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1 April 2015
Raynham Man Sentenced for National Fraudulent Invoicing SchemeRead the Press Release
BOSTON – A Raynham man was sentenced today for engaging in a fraud scheme involving the creation of phony invoices for annual dues that purported to come from legitimate business and trade associations.
Darren Stokes, 43, of Raynham, Mass., was sentenced today by U.S. District Court Judge Richard G. Stearns to four years in prison, three years of supervised release, and was ordered to pay $1,170 in restitution. In November 2014, Stokes pleaded guilty to eight counts of wire fraud and seven counts of mail fraud.
From 2008 to 2012, Stokes caused tens of thousands of fraudulent invoices to be faxed to businesses throughout the United States. The invoices purported to be from business or trade associations and sought payment for annual membership dues or inclusion in a business directory. In fact, Stokes had no authorization from any business or trade association to collect such payments. Stokes caused invoices to be sent to members of associations, including the American Dental Association, the National Association of Manufacturers, the Automotive Parts Remanufacturers Association, the American Trucking Association, the Associated General Contractors of America, and the American Hospital Association. Hundreds of businesses were deceived by Stokes’ scheme and mailed checks to addresses he controlled. Stokes cashed them at a check-cashing business, and pocketed the proceeds for himself.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Special Agent in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Mark J. Balthazard of Ortiz’s Economic Crimes Unit, and Doreen M. Rachal of Ortiz’s Asset Forfeiture Unit.
Portales Man Pleads Guilty to Federal Narcotics Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Brandon William Wood, 35, of Portales, N.M., entered a guilty plea today in federal court in Las Cruces, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Wood will be sentenced to a range of eight to ten years in prison followed by a term of supervised release to be determined by the court.
Wood and co-defendant, Justin Thomas Shipley, 30, also of Portales, N.M., were arrested on April 24, 2014, in Otero County, N.M., on a criminal complaint charging them with methamphetamine trafficking charges. They subsequently were indicted on methamphetamine trafficking and firearms charges in a six-count indictment filed on July 16, 2014.
The indictment alleged that in April 2014, Shipley and Wood participated in a conspiracy to distribute large quantities of methamphetamine, and also charged the two men with possession of methamphetamine with intent to distribute. The indictment further charged Wood and Shipley with using and carrying firearms in relation to a drug trafficking crime and Wood with being a felon in possession of firearms and ammunition.
In July 2014, Wood was prohibited from possessing firearms and ammunition because he had been convicted of several felony offenses, including conspiracy to sell controlled substances, manufacturing, sale and possession of controlled substances, conspiracy to cultivate marijuana, and driving while intoxicated.
During today’s plea hearing, Wood pled guilty to a four-count felony information charging him with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, using a carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm and ammunition. In entering his guilty plea, Wood admitted that beginning on April 18, 2014, he conspired with his co-defendant to acquire 80 grams of methamphetamine which was to be distributed in Portales, N.M. Wood admitted that they completed their transaction on April 22, 2014. Wood and his co-conspirator were transporting the drugs from Arizona to Portales on April 24, 2014, when they were arrested at the U.S. Border Patrol checkpoint near Alamogordo, N.M., after Border Patrol agents found 80 grams of methamphetamine, a hand gun, a shotgun and ammunition in their vehicle during a routine vehicle inspection. Wood admitted to having a gun and ammunition because he was transporting methamphetamine even though he knew that he not allowed to possess the firearms and ammunition because he had been convicted of at least four felonies.
On Dec. 12, 2014, Shipley also pled guilty to a felony information charging him with participation in a methamphetamine trafficking conspiracy, distribution of methamphetamine; and using and carrying a firearm in relation to a drug trafficking crime. Shipley has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo Station of the U.S. Border Patrol. Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Pittston Man Sentenced to 41 Months in Prison for Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Pittston man was sentenced to 41 months in prison today by Senior U.S. District Court Judge Edwin M. Kosik in Scranton, for conspiring with others to distribute heroin in the Luzerne County area during a four-year time period.
According to United States Attorney Peter Smith, the defendant, Sal Biscotto, previously pleaded guilty to committing the crime during 2010 through February 2014.
Biscotto was charged in a Criminal Information filed by the United States Attorney on October 7, 2014, following an investigation by special agents of the Federal Bureau of Investigation.
Judge Kosik ordered Biscotto to be placed on three years of supervised release following his prison sentence. Biscotto must also pay a $100 special assessment.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Paterson City Council Member and Former City Council President Sentenced to Two Years in Prison for Taking BribesRead the Press Release
NEWARK, N.J. – A Paterson City Council member and former council president was sentenced today to 24 months in prison for accepting bribes from a purported developer in exchange for his official help, New Jersey U.S. Attorney Paul J. Fishman announced.
Anthony Davis, 50, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On April 20, 2012, Davis accepted $5,000 in cash from an individual who was cooperating with federal authorities and who purported to be an out-of-state real estate developer. Davis accepted the bribe in exchange for his official action as Paterson City Council president to foster the developer’s business interests. Between July 6, 2012, and July 25, 2012, Davis had meetings with the developer, during which Davis discussed the possibility of accepting additional money from the developer in exchange for a letter from Davis to the developer’s lender indicating that the Paterson City Council supported the developer with respect to certain business endeavors in Paterson. On July 25, 2012, Davis agreed to accept, and did accept, $5,000 in cash from the developer in exchange for such a letter.
In addition to the prison term, Judge Walls sentenced Davis to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Randy Davenport Esq., Piscataway, New Jersey
Parsonsburg Man Sentenced to 16 Years in Prison for Distributing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Edward James Maycock, Jr., age 28, of Parsonsburg, Maryland, today to 16 years in prison followed by a lifetime of supervised release for distribution of child pornography. Judge Russell ordered that upon his release from prison, Maycock must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
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); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Wicomico County Sheriff Michael A. Lewis.
According to his plea agreement, on November 8, 2013, Maycock uploaded files containing child pornography to a website. After linking the IP address used to upload the files to Maycock’s residence, law enforcement executed a search warrant on February 6, 2014 and seized a notebook computer and several external hard drives from Maycock’s home which contained thousands of files depicting children, including prepubescent minors, engaged in sexually explicit conduct. Some of the files included images of sadistic and masochistic conduct, or other depictions involving violence. Maycock actively traded the child pornography files with other individuals via the internet. The total volume of child pornography from Maycock’s computer and hard drives was roughly the equivalent of 1,000 gigabytes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Maryland State Police and Wicomico County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
North Stonington Man Pleads Guilty to Tax Evasion and Structuring Cash TransactionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN ZELEPOS, 48, of North Stonington, pleaded guilty yesterday in Bridgeport federal court to tax evasion and financial structuring offenses.
According to court documents and statements made in court, ZELEPOS is the sole owner of Mystic Pizza, LLC, a Schedule C retail restaurant business in Mystic, Connecticut. From 2006 to 2010, ZELEPOS regularly diverted Mystic Pizza’s cash business gross receipts totaling approximately $567,435. Approximately $330,005 in the diverted cash was deposited into his personal bank account ($113,360) and his and his wife’s personal checking account ($102,580) at Chelsea Groton Bank, his wife’s personal checking account at Washington Trust Company ($74,865), and passbook savings accounts in the name of each of his three minor children at Chelsea Groton Bank ($39,200).
With respect to his 2006 tax return, on June 14, 2007, ZELEPOS willfully attempted to evade and defeat a large part of the income tax due and owing to the United States for 2006 by, among other things, (1) diverting approximately $130,060 in cash from Mystic Pizza, LLC, (2) depositing the diverted cash into his personal bank account and his and his wife’s personal checking account at Chelsea Groton Bank, his wife’s personal checking account at Washington Trust Company, and passbook savings accounts in the name of each of his three minor children at Chelsea Groton Bank at various times in amounts less than $10,000, (3) deducting as business expenses wages paid to two no-show employees, (4) not disclosing to his tax return preparer receipt of the diverted cash and the two no-show employees, and (5) filing and causing to be filed with the IRS a false and fraudulent 2006 federal tax return. In his 2006 tax return, ZELEPOS stated that his taxable income was $388,957 when in fact, as he knew, in 2006 his total taxable income was $551,858 (an additional $162,901 which included the diverted income, deductions for no-show employees, and other statutory adjustments), upon which he owed the United States approximately $180,765 (an additional $54,655) in federal income tax.
As part of the plea agreement, ZELEPOS agreed that he similarly evaded the payment of his federal taxes in 2007, 2008, 2009, and 2010 and that the total federal tax loss for 2006 to 2010 based on his conduct is $234,407. He has agreed to make restitution in the amount of $234,407, plus interest and penalties.
