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Wednesday 11 February 2015
Son of Former Cartel Boss Convicted of Attempting to Export Ammunition into MexicoRead the Press Release
BROWNSVILLE, Texas - Osiel Cardenas Jr., 23, of Brownsville, has entered a plea of guilty to attempting to export ammunition into Mexico, announced U.S. Attorney Kenneth Magidson. Cardenas is the son of former head of the Gulf Cartel – Osiel Cardenas-Guillen – who was convicted and sentenced to 25 years in federal prison and ordered to pay a money judgment of $50 million.
On Dec. 31, 2014, Customs and Border Protection (CBP) officers were conducting south-bound inspection operations at the Brownsville and Matamoros International Port of Entry in Brownsville. Cardenas Jr. approached the inspection area driving a 2015 Cadillac Escalade and attempted to exit the U.S. and enter Matamoros, Mexico. He advised officers that he had no money, weapons or ammunition to declare. However, a subsequent search of the vehicle led to the discovery of 489 rounds of 9mm, .223mm and 7.62mm ammunition as well as two .223 rifle magazines.
Cardenas Jr. admitted that the ammunition seized from his vehicle belonged to him and that he had concealed it in order to avoid inspection because he knew that it was illegal to export them into Mexico. He stated that he did not have and had not ever applied for a U.S. Department of State license to export firearms or ammunition. He also admitted he had seen the signs posted near the Port of Entry stating it was against the law to take ammunition into Mexico.
U.S. District Judge Andrew Hanen accepted the plea today and has set sentencing for May 18, 2015, at which time Cardenas Jr. faces a up to 10 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation by CBP and Homeland Security Investigations. Assistant U.S. Attorneys Angel Castro and Jody Young are prosecuting the case.Sisters-in-Law and Former Tax Preparers Plead Guilty to Tax Fraud ConspiracyRead the Press Release
On Feb. 10, two former tax return preparers pleaded guilty in the U.S. District Court for the Middle District of Georgia to conspiring to defraud the United States by filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division.
According to court documents, from at least January 2008 through at least March 2010, sisters-in-law Angela Miller and Lee Lynwood operated a tax return preparation business and conspired to inflate their clients’ federal tax refunds by manipulating the tax returns to reflect false business income or loss amounts and to claim deductions and credits, such as the First-Time Homebuyer Credit, that the clients were not entitled to receive.
“The Department of Justice’s Tax Division, working with Internal Revenue Service-Criminal Investigation and the Offices of the U.S. Attorneys, is committed to prosecuting to the fullest extent of the law tax return preparers who willfully assist in the preparation and filing of false and fraudulent returns,” said Principal Deputy Assistant Attorney General Ciraolo.
Miller and Lynwood also took steps to continue their scheme by impeding the Internal Revenue Service’s (IRS) efforts to shut down their ability to electronically file tax returns. In May 2008, the IRS notified Miller and Lynwood that their Electronic Filing Number (EFIN) for filing electronic returns at their tax preparation business, A&L Tax Services, was being revoked. Miller and Lynwood then had an acquaintance apply for another EFIN in her name, which Miller and Lynwood used to continue to file fraudulent tax returns and conceal their preparation from the IRS. Further, Miller and Lynwood changed the name of their business to B&F Tax Services and caused a bank account for the B&F Tax Services to be opened in the acquaintance’s name as a nominee.
Miller and Lynwood filed false tax returns that claimed more than $130,000 in tax refunds during the course of the conspiracy. Miller and Lynwood each face a statutory maximum term of five years in prison, three years of supervised release and a fine of up to $250,000. Sentencing has not yet been scheduled.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the D.C. Office of Tax and Revenue Criminal Investigation Division, who investigated the case, as well as Tax Division Trial Attorneys Hayden M. Brockett and Alex R. Effendi, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Middle District of Georgia for their assistance.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Sisters-In-Law and Former Tax Return Preparers Plead Guilty to Tax Fraud ConspiracyRead the Press Release
WASHINGTON – On Feb. 10, two former tax return preparers pleaded guilty in the U.S. District Court for the Middle District of Georgia to conspiring to defraud the United States by filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division.According to court documents, from at least January 2008 through at least March 2010, sisters-in-law Angela Miller and Lee Lynwood operated a tax return preparation business and conspired to inflate their clients’ federal tax refunds by manipulating the tax returns to reflect false business income or loss amounts and to claim deductions and credits, such as the First-Time Homebuyer Credit, that the clients were not entitled to receive.
