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Thursday 19 February 2015
Operation Southern Wave Targets Florida Identity Theft, FraudRead the Press Release
The State Department’s Diplomatic Security Service (DS) Miami Field Office, working with multiple federal, state, and local enforcement authorities, has apprehended 26 men and women sought as suspects of identity theft, as well as passport and visa fraud.
Operation Southern Wave, a Florida statewide law enforcement operation stretching from Jacksonville to Miami, was conducted from February 3 to 18.
“The apprehension of fugitives and suspects delivers a clear message that federal, state, and local law enforcement authorities will find and bring to justice any individuals who attempt to defraud the U.S. government,” said Wendy A. Bashnan, Special Agent in Charge of the DS Miami Field Office.
“If you engage in passport or visa fraud or engage in other forms of identity theft, sooner or later we will track you down.”
Operation Southern Wave generated a total of 18 new complaints and indictments for individuals suspected of passport and/or visa fraud.
17 individuals were charged in the Southern District of Florida for making false statements in application for a passport. Another 9 individuals were charged in the Middle District of Florida for making false statements in application for a passport.
If convicted, individuals charged with falsifying a passport application will face a maximum penalty of 10 years’ imprisonment, and up to a $250,000 fine.
Approximately 150 federal, state, and local law enforcement officers were among those involved in support of Operation Southern Wave.
“The Florida Highway Patrol is committed to collaborating with federal, state, and local law enforcement to identify, arrest and pursue prosecution of those who commit identity theft crimes in Florida,” said Colonel David Brierton, director of the Florida Highway Patrol. “Operation Southern Wave’s success is a testament to that commitment.”
The DS Miami Field Office has responsibility for eight southern states. It brought in personnel from its entire region to assist in Operation Southern Wave.
DS partnered with the U.S. Attorney’s Offices from the Southern and Middle Districts of Florida, along with the Department of Homeland Security (DHS) Enforcement and Removal Operations; DHS Homeland Security Investigations; U.S. Marshals Service; Florida Highway Patrol; Miami-Dade Police Department; and several other local law enforcement offices.
Mr. Ferrer commended DS for leading this operation, and thanked all participating agencies for their investigative efforts and assistance. The cases in this District are being prosecuted by Cary Aranovitz, Daniel Cervantes, Robert Emery, Matthew Langley, Daya Nathan, Jonathan Osborne, Kevin Quencer, and Adam Weisholtz.
A complaint/indictment is a formal charge that a defendant has committed one or more violations of federal criminal law. All defendants are presumed innocent unless, and until, proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Norfolk Man Indicted in Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 53, of Norfolk, was indicted by a federal grand jury on charges that he conspired to commit mail fraud, committed mail fraud, aggravated identity theft, and false claims in connection with a scheme to defraud the Internal Revenue Service.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service-Criminal Investigations, made the announcement.
Chisholm faces a maximum penalty of 144 years in prison if convicted of all counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The indictment alleges Chisholm’s scheme began in 2010. Chisholm recruited an employee of a local check cashing business to cash over $2 million in U.S. Treasury checks. The employee of the check cashing business was paid $200 per check to cash the treasury checks in violation of the company’s policies. Chisholm, along with unidentified co-conspirators stole the personal identifying information of numerous people and filed at least 698 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2,273,119.52 in fraudulent income tax refunds.
This case was investigated by the Internal Revenue Service. Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.New Orleans Woman Pleads Guilty to Theft of Social Security BenefitsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LAVERNE ROSE, age 69, of New Orleans, pled guilty yesterday to theft of government funds.
ROSE admitted that she stole $282,400 from the Social Security Administration over the course of 23 years. According to court documents, ROSE jointly held a bank account with her father, who died in 1990. Unaware of ROSE’s father’s death, the Social Security Administration continued wiring retirement benefits for him to the account. ROSE received and spent the benefits until 2014 when the Social Security Administration learned that ROSE’s father had died. ROSE admitted that she knew the payments should have ceased and that they did not belong to her.
ROSE faces up to ten years’ incarceration and a fine of up to twice the theft amount. U.S. District Judge Kurt D. Engelhardt set sentencing for May 13, 2015.
U.S. Attorney Polite praised the work of the United States Social Security Administration in investigating this matter. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
New Orleans Man Pleads Guilty to Bank RobberyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK MORGAN, age 37, of New Orleans, pled guilty today to bank robbery and use of a dangerous weapon in commission of same.
On September 12, 2014, MORGAN was charged in a one-count Indictment. According to the factual basis filed into the record, on Wednesday, September 3, 2014, MORGAN, who was dressed as a female, robbed the Fidelity Homestead Savings Bank located on St. Charles Avenue in New Orleans by force, violence and intimidation. Deposits made at Fidelity Homestead Savings Bank are insured by the Federal Deposit Insurance Corporation (FDIC).
U.S. District Judge Carl J. Barbier will sentence MORGAN on May 14, 2015. MORGAN faces a maximum of 25 years imprisonment, followed by 5 years of supervised release.
U.S. Attorney Polite praised the work of Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
New Haven Man Charged with Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ANTHONY REID, 26, of New Haven, with possession of a firearm by a convicted felon.
The indictment alleges that on October 20, 2014, REID possessed a semi-automatic rifle.
Prior to October 2014, it is alleged that REID had sustained felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, REID faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
The indictment seeks the forfeiture of the semi-automatic rifle, as well as 101 rounds of ammunition that were seized on October 20, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Nelson.
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[email protected]Naples Man Pleads Guilty in Connection with Sunshine Pharmacy Health Care Fraud ConspiracyRead the Press Release
Fort Myers, Florida –United States Attorney A. Lee Bentley, III announces that Adam Parrish (35, Naples) has pleaded guilty to an Information charging him with seven counts of conspiracy to commit health care fraud, three counts of aggravated identify theft, and three counts of improper use of a DEA Registration Number. He faces a maximum penalty of 10 years in federal prison for the conspiracy charges, an additional two years for each aggravated identity theft count, which must be served consecutively to the conspiracy offense, and four years in federal prison for each improper use of a DEA Registration Number offense. A sentencing date has not yet been scheduled.
According to the plea agreement, from February 2009 through July 2012, Adam Parrish conspired with Delmer Holmes Parrish and Patricia Parrish to defraud federal health care benefit programs out of approximately $351,358. All three, along with others, used Sunshine Pharmacy and Sunshine Solutions in Naples to further their unlawful scheme to defraud the government. The co-conspirators submitted and caused claims to be submitted for reimbursement from the Medicaid, Medicare, and TRICARE programs for prescriptions that had not been filled or provided to beneficiaries and recipients, including prescriptions for patients that had not been written or authorized by any duly licensed physician. In addition, they submitted and caused claims to be submitted for reimbursement from these programs for prescriptions for beneficiaries and recipients who were deceased. In carrying out the offenses, the conspirators also used the means of identification of individuals who were enrolled in the Medicaid, Medicare, or TRICARE programs without their knowledge or consent. As a result of the scheme, the government was defrauded out of approximately $351,358.
In addition, Adam Parrish admitted that he had unlawfully used the names of three federal health care beneficiaries to commit health care fraud. He also admitted that he had utilized two different physicians’ DEA Registration Numbers, on three occasions, to acquire or obtain controlled substances from pharmacies in Collier County.
Delmer Parrish and Patricia Parrish were sentenced for their role in the conspiracy in April 2014. Delmer Parrish, who was a licensed pharmacist and owner of Sunshine Pharmacy, surrendered his pharmacist license and was sentenced to 24 months in federal prison. Patricia Parrish, Delmer’s Parrish’s mother, was sentenced to house arrest for 120 days, to be followed by three years of probation. In addition, Delmer and Patricia Parrish paid $351,358 in restitution to the United States at the time of their sentencing.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Department of Defense, Defense Criminal Investigative Service, and the Drug Enforcement Administration, with assistance from the Naples Police Department, the Collier County Sheriff's Office, and the United States Secret Service. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Mortgage Fraud Schemers Get 15 Year Prison TermsRead the Press Release
PHILADELPHIA – Walter Alston Brown, 47, of Providence Forge, Virginia, and Glen Allen, Virginia, and Cynthia Evette Brown, 53, of Philadelphia, PA, were each sentenced today to 180 months in prison for their roles in a multi-million dollar mortgage fraud scheme. Walter Brown was a mortgage broker with First Horizon Home Loans, Foxworth Inc., Carteret Mortgage, and Advantage Lending and was one of the four owners of KREW Settlement Services, a real estate settlement company. He was convicted on October 17, 2014 of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and tax evasion. Cynthia Brown was convicted of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and wire fraud. The two were among 17 defendants charged in the case.
In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Walter Brown to pay $7,213,123 in restitution to the victims of his fraud plus another $31,903 in restitution to the IRS; Cynthia Brown was ordered to pay $7,488,608.48 in restitution. Both defendants were also ordered to complete five years of supervised release.
Between May 2004 and February 2009, the conspirators inflated purchase prices on loan documents for more than 100 Philadelphia properties resulting in more than $20 million in fraudulent loan proceeds. The scheme involved identifying distressed properties to purchase, typically in the West Philadelphia area, recruiting “straw buyers” whose credit history and personal information were used to purchase the properties, obtaining mortgage loans, and taking title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Cynthia Brown falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. The defendants and their conspirators falsely prepared deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. They also created false title insurance policies for the lenders.
After the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed among the defendants.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Department of Housing and Urban Development’s Office of Inspector General. It was prosecuted by Assistant United States Attorney Michael S. Lowe.
Montgomery County Dental Practice Resolves Allegations of DiscriminationRead the Press Release
PHILADELPHIA – Dentex Dental Mobile, Inc. (“DDMI”), a Pennsylvania corporation located in Huntington Valley, has reached a settlement with the United States to resolve allegations that it refused to treat an HIV-positive patient in violation of the Americans with Disabilities Act (“ADA”).