ZELEPOS also pleaded guilty to intentionally structuring financial transactions so as to avoid having the bank file Currency Transaction Reports (“CTRs”). He engaged in 61 currency transactions in amounts less than $10,000 from January 5, 2010 through January 24, 2011, totaling $522,658. He deposited cash into the business account, his personal account, his and wife’s personal bank account, and his three children’s bank accounts at Chelsea Groton Bank in amounts ranging from $3,000 to $9,998 on sequential days or multiple cash deposits on the same day. ZELEPOS knew that the bank was required to issue a report for a currency transaction in excess of $10,000 and by conducting his financial transactions in amounts less than $10,000, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a CTR for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law. Structured funds are subject to forfeiture to the United States.
As part of the plea agreement, ZELEPOS is forfeiting $522,658 of the money he intentionally structured between January 2010 and January 2011.
On January 2012, pursuant to a court-authorized federal seizure warrant, IRS Special Agents seized $63,084.49 from a payroll account Mystic Pizza held at Chelsea Groton Bank. Those funds are being applied to the forfeiture, reducing the remaining forfeiture amount to $459,573.51.
"Our voluntary system of self-reported tax liability depends upon people to honestly report their income and pay their taxes," stated U.S. Attorney Daly. "Those who willfully hide their income and purposefully evade paying their taxes steal from the public and damage our nation’s system of taxation. Violators will be prosecuted, punished, and obligated to repay their taxes along with applicable penalties and interest. The tax fraud was more egregious in this case because the defendant sought to hide some of the diverted business funds by depositing cash in amounts less than the reportable $10,000 so as to prevent the bank from filing currency transaction reports reporting the multiple cash transaction to the IRS."
U.S. District Judge Victor A. Bolden will sentence ZELEPOS on June 23, 2015, at which time ZELEPOS faces a maximum term of imprisonment of 15 years and a fine of up to $500,000. He was released pending sentencing.
This matter was investigated by the Internal Revenue Service - Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
North Carolina Man Sentenced to Prison for Role in Check Fraud RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LANGSTON XAVIER NEAL, 37, of Charlotte, North Carolina, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 18 months of imprisonment, followed by three years of supervised release, for his role in a check fraud ring. NEAL was also ordered to pay $104,070.94 in restitution.
According to court documents and statements made in court, between July 2010 and May 2011, NEAL, Benjii Carr and Brandon Key Bentley obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees. The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds. Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.
On December 1, 2014, NEAL pleaded guilty to one count of conspiracy to commit bank fraud.
Carr and Bentley, both of New Haven, previously pleaded guilty to the same charge and await sentencing.
This matter was investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments. U.S. Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
North Carolina Man Pleads Guilty to Federal Charges of Production and Possession of Child PornographyRead the Press Release
WASHINGTON – David Wendell Pilcher, 50, of Granite Falls, N.C., pled guilty today to production and possession of child pornography, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Pilcher entered the plea in the U.S. District Court for the District of Columbia. The Honorable Gladys Kessler is to sentence him on July 8, 2015. Pilcher faces a mandatory minimum of 15 years in prison and a maximum of 30 years, as well as a fine of up to $250,000.
According to the government's evidence, on or about Feb. 18, 2014, Pilcher contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Pilcher engaged in text message conversations with the undercover officer, whom Pilcher believed was the father of an under-aged girl. Pilcher and the undercover officer arranged to meet at a hotel room for the purpose of engaging in sexual acts with the child.
During the course of their conversation on Feb. 18, 2014, Pilcher sent the undercover officer two pornographic images of an under-aged child that Pilcher had produced using a cellular telephone. Based on a search of electronic items seized from Pilcher subsequent to his arrest, law enforcement recovered approximately 50 videos and 300 still images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case and Assistant U.S. Attorney Courtney Randall of the Western District of North Carolina, who assisted in the investigation.
Nine Defendants Plead Guilty in $20 Million Stolen Identity Refund Fraud RingRead the Press Release
Identities Stolen from the U.S. Army, Various Alabama State Agencies and Georgia Call Center
Alabama and Georgia residents pleaded guilty for their roles in a $20 million stolen identity refund fraud (SIRF) conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
The defendants pleaded guilty on the following dates to the following charges:
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Talarius Paige on March 31, to one count of conspiracy to file false claims and one count of aggravated identity theft;
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Tracy Mitchell on March 30, to one count of conspiracy to file false claims, one count of wire fraud and one count of aggravated identity theft;
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Latasha Mitchell on March 30, to one count of conspiracy to file false claims and one count of aggravated identity theft;
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Demeisha Mitchell on March 26, to one count of conspiracy to file false claims and one count of aggravated identity theft;
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Keisha Lanier on March 5, to one count of wire fraud and one count of aggravated identity theft;
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Sharondra Johnson on Feb. 17, to one count of conspiracy to file false claims;
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Cynthia Johnson on Dec. 17, 2014, to one count of conspiracy to file false claims; and
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Patrice Taylor on July 18, 2014, to one count of conspiracy to file false claims.
The defendants are scheduled to be sentenced on June 30. Mequetta Snell-Quick, another co-conspirator, is scheduled to appear in court on April 6. In a related case, on Oct. 2, 2014, Tamika Floyd pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft and is scheduled to be sentenced on May 19. The defendants each face a statutory maximum sentence of 10 years in prison for each count of conspiracy to file false claims, a statutory maximum sentence of 20 years in prison for each wire fraud count, and a statutory mandatory minimum sentence of two years in prison for each aggravated identity theft count.
“The guilty pleas of the nine defendants who participated in this conspiracy send a clear message that the Tax Division, along with its law enforcement partners, will vigorously pursue and prosecute individuals involved at every level of these extensive criminal schemes,” stated Acting Assistant Attorney General Ciraolo. “The division will seek significant jail time and restitution from offenders who choose to victimize unsuspecting American taxpayers, including the dedicated men and women serving in the U.S. military, and steal from the U.S. Treasury.”
“Stealing a person’s identity is a horrendous crime,” said U.S. Attorney Beck. “It can take months or years for a victim of identity theft to correct the damage that these criminals reaped upon him or her. But these defendants stole identities from military men and women who have volunteered to protect our country. That is inexcusable and will not be tolerated.”
According to court documents, between January 2011 and December 2013, the defendants ran a large-scale identity theft ring in which they filed more than 7,000 false tax returns that included fraudulent claims for refunds in excess of $20 million. In order to file false returns, the defendants obtained stolen identities from various sources. Tracy Mitchell worked at a military hospital located at Fort Benning, Georgia, and as a hospital employee, she had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan. Tracy Mitchell stole soldiers’ personal information and used that information to file false tax returns.
“This case is an excellent example of Army CID working shoulder-to-shoulder with our fellow law enforcement partners to protect the nation’s soldiers,” said Director Daniel Andrews of the U.S. Army Criminal Investigation Command’s (CID) Computer Crime Investigative Unit. “It demonstrates our vigilance against cybercrime and an unswerving commitment to dismantle criminal operations impacting the U.S. Army.”
Floyd stole personal information from two Alabama state agencies and provided those names to Lanier. Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Paige and others for use in filing false tax returns. Lanier also obtained stolen identities from the Alabama Department of Corrections that were then used to file false tax returns. Also, Paige and Taylor worked in a call center for a Columbus, Georgia, company and stole identities from that company. Paige, in turn, used those identities to file false tax returns and filed some of the returns from Tracy Mitchell’s residence.
In order to file the false tax returns, Floyd applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs so that the defendants could print refund checks.
The defendants cashed the tax refund checks at several businesses located in Alabama, Georgia and Kentucky. Sharondra Johnson worked at the Walmart money center in Columbus, Georgia, and as part of her employment, she cashed checks for customers of the money center. Demeisha Mitchell approached Sharondra Johnson about cashing tax refund checks issued in the names of other individuals. Sharondra Johnson agreed to cash these refund checks and was paid a fee for her role in the scheme.
“Taking advantage of innocent citizens, especially service members and their families, is disgraceful,” said Chief Richard Weber of IRS Criminal Investigation (CI). “IRS Criminal Investigation is committed to stopping those who would prey on others by stealing their identities. As criminals continue to become more sophisticated, we will continue to work with our law enforcement partners to bring them to justice.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS - CI and the U.S. Army – CID, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama, for prosecuting the case. Ciraolo and Beck Jr. also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
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Newport News Man Convicted of Robbing Lonestar Steakhouse in HamptonRead the Press Release
Steward planned the robbery with his girlfriend
NEWPORT NEWS, Va. – Christopher Steward, 24, of Newport News, Va, was convicted today following a three day jury trial on charges of conspiracy to commit robbery, robbery, and use, carry and brandish a firearm in relation to a crime of violence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the verdict was accepted by U.S. District Judge Arenda Wright Allen.
Steward faces a maximum penalty of twenty years on the conspiracy conviction, twenty years on the robbery conviction, and a mandatory consecutive seven years in prison on the firearm conviction when he is sentenced on July 1, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to court records and evidence at trial, in June, 2014, two masked men entered the Lonestar Steakhouse in Hampton, Virginia armed with firearms. Various employees, as well as the infant child of an off duty employee were in the restaurant at the time. The robbery was planned by Cynthia Presley, a Lonestar employee, and her boyfriend, Christopher Steward. Presley advised Steward by text message as to the timing of the robbery which was passed onto Steward by two unknown conspirators. Presley pled guilty in December, 2014, and testified against Steward at trial. Presley was sentenced on March 10, 2015, to 87 months in prison.