“The Department of Justice’s Tax Division, working with Internal Revenue Service-Criminal Investigation and the Offices of the U.S. Attorneys, is committed to prosecuting to the fullest extent of the law tax return preparers who willfully assist in the preparation and filing of false and fraudulent returns,” said Principal Deputy Assistant Attorney General Ciraolo.
Miller and Lynwood also took steps to continue their scheme by impeding the Internal Revenue Service’s (IRS) efforts to shut down their ability to electronically file tax returns. In May 2008, the IRS notified Miller and Lynwood that their Electronic Filing Number (EFIN) for filing electronic returns at their tax preparation business, A&L Tax Services, was being revoked. Miller and Lynwood then had an acquaintance apply for another EFIN in her name, which Miller and Lynwood used to continue to file fraudulent tax returns and conceal their preparation from the IRS. Further, Miller and Lynwood changed the name of their business to B&F Tax Services and caused a bank account for the B&F Tax Services to be opened in the acquaintance’s name as a nominee.
Miller and Lynwood filed false tax returns that claimed more than $130,000 in tax refunds during the course of the conspiracy. Miller and Lynwood each face a statutory maximum term of five years in prison, three years of supervised release and a fine of up to $250,000. Sentencing has not yet been scheduled.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the D.C. Office of Tax and Revenue Criminal Investigation Division, who investigated the case, as well as Tax Division Trial Attorneys Hayden M. Brockett and Alex R. Effendi, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Middle District of Georgia for their assistance.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Shelby County, Tennessee High Intensity Drug Trafficking Area Task Force Receives National RecognitionRead the Press Release
Memphis, Tenn. – White House Drug Control Policy Director Michael Botticelli has awarded the Shelby County, TN High Intensity Drug Trafficking Area Program (HIDTA) Task Force the 2014 national award for Outstanding Prescription Drug Investigative Effort, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee; and Brian Chambers, Resident Agent in Charge, Drug Enforcement Administration – Memphis Resident Office.
Receiving the award at last week’s ceremony in Washington, DC were members of the Drug Enforcement Administration – Memphis Resident Office; Shelby County Sheriff’s Office; Memphis Police Department; and the United States Attorney’s Office for the Western District of Tennessee. These law enforcement officials were recognized for their joint work in a multi-state prescription drug investigation that led to the arrest of 56 individuals in Los Angeles, California; Little Rock, Arkansas; and Memphis, Tennessee.
United States Attorney Stanton, who has served on the Executive Board of Directors for the Gulf Coast HIDTA since 2010, congratulated the Shelby County HIDTA Task Force on receiving this national recognition and prestigious award. “Close collaboration with our federal, state and local law enforcement partners is critical to dismantling drug trafficking rings at the highest levels and ridding our communities of the drugs and violence associated with these dangerous organizations. This well-deserved award is a true testament to the outstanding work of a team of dedicated professionals committed to combatting the drug trade throughout west Tennessee and beyond,” United States Attorney Stanton said.
Disrupting and dismantling drug trafficking organizations is fundamental to the mission of the Gulf Coast HIDTA. In furtherance of this goal, members of the Shelby County HIDTA Task Force initiated a two-year investigation on two separate drug trafficking organizations operating in the Gulf Coast HIDTA area. These drug trafficking organizations were responsible for distributing large amounts of Dilaudid and oxycodone pills, which are narcotic pain relievers. During this investigation, intelligence gathered from intercepted calls and defendant interviews demonstrated that these drug trafficking organizations were distributing 250,000 oxycodone and Dilaudid pills annually. The investigation resulted in the dismantlement of these drug trafficking United States Attorney Edward L. Stanton III Western District of Tennessee organizations and the arrest of 56 individuals on federal and state charges. Fourteen individuals were indicted federally, and 27 were indicted in state court in Tennessee. Also, based on additional information provided to the Drug Enforcement Administration in Little Rock, 15 people were indicted on federal charges.
In total, 56 individuals were arrested in this multijurisdictional investigation. Agents in Tennessee seized 1,282 oxycodone pills, 990 Dilaudid pills, 1,704 hydrocodone pills, 476 alprazolam pills, 313 Adderall pills, and 375 Dexedrine pills. Agents also seized $46,281 in U.S. currency, $231,269.82 in financial instruments, and three residences (valued at $300,000) in Terrell, Texas.