As part of its business, DDMI owns and operates several dental clinics, both fixed and mobile, throughout the Philadelphia area. As a result of its investigation, the United States determined that a DDMI mobile clinic, stationed in Chester, PA, refused to treat a patient, who was previously treated at its mobile clinic and who had disclosed in paperwork at both visits his HIV status. The Office Manager allegedly referred the patient to an AIDS clinic for further assistance. According to the Americans with Disabilities Act, a healthcare provider cannot refer a patient with HIV or AIDS to another provider simply because the patient has HIV or AIDS.
As a result of the United States’ investigation, Dentex has agreed to implement a non-discrimination policy, conspicuously post that policy, and adequately train employees and contractors regarding the policy. The Agreement is in effect for two years.
This case was handled by Assistant United States Attorney Jacqueline C. Romero.
Meth Lab Dismantled in Cranston, Two Detained in Federal CustodyRead the Press Release
PROVIDENCE, R.I. – Nicholas Selser, 33, and Michael Fortes, 48, of Cranston, have been ordered detained in federal custody on charges that they allegedly manufactured methamphetamine inside their apartment at the Devan Manor housing complex in Cranston, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
According to court documents, Cranston Police, the DEA Drug Task Force and the DEA Clandestine Laboratory Enforcement Team of New Hampshire executed a court authorized search of the defendants’ apartment on Wednesday, and seized various chemicals, supplies and items used in the manufacture of methamphetamine. The manufacture of methamphetamine is often times a dangerous process which may result in explosion or fire. The Devan Manor housing complex is a densely populated complex which includes a substantial number of elderly residents.
According to court documents, during the execution of the warrant, evidence was found indicating that methamphetamine had been manufactured approximately eleven times on prior occasions using the “one pot” method of methamphetamine manufacture. The “one pot” or “shake and bake” method is a simple but potentially very dangerous method of manufacturing methamphetamine in approximately one hour.The “one pot” method uses an empty container to combine ephedrine or pseudoephedrine, camping fuel or some other ether product, sulfuric acid, ammonia nitrate powder, lithium strips from batteries, and lye or some other sodium hydroxide product with water to produce liquid methamphetamine. The methamphetamine liquid is poured off, leaving waste byproduct. The liquid is then gassed off, producing methamphetamine. The containers will often leak dangerous chemicals because the containers cannot always withstand the pressure produced by the chemical reactions. The “one pot” method is also prone to cause fires and can sometimes cause explosions.
Nicholas Selser and Michael Fortes are charged with one count each of conspiracy to manufacture methamphetamine; manufacture of methamphetamine; possession of precursor chemicals to manufacture methamphetamine; and possession of equipment, products and material which may be used to manufacture methamphetamine.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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[email protected]Mergers and Acquisitions Analyst Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ZACHARY ZWERKO pled guilty today in Manhattan federal court to one count of conspiracy to commit securities fraud and three counts of securities fraud in connection with an insider trading scheme in which ZWERKO, who worked for a pharmaceutical company (the “Pharma Company”), passed material, nonpublic information to a co-conspirator (“CC-1”) who then made profitable securities trades based on the information and reaped over $700,000 in profits. The information concerned potential and actual corporate transactions, including acquisitions. ZWERKO pled guilty today before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Preet Bharara said: “Zachary Zwerko exchanged and traded in nonpublic information about a pharmaceutical company’s activities that generated over $700,000 in profits for a co-conspirator and $57,000 for him. With his guilty plea today, Zwerko’s attempts at hiding his illicit conduct by using a disposable phone for his communications have proven futile, and he will now be punished for his crimes.”
According to the Information filed in Manhattan federal court and statements made at public court proceedings:
From at least 2010 through August 2014, ZWERKO engaged in an insider trading scheme involving trading around information related to the acquisitions of certain pharmaceutical companies. ZWERKO, who was a Senior Finance Analyst in the Financial Evaluation and Analysis Group of the Pharma Company, passed material, nonpublic information related to potential acquisitions to CC-1. As part of his employment, ZWERKO performed work in connection with numerous potential and actual corporate transactions, including acquisitions. ZWERKO also had access to a computer directory maintained by the Pharma Company which contained material, nonpublic information related to potential acquisitions by the company.
On multiple occasions, ZWERKO passed to CC-1 material, nonpublic information related to future acquisitions by the Pharma Company, including the identities of companies which were in negotiations with the Pharma Company for potential acquisitions (the “Target Companies”). ZWERKO and CC-1 at times communicated with each other via disposable cellphone to disguise their communications. CC-1 then traded in the securities of the Target Companies. The Target Companies were subsequently acquired, in one instance by the Pharma Company, and the prices of the shares of the Target Companies increased after the acquisitions were announced publicly. CC-1 then liquidated CC-1’s positions in the shares of the Target Companies, thereby profiting from the movement in stock price. From this illegal trading, CC-1 reaped trading profits of at least approximately $737,000. CC-1 gave ZWERKO approximately $57,000 in cash, of CC-1’s illegal proceeds, as part of ZWERKO’s share of the scheme’s profits.
ZWERKO, 32, of Cambridge, Massachusetts, pled guilty to one count of conspiracy to commit securities fraud and three counts of securities fraud. The conspiracy count carries a maximum sentence of five years in prison. The three counts of securities fraud each carry a maximum of 20 years in prison. ZWERKO also faces a maximum fine of $5,000,000, or twice the gross gain or loss from the offense on the conspiracy count. He agreed as part of his plea agreement to forfeit the proceeds he obtained as a result of the offenses. The maximum potential sentences are prescribed by Congress, and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ZWERKO is scheduled to be sentenced by Judge Hellerstein on May 15, 2015, at 11:00 a.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
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 Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella and Edward Kim are in charge of the prosecution.
Massachusetts Woman Pleads Guilty to Bank FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Viviane Cazeau (36, Massachusetts) has pleaded guilty to bank fraud. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, Cazeau, as well as others, would call Bank of America and other financial institutions and fraudulently pose as an account holder. Cazeau would provide enough information to convince the bank employee that she was the true account holder. Upon gaining access to the account, Cazeau would then request a new debit card and personal identification number (PIN). She would request that the card and PIN be mailed to the address on file with the bank. The card and PIN would then be mailed to the address, stolen from the victim’s mailbox, and used for ATM withdrawals in Florida and Massachusetts. During the course of this investigation, law enforcement has identified approximately $822,698 in losses tied to this scheme.
This case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara C. Sweeney.
Martinsburg man charged with fabricating death to desert from U.S. Coast GuardRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging a West Virginia man with fabricating his own death in an effort to desert from the U.S. Coast Guard, United States Attorney William J. Ihlenfeld, II, announced.
Larry C. Shelby, 33, along with Karen Shelby, 33, and Jeffery John York, 32, of Martinsburg, are each charged with “Hoax Causing U.S. Coast Guard to Render Unnecessary Aid” and “Conspiracy to Violate Laws.” The indictment alleges that Larry Shelby, a non-commissioned officer in the U.S. Coast Guard, conspired with his wife, Karen Shelby, and with York to desert from the Coast Guard in 2013. Larry Shelby allegedly abandoned his vehicle, wrote suicide notes, concealed his identity and isolated himself in a remote West Virginia cabin in an effort to falsify his own death.
The indictment further alleges that York and Karen Shelby represented to authorities that Larry Shelby was missing and that they were unaware his location or whether he was alive. These misrepresentations caused the U.S. Coast Guard to expend in excess of $100,000.00 in a search for Larry Shelby. In February 2014, Larry Shelby allegedly returned from the remote cabin to reside in his Martinsburg residence in secret until June.
York and Karen Shelby, who also are charged with making a false statement, each face up to 16 years in federal prison. Larry Shelby faces up to 11 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The matter was investigated by the Coast Guard Investigative Service. The Coast Guard’s search for Larry Shelby was supported by the Maryland State Police, the National Park Service, the Berkeley County, West Virginia Sheriff’s Office, the Harpers Ferry, West Virginia Police Department, the Martinsburg, West Virginia Police Department, Chesapeake Search & Rescue K-9, and Mid-Atlantic D.O.G.S, Inc.
Assistant U.S. Attorneys Paul Camilletti and Andrew Williamson are prosecuting the case on behalf of the government.
Louisiana Resident Indicted for Insider Trading in Connection with the Acquisition of the Shaw GroupRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that another individual has been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Middle District of Louisiana has indicted DR. JESSE H. ROBERTS, III, age 43, of Ruston, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, ROBERTS faces significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from on or before July 2012, and continuing to at least November 2013, ROBERTS and his brother-in-law, Scott Zeringue, a former executive with The Shaw Group (“Shaw”), engaged in a scheme to profit from inside information about the upcoming merger between Shaw and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Zeringue was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The indictment alleges that, prior to the public announcement and through his job at Shaw, Zeringue obtained inside information about the upcoming merger between Shaw and CB&I and passed the inside information to ROBERTS. Thereafter, ROBERTS and Zeringue allegedly purchased Shaw securities before the public announcement and sold their Shaw securities after the public announcement had caused Shaw’s stock price to rise, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that ROBERTS made over $650,000 in proceeds from his illegal insider trading activities.
Prior to the Indictment announced today, Zeringue was charged in the Middle District of Louisiana with conspiracy to commit securities fraud. On June 27, 2014, Zeringue pled guilty as charged pursuant to a plea agreement with the United States.
Other federal prosecutions have resulted from insider trading related to the acquisition of the Shaw Group. In separate proceedings being handled by the U.S. Attorney’s Office for the Western District of North Carolina, a former Wells Fargo investment banker and seven of his conspirators have been convicted on insider trading charges related, in part, to the Shaw sale, with sentences up to 10 years in prison.
In announcing today’s Indictment, U.S. Attorney Walt Green praised the investigative work of the U.S. Secret Service, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation, and thanked the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the U.S. Attorney’s Offices for the Western District of North Carolina and the Western District of Louisiana for their assistance.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Chris Dippel and Senior Litigation Counsel Patricia Jones.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Lone Pine Man Indicted for Taking Archaeological Artifacts from Public Lands in Inyo CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Norman Starks, 76, a resident of Lone Pine, California, charging him with unauthorized removal of archaeological resources, depredation of government property, and possession of stolen government property, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendant damaged, altered, and removed Native American archaeological resources without authorization, from federal lands. These included Native American burial cairns and other cultural artifacts, such as beads and fragments of ceramic pots, which were more than 100 years old. The artifacts were located in the Lone Pine area of Inyo County on public lands administered by the Bureau of Land Management. In addition, the indictment charges the defendant with possessing stolen property that included prehistoric Native American incised stone tablets, which had been taken from government lands.
