Harris allegedly modified her scheme by ordering checks to be issued to pay for legal settlements that did not exist. Harris then deposited these fraudulent checks into her account and used the money to support her lifestyle, according to allegations. Over this seven year period, Harris is alleged to have embezzled approximately $440,090.70.
The Indictment charges Harris with 10 counts of wire fraud which carries a potential term of 20 years in federal prison on each count of conviction as well as a $250,000 maximum fine or twice the pecuniary gain or loss.
The case is being investigated by the U.S. Secret Service’s Houston Area Fraud Task Force and is being prosecuted by Assistant U.S. Attorney Michael Chu.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Bergen County, N.J., Democratic Chairman Convicted on Racketeering ChargesRead the Press Release
NEWARK, N.J. – A jury today convicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), in connection with a racketeering scheme involving fraud and soliciting and accepting bribes as a party official, U.S. Attorney Paul J. Fishman announced.
Ferriero, 57, was found guilty following an eight-week trial before U.S. District Judge Esther B. Salas in Newark federal court. The jury deliberated four days before finding Ferriero guilty of conducting the BCDO’s affairs through a pattern of racketeering activity (Count One), using the mail and facilities in interstate commerce to promote bribery and distribute bribe proceeds (Count Three) and wire fraud (Count Five).
“Joseph Ferriero was convicted today of running a local political organization as a criminal enterprise, using his power and position to line his pockets,” U.S. Attorney Fishman said. “The evidence we presented at trial described a racketeering operation that ran on influence peddling, bribes and kickbacks. Rooting out and prosecuting this kind of political corruption is a constant priority for this office. The people of New Jersey are entitled to honest public service.”
“Today’s conviction of Joseph A. Ferriero reaffirms the FBI’s commitment to combat public corruption in New Jersey and serves as a reminder that those individuals who violate the public’s trust will be held accountable,” Richard M. Frankel, the FBI’s Special Agent in Charge, Newark, said.
According to documents filed in this case and the evidence at trial:
Ferriero served as the chairman of the BCDO from 1998 until January 2009 and was the sole member of SJC Consulting LLC. The jury found Ferriero accepted bribes in his capacity as BCDO chairman in the course of a scheme involving SJC. Ferriero agreed with John Carrino, a Nutley, New Jersey-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the wire fraud charge carries a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine. Sentencing is scheduled for July 27, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Frankel, and investigators from the U.S. Attorney’s Office, under the direction of Supervisory Criminal Investigator Thomas Mahoney, with the investigation leading to today’s conviction.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig and Assistant U.S. Attorney Barbara Llanes of the Special Prosecutions Division in Newark.
Defense counsel: Michael Baldassare, Jennifer Mara and Dillon Malar Esqs., Newark
Former Alabama Nightclub Owner and Ringleader of Stolen Identity Tax Refund Fraud Scheme Sentenced to PrisonRead the Press Release
The ringleader of a stolen identity tax refund fraud scheme and former nightclub owner was sentenced yesterday in the U.S. District Court in Montgomery, Alabama, for stolen identity refund fraud related crimes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Tarrish Tellis, 38, of Montgomery, was sentenced to serve 223 months in federal prison, three years of supervised release and ordered to pay $694,366 in restitution. On Jan. 14, a federal jury convicted Tellis of conspiracy to commit theft of public money, theft of public money and aggravated identity theft.
“As evidenced by today’s sentence, individuals like Mr. Tellis, who commit stolen identity theft crimes and in doing so, victimize innocent American taxpayers and brazenly steal from the U.S. Treasury, face lengthy incarceration and substantial financial penalties,” said Acting Assistant Attorney General Ciraolo. “The Tax Division and its law enforcement partners stand ready to vigorously pursue and prosecute these offenders to the fullest extent of the law.”
According to evidence presented at trial, Tellis, the former owner of Club Iconz Bar and Grill in Montgomery, masterminded a more than $700,000 stolen identity tax refund scheme. Tellis’ co-conspirator, Nakia Jackson, obtained approximately 700 names, dates of birth and social security numbers from an employee of the Alabama Medicaid State Agency. Jackson provided some of the stolen names to Tellis, who in turn used them to file false income tax returns. In exchange, Tellis taught Jackson how to file false tax returns.
Tellis concealed the origin of the tax refund proceeds by recruiting friends and relatives, including Bobby Joe Means, Delancey Tolliver, Glen Powell Jr. and Tracey Montgomery, to open up bank accounts for the purpose of receiving the tax refunds. When the refunds were deposited into their bank accounts, Tellis directed them to withdraw the money and provide it to him. On the false tax returns submitted to the Internal Revenue Service (IRS), Tellis directed more than $300,000 in refunds to be deposited in those accounts. Tellis also recruited a bank teller, Laquanta Clayton, who used her position to open up bank accounts in the name of fictitious individuals and in the name of her daughter’s father. On the false tax returns submitted to the IRS, Tellis directed approximately $200,000 in refunds to be deposited into the accounts that Clayton controlled. Clayton withdrew the refund proceeds in cash and provided the majority of the money to Tellis. Tellis also took steps to conceal his involvement in the filing of false tax returns, including filing numerous tax returns by accessing another person’s residential wireless router that was not password protected so that it appeared as though the owner of the residence had filed the returns.