This case was investigated by the Federal Bureau of Investigation, as well as Norfolk and Hampton Police Departments. Assistant U.S. Attorney Brian J. Samuels, and Jennifer Sykes from the Organized Crime and Gang Section of the Justice Department’s Criminal Section, are prosecuting the case on behalf of the United States.
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. 4:14CR75.
New York Man Indicted for Smuggling Cocaine at AirportRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Edward Adames-Tavares (30, New York) with smuggling cocaine into the United States. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to court documents, on March 6, 2015, Adames-Tavares flew from the Dominican Republic to the Orlando International Airport. Upon going through U.S. Customs inspection, he was selected for a secondary inspection of his luggage. A U.S. Customs and Border Patrol officer found 11 wooden hangers inside Adames-Tavares’ checked luggage. The officer ran the hangers through an x-ray machine, which revealed that something was inside the hangers. Upon further inspection, the officer found a white powdery substance wrapped in plastic. The substance tested positive for cocaine. The remaining hangers were opened and each contained a white powder wrapped in plastic.
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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Patrol. It will be prosecuted by Assistant United States Attorney Bruce S. Ambrose.
New York Attorney Charged in Multimillion-Dollar Fraud Scheme to Purchase Nationally Circulated MagazineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert J. Sica, the Special Agent-in-Charge of the New York Office of the United States Secret Service, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that HARVEY NEWKIRK, formerly counsel at a law firm in Manhattan, was arrested today for participating in a scheme to fraudulently induce lenders to provide millions of dollars to a company associated with a co-conspirator (“CC-1”) for the attempted purchase of a nationally circulated magazine and related assets (the “Magazine”). NEWKIRK surrendered this morning to the Secret Service, and was presented this afternoon in Manhattan federal court before U.S. Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Harvey Newkirk shirked his ethical responsibilities as a lawyer when he participated in a multimillion-dollar fraud scheme, in which deception and misrepresentations were legion, in order to obtain the funds to purchase a national magazine. Fortunately, thanks to our law enforcement partners at the Secret Service and the FBI, Newkirk was apprehended and must now answer for his alleged conduct.”
Secret Service Special Agent-in-Charge Robert Sica said: “The arrest of Harvey Newkirk is another example of the Secret Service's expertise in combating fraud and financial crimes. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Lying to lenders, creating fictitious documents, and purporting to be someone’s attorney are serious crimes. Newkirk’s alleged elaborate fabrications – in a ridiculous attempt to purchase a nationally circulated magazine – have finally been unveiled.”
According to the allegations contained in the Complaint filed today in Manhattan federal court:
From August 2013 to February 2014, in connection with the potential purchase of the Magazine by a media company (the “Media Company”) associated with CC-1, NEWKIRK and CC-1 made a series of misrepresentations to lenders to induce these lenders to provide millions of dollars in capital to the Media Company for the purchase of the Magazine.
As part of the scheme, in order to mislead lenders into believing that they would receive sufficient collateral for their loans, NEWKIRK falsely promised lenders that assets owned by the father of CC-1 (the “Executive”) would be pledged as security for the loans. NEWKIRK made these promises without the authorization or knowledge of the Executive. In one instance, NEWKIRK and CC-1 provided a lender with account statements that purported to show the Executive’s holdings in the stocks of at least three publicly traded companies. NEWKIRK misled the lender into believing that the Executive’s alleged stock holdings in these companies, as reflected in the account statements, would serve as collateral for the loan. In truth, however, the account statements were fake documents and the Executive was not providing any financial support for the purchase of the Magazine.
Furthermore, after one of the lenders (“Lender-2”) placed approximately $5.5 million in escrow at the Manhattan law firm at which NEWKIRK was then counsel (the “Law Firm”), CC-1 arranged for a fraudulent email to be sent that purported to have been from Lender-2 to NEWKIRK. In response to that fraudulent email, NEWKIRK released approximately $4.9 million of Lender-2’s money from the escrow account to fund the Media Company’s purchase of the Magazine. NEWKIRK also attempted to forward $535,000 of Lender-2’s money to a different potential lender, in order to pay a debt owed to that potential lender. NEWKIRK did so without Lender-2’s knowledge or authorization.
Throughout the course of the scheme, NEWKIRK repeatedly lied to lenders regarding his relationship with the Executive, falsely purporting to be the Executive’s attorney despite having met the Executive on only one prior occasion. In addition, NEWKIRK attempted to hide from the Executive the existence of a lawsuit filed by one lender, in which that lender sought to obtain the Executive’s assets that NEWKIRK had pledged to the lender without the Executive’s knowledge. NEWKIRK also falsely represented to another lender, from whom NEWKIRK and CC-1 were seeking $20,000,000 in financing for the Magazine purchase, that approximately $12,000,000, representing funds provided by, or secured by the personal assets of, the Executive for the Magazine purchase, had been placed in escrow at the Law Firm. In fact, no funds were ever held in escrow at the Law Firm in connection with the Magazine purchase, other than the $5.5 million placed in escrow by Lender-2, and subsequently misappropriated by NEWKIRK.
In March 2015, during a consensual interview with law enforcement, NEWKIRK admitted that the Executive had not been NEWKIRK’s client despite NEWKIRK’s multiple representations to the contrary to various lenders throughout the course of the attempted purchase of the Magazine.
On November 4, 2014, CC-1 pled guilty before the Honorable Jed S. Rakoff to, among other things, charges related to CC-1’s participation in the scheme to defraud lenders for the attempted Magazine purchase.
NEWKIRK, 39, of New Rochelle, New York, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison. He is also charged with one count of aggravated identity theft, which carries a mandatory minimum and maximum sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the United States Secret Service and the FBI.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew C. Adams and Sarah E. Paul are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Harvey Newkirk Complaint
Monroe County Man Charged with Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton indicted a Monroe County man late yesterday on charges of distribution and possession with intent to distribute heroin.
According to United States Attorney Peter Smith, the grand jury alleges that Ronald Walker, age 22, of Tobyhanna, Pennsylvania, distributed and possessed with intent to distribute heroin on four separate occasions in July and August 2014, in Monroe County.
The charges stem from an investigation by special agents of the Drug Enforcement Administration, the Pennsylvania State Police, and the Monroe County Drug Task Force.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Minnesota Man Arrested and Charged for Producing Nude Photos of Seven-year-oldRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging SEAN PENONCELLO, 41, with production of child pornography.1 PENONCELLO was ordered detained pending trial after a hearing today before Magistrate Judge Brisbois in United States District Court in Duluth, Minn.
According to the complaint and documents filed in court, on April 3, 2014, in an unrelated investigation, thousands of images and hundreds of videos depicting child pornography were recovered from two computers at the home of an unrelated defendant in Dayton, Ohio. The images and videos were submitted to the National Center for Missing and Exploited Children (NCMEC) which, in a subsequent report, identified three nude images of an unidentified minor. The NCMEC assigned a name to this series of images for identification in future cases.
According to the complaint and documents filed in court, the photos from this named series were taken on or around September 15, 2012, at a residential address belonging to PENONCELLO. Several images were discovered on PENONCELLO’s iPhone, which included images and videos of a couch that appeared to be an exact match to the couch in the named series depicting the unidentified minor.
According to the complaint and documents filed in court, two minor children and a parent visited PENONCELLO several times at his home, located in a rural area near Cherry, Minn. On September 15, 2012, during a visit to PENONCELLO’S house, the two children were left alone at the house with PENONCELLO. One of those children is the subject of the named NCMEC series referenced above. PANONCELLO is alleged to have taken the sexually explicit photographs.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the St. Louis County Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant Information: SEAN PENONCELLO, 41
Iron, Minn.
Charges: • Production of child pornography, 1 countThe charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican National Charged with KidnappingRead the Press Release
McALLEN, Texas ‐ Martin Margarito-Casimiro, 28, of Camargo, Tamaulipas, Mexico, has been charged with conspiracy to commit kidnapping, kidnapping and being an alien in possession of firearms, announced U.S. Attorney Kenneth Magidson.
Margarito-Casimiro was originally charged in February 2015 on the firearms charge and was remanded to custody pending further criminal proceedings. A federal grand jury in McAllen returned the superceding indictment adding the conspiracy and kidnapping allegations today. He is expected to make his initial appearance before a U.S. magistrate judge on these charges in the near future, at which time the government will again request his continued detention.
The indictment alleges that from Jan. 20 - 22, 2015, Margarito-Casimiro held two individuals against their will in a residence in McAllen. The victims were allegedly bound and forced to call family members and arrange payment for their release.
If convicted of these charges, Margarito-Casimiro could face up to life in prison.
