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Thursday 19 February 2015
Brattleboro Man Sentenced for Heroin SaleRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on February 17, 2015, Lamar James, 24, of Brattleboro, was sentenced in United States District Court to seven months imprisonment on his guilty plea to a charge of distribution of heroin. United States District Judge Geoffrey W. Crawford also ordered James to serve three years supervised release following his incarceration. James had been detained since his July 1, 2014 arrest.
According to court records, the Vermont Drug Task Force used a confidential informant to make three controlled purchases of heroin from James in Brattleboro during April 2014. On June 18, 2014, a federal grand jury returned an indictment charging defendant with distribution of heroin based on two of the controlled purchases. On December 15, 2014, James entered a guilty plea to Count Two of the Indictment arising out of his sale of fifty bags of heroin on April 29, 2014 to the informant working for the Task Force.
Acting United States Attorney Eugenia A.P. Cowles commended the Task Force for its investigation and its ongoing efforts to combat drug trafficking. Cowles added, “This office will continue to work with the federal, state and local law enforcement agencies to investigate and aggressively prosecute those who poison our children and neighbors with heroin and other illicit drugs.” Burlington Attorney David J. Williams represented James. The case was prosecuted by Assistant United States Attorney Craig S. Nolan.
Blue Springs Man Pleads Guilty to Producing Child Porn After Being Caught on Nanny CamRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man who was caught sexually assaulting a toddler on a nannycam pleaded guilty in federal court today to producing child pornography.
Jeffrey Laurence Treta, 47, of Blue Springs, pleaded guilty before U.S. District Judge Beth Phillips to two counts of producing child pornography, two counts of producing child obscenity, one count of possessing child pornography and one count of obstructing justice.
Treta was living with his estranged wife and babysitting a 21-month-old child identified as Jane Doe #1 while his wife was away from the house on Jan. 29, 2013. Treta’s wife had installed a nannycam in the master bedroom, which was triggered whenever anyone entered the room. The nannycam recorded Treta bringing Jane Doe #1 into the bedroom, laying the toddler down on the bed, and using his cell phone to record himself sexually assaulting the child victim while he lay in bed with her.
Treta’s wife and son gave law enforcement investigators a SIM card they had innocently retrieved from Treta’s cell phone on a prior occasion. The SIM card contained a video and images of similar child pornography dated 10 days prior to Treta’s recorded assault of Jane Doe #1. Some of the images of this assault were transferred from Treta’s cell phone to his laptop computer.
Treta’s laptop also contained images of two more victims, about 10 years old, identified as Jane Doe #2 and Jane Doe #3. Those images were Photoshopped to make it appear as though the children were engaged in sexually explicit conduct.
Treta’s laptop contained hundreds of images from child modeling, nudist and other Web sites, many of which constituted child pornography. Many of the images were of prepubescent children (including toddlers) and a few depict sadistic activity. Other images on Treta’s laptop resembled the Photoshopped images of Jane Doe #2 and Jane Doe #3.
Treta destroyed evidence in anticipation of a police investigation of sexual abuse and child pornography. During the few minutes after police officers had been called, but before they arrived at his residence, Treta deleted a large number of items from his laptop, including images and videos.
Under federal statutes, Treta is subject to a mandatory sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Belle Chasse Man Pleads Guilty to Misuse of a Mariner LicenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILLIE ENGLISH, age 41, of Belle Chasse, pled guilty today to one-count Indictment, charging him with misuse of a federal license.
According to the court record, in November 2008, ENGLISH used a fake U.S. Coast Guard Merchant Mariner’s License purporting to be a Master of vessels not more than 100 gross tons, to maintain employment as a vessel captain at Bud’s Boat Rental in Belle Chase, Louisiana. ENGLISH admitted he made the license while he was a deckhand onboard another vessel for another employer.
ENGLISH faces not more than five years imprisonment and a $250,000 fine. U.S. District Judge Mary Ann Vial Lemmon set sentencing for May 14, 2015.
U.S. Attorney Polite praised the work of the Coast Guard Investigative Service in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Baltimore Woman Sentenced to 4 Years in Prison in Credit Card Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Wanisha D. Coates, age 25, of Baltimore, today to four years in prison followed by five years of supervised release for bank fraud conspiracy and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; U.S. Marshal Johnny Hughes; Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police; Fairfax County, Virginia, Police Chief Edwin C. Roessler, Jr.; Easton Police Department Chief David A. Spencer; Anne Arundel County Police Chief Tim Altomare; and Talbot County State’s Attorney Scott G. Patterson.
According to her plea, from at least the winter of 2012 to July 2014, Coates and others created counterfeit credit cards, using stolen or otherwise compromised credit and debit card numbers belonging to others. They encoded the stolen account information onto credit and stored value cards which were then used to obtain money and credit from banks and credit unions. These proceeds were used to buy consumer products, including designer shoes by Gucci, Louis Vuitton and Christian Louboutin, and designer clothes from Neiman Marcus.
On November 2, 2012, Coates and her co-conspirators used altered credit cards to make fraudulent purchases at a Target in Fairfax, Virginia. Coates was arrested and prosecuted in Fairfax County, Virginia for credit card fraud. She failed to appear for her court hearing, and a bench warrant was issued for her arrest.
On April 2, 2013, Coates was stopped by a Maryland State trooper for a traffic violation in Centreville, Maryland. The Trooper smelled burnt marijuana and searched the vehicle, seizing several gift cards, credit cards and “ReloadIt” stored value cards that were altered and rewritten with compromised account information.
On January 11, 2014 Easton Police officers arrested co-conspirator Domenique Miller and another co-conspirator after they tried to buy multiple gift cards at a Staples store in Easton. A number of credit cards fraudulently re-encoded with stolen or compromised account information were seized, along with a small amount of marijuana. Miller advised police that his girlfriend was staying at an Easton motel. Officers arrived at the motel room and were overwhelmed by the odor of raw and burnt marijuana as they entered. Present inside the room were the girlfriend and Coates. Coates identified herself as “Wanda C. Redd,” who is in fact her mother. Coates was arrested. Officers seized 44 credit or stored value cards, many of which had been fraudulently altered. Coates appeared at the Talbot County District Court for a hearing relating to this incident, and again assumed the identity of Wanda Redd.
On March 13, 2014, Anne Arundel County Police responded to a call from a man at a motel in Linthicum, Maryland who said he had been cut in the face with a knife by Coates. Police found Coates and the man outside of their motel room. Police seized approximately 27 credit and gift cards, some visibly altered, and a device for reading, erasing and writing data on magnetic strips of credit cards.
On May 22, 2014, the Virginia state case against Coates was dismissed and Coates was taken into federal custody on charges of access device fraud. She was transported to federal court in Baltimore for an initial appearance, and ordered released on the condition that she reside at a halfway house awaiting additional court proceedings. She was also ordered not to leave Maryland. However, on June 4, 2014, Coates left the halfway house for a physical examination and never returned. A federal arrest warrant was issued, based on her absconding from court ordered supervision at the halfway house.
On July 23, 2014 the U.S. Marshals Service Regional Fugitive Task Force located Coates at a motel in Belleville, New Jersey. Task force officers arrived at the motel room, which smelled strongly of burnt marijuana, and arrested Coates. Officers seized marijuana, a credit card embossing device, electronics, and approximately 100-150 stored value cards or credit cards, some of which had been fraudulently re-encoded with stolen credit card information.
The loss attributable to Coates during the course of the conspiracy is between $120,000 and $200,000 and involves up to 49 victims.
Domenique R. Miller, age 20, of Newnan, Georgia, previously pleaded guilty to his participation in the scheme and awaits sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
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’s 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.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, U.S. Secret Service, U.S. Marshals Service, Easton Police Department, Maryland State Police, Anne Arundel County Police Department, Fairfax (Virginia) County Police Department, Talbot County State’s Attorney’s Office and the U.S. Marshals Service Regional Fugitive Task Force for their work in the investigation and related prosecution. Mr. Rosenstein praised the Fairfax County (Virginia) Commonwealth’s Attorney’s Office and Lyndhurst (New Jersey) Police Department for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
Arlington Heights, Illinois, Company and its Owner and Employee Charged with Illegal Export and Import of Military ArticlesRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Gary Hartwig of Homeland Security Investigations Chicago, Special Agent in Charge James C. Lee of the Internal Revenue Service’s (IRS) Chicago Office and Special Agent in Charge Brian Reihms of the Department of Defense Criminal Investigative Service in Chicago announced today that an Arlington Heights, Illinois, company, its president and a former employee were indicted on federal charges for unlawfully exporting and importing military articles, including components used in night vision systems and an M1A1 Abrams tank, which is the main battle tank used by the U.S. Armed Forces. The defendants were charged in an indictment returned by a federal grand jury in January and made public this week.
Vibgyor Optical Systems Inc., a company located in Arlington Heights, purported to manufacture optics and optical systems, including items that were to be supplied to the U.S. Department of Defense (DOD). Instead of manufacturing the items in Illinois, as it claimed, Vibgyor illegally sent the technical data for, and samples of, the military articles to manufacturers in China, then imported the items from China to sell to its customers—including DOD prime contractors. Bharat “Victor” Verma, 74, of Arlington Heights, Vibgyor’s president, and Urvashi “Sonia” Verma, 40, of Chicago, a former Vibgyor employee and owner of a now-defunct company that operated as a subcontractor for Vibgyor, were also charged in the indictment.
According to the indictment, between November 2006 and March 2014, the defendants conspired to defraud the United States and violate the Arms Export Control Act (AECA) and International Traffic in Arms Regulations. The AECA prohibits the export or import of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States. Under the International Traffic in Arms Regulations, any person seeking to import items designated as defense articles on the United States Munitions Import List is required to obtain a permit to do so from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Vibgyor won subcontracts to supply optical components and systems to DOD prime contractors by misrepresenting the location of manufacture of the items it supplied. Bharat Verma falsely claimed that the items Vibgyor supplied were manufactured in domestically, when they actually had been manufactured in China, based on information illegally exported to Chinese manufacturers. In addition to illegally providing technical data for a military item to China, Urvashi Verma attempted to ship an example of one of the military items to the Chinese manufacturer.
“The Arms Export Control Act and the International Traffic in Arms Regulations are vital to preventing embargoed countries from gaining access to our sensitive military technology, and to ensuring that our armed forces are not issued substandard equipment,” said U.S. Attorney Fardon. “Where companies and individuals seek to violate the AECA and the International Traffic in Arms Regulations, we will not hesitate to act."
Vibgyor, Bharat Verma and Urvashi Verma are charged with one count of conspiracy to violate both the AECA and the International Traffic in Arms Regulations; one count of conspiracy to defraud the United States—each offense is punishable by up to five years’ imprisonment—and one count of violating the AECA, with a maximum possible penalty of 20 years in prison and a fine up to $1,000,000. Vibgyor and Bharat Verma were also charged with international money laundering, an offense with a maximum possible sentence of 20 years’ imprisonment and a fine up to $500,000. The defendants are scheduled to be arraigned Friday, Feb. 20, 2015, before U.S. Magistrate Judge Sidney I. Schenkier.
The case is being prosecuted by Trial Attorney Casey Arrowood of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Diane MacArthur, Bolling W. Haxall and Shoba Pillay of the Northern District of Illinois.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Arlington Heights Company and Its Owner and Employee Charged with Illegal Export and Import of Military ArticlesRead the Press Release
CHICAGO — An Arlington Heights company, its president, and a former employee were indicted on federal charges for unlawfully exporting and importing military articles, including components used in night vision systems and on the M1A1 Abrams tank, which is the main battle tank used by the U.S. Armed Forces. The defendants were charged in an indictment returned by a federal grand jury in January and made public this week.
VIBGYOR OPTICAL SYSTEMS, INC., a company located in Arlington Heights, purported to manufacture optics and optical systems, including items that were to be supplied to the U.S. Department of Defense (DOD). Instead of manufacturing the items domestically, as it claimed, VIBGYOR illegally sent the technical data for, and samples of, the military articles to manufacturers in China, then imported the items from China to sell to its customers—including DOD prime contractors. BHARAT “Victor” VERMA, 74, of Arlington Heights, VIBGYOR’s president, and URVASHI “Sonia” VERMA, 40, of Chicago, a former VIBGYOR employee and owner of a now-defunct company that operated as a subcontractor for VIBGYOR, were also charged in the indictment.