The Office of National Drug Control Policy’s HIDTA program provides federal resources to designated areas to help reduce drug trafficking and its harmful consequences. Law enforcement organizations within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, manufacture, transportation, distribution, and chronic use of drugs and money laundering. The HIDTA program plays a vital role in making the nation safer and healthier by reducing drug use and its consequences. There are currently 28 HIDTAs, which include approximately 16 percent of all counties in the United States and 60 percent of the U.S. population. HIDTA-designated counties are located in 46 states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
United States Attorney Stanton also commended the agencies that comprise the Shelby County, TN HIDTA Task Force for their efforts in securing the award and for the overall success of the HIDTA program. These agencies include the Drug Enforcement Administration – Memphis Resident Office; Memphis Police Department; Shelby County Sheriff’s Office; Millington Police Department; Bartlett Police Department; Germantown Police Department; Collierville Police Department; Tipton County Sheriff’s Department; the Attorney General’s Office for the 25th Judicial District; and the Attorney General’s Office for the 30th Judicial District.
Pictured below are the following individuals from the Shelby County, TN HIDTA Task Force who attended the National HIDTA Awards Banquet in Washington, DC on February 5, 2015. They are from left to right:
Front Row (L to R): Tony Soto, Director – Gulf Coast HIDTA; Michael Botticelli, Director – Office of National Drug Control Policy; Brian Chambers, Resident Agent in Charge – DEA; Mary Lou Leary, Deputy Director – Office of National Drug Control Policy; Edward L. Stanton III, U.S. Attorney – U.S. Attorney’s Office.
Back Row (L to R): Lt. Robert McIntyre – Memphis Police Dept.; Garrison Taylor, Task Force Officer – DEA; Mark Dunbar, Asst. Chief – Shelby Co. Sheriff’s Office; Ian James, Detective – Memphis Police Dept.; Colonel Ralph Gary – Memphis Police Dept.; William Cash, Chief Deputy – Shelby Co. Sheriff’s Office; Michael Jackson, Detective – Memphis Police Dept.; William J. Renton, Jr., Deputy Director – Gulf Coast HIDTA; Tyler Gustafson, Special Agent – DEA; Michelle Parks, AUSA – U.S. Attorney’s Office.
Spanish Version
Seven Tampa Residents Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that seven individuals have pleaded guilty to engaging in a conspiracy to file fraudulent income tax returns. Brandon Gilchrist, Donterrio Troup, Terrance Johnson, Tanisha Johnson, and Shadae Cotton each pleaded guilty to conspiracy to commit theft of government funds and aggravated identity theft and theft of government funds. Each faces up to 15 years in federal prison. Mikeil Royal has pleaded guilty to conspiracy and aggravated identity theft. He faces a maximum penalty of five years’ imprisonment for the conspiracy count, to be followed by a mandatory two year term of imprisonment for the identity theft count. Kenneth Royal has pleaded guilty to conspiracy and theft of government funds charges and faces a maximum sentence of 15 years in federal prison. Sentencing dates have not yet been set.
According to court documents, the conspirators opened accounts at various local financial institutions and used those accounts to receive fraudulent income tax refunds. The conspirators caused the filing of numerous fraudulent federal income tax returns on behalf of deceased persons, usually individuals who shared the same last name as the defendant. As a consequence, the IRS wired income tax refunds, to which these individuals were not entitled, into the accounts previously established at their banks. The total loss to the IRS from this conspiracy was almost $488,658.00.
This case was investigated by the Internal Revenue Service-Criminal Investigation, with assistance from the Federal Bureau of Investigation and the Hillsborough County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
San Juan County Man Pleads Guilty to Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Casey Wayne Stallings, 30, of Kirtland, N.M., entered a guilty plea in federal court this morning to methamphetamine trafficking and firearm charges. Under the terms of his plea agreement, Stallings will be sentenced to 15 years in federal prison. His co-defendant, Jessica Chance Lucero, 25, also of Kirtland, N.M., entered a guilty plea to misprision of a felony.
Stallings and Lucero were arrested on May 22, 2014, on an indictment charging them with methamphetamine trafficking and firearms charges. Counts 1 and 2 charged Stallings and Lucero with conspiracy and possession of methamphetamine with intent to distribute. Count 3 charged the defendants with using and carrying a firearm in relation to a drug trafficking crime. Counts 4 and 5 respectively charged Stallings and Lucero with being felons in possession of a firearm. According to the indictment, the defendants committed the five offenses in San Juan County, N.M., on Jan. 27, 2014.