This case was the product of an investigation by the Bureau of Land Management and the National Park Service. Assistant United States Attorney Megan A. S. Richards is prosecuting the case.
If convicted of theft of stolen government property or depredation of government property, STARKS faces a maximum statutory penalty of ten years in prison and a $100,000 fine. For each count of removal of archaeological resources, STARKS faces a maximum statutory penalty of two years in prison and a $100,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Archeological resources are protected under the Archaeological Resources Protection Act (ARPA). Federal land managers, such as Bureau of Land Management and National Park Service, are responsible for the protection of natural and cultural resources located on public lands.
Local Doctor Pleads Guilty to Child Porn, Prescription Drug ChargesRead the Press Release
ROANOKE, VIRGINIA – A Roanoke County doctor who was indicted in August on charges of prescribing oxycodone outside the usual course of professional practice and receipt of child pornography, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke.
Steven Joseph Collins, 51, of Roanoke County, Virginia, pled guilty today to one count of receiving child pornography and two counts of dispensing oxycodone by illegal prescribing. At sentencing, Collins faces a period of incarceration between a mandatory five years and twenty years.
According to evidence presented at today’s hearing by Assistant United States Attorney Jennie L.M. Waering, between July 2010 and July 2013, Collins received digital video and image files of a minor who had not obtained 12 years of age, engaged in sexual activity. This sexual activity included prepubescent children engaging in oral sex with adult males.
In addition, Collins admitted that on separate dates in January 2014 and April 2014, in his role as a medical doctor, authorized controlled substance prescription orders for oxycodone to be issued outside the usual course of professional practice. In one instance, he wrote a prescription for oxycodone in the name of the husband of a patient to avoid having too many prescriptions in the patient’s name. The husband was not, and had never been, a patient.
The investigation of the case was conducted by the Tactical Diversion Squad (TDS) of the Drug Enforcement Administration (DEA) and the Department of Homeland Security. The local TDS is comprised of law enforcement officers from the Virginia State Police (VSP), Roanoke County Police Department, Montgomery County Sheriff’s Office, Bedford County Sheriff’s Office, Pittsylvania County Sheriff’s Office, Washington County Sheriff’s Office, Health and Human Services Office of Inspector General and DEA. Assistant United States Attorney Jennie Waering is prosecuting the case for the United States.
Las Vegas Man Sentenced to Five Years in Prison for Role in Multi-Million Dollar Mortgage Relief ScamRead the Press Release
SACRAMENTO, Calif. — Ray Jan Kornfeld, 59, resident of Las Vegas, NV, was sentenced today by United States District Judge Troy L. Nunley to 5 years in prison for his role in a large-scale mortgage fraud scheme, United States Attorney Benjamin B. Wagner and California Attorney General Kamala D. Harris jointly announced. Kornfeld was also ordered to pay over $3 million in restitution to victims of the scheme.
According to court documents, between January 7, 2010, and August 20, 2013, Co-defendant Alan David Tikal was the principal behind a business known as KATN, which targeted distressed homeowners throughout California and the nation, many of whom did not speak English. Members of the scheme promised to reduce victims’ outstanding mortgage debt by 75%, falsely claiming Tikal was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Homeowners were told that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to KATN in an amount equaling 25% of their original obligation. In reliance upon misrepresentations made by Tikal and others, homeowners stopped making payments on their existing mortgage loans and many lost their homes to foreclosure as a result.
In fact, the defendants never satisfied the home owners’ mortgage debt and merely pocketed the money received through the scheme, which consisted of more than $5,800,000 in fees and monthly payments. Over 1,000 homeowners were victimized.
Judge Nunley found that Kornfeld joined the conspiracy in September of 2010. Kornfeld corresponded frequently with victims, reminding them to make their payments, and assuring them the program would be successful even after Alan Tikal was indicted by State and Federal authorities for his role in the scheme. Moreover, after promising federal authorities on November 27, 2012 that he would contact and advise the victims to make alternative plans to address their mortgage debt, Kornfeld instead continued to collect payments and file bankruptcy documents to further the scheme.
“Kornfeld falsely promised these victims, many of whom didn’t speak English as their first language, that he could save their homes from foreclosure and reduce their mortgage debt by 75 percent if the homeowners agreed to pay him fees and regular ‘loan’ payments instead of making their monthly mortgage payments,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Despite having the opportunity to stop his crime, Kornfeld kept the elaborate fraud going, frequently corresponding with victims, reminding them to pay up, while assuring them the operation would be successful. Many victims subsequently lost their homes to foreclosure. The scam also exploited bankruptcy law as a way to illegally halt foreclosure proceedings by mortgage lenders, including TARP recipients. SIGTARP and our law enforcement partners will ensure that perpetrators of fraud related to TARP are brought to justice for their crimes.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and Deputy Attorney General Maggy Krell are prosecuting the case.
Co-defendant Alan Tikal was convicted following a bench trial and is scheduled to be sentenced by Judge Nunley on March 5, 2015. Co-defendant Tamara Tikal previously entered a guilty plea and is awaiting sentencing.Jury Finds Former Soldier Guilty of Attempted Murder of Four Soldiers at the Millington National Guard ArmoryRead the Press Release
Memphis, Tenn. – A Cordova man was found guilty in federal district court of assault with intent to commit murder, assault with a dangerous weapon with intent to do bodily injury, and discharging a firearm during a federal crime of violence, announced U.S. Attorney Edward L. Stanton III; Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation, A. Todd McCall; and Naval Criminal Investigative Service Special Agent Michael C. Cote.
Amos Patton, 43, of Cordova, TN, was found guilty after a six-day trial by a federal jury in the Western District of Tennessee of 4 counts of assault with intent to commit murder in the special territorial jurisdiction of the United States, 4 counts of assault with a dangerous weapon with intent to do bodily injury in the special territorial jurisdiction of the United States, and one count of discharging a firearm during a federal crime of violence.
“The jury’s verdict holds Amos Patton accountable for his acts of violence committed upon his fellow soldiers,” said U.S. Attorney Stanton. “Patton’s actions were destructive enough, but they had the real potential to result in an even greater tragedy.”
According to the government’s evidence, on October 24, 2013, Patton, a full-time member of the Tennessee Army National Guard, had been directed by his commanders to come to the National Guard Armory, located at 5650 Attu, Millington, TN. During this meeting, Patton was notified that he was being relieved of duty, recommended for reduction in rank, and recommended for separation from the active guard reserve because of misconduct.
Following the meeting, Patton was directed to return government equipment believed to be in his government vehicle. When he returned from the car, Patton had in his possession a “fanny pack.” The fanny pack contained a loaded 9mm semiautomatic handgun and fifty extra rounds of ammunition. When Patton attempted to pull the handgun from the pack, one of the Tennessee Army National Guardsmen yelled a warning.
At that point, a Command Sergeant Major and a Major attempted to subdue Patton. Patton was able to fire his weapon six times, and rounds wounded three Tennessee Army National Guard personnel in the room. Patton ran from the building, followed by the Command Sergeant Major, who caught Patton, and subdued him with assistance of other soldiers. They held him until the Millington Police Department arrived and took Patton into custody.
U.S. District Judge John T. Fowlkes, who presided over the trial, set sentencing for May 28, 2015.
In announcing the verdict, U.S. Attorney Stanton, Special Agent in Charge McCall, and Special Agent Cote commended the work of the FBI and the NCIS. Finally, they commended Assistant U.S. Attorneys Fred Godwin and Mark Erskine and FBI Special Agent Matthew Ross, who investigated and prosecuted the case.
Spanish Version
Jurado Encuentra Ex Soldado Culpable De Intento De Asesinato De Cuatro Soldados En La Armeria De La Guardia Nacional De MillingtonRead the Press Release
Memphis, Tenn. - Un hombre de Córdoba fue declarado culpable en un tribunal federal de distrito de asalto con intento de cometer asesinato, asalto con un arma peligrosa con la intención de hacer daño corporal, y disparar un arma de fuego que està considerado como un acto de violencia la cual es un delito federal, anunció el Fiscal Federal Edward L. Stanton III; Agente Especial a Cargo de la División de la Oficina Federal de Investigaciones, A. Todd McCall Memphis; y el Agente Especial Naval del Servicio de Investigaciones Criminales Michael C. Cote.
Amos Patton, de 43 años, de Córdoba, TN, fue declarado culpable después de un juicio de seis días por un jurado federal en el Distrito Oeste de Tennessee de 4 cargos de asalto con intención de cometer homicidio en la jurisdicción territorial especial de los Estados Unidos, 4 cargos de asalto con un arma peligrosa con la intención de hacer daño corporal en la jurisdicción territorial especial de los Estados Unidos, y un cargo de disparar un arma de fuego que es un delito federal por violencia.
"El veredicto del jurado sostiene que Amos Patton es responsable de sus actos de violencia cometidos contra sus compañeros soldados", dijo el Fiscal Federal Stanton. "Las acciones de Patton fueron lo suficientemente destructiva, pero tenían el verdadero potencial de resultar en una tragedia aún mayor."
De acuerdo con la evidencia del gobierno, el 24 de octubre de 2013, Patton, un miembro de tiempo completo de la Guardia Nacional del Ejército de Tennessee, había sido convocado por sus comandantes para venir a la Armería de la Guardia Nacional, ubicado en 5650 Attu, Millington, TN. Durante esa reunión, Patton fue notificado de que estaba siendo relevado de su cargo, se recomendó para una degradación de rango, y se recomendó para la separación de la reserva activa de la guardia nacional por mala conducta.