According to the indictment, between November 2006 and March 2014, the defendants conspired to defraud the United States and violate both the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR). The Arms Export Control Act prohibits the export or import of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States. Under the International Traffic in Arms Regulations, any person seeking to import items designated as defense articles on the United States Munitions Import List is required to obtain a permit to do so from the Bureau of Alcohol, Tobacco, Firearms and Explosives. VIBGYOR won subcontracts to supply optical components and systems to DOD prime contractors by misrepresenting the location of manufacture of the items it supplied. BHARAT VERMA falsely claimed that the items VIBGYOR supplied were manufactured domestically, when they actually had been manufactured in China, based on information illegally exported to Chinese manufacturers. In addition to illegally providing technical data for a military item to China, URVASHI VERMA attempted to ship an example of one of the military items to the Chinese manufacturer.
“The Arms Export Control Act and the International Traffic in Arms Regulations are vital to preventing embargoed countries from gaining access to our sensitive military technology, and to ensuring that our armed forces are not issued substandard equipment,” stated Zachary T. Fardon, United States Attorney, after the charges were announced. “Where companies and individuals seek to violate AECA and the ITAR, we will not hesitate to act.”
VIBGYOR, BHARAT VERMA, and URVASHI VERMA are charged with one count of conspiracy to violate both the Arms Export Control Act and the International Traffic in Arms Regulations; one count of conspiracy to defraud the United States—each offense punishable by up to five years’ imprisonment—and one count of violating the Arms Export Control Act, with a maximum possible penalty of 20 years in prison and a fine up to $1,000,000. VIBGYOR and BHARAT VERMA were also charged with international money laundering, an offense with a maximum possible sentence of 20 years’ imprisonment and a fine up to $500,000. The defendants are scheduled to be arraigned Friday, February 20, at 1:00 p.m. before U.S. Magistrate Judge Susan E. Cox at the Everett McKinley Dirksen United States Courthouse in Chicago.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations Chicago, James C. Lee, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service, and Brian Reihms, Special Agent-in-Charge of the Department of Defense Criminal Investigative Service in Chicago.
The government is being represented by Assistant United States Attorneys Diane MacArthur, Bolling W. Haxall, and Shoba Pillay and Trial Attorney Casey Arrowood of the Justice Department’s National Security Division.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Annual African American Heritage Celebration at the Baton Rouge Federal CourthouseRead the Press Release
BATON ROUGE, LA – Chief Judge Brian A. Jackson, Judge Shelly D. Dick, Judge John W. deGravelles, and Judge James J. Brady of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Twentieth Annual Federal Courthouse African-American History Month Program. The program will be held at 10:00 a.m. on Thursday, February 26, 2015, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be the Honorable Chief Justice Bernette Joshua Johnson of the Louisiana Supreme Court. Chief Justice Johnson grew up in New Orleans, Louisiana and was elected Associate Justice of the Louisiana Supreme Court in 1994. She was re-elected, without opposition, in 2000 and 2010.
Musical entertainment will be provided by Mr. Everrett Parker and the Greater Mount Carmel Male Quartet.
Members of the public and the press are invited to attend. For further information, please contact Michael J. Jefferson, Assistant United States Attorney, at (225) 389-0443.
Angolan National Pleads Guilty to Identity TheftRead 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 Lorena Midia, 33, most recently a resident of Toronto, Ontario, Canada, and a native of Angola, pleaded guilty before Chief U.S. District Court Judge William M. Skretny to aggravated identity theft. The charge carries a mandatory minimum penalty of two years in prison.Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendant applied for a United States Passport on October 29, 2010, at the Buffalo Passport Office Agency. Midia fraudulently claimed to a United States citizen named Tabitha Humber by presenting a social security card, New York State birth certificate, and New York State Benefit ID Card issued in the name of Humber. After being indicted, Midia was arrested in Toronto by Canadian authorities on August 1, 2013 and formal extradition proceedings led to the defendant being brought to the United States for prosecution.
The conviction is the result of an investigation on the part of Special Agents of the United States Department of State, Diplomatic Security Service, under the Direction of Special Agent In-Charge William Ferrari, and the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan.
Sentencing is scheduled for June 24, 2015 before Judge Skretny.
Andrews Pleads Guilty to Production of Child Pornography; Plea Agreement Includes Stipulated 25-Year SentenceRead the Press Release
ST. GEORGE - Brenton Andrews, age 27, of St. George, pled guilty Tuesday in U.S. District Court in St. George to one count of production of child pornography. Andrews admitted that he persuaded a child under the age of 18 to engage in sexually explicit conduct which he recorded.
The plea agreement includes an agreed upon sentence of 25 years in federal prison. The prison sentence will be followed by a term of supervised release of not less than 20 years. The sentencing agreement is subject to the approval of U.S. District Judge Ted Stewart, who will impose sentencing in the case on July 7, 2015, at 10 a.m. in St. George.
Andrews was charged with one count of production of child pornography in a Felony Information filed in December following an investigation by the St. George Police Department and U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations special agents.
According to the plea agreement, Andrews made video recordings of the child while the child was nude and produced lewd images of the child.
As a part of the plea agreement, Andrews agreed to forfeit a laptop computer, other computer equipment, and photographs, videos and other visual depictions.
State charges involving alleged conduct with the child are pending.
Anchorage Woman Charged with 20 Counts of Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been charged with 20 counts of Bank Fraud and Aggravated Identity Theft for falsely altering stolen checks and cashing them at banks around Anchorage.
Denae Sullivan, 32, of Anchorage, is charged in a 20-count indictment with a scheme to defraud banks using checks stolen from the mail and from vehicle break-ins. She is further charged, as part of the scheme, with stealing the identities of individuals in Anchorage and Illinois. The investigation is one of several targeted by the United States Postal Inspection Service to address a recent increase in mail theft rings in the Anchorage area.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Sullivan cashed checks at banks around Anchorage that had been stolen from victims’ mailboxes in Anchorage. She then altered the payee to match a driver’s license she obtained from a victim, and used that stolen identification to negotiate the stolen checks. The stolen checks included payments for rent, charitable donations to a church, and blank checks stolen during vehicle break-ins. Sullivan victimized more than 10 individuals and organizations for a total loss of more than $20,000.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictments in the case.
Albuquerque Man Pleads Guilty to Federal Identity Theft ChargeRead the Press Release
ALBUQUERQUE – David William Welbig, 66, of Albuquerque, N.M., pleaded guilty this morning in Albuquerque federal court to an aggravated identity theft charge. The charge to which Welbig pleaded guilty today arose out of his efforts to evade arrest on interstate transportation of stolen securities charges filed April 1991 in the U.S. District Court for the District of Colorado.
Welbig was indicted on Nov. 4, 2014, and charged with using a passport obtained by a false statement, and aggravated identity theft. The indictment alleged that in July 2014, Welbig concealed his identity and sought to evade arrest by using a passport issued to a person who was deceased. It also alleged that Welbig committed aggravated identity theft by using the identification, namely, a passport, of another person. Welbig was charged with committing these offenses in Bernalillo County, N.M.
During this morning’s proceedings, Welbig pled guilty to Count 2 of the indictment, charging him with aggravated identity theft. Welbig admitted that in order to evade arrest by law enforcement officials on an outstanding indictment and arrest warrant issued in the District of Colorado in 1991, he used the identification information of a deceased person to obtain a U.S. passport. At sentencing, Welbig faces a statutory penalty of two years in federal prison and a year of supervised release following his term of imprisonment. His sentencing hearing has yet to be scheduled.
The indictment filed against Welbig in the District of Colorado was transferred to the District of New Mexico in Sept. 2014. In Oct. 2014, Welbig entered guilty pleas to all three counts of interstate transportation of stolen securities in the indictment. Welbig is scheduled to be sentenced on those charges on April 14, 2015, and faces a maximum statutory penalty of ten years in prison followed by three years of supervised release on each of the three counts.
This case was investigated U.S. Department of State’s Diplomatic Security Service and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Accounting Firm Bookkeeper Sentenced to Prison for Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 27 months imprisonment, followed by three years supervised release, and $270,085.46 in restitution to Cybergenetics Corporation, on her conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Mary L. Schneir, 42, of Bethel Park, Pa.
Schneir was employed as the bookkeeper and office manager at Karna C. Goldsmith, C.P.A., an accounting firm located at Summerfield Commons Office Park, Suite 611, 2555 Washington Road, in Upper St. Clair, Pa. Schneir devised and executed a fraud scheme during her tenure as an employee of Goldsmith, whereby she used funds of Goldsmith clients to make online payments to her personal credit card and mortgage accounts. To hide her activity, Schneir would regularly move money between the bank accounts of Goldsmith’s clients, to which she had access. Specifically, on Feb. 28, 2013, Schneir caused an electronic transfer of funds in the amount of $54,145.36, from the account of Cybergenetics Corporation, to an A.L. Brourman Associates, Inc. account maintained at Citizen’s Bank. At the time Schneir’s scheme was detected, Cybergenetics accounts were the only ones remaining affected. The total loss to the business was in excess of $270,000.
In imposing the sentence, the Court admonished Schneir for causing significant financial harm to Cybergenetics, which threatened the viability of the business and the work of its employees.
Assistant United States Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and detectives of the Allegheny County District Attorney’s Office for the investigation leading to the successful prosecution of Schneir.
7th Street Gang Member Pleads Guilty to Rico Conspiracy; Admits Role in Murder of Rival Gang MemberRead 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 Uda Hidalgo, 31, of Buffalo, pleaded guilty to racketeering conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison and a $250,000 fine.Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2012, Hildalgo was a member of the Cheko’s Crew/7th Street Gang which was responsible for drug trafficking and violent crime on Buffalo’s West Side. During this time, as a part of the rivalry with the 10th Street Gang, the defendant participated with others in the murder of 10th Street Gang associate Eric Morrow. Hildalgo provided one of the firearms used by other gang members to shoot and kill Morrow on August 11, 2009. The defendant also sold illegal narcotics on Buffalo’s West Side.
The please is the culmination of an investigation on the part of Special Agents of the FBI, New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge James S. Higgins, New York Field Division.
Sentencing is scheduled for May 26, 2015 at 12:30 p.m. before Judge Arcara.
25 Individuals Indicted for Drug Trafficking at Villa Envangelina Public Housing ProjectRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, February 18, a federal grand jury in the District of Puerto Rico returned an indictment against 25 defendants charged with conspiracy to possess with intent to distribute controlled substances in the municipality of Manatí, PR, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation is in charge of the investigation, with the collaboration of the Puerto Rico Police Department, specially the Arecibo Strike Force, and the US Postal Inspection Service.
The 25 defendants are: Héctor Omar Figueroa-Quiñonez, aka “Omaki”; Juan Serpa- Candelaria, aka “Pablo”; Ángel M. Ortiz-De Jesús, aka “El Gallo”; Miguel Torres-Cruz, aka “Black Tattoo”; Jonathan J. Ortiz-Salgado, aka “Cochi”; Luis E. Rivera-Pares, aka “Bebo”; Francisco J. Martínez-Moreno, aka “Mickey Bay”; Christian Mercado-Figueroa, aka “Gordo”; José M. Pizzaro-Mezquita; Clem J. Martínez-Natal, aka “Clen”; Mirna Liz Torres-Pérez, aka “Lizzi”; Elvin Omar Millàn-Huertas; José M. Rodríguez-Lugo, aka “Bizcocho”; Adonis Rivera Carrero, aka “Lobo”; David Ortero-Lugo, aka “Davo”; Jorge A. Torres-Figueroa, aka “Jorgie”; Victor Manuel Ortiz-Salgado, aka “El Viejo”; Billy Rosario-Maldonado, aka “Billi”; Ángel Xavier Gonzàlez-Nieves, aka “Xavi”; Melvin Leonardo Sepa-Sepulveda, aka “Hueso”; Hiram Díaz-Meléndez; Kelvin Candelaria-Ortiz, aka “Kelvin Gordo”; John Félix Gonzàlez-Pérez, aka “Palleta”; Juan Carlos Matos-Santos, aka “Cani”; and Félix Aldea Ferrer, aka “Chino Milla”.