In 2014, Tellis’ co-conspirators were sentenced to prison for their involvement in the stolen identity refund fraud scheme. Jackson was sentenced to serve 87 months in prison, Clayton was sentenced to serve 21 months in prison, Tolliver was sentenced to serve 15 months in prison, Powell Jr. and Means were each sentenced to serve 12 months and one day in prison and Montgomery was sentenced to serve six months in prison.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey, Charles M. Edgar Jr. and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Five Indicted in Large Scale Heroin and Cocaine Distribution and Money Laundering ConspiracyRead the Press Release
$1.25 MILLION, COCAINE, HEROIN, FIREARMS AND AMMUNITION SEIZED
CINCINNATI –A federal grand jury has charged Christopher Whitfield, 41, of Cincinnati, Ohio, Tonia Whitfield, 39, of Cincinnati, Ohio and Steven Griffin, 39, of, Cincinnati, Ohio, with conspiracy to possess with intent to distribute one hundred grams or more of heroin, and five hundred grams or more of cocaine. Also, Christopher Whitfield, Tonia Whitfield, Dy Shay Anderson, 22, of Cincinnati, Ohio, and Icierra Martin-Bronson, 37, of Cincinnati, Ohio were charged with conspiracy to commit money laundering in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Cincinnati Police Chief Jeffrey Blackwell announced the indictment returned yesterday.
According to the indictment, the group allegedly processed, cut, packaged and stored cocaine and heroin in stash houses in the Cincinnati area prior to distribution.
Upon executing a search warrant, investigators found approximately one-quarter kilogram of heroin and over a kilogram of cocaine, plus narcotics paraphernalia (hydraulic presses, narcotics wrappers, grinders, scales, and baggies), numerous firearms, ammunition, and ballistic vests (body armor) and approximately $1.25 million in cash at the Cincinnati stash houses.
The indictment further alleges that between January 2011 and December 2014 Christopher Whitfield, Tonia Whitfield, Dy Shay Anderson, and Icierra Martin-Bronson conspired to commit money laundering by conducting financial transactions to launder the proceeds and/or profits earned from the illegal narcotics trafficking through various methods. They allegedly deposited smaller denominations of currency into bank accounts held in the names of others; deposited cash into bank accounts for the purpose of paying bills; obtained cashier’s checks to pay for Christopher Whitfield’s personal and business credit cards; used cash to purchase a 2010 BMW and purchased rental properties on behalf of EDC Properties with cash or cashier’s checks. Christopher Whitfield also allegedly filed false federal income tax returns with the IRS for the 2012 and 2013 tax years, by underreporting the amount of income he received in each of those years
Christopher Whitfield, Tonia Whitfield, and Steven Griffin were each charged with one count of conspiracy to possess with the intent to distribute one hundred grams or more of heroin and five hundred grams or more of cocaine.
Christopher Whitfield and Steven Griffin were each charged with one count of possession with the intent to distribute one hundred grams or more of heroin; one count of possession with the intent to distribute five hundred grams or more of cocaine; one count of being a felon in possession of a firearm; and one count of possessing a firearm in furtherance of a narcotics offense.
Christopher Whitfield was also charged with two counts of maintaining a drug involved premises.
Steven Griffin was also charged with one count of maintaining a drug involved premises.Christopher Whitfield, Tonia Whitfield, Dy Shay Anderson, and Icierra Martin-Bronson were each charged with one count of conspiracy to commit money laundering.
Tonia Whitfield and Dy Shay Anderson were also each charged with three counts of money laundering, and Icierra Martin-Bronson with two counts of money laundering.
Conspiracy to possess with the intent to distribute one hundred grams or more of heroin and five hundred grams or more of cocaine carries a maximum prison term of 40 years in prison, and has a mandatory penalty of at least 5 years in prison.
Possession with the intent to distribute one hundred grams or more of heroin carries a maximum penalty of 40 years in prison, and has a mandatory penalty of at least 5 years in prison. .
Possession with the intent to distribute five hundred grams or more of cocaine carries a maximum penalty of 40 years in prison, and has a mandatory penalty of at least 5 years in prison.
Being a felon in possession of a firearm carries a maximum penalty of 10 years in prison. Possessing a firearm in furtherance of a narcotics offense carries a maximum penalty of Life in prison, and has a mandatory minimum penalty of 5 years to be served consecutively to any other sentence imposed. Maintaining a drug involved premises, conspiracy to commit money laundering, and money laundering carries a maximum penalty of 20 years in prison.
Christopher Whitfield was arrested on March 31, 2015 on charges of possession of a firearm by a convicted felon and possession with the intent to distribute heroin. He was detained following his arrest.
Steven Griffin was arrested on March 31, 2015 on a charge of possession with the intent to distribute in excess of 100 grams of heroin. He was detained following his arrest.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today's indictment is a direct result of the excellent partnership that the IRS, U.S. Attorney’s Office, FBI, and Cincinnati Police Department has in combating major drug trafficking organizations, which have such a negative impact on our community."