During today’s change of plea hearing, Stallings pled guilty to Counts 2 and 3 of the indictment. In his plea agreement, Stallings admitted that he was a drug dealer and that on Jan. 27, 2014, he possessed a large quantity of methamphetamine at his residence that he intended to sell to his drug customers. Stallings also admitted that he kept a firearm in his residence for the purpose of protecting himself from drug customers and other drug dealers who might try to rob him. Stallings admitted that he was prohibited from possessing firearms and ammunition due to his previous felony convictions of charges of robbery, possession of a controlled substance, possession of marijuana, and aggravated assault with a deadly weapon.
Lucero pled guilty to an information charging her with misprision of a felony, and admitted that on Jan. 27, 2014, she failed to report to law enforcement that Stallings was committing federal felony offenses at their residence. More specifically, Lucero admitted knowing that Stallings was selling methamphetamine out of their residence and that he possessed a firearm despite his status as a convicted felon.
Under the terms of his plea agreement, Stallings will be sentenced to 15 years in prison followed by a term of supervised release to be determined by the court. Lucero faces a statutory maximum penalty of three years of imprisonment of three years. Their sentencing hearings have yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Region II HIDTA Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorneys Lynn Wei-Yu Wang and Samuel A. Hurtado.
The Region II HIDTA Narcotics Task Force is comprised of officers from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which 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.
San Felipe Pueblo Man Sentenced to Federal Prison for Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Daniel Phillip Tenorio, 55was sentenced today in federal court in Santa Fe, N.M., to 51 months in prison to be followed by five years of supervised release. He will be required to register as a sex offender after completing his prison sentence. Tenorio was sentenced based on a jury’s guilty verdict on sexual abuse charges. Tenorio’s sentence was announced by U.S. Attorney Damon P. Martinez and William McClure, Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Tenorio, 55, a member and resident of San Felipe Pueblo in Sandoval County, N.M., was indicted in Sept. 2013, and charged with two counts of abusive sexual contact by use of force. According to the indictment, Tenorio had unlawful sexual contact with the victim between Jan. 2011 and Dec. 2011, in locations with San Felipe Pueblo in Sandoval County, N.M. Tenorio was convicted on both counts of the indictment on Aug. 21, 2014, following a four-day trial.
The evidence at trial established that on Jan. 24, 2012, the BIA initiated an investigation into Tenorio after receiving a referral from a school counselor reporting that a 16-year-old San Felipe Pueblo girl had disclosed possible sexual abuse. The victim testified about Tenorio’s practice of grabbing and fondling her breasts and bottom and making sexually explicit comments about what he wanted to do to her. Witnesses testified that they observed Tenorio grab and fondle the victim and direct sexually explicit remarks to her.
The evidence before the jury included two audio-taped interviews of Tenorio. During the first interview, Tenorio denied the victim’s allegations, but later admitted touching the victim in inappropriate ways and discussing sex in front of her. During the second interview, Tenorio admitted grabbing and fondling the victim’s chest and bottom and saying that he wanted to engage in sexual acts with her. He also admitted lying to the law enforcement officers when he initially denied the victim’s allegations. The evidence also included a handwritten statement by Tenorio in which he admitted having lied to the BIA and FBI when he denied the victim’s allegations, apologized for the way he treated the victim, and expressed remorse for his improper conduct. Tenorio testified in his own defense and claimed that he was coerced into admitting that he had improper sexual contact with the victim.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services with assistance from the Albuquerque office of the FBI, and was prosecuted by Assistant U.S. Attorneys Kyle T. Nayback and Novaline D. Wilson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Rochester Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Wayne Spencer, 31, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 121 months by U.S. District Court Judge Charles J. Siragusa.Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that between January 2010 and April 2014, the defendant was engaged in a conspiracy to sell cocaine in the Rochester area. On April 28, 2014, during a search of his residence by the Monroe County Probation Office, officers located a loaded semiautomatic handgun and approximately 450 grams of cocaine, a digital scale and numerous unused baggies commonly used to package cocaine for resale, in addition to the loaded firearm.