The indictment alleges that beginning in 2010, the organization distributed cocaine, heroin, crack, marihuana, Oxycodone (commonly known as “Percocet”), and Alprazolam (commonly known as “Xanax”) within 1,000 feet of a real property comprising housing facility owned by a public housing authority, at the Villa Evangelina Public Housing Project, all for financial gain and profit.The 25 co-conspirators had many roles in order to further the goals of the conspiracy. According to the indictment this organization had up to six leaders/drug point owners/enforcers, one narcotics supplier, at least four runners, a facilitator and firearms supplier, eleven sellers, an armed look-out and one facilitator. Six of the individuals are facing one count of possessing firearms in furtherance of a drug trafficking crime. The defendants would use force, violence, threats and intimidation in order to discipline members of their own organization.
“I commend our law enforcement partners for their hard work and efforts in this investigation,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to pursue the prosecution of members of drug trafficking organizations, in order to provide a safer environment for the law abiding families residing in Puerto Rico’s public housing projects.”
“The FBI’s message is clear and unequivocal. We will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Eliezer Julian, Domicile Coordinator, US Postal Inspection Service stated: “The US Postal Inspection Services seeks to identify, disrupt, and dismantle drug trafficking organizations that attempt to utilize the US Mails. We have strengthened our relationship with our federal and state law enforcement partners. This inter-agency cooperation has had an impact on DTO's operating in Puerto Rico.”Assistant U.S. Attorney Edward Veronda is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Wednesday 18 February 2015
“Enforcer” for Cherry Hill Gang Sentenced to 18 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Antione White, age 26, of Baltimore, today to 18 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, White is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
White was known as an “enforcer” in the UDH group who was responsible for committing robberies on behalf of the group, possessing firearms and shooting at rivals. White admitted that he committed armed robberies with fellow UDH members and possessed firearms which were used by the UDH organization to shoot rivals and protect their territory. On May 25, 2012, White was pulled over while driving a vehicle with his girlfriend and two other UDH members. Officers found a 380 semi-automatic handgun loaded with five 9mm rounds with an obliterated serial number under the driver’s seat. Ballistics comparisons revealed that this gun matched the cartridge casings recovered from the May 11, 2012 scene of the shooting of Little Spelman member Warren Jones a/k/a Pluck, in the 800 block of Bridgeview Road in Cherry Hill. White admitted to two shootings in which the victims, one of whom was a rival gang member, were wounded.
White admitted that as a member of UDH he also sold crack cocaine, heroin and other narcotics with UDH members. White sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill, where White and others also stored firearms, which were used communally by UDH members. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.
During his participation in the UDH drug conspiracy, White was responsible for distributing in excess of 840 grams of crack cocaine.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Seema Mittal, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Westchester Man Sentenced to 50 Years in Prison for Engaging in, and Videotaping, Sexual Activity with Minors and for Transporting His Homemade Videotapes to Recipients Outside of New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RICHARD DINIZO was sentenced in White Plains federal court to 50 years in prison for engaging in sexual activity with seven different minors, all under the age of 11 at the time of the sexual activity, for videotaping the sexual abuse, and for transporting videos depicting DINIZO engaging in sexual activity with minors to recipients outside of New York. DINIZO pled guilty in May 2014 before United States District Judge Vincent Briccetti, who also imposed today’s sentence.
U.S. Attorney Preet Bharara said: “This case underscores the urgent need for law enforcement to continue its efforts to protect children from those who prey on them. Today’s 50-year sentence is a measure of how reprehensible is the conduct of those who will sexually exploit children. We will use every tool available to law enforcement to investigate, prosecute and punish those who sexually abuse children.”
According to documents filed in this case and statements made in related court proceedings:
In March of 2013, a witness provided a camera memory card, discarded by DINIZO in or about August 2012, to law enforcement. The memory card contained a series of videos made in 2009 and 2010 depicting DINIZO and a girl under the age of 11 (“Victim 1”) engaging in sexually explicit activity. DINIZO used trickery and deceit in order to manipulate Victim 1 into engaging in the sexual activity captured on the videos.
Thereafter, during the course of the investigation, additional evidence was recovered from DINIZO revealing additional videos – made by DINIZO between 2007 and 2010 – and additional victims. Ultimately, law enforcement identified seven different victims, all under the age of 11at the time of the abuse. With all seven victims, DINIZO used trickery and deceit. In many instances, DINIZO recorded the sexual abuse using multiple cameras simultaneously. The different cameras captured the abuse from different vantage points.
DINIZO transported his homemade videos to recipients outside New York. His video files have been recovered in numerous law enforcement investigations throughout the country and internationally. Until DINIZO’s arrest, the National Center for Missing and Exploited Children (“NCMEC”), which receives child pornography files recovered by law enforcement, had not been able to identify the girls depicted in the videos and had not been able to identify the place at which the abuse occurred.
In addition to the 50-year prison term, DINIZO, 60, of Cortlandt Manor, New York, was
sentenced to a life term of supervised release.
On December 12, 2013, DINIZO pleaded guilty to three counts of Predatory Sexual Assault Against a Child in Westchester County Supreme Court. On February 18, 2014, DINIZO was sentenced to 25 years to life in prison.
Mr. Bharara praised the efforts of Immigration and Customs Enforcement’s Homeland Security Investigations, the Putnam County District Attorney’s Office, the Putnam County Sherriff’s Office, the Westchester County District Attorney’s Office, the New York State Police, and NCMEC in connection with this investigation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
West Salem Man Sentenced to 14 Years in Prison for Methamphetamine OffenseRead the Press Release
Follow @SDILNewsDillion Wayne Bailey, 30, of West Salem, Illinois, was sentenced today in United States District Court in Benton to a 14 year term of imprisonment for possessing with intent to distribute 2 ounces of highly pure methamphetamine (commonly known as “crystal” or “ice”), announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Bailey was charged with that offense by a Federal Grand Jury on July 8, 2014, and pled guilty to it on October 23rd. The offense occurred on June 13, 2014, in White County.
Evidence introduced in support of the guilty plea and sentence showed that on June 13th Bailey was stopped by a Grayville, Illinois, Police Department officer for a traffic violation. After an Edwards County Sheriff’s Department drug detection dog alerted to the presence of narcotics in Bailey’s vehicle, Bailey attempted to flee the scene in his vehicle. Bailey struck the officer with his car which forced the officer onto the hood to avoid being ran over. Bailey proceeded across a 2 block long parking lot with the officer still on his hood. Bailey ignored the officer’s commands to stop until the officer was able to draw and point his service weapon. Bailey continued to resist arrest, forcing officers to deploy the canine. After Bailey was subdued, 2 ounces of ice, a bag of glass smoking pipes, numerous small unused plastic baggies, and a digital scale were found in Bailey’s vehicle. Subsequent laboratory testing revealed that the methamphetamine was 100% pure. A search of Bailey’s pockets revealed $2,131 in cash.
In addition to the 14 year prison sentence, Bailey was ordered to pay fines and special assessments totaling $300 to the United States and was placed on a 3 year term of supervised release to follow his incarceration. Following his sentencing, Bailey was returned to the custody of the United States Marshal, where has been held without bond since his arrest on the federal charges in July, to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Grayville Police Department, with the assistance of the Edwards County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
U.S. Attorney John Walsh Attends White House Summit on Countering Violent ExtremismRead the Press Release
DENVER -- Today, U.S. Attorney John Walsh, along with six other U.S. Attorneys, are participating in the White House’s Summit on Countering Violent Extremism.
The purpose of the Summit is to highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, and Paris. This summit will build on the strategy the White House released in August of 2011, Empowering Local Partners to Prevent Violent Extremism in the United States, the first national strategy to prevent violent extremism domestically.
Our partners around the world are actively implementing programs to prevent violent extremism and foreign terrorist fighter recruitment. The summit will also include representatives from a number of partner nations, focusing on the themes of community engagement, religious leader engagement, and the role of the private sector and tech community.
Through presentations, panel discussions, and small group interactions, participants will build on local, state, and federal government; community; and international efforts to better understand, identify, and prevent the cycle of radicalization to violence at home in the United States and abroad.
U.S. Attorney Brendan V. Johnson to Step DownRead the Press Release
Sioux Falls, South Dakota – Brendan V. Johnson announced this morning that he will step down as the United States Attorney for the District of South Dakota effective March 11, 2015. Johnson was unanimously confirmed by the United States Senate on October 15, 2009. He is among the longest serving U.S. Attorneys in the history of South Dakota.
“I am proud of what we have accomplished during my tenure,” said U.S. Attorney Brendan Johnson. “We attacked the horrific crime of human trafficking on a scale that is unprecedented for a state our size, and we worked shoulder-to-shoulder with our tribal partners to reduce violence against Native American women and children. Our efforts helped put away some of South Dakota’s most violent drug dealers and notorious tax cheaters. In short, this office upheld the public trust at all times and distinguished itself as a national leader within the United States Department of Justice. I leave comforted with the knowledge that our tremendously skilled First Assistant United States Attorney Randy Seiler will continue to build on this record of accomplishment. Finally, I want to thank President Barack Obama and Attorney General Eric Holder for the opportunity to serve the people of South Dakota.”
"During Brendan Johnson's tenure as United States Attorney for South Dakota, he has distinguished himself as an exemplary leader, a passionate advocate for his fellow citizens, and an extraordinarily dedicated public servant," said Attorney General Holder. "As a lawyer and as a leader, Brendan has set a standard of excellence that will not soon be surpassed. Particularly with regard to public safety challenges on tribal lands, he has served as a key advisor to senior Justice Department officials—including me. As past Chair of the Native American Issues Subcommittee, he is not only a respected champion for tribal justice in his own right, but a critical national leader—offering sound guidance, wise counsel, and candid advice on a host of pressing issues. In standing against violent crime, fraud, drug trafficking, violence against women, and countless other threats, Brendan's fierce and determined service, on behalf of the people of South Dakota, has been without equal. Although he will be greatly missed, his many contributions will endure. I thank him for his outstanding service—to South Dakota, and to our nation—and wish him all the best as he takes on new challenges and opportunities."
Mr. Johnson is a graduate of the University of South Dakota and the University of Virginia School of Law. Shortly after his confirmation in 2009, Johnson was selected by the Attorney General of the United States to chair the Department of Justice’s Native American Issues Subcommittee. In this capacity, Mr. Johnson strengthened relationships between the Department of Justice and tribal communities across the country. He has been a national leader in implementing the reauthorization of the Violence Against Women Act (VAWA) which contains provisions that significantly improve the safety of Native women, and allows federal and tribal law enforcement to hold more perpetrators of domestic violence accountable for their crimes. Since the passage of VAWA, federal prosecutors nationwide have convicted more than 140 defendants under the law’s enhanced federal assault statutes.
Mr. Johnson’s leadership also brought national attention to the District of South Dakota’s efforts to strengthen relationships with tribes in the state. During Johnson’s tenure, the Attorney General of the United States, the Deputy Attorney General, and the Associate Attorney General of the United States all visited South Dakota tribes to review the innovative programs implemented in the state. Some of the programs Johnson implemented include a juvenile diversion program to keep Native American children out of the federal criminal justice system, designated tribal prosecutors as Special Assistant United States Attorneys, arranged the first in the nation state-wide tribal listening session, organized the first in the nation state-wide conference on violence against Native women, conducted town-hall meetings on public safety on South Dakota reservations, and assigned a prosecutor to each reservation tasked with the responsibility of building trust and confidence with tribal members. The efforts produced results. On South Dakota’s largest reservations, the number of criminal prosecutions increased by approximately 131 percent on the Rosebud Reservation, and 82 percent on the Pine Ridge Reservation, while the office’s declination rate dropped dramatically.