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorneys Karl Kadon and Jessica Knight, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Federal Judge Sentences Tax Preparer to 12 Months in Prison for Filing False ReturnsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a former Birmingham tax-return preparer to 12 months in prison and ordered her to repay $44,080 to the Internal Revenue Service for filing false returns, announced U.S. Attorney Joyce White Vance and IRS, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge R. David Proctor sentenced KRISTIE E. SYKES on two counts of aiding in the preparation of a false return. Sykes, 44, of Birmingham, pleaded guilty to the charges in September. Sykes worked at the the now-defunct tax preparation business, VIP Tax Services, on Bankhead Highway in Birmingham. Proctor ordered Sykes to serve a year of supervised release following her prison term. Among special conditions of that release, the judge ordered Sykes to pay the restitution to the IRS and to refrain from assisting or aiding others in the preparation of taxes.
Sykes must report to prison July 15.
According to court records, Sykes orchestrated a tax refund scheme through VIP Tax Services. During the time Sykes professionally prepared tax returns, from 2008 to 2010, she filed false tax returns on behalf of taxpayer clients who retained VIP’s services, often including numerous false items on client’s returns in order to maximize their refunds.
Sykes pleaded guilty to two counts of preparing a false federal tax return while operating a tax preparation service by adding a false First-time Homebuyer Credit, a false dependent, false net losses and false deductions -- including for tuition and fees, medical and dental expenses, gifts to charity and job expenses, to clients’ returns.
In her plea agreement, Sykes also admitted to causing 11 false U.S. tax returns for 10 of her clients to be filed with the IRS for the tax years 2007-2009. Those returns contained fictitious dependents, inflated deductions, false income and expenses, and false education credits, and First-Time Homebuyer Credits or Residential Energy credits. Some of the false deductions and credits also enabled the defendant’s clients to falsely claim the Earned Income Credit, the Additional Child Tax Credit, and the Making Work Pay Credit. The total loss to the government was $49,411.
In a related case, JANICE FOY, 52, of Snellville, Ga., who owned and operated VIP, was sentenced in September 2014 to seven months in prison after pleading guilty to a two-count indictment charging her with one count of subscribing to a false federal tax return and one count of aiding in the preparation of a false return.
As part of their plea agreements, both women agreed to be permanently enjoined from aiding or assisting others in the preparation of taxes.
IRS-CI investigated the case, which Assistant U.S. Attorney Chinelo Dike-Minor is prosecuting.
Federal Grand Jury Returns Indictment Charging Topeka Man in Bomb CaseRead the Press Release
KANSAS CITY, KAN. – A federal grand jury today returned an indictment against a Topeka man who was charged in a criminal complaint last week with plotting to explode a bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom said.
John T. Booker, Jr., 20, Topeka, Kan., was indicted on one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), which is a foreign terrorist organization.
If convicted, Booker would face a maximum penalty of life in prison.
The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol and the Kansas Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney David Smith, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
OTHER FEDERAL GRAND JURY INDICTMENTS
Randal H. Duncan, 57, Wichita, is charged with one count of bank robbery. The indictment alleges that on April 6, 2015, he robbed the Emprise Bank at 237 N. Broadway in Wichita.
A criminal complaint filed in the case alleges he entered the bank about 12:50 p.m. and said to a teller, “I have a bomb, give me $40,000 cash.” He was arrested later at a laundromat at Hydraulic and Harry in Wichita.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
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Sixto Refugio Largerous-Perez, 42, who is not a citizen of the United States, is charged with one count of unlawfully re-entered the United States after being deported. He was found April 1, 2015, in Olathe, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement and the U.S. Marshals Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
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Carlos Byron, 59, Kansas City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 30, 2015 in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City (Kansas) Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
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James G. Martin, 40, Independence, Mo., is charged with one count of conspiracy to commit forgery one count of passing a counterfeit $100 bill and one count of possessing $570 in counterfeit bills. The crimes are alleged to have occurred from Sept. 1, 2013, to Feb. 1, 2015, in Johnson County, Kan.
f convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on the conspiracy count; and a maximum penalty of 20 years and a fine up to $250,000 on each of the other counts. The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
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Luis Gerardo-Montenegro, 21, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of possessing a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred April 2, 2015, in Wyandotte County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the drug charge, and penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Kansas Bureau of Investigation and ICE-HSI investigated. Special Assistant U.S. Attorney James Ward is prosecuting.
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Sarah Willson, 26, Olathe, Kan., is charged with one count of destroying mail while working as a U.S. Postal Service employee. The crime is alleged to have occurred Nov. 21, 2014, in Olathe, Kan.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Postal Service investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
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Matthew Williams, 46, Junction City, Kan., is charged with one count of bank fraud and one count of aggravated identity theft. The crimes are alleged to have occurred from July 25 to August 2014.
The indictment alleges he submitted false documentation on a Veterans Affairs home loan from Pulaski Bank. He also is alleged to have used another person’s Social Security number.
If convicted, he faces a maximum penalty of 30 years and a fine up to $1 million on the bank fraud charge, and an additional two years on the identity theft charge. The Veterans Administration – Office of Inspector General investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
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Bryce D. Draper, 26, Mission, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 7, 2015, in Douglas County, Kan.