Tras la reunión, Patton fue dirigido a devolver los equipos del gobierno que se creía que estaban en su vehículo del gobierno. Cuando regresó del coche, Patton tenía en su poder un "bolso de cintura". El bolso de su cintura contenía una pistola semiautomàtica de 9 mm cargada y cincuenta municiones adicionales. Cuando Patton intentó sacar la pistola del bolso de su cintura, uno de los miembros de la Guardia Nacional del Ejército de Tennessee gritó en advertencia.
En ese momento, un Sargento Mayor de Comando y un Mayor intentaron someter a Patton. Patton fue capaz de disparar su arma en seis ocasiones, y los disparos hirieron a tres miembros de la Guardia Nacional del Ejército de Tennessee en la habitación. Patton salió corriendo del edificio, seguido por el Sargento Mayor de Comando, quien atrapó a Patton, y lo sometió con asistencia de otros soldados. Lo retuvieron hasta que el Departamento de Policía de Millington llegó y tomó a Patton en custodia.
El juez de distrito John T. Fowlkes, quien presidió el juicio, establece la sentencia para el 28 de mayo 2015.
Al anunciar el veredicto, el Fiscal Federal Stanton, Agente Especial a Cargo McCall y Agente Especial Cote elogiaron el trabajo del FBI y el NCIS. Por último, elogiaron los Fiscales Federales Auxiliares Fred Godwin y Mark Erskine y al Agente Especial del FBI Matthew Ross, quien investigó y procesó el caso.
Version en Inglés
Indictment Returned Against Westbank Gang MembersRead the Press Release
U.S. Attorney Kenneth A. Polite announced the return of an Indictment charging members of a Westbank gang associated with the Harvey Hustlers with violating federal drug and firearm laws. On February 12, 2015, a federal grand jury returned the Indictment against GLEN HOUSTON, age 22, SAVANNAH HOUSTON, age 24, JARRIN HARRIS, age 21, DENVER LONDON, age 22, JOESIA WILSON, age 26, and BRITTANY CONNER, age 22, all of the Harvey area of Jefferson Parish. The Indictment was recently unsealed.
The Indictment charges all defendants with conspiracy to distribute more than 280 grams of crack cocaine, as well as conspiracy to possess firearms in furtherance of drug trafficking. All defendants are presently in custody pending trial.
All defendants are facing a sentence of ten years to life, a $10,000,000 fine, and at least five years of supervised release if convicted of conspiracy to distribute crack cocaine. If convicted of conspiracy to possess a firearm in furtherance of drug trafficking, the defendants face a sentence of twenty years to life, a $250,000 fine, and a maximum of five years of supervised release.
The Indictment is a product of an ongoing investigation into drug trafficking by this and other Westbank gangs. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigations (“FBI”), and members of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Indictment Charges Group of Six in Financial Fraud SchemeRead the Press Release
PHILADELPHIA - Aaron Henderson, 21, Muhammad Sadaat A. White, 22, Marcus Allen Ray, 25, Raymond Rysheem E. Starr, 21, Marcus Lee Jackson, 23, and Timothy Nathaniel, 25, all of Philadelphia, PA, were charged today by indictment with conspiracy, bank fraud, aggravated identity theft and aiding and abetting, announced United States Attorney Zane David Memeger.
According to the indictment, between May 30, 2013 and November 20, 2014, the defendants obtained the names, accounts numbers and personal identification numbers of bank customers. They and their co-conspirators allegedly used that information to deposit bad checks at various banks, quickly withdrawing funds from those accounts. It is further alleged that the defendants recruited and paid some account holders to open accounts at financial institutions and then turn over the account information so it could be used for the deposit of bad checks and the fraudulent withdrawal of funds.
If convicted of all charges, the defendants face the following maximum possible statutory sentences: Henderson, 39 years in prison; White, 101 years in prison; Ray, 45 years in prison; Starr, 133 years in prison; Jackson, 69 years in prison; Nathaniel, 69 years in prison; plus fines and supervised release.
The case was investigated by the U.S. Postal Inspection Service and the U.S. Secret Service with assistance from the Philadelphia Police Department, the Springfield Township (Montgomery County) Police Department, the Abington Police Department and the Bensalem Police Department and is being prosecuted by Assistant United States Attorneys K.T. Newton and Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Holyoke Man Indicted on Federal Firearms ChargesRead the Press Release
BOSTON – Joshua Marrero, 28, of Holyoke, Mass., was indicted in U.S. District Court in Springfield on being a convicted felon in possession of a firearm and ammunition and possessing a firearm with an obliterated serial number.
The indictment alleges that on April 19, 2014, Marrero possessed a Lorcin Model L 380 .380 caliber firearm with an obliterated serial number and seven rounds of .380 caliber ammunition.
For those who qualify as armed career criminals, under federal law, the charge of being a felon in possession of a firearm provides a mandatory minimum sentence of 15 years, and a maximum of a lifetime in prison, five years of supervised release, and a fine of $250,000. The charge of possessing a firearm with an obliterated serial number provides 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 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; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief James M. Neiswanger, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ASA BOYD, 35, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on January 30, 2014, the Hartford Police Department’s Intelligence Division received information that an individual driving a red Grand Am was in possession of .45 caliber pistol and selling drugs in the vicinity of Capitol Avenue. Hartford Police officers responded to the area and located the vehicle parked on James Street. As officers approached the car, BOYD, who had been the sole occupant of the vehicle, ran from the car and up the stairs to a residence. BOYD then reached into his waistband and tossed a black pistol. Officers pursued BOYD as he ran up to the second floor. After a brief struggle with the officers, BOYD was taken into custody.
Officers recovered the firearm, which was a .45 caliber Glock pistol with an intact magazine containing 13 live rounds, including one live round in the chamber. BOYD also possessed approximately 2.9 grams of crack cocaine and $827 in cash.
BOYD’s criminal history includes multiple felony convictions. In 1996, BOYD was convicted of illegally firing a gun, for which he received 60 days in jail followed by probation. He later violated his probation and was sentenced to an additional one year in jail. In 2003, BOYD was arrested in possession of cocaine and three guns. He was ultimately convicted of possession with intent to sell narcotics and criminal possession of a weapon and, in 2005, was sentenced to 12 years of imprisonment, suspended after four years, and five years of probation.
BOYD has been detained since his arrest. On December 1, 2014, he pleaded guilty to one count of possession of a firearm by a convicted felon.
The matter was investigated by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hamza Naj Ahmed Indicted for Conspiring to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
Ahmed Stopped in New York While Attempting to Fly Overseas to Join Terror Organization
Defendant Also Charged with Lying to Federal Agents during Terrorism Investigation
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Andrew M. Luger for the District of Minnesota announced today the indictment of Hamza Naj Ahmed, 19, for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL). Ahmed is also charged with attempting to provide material support to ISIL and for making a false statement in a terrorism investigation. Ahmed was previously charged by criminal complaint for lying to FBI agents. The defendant was detained on Feb. 5, 2015, after making an initial appearance before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minnesota.
“Hamza Ahmed is at least the fourth person from the Twin Cities charged as a result of an ongoing investigation into individuals who have traveled or are attempting to travel to Syria in order to join a foreign terrorist organization,” said U.S. Attorney Luger. “Since 2007, dozens of people from the Twin Cities have traveled or attempted to travel overseas in support of terror. While my office will continue to prosecute those who attempt to provide material support to ISIL or any other terrorist organization, we remain committed to working with dedicated community members to bring this cycle to an end.”
According to the indictment and documents filed in court, Ahmed and three companions, M.F., H.M.M. and Z.A., travelled by bus from Minneapolis to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on Nov. 8, 2014. Ahmed and M.F. were booked on the same flight from JFK to Istanbul, Turkey. M.F., H.M.M. and Z.A. were each prevented from boarding their flights. Ahmed successfully boarded, but was escorted from the aircraft by U.S. Customs and Border Protection agents before it left the boarding gate.
According to the indictment and documents filed in court, Ahmed was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When Ahmed arrived back in Minnesota on Nov. 9, 2014, FBI agents conducted a second voluntary interview, during which Ahmed again lied to agents.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Attorney Andrew Sigler of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Andrew Winter and John Docherty of the District of Minnesota.
Defendant Information:
HAMZA NAJ AHMED, 19
Minneapolis, Minnesota
Charges:
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Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
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Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
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Making a False Statement in a Terrorism Investigation, 1 count
Hamza Ahmed Indictment
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HAMZA NAJ AHMED INDICTED FOR CONSPIRING TO PROVIDE MATERIAL SUPPORT TO THE ISLAMIC STATE OF IRAQ AND THE LEVANT Ahmed Stopped in New York While Attempting to Fly Overseas to Join Terror Organization Defendant Also Charged with Lying to Federal AgentsRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General for National Security John P. Carlin today announced the indictment of HAMZA NAJ AHMED, 19, for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL). AHMED is also charged with attempting to provide material support to ISIL, and for making a false statement in a terrorism investigation.1 AHMED was previously charged by criminal complaint for lying to FBI agents. The defendant was detained on February 5, 2015, after making an initial appearance before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Hamza Ahmed is at least the fourth person from the Twin Cities charged as a result of an ongoing investigation into individuals who have traveled or are attempting to travel to Syria in order to join a foreign terrorist organization,” said U.S. Attorney Luger. “Since 2007, dozens of people from the Twin Cities have traveled or attempted to travel overseas in support of terror. While my office will continue to prosecute those who attempt to provide material support to ISIL or any other terrorist organization, we remain committed to working with dedicated community members to bring this cycle to an end.”
According to the indictment and documents filed in court, AHMED and three companions, M.F., H.M.M, and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 8, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. M.F., H.M.M., and Z.A. were each prevented from boarding their flights. AHMED successfully boarded, but was escorted from the aircraft by U.S. Customs and Border Protection agents before it left the boarding gate.
According to the indictment and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED again lied to agents.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant U.S. Attorneys Andrew Winter and John Docherty, and Attorney Andrew Sigler of the Justice Department’s National Security Division.