Mr. Johnson also led South Dakota’s response to the growing epidemic of human trafficking. During Johnson’s time in office, more than 30 men were prosecuted for human trafficking. Of that number, there was more life sentences handed down in the District of South Dakota than any other federal district in the country. South Dakota also leads the nation in the number of men who have received federal mandatory minimum sentences for attempting to purchase sex with a child. Johnson created the state’s first law enforcement human trafficking task force, and in 2014, he convened one of the nation’s largest anti-human trafficking conferences in Sioux Falls, SD. He also personally argued the case of United States v. Jungers to the Eighth Circuit Court of Appeals, obtaining the precedent setting decision that buyers of sex acts with minors are committing crimes of sex trafficking under federal law.On October 12, 2014, Johnson received the prestigious Pathbreaker Award from Shared Hope International for his Anti-Trafficking Leadership. “Brendan Johnson is a force of determination, initiative, and skill that should leave buyers terrified to purchase sex with a minor in South Dakota,” Shared Hope International President and Founder Linda Smith said in announcing the award. “By creating a threshold for buyer accountability, he sets a national precedent that, if applied, will make significant strides in reducing tolerance for purchasing sex with a minor.”
In 2012, Johnson was also selected by Attorney General Holder to serve as one of thirteen United States Attorneys on the Attorney General Advisory Committee (“AGAC”). The AGAC advises the Attorney General on criminal justice matters throughout the nation. Johnson also served on the Department of Justice Terrorism-National Security Subcommittee and the Child Exploitation Subcommittee. He co-chairs the South Dakota Law Enforcement Coordinating Committee and is a member of the Midwest High Intensity Drug Trafficking Area Executive Board.
Mr. Johnson also brought the issue of synthetic drugs to the forefront by raising public awareness across the state, through educational presentations to various groups, organizations, and classrooms. As synthetic drug use was on the rise nationally, in 2012 he held a press conference with law enforcement partners reflecting a shared commitment to take analogue drugs and the people who sell them off the street. Approximately 14 people were prosecuted for this crime under Johnson’s watch. Health care fraud was another area of focus for Johnson, with the creation of a Health Care Fraud Task Force aimed at educating providers, as well as prevention. Another example of how crime does not pay was reflected in the District Office’s Financial Litigation Unit (FLU) collections. FLU is responsible for activities related to the collection of civil judgment debts owed to federal agencies, as well as the collection of restitution. In FY 2013 alone, FLU collected $24.6 million in civil judgments and criminal payments, averaging $2 million per month.
According to the Administrative Office Statistics Division of the U.S. District Courts, the District of South Dakota was ranked among the top 20 most productive Federal District Courts in America in 2013. Also released in the FY 2013 data, the District had the second highest number of criminal trials in the country.
Mr. Johnson’s determined efforts to make South Dakota a safer place were recognized by several organizations. He was honored with the University of South Dakota Women in Law 2013 Attorney of the Year award. Johnson’s nomination by the group was driven by his successful efforts in creating a South Dakota Domestic Violence Coordinating Committee, sponsoring and participating in regional Native American Youth Leadership listening conferences, spearheading the creation of a special domestic violence prosecutor on the Standing Rock reservation, sponsoring a Civil Rights Conference, and bringing human trafficking to the forefront. Also in 2013, the South Dakota Domestic Violence Coordinating Committee chose Johnson as its Prosecutor of the Year, citing his leadership on human trafficking, domestic and sexual abuse, and increasing prosecution rates in these areas.
“It has been an honor to serve as United States Attorney. My goal when I started was to make South Dakota a safer place. I believe that goal has been achieved. But make no mistake, nobody does this job alone, and I’ve had the benefit of great partners. The credit for any accomplishments during my tenure is shared with South Dakota’s law enforcement officers and the career professionals in this office who did great work before I arrived, and will continue to do great work long after I’m gone,” stated Johnson.
Following his resignation, Mr. Johnson will return to private practice in Sioux Falls, South Dakota, where he will establish a new South Dakota office for a national law firm.
U.S. Attorney Attending the White House Summit on Countering Violent ExtremismRead the Press Release
SACRAMENTO, Calif. – United States Attorney Benjamin Wagner is pleased to be in attendance at a Summit on Countering Violent Extremism being hosted by the White House today in Washington, D.C. The Summit will highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, Paris, and Copenhagen. It is expected that Summit participants will include President Barack Obama, Vice-President Joe Biden, Secretary of State John Kerry, Attorney General Eric Holder, and many others deeply involved in the efforts to prevent such acts of violence.
Individual United States Attorney Offices play a role in these efforts, as a critical part of President Obama’s national strategy to prevent violent extremism domestically focuses on partnering on a local level with social service providers, religious leaders, community members and law enforcement agencies to address violent extremism as part of the broader mandate of providing public safety and crime prevention in each of our communities. A focus of the Summit, and of efforts by U.S. Attorneys, is developing ways to empower local communities by raising awareness and providing them with useful information so that they are better equipped to protect young people from the lure of radicalization.
“Protecting our citizens and our communities means more than simply finding effective ways to respond to terrorist incidents,” said U.S. Attorney Wagner. “It requires working hand-in-hand with people of all faiths to help further our understanding and ability to identify and address the various factors that can lead to radicalization and violence. I am honored to participate in this Summit, and I look forward to working with the people of our community at home to carry out this very important work.”
Additional information concerning efforts to prevent violent extremism can be found in an editorial by President Obama, published in today’s edition of the Los Angeles Times.
Two sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Samuel J. Pete, 29, of Youngstown, Ohio, and Patrick A. Groves, 24, of Wheeling, were sentenced today for distributing crack cocaine near a protected location, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Marshall County Drug and Violent Crime Task Force and the Ohio Valley Drug and Violent Crime Task Force revealed that Pete and Groves sold crack cocaine in July 2014 near a protected location. Both task forces are HIDTA-funded initiatives.
The defendants each pled guilty in December 2014 to one count of “Distribution of Cocaine Base Near a Protected Location.” Pete was sentenced today to 60 months in prison. Groves was sentenced today to three years of probation.
Assistant U.S. Attorney Robert McWilliams prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Two Smugglers Sentenced for Leaving A Pregnant Woman to Die in the Otay Mountain WildernessRead the Press Release
SAN DIEGO – Two alien smugglers who left a pregnant woman to die in the rugged Otay Mountain wilderness during an ill-fated border-crossing attempt were sentenced in federal court today for actions that ultimately resulted in her death.
With the woman’s widower and three children in the courtroom, U.S. District Judge Cathy A. Bencivengo sentenced Carlos Hernandez-Palma to 84 months in prison, and Fernando Armenta-Romero to 57 months. Hernandez and Armenta pleaded guilty in October 2014 to Bringing in an Illegal Alien Resulting in Death and Bringing in an Illegal Alien for Financial Gain.
According to court records, the woman’s husband, Baltazar Razo-Barreto, repeatedly pleaded with the smugglers to use their cellular phone to call for assistance when his wife became gravely ill in the craggy, remote terrain. The smugglers refused. Ultimately the husband was forced to leave his wife, Jaqueline Capistran-Ochoa, to seek help, and the smugglers eventually abandoned her.
“These smugglers showed a profound lack of humanity when they refused to call for help and left a dying woman alone in the middle of nowhere,” said U.S. Attorney Laura Duffy. “This tragic case serves as a brutal reminder that attempting to cross into the United States illegally – and putting your faith, hope and future in the hands of mercenaries - is a very dangerous proposition and not worth the gamble. My office will aggressively prosecute those who smuggle illegal aliens into the United States for financial gain, place vulnerable people in grave danger, and needlessly cause deaths.”
On or about December 29, 2013, at approximately 7:10 PM, the Border Patrol Search Trauma and Rescue unit responded to a report of a 32-year-old undocumented alien female abandoned in the Otay Mountain Wilderness near the U.S.-Mexico border in southeastern San Diego County. This is a rugged and isolated area, with limited access to roads and no development.
Border Patrol agents contacted the reporting party, later identified as Razo, who identified himself as the husband of the missing woman. He told the agents that Ms. Capistran had been in medical distress when he left her in the care of others while he sought help.
After an extensive search of the mountainous area over a period of two days, the husband eventually led Border Patrol agents to an area where they discovered Ms. Capistran’s body. According to the medical examiner, Ms. Capistran’s death was attributed to hyperglycemia and ketoacidosis due to diabetes mellitus and hypothermia from environmental exposure. The medical examiner reported that Ms. Capistran was pregnant and estimated the gestational age of the fetus at approximately 11 to 12 weeks.
As indicated in court documents, Mr. Razo and his wife made arrangements with the smugglers in Mexico to be brought illegally into the United States in December 2013. The smugglers identified themselves to Mr. Razo as “CARLOS” (Hernandez) and “ARMENTA.” The smugglers told Mr. Razo that they would smuggle him and Ms. Capistran into the United States in exchange for a total smuggling fee of $12,000.
During their discussion, the smugglers explained that the journey from Mexico into the United States would take 1.5 to 2 days, including frequent breaks. The smugglers added that it was not particularly arduous as the terrain was mostly flat. The smugglers told Mr. Razo that the hardest part was climbing the U.S.-Mexico border fence. Mr. Razo relayed this information to Ms. Capistran. She had developed diabetes after the birth of their second child and was on diabetes medication. They also suspected that she might be pregnant.
Before leaving Tijuana, Mexico, for their journey into the United States, the smugglers took Ms. Capistran for walks around the park to determine whether she was fit to make the trip, especially since she appeared overweight and tired. Ms. Capistran walked with the smugglers through the park, but often grew tired and repeatedly required rest stops. The smugglers argued amongst themselves as to whether she could make the smuggling trek and even tried to recruit others to replace Mr. Razo and Ms. Capistran. Despite their misgivings and given their inability to recruit anyone else willing to pay them $12,000, they decided to take a chance on Mr. Razo and Ms. Capistran. On or about December 26, 2013, Hernandez and Armenta smuggled Mr. Razo and Ms. Capistran into the United States by climbing over the U.S./Mexico boundary fence in Tijuana, Mexico.
Notwithstanding the smugglers’ description of the terrain as mostly flat, the hike was mountainous, covered with large boulders and difficult to traverse. After approximately two days, Ms. Capistran began to slow down and required more frequent rest stops. Ms. Capistran told Mr. Razo that she felt like there was water in her lungs, and she was having a hard time breathing. Soon she was unable to walk at all.
Mr. Razo repeatedly pleaded with the smugglers to seek help and to use their cellular phone. The smugglers refused. They claimed the phone did not work and that it had been destroyed. After the third day, on December 29, 2013, Ms. Capistran was unresponsive. Since the smugglers refused to seek help, Mr. Razo left his wife in the smugglers’ care and hiked into the wilderness on his own. Mr. Razo eventually was able to contact his brother. The brother picked up Mr. Razo and called 911, and dispatchers connected them to the Border Patrol for assistance.
By the time Border Patrol agents and Mr. Razo found Ms. Capistran in the Otay Mountain wilderness, it was too late. Ms. Capistran had been left to die on a trail in the mountains. The smugglers were gone. They had hiked out of the mountains two days before and called Armenta’s brother to pick them up.
In addition to the prison sentences, Judge Bencivengo ordered that CARLOS and ARMENTA each serve a term of three years of supervised release.
DEFENDANTS Case Number: 14CR02766-CAB Fernando Armenta-Romero Age: 43 Carlos Hernandez-Palma Age: 35 CHARGESCount 1: Title 18, United States Code, Section 1324 – Bringing in Illegal Alien Resulting in Death – statutory maximum of death or life imprisonment, a maximum fine of $250,000, a 5-year term of supervised release, and $100 special assessment.
Count 2: Title 18, United States Code, Section 1324 - Bringing in Illegal Alien for Financial Gain – statutory minimum of three years, statutory maximum of 10 years, a maximum fine of $250,000, a 3-year term of supervised release, and $100 special assessment. INVESTIGATING AGENCIESBorder Patrol - Chula Vista Intelligence Division
Two More Florida Telemarketers Plead GuiltyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 18, 2015, Nathan Christian, 31, of Boynton Beach, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Christian was a manager at C&G Marketing Associates, LLC, a Florida corporation that in 2009 defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). Working out of an office building in West Palm Beach, Florida, PTS targeted owners of timeshares throughout the United States. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for May 29, 2015, at 10:00 a.m. Christian will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
In a separate case, United States Attorney Wigginton announced today that on February 18, 2015, Gemma Tzen, 26, of Orlando, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Tzen was a telemarketer for National Solutions and related companies located in Orlando, Florida, corporations that defrauded consumers across the continent using the fictitious names, Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International. National Solutions targeted owners of timeshares throughout the United States and Canada. In various court filings related to the National Solutions scam, the government has alleged that the overall scam bilked over 2,500 consumers out of at least $6 million, including eight victims within the Southern District of Illinois. Sentencing is set for May 29, 2015, at 9:00 a.m. Tzen will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
These prosecutions are two of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Assistant United States Attorneys William Coonan and Michael Hallock.