If convicted, he faces a penalty of not less than 15 years and a fine up to $250,000. The Lawrence (Kansas) Police Department investigated. Assistant U.S. Attorney David Zabel is prosecuting.
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In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Escapee Apprehended in San Antonio -- Charged in Connection with two Austin Bank RobberiesRead the Press Release
In San Antonio yesterday, local authorities apprehended 37-year-old federal escapee Brian Anthony Whitford announced Acting United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and United States Marshal Robert Almonte.
A federal criminal complaint filed today in Austin charges Whitford with one count of escape and two counts of bank robbery. According to the complaint, on Monday morning (4.13.15), Whitford escaped from a halfway house in Del Valle, TX, where he was completing his federal sentence for robbing two Austin banks in April 2010. The complaint alleges that on the same day of his escape, Whitford robbed the Compass Bank located on South Congress Ave. and attempted to rob the Wells Fargo Bank located on Guadalupe Street. The complaint further alleges that Whitford stole approximately $3,700 from Compass Bank.
According to court records, the Compass Bank and Wells Fargo Bank were the same two financial institutions Whitford was convicted of robbing back in April 2010 and subsequently sentenced to 71 months in federal prison.
Upon conviction, Whitford faces up to 20 years in federal prison for each bank robbery charge and up to five years in federal prison on the escape charge.
This joint investigation was conducted by the FBI and the United States Marshals Service with assistance from the Austin and San Antonio Police Departments. Assistant United States Attorney Ashley Hoff and Gregg Sofer are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Federal Court Approves Justice Department Agreement to Protect the Rights of Military and Overseas Voters in IllinoisRead the Press Release
The Justice Department announced today that the federal court in Chicago has approved an agreement between the department and Illinois officials to help ensure that military service members, their family members and U.S. citizens living overseas have an opportunity to participate fully in the upcoming special primary election and special election to fill a vacated seat in the state’s 18th Congressional District. The agreement is necessary to ensure Illinois’ compliance with the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).
The agreement, filed simultaneously with the complaint on April 6, 2015, requires that the state adopt an election calendar which enables local jurisdictions to transmit ballots to UOCAVA voters at least 45 days before the upcoming special elections as the federal law requires. The agreement establishes July 7, 2015, as the date for the special primary election and Sept. 10, 2015, as the date for the special election. These dates were selected to allow the election authorities sufficient time to complete all the pre-election steps necessary to timely transmit ballots to UOCAVA voters as required by the federal law. The agreement also requires that the state take measures to notify UOCAVA voters of the election dates and relevant deadlines.
“This agreement with Illinois reflects our continued commitment to ensure that members of our armed forces, their families and overseas U.S. citizens are offered a full and meaningful opportunity to vote in all federal elections, including the upcoming special elections for United States Representative from Illinois’ 18th Congressional District, and all future special elections,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Department of Justice will always work to ensure U.S. citizens can exercise their right to vote.”
UOCAVA requires states to allow uniformed service voters, serving both overseas and within the United States, and their families and U.S. citizens overseas to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the Military and Overseas Voter Empowerment (MOVE) Act, which amended UOCAVA to require that states transmit absentee ballots to voters covered under UOCAVA, by mail or electronically at the voter’s option, no later than 45 days before federal elections.
The complaint and agreement were necessary because Illinois law mandates a truncated election schedule for holding special elections to fill vacancies for U.S. Representative that prevents Illinois from ensuring transmittal of ballots to UOCAVA voters at least 45 days before the special primary election and the subsequent special election. Under the terms of the agreement, Illinois is also required to take the necessary action to ensure that UOCAVA voters have a fair and reasonable opportunity to participate in future federal special elections for U.S. Representatives in Congress, including pursuing permanent changes to Illinois law governing the state’s special election calendar that will permit compliance with UOCAVA’s ballot transmission requirements. The agreement also requires that Illinois provide detailed reports to the department concerning the transmission of ballots for the scheduled special elections in the 18th Congressional District.
More information about UOCAVA and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/about/vot/misc/activ_uoc.php. Please report any complaints to the Civil Rights Division’s Voting Section at 1-800-253-3931.
Etowah County Man Sentenced to 80 Years in Prison for Producing, Possessing Child PornographyRead the Press Release
BIRMINGHAM -- A federal judge today sentenced an Etowah County man to 80 years in prison for exploiting two young children to produce child pornography, and for possessing about 1,500 pornographic videos and images of other children, announced U.S. Attorney Joyce White Vance, Homeland Security Investigations New Orleans Acting Special Agent in Charge Cindy M. Johnson and Etowah County Sheriff Todd Entrekin.
U.S. District Judge Virginia Emerson Hopkins sentenced VICTOR GRAY DINGLER, 33, to the 80-year prison term, to be followed by a lifetime of supervised release. Dingler pleaded guilty in November to five counts of producing child pornography between 2008 and 2014, and to two counts of possessing child pornography involving children younger than 12.