Defendant Information:
HAMZA NAJ AHMED, 19
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Making a False Statement in a Terrorism Investigation, 1 countThe charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Grizzly Flat Man Sentenced to over 12 Years for Receipt and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. —Nicholas Robert Bowen, 63, resident of Grizzly Flat, California, was sentenced today by United States District Judge Troy L. Nunley to 12 and one-half years in prison for possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Bowen and a female companion were arrested by Davis Police officers after the female was caught exposing herself to 10-12 year old boys while Bowen filmed the encounters using a spy camera built into his glasses. A subsequent search of Bowen’s phone and his computer, including in a folder called “boys,” discovered over 600 images and videos of minors engaged in sexually explicit conduct. In sentencing Bowen, Judge Nunley commented that the offense conduct was “egregious,” and that Bowen was an “active individual” in the offense. Judge Nunley further noted that Bowen’s actions have had a “huge impact” and potentially “ruined” the childhoods of the victims in this case.
Charges remain pending against Bowen in Yolo County Superior Court.
This case is the product of an investigation by the Davis Police Department, the Yolo County District Attorney’s Office, the Sacramento Internet Crimes Against Children (ICAC) Task Force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Todd A. Pickles and Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Granite City Man Sentenced for Methamphetamine OffensesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ronald J. Wiggins, 35, of Granite City, was sentenced on Wednesday, February 18, 2015 to 151 months in federal prison for offenses relating to the distribution of methamphetamine.
Wiggins pled guilty in U.S. District Court in East St. Louis on September 3, 2014 to three federal charges: Maintaining Drug-Related Premises; Distribution of Methamphetamine; and Possession With Intent to Distribute Methamphetamine.
Upon release from prison, Wiggins will also be required to serve a term of three years on supervised release.
At his change of plea hearing in September, Wiggins admitted that he had used his residence in Granite City, Illinois to distribute methamphetamine throughout 2013. Wiggins also admitted that he had sold methamphetamine to a police informant on June 13, and again on June 19, 2013, in Granite City.
The investigation which resulted in Wiggins’ arrest and conviction was conducted by the Granite City Police Department and by the U.S. Drug Enforcement Administration (DEA).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Granite City Man Sentenced for Methamphetamine OffensesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ronald J. Wiggins, 35, of Granite City, was sentenced on Wednesday, February 18, 2015 to 151 months in federal prison for offenses relating to the distribution of methamphetamine.
Wiggins pled guilty in U.S. District Court in East St. Louis on September 3, 2014 to three federal charges: Maintaining Drug-Related Premises; Distribution of Methamphetamine; and Possession With Intent to Distribute Methamphetamine.
Upon release from prison, Wiggins will also be required to serve a term of three years on supervised release.
At his change of plea hearing in September, Wiggins admitted that he had used his residence in Granite City, Illinois to distribute methamphetamine throughout 2013. Wiggins also admitted that he had sold methamphetamine to a police informant on June 13, and again on June 19, 2013, in Granite City.
The investigation which resulted in Wiggins’ arrest and conviction was conducted by the Granite City Police Department and by the U.S. Drug Enforcement Administration (DEA).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Gasport Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Christopher Wittcop, 43, of Gasport, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that Wittcop possessed child pornography on a laptop computer in Lockport, NY on July 18, 2011. A forensic analysis determined the computer contained over 600 images and video files of child pornography. Wittcopp used peer to peer software to share the images with others through the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of officers of the Federal Bureau of Investigation Cyber Task Force and the Niagara County Sheriff’s Department, under the direction of Sheriff James Votour.
Sentencing is scheduled for May 20, 2015, at 12:30 p.m. before Judge Arcara.
Fresno Man Indicted for Possessing Ecstasy for SaleRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Bryan Austin Frembling, 20, resident of Fresno, charging him with possessing MDMA (“Ecstasy”), with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Frembling ordered the ecstasy from the internet. It was delivered from Canada to a post office box in another individual’s name. Frembling was arrested on January 5, 2015 as he picked up the package of drugs from the post office.
This case was the product of an investigation by the Homeland Security Investigations, U.S. Postal Service, and Fresno Police Department. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
Frembling has been released on bail pending the disposition of the charges and will appear in court to be arraigned on the indictment on February 24, 2015.
If convicted, Frembling faces a maximum statutory penalty of twenty years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Local Loan Officer Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – MICHAEL WALLIS was sentenced to 14 months in prison on charges related to a fraud scheme involving applications for home loans. H was also ordered to pay restitution of $904,923.
According to the facts stated in court during the plea, since at least 2007, Michael Wallis worked in the mortgage lending industry in the St. Louis area. Initially, Wallis was employed as a loan officer, but later operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Around 2007, Wallis began doing real estate business deals with two associates who also worked in the St. Louis real estate market, and each had experience dealing with mortgages insured by the United States Department of Housing and Urban Development, Federal Housing Administration (FHA loans). In addition, they had experience dealing with conventional mortgage loans from banks insured by the Federal Deposit Insurance Corporation (FDIC) and mortgage loans held by the government-sponsored entity known as the Federal National Mortgage Association (Fannie Mae).
From as early as 2007 until as late as January 2010, Wallis and his co-conspirators made material false representations on HUD-1 forms, resulting in the disbursement of excess loan funds which they shared among themselves. As part of the conspiracy, Wallis and his co-conspirators found and recruited individuals to apply for loans to purchase homes and supplied the funds for the down payments on the home purchases, but falsely represented to HUD and to the lending banks that the borrowers were making the down payments. They created fake "gift letters," which falsely stated that the borrowers' relatives were providing the down payment funds as gifts to the borrowers.
In addition, Wallis and his co-conspirators falsely stated on HUD-1 forms that remodeling expenses had been incurred and had to be paid from loan proceeds by creating fake and inflated invoices for expenses for remodeling work that was never done. As a result, at closing, the title company disbursed loan funds to Wallis' company, Missouri Builders, based on the false statements on the HUD-1 forms and the false and inflated invoices. Wallis then paid kickbacks to his associates from the illegally obtained loan funds.
Most of the loans went into default, causing substantial losses to the United States and financial institutions.
Wallis, Festus, Missouri, previously pled guilty to one felony count each of conspiracy to commit bank fraud and make false statements and making false statements. He appeared today for sentencing before United States District Judge John Ross.
Joseph Brogan, a co-conspirator of Wallis, pled guilty last month to one count of conspiracy and two counts of bank fraud. He will appear for sentencing in May of this year.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General, the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.
Former DeKalb County Zoning Board of Appeals Member Pleads Guilty to BriberyRead the Press Release
ATLANTA – Jeremy “Jerry” Clark, a former member of the DeKalb County Zoning Board of Appeals, has pleaded guilty to a federal bribery charge. Clark accepted money in exchange for his vote allowing a business to operate as a late-night dance club.
“It took only $3,500 to subvert the purpose of this DeKalb zoning ordinance, which was to regulate the operation of late-night nightclubs,” said Acting United States Attorney John Horn. “This case demonstrates how a corrupt public official can sell out the legitimate interests of the communities and citizens he serves, solely for his own profit. DeKalb County citizens deserved better.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The guilty plea of Mr. Clark should remind those in public office of the serious consequences of succumbing to the temptations that can come their way. The FBI’s Public Corruption Program remains prepared to identify, investigate, and present for prosecution those individuals who would abdicate their integrity for personal greed.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: In November 2008, the DeKalb County (Georgia) Board of Commissioners passed a zoning ordinance that regulated the placement and operation of late-night establishments and nightclubs. As a general matter, the ordinance mandated that new businesses must obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be grandfathered in under the 2008 zoning ordinance change.
In DeKalb County, the Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error. From January 2009 to May 2013, Clark served as a member of the Zoning Board of Appeals.
Based on the zoning change, in September 2012, the DeKalb County Department of Planning and Sustainability issued a warning to the owner of a late-night establishment in Tucker, Ga., (“Business Owner”), advising him that the establishment could not operate as a nightclub without a Special Land Use Permit. The Business Owner responded that the establishment had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule. Notably, almost a year earlier in November 2011, the Department of Planning and Sustainability had advised the late-night establishment in writing that it was grandfathered in only as a late-night business, could not operate as a nightclub, and could not have a dance floor.
Ultimately, the Business Owner appealed the decision to the DeKalb County Zoning Board of Appeals. Prior to the hearing on the appeal, Clark met with the Business Owner. During those meetings, the Business Owner made it clear to Clark, that if the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub, Clark would be rewarded. In November 2012, the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub. Clark voted in favor of the Business Owner. Thereafter, the Business Owner paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.
On February 10, 2015, Clark, 42, of Lithonia, Ga., was charged in a criminal information with one count of bribery. The sentencing hearing is scheduled for April 30, 2015, at 10:00 a.m., before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Florida Man Pleads Guilty in Prescription Drug Diversion SchemeRead the Press Release
Yusef Yassin Gomez (Yassin), 49, of Fort Myers, Florida, pleaded guilty today in U.S. District Court in the Southern District of Ohio to one count of conspiracy to commit an offense against the United States in the distribution of prescription drugs without a license.
Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Antoinette Henry of the U.S. Food and Drug Administration’s (FDA) Metro Washington Field Office and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service (USPIS) announced the plea entered into today before U.S. District Judge Timothy S. Black in Cincinnati.
According to court documents, Yassin and others conspired to distribute diverted prescription drugs throughout the United States, including in the Southern District of Ohio, while concealing the true illicit sources of the drugs. The conspirators falsely represented on required pedigree documents that the source of the drugs was one of two Puerto Rico companies, including Yassin’s former company, B&Y Wholesale. The false pedigrees covered up the illegitimate sources of the drugs – various illicit, unlicensed suppliers – and falsely stated that B&Y was an authorized distributor of the prescription drugs.
“American consumers expect that prescription drugs will be safe and effective and should not face the risk that counterfeit, adulterated, misbranded, sub-potent or expired drugs will be sold to them,” said Acting Assistant Attorney General Branda. “The Department of Justice will prosecute those who engage in prescription drug diversion.”
For more than four years, Yassin allowed the drugs to pass through B&Y Wholesale in Puerto Rico before shipment out to a Minnesota company owned by a co-conspirator. The Minnesota company acquired the drugs from various illegitimate suppliers, and sold the diverted drugs to purchasers nationwide, including to pharmacies in Cincinnati. In addition to letting the diverted drugs ship through his company in Puerto Rico, Yassin made wire payments to the illicit suppliers in exchange for a commission. The illegally-sourced drugs were purchased by the Minnesota company at a significantly deeper discount than is offered on legitimately-sourced drugs, thereby generating higher revenues and profits.