Three Charged in Fraud SchemeRead the Press Release
HOUSTON – Stefano Guido Vitale, 39, Alan Leschyshyn, 51, and Bree Ann Davis, 38, have been arrested following the return of a federal indictment alleging a conspiracy to commit wire fraud and a conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
The indictment alleges the scheme produced approximately $2.5 million in fraudulently obtained proceeds which the defendants agreed to launder through various bank accounts. The defendants are accused of using and establishing various business entities during their scheme to sell, at a discount, nonexistent commercial accounts receivable.
They allegedly approached factoring companies as sellers of customized gaming vault bundles and presented fabricated invoices as evidence the defendants were owed a certain amount of money for goods provided to another one of their business entities. To establish creditworthiness of these companies and to convince the factoring company the credit risk was minimal, documents were fabricated and/or altered and provided to the factoring company by the defendants, according to the charges.
“Engaging in financial transactions comprised of criminally derived funds in order to conceal the true nature and source of the proceeds is money laundering,” said Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI). “We will continue to work with our federal law enforcement partners to investigate those who engage in fraudulent conduct.”
Vitale and Leschyshyn, of Scottsdale and Cave Creek, Ariz., respectively, will make their initial appearances in Phoenix, while Davis, of Lakewood, Colo., will appear before a U.S. magistrate judge in Denver. They are expected to make appearances in Houston in the near future.
If convicted, they each face up to 20 years in federal prison on each charge.
The criminal investigation was conducted by IRS-CI and the FBI. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Tennessee man sentenced for possession of firearms by a convicted felonRead the Press Release
Evansville – Josh J. Minkler, Acting United States Attorney, announced today that Jacob Roy Hammond, 23, Dover, Tennessee, was sentenced to 180 months (15 years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to two counts of being a felon in possession of a firearm.
Immediately before sentencing Hammond admitted that on February 22, 2014, he was in possession of two loaded firearms that were later determined to have been stolen. The first, a Springfield Arms, model XD, .40 caliber semi-automatic pistol, the second, a Walther, model P22, .22 caliber semi-automatic pistol. Hammond also admitted that he had sustained multiple felony convictions in the state of Tennessee before his possession of these firearms.
On February 22, 2014, agents working with the Evansville United States Marshal Service conducted a fugitive search for Hammond at the request of Montgomery County, Tennessee, law enforcement officials. The defendant had an outstanding warrant in Tennessee for attempted murder after fleeing from local police officers. As a result of their search, the defendant was located in an Evansville hotel parking lot on North First Avenue with the two loaded firearms.
“My office has no tolerance for individuals who choose to break the law and illegally carry firearms,” said Minkler. “Those who do, should plan to spend time in federal prison.”
This case was the result of an investigation by United States Marshal Service, the Evansville Police Department and the Bureau of Alcohol, Tobacco and Firearms.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 3 years of supervised release following Hammond’s release from prison. Hammond must submit to drug testing and treatment while on supervision.
Tarrant County Man Sentenced for Using Drug Money to Purchase PropertyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 61-year-old Colleyville, Texas man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Donald Cagle pleaded guilty on Nov. 19, 2013 to conspiracy to engage in monetary transactions in property derived from the sale of cocaine and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia A. Crone. Cagle was also ordered to pay a fine of $10,000.
According to information presented in court, from May 19, 2008, through April 28, 2010, Cagle knowingly conspired with Jose Vasquez, Sr., a large-scale distributer of cocaine in Texas. Knowing that Vasquez was involved in some form of illegal activity, Cagle financed and purchased real and personal property in Cagle's name or in the names of Vasquez' family members on behalf of Vasquez. Cagle received payments for these properties from Vasquez in cash that had been transported from Richardson, Texas to Cagle in Colleyville, Texas.
Vasquez was indicted by a federal grand jury in Dec. 2010 and pleaded guilty to conspiracy to possess with intent to distribute cocaine in Feb. 2013. He was sentenced to 147 months in federal prison by Judge Crone on Nov. 19, 2014.
This case was investigated by the U.S. Drug Enforcement Administration and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.St. Louis County Area Landscape Company and Its Owner Indicted on Immigration ChargesRead the Press Release
St. Louis, MO – MICHAEL O'HARA, O'HARA LANDSCAPE/LAWN CARE and PRO CARE ENVIRONMENTAL were indicted on visa fraud charges by setting up a shell company to double up on the number of H-2B visa workers.
The H-2B non-immigrant visa program permits employers to hire aliens to come to the United States and perform temporary, non-agricultural services or labor on a one-time, seasonal, peak-load or intermittent basis. There is a set limit on the number of aliens who may receive H-2B visa status during each government fiscal year. The H-2B visa classification requires the Secretary of Homeland Security to consult with appropriate agencies before admitting H-2B non-immigrants.
O’Hara Landscape/Lawn Care, Inc. performs residential and commercial landscaping and lawn care. The main company office is located in the 1000 block of North Lindbergh, St. Louis, Missouri. According to the indictment, Michael O’Hara created Pro Care as a shell company as a means to facilitate and enhance O’Hara Landscape’s access to H-2B visa workers. Pro Care was supposedly an independent landscape and lawn care company, with its own employees, office space (leased from Michael O’Hara), equipment, financing and client list, when in fact Pro Care had none of the above, but simply represented O’Hara Landscape assets as its own. O’Hara falsified statements on behalf of Pro Care in the supporting documentation for temporary labor certifications asserting that Pro Care had a bona fide need for H-2B visa workers, and that the client list of O’Hara Landscape was actually the client list of Pro Care. The H-2B visa workers approved for employment at Pro Care actually worked for O’Hara Landscape, thus allowing Michael O’Hara and O’Hara Landscape access to H-2B visa workers to which they were not otherwise entitled. Finally, the indictment alleges that Michael O’Hara and O’Hara Landscape took steps to conceal from authorities the unlawful nature of Pro Care.
Michael O’Hara, residing in St. Louis County, O’Hara Landscape/Lawn Care, Inc. and Pro Care Environmental, LLC , were each indicted by a federal grand jury on one felony count of conspiracy to commit visa fraud.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Department of Labor, Office of Inspector General. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Social Worker Sentenced for Defrauding Blue Cross Blue ShieldRead 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 Nina Jafari, a licensed clinical social worker, 64, of Amherst, N.Y., who was convicted of health care fraud, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorneys Michael DiGiacomo and Aaron J. Mango, who handled the case, stated that the defendant defrauded Blue Cross Blue Shield of Western New York. Jafari submitted reimbursement claim forms to the insurance provider for services that were not rendered. The Government’s evidence included tape recorded conversations between the defendant and a patient. In those conversations, Jafari instructed the patient not to share any information with Blue Cross Blue Shield regarding dates of service.
The amount that the defendant defrauded the insurance carrier totaled approximately $138,000.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Health Care Fraud Task Force.
Sheepsprings, N.M., Man Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Jeremiah Ray Johnson, 39, an enrolled member of the Navajo Nation who resides in Sheepsprings, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a misdemeanor assault charge.
Johnson was indicted on Aug. 12, 2014, and charged with assault resulting in serious bodily injury. The indictment alleged that Johnson assaulted the victim in San Juan County, N.M, on April 3, 2013.
During today’s proceedings, Johnson pled guilty to an information charging him with a misdemeanor assault charge. Johnson admitted that on April 3, 2013, while at a residence in Sheepsprings, N.M., he punched and stabbed a Navajo man with a knife during a fight. The victim required hospitalization as a result of his injuries.
At sentencing, Johnson faces a statutory maximum penalty of one year in federal prison and a maximum of five years of probation. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Jacob Wishard is prosecuting this case.
Seven Individuals Charged by Complaint WithRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that seven defendants have been charged in four separate criminal complaints with sex trafficking of a minor and conspiracy to sex traffic minors. The charges carry a mandatory minimum penalty of 10 years in prison for each victim, a maximum of life, and a $250,000 fine.
Charged by complaint are:
- Stephen Jones, 27
- Kasandra Weeks, 22
- Leeosha Allen, 21
- Martin Pullin, 23
- Thaddeus Grice, 36
- Maraida Echevarria, 25
- Christian Nartey, 23
In addition, Stephen Jones and Kasandra Weeks are charged with trafficking of an adult through the use of force. Maraida Echevarria and Christian Nartey are charged with transporting a minor across state lines to engage in sex trafficking.
“These defendants stand accused of seeking out and preying upon some of the more vulnerable victims in our community,” said U.S. Attorney Hochul. “Coming from difficult circumstances, victims were lured by the promise of money and drugs, or coerced with violence. Law enforcement will continue its efforts to abolish this modern day form of slavery.”
“It’s a story of threats, intimidation, violence and slavery where young girls are being forced into a world of sex for money,” said James Spero, Special Agent in Charge of HSI Buffalo. “Human trafficking is not something that is happening far away. Young girls and women in your neighborhood are being victimized every day. The threat is everywhere. The allegations in this case are particularly troubling because of the volume of defendants who were accessing these young girls, but it underscores HSI’s commitment to working with our law enforcement partners to search out exploiters who work to victimize very young women and children."
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, between June 2013 and March 2014, the defendants targeted and manipulated seven minor victims and two adult victims, many of whom were at-risk and vulnerable, to engage in prostitution activities.
According to the complaints, some victims were located through social media accounts. Defendant Stephen Jones, meanwhile, went to the Department of Social Services or women shelters and waited until girls appearing young in age came outside. According to the complaint, victims were promised quick money and drugs, and on other occasions, threatened with violence. The victims lived with the defendants at hotels and various houses associated with the defendants.
Regarding the sex trafficking, defendants posted daily advertisements using fake photos for the victims on backpage.com and myprovider.com. One advertisement read: “ITS KRISTEN AND ASHLEY!! Ur 2 favorite young GODDESS up all day READY2play!! :-) CALL NOW!! Victims were taken from the Rochester area to Buffalo, Syracuse, Albany, Utica, and New Jersey to engage in prostitution activities and avoid detection by law enforcement. To keep control over the victims, the defendants kept the money victims earned from prostitution activities, and limited the victims’ communications with family and friends.
U.S. Attorney Hochul also provided warnings to both children and parents. “The best protection lies in recognizing the scope of the problem. Children and parents should remember common sense tips – all of which begin with ‘T.’”
“Young people, watch your TECH, including internet-connected phones, computers, on-line games and social media sites. The THREAT does not come solely from men, women also may be predators and lookouts for victims. Watch your TALK – strangers look and listen for vulnerable children. TRUST your gut, and always TURN to parents, counsellors and loved ones at any sign of danger.”
“For parents, recognize the THREAT, TALK to your child, and be aware that traffickers most often TARGET the young, lonely, alienated or those who have no one to protect them.”
The criminal complaints are the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigation, under the direction of Special Agent in Charge James C. Spero, the Federal Bureau of Investigation, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Brighton Police Department, under the direction of Chief Mark Henderson, and the Gates Police Department, under the direction of Chief James Vanbrederode. Additional assistance provided by the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Savannah Business Owner Pleads Guilty to $2 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a now-defunct Savannah, Mo., business pleaded guilty in federal court today to a scheme to defraud U.S. Bank in St. Joseph, Mo., of more than $2 million.
Wilbur L. Duncan, 71, of Savannah, waived his right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges him with four counts of loan application fraud.
Duncan was the owner of Duncan Agri Service, which is no longer in business. By pleading guilty today, Duncan admitted that he made materially false statements on inventory reports that were used by U.S. Bank to secure a line of credit for his business. Duncan admitted that he overvalued property or security and falsely represented the value of business inventory on those reports.
Duncan made dozens of false statements regarding the inventory over the life of the loans. The inventory was substantially less that Duncan reported and U.S. Bank would not have continued to extend a line of credit, or would have substantially reduced the line of credit to Duncan Agri Service, had the bank known of the actual level of inventory.