Some of the pornography Dingler produced involved a 3-year-old child. The second victim was an elementary school student in Etowah County, according to court records. The Alabama Department of Education was instrumental in helping law enforcement locate that child in September 2014, after HSI received a series of images that originated from a website located by Danish National Police. One of the images included a blanket bearing an Alabama university logo, according to court records.
“The government sought a sentence that would put this defendant behind bars for the rest of his life because of the serious and appalling nature of his crimes against young children," Vance said. "He has acknowledged that he sexually abused two young children, and that he produced and distributed pornographic images of his exploitation. His victims will have to live the rest of their lives with the memories of what he did to them, and with the knowledge that he memorialized his abuse in images and videos, some that travelled around the world," she said.
"Individuals who produce child pornography are directly responsible for what is, in plain language, the rape of children. Child pornography steals the innocence of children and destroys lives," Johnson said. "Sexual abuse scars children for life, and HSI will continue to use all the tools in its arsenal to identify the perpetrators of these horrendous acts and seek justice on behalf of their victims,” she said.
"We are pleased with the sentence given to this predator today," Entrekin said. "His disgusting behavior and abusive actions have taken away the innocence of young victims; something no one, no matter the age, should ever endure. I appreciate the cooperation among Homeland Security Investigations and the office of U.S. Attorney Joyce Vance in bringing this case to a close.”
The victimization of the innocent children depicted in the pornographic pictures Dingler possessed "continues to live on with an insidious vitality through the perverted behavior of people like the defendant, who each and every time they distribute and receive an image of a naked child, proliferate the available quantity of the material," the government said in its sentencing memorandum.
The Department of Homeland Security-HSI and the Etowah County Sheriff's Department investigated the case, which Assistant U.S. Attorneys Jacquelyn Hutzell, Xavier Carter and Daniel J. Fortune prosecuted.
East St. Louis Man Pleads Guilty to Cocaine DistributionRead the Press Release
On April 16, 2015, Troy Edwards, a twenty-six year old East St. Louis, Illinois, man, pled guilty in federal district court, in East St. Louis, to one count of Distribution of Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Edwards is scheduled for sentencing on July 17, 2015, at 11 a.m. at which time he faces a maximum sentence of 20 years in prison and/or a fine of up to $1,000,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Facts presented in court revealed that Edwards sold approximately three ounces of cocaine and one ounce of heroin on January 25, 2013, to a confidential informant, acting at the direction of Drug Enforcement Administration (DEA) agents, in East St. Louis, Illinois.
This case was investigated by the DEA and is being prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Drug dealers face charges in federal court in BluefieldRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced that two drug dealers appeared in federal court in Bluefield, West Virginia. Shawn Owen Gillespie II, 25, of Shady Spring, West Virginia was sentenced to 18 months in prison for possession with intent to distribute heroin. Gillespie pled guilty on December 3, 2014, admitting that on May 12, 2014, he possessed more than 400 pouches of heroin, which he intended to sell. Gillespie possessed the heroin in Princeton, West Virginia. Adrian Dewayne King, also known as “Fled,” 38, of Bluefield, West Virginia, pled guilty to using a communication facility to facilitate a felony. King admitted that on January 21, 2015, he had a telephone conversation with a confidential informant (CI) to set up a drug deal. A few minutes after the telephone conversation, King met the CI as planned, and sold hydromorphone to the CI. The phone call and drug deal took place in Bluefield, West Virginia. King faces up to four years in prison and a $250, 000 fine when he is sentenced on August 13, 2015.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force as part of the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. Assistant United States Attorney John File handled the prosecutions of Gillespie and King.
Dartmouth Selectman Convicted of EmbezzlementRead the Press Release
BOSTON – A Dartmouth Selectman was convicted today of embezzling funds from his bus company, which was subsidized with taxpayer funds, to bankroll his personal farm.
John George, 68, was indicted in August 2014, and today he was convicted by a jury of one count of conspiracy and one count of embezzlement. Sentencing is scheduled for July 15, 2015, before Judge Denise Casper.
The defendant owned Union Street Bus Company (USBC), a New Bedford-based company that operated public buses. During the same period, George operated John George Farms (JG Farm), a large produce farm based in Dartmouth. From approximately 1991 to 2011, USBC was awarded the Southeastern Regional Transit Authority (SRTA) contract to operate the SRTA public bus system that served a region that included New Bedford, Fall River, and several other neighboring towns.
The evidence at trial showed that, while USBC had the SRTA contract, George conspired with certain individuals to have various USBC employees work at JG Farm during their assigned USBC work hours. Such farm work included plowing, loading produce, and operating a produce stand at JG Farm, all during USBC business hours. As part of the conspiracy to commit an offense against the United States, George deployed USBC workers to JG Farm to repair George’s farm equipment, used USBC equipment and labor to provide personal out-of-state roadside assistance, and inflated his final yearly salary from $75,000 to $275,000 in an attempt to fraudulently boost his SRTA pension.