The investigation leading to the charges was conducted by Homeland Security Investigations and McAllen Police Department. Assistant U.S. Attorney Kristen Rees and Leo J. Leo are 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.Member of Cherry Hill Group “UDH” Sentenced to over 10 Years in Prison for Conspiracy to Distribute Heroin and Crack CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Demond Pinkney, a/k/a “Cal,” age 30, of Baltimore, today to 121 months in prison, followed by five years of supervised release, for conspiracy to distribute and possesses with the intent to distribute heroin and crack cocaine.
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, since the late 1990s Pinkney has been distributing powder cocaine, crack cocaine and heroin in the Cherry Hill area of Baltimore. Pinkney 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 disputes with members and associates of organizations known as “Coppin Court” and “Little Spelman,” that are involved in criminal activity in the part of Cherry Hill known as “Down the Hill.” UDH members and associates committed various crimes to include distribution of drugs, such as crack cocaine, heroin, cocaine and oxycodone. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in their part of Cherry Hill. Some of these acts of violence include the January 22, 2011 murder of Little Spelman member Harry Hicks; the August 28, 2011 murder of Little Spelman member Dewayne Jones; and the January 20, 2012 murder of Little Spelman leader Dominic Hope. Pinkney himself was shot on June 1, 2008, by persons from “Down the Hill,” leaving Pinkney paralyzed. Pinkney continued his association with UDH, renting a stash house in the UDH area and selling narcotics.
In the earlier part of Pinkney’s drug distribution years, he sold crack cocaine with a group of individuals associated with “Down the Hill.” Pinkney later became a member of the UDH group and as a teenager, sold crack and heroin for various UDH leaders. Pinkney was a right-hand man to a UDH drug supplier for a period of time and later worked for a UDH member who supplied Pinkney with crack cocaine and heroin. Throughout the course of Pinkney’s involvement in the UDH drug conspiracy, the conspirators distributed between three and 10 kilograms of heroin and at least 840 grams but less than 2.8 kilograms of crack cocaine.
In addition to distributing narcotics, Pinkney participated in two bank robberies with fellow UDH members. In each robbery, Pinkney wrote the demand note used by the robbers and shared in the proceeds of the robberies.
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, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Massachusetts Doctor and Medical Practice Resolve Allegations Concerning Medically Unnecessary Stress TestsRead the Press Release
BOSTON – A Massachusetts cardiologist and his practice entered into an agreement with the United States yesterday to resolve allegations that they improperly billed Medicare for medically unnecessary stress tests.
Primary Care Specialists, Inc., and Terrence C. Hack, M.D. agreed to pay $24,000 to resolve the government’s claim that Dr. Hack and Primary Care Specialists improperly billed Medicare for medically unnecessary myocardial perfusion studies, also known as nuclear stress tests, in violation of the False Claims Act. Performing these unnecessary stress tests results in patients’ needless exposure to radiation as well as wasting Medicare dollars. Dr. Hack is a cardiologist licensed in Massachusetts, and Primary Care Specialists, Inc. is his Ayer, Mass. practice. In agreeing to settle this claim, Dr. Hack has not admitted liability.
“We protect the integrity of Medicare by scrutinizing billing practices that burden the Medicare fund, such as when reimbursement is sought for medically unnecessary tests,” said United States Attorney Carmen M. Ortiz. “We take every opportunity to investigate, eliminate, and deter waste and fraud in this vital government program.”
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General. It was handled by Assistant U.S. Attorneys Sonya A. Rao and Rosemary Connolly, Chief of Ortiz’s Civil Division.
Man Sentenced in Federal Court for Domestic Violence Assault on the Warm Springs Indian ReservationRead the Press Release
PORTLAND, Ore. – William Clements, Sr., 44, of the Warm Springs Indian Reservation, was sentenced today to 21 months in federal prison by U.S. District Judge Michael W. Mosman. In November 2014, Clements pled guilty to the felony offense of assault resulting in serious bodily injury. Clements has remained in the custody of the U.S. Marshals Service since his arrest in May of 2014.
“The epidemic of domestic violence in Tribal Nations must stop,” stated Acting U.S. Attorney Billy J. Williams. “Mr. Clements’ crime caused serious and dangerous injuries to his wife. But we know that domestic violence also negatively impacts children, families, and the entire community.”
After Clements has completed his 21 months in prison, he must serve three years of federal supervised release. While on supervised release, Clements will be required to attend drug and alcohol rehabilitation, participate in mental health treatment, and successfully complete a domestic violence counseling program.
According to the public filings in the case, on May 16, 2014, Clements intentionally assaulted his wife, causing her to suffer serious physical injuries. The investigation began when the Warm Springs Police Department responded to a report of domestic violence. The police found the victim at home, and she described how Clements had slammed her into the ground and repeatedly hit her. The victim suffered bruising and lacerations from the assault, and she was transported to the St. Charles Medical Center in Madras for treatment. Clements had fled the scene before the police arrived, but he was arrested the following week. During an interview with the police, Clements admitted to hitting the victim with his fists and elbows, and kicking her with his feet. Clements also confessed to pulling the victim by her hair.
Prior to imposing his sentence, Judge Mosman addressed Clements. “I think a man beating his wife is a terrible thing,” said Judge Mosman. “So I take that crime very seriously.”
The case was investigated by the Warm Springs Police Department and FBI Special Agents in Bend. Assistant U.S. Attorney Craig J. Gabriel prosecuted the case.
Man Convicted of Illegally Possessing Handgun and AmmunitionRead the Press Release
ALBANY, NEW YORK – On Friday, March 27, 2015, a federal jury in Albany convicted Shakir Michael, age 37, of Albany, New York, of being a felon in possession of a firearm, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Delano A. Reid of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Field Division. Michael faces a maximum sentence of imprisonment of ten years and a maximum fine of $250,000 for possessing a loaded Mossberg 12 gauge shotgun. Michael, having previously been convicted on two prior occasions of felony offenses under New York State law, was prohibited from carrying any firearms under federal law. Michael, who was convicted after a four day trial, will remain in custody until his sentencing scheduled for August 4, 2015 by United States District Judge Mae A. D’Agostino. The jury acquitted Michael of a separate charge of possessing a firearm in furtherance of a drug trafficking crime.
This prosecution resulted from an investigation conducted by the Albany Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Robert A. Sharpe.
Maker of Erectile Dysfunction Products Sentenced to Nine Years in Prison for Misbranding and Selling Drugs as "All-natural" Herbal SupplementsRead the Press Release
CHARLOTTE, N.C. – Kamraz Rezapour, 53, formerly of Creston, N.C. was sentenced today to 108 months in prison for defrauding consumers of nearly $5 million by misbranding erectile dysfunction drugs and selling them as “all natural” herbal supplements, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also sentenced Rezapour to three years of supervised release and ordered the defendant to pay a $15,000 fine and $44,100.52 in restitution. The Court also ordered the forfeiture of the proceeds of Rezapour’s crimes, including over $1.5 million in seized funds, gold and silver coins, along with a condominium located in Tampa, Florida.
David W. Bourne, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), join Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in 2009 through April 2013, Rezapour defrauded consumers of nearly $5 million, by falsely claiming that the erectile dysfunction products he sold were “100 % safe and natural.” Court records show that Rezapour was the owner and operator of Nutrition for Health, Inc. and Mojo Risen, LLC., which sold dietary supplements, male enhancement drugs and erectile dysfunction drugs, including “Mojo Risen,” “Mojo Sensation” and “VajiVedic.” Court documents indicate that Rezapour advertised Mojo Risen and the other erectile dysfunction pills as non-prescription, “all natural” herbal supplements, when, in fact, the products contained ingredients similar to prescription drugs such as Viagra, which require FDA approval to market and distribute. Rezapour previously admitted that in order to induce consumers to purchase his Mojo Risen, Rezapour repeatedly claimed that the sexual enhancement products were “100% safe and natural” and without “harsh and dangerous side effects.” Rezapour failed to list the prescription ingredients in the packaging and advertising material for the supplements he sold, including bearing the symbol “Rx only” on labels, a requirement for all prescription drugs, and did not include any warnings about the possible adverse side effects of his products.
According to court records, Rezapour received the ingredients from a supplier in China. Court records indicate that the packages were falsely labeled as containing “paint products,” among other things, to evade detection by the U.S. Customs authorities and the FDA. Rezapour ultimately distributed his products nationwide, including to customers located in Charlotte, and netted more than $4.9 million in payments for the mislabeled products.
Rezapour pleaded guilty in February 2014 to one count of wire fraud and two counts of drug misbranding, and has been detained since April 2013. Rezapour will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation into Rezapour was conducted by FDA-OCI and USPIS, with the assistance of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is handled by Assistant U.S. Attorney Kelli Ferry.