As a result of this scheme, Duncan defrauded U.S. Bank in the amount of $2,160,085 and created a loss of $1,459,455 for the bank after liquidation of Duncan Argi Service assets.
Under the terms of today’s plea agreement, Duncan must forfeit to the government residential property in Gravois Mills, Mo., a 2008 Chevrolet pickup truck, a 2008 Chevrolet Trailblazer, a 2000 Xpres 16-foot aluminum bass boat, a 1996 Chris 27-foot fiberglass boat and a 2000 Mercury motor.
Under federal statutes, Duncan is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by the FBI.
San Carlos Man Sentenced to 15 Years for Second Degree MurderRead the Press Release
PHOENIX– On Feb. 9, 2015, Ricardo Lee Polk, 20, a member of the San Carlos Apache Indian Community, was sentenced by U.S. Senior District Judge Roslyn O. Silver to 180 months in prison as a result of pleading guilty on Sept. 26, 2014, to second degree murder.
On Jan. 6, 2011, Polk was with the victim and others on the San Carlos Apache Indian Community. Without apparent provocation, Polk recklessly pointed a handgun at the victim and fired one time from close range striking the victim in the head and causing her death. Polk fled the area, but was later arrested after a thorough investigation.
The investigation in this case was conducted by Bureau of Indian Affairs. The prosecution was handled by Thomas Simon, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-01202
RELEASE NUMBER: 2015-018_Polk
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Rock Hill Gang Member Pleads Guilty to Federal Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that DeMario Ontrey Ware, age 26, of Rock Hill, South Carolina pled guilty today in federal court. Ware pled guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). 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 on the morning of May 22, 2014, officers with the Rock Hill Police Department Violent Crimes Unit were patrolling when they noticed Ware, a known gang member, on the front porch of a residence on Hickory Lane. Officers knew that Ware had an outstanding warrant for his arrest, so they approached him and placed him under arrest for that warrant. Officers located a loaded Bryco .380 caliber handgun in Ware’s front pocket while searching him incident to his arrest. Ware is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for armed bank robbery and his prior state convictions for discharging a firearm into a dwelling and criminal conspiracy to commit assault and battery 1st degree.
Mr. Nettles stated that Ware faces a statutory maximum sentence of ten (10) years, a fine of $250,000 and a term of supervised release of up to three (3) years following the term of imprisonment. However, if Ware were found to have three (3) prior violent felony convictions and/or serious drug convictions, he would be deemed an armed career criminal under federal law and face a statutory mandatory minimum of fifteen (15) years imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of up to five (5) years following the term of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rock Hill Police Department, and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####River Forest Man Sentenced to 12 1/2 Years in Prison for Sending Threats to Kill Chicago Politicians, Local Police, and OthersRead the Press Release
CHICAGO — A River Forest man was sentenced today to 12 ½ years in federal prison for mailing and emailing threatening communications to kill Chicago area politicians and River Forest police officers, as well as oil executives in Texas and California. A jury found the defendant, RONALD HADDAD, Jr., 39, guilty in April 2014 of all 30 counts against him ― 28 counts of mailing threats and two counts of emailing threats. U.S. District Judge Virginia Kendall imposed the sentence today in Federal Court.
“This is a very serious case, with very real victims,” said Judge Kendall in imposing the sentence, “the response was a tremendous drain on the City.” The judge also ordered Haddad to serve three years of supervised release following his sentence. Haddad is in federal custody, and since he was arrested and charged in 2009, he underwent several mental competency evaluations.
“From December 2007 through January 2009, [Haddad] carried out an unrelenting campaign to terrorize public officials and private citizens in Chicago and across the country. [His] threat letters promised death to anyone who failed to obey him . . . . Terror is what [he] sought, and that is what he achieved,” the government argued in a sentencing memo.
The evidence at trial showed that Haddad sent multiple threatening communications in three waves starting in Dec. 2007, again in June and July 2008, and again in January 2009. The first group of letters, addressed to individuals such as former Chicago Mayor Richard M. Daley and former Chicago Ald. Bernard Stone, contained white powder. The letters in June and July 2008 contained a brown substance, and the letters and packages in January 2009 contained an oily substance or shotgun shells that appeared to be rigged to explode. None of the substances or shells proved to be harmful but witnesses who opened the letters and packages testified that they were fearful when they opened them.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Chicago Police Superintendent Garry F. McCarthy. The government was represented by Assistant U.S. Attorney William Ridgway.
Randallstown Man Sentenced to 5 Years in Prison in Counterfeit Check Cashing and Credit Card Skimming SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jimoh Babatunde Aderomilehin, age 24, of Randallstown, Maryland, today to five years in prison followed by five years of supervised release for bank fraud conspiracy and aggravated identity theft. Judge Bennett also ordered Aderomilehin to pay restitution of $468,534.42.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea, from September 2010 to March 2011, Aderomilehin deposited counterfeit checks into bank accounts of his co-conspirators and withdrew the funds before the checks were returned as fraudulent. Generally, Aderomilehin gave the funds to a co-defendant and received a small portion as his share. Aderomilehin was recruited into the scheme through other participants and in turn, he recruited others to allow the group to use their bank accounts to deposit checks. After the fraud was discovered by the bank, they were supposed to claim their accounts had been used without their knowledge so that the bank would bear the loss.
In addition to this scheme, Aderomilehin became aware that two other co-conspirators were operating a credit card fraud scheme in which workers in local restaurants and hotels were "skimming" credit cards. An associate was re-encoding the credit cards with the skimmed numbers. Initially, Aderomilehin drove others around as they used the counterfeit credit cards. Soon Aderomilehin began using the counterfeit credit cards to purchase items himself. Eventually, the associate sent Aderomilehin cards with his name on them, but with stolen numbers.
Later, Aderomilehin learned how to create the counterfeit credit cards himself. He recruited restaurant employees to "skim" credit cards. He then used the numbers they stole to create counterfeit credit cards. He and others traveled to North Carolina, Pennsylvania, Georgia and other areas to use the counterfeit credit cards.
During the course of both conspiracies involving the counterfeit checks and re-encoded credit cards, Aderomilehin and his co-conspirators obtained or attempted to obtain between $400,000 and $1 million from, or using the identities of, more than 250 victims.
Eight defendants have pleaded guilty to date to their participation in the schemes and have been sentenced to up to 56 months in prison.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
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’s 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.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Portsmouth Woman Sentenced for Role in Health Care FraudRead the Press Release
NORFOLK, Va. – Doretha Selby-Diggs, age 41, of Portsmouth, was sentenced today to five years in prison, followed by a three-year term of supervised release for her role in a health care fraud conspiracy. Ms. Selby-Diggs was also ordered to pay $286,650 in restitution to the Virginia Department of Medical Assistance Services.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigations, Washington, D.C. Field Office, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith.
Selby-Diggs pled guilty to the charge on November 25, 2014. According to court documents, Selby-Diggs worked for Progressive Counseling Services, LLC, as a qualified mental health professional responsible for providing mental health support services to Medicaid-eligible clients. In reality, Selby-Diggs did not provide such services, but rather simply signed false progress notes in order to support claims for billing to Medicaid. Specifically, court records indicate that Selby-Diggs signed progress notes that listed dates, times, and locations that conflicted with other progress notes and contained descriptions of counseling sessions that were identical to the descriptions provided in other progress notes submitted by other counselors. In one specific example, court documents indicate Selby-Diggs signed a progress note detailing a counseling session that she purportedly provided to a Progressive client here in Virginia, at a date and time when, in reality, she was on a Carnival cruise. Based on this false and fraudulent note, Medicaid reimbursed Progressive $182.00. In total, Selby-Diggs personally signed 1,575 of these progress notes causing Medicaid to reimburse Progressive approximately $286,650. The total amount Medicaid overbilled Progressive as a result of all of its activities was approximately $2,483,752.00, according to the court documents.
This case was investigated by the FBI’s Norfolk Field Office, the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office, Homeland Security Investigations, and the Internal Revenue Service, Criminal Investigations Division. Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty are prosecuting the case.
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-137.Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Barbaranne Siebert, 48, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for her mother, after her mother’s death in December 2010 until July 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $44,788.20.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a 3‑year period of supervised release, restitution to the government of $44,788.20, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Petaluma Slaughterhouse Owner Pleads Guilty to Conspiring to Distribute Adulterated MeatRead the Press Release
SAN FRANCISCO – Jesse “Babe” Amaral, Jr., owner of the now-defunct Petaluma slaughterhouse Rancho Feeding Corporation, pleaded guilty on February 18, 2015 to conspiracy to distribute adulterated, misbranded, and uninspected meat, announced United States Attorney Melinda Haag and Lori Chan, Special Agent in Charge of the U.S. Department of Agriculture (USDA), Office of Inspector General, Investigations, Western Region.
In pleading guilty, Amaral, 77, admitted that from 2012 through January 10, 2014, he knowingly and with intent to defraud directed Rancho employees to process for human consumption cattle that had been condemned by the USDA veterinarian; to circumvent inspection procedures for certain cattle exhibiting symptoms of cancer eye; and to process these cancer eye cattle for human consumption without full inspection. Amaral further admitted knowingly causing Rancho to submit fraudulent cattle invoices to farmers between at least 2012 and January 2014.
Amaral was indicted on August 14, 2014, along with Rancho employees Eugene Corda, 66, and Felix Cabrera, 56. All were charged with fraudulent distribution of adulterated, misbranded, and uninspected meat, in violation of the Federal Meat Inspection Act (FMIA), 21 U.S.C. §§ 610(c) & 676(a); conspiracy to commit the same, in violation of 18 U.S.C. § 371; and mail fraud conspiracy in furtherance of the same scheme, in violation of 18 U.S.C. § 1349. Amaral was also charged with mail fraud, in violation of 18 U.S.C. § 1341, and mail fraud conspiracy, in violation of 18 U.S.C. § 1349, in a separate scheme to defraud farmers by means of false invoicing.
Arising out of the same scheme, Robert Singleton, 78, owner of Petaluma-based Rancho Veal Corporation, was charged by Information on August 18, 2014, with one count of fraudulently distributing adulterated, misbranded, and uninspected meat in violation of the FMIA.
Singleton pleaded guilty to the Information on August 22, 2014. In so doing, he admitted knowingly participating in a scheme by which Rancho employees were instructed to carve “USDA Condemned” stamps out of cattle carcasses, to conceal from USDA inspection cows showing signs of cancer eye by switching the diseased heads with healthy heads, and to process the adulterated and uninspected carcasses for human consumption. He also admitted participating in the scheme to fraudulently invoice farmers.
Cabrera, Rancho’s “kill floor” supervisor, pleaded guilty to conspiracy to fraudulently distribute adulterated, misbranded, and uninspected meat on November 26, 2014. Corda, Rancho’s yardman, pleaded guilty on October 10, 2014, to fraudulently distributing adulterated, misbranded, and uninspected meat as well as aiding and abetting such distribution in violation of the FMIA.
Amaral’s sentencing hearing is scheduled for July 1, 2015, before U.S. District Judge Charles R. Breyer. A status hearing is scheduled for Singleton, Cabrera, and Corda on August 12, 2015, also before Judge Charles R. Breyer.
The maximum statutory penalties for conspiracy to distribute adulterated meat are 5 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and a $100 special assessment. The maximum statutory penalties for fraudulent distribution of adulterated meat are 3 years’ imprisonment, 1 year supervised release, a $10,000 fine, and a $100 special assessment. The maximum statutory penalties for mail fraud and mail fraud conspiracy are 20 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and a $100 special assessment. Notwithstanding these statutory maximums, any sentence imposed by the court following conviction would take into consideration the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Hartley M.K. West is the Assistant U.S. Attorney who is prosecuting this case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by agents of the USDA’s Office of Inspector General, Investigations and USDA’s Food Safety Inspection Service, Office of Investigation, Enforcement and Audit, Compliance and Investigations.
Owner of Local Roofing Company Pleads Guilty to Concealing Money from IRSRead the Press Release
BOSTON – The owner of a Norwood roofing company pleaded guilty today to hiding thousands of dollars of his business income by intentionally filing false tax returns with the Internal Revenue Service.