“Once a prescription drug is diverted outside of the regulated distribution channels, it becomes difficult, if not impossible, for regulators, law enforcement and end-users to know whether the prescription drug package actually contains the correct drug or the correct dose,” said U.S. Attorney Stewart. “Patients purchased what they believed were FDA-approved prescription drugs that had remained in regulated distribution channels intended to protect against misbranded, adulterated, sub-potent, improperly handled, counterfeit and stolen products. Instead, these customers received drugs of unknown quality and origin.”
Yassin faces a statutory maximum sentence of five years in prison and a $250,000 fine. As part of his plea agreement, he will pay a money judgment of $750,000 representing proceeds from the scheme.
This matter is being investigated by the FDA and USPIS. Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are representing the United States in this case.
Female Howard County Bloods Gang Member Sentenced to Prison for Racketeering Conspiracy and Gun ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Heather Lynn Carter, a/k/a “Hunnilyn,” age 30, of Columbia, Maryland, to 63 months in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, and possession of a firearm in furtherance of a crime of violence, in connection with her membership in the Bloods gang operating primarily out of Howard County, Maryland.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
According to her plea agreement, since 2007, Carter was romantically involved with Anthony Preston, a known Bloods leader of the “Swann” set operating in Howard County, Maryland. As a result of this relationship, and at Preston’s behest, Carter became a female member of the Bloods, otherwise known as a “Ruby,” starting in the fall of 2007. Carter has a “Ruby” tattoo, as well as a five-pointed star tattoo, both of which symbolize her association with the Bloods.
Carter and her co-defendants were identified as members of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.
The investigation began with an assault and robbery of an ATF confidential informant (CI) in Columbia, Maryland, on November 8, 2011. The ATF was planning a controlled purchase of firearms from co-defendant and fellow gang member Michael Johnson, a/k/a “Ace,” a/k/a “Bloody Mike” after Johnson provided via text two photos of firearms, an assault rifle and a handgun, available for purchase by the CI. Instead of selling the guns, Johnson directed other gang members, including Bryan Mays, to rob the CI.
Among her gang activities, Carter dealt prescription pills and crack cocaine. She referred oxycodone customers to Preston, as well as sold oxycodone herself. She also sold crack cocaine at Preston’s behest, and later provided crack cocaine to Johnson, who was dealing crack with Preston. Carter was present when Bloods members carried firearms and committed acts of violence. For example, on February 22, 2012, Carter was present when Johnson and co-defendant Giovanni Wright assaulted and robbed at gunpoint a rival gang member outside the home of Johnson’s baby’s mother. Carter continued her association with, and participation in, the Bloods after witnessing this assault. She also subsequently maintained a firearm belonging to a gang member in her home.
In addition, Carter obstructed justice by lying to federal law enforcement to assist Johnson, a fellow gang member, in evading arrest on a federal warrant. On February 28, 2012, agents went to Carter’s residence in an attempt to arrest Johnson on charges related to the 2011 robbery of the ATF CI. Carter told the agents that she last saw Johnson “a few days ago,” and that she had no means of contacting him. Toll records reflect that Carter called Johnson on his cell phone shortly after agents left. That same day, law enforcement went to a motel in Hanover, Maryland to look for Johnson. Law enforcement confirmed with the clerk that Heather Carter had rented a room earlier that day and that Carter was accompanied by Johnson. Johnson never returned to the hotel. Based on the phone records between Carter and Johnson, Carter told Johnson that law enforcement was on the way to the hotel and Johnson was able to evade arrest. Despite daily efforts, law enforcement could not locate and arrest Johnson until over a week later, on March 9, 2012.
As a “Ruby,” Carter was responsible for relaying communications, both online and telephone, from incarcerated Bloods to Bloods on the street. Carter, for example, was responsible for allowing Johnson, once arrested on March 9, 2012, to communicate to other gang members and associates via Facebook, mail, and telephone while he was in jail. These communications related to organizing gang hierarchy, dividing up territory, collecting drug proceeds, and directing gang activity. Carter also encouraged and collected money from other gang members to support Johnson and other incarcerated Bloods. Carter also participated in, and facilitated, conversations between Johnson and other gang members regarding smuggling contraband into the facility.
On May 8, 2013, a search warrant was executed on Carter’s residence and evidence relating to her drug trafficking and gang association was recovered, including a .22 caliber revolver, loaded with six rounds of .22 caliber ammunition, which belonged to Giovanni Wright.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Judge Russell has sentenced co-defendants Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland, and Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, to 205 months in prison and 18 years in prison, respectively. Bloods gang member Bryan Alexander Mays, a/k/a “Bam Bam,” “Boomar,” and “G,” age 24, of Columbia, Maryland was sentenced to102 months in prison for conspiring to commit robbery and using a gun during a crime of violence, for his participation in the robbery of the ATF CI. Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, pleaded guilty to conspiring to participate in a racketeering conspiracy, and using and carrying a firearm during and in relation to a crime of violence, and is awaiting sentencing. Preston and the government have agreed that if the Court accepts the plea agreement, Preston will be sentenced to 20 years in prison.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Felon in Possession of Ammunition Sentenced to Five YearsRead the Press Release
Ft. Myers, Florida – United States District Court Judge John A. Steele has sentenced Edward Bergen (29, Cape Coral) to 60 months’ imprisonment, followed by three years of supervised release, for one count of possession of ammunition by a convicted felon and one count of possession with intent to distribute marijuana.
Bergen was indicted on January 22, 2014.
According to court documents, a search warrant was executed at Bergen’s residence in December of 2013. Located inside a locked safe in his bedroom were 81 rounds of ammunition and marijuana. At the time of the offense, Bergen was a previously convicted felon, and therefore was prohibited from possessing a firearm or ammunition under federal law.
Bergen operated a Facebook page entitled “Snitch Stoppers 239” in which he identified individuals cooperating with law enforcement and offered rewards to others who identify “snitches” to him for publication on his webpage. Bergen has remained in custody since his arrest on December 13, 2013.
This case was investigated by the Cape Coral Police Department and the Drug Enforcement Administration – Fort Myers Resident Office. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
Federal Indictment: Atchinson Man Kidnapped ChildRead the Press Release
KANSAS CITY, KAN. – An Atchison man has been indicted on federal charges of kidnapping a child, U.S. Attorney Barry Grissom said today.
Marcas McGowan, 30, Atchison, Kan., was charged Wednesday in U.S. District Court in Kansas City, Kan., with one count of kidnapping a child, one count of discharging a firearm during the kidnapping, one count of unlawfully possessing a firearm following a felony conviction, and one count of unlawful possession of a firearm following a misdemeanor domestic violence conviction.
Assistant U.S. Attorney Scott Rask and Leavenworth County Attorney Todd Thompson will be prosecuting the case. Mr. Thompson has been designated as a Special Assistant U.S. Attorney.
“This is a very serious case and my office will be working closely with the Leavenworth County Attorney to see that it gets the attention it deserves,” U.S. Attorney Barry Grissom said.
“My office has always had a great working relationship with U.S. Attorney Barry Grissom and his staff, so I appreciate the opportunity to work with them to pursue this matter federally,” said Leavenworth County Attorney Todd Thompson. “My office always strives for what is in the best interest of the Leavenworth community, and will continue to do so through our collaboration with the U.S. Attorney’s office.”
The federal indictment alleges that on July 18, 2014, McGowan kidnapped a minor victim. He traveled from Kansas to Missouri and back to Kansas with the child.
Upon conviction, the crimes carry the following penalties:
Kidnapping: Not less than 20 years and not more than life and a fine up to $250,000.
Discharging a firearm in a crime of violence: Not less than 10 years and not more than life, consecutive to any other sentence, and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm following a misdemeanor conviction for domestic violence: A maximum penalty of 10 years and a fine up to $250,000.
The Atchison Police Department, the Platte County (Mo.) Sheriff’s Office, the Weston (Mo.) Police Department, the Leavenworth Police Department, the Kansas Bureau of Investigation and the FBI investigated.
Farmington Man Sentenced to Five Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Brandon Smith, 29, of Farmington, N.M., was sentenced this morning in federal court in Albuquerque, N.M., for his methamphetamine trafficking conviction. Smith was sentenced to five years in federal prison followed by three years of supervised release. He also was ordered to forfeit $3,520.00 in cash found in his possession when he was arrested in Feb. 2014.
Smith was one of 29 individuals charged in Feb. 2014, with drug trafficking charges as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Thirteen of the defendants, including ringleader Isaac Anaya, 31, of Farmington, N.M., were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
To date, seven of the 13 federal defendants, including Isaac Anaya, have entered guilty pleas and are pending sentencing. Five of the federal defendants have entered not guilty pleas to the indictment; they are presumed innocent unless found guilty beyond a reasonable doubt.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorneys Reeve L. Swainston and Shana B. Long are prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Eugene, Oregon Man Sentenced on Tax ChargeRead the Press Release
DES MOINES, IA – On February 18, 2015, Jackie Pieter Boer, age 67, of Eugene, Oregon, was sentenced to nine months imprisonment by Judge Robert W. Pratt, for failing to file a tax return for the year 1984, announced United States Attorney Nicholas A. Klinefeldt.
Boer was originally indicted in the Southern District of Iowa in 1989, but failed to appear at his scheduled initial appearance and arraignment. For nearly twenty-five years, Boer was a fugitive, until he voluntarily contacted the United States Attorney’s Office to resolve his outstanding case. In addition to a nine month prison sentence, Boer was sentenced to one year of supervised release following his imprisonment. A $25,000 fine was also imposed.
This case was investigated by the Internal Revenue Service – Criminal Investigation, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Rasan Byrd, age 39, of Houston, Texas today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine and marijuana.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement and court documents, Byrd supervised the Arizona-based activities of a drug conspiracy in which large quantities of cocaine and marijuana were obtained in Arizona and shipped to Maryland. Byrd supervised several workers who weighed the drugs and then wrapped the cocaine and marijuana in plastic containers to avoid detection by law enforcement. He oversaw the delivery of drugs to a shipping company in Scottsdale, Arizona, which forwarded the drugs to his associates in Baltimore and other destinations on the east coast.