The sentencing is the culmination of an investigation on the part of the Monroe County Probation Office, under the direction of Chief Probation Officer Robert Burns, as well as officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Ridgeway Man Sentenced to 5 Years in Prison for Marijuana OffensesRead the Press Release
Follow @SDILNewsRyan Earl Bess, 34, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a 5 year prison term for conspiring with two other individuals to grow more than 100 marijuana plants, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Bess, and codefendants Daniel J. Fulkerson and Paul E. Reynolds, were charged by a Federal Grand Jury on September 5, 2012, with one count of conspiring to grow more than 100 marijuana plants and one count of actually growing the plants in Gallatin County between April 2012 and August 29, 2012. Ryan fled Illinois following his indictment and was arrested in Colorado in May 2014. He pled guilty to the charges on October 22nd.
In addition to the 5 year prison sentence, Bess was ordered to pay fines and special assessments totaling $400 to the United States and was placed on a 4 year term of supervised release to follow his incarceration. Following his sentencing, Bess was returned to the custody of the United States Marshal, where has been held without bond since his arrest in Colorado, to await designation to a Federal Bureau of Prisons facility.
Fulkerson and Reynolds also previously pled guilty to the charged offenses and were sentenced to prison terms of 60 months and 120 months, respectively.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and was prosecuted by Assistant United States Attorney James M. Cutchin.
Richmond Man Sentenced to 120 Months for Possessing FirearmRead the Press Release
RICHMOND, Va. – Robert L. Coley, 29, of Richmond, Virginia, was sentenced today to 120 months in prison, followed by 3 years of supervised release, for possessing a firearm as a convicted felon. Coley was also sentenced to a concurrent term of 18 months in prison for violating the terms of supervised release imposed in connection with his previous federal conviction.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. and Senior U.S. District Judge James R. Spencer.
A jury found Coley guilty on November 4, 2014. According to evidence presented at trial, in the early morning hours of April 28, 2014, Coley fled on foot from a traffic stop in downtown Richmond after police officers detected a firearm in his waistband. During the foot pursuit, officers observed Coley toss the firearm over a fence. After detaining Coley, officers returned to the area where Coley had tossed the firearm and recovered a Smith & Wesson .40 caliber handgun. The handgun was lodged in a chain-link fence and was loaded with a magazine containing 14 rounds of ammunition.
Coley had been convicted of state and federal felony offenses prior to April 28, 2014, and was on supervised release for his prior federal conviction at the time of the instant offense. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year in prison from possessing a firearm or ammunition. Coley was also prohibited by the terms of his supervised release for his previous felony conviction from possessing a firearm. Coley’s possession of the firearm in this case was also the basis for the supervised release violation.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Richmond Police Department. Assistant U.S. Attorney Dominick S. Gerace prosecuted 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. 3:14CR00102.Private Investigators Indicted in E-Mail Hacking SchemeRead the Press Release
SAN JOSE – Nathan Moser, Peter Siragusa, AKA Bobby Russo, Carlo Pacileo, Trent Williams, and Sumit Gupta, AKA Sumit Vishnoi, were charged with crimes related to a conspiracy to access the e-mail accounts, Skype accounts, and computers of people opposing Moser’s and Siragua’s clients’ in civil lawsuits, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
A federal grand jury indicted Moser, 41, of Menlo Park, Calif.; Siragusa, 59, of Novato, Calif.; Pacileo, 44, of El Segundo, Calif.; Williams, 24, of Martinez, Calif.; and Gupta, 26, of Jabalapur, India, on January 15, 2015, charging them with one count of Conspiracy, in violation of 18 U.S.C. § 1030(b), six counts of Accessing a Protected Computer and Obtaining Information, in violation of 18 U.S.C. § 1030(a)(2)(C), and two counts of Interception of Electronic Communications, in violation of 18 U.S.C. § 2511(1)(a). The indictment was unsealed in court in San Jose, Calif., yesterday.
According to the Indictment, Moser was a private investigator and owner of Moser and Associates in Menlo Park. Siragusa was also a private investigator and owner of Siragusa Investigations in Novato. Although Moser and Siragusa operated separate businesses, they often assisted in each other’s investigations. The Indictment further alleges that Williams and Gupta were computer hackers hired by Moser and Siragusa to access the e-mail accounts, Skype accounts, and protected computers of individuals without authorization. Pacileo was the director of security for ViSalus, a network marketing company based in Los Angeles and one of Moser’s clients.