In June 2013, the FDA issued a warning against Mojo Risen, advising consumers not to purchase or to discontinue using this product immediately. The FDA also advised consumers who have experienced any negative side effects as a result of using this product to consult a health care professional as soon as possible. For more information please visit:
https://www.fda.gov/drugs/resourcesforyou/consumers/buyingusingmedicinesafely/medicationhealthfraud/ucm355904.htm
Luzerne County Man Pleads Guilty to Conspiracy to Distribute Bath SaltsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 21-year-old Pittston man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Peter Smith, the defendant, Alan Folweiler, admitted to his involvement in the West Pittston-based conspiracy during 2011 through 2013.
Folweiler was indicted by a federal grand jury in August 2014, following an investigation by Homeland Security Investigations, the Pennsylvania State Police, and West Pittston Police.
Judge Mannion ordered a pre-sentence investigation. Sentencing will be scheduled after the completion of the pre-sentence report.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $ 1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Louisiana Man Sentenced to 14.5 Years in Prison for Operating an Arizona Based Alien Smuggling OrganizationRead the Press Release
PHOENIX – Otoniel Galindo Vasquez-Lopez, 29, of Bossier, La., was sentenced on March 30, 2015 by U.S. District Judge G. Murray Snow to 14.5 years in custody and three years of supervised release for his role as the leader of an Arizona based alien smuggling organization after previously pleading guilty to conspiracy to transport and harbor illegal aliens and conspiracy to commit money laundering. Vasquez-Lopez employed and directed money launderers and alien smugglers in Arizona, and coordinated transportation and payment with hundreds of aliens and their families, from the assumed anonymity of Bossier, La.
Vasquez-Lopez sentence reflects that illegal aliens who utilized his organization, died while in transport to other destinations in the United States. Specifically, on July 22, 2012, two illegal aliens transported by Vasquez-Lopez’s alien smugglers were killed in a roll over double fatality in Holbrook, Ariz., after being ejected from a Dodge minivan that was overloaded with 15 people and crashed when a tire blew. Additionally, on June 23, 2012, Vasquez-Lopez’s name and telephone number were found in the pocket of a deceased alien, who died in the dessert near Sells, Ariz., after being left behind by his guides when he could not keep up with his group.
Additionally, over #30 other alien smugglers and money launders in this organization were also arrested, convicted, and sentenced in the District of Arizona.
The investigation in this case was conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Phoenix. The prosecution was handled by Kristen Brook, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-1513-PHX-GMS
RELEASE NUMBER: 2015-030_Vasquez-Lopez
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.
Local Man Pleads Guilty to Attempted Enticement of a Minor and Federal Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA – William M. Goode, 48, of Crestview, Florida, pled guilty today to attempting to entice a minor for sex and receipt of child pornography. The plea was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his plea, Goode admitted to posting an online advertisement to solicit sex with a minor, which an undercover law enforcement officer answered in November 2014. Goode’s online communications with the undercover officer were an attempt to entice sexual activity with the undercover officer’s purported 12-year-old daughter. Goode arranged to meet the undercover officer in Pensacola but was taken into custody after traveling more than 50 miles for the sexual encounter. A subsequent forensic review of Goode’s digital media revealed several dozen images of child pornography and numerous online communications with people who offered to allow Goode to engage in sexual acts with minors.
Sentencing is scheduled for June 19, 2015, before Chief United States District Judge M. Casey Rodgers at the United States Courthouse in Pensacola, Florida. Goode faces a mandatory minimum of 10 years in prison and maximums of life in prison, life on supervised release, and a $250,000 fine.
United States Attorney Marsh praised the work of Homeland Security Investigations, the Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Lilburn Man Sentenced to over 10 Years for Attempted Online Enticement of A MinorRead the Press Release
AUGUSTA, GA – Sarawin Nat Intakanok, 37, of Lilburn, Georgia, was sentenced last week by United States District Court Judge J. Randal Hall to 130 months in prison, followed by 25 years of supervised release, for the Attempted Online Enticement of a Minor to Engage in Illicit Sexual Activity. Intakanok will be required to register as a sex offender. He pled guilty to that charge last week.
United States Attorney Edward Tarver said, “The online solicitation of minors for sexual purposes is deplorable, and the U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. This defendant committed a serious crime for which this punishment is justified.”
Evidence presented during the guilty plea and sentencing hearings revealed that Intakanok responded to an ad on Craigslist, and exchanged emails with a person he believed to be the father of a 13-year-old girl. After a month of communications, Intakanok, who had repeatedly expressed an interest in having sex with the 13-year-old, drove from Atlanta to Augusta to what he believed to be the girl’s residence. He was immediately arrested by law enforcement officers. When imposing the lengthy sentence, the Court cited to the egregious nature of Intakanok’s attempted sexual victimization of a minor and the need to deter not only Intakanok but others from engaging in such predatory conduct.
This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Licensed Clinical Social Worker Sentenced for Defruading Insurance CompaniesRead 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 Eugene Domenico, 62, of Lockport, NY, who was convicted of three counts of theft from a health care benefit program, was sentenced to two years probation and ordered to pay a $10,000 fine by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $100,286.35.Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant, a licensed clinical social worker in private practice, devised a scheme to charge various health care insurance providers, including Blue Cross Blue Shield, for services that were not rendered. For example, Domenico billed Blue Cross Blue Shield for services allegedly provided to a patient on January 6, 2011, knowing that services were never provided. The total loss to insurance companies was $100,286.35.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation’s Health Care Fraud Task Force.
Lackawanna Man Sentenced for Obstructing JusticeRead 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 Thomas Herring, 39, of Lackawanna, NY, who was convicted of obstruction of justice, was sentenced to two years in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on January 14, 2014, law enforcement officers provided the defendant with more than $1,000 in United States currency to purchase crack cocaine from a target the Federal Bureau of Investigation had been investigating for more than six months.
Herring was told where to go to purchase the cocaine and after exiting the location, he met up with FBI agents. The defendant then turned over a quantity of cocaine to the agents. However, based on other law enforcement techniques, agents knew that Herring had not purchased the cocaine from the target causing the FBI to prematurely terminate its investigation of the target.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation and the Lackawanna Police Department, under the direction of Chief James Michel.
KC Man, Lee's Summit Woman Plead Guilty to Transporting an Individual for ProstitutionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man and a Lee’s Summit, Mo., woman pleaded guilty in federal court today to transporting an individual across states lines for prostitution.
Milton Charles Wilson, also known as “Barbwire,” 59, of Kansas City, and Kayla Pinkerton, also known as “Foxy,” 19, of Lee’s Summit, pleaded guilty in separate appearances before U.S. District Judge Gary A. Fenner to interstate transportation for prostitution.
By pleading guilty today, Wilson and Pinkerton admitted that they transported an individual across state lines to engage in prostitution in Kansas in December 2013.
Wilson advertised the victim for prostitution on Backpage.com and paid for a hotel room at the American Inn in North Kansas City, Mo. Wilson transported Pinkerton and the victim to various locations in Missouri and Kansas, including at least two trips to Overland Park, Kan., for the purpose of prostitution.
Pinkerton admitted that she took photographs of the victim and later uploaded them to the escort section of Backpage.com.
Under the terms of today’s plea agreements, Wilson will be sentenced to 10 years in federal prison without parole and Pinkerton is subject to a maximum sentence of 10 years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department, the FBI, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Illinois Man Sentenced to Prison for Possessing A Firearm as A FelonRead the Press Release
An Illinois man who purchased a handgun and more than 100 rounds of ammunition in Marion, Iowa, was sentenced to more than three years in prison yesterday in federal court in Cedar Rapids.
Montarrance Wilson, age 27, from Chicago, Illinois, received the prison term after a January 5, 2015, guilty plea to a one-count indictment charging him with being a felon in possession of a firearm and ammunition.
In a plea agreement, Wilson admitted that, on July 16, 2013, he purchased a handgun and more than 100 rounds of ammunition from a Marion, Iowa, man who had pawned the firearm. In exchange for $700, the man retrieved the firearm from the Marion pawnshop and sold it and the ammunition to Wilson. Later that same day, probation officers made an unannounced home visit to another felon’s apartment. Wilson fled when the officers knocked on the door. Inside, the officers found a bag belonging to Wilson containing the firearm and ammunition. Wilson was arrested in Illinois on these charges in November 2014, and was removed to this district to answer charges. Wilson was prohibited from possessing a firearm because he is a felon, having been convicted in 2007 of Deliver of Cocaine in Cook County, Illinois.
Wilson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wilson was sentenced to 37 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Wilson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the FBI Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-0084-LRR.Follow us on Twitter @USAO_NDIA.
Honduran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ESMIN ESPINOZA-ERAZO, age 25, a citizen of Honduras who resides in Hammond, pled guilty today to a one-count Indictment for illegal use of a Social Security Number (“SSN”).
According to the Indictment, on or about July 16, 2013, ESPINOZA-ERAZO submitted a SSN which did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana identification card. Based on that false submission, an employee with the Department of Motor Vehicles issued ESPINOZA-ERAZO a Louisiana identification card.