The maximum penalty for the charge of embezzlement is a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 on the charge of embezzlement from an organization that received federal funds. On the charge of conspiracy to defraud the United States, the maximum penalty is a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Todd A. Damiani, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Boston Field Office, made the announcement today. The case was investigated by the U.S. Department of Transportation, Office of the Inspector General, and is being prosecuted by Assistant United States Attorney Dustin Chao and Assistant United States Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Darron Webb Sentenced for Possession with Intent to Distribute More Than 100 Grams of HeroinRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Darron Webb, 29, of South Bend, Indiana, was sentenced today, for possession with intent to distribute more than 100 grams of heroin.
Webb was sentenced to 10 years imprisonment and 4 years of supervised release.
According to documents in the case, in September of 2014, the United States Drug Enforcement Agency, the Elkhart County Prosecutor’s Office Interdiction and Covert Enforcement Unit (Elkhart ICE Unit), the South Bend Police Department Metro Special Operations Section (South Bend MSOS), the Indiana State
Police and the U.S. Bureau of Alcohol Tobacco and Firearms initiated an investigation into heroin trafficking by several individuals operating in South Bend, Indiana. Information was received by investigators indicating that a male known as “D” was dealing heroin in South Bend, Indiana. “D” was later identified as Darron A. Webb. In early October 2014, Darron Webb possessed at one time 100 grams or more of a mixture or substance containing a detectable amount of heroin as part of his heroin trafficking.
This case was the result of an investigation by the United States Drug Enforcement Agency, the Elkhart County Prosecutor’s Office Interdiction and Covert Enforcement Unit (Elkhart ICE Unit), the South Bend Police Department Metro Special Operations Section (South Bend MSOS), the Indiana State Police and the U.S. Bureau of Alcohol Tobacco and Firearms. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
Columbus, Ohio, Man Charged with Providing Material Support to TerroristsRead the Press Release
A federal grand jury has charged Abdirahman Sheik Mohamud, 23, of Columbus, Ohio, with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization, and one count of making false statements to the FBI in an indictment returned in the Southern District of Ohio.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division announced the indictment returned today.
According to court documents, Mohamud left the United States in April 2014 for the purpose of training and fighting with terrorists in Syria.
As a naturalized citizen of the United States, he obtained a U.S. passport and purchased a one-way ticket to Greece. He did not board his connecting flight to Athens, Greece, during his layover in Istanbul, Turkey, and instead completed pre-arranged plans to travel to Syria.
According to the indictment, Mohamud stated that, after arriving in Syria, he obtained training from a group in shooting weapons, breaking into houses, explosives and hand-to-hand combat. Mohamed also stated that, after completing this training, he was instructed by a cleric in the organization to return to the United States and commit an act of terrorism.
“According to the charges in the indictment, Mohamud allegedly traveled to Syria to train with and fight alongside terrorists” said Assistant Attorney General Carlin. “Identifying and neutralizing the threat posed by foreign terrorist fighters who return to the United States is one of the National Security Division’s highest priorities. I want to thank the many agents, analysts, and prosecutors who are responsible for this ongoing investigation and today’s charges.”
“Mohamud sought and obtained terrorist training in Syria,” said U.S. Attorney Stewart. “Upon his return to the United States, he discussed carrying out acts in the United States.”
“The Joint Terrorism Task Force and our law enforcement partners work tirelessly to protect our community," said Special Agent in Charge Byers. “Cases like this are tangible reminders of the threats we face each day.”
Providing material support to terrorists and providing material support to a designated foreign terrorist organization – in this case, namely, Jabhat al-Nusrah – are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison.
Mohamud is scheduled to be transferred into federal custody based on today’s indictment. He was arrested and detained on state charges on Feb. 21, 2015.
Assistant Attorney General Carlin and U.S. Attorney Stewart commended the JTTF for its work on this investigation, and also thanked Franklin County Prosecutor Ron O’Brien and his office for their ongoing efforts in this investigation. The case is being prosecuted by Assistant U.S. Attorneys Doug Squires, Dana Peters and Salvador Dominguez of the Southern District of Ohio, Special Assistant U.S. Attorney Joseph Gibson with the Franklin County Prosecutor’s office, and Trial Attorney Bridget Behling of the Justice Department’s National Security Division.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Mohamud Indictment
Columbus Man Charged with Providing Material Support to TerroristsRead the Press Release
WASHINGTON –A federal grand jury has charged Abdirahman Sheik Mohamud, 23, of Columbus, with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization and one count of making false statements to the FBI involving international terrorism in an indictment returned in Columbus, Ohio.
Assistant Attorney General for National Security John P. Carlin, Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Prosecutor Ron O’Brien and the FBI’s Columbus Joint Terrorism Task Force (JTTF), announced the indictment returned today.
According to court documents, Mohamud left the United States in April 2014 for the purpose of training and fighting with terrorists in Syria.
As a naturalized citizen of the United States, he obtained a U.S. passport and purchased a one-way ticket to Greece. He did not board his connecting flight to Athens, Greece during his layover in Istanbul, Turkey, and instead completed pre-arranged plans to travel to Syria.
According to the indictment, Mohamud stated that, after arriving in Syria, he obtained training from a group in shooting weapons, breaking into houses, explosives and hand-to-hand combat. Mohamed also stated that, after completing this training, he was instructed by a cleric in the organization to return to the United States and commit an act of terrorism.