The Indictment alleges that the object of the defendants’ conspiracy was to obtain information that would assist Moser’s and Siragusa’s clients, including Pacileo, in the clients’ lawsuits. According to the indictment, once retained by a client, Moser and Siragusa would hire Williams and Gupta, among others, to hack into the victims’ e-mail accounts, Skype accounts, and protected computers. In addition to that conduct, the defendants allegedly installed and used a keylogger—a tool that intercepts and logs the particular keys struck on a keyboard in a covert manner so that the person using the keyboard is unaware that his or her actions are being monitored—to obtain information that would assist Moser’s and Siragusa’s clients.
According to the Indictment, Ocean Avenue, a network marketing company based in South Jordan, Utah, was a competitor of ViSalus that had hired several former ViSalus employees. As a result, ViSalus initiated a civil lawsuit against Ocean Avenue employees. Pacileo hired Moser to investigate Ocean Avenue. Moser allegedly enlisted Siragusa to assist with the investigation, and together they hired hackers to illegally obtain information to assist in the lawsuit.
Moser, Siragusa, and Williams made their initial appearances in San Jose yesterday before the Honorable Paul S. Grewal, U.S. Magistrate Judge. Moser was released on a $100,000 bond, with his wife signing as surety and custodian. Moser’s next hearing is scheduled for identification of counsel today before Judge Grewal. Siragusa was released pending the filing of a $100,000 secured bond on or before February 20, 2015. His next hearing is scheduled for February 23, 2015, at 1:30 p.m. before the Honorable Edward J. Davila, U.S. District Judge, in San Jose. Williams, who remains in custody, has a detention hearing scheduled for February 13, 2015, at 1:30 p.m., before Judge Grewal.
Pacileo made his initial appearance in Los Angeles before the Honorable Ralph Zarefsky, U.S. Magistrate Judge, and was released pending the filing of a $25,000 secured bond on or before February 13, 2015. His next hearing is scheduled for February 23, 2015 before Judge Davila.
An arrest warrant has been issued by the court for Gupta, who is believed to be in India. FBI Agents in San Jose are working with the FBI office in New Delhi, India, to secure Gupta’s prosecution.
The maximum statutory penalty for a violation of 18 U.S.C. § 1030(b) is 5 years custody, 3 years supervised release, and a fine of $250,000. The maximum statutory penalty for each violation of 18 U.S.C. § 1030(a)(2)(C) is 10 years custody, 3 years supervised release, and a fine of $250,000. The maximum statutory penalty for each violation of 18 U.S.C. § 2511(1)(a) is 5 years custody, 3 years supervised release, and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Matt Parrella and Michelle Kane are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Presidential Task Force Releases Implementation Plan for the National Strategy for Combating Wildlife TraffickingRead the Press Release
Recognizing that wildlife trafficking is an urgent conservation and national security threat, the Departments of Justice, State and the Interior today unveiled the implementation plan for the U.S. National Strategy for Combating Wildlife Trafficking. The agencies are co-chairs of the president’s Task Force on Combating Wildlife Trafficking which comprises seventeen federal agencies and offices.
The implementation plan builds upon the Strategy, which was issued by President Obama on Feb. 11, 2014, and reaffirms our nation’s commitment to work in partnership with governments, local communities, nongovernmental organizations and the private sector to stem the illegal trade in wildlife.
“Illegal wildlife trafficking has become one of the most profitable types of transnational organized crime, and its impact has been devastating,” said Assistant Attorney General for the Environment and Natural Resources Division John C. Cruden. “Wildlife trafficking threatens security, undermines the rule of law, fuels corruption, hinders sustainable economic development, and contributes to the spread of disease. This illicit trade is decimating many species worldwide, and some like rhinoceroses, elephants, and tigers face extinction in our lifetimes if we do not reverse this trend. The Justice Department is committed to its role in President Obama’s national strategy to combat wildlife trafficking, both by enforcing our nation’s wildlife laws like the Lacey Act and the Endangered Species Act and by working closely with other federal agencies to assist our foreign partners’ enforcement efforts.”
Incorporating recommendations from the secretary of the Interior’s Advisory Council on Wildlife Trafficking, the framework will guide and direct new and ongoing efforts of the task force in executing the Strategy.
Building upon the Strategy’s three objectives – strengthening enforcement, reducing demand for illegally traded wildlife, and expanding international cooperation – the plan lays out next steps, identifies lead and participating agencies for each objective, and defines how progress will be measured.