ESPINOZA-ERAZO faces a maximum term of imprisonment of not more than five years, a fine of $250,000, and a mandatory special assessment of $100.00. Additionally, ESPINOZA-ERAZO is also subject to a period of supervised release after imprisonment of up to three years. U.S. District Judge Kurt D. Engelhardt set sentencing for July 8, 2015.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TONY AXELL ROMERO-MONTOYA, age 28, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry into the United States.
According to the court documents, on February 25, 2015, Tony Axell Romero-Montoya was found in the United States after having been deported previously on September 17, 2012.
U.S. District Judge Sarah S. Vance set sentencing in this matter for May 13, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Tony Axell Romero-Montoya Factual Basis
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENYS JAVIER BENITEZ-FERNANDEZ, age 31, a citizen of Honduras, pled guilty to a one-count Indictment charging him with illegal reentry into the United States.
According to the court documents, on January 22, 2015, Denys Javier Benitez-Fernandez was found in the United States after having been deported on April 24, 2013.
U.S. District Judge Sarah S. Vance set sentencing for May 13, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Denys Benitez-Fernandez Factual Basis
Hobbs Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Luis Carlos Bujanda, 47, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 70 months in federal prison followed by two years of supervised release for his methamphetamine trafficking conviction.
Bujanda was arrested on Dec. 12, 2013, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Lea County, N.M., on Nov. 14, 2013. He subsequently was indicted in March 2014, on that same charge.
Court filings reflect that Bujanda was arrested by officers of the Lea County Drug Task Force on Nov. 14, 2013, when officers executed a search warrant at Bujanda’s residence in Hobbs and seized more than 500 grams of substances that tested positive for methamphetamine and $3,366.00 in cash.
On July 24, 2014, Bujanda entered a guilty plea to the indictment. In his plea agreement, Bujanda admitted possessing more than 431 grams of pure methamphetamine and $3,366.00 which were seized by officers when they executed a search warrant at his residence on Nov. 14, 2013. Under the terms of his plea agreement, Bujanda also was ordered to forfeit the currency seized from his residence and a Dodge Ram truck purchased with drug proceeds.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department, the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hazleton Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old Hazleton man pleaded guilty on March 31, 2015, before Senior U.S. District Court Judge Edwin M. Kosik in Scranton, to participating in a heroin and cocaine trafficking conspiracy during 2013.
According to United States Attorney Peter Smith, the defendant, Willy Perez, admitted that he conspired with others to distribute the drugs. FBI agents and Scranton Police seized approximately 2,000 bags of heroin from Perez during the investigation.
Perez was indicted by a federal grand jury in January 2014, as a result of an investigation by the Federal Bureau of Investigation, the Lackawanna County District Attorney’s Office and Scranton Police.
Perez faces up to 20 years in prison and a $1 million fine. Judge Kosik ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Hazleton Man Charged with Heroin Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal information was filed in U.S. District Court in Scranton charging Adam Castro, age 28, of Hazleton, with possession with intent to distribute heroin in Hazleton between September 2014 and January 2015.
According to U.S. Attorney Peter Smith, the case arose after investigators made purchases of heroin from Castro. On January 21, 2015, investigators obtained a search warrant for a residence on West Elm Street in Hazleton, where Castro was staying. As a result of the search, investigators seized approximately 1,050 bags of heroin, drug packaging materials and United States currency.
The government also filed a plea agreement in the case, which is subject to approval by the court.
The investigation was conducted by the Drug Enforcement Administration, the Hazleton Police Department and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for 20 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Hartford Men Charged with Witness Tampering, Retaliation Offenses Related to 2010 MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced that a federal grand jury sitting in Hartford has returned a 14-count second superseding indictment charging DOMINIQUE MACK, also known as “Lil Sweets,” 25, and TYQUAN LUCIEN, also known as “TQ” and “Frogger,” 22, both of Hartford, with a conspiracy to tamper with a witness by committing first degree murder. LUCIEN was also charged with multiple attempts to commit witness tampering and attempts to commit witness retaliation by attempting to solicit another person to murder a witness who was to testify in the matter of United States v. Mack.
MACK is also charged with witness tampering by committing first degree murder of Ian Francis. Keronn Miller was not charged in this indictment, as he already pleaded guilty for his role in the murder of Ian Francis. According to court documents and statements made in court, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011. MACK and others, known and unknown to the grand jury, is alleged to have murdered Francis with the intent to prevent MACK’s attendance at a federal proceeding and to prevent Francis and another person from communicating with a federal law enforcement officer or judge about the commission or possible commission of a federal crime, namely, narcotics trafficking. MILLER pleaded guilty to witness tampering by committing second degree murder in December, 2014. At his guilty plea hearing, Miller admitted to luring Ian Francis to Sigourney Street knowing that Francis would be murdered. Miller is awaiting sentencing.
This superseding indictment alleges that MACK and LUCIEN conspired to kill another witness to prevent him from appearing in the matter of United States v. Mack and from communicating with law enforcement information that the witness had about the Ian Francis murder and the unlawful use and possession of a firearm. LUCIEN is alleged to have attempted to tamper with this same witness by attempting to solicit another person to murder the witness. LUCIEN is also charged with attempting to solicit another person to murder the witness, and two other persons, including a minor victim, to retaliate against the witness for appearing before a federal grand jury and for providing information to law enforcement about the murder of Ian Francis and the unlawful use and possession of a firearm.
The second superseding indictment also charges MACK with two counts of possession of a firearm by a previously convicted felon.
The charges of witness tampering by committing first degree murder and conspiracy to commit witness tampering by committing first degree murder carry a mandatory lifetime term of imprisonment. The charges of attempted witness tampering and attempted witness retaliation carry a maximum term of 30 years’ imprisonment.
MACK and LUCIEN are in federal custody. MACK appeared today before U.S. Magistrate Judge Donna Martinez in Hartford and entered a plea of not guilty to the charges against him. LUCIEN appeared on March 30, 2015, before Judge Martinez, and entered a plea of not guilty to the charges against him
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALVARO D. CAMPOS, age 39, a citizen of Guatemala, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced CAMPOS to 7 months incarceration, followed by one year of supervised release, and a $100 special assessment. Following incarceration, CAMPOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, on or about October 1, 2014, CAMPOS was found in the United States after having been officially deported and removed on three prior occasions, most recently on or about November 14, 2013.
U.S. Attorney Polite praised the work of the United States Border Patrol in investigating this matter. Assistant United States Attorney Rick Veters was in charge of the prosecution.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALVARO D. CAMPOS, age 39, a citizen of Guatemala, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced CAMPOS to 7 months incarceration, followed by one year of supervised release, and a $100 special assessment. Following incarceration, CAMPOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, on or about October 1, 2014, CAMPOS was found in the United States after having been officially deported and removed on three prior occasions, most recently on or about November 14, 2013.
U.S. Attorney Polite praised the work of the United States Border Patrol in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Fourth Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
All Four Members Charged Have Now Pleaded Guilty
A fourth member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division made the announcement.
Austin Alcala, 19, of McCordsville, Indiana, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” A sentencing hearing is set before U.S. District Judge Gregory M. Sleet of the District of Delaware on July 29, 2015.
According to the statement of facts filed in connection with his guilty plea, Alcala was part of the hacking conspiracy between the spring of 2012 and April 2014. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also stole financial and other sensitive information relating to the companies—but not their customers—and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Alcala admitted in court that he was personally involved in hacking into and stealing log-in credentials and intellectual property from victim companies including Microsoft and Zombie Studios. Alcala further admitted that, on one occasion, he transmitted to co-conspirators a database file containing approximately 11,266 log-in credentials stolen from a victim company.
The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to the same conspiracy charge on Jan. 20, 2015, and remains in custody pending his sentencing hearing scheduled for May 2015.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada. The case is being prosecuted by Deputy Chief for Litigation James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
Fourth Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
WILMINGTON, Del. – A fourth member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division made the announcement.
Austin Alcala, 19, of McCordsville, Indiana, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” A sentencing hearing is set before U.S. District Judge Gregory M. Sleet of the District of Delaware on July 29, 2015.
According to the statement of facts filed in connection with his guilty plea, Alcala was part of the hacking conspiracy between the spring of 2012 and April 2014. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also stole financial and other sensitive information relating to the companies—but not their customers—and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Alcala admitted in court that he was personally involved in hacking into and stealing log-in credentials and intellectual property from victim companies including Microsoft and Zombie Studios. Alcala further admitted that, on one occasion, he transmitted to co-conspirators a database file containing approximately 11,266 log-in credentials stolen from a victim company.
The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to the same conspiracy charge on Jan. 20, 2015, and remains in custody pending his sentencing hearing scheduled for May 2015.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada. The case is being prosecuted by Deputy Chief for Litigation James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
Former worker at Toledo hospital indicted for illegally accessing patient informationRead the Press Release
A former respiratory therapist at a Toledo hospital was indicted for obtaining individually identifiable health information and unauthorized access of a protected computer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jamie Knapp, 25, of Adrian, Mich., allegedly accessed the information without authorization between May 2013 and March 2014, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo – Resident Agency. The case is being handled by Assistant United States Attorneys Noah P. Hood and Gene Crawford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Owner of Defense Contracting Businesses Pleads Guilty to Illegally Exporting Military Blueprints to India Without a LicenseRead the Press Release
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Paul J. Fishman of the District of New Jersey announced that the former owner of two New Jersey defense contracting businesses today admitted that she conspired to send sensitive military technical data to India.