“According to the charges in the indictment, Mohamud allegedly traveled to Syria to train with and fight alongside terrorists” said Assistant Attorney General Carlin. “Identifying and neutralizing the threat posed by foreign terrorist fighters who return to the United States is one of the National Security Division’s highest priorities. I want to thank the many agents, analysts, and prosecutors who are responsible for this ongoing investigation and today’s charges.”
“Mohamud sought and obtained terrorist training in Syria,” U.S. Attorney Carter Stewart said. “Upon his return to the United States, he discussed carrying out acts in the United States.”
"The Joint Terrorism Task Force and our law enforcement partners work tirelessly to protect our community," stated FBI Special Agent in Charge Angela L. Byers. "Cases like this are tangible reminders of the threats we face each day."
“Our office worked with the JTTF to assist in the arrest and continued detention of Mohamud, including securing a terrorism indictment in State court,” Franklin County Prosecutor Ron O’Brien said. “That state court charge will now be dismissed and that cooperation will continue in federal court with Assistant Prosecutor Joseph Gibson being named to the trial team to assist in the prosecution of the federal indictment that was announced today.”
Providing material support to terrorists and providing material support to a designated foreign terrorist organization – in this case, namely, Jabhat al-Nusrah – are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison.
Mohamud is scheduled to be transferred into federal custody based on today’s indictment. He was arrested and detained on state charges on Feb. 21, 2015.
Assistant Attorney General Carlin and U.S. Attorney Stewart commended the cooperative investigation of JTTF, and Assistant United States Attorneys Doug Squires, Dana Peters and Salvador Dominguez, Special Assistant United States Attorney Joseph Gibson with the Franklin County Prosecutor’s office and Department of Justice National Security Division Trial Attorney Bridget Behling, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Man Charged for 6 Central Ohio Armed RobberiesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Thomas E. Shaffer, 62, of Columbus, Ohio, with six armed robberies in an indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Delaware County Sheriff Russell L. Martin, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Donald Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Delaware County Prosecutor Carol O’Brien, Columbus Police Chief Kim Jacobs, Gahanna Police Chief Dennis Murphy, Powell Police Chief Gary L. Vest and Worthington Police Chief James Mosic announced the indictment returned today.
The indictment alleges that on six different occasions, Shaffer robbed establishments in Central Ohio while armed. Specifically, Shaffer allegedly robbed The Pub in Gahanna, Ohio; Halftime Tavern in Columbus, Ohio; Brew-Stirs on 23 in Columbus, Ohio; Lazy Chameleon in Powell, Ohio; Villa Nova in Worthington, Ohio and Aldi in Lewis Center, Ohio between March 2014 and December 2014 while brandishing a firearm.
Shaffer was indicted on six counts of robbery, a crime punishable by up to 20 years in prison and six counts of using a firearm during the commission of the robberies. Brandishing a firearm during and in relation to a crime of violence carries a potential penalty of seven years in prison for the first count of conviction and up to 25 years of prison consecutively for each additional count.
U.S. Attorney Stewart commended law enforcement’s cooperative investigation of this case, and Assistant United States Attorney David DeVillers and Special Assistant United States Attorney Brian Martinez, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Clearwater and Jacksonville Men Indicted for Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Darius Jondi Edwards (35, Clearwater) with manufacturing and passing counterfeit currency. His co-defendant, Timothy Deante Burroughs (28, Jacksonville), is charged with passing counterfeit currency. If convicted on all counts, Edwards faces a maximum penalty of 40 years in federal prison. Burroughs faces a maximum penalty of 20 years’ imprisonment. Both men were arraigned earlier this month and ordered detained.
According to the indictment, Edwards began manufacturing counterfeit currency, beginning at least in November 2014. Edwards and Burroughs then began passing the counterfeit currency in Duval County, Florida.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Chelmsford Man Charged in Plot to Murder State TrooperRead the Press Release
BOSTON – A Chelmsford man was charged yesterday in U.S. District Court in Boston for initiating a murder-for-hire plot.
Andrew S. Gordon, 52, was charged in a criminal complaint with use of interstate commerce facilities in the commission of murder-for-hire. He is scheduled to have an initial appearance before U.S. District Court Magistrate Judge Judith G. Dein on Friday, April 17, 2015.
According to the complaint, in October 2014, Gordon was charged by the Middlesex County District Attorney’s Office with plotting to have his estranged wife murdered. In that case, Gordon attempted to hire a “hit man” to kill his wife; however, the “hit man” was actually an undercover Massachusetts State Trooper. Since his arrest, Gordon has been held on state charges at the Middlesex House of Correction and Jail.
According to the federal complaint, while Gordon was incarcerated on the state charge, he attempted to hire a gang member living in New Hampshire to kill a Massachusetts State Trooper and another individual who were both witnesses against him in the pending case. For the commission of the murders, Gordon offered $15,000 and instructed that the murders were to appear accidental. Gordon, who believed that murdering the witnesses would effectively end the state’s ability to prosecute him, was actually communicating with an undercover officer.
The federal statute provides for a sentence of no greater than ten years in prison, three years of supervised release, and a fine of $250,000. Gordon will be prosecuted and sentenced separately by the Commonwealth of Massachusetts for the crimes charged by the state.