Some of those steps included in the implementation plan are:
- Continuing efforts to implement and enforce administrative actions to strengthen controls over trade in elephant ivory in the United States;
- Leveraging partnerships to reduce demand both domestically and abroad; and
- Strengthening enforcement capacity, cooperation, and partnerships with counterparts in other countries.
The Task Force has made significant strides toward meeting the objectives since the National Strategy was announced one year ago. A fact sheet describing these important steps related to law enforcement, demand reduction and international cooperation can be found here.
The United States is also using trade agreements and trade policy to press for groundbreaking commitments on wildlife trafficking and wildlife conservation in the Trans-Pacific Partnership Agreement (TPP) with eleven other countries in the Asia-Pacific region and the Transatlantic Partnership Agreement (T-TIP) with the European Union (EU). These commitments would be fully enforceable, including through recourse to trade sanctions, with far-reaching benefits for species like rhinos, sharks, and pangolins.
Read more about the Justice Department’s work to combat wildlife trafficking.
Potomac Man Sentenced to over 7 Years in Prison for Receiving Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Marion Lee Martin, Jr., age 58, of Potomac, Maryland, today to 85 months in prison followed by a lifetime of supervised release for receiving child pornography. Judge Grimm ordered that upon his release from prison, Martin 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 Stephen E. Vogt of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, in January 2013, Martin uploaded files to his internet cloud account which depicted real children engaged in sexually explicit conduct. On May 8, 2013, a search warrant was executed at his residence and a large number of digital devices and removable media, some of which contained child pornography, were seized. Martin admitted that he had been collecting images of children since approximately 1977, and his sexual interest was in girls, including the ages of nine to 11.
Martin also told law enforcement that he worked in a photo lab at a local CVS store and would also copy, for his own personal collection, images of children that customers would drop off for processing. Evidence seized during the May 8 search revealed video files depicting prepubescent and pubescent girls taken in a CVS store.
On October 30, 2013, Martin admitted to law enforcement that he had been using his cell phone to take videos of girls, clothed, at the store where he worked; and that he had bought a new laptop and cell phone since the May 2013 search of his home. A second search warrant was executed at his home in January 2014. Three laptops, five tablets, seven cameras, 24 memory cards, a Google Glass device and other digital media storage devices were seized.
Martin had at least tens of thousands of images and videos of child pornography and child erotica images and videos stored on the digital devices and removable media seized from both searches of his home. Some of the images and videos depicted real children engaged in sexually explicit conduct.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force, created in 2010 to combat the sexual exploitation of children, with members from 10 state and federal law enforcement agencies.
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 the FBI and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas Mitchell, who prosecuted the case.
Pittsburgh Man Pleads Guilty in Multiple Fraud SchemesRead the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to charges of bank embezzlement, bank fraud, mail fraud, filing a false income tax return, conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.
Joseph Graziano, Jr., 29, pleaded guilty to six counts in two cases before Senior United States District Judge Terrrence F. McVerry.
In connection with the guilty pleas, the court was advised that from May 12, 2008 through March 25, 2011, the defendant was employed by Bank of New York Mellon as a Corporate Trust Administrator. In this position, he had the access and ability to wire funds in and out of accounts held by the bank’s corporate trust customers. Graziano used this access to embezzle $2,441,294.35 from Bank of New York Mellon by wiring funds from the corporate trust accounts into his own bank accounts. In federal income tax returns, the defendant failed to report the embezzled funds as income. In the time before and after the defendant was employed by Bank of New York Mellon, he also engaged in schemes to defraud five other banks including Dollar Bank, First Niagara Bank, First Commonwealth Bank, Ameriserv Financial Bank and PNC Bank. In these schemes, Graziano submitted fraudulent loan documents to induce the banks to extend credit to him. Following the bank embezzlement and the bank frauds, the defendant began engaging in a new and separate scheme to defraud through the online marketplace www.ebay.com. Graziano defrauded eBay buyers by offering personal electronics for sale on eBay. After the buyers submitted payment to the defendant's PayPal account, the defendant sent the buyers empty boxes, falsely claiming that the boxes' contents had been stolen during shipping. After the defendant had been indicted on charges relating to those offenses, and while he was on pretrial release, he began to engage in new and separate criminal conduct. Only a few months after he was charged in the original indictment, Graziano engaged in a conspiracy to purchase counterfeit United States currency through a source in Uganda with the intent to pass the counterfeit currency at retail locations in the United States. He used a stolen identity to set up a mailbox to receive the shipments of counterfeit currency from Uganda and also attempted to open a credit card and bank accounts using the stolen identity.