Hannah Robert, 49, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson of the District of New Jersey to count six of a superseding indictment, which charged her with conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval from the U.S. Department of State.
“Hannah Robert circumvented the U.S. government and provided defense technical drawings in violation of the Arms Export Control Act,” said Assistant Attorney General Carlin. “We will continue to pursue and hold accountable those who abuse their access to sensitive defense information. I would like to thank all of the special agents, prosecutors and other personnel whose work led to the guilty plea in this case.”
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” said U.S. Attorney Fishman. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as “P.R.,” Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, military attack helicopters and F-15 fighter aircrafts.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. e-mailed Robert requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010, Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s U.S. customers failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
Count six of the superseding indictment – conspiracy to violate the Arms Export Control Act – is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. As part of her plea agreement, Robert must pay $181,015 to the DoD, which includes the cost of repair for the grounded F-15s. Robert also consented to a forfeiture money judgment of $77,792, which represents the dollar value of Robert’s fraudulent contracts with DoD.
The Arms Export Control Act prohibits the export 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.
The case was investigated by the special agents of the Defense Criminal Investigative Service’s Northeast Field Office and the special agents of the Department of Homeland Security’s Counter Proliferation Investigations.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and L. Judson Welle of the District of New Jersey. The prosecution received invaluable support from attorneys of the U.S. Department of Justice’s National Security Division.
Former Owner of Defense Contracting Businesses Pleads Guilty to Illegally Exporting Military Blueprints to India Without A LicenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses today admitted that she conspired to send sensitive military technical data to India, U.S. Attorney Paul J. Fishman announced.
Hannah Robert, 49, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson to Count Six of a superseding indictment, which charged her with conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval of the U.S. Department of State.
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” U.S. Attorney Fishman said. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner, and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as “P.R.,” Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, in military attack helicopters, and in F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. e-mailed Robert requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010 Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia, and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s United States customers, failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
Count Six of the superseding indictment – conspiracy to violate the Arms Export Control Act – is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. As part of her plea agreement, Robert must pay $181,015 to the U.S. Department of Defense, which includes the cost of repair for the grounded F-15s. Robert also consented to a forfeiture money judgment of $77,792, which represents the dollar value of Robert’s fraudulent contracts with the U.S. Department of Defense. Sentencing is scheduled for June 26, 2015.
The Arms Export Control Act prohibits the export 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.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert; and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit. The prosecution received invaluable support from attorneys of the U.S. Department of Justice’s National Security Division, Counterespionage Section.
Defense counsel: David Schafer Esq., Lawrenceville, New Jersey
robert_hannah_superseding_indictment.pdf
Former NBA star Chris Herren to share inspiring story of drug addiction, recovery with Ohio Valley studentsRead the Press Release
WHEELING, WEST VIRGINIA – With West Virginia leading the nation in drug overdose deaths, community leaders remain dedicated to providing impactful, effective drug education for local students. Next week, former National Basketball Association standout Chris Herren will return to the Ohio Valley for the third time to share the powerful story of his struggle with addiction.
On Thursday, April 9, 2015, Herren will address students in Ohio and Wetzel Counties. First, he will visit Wheeling Park High School to lead a discussion with students from Wheeling Park and The Linsly School. Later, he will visit Magnolia High School in Wetzel County to address students from Magnolia, Paden City, Hundred, and Valley High Schools.
After an explosive debut as an All-American basketball star at Durfee High School in Massachusetts, Herren played at Boston College and Fresno State. Capturing the attention of the NBA, Herren was drafted by the Denver Nuggets. He would also play several seasons for the Boston Celtics. Behind the scenes, alcohol, cocaine, and heroin abuse nearly cost Herren his life.
Leveraging his own experience to educate and inspire young people, Herren tours the country speaking about substance abuse and addiction through his Project Purple program. Project Purple is an initiative of the Herren Project, a non-profit organization founded by Herren to break the stigma of addiction, bring awareness to the dangers of substance abuse, and shed light on effective treatment.
Herren’s presentations on April 9, 2015 are not open to the public. Future public events will be scheduled. Anyone interested in scheduling future events are encouraged to contact the United States Attorney’s Office at (304) 234-0100.
Former Fort Benning Soldier Sentenced for Possessing Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced today that David Schaefer, age 27, formerly of Fort Benning, Georgia, was sentenced on March 31, 2015, to serve 8 years (97 months) imprisonment for possession of child pornography by the Honorable Clay D. Land, United States District Judge in Columbus, Georgia. Mr. Schaefer had entered a guilty plea to these charges on December 8, 2014.
This case was initiated in October, 2013, when the Georgia Bureau of Investigation and the United States Department of Homeland Security Investigations were separately investigating the sharing of child pornography on the Ares peer-to-peer file sharing network. Both agencies downloaded child pornography from a user on the network that was ultimately identified as the defendant, David Schaefer. At that time Mr. Schaefer was an enlisted soldier in the U.S. Army stationed at Fort Benning. The U.S. Army Criminal Investigation Division executed a search warrant on the defendant’s home, resulting in a computer being seized that contained 368 videos and 27 images of suspected child pornography. These were subsequently submitted to the National Center for Missing and Exploited Children (NCMEC), which verified that three images and 46 movies contained sexually graphic depictions of confirmed minors previously identified by law enforcement.
“Child pornography involves the exploitation of the most vulnerable members of society and robs them of both their innocence and dignity at an early age, leaving scars that last a lifetime. My office views prosecutions such as this as one of our top priorities,” said U.S. Attorney Michael J. Moore.
The case was investigated by the Georgia Bureau of Investigation, Army CID and U.S. Homeland Security Investigations. Assistant United States Attorney Crawford L. Seals prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Former Chickasaw Country Club Payroll Clerk Sentenced to 18 Months in Federal Prison for Stealing $736,000Read the Press Release
Memphis, TN – A Memphis woman has been sentenced to 18 months in federal prison for defrauding Chickasaw Country Club of approximately $736,000. There is no parole in the federal prison system.
Sue M. Winfrey, 58, of Memphis, TN was sentenced this morning by United States District Court Judge John T. Fowlkes. Winfrey pled guilty on January 7, 2015 to one count of wire fraud in connection with a scheme to defraud Chickasaw Country Club.
According to the indictment returned in October 2014, beginning in 2003, Winfrey, a former payroll clerk for Chickasaw County Country Club, would submit fraudulent payroll data to Chickasaw’s payroll processor, Paychex of New York. As a result of these falsified submissions, Winfrey received approximately $736,000, which was deposited electronically into Winfrey’s bank accounts at Bank of America.
In addition to the prison sentence, Winfrey was ordered to serve two years of supervised release and pay restitution to Chickasaw Country Club in the amount of $486,000 and to Traveler’s Indemnity Company in the amount of $250,000.
This case was investigated by the United States Secret Service. The government’s case was prosecuted by Assistant U.S. Attorney Carroll L. Andre III.
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Former CEO of Technology Start-Up Sentenced to 24 Months for Wire Fraud SchemeRead the Press Release
SAN FRANCISCO – Jonathan Edward Mills, the former Chief Executive Officer of a San Francisco-based technology company, was sentenced to 24 months’ imprisonment yesterday, and ordered to pay $572,039 in restitution for his involvement in a wire fraud scheme, announced U.S. Attorney Melinda Haag, and FBI Special Agent in Charge David J. Johnson.
Mills, 30, pleaded guilty on October 7, 2014, to two counts of wire fraud, in violation of Title 18, United States Code, § 1343. According to the plea agreement, Mills founded Motionloft, Inc., a technology company, and served as its CEO until he was fired in December 2013. In the plea agreement, Mills also admits he falsely told several individuals that Motionloft was going to be acquired by a well-known Silicon Valley multinational corporation, and that their investment in Motionloft would reap massive profits after the acquisition. Mills made these false representations knowing he had no authority to sell a stake in Motionloft, and knowing no acquisition was in the works. When the fictitious acquisition failed to materialize, Mills made another series of misrepresentations, including claiming there was a delay caused by the government shutdown and by the financial institutions. Mills then spent a substantial amount of the monies his victim-investors gave him for his personal enjoyment, including renting a private jet, a penthouse suite, and lavish vacations.
The sentence was handed down by the Honorable Richard Seeborg, United States District Judge. Judge Seeborg also sentenced Mills to a three-year term of supervised release, and remanded him into custody at the time of sentencing.