Michael Olen, 60, pleaded guilty to making and subscribing a materially false tax return after being charged via an Information in January 2015. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for May 27, 2015.
Olen owned and operated O’Lyn Contractors, Inc., a roofing service based in Norwood, Mass. O’Lyn’s customers generally paid for roofing services by check, and Olen used a local tax preparer to draft his business and personal tax returns based on business revenue for the year. But in tax year 2008, Olen hid a substantial amount of his business income from his tax preparer by diverting customer payments to his personal accounts. Consequently, the tax preparer unwittingly entered false figures for O’Lyn’s business income, and Olen’s personal income, on the relevant tax returns. In 2008, Olen hid 97 payments in this manner, diverting 78 of them to his personal bank accounts and cashing 19 of them at a local check cashing service. In total, Olen underreperted his 2008 income from O’Lyn by $207,567. Moreover, Olen used the same method to hide income during tax years 2004 – 2007. Over five years, Olen hid in total $1,184,927 from the Internal Revenue Service.
The charging statute provides a sentence of no greater than three years in prison, three years of supervised release, a fine of $100,000, paying for the cost of his prosecution, and paying restitution to the Internal Revenue Service for the cumulative tax losses. 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 and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Orlando Man Charged with Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Dante S. Giovannetti (50, Orlando) with five counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count.
According to court documents, Giovannetti solicited four individuals to provide him with approximately $700,000 that Giovannetti claimed would be pooled, placed into a trading account, and used to trade in E-mini S&P 500 futures contracts. To induce his investors, Giovanneti represented that he had experience in earning profits from trading S&P futures, and provided investors with statements that showed large trading profits that Giovannetti claimed to have earned. Contrary to his representations, Giovannetti did not invest the monies in S&P futures, but instead used significant portions of the investors' funds for his personal benefit. To conceal his fraud, he provided his victims with false trading statements that had been doctored to show tens of millions of dollars in fictitious profits from trading S&P 500 futures contracts and more than $53 million in cash on deposit as of July 31, 2014.
After Giovannetti failed to return their money, his investors complained to the National Futures Association, which commenced an emergency examination of one of Giovannetti’s companies on October 14, 2014. On October 30, 2014, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil action against Giovannetti and several of his entities in federal court in Orlando. A statutory restraining order was entered against Giovannetti and his entities that froze their assets, granted expedited discovery, and prohibited the destruction of documents. Giovannetti failed to comply with the orders of the Court, was held in contempt, and a warrant was issued for his arrest for his contempt in the CFTC civil case in November 2014. On November 21, 2014, Giovannetti was charged in a sealed criminal complaint in the Middle District of Florida.
After his scheme was uncovered, Giovannetti fled to Canada. On January 15, 2015, he was deported back to the United States. The following day, Giovannetti had his initial appearance on the criminal complaint in federal court in Seattle, Washington. He is currently detained and in the process of being transported to this District by the United States Marshals Service.
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 State of Florida’s Office of Financial Regulation, with assistance from the United States Marshals Service and the U.S. Commodity Futures Trading Commission. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Oregon's United States Attorney Joins President Obama at White House Summit on Countering Violent ExtremismRead the Press Release
PORTLAND, Ore. – United States Attorney Amanda Marshall is pleased to be in attendance at a Summit on Countering Violent Extremism being hosted by the White House today in Washington, D.C. The Summit will highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, Paris, and Copenhagen. It is expected that Summit participants will include President Barack Obama, Vice-President Joe Biden, Secretary of State John Kerry, Attorney General Eric Holder, and many others, from all over the world, deeply involved in the efforts to prevent such acts of violence.
The Summit is focused on developing an action agenda to address the rise in violent extremism by bringing together key stakeholders from national and local governments around the world, the private sector, civil society, and religious and youth leaders by identifying and addressing the conditions that can lead individuals to commit violent actions, as well as ways to prevent and intervene where appropriate – both of which are key elements of President Obama’s comprehensive national security strategy, and elements of the U.S. Attorney's strategy here in Oregon.
Individual United States Attorneys’ offices play a role in these efforts, as a critical part of President Obama’s national strategy to prevent violent extremism domestically focuses on partnering on a local level with social service providers, religious leaders, community members and law enforcement agencies to address violent extremism as part of the broader mandate of providing public safety and crime prevention in each of our communities. A focus of the Summit, and of efforts by U.S. Attorneys, is developing ways to empower local communities by raising awareness and providing them with useful information so that they are better equipped to protect young people from the lure of radicalization.
Recognizing that preventing the spread of violent extremism requires localized, specialized, and expanded efforts, things that the U.S. Attorneys’ offices – along with many of our federal, state and local law enforcement partners – have been fully committed to for several years, and we continue to strive for enhanced open communication and transparency in Oregon.
“Protecting our citizens and our communities means more than finding ways to respond to terrorist incidents,” said U.S. Attorney Amanda Marshall. “It requires working hand-in-hand with diverse communities to help further our understanding and ability to identify and address the various factors that can lead to radicalization and violence. My office will continue to fight for those who are threatened because of their ethnicity, race, religion, gender or sexual orientation, and against all violent extremists who threaten the very core of Oregon’s culture of celebrating diversity and renouncing oppression. I am honored to participate in this Summit, and I look forward to working with Oregonians to carry out this very important work.”
Additional information concerning efforts to prevent violent extremism can be found in an editorial by President Obama, published in today’s edition of the Los Angeles Times.
Marshall was one of five U.S. Attorneys who were invited to attend the Summit.
Orange County Brothers Guilty of Killing Bottlenose Dolphin in Cow BayouRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Two Bridge City, Texas brothers have pleaded guilty to federal wildlife violations, announced U.S. Attorney John M. Bales today.
Cory James Moseley, 23, and Cade Ryan Moseley, 18, pleaded guilty to taking a marine mammal in United States waters on Feb. 17, 2015, before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, on July 26, 2014, Cory Moseley and Cade Moseley were fishing on Cow Bayou near Orangefield, Texas, when they spotted two bottlenose dolphins stranded in the bayou. They shot at the dolphins with a compound bow and Cade Moseley hit one of the dolphins. The dolphin swam away but was mortally wounded. Wildlife agents were notified by a fisherman that there was a dead dolphin in the bayou. The deceased dolphin was recovered and an investigation resulted in federal charges against the Moseley brothers. The second dolphin was located in the bayou and rescued by wildlife agents and SeaWorld San Antonio personnel.
The defendants each face up to one year in federal prison and a $20,000.00 fine. A sentencing date has not been set.“It is disheartening that individuals would kill a dolphin for the sport of it, especially in today’s age,” said Tracy Dunn, Assistant Director for NOAA OLE. “And, without the determination and skills of the NOAA investigator, supported by CGIS and TPWD, this unnecessary death may have gone unsolved."
“The Coast Guard is committed to providing the highest level of service to protecting our nation's valuable natural resources,” said Rear Admiral Kevin S. Cook, Commander, Eighth Coast Guard District. “The continued cooperative sharing of professional knowledge and expertise among our inter-agency partners will ensure perpetrators of such horrible acts are held accountable."
“We are extremely pleased that this case is being resolved,” said Colonel Craig Hunter, Texas Parks and Wildlife Department. “The dedication, professionalism, and teamwork demonstrated by investigators from NOAA, CGIS, and TPWD proved to be successful in solving this egregious criminal act. The U.S. Attorney’s Office is to be commended for their role and hopefully this prosecution will deter others from illegally taking our natural resources for their personal enjoyment.”
This case was investigated by the NOAA Office of Law Enforcement, U.S. Coast Guard Investigative Service and the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Nine Individuals Charged with Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Edward Mighty, Seymour Brown, Andre Taylor, Ricardo Bailey, Robert Wilson, Kenneth Harper, Desmond Bice, and Christopher, all of Rochester, NY, were charged by criminal complaint with conspiracy to possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, use of a telephone to facilitate drug trafficking distribute marijuana. Defendants Mighty, Brown, Taylor, Wilson, Harper, Bice, and Samuels were also charged with possession of a firearm in furtherance of a drug trafficking crime and conspiracy to possess firearms in furtherance of drug trafficking. In addition, Winifredo Gonzales, of Brooklyn, NY was charged with conspiracy to possess with intent to distribute five kilograms or more of cocaine and possession of firearms in furtherance of a drug trafficking crime.
The cocaine distribution conspiracy charge carries a maximum sentence of life in prison, and a $10,000,000 fine. The possession of a firearm in furtherance of a drug trafficking charge carries a minimum sentence of five years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the complaint, Edward Mighty is one of the leaders of a Rochester-based drug trafficking organization. Mighty obtained kilogram quantities of cocaine from Winifredo Gonzales in Brooklyn. The cocaine was transported to Rochester and processed, re-packaged, and distributed in various quantities of both powder and crack cocaine through multiple sellers in the Rochester area.
Mighty had individuals who worked for the drug trafficking organization utilize their cell phones to conduct the drug business including Andre Taylor, Seymour Brown, and Ricardo Bailey. Mighty’s organization supplied numerous upper and mid-level cocaine distributors, including Robert Wilson and Wilson’s partner Kenneth Harper. Wilson further supplied, among other individuals, Desmond Bice. Christopher Samuels worked with Bice in further distributing the cocaine.
On February 10, 2015, officers executed a search warrant and arrested Winifredo Gonzales at a residence in Brooklyn. Officers recovered 17 kilograms of cocaine and two handguns, including an UZI 9mm pistol. Officers also seized approximately $70,000 in U.S. currency.
On that same date, law enforcement officers monitored the transport of cocaine from Brooklyn to Rochester. Officers also monitored a vehicle as it traveled from Brooklyn to Rochester, the center of the Rochester drug distribution activities. The car arrived at 54 Strong Street where officers executed another search warrant. They also executed a search warrant at 319 Alphonso Street in Rochester.
Edward Mighty and Ricardo Bailey, who was the driver of the car, were taken into custody. A later search of the car recovered one kilogram of cocaine. Andre Taylor fled on foot running through the snow-covered backyards and was taken into custody a short distance away. Inside 54 Strong Street, officers recovered a Glock .40 caliber semi-automatic handgun loaded with 11 rounds of live ammunition, 13 rounds of live .357 caliber ammunition, Western Union receipts, multiple cell phones, drug distribution paraphernalia, and $3,941 in U.S. currency.
Seymour Brown was arrested at his residence at 319 Alphonso Drive in Rochester. During the search of that location, officers seized multiple cell phones, a loaded .357 caliber handgun, and $3,147 in U.S. currency. Robert Wilson and Kenneth Harper were arrested at a residence at 418 Lyell Avenue.
Two more search warrants were executed at 295 Smith Street and 1702 Empire Boulevard in Rochester. During the searches, officers recovered 29 bags of crack cocaine, three handguns, dozens of rounds of ammunition, multiple cell phones including a radio frequency detector cell phone, drug distribution paraphernalia, over $10,000 in U.S. currency.
Desmond Bice was arrested at 35 Portland Parkway, Rochester at which time officers found 28 grams of crack cocaine, three handguns, dozens of rounds of ammunition, multiple cell phones drug distribution paraphernalia and $3,270 in U.S. currency.
Samuels was arrested at 75 Floverton Street in Rochester where officers found 73 grams of cocaine, marijuana, two handguns, a dozen rounds of ammunition, multiple cell phones, drug distribution paraphernalia, and $227 in U.S. currency.
The criminal complaint is the culmination of a joint federal and state wiretap investigation on the part of the Organized Crime Drug Enforcement Task Force, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Newcomb, N.M., Man Pleads Guilty to Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Michael Randolph, 31, an enrolled member of the Navajo Nation who resides in Newcomb, N.M., pleaded guilty this morning to an aggravated sexual abuse charge. Under the terms of his plea agreement, Randolph will be sentenced to a term of incarceration within the range of 96 to 144 months followed by a term of supervised release to be determined by the court. Randolph also will be required to register as a sex offender.
Randolph was arrested on Dec. 30, 2013, on a criminal complaint alleging that he sexually abused a child under the age of 12 years on Dec. 19, 2013, within the Navajo Indian Reservation in San Juan County, N.M. Randolph subsequently was indicted on that same charge.