As a result of extensive surveillance, on April 22, 2013 law enforcement officers executed a search warrant at the residences of co-conspirators Harold and Josef Byrd, and Jerome Castle, as well as at a commercial building at 5819 Moravia Road in Baltimore that was used to store deliveries of drugs shipped from Arizona. Law enforcement seized 10 kilograms of cocaine from the residences of Josef and Harold Byrd; and approximately 350 pounds of marijuana shipped by Rasan Byrd from Arizona that had just been delivered to the commercial building. Jerome Castle was conducting counter-surveillance during the marijuana delivery at the commercial building and fled from police in a pick-up truck. Castle took the police on a high-speed chase at speeds exceeding 100 miles per hour, and was arrested only after he crashed his vehicle into other vehicles parked in a used car lot in Harford County. Rasan, Harold and Josef Byrd were also arrested, along with Maurice Jones.
In Arizona, over 500 pounds of marijuana and 16 kilograms of cocaine were seized from the shipping company. Between 2009 and April 22, 2013, approximately 88 shipments containing cocaine and marijuana were sent under the supervision of Rasan Byrd and others to the commercial building in Baltimore.
Brothers Harold Alexander Byrd, age 27, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 35, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.
Jerome Adolfo Castle, a/k/a Dontwon Burris, age 37, a Jamaican citizen residing in Pikesville, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison. Castle was also ordered to forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
Maurice Jones, age 60 of Baltimore, also has pleaded guilty to his role in the conspiracy and was sentenced to seven years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
District Man Pleads Guilty to Federal Charges in Massive Identity Theft and Tax Fraud Scheme Admits Working with Others to Seek More Than $1.1 Million in Fraudulent RefundsRead the Press Release
WASHINGTON – James Nelson, 31, of Washington, D.C., has pled guilty to various crimes committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced today.
Nelson is among approximately a dozen people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.
The guilty plea, unsealed today, was announced by U.S. Attorney Ronald C. Machen Jr. of the District of Columbia, Principal Deputy Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington Division, Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of Treasury, and Special Agent in Charge Kathy A. Michalko of the U.S. Secret Service’s Washington Field Office.
Nelson pled guilty to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund, and aiding and abetting in fraud and related activity involving identification information. Under federal sentencing guidelines, Nelson faces an estimated range of 41 to 51 months in prison and a fine of up to $75,000 at his sentencing before the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.
“James Nelson now joins numerous others who have pleaded guilty in this prosecution of a D.C.–based scheme involving at least 12,000 fake income tax returns,” said U.S. Attorney Machen. “Honest taxpayers – like those filing their returns this week – are victimized by these scammers who use stolen identities to generate fraudulent tax refunds and drain money from the U.S. Treasury. This prosecution is not over. We will remain aggressive in our efforts to investigate and prosecute tax refund fraud involving identity theft.”
“One of the Tax Division’s highest priorities is prosecuting individuals such as James Nelson and his co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Principal Deputy Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations, and punish the offenders who view the Federal Treasury as their own personal bank account.”
“Perpetrators of identity theft schemes are motivated by greed, acting as if they are above the law and with total disregard for the consequences to the victims,” said Special Agent in Charge Kelly. “The actions of criminals, such as Mr. Nelson, create distressing hardships for many innocent taxpayers and have a devastating impact on the entire community.”
“Postal Inspectors are proud to join our federal law enforcement partners to bring this case to a successful resolution,” said Acting Inspector in Charge McGinnis. “By joining forces, we are able to bring justice to those who would misuse the U.S. mail in order to defraud innocent citizens and the U.S. government.”
“I am proud of the work done by our Office of Investigations, cooperating with other law enforcement organizations in detecting and deterring this fraud and protecting the integrity of the nation’s tax system,” said Assistant Inspector General Phillips.
“Our success in this case and similar investigations is a result of our close work with law enforcement partners,” said Special Agent in Charge Michalko. “The Secret Service worked closely with the Internal Revenue Service and the Department of Justice to share information and resources that ultimately brought James Nelson to justice. This case demonstrates there is no such thing as anonymity for those engaging in identity theft and fraudulent schemes.”
According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought since 2006, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.
From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses, then in the District of Columbia, for the receipt of some of the fraudulently obtained tax refunds. He also recruited others to receive fraudulent refunds at their addresses. For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.
Approximately 360 fraudulent federal income tax returns were filed with the IRS listing the addresses that were under Nelson’s control. The returns sought refunds of approximately $908,500. As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed.
Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.
In announcing the plea, U.S. Attorney Machen, Principal Deputy Acting Assistant Attorney General Ciraolo, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Special Agent in Charge Michalko commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who are prosecuting the case.
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Detroit Real Estate Businessman Pleads Guilty to Tax and Bank FraudRead the Press Release
On Feb. 18, a Detroit man pleaded guilty in the U.S. District Court for the Eastern District of Michigan to obstructing and impeding the Internal Revenue Service (IRS) and conspiring to commit bank fraud, Principal Deputy Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
According to the information and other court documents, Richard Pierce failed to report over $9 million in gross business receipts during 2007 through 2013, derived from the various Detroit-area businesses that he operated and controlled, including Phoenix Real Estate Company, Phoenix Preferred Properties LLC, Detroit Matrix, First Metro Properties LLC, First Metro Real Estate Services LLC, Phoenix Office Plaza-II LLC, Rosedale/Grandmont Properties LLC, and RFP Ventures LLC. In addition, on Nov. 26, 2007, Pierce participated in a bank fraud scheme wherein he caused the submission of a false loan application to a mortgage lender on which he falsely reported that the buyer was paying $77,900 for a residential property without disclosing that the buyer received a $46,340 “kickback” from the seller.
Sentencing is scheduled for July 8 before U.S. District Court Judge Arthur J. Tarnow of the Eastern District of Michigan. Pierce faces a statutory maximum sentence of three years in prison for filing a false tax return and a statutory maximum sentence of 30 years in prison for conspiring to commit bank fraud, with maximum potential fines totaling $1.25 million.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case, and Trial Attorneys Mark McDonald and Christopher O’Donnell of the Tax Division, who are prosecuting the case. She also thanked the U.S. Attorney’s Office in the Eastern District of Michigan for their assistance.
Deltona Man Indicted on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - United States Attorney A. Lee Bentley, III announces the return of an indictment charging Andrew Terryll Hudson (51, Deltona) with one count of distributing child pornography, one count of receiving child pornography, and one count of possessing child pornography.
According to the indictment, on December 29, 2014, Hudson distributed images and videos depicting child pornography to an undercover FBI agent using an Internet peer-to-peer network. A federal search warrant was subsequently executed at Hudson’s residence and all of his computer-related media was seized. Forensic analyses of the evidence revealed over 1,000 images and videos of child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Volusia County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dallas Man Sentenced to 14 Years in Prison for Sex Trafficking of a MinorRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Dallas man was sentenced Tuesday to 170 months in prison for transporting a minor to Bossier City, La., for prostitution.
Qualyn D. Mitchell, 31, of Dallas, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of sex trafficking of a minor. He was also sentenced to five years of supervised release. According to evidence presented at the September 16, 2014 guilty plea, law enforcement agents responded in an undercover capacity to an online advertisement for prostitution on November 21, 2013 and found a 16-year-old minor at a Bossier City hotel engaged in prostitution. Mitchell was found in an adjacent hotel room with another prostitute. Upon further investigation, it was learned that Mitchell met the minor a few days earlier and brought her from Dallas to Bossier City. He instructed the minor to give him the money she made from prostitution. Agents found $1,200 on Mitchell at the time of the arrest.
“Human trafficking, especially for the purpose of underage prostitution, is a heinous crime,” Finley stated. “This office is committed to prosecuting individuals who manipulate minors into committing sexual acts, often using the threat of violence, and who profit from this illegal and reprehensible conduct. I want to thank the Assistant U.S. Attorney, the FBI, and the other law enforcement agencies for their vigilance in investigating these crimes, which have resulted not only in criminal convictions, but in the rescue of numerous girls and young women from terrible environments.”
The FBI-Violent Crimes Against Children Task Force, Bossier City Police Department, and the Bossier City Marshal’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov and may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Columbia Man Pleads Guilty to His Role in Federal Drug ConspiracyRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Raheem Majeed, a/k/a “Mitch,” age 30, of Columbia, South Carolina has entered a guilty plea in federal court. Majeed plead guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Senior United States District Judge Cameron McGowan Currie accepted the plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that beginning at least in or around June 2006, and continuing to up and including October 2009, Majeed and others conspired to possess with intent to distribute and to distribute cocaine and crack cocaine in the Columbia, South Carolina area. The indictment stemmed from a large investigation by the Federal Bureau of Investigation (FBI) in which over 120 defendants were charged following a series of court-authorized, FBI-monitored wiretaps over dozens of telephones in the Columbia area. The evidence showed that Majeed distributed over 500 grams of cocaine and over 28 grams of crack cocaine while a member of this conspiracy. Majeed was charged, along with a number of co-defendants, in 2011 and remained a fugitive until his arrest in 2014.
Mr. Nettles stated that Majeed, who has a prior felony drug conviction from Louisiana for possession with intent to distribute marijuana, faces a statutory mandatory minimum sentence of ten (10) years imprisonment with a maximum of life, a fine of $8,000,000, and a term of supervised release of at least eight (8) years following the term of imprisonment.
The case was investigated by the FBI Columbia Violent Gang Task Force. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Colombian National Sentenced to 360 Months in Prison for the Kidnapping and Murder of DEA Special Agent James “Terry” WatsonRead the Press Release
Second Colombian National Sentenced To 40 Months In Prison For Obstructing The Investigation
Two Colombian nationals were sentenced to prison yesterday in the Eastern District of Virginia for the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogotá, Colombia, on June 20, 2013, and subsequent concealment of those crimes.