Assistant U.S. Attorney Kim A. Berger prosecuted the case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Foreign Corporation and its Managers Plead Guilty to Export ViolationsRead the Press Release
AMA United Group Admits Violation of Arms Export Control Act; Principals Acknowledge Failure to File Shipping Records with U.S. Government Regarding Munitions Destined for Egypt
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York and Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office announced that earlier today, AMA United Group, Malak Neseem Swares Boulos and Amged Kamel Yonan Tawdraus pleaded guilty at the federal courthouse in Brooklyn, New York, to violating U.S. export regulations in connection with the attempted shipment of munitions samples from New York City to Egypt. AMA United Group, an Egyptian procurement agent, entered a guilty plea to violating the Arms Export Control Act. Boulos and Tawdraus, Egyptian citizens and partners in AMA United Group, pleaded guilty to failing to file required export information relating to the international shipment of a landmine and multiple bomb bodies. According to court filings and facts presented during the plea proceeding, Boulos and Tawdraus were arrested after attempting to close a deal to acquire and export the items, which were included on the U.S. Munitions List and regulated by the U.S. Department of State.
“These defendants failed to comply with the strict regulations that govern the export of dangerous munitions,” said U.S. Attorney Lynch. “Today’s convictions should help ensure that those who refuse to follow these obligations should expect to face serious consequences, including individual and corporate penalties.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS and the U.S. Attorney’s Office of the Southern District of New York for its assistance.
“Boulos, Tawdraus and AMA United Group were involved in the illegal export of components vital to explosives in an aerial warhead,” said Assistant Attorney General Carlin. “By purposefully evading U.S. law, including the Arms Export Control Act, the defendants could have done great harm to our nation’s security. I would like to thank the many offices involved in securing this plea agreement.”
“Investigating potential violations of the Arms Export Control Act is a top national security priority for HSI as it ensures military technology such as these landmines do not fall into the wrong hands” said Special Agent in Charge Parmer. “In this instance, our partnership with DCIS and the U.S. Attorney’s office sends a strong message that violating U.S. export laws will not be tolerated.”
“This investigation demonstrates the ongoing commitment that the Defense Criminal Investigative Service has to pursue individuals who are intent on acquiring and illegally exporting military grade munitions,” said Special Agent in Charge Rupert. “DCIS will continue to work with its law enforcement partners, such as HSI and the U.S. Attorney’s Office, to methodically and successfully investigate these types of allegations and protect America’s Warfighters.”
Beginning in February 2011, the defendants began trying to obtain munitions items on behalf of AMA United Group’s client, a factory in Cairo. The items the defendants sought included a land mine as well as bomblet bodies and “trumpet liners,” two components that are integral to manufacturing the housings for explosives in an aerial warhead. In July 2011, the defendants traveled from Cairo to New York City to inspect the items. On July 1, 2011, the three principals of AMA United Group attempted to ship samples to its client in Egypt. Boulos and Tawdraus failed to file any export information in connection with the attempted shipment. The requirement to file accurate information regarding the contents of international shipments is one layer of regulatory oversight pertaining to protecting the U.S. national security and diplomatic interests.
Today’s pleas took place before U.S. District Judge Eric N. Vitaliano of the Eastern District of New York. When sentenced, defendants Tawdraus and Boulos face up to five years in prison, as well as criminal forfeiture and fines. Each of the defendants also faces export sanctions, including the denial of export privileges by the U.S. Department of Commerce, the U.S. Department of the Treasury and the U.S. Department of State.
The government’s case is being prosecuted by Assistant U.S. Attorneys Seth DuCharme and David Pitluck of the Eastern District of New York, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
Foreign Corporation and Its Managers Plead Guilty to Export ViolationsRead the Press Release
Earlier today, AMA United Group, Malak Neseem Swares Boulos, and Amged Kamel Yonan Tawdraus pled guilty at the federal courthouse in Brooklyn, New York, to violating U.S. export regulations in connection with the attempted shipment of munitions samples from New York City to Egypt. AMA United Group, an Egyptian procurement agent, entered a guilty plea to violating the Arms Export Control Act. Boulos and Tawdraus, Egyptian Citizens and partners in AMA United Group, pled guilty to failing to file required export information relating to the international shipment of a landmine and multiple bomb bodies. According to court filings and facts presented during the plea proceeding, Boulos and Tawdraus were arrested after attempting to close a deal to acquire and export the items, which were included on the United States Munitions List and regulated by the United States Department of State.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security, Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; and Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
“These defendants failed to comply with the strict regulations that govern the export of dangerous munitions,” stated United States Attorney Lynch. “Today’s convictions should help ensure that those who refuse to follow these obligations should expect to face serious consequences, including individual and corporate penalties.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, and the U.S. Attorney’s Office for the Southern District of New York for its assistance.
“Investigating potential violations of the Arms Export Control Act is a top national security priority for HSI as it ensures military technology such as these landmines do not fall into the wrong hands” said Special Agent in Charge Parmer, HSI New York. “In this instance, our partnership with DCIS and the United States Attorney’s office sends a strong message that violating U.S. export laws will not be tolerated.”
“This investigation demonstrates the ongoing commitment that the Defense Criminal Investigative Service has to pursue individuals who are intent on acquiring and illegally exporting military grade munitions,” said Special Agent in Charge Rupert, DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners, such as HSI and the U.S. Attorney’s Office, to methodically and successfully investigate these types of allegations and protect America’s Warfighters.”
Beginning in February 2011, the defendants began trying to obtain munitions items on behalf of AMA United Group’s client, a factory in Cairo, Egypt. The items the defendants sought included a land mine as well as bomblet bodies and “trumpet liners,” two components that are integral to manufacturing the housings for explosives in an aerial warhead. In July 2011, the defendants traveled from Cairo to New York City to inspect the items. On July 1, 2011, the three principals of AMA United Group attempted to ship samples to its client in Egypt. Defendants Boulos and Tawdraus failed to file any export information in connection with the attempted shipment. The requirement to file accurate information regarding the contents of international shipments is one layer of regulatory oversight pertaining to protecting the U.S. national security and diplomatic interests.
Today’s pleas took place before United States District Judge Eric N. Vitaliano. When sentenced, defendants Tawdraus and Boulos face up to five years in prison, as well as criminal forfeiture and fines. Each of the defendants also faces export sanctions, including the denial of export privileges by the United States Department of Commerce, the United States Department of the Treasury, and the United States Department of State.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Seth DuCharme and David Pitluck are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
The Defendants:
MALAK NESEEM SWARES BOULOS
Age: 43
Cairo, Egypt
AMGED KAMEL YONAN TAWDRAUS
Age: 33
Cairo, Egypt
E.D.N.Y. Docket No. 13-CR-612 (ENV)
Floridian Sentenced to Prison, Fined for Filing False Income TaxesRead the Press Release
JOHNSTOWN, Pa. - A resident of Palm Beach Fla., has been sentenced in federal court to six months in prison, one year supervised release and a fine of $50,000 on his conviction of filing false income tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Robert Paltrow.
According to information presented to the court, Paltrow filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $4,787,222 in taxable income, resulting in an underpayment of $798,969 in income tax owed to the United States.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Paltrow.
Five Sentenced to Prison for Elaborate Advance-Fee ScamRead the Press Release
PHOENIX – On March 30 and 31, 2015, U.S. District Judge Neil V. Wake sentenced five defendants to prison for stealing more than $11 million through an elaborate advance-fee scam. Judge Wake sentenced Steven Thomas Brewer of Dallas, TX, to 15 years plus eight months of imprisonment; Joel Stephen Cutulle of Middleton, MA, to nine years of imprisonment; Kenny Ray Kirby of Corinth, TX, to five years of imprisonment; Debra Ann Nickolas of Stanbury Park, UT, and formerly of Scottsdale, Ariz., to five years of imprisonment; and David P. Rachel of Mableton, GA, to three years of imprisonment. Steven Brewer, Joel Cutulle, Kenny Kirby, and David Rachel were found guilty by a federal jury on Oct. 8, 2014, of charges including criminal conspiracy, wire fraud, and money laundering. Debra Nickolas pleaded guilty on Aug. 11, 2014, to conspiracy and tax evasion.
Evidence at trial showed that the defendants stole more than $11 million by using fake companies-including Platinum Diversified Holdings (PDH) and HS&H Holdings-through which the defendants claimed they could secure loans for the victims’ business projects. At the time of the offense, Debra Nickolas lived in Scottsdale, Ariz., and two of the victims were from Arizona.
In exchange for purportedly securing the loans, the defendants demanded refundable deposits, which were supposed to be held in an attorney’s escrow account until the loans funded. In reality, the attorneys, Kenny Kirby and David Rachel, were co-conspirators who transferred the victims’ money to themselves and their co-conspirators, often within days. The victims’ money was spent on cars, luxury vacations, interior design services, tickets to sporting events, and other personal items. The scheme continued for years, with the defendants concealing the fraud by providing the victims false bank documents and other assurances to convince them that funding was imminent. The defendants never funded any business loans and the victims never received any of their money back.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by James R. Knapp and Karen S. McDonald, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1927-PHX-NVW
RELEASE NUMBER: 2015-029_Nickolas et al
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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