During today’s hearing, Randolph entered a guilty plea to a felony information charging him with aggravated sexual abuse. Randolph admitted to assaulting the victim by intentionally touching the victim’s genitalia with his hands and fingers.
Randolph remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
New York Man Residing in the Hamptons Pleads Guilty to Obstructing Internal Revenue Service for Concealing Swiss Bank AccountsRead the Press Release
A Montauk, New York, resident pleaded guilty today in the U.S. District Court in the Eastern District of New York to corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division announced today.
According to court documents and statements, Georges Briguet, a naturalized U.S. citizen, had Swiss financial accounts at UBS AG and at Clariden Leu Ltd., which was a wholly owned subsidiary of Credit Suisse AG. He opened the UBS account in Switzerland in or around 1992, with approximately 7 million Swiss francs. In 2008, he transferred the UBS funds to a numbered account at Clariden Leu in Switzerland, which he maintained until at least 2011. For tax years 2001 through 2010, Briguet filed false federal income tax returns on which he failed to report his foreign financial accounts, failed to report any income earned thereon and failed to pay any taxes on such foreign income.
In addition, Briguet was interviewed by an IRS revenue agent who was conducting a civil audit. During the interview, Briguet falsely stated that he had no foreign income and no foreign financial accounts. He then later repeated those false statements to an IRS special agent who interviewed Briguet as part of a criminal investigation.
At sentencing, Briguet faces a statutory maximum sentence of three years in prison and a $250,000 fine. As part of his plea agreement, Briguet has agreed to pay the IRS restitution in the amount of $169,935.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS - Criminal Investigation who investigated the case, and Trial Attorneys Mark Kotila and Jeffrey Bender and Senior Litigation Counsel Mark Daly of the Tax Division, who are prosecuting the case. She also thanked the U.S. Attorney’s Office in the Eastern District of New York for their assistance.
Navajo, N.M., Man Sentenced to Federal Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Harold Anthony Nez, 36, an enrolled member of the Navajo Nation who resides in Navajo, N.M., was sentenced today in federal court in Santa Fe, N.M., to 15 months in federal prison followed by three years of supervised release for his federal assault conviction.
Nez was arrested on Feb. 20, 2014, on a criminal complaint alleging that he assaulted his intimate partner, a Navajo woman, on Jan. 16, 2014, by driving into her with a vehicle and pinning her left leg against a fence. The assault occurred in Navajo in McKinley County, N.M. Nez subsequently was indicted and charged with assault with a dangerous vehicle and assault resulting in serious bodily injury.
On Nov. 10, 2014, Nez pled guilty to an assault resulting in serious bodily injury charge. In his plea agreement, Nez admitted assaulting his intimate partner by hitting her with a vehicle. Nez admitted that as a result of the assault, the victim suffered extreme physical pain and severe bruising to the leg that required medical attention.
This case was investigated by the Window Rock, Arizona office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multiple Arrests in Massive Two-City Enforcement ActionRead the Press Release
LAREDO, Texas - A federal indictment has been partially unsealed following the arrest of 17 defendants in the Laredo and Dallas areas on charges related to a long-term investigation into a drug and money laundering conspiracy, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA).
“Nothing is more important than the safety and security of our communities,” said Arabit. “DEA, along with our federal, state and local law enforcement partners in Laredo and throughout Texas, will continue to coordinate and work closely together and pursue those individuals who jeopardize our neighborhoods through their smuggling and distribution of illegal and dangerous drugs.”
The indictment was returned under seal Feb. 3, 2015, and partially unsealed as to each defendant upon their arrest today. It remains sealed as to those charged but not as yet in custody.
Those arrested in the Laredo area included Jaime Enrique Montalvo-Ruiz, 44, Felipe Gonzalez-Flores, 46, Jose Angel Trejo, 42, Salvador Saldaña-Medrano, 36, Baltazar Ibarra Cardona, 54, Ricardo Ramirez, 33, Raquel Margarita Ramos Jimenez, 43, and Leslie Bernice Trejo, 22, all of Laredo; and Victor Hugo Trejo Nava, 41, Joshua Sanchez, 32, and Erika Alvarez, 38, all of Nuevo Laredo, Tamaulipas, Mexico.
They are expected to make their initial appearances before U.S. Magistrate Judge Scott Hacker tomorrow morning, at which time the government expects to request their continued detention pending further criminal proceedings.
Arturo Lozano, 47, of Grand Prairie, and Leocadio Ruiz, 47, of Cedar Hill, were arrested in the Dallas area. They made their
initial appearances in Dallas today and are expected to appear in Laredo in the near future.Four others are currently in custody on unrelated charges - Erasmo Trejo-Nava, 43, and Gerardo Moreno Recio, 46, both of Laredo; and Juan Manuel Vargas-Aguilar, 45, and Mario Alberto Rodriguez, 28, both of Mexico. They are also expected to be transported to Laredo to face the new charges.
The indictment alleges the defendants were members of a drug and money laundering organization from on or about June 2011 through June 2013. They are charged with various federal violations, including engaging in a conspiracy to possess with intent to distribute and possession with intent to distribute multiple kilogram quantities of marijuana as well as a conspiracy to launder drug proceeds.
The indictment alleges that the Erasmo Trejo-Nava drug trafficking organization, which operated out of the Laredo area, was engaged in a conspiracy to distribute bulk quantities of marijuana from the Laredo area for distribution in the Dallas area. The indictment also alleges the organization was involved in a money laundering conspiracy in conjunction with the drug conspiracy. As such, large sums of money were allegedly transported from the Dallas area - the organization’s point of drug distributions - to Laredo and then Nuevo Laredo, Mexico, according to the indictment.
The defendants allegedly procured multiple kilogram quantities of marijuana from the Republic of Mexico and illegally imported into the United States for further transportation by tractor trailer and other means. The indictment also alleges the profits from the sale and distribution of the marijuana were collected from drug distributors in the Dallas area and were transported to the Laredo area. The defendants then allegedly arranged for the transportation of those proceeds back to the Republic of Mexico. According to the charges, the proceeds were used to conduct financial transactions designed in whole or in part to conceal and disguise the nature, ownership, control and source of the drug proceeds when purchasing real estate, materials and services.
The indictment is the culmination of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the DEA and IRS-Criminal Investigation with assistance from Homeland Security Investigations, Laredo Police Department and Zavala County Sheriff’s Office. Numerous agencies assisted with the arrests to include U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Webb County Sheriff’s Office, Webb Country Constable’s Office, U.S. Border Patrol and Customs and Border Protection Air & Marine. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Montgomery County, Pennsylvania, Man Sentenced to 87 Months in Prison for Three Bank Robberies and Separate Assault ChargeRead the Press Release
CAMDEN, N.J. – A Fort Washington, Pennsylvania, man was sentenced today to 87 months in prison for his role in three bank robberies in Pennsylvania, U.S. Attorney Paul J. Fishman announced.
On March 4, 2014, Kyle Wilson, 23, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with three counts of bank robbery. In June 2012, Wilson pleaded guilty before Judge Rodriguez to a separate information charging him with traveling from Pennsylvania to New Jersey to commit an aggravated assault in furtherance of an extortion scheme. All three of the bank robberies to which Wilson pleaded guilty occurred after his June 2012 plea while he was released on bail pending sentencing. Judge Rodriguez imposed the sentence today in Camden federal court.
Although the three bank robberies occurred in Pennsylvania, Wilson waived his right to contest venue so that all of his pending criminal charges – the robberies and the prior aggravated assault conviction – could be resolved in the District of New Jersey.
According to documents filed in this case and statements made in court:- On March 6, 2013, Wilson entered a Citizens Bank located inside a Giant Store in Montgomeryville, Pennsylvania. He approached the teller and handed him a withdrawal slip that read “the gun will go off, give me some money.” The teller handed Wilson cash, and Wilson left the store.
- On March 11, 2013, Wilson entered a PNC Bank located inside a Giant Store in Plymouth Meeting, Pennsylvania. He approached the teller and handed him a note. The teller then heard Wilson warn him not to “hit any buttons” and demand money. The teller handed Wilson cash and Wilson left the store.
- On March 14, 2013, Wilson entered a First Niagara Bank in Lower Providence Township, Pennsylvania. He approached the teller, displayed what appeared to be a small black gun, and demanded money. The teller handed Wilson cash, and Wilson left the store.
In addition to the prison term, Judge Rodriguez sentenced Wilson to serve three years of supervised release and pay $8,444 in restitution.
Defense counsel: Stanley O. King Esq., Woodbury, New Jersey
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia; the Department of Labor-Wage and Hour Division, under the direction of Mark Watson, regional administrator; Naval Criminal Investigative Service, under the direction of Special Agent in Charge Leo S. Lamont, Northeast field office; and the Air Force Office of Special Investigations, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Andrew Bruck of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
15-062Missouri City Woman Charged with Stealing More Than $1 Million from Former EmployerRead the Press Release
HOUSTON - Michelle Robyn Freytag, 47, has been arrested following the return of a 20-count federal indictment alleging wire fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.
Freytag, of Missouri City, is expected to make her initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m. today in Houston.
The indictment, returned Feb. 11, 2015, alleges Freytag was hired in April 2009 to be the executive assistant for a Houston businessman. Freytag was hired in April 2009, according to the indictment. As early as August 2009, she had allegedly begun misusing her position and her exposure to her employer’s credit card and banking information to arrange for credit cards to be assigned in her name, but under his accounts in order to make unauthorized charges.
The indictment further alleges Freytag also began using credit cards assigned to her employer, his spouse and his businesses and then arranged for the unauthorized charges to be paid from the man’s bank accounts. The indictment sets forth a sampling of the alleged fraudulent spending by Freytag, which includes cash advances, commercial air travel for friends and family members, household items such as thousands of dollars in furniture and a 75” Samsug television as well as charter air travel on a private jet based out of Houston.
In total, the indictment alleges Freyag stole approximately $1.3 million prior to being terminated in January 2014.
If convicted, Freytag faces up to 20 years in federal prison on each of the 18 counts of wire fraud. The aggravated identity theft charge will also carry a possible punishment of a mandatory 24 months which must be served consecutively to any other prison term imposed, upon conviction. A maximum fine of $250,000 could also be imposed on all of the charges.
The investigation was conducted by the FBI. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Medical Office Manager Sentenced for Wire FraudRead the Press Release
DAYTON – Terry Stuerman, 48, of Beavercreek, was sentenced in U.S. District Court to 27 months in prison for embezzling nearly $300,000 from her employer, Perinatal Partners, LLC, now part of Premier Health.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down yesterday by U.S. District Court Judge Walter H. Rice.
According to court documents, Stuerman served as office and business manager for Perinatal Partners, LLC, a physician-owned medical practice based in Dayton, Ohio. Stuerman was entrusted with substantial responsibility for supervising and managing the business and financial aspects of the medical practice. Beginning in at least August 2007 and continuing until at least June 2012, Stuerman made hundreds of thousands of dollars in unauthorized and fraudulent purchases using her company-issued American Express Card.
The charges were unrelated to Perinatal Partners’ business. For example, she used the business’ American Express to make thousands of unauthorized purchases, including various home improvements and pricey family vacations. In addition to the fraudulent use of Perinatal Partners’ credit card, Stuerman also had Perinatal Partners make lease payments on a luxury vehicle, knowing that such payments were not authorized, as well as receiving tens of thousands of dollars in unauthorized pay.
“Beginning in at least 2007 and continuing over the next half-decade, Terry Stuerman stole nearly $300,000 from her long-time employer, Perinatal Partners,” Assistant U.S. Attorney Alex Sistla told the court. “She stole from doctors providing essential prenatal services in the Miami Valley. She stole from those who trusted her. She stole from one of her best friends. But it wasn’t until Perinatal Partners faced an audit (of which she was aware) that Stuerman finally admitted – and only then partially – that she had been embezzling funds from the practice.”
Stuerman pleaded guilty on June 5, 2014 to wire fraud.She was also sentenced to three years of supervised release and ordered to pay $299,478.90 in restitution.
U.S. Attorney Stewart commended the investigation by the U.S. Secret Service, as well as Assistant United States Attorneys Alex R. Sistla and Vipal Patel, who prosecuted the case.