Attorney General Eric Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Bill A. Miller, Director, U.S. State Department’s Diplomatic Security Service made the announcement.
“These two defendants bear responsibility for the kidnapping and murder of a courageous federal agent,” said Attorney General Eric Holder. “With this sentencing, they face justice for their involvement in this brutal crime. Our nation owes a great debt to Special Agent Terry Watson and his loved ones. We will never rest in our determination to honor his profound sacrifices, to pursue all who would threaten our brave men and women in law enforcement, and to carry on the vital work for which he gave his life.”
“Yesterday’s sentencing is another important step in bringing justice to those responsible for the murder of Special Agent Terry Watson,” said DEA Administrator Michele M. Leonhart. “Terry was a respected and dedicated DEA Special Agent and we will not rest until all those involved in this heinous act are sentenced. Our thoughts and prayers continue to go out to the Watson family as this case moves towards a final resolution.”
Edwin Gerardo Figueroa Sepúlveda, 39, of Bogotá, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Yesterday, U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia sentenced Figueroa Sepúlveda to 360 months. Wilson Daniel Peralta-Bocachica, 31, also of Bogotá, previously pleaded guilty to obstruction of justice, and was sentenced to 40 months yesterday.
In the statement of facts filed with his plea agreement, Figueroa Sepúlveda admitted that he conspired to conduct “paseo milionarios” or “millionaire’s rides” in which he and his co-conspirators lured victims into taxi cabs, then kidnapped and robbed them. He admitted that on the evening of June 20, 2013, he was part of a six-person robbery crew that targeted Special Agent Watson. One of the members of the crew picked up Special Agent Watson in his taxi, while another drove a second taxi carrying the assailants. Figueroa Sepúlveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun several times while another defendant stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
In a statement of facts filed with his plea agreement, Peralta-Bocachica admitted that in the days following the kidnapping and murder, he washed the taxi in which Special Agent Watson was stabbed, removing the victim’s blood from the back seat then discarding the cleaning rags, before turning the taxi over to the Colombian National Police.
A total of six defendants were charged for their involvement in the murder and kidnapping of Special Agent Watson, in addition to Peralta-Bocachica who was charged with obstruction of justice. Héctor Leonardo López, 34; Julio Estiven Gracia Ramírez, 32; Andrés Álvaro Oviedo García, 22; Omar Fabián Valdes Gualtero, 28; and Édgar Javier Bello Murillo, 28, previously pleaded guilty to conspiracy to kidnap and aiding and abetting the murder of an internationally protected person. On Dec. 12, 2014, López was sentenced to 25 years in prison, Gracia Ramírez was sentenced to 27 years in prison, and Oviedo García was sentenced to 20 years in prison. Omar Fabián Valdes Gualtero and Édgar Javier Bello Murillo are scheduled to be sentenced on April 15, 2015.
This case was investigated by the FBI, DEA and the Diplomatic Security Service, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Collin County Man Sentenced for Foreign Currency Trading Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 55-year-old Plano, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kevin G. White pleaded guilty on Dec. 11, 2013, to committing mail fraud in connection with a commodity trading fraud scheme and was sentenced to 97 months in federal prison on Feb. 18, 2015 by U.S. District Judge Marcia A. Crone. White was also ordered to pay restitution in the amount of $3,926,870.According to information presented in court, White operated Revelation Forex Fund (RFF), which was a fund that conducted foreign exchange currency trading. RFF had its offices in Plano. In order to lure investors to purchase partnership interests in RFF, White falsely overstated the past rate of return on investment for RFF, that RFF returns had been audited, and the length of time RFF had actually been in existence. RFF received investments totaling over $7.4 million. White admitted to using approximately $1.8 million of investor funds for non-investment purposes. The loss to investors was approximately $4 million.
White was ordered to surrender to the Bureau of Prisons on Apr. 6, 2015 to begin his sentence.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Charleston man pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jermain Santell Hill, 35, of Charleston pleaded guilty to possession of crack cocaine with the intent to distribute.
Hill admitted that on March 2, 2014, he was in possession of crack cocaine that he intended to distribute. He also admitted to possessing a loaded semi-automatic pistol while in possession of the crack cocaine.
Hill faces up to 20 years in federal prison and a fine of $1 million. He is scheduled to be sentenced on May 20, 2015.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
The case is being investigated by the Dunbar Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
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Carmen Dozier Pleads Not Guilty to Inn Embezzlement and Bank FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Carmen Dozier, 38, of Middletown Springs, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. U.S. Magistrate Judge John M. Conroy released Dozier on conditions pending trial, which has not been scheduled.
Last week, a federal grand jury in Rutland returned a two-count indictment charging Dozier with wire fraud and bank fraud. According to the indictment, in May 2013 Dozier was hired as the front desk manager at the Brandon Inn in Brandon, Vermont. Dozier prepared payroll records which were sent to the Inn's payroll processing company. She also took and confirmed reservations and paid vendors for goods and services for the Inn. The indictment charges that, beginning in July 2013 and continuing until mid-May 2014, Dozier embezzled about $70,000 from the Inn. She did this by falsifying the Inn's payroll records to inflate the regular and overtime hours she ostensibly worked, thereby causing the Inn's payroll processor to issue her paychecks or electronic direct deposits in amounts that exceeded her earned income. The indictment further charges that Dozier caused fraudulent transfers of Inn funds to her personal bank account at Lake Sunapee Bank. In addition, Dozier fraudulently used credit cards issued to the Inn's owners to make personal purchases, and fraudulently opened and used a BillMeLater PayPal service account.
The indictment accuses Dozier of also defrauding Lake Sunapee Bank by depositing, and attempting to deposit, about $20,000 worth of checks which were made payable to Dozier and which were purportedly signed by family members. In fact, the checks were written against out-of-state accounts which either were closed or did not contain sufficient funds. Dozier attempted to withdraw the apparent proceeds of the checks from Lake Sunapee Bank before the checks were dishonored.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.If convicted, Dozier faces up to 30 years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Brandon Police Department and the Federal Bureau of Investigation.
Dozier is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
CEO of North Jersey Biotechnology Company Admits Violating Securities LawsRead the Press Release
NEWARK, N.J. – The president and CEO of Proteonomix Inc., a biotechnology company in Paramus, New Jersey, today admitted misleading the U.S. Securities and Exchange Commission (SEC) about his business dealings with his father-in-law, U.S. Attorney Paul J. Fishman announced.
Michael M. Cohen, 49, of West Orange, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of certifying false statements with the SEC.
According to documents filed in this case and statements made in court:
Proteonomix performed stem cell research and developed cosmeceutical products. Cohen’s father-in-law was the president of Nancyco of NY Inc., Joe & Sam of New York Inc., Mollyco of NY Inc., and JSMNM Inc. (collectively, the “FIL Companies”) that purportedly performed work for Proteonomix in exchange for Proteonomix shares.As the president, CEO, and chief financial officer for Proteonomix, Cohen was required to accurately disclose the company’s financial information to the investing public. SEC regulations require disclosure of “related-party transactions” involving immediate family members with a direct or indirect material interest. Cohen admitted he exercised control over the FIL Companies’ bank and brokerage accounts and failed to disclose they were related parties under SEC regulations. In a September 2012 filing with the SEC, Proteonomix and Cohen knowingly failed to disclose that an agreement between Proteonomix and Mollyco, in which $2 million in debt was converted into shares of Proteonomix stock, was a related-party transaction.
The false statements count to which Cohen pleaded guilty carries a maximum potential penalty of 10 years in prison and a $1 million fine. Sentencing is scheduled for May 27, 2015.
The SEC today filed a civil complaint against Cohen.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and SEC’s Division of Enforcement, under the direction of Associate Director Antonia Chion, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Economic Crimes Unit in Newark.
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Defense counsel: Jacob Frenkel Esq., Baltimore, Maryland.
Broward Resident Convicted for his Involvement in Extensive Tax Refund Fraud SchemeRead the Press Release
After a seven-day trial, a federal jury yesterday convicted Vory V. Copeland, 40, of Miramar, Florida, for his involvement in a tax refund fraud scheme that resulted in the filing of over 150 fraudulent tax returns and the cashing of numerous fraudulently-obtained tax refund checks.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
As shown at trial, between January 2010 and April 2010, Copeland and his co-conspirators filed numerous fraudulent tax returns, including tax returns based on stolen personal identification information, and cashed many of the resulting fraudulently-obtained tax refund checks at a Wachovia bank in Miami Gardens, Florida. Victims testified at trial that they were not aware that tax returns had been filed by the defendant on their behalf, using their personal information, and that they had not authorized the defendant nor his co-conspirators to file the fraudulent tax returns or cash the resulting tax refund checks.
At sentencing, which is currently set for April 29, 2015, at 3:00 p.m., before U.S. District Judge Joan A. Lenard, Copeland faces a maximum term of 86 years in prison.
Mr. Ferrer commended the investigative efforts of the IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorneys John Gonsoulin and John Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Man Charged with Conspiracy to Bring over 100 Grams of Crack Cocaine and 40 Grams of Heroin to Rutland for DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Alvin Kinard (a.k.a. (“Baby”)), 25, of Brooklyn, New York, has been charged in a conspiracy to distribute heroin and 28 grams or more of crack cocaine in the Rutland, Vermont area. Kinard pled not guilty before U.S. Magistrate Judge John Conroy to the charges against him. Judge Conroy ordered that Kinard be detained pending trial in light of Kinard’s prior criminal record and record of failing to appear for prior hearings.
According to the government’s motion for pre-trial detention, on September 9, 2013, the New York State Police stopped a vehicle for a seat belt violation in which Kinard was a passenger. The New York State Police seized over 100 grams of crack cocaine and approximately 40 grams of heroin from the driver and another passenger in the vehicle. The government alleges that these drugs actually belonged to Kinard and he intended to take them to the Rutland, Vermont area to distribute them.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Kinard is convicted, he faces a mandatory minimum five years of imprisonment and a maximum possible term of imprisonment of forty years.
The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Kinard is represented by Mary Kehoe, Esq. of Burlington. The investigation was conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.