U.S. Attorney Carmen M. Ortiz; Middlesex County District Attorney Marian Ryan; Middlesex Sheriff Peter J. Koutoujian; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cary, Illinois Man Charged in Federal Court with Robbery of Fifth Third Bank in Woodstock, IllinoisRead the Press Release
ROCKFORD — A Cary, Ill. man was charged today in federal court with bank robbery. MICHAEL FETERICK, 45, of Cary, Ill., also known as “Michael Retterly,” was charged with the robbery of Fifth Third Bank, 1745 South Eastwood Drive, Woodstock, Ill., on April 15, 2015. According to the complaint, at about 10:50 a.m., Feterick entered the bank and presented a note written in black sharpie stating "Money, no dye pack" to a bank teller. The teller provided the subject with money from the teller’s drawer and left the bank. Feterick was arrested late yesterday by the FBI, and law enforcement officers of the Crystal Lake and Woodstock Police Departments, at a hotel in Algonquin, Ill. Feterick is presently in federal custody pending his initial appearance before U.S. Magistrate Judge Iain D. Johnston at 3:30 p.m. today.
Bank robbery carries a maximum potential penalty of up to 20 years in prison, up to 3 years of supervised release following imprisonment, a fine of up to $250,000, and full restitution. 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 complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Robert W. Lowen, Chief of the Woodstock, Illinois Police Department; and James R. Black, Chief of the Crystal Lake, Illinois Police Department. The U.S. Marshals Service, and law enforcement officers of the McHenry County Sheriff’s Department and the Algonquin, Illinois Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Complaint
Convicted Felon Sentenced to Two Years in Prison for Possession of a FirearmRead the Press Release
Jackson, Miss – Otis McGee, 28, of Choctaw, Mississippi, was sentenced today by U.S. District Judge Henry T. Wingate, Jr. to 24 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis. McGee pled guilty to the charge on January 29, 2015. The crime occurred on the tribal lands of the Mississippi Band of Choctaw Indians.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the Federal Bureau of Investigation and the Mississippi Band of Choctaw Indians Police Department. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
Brian Gill Sentenced to Life and His Brothers David Gill and Samuel Mcintosh Sentenced to 40 Years for Drug-Related MurderRead the Press Release
Earlier today, in U.S. District Court in Brooklyn, New York, Chief Judge Carol Bagley Amon sentenced defendant Brian Gill to life in prison and his brothers David Gill and Samuel McIntosh to 40 years in prison. Following a three-week trial in November 2014, the three brothers were convicted of the June 22, 1994, drug-related murder of Michael Dawson and conspiracy to commit the murder. Brian Gill and David Gill were also convicted of a narcotics trafficking conspiracy between 2011 and 2013. At sentencing, the court found by clear and convincing evidence that Samuel McIntosh also participated in the 2011-2013 narcotics trafficking conspiracy. The charges stemmed from the defendants’ control of a drug-trafficking organization that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
Over the course of two decades, the defendants intermittently operated a lucrative drug distribution business in Park Hill. On June 22, 1994, in connection with that business and in retaliation for selling crack cocaine on the defendants’ turf, the defendants brazenly murdered 22-year-old Michael Dawson in broad daylight in the street outside 160 Park Hill Avenue, a profitable building for crack dealing. Shortly thereafter, Brian Gill fled Staten Island. In 2011, when Brian Gill returned to Park Hill after 17 years, he launched another crack dealing business in Park Hill from his residence at 160 Park Hill Avenue. David Gill and Samuel McIntosh participated in and helped Brian Gill with that business.
“For years, these defendants escaped punishment for a senseless murder they committed in a community plagued by drug-trafficking and violence for far too long,” stated United States Attorney Lynch. “The sentences imposed appropriately reflect the seriousness of their crimes and demonstrate our steadfast commitment to holding accountable those who choose to commit murder and drug-trafficking, regardless of the age of their crimes.” Ms. Lynch extended her grateful appreciation to the FBI, the New York City Police Department, and the Richmond County District Attorney for their outstanding work in this case.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia Shihata, Alicyn Cooley, and Tali Farhadian are in charge of the prosecution.
The Defendants:
BRIAN GILL
Age: 46 years
Staten Island, New York
DAVID GILL
Age: 43 years
Staten Island, New York
SAMUEL MCINTOSH
Age: 40 years
Staten Island, New York
E.D.N.Y. Docket No. 13-CR-487 (CBA)
Boynton Man Sentenced to 188 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL WAYNE CHERRY, age 48, of Boynton, Oklahoma, was sentenced to 188 months imprisonment, followed by 5 years of supervised release for Felon in Possession of a Firearm, in violation of Title 18 United States Code, Section 922(g)(1).
The charge arose from an investigation by and the Muskogee County Sheriff’s Department. The defendant was indicted in December, 2013 and was found guilty at a jury trial in September, 2014.
The evidence presented at trial proved that on or about September 4, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, the following firearm; one Mossberg model 500A, 12 gauge pump action shotgun that had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial. The defendant will remain in custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.