Judge McVerry scheduled sentencing for May 22, 2015. The law provides for a mandatory minimum sentence of two years, a total sentence of 90 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge McVerry ordered that the defendant remain detained.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation, United States Postal Inspection Service, Internal Revenue Service - Criminal Investigation Division, Homeland Security Investigations, and the United States Secret Service conducted the investigations that led to the prosecution of Graziano.
Pennsylvania and Louisiana Residents Charged in $2.2 Million Fraud Scheme Involving U.S. Treasury ChecksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of one defendant, and the unsealing of an indictment against another defendant, in an ongoing investigation into a check cashing business in Baton Rouge that cashed more than $2.2 million in fraudulently-obtained U.S. Treasury checks during 2012 and 2013.
In one case, ANYELINA REYES, age 36, of Baton Rouge, Louisiana, has been charged in a Bill of Information, filed on July 15, 2014, with conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371. On November 20, 2014, REYES appeared before Chief U.S. District Judge Brian A. Jackson and pled guilty.
As REYES acknowledged in Court in connection with her guilty plea, in 2012 and 2013, she operated a store called “A&R Elite Team, LLC,” which was located on Florida Boulevard in Baton Rouge. REYES admitted that she was aware of a scheme to obtain United States Treasury checks that had been fraudulently obtained and that, after opening a bank account for her store, she agreed to help facilitate the scheme by using her store’s bank account to cash the Treasury checks. From April of 2012 through April of 2013, REYES deposited approximately 370 fraudulently-obtained Treasury checks into her business account, with such checks having a total face value of approximately $2.2 million. After depositing the checks into her account, and after retaining a percentage of the funds for herself, REYES would withdraw the remainder of the funds, in cash, and transmit the funds to her co-conspirators. As a result of her role in the scheme, REYES faces significant incarceration, fines, restitution, and supervised release following imprisonment.
In a related case, ALBELK REYES SERRATA, age 25, of Allentown, Pennsylvania, has been indicted and charged with conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371, and theft of government funds, in violation of Title 18, United States Code, Section 641. The Indictment, which was filed on October 2, 2014 and recently unsealed, alleges that throughout 2012 and 2013, SERRATA also participated in a scheme to obtain fraudulent United States Treasury checks and have them cashed in Baton Rouge. The Indictment further alleges that, in April and May of 2014, SERRATA participated in the theft of (5) additional Treasury checks having a face value of approximately $28,000. SERRATA also faces significant incarceration, fines, restitution, and supervised release following imprisonment.
U.S. Attorney Green stated: “My office takes identity theft and crimes involving fraudulently-issued United States Treasury checks very seriously, especially when millions of taxpayer dollars are at stake. We will continue to work aggressively to investigate and prosecute schemes like these, which not only impact the United States Treasury, but also make it harder for taxpayers to properly file their own taxes and place their trust in the Internal Revenue Service.”
“Individuals who use stolen identities in furtherance of tax fraud, and those who assist in these schemes, will be prosecuted for their actions,” stated Jerome R. McDuffie, Acting Special Agent in Charge, IRS Criminal Investigation. “These cases should serve as a strong warning to those who are considering similar conduct for their own gain. Our agency will continue to work closely with the Department of Justice to protect the integrity of the tax system and protect the public from criminals who use others’ identities for illegal purposes."
This ongoing investigation is being handled by the Internal Revenue Service—Criminal Investigation Division. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Owners of Bronx Grocery Store That Trafficked in Prescription Drugs Charged in Manhattan Federal Court with Orchestrating October 2010 Near-Fatal Shooting of Rival TraffickerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced today additional criminal charges filed in Manhattan federal court against CARLOS PANIAGUA (“CARLOS PANIAGUA”), JOSE OSVALDO PANIAGUA, JR., (“OSVALDO PANIAGUA JR.”), and JOSE RAFAEL PANIAGUA (“RAFAEL PANIAGUA”), who operated a massive prescription drug ring out of the Joaquin Grocery & Deli Store (the “Joaquin Grocery”) in the Bronx, New York, for orchestrating the October 2010 near-fatal shooting of a rival prescription drug trafficker. CARLOS PANIAGUA, OSVALDO PANIAGUA JR., and RAFAEL PANIAGUA, along with three other defendants, were initially arrested in June 2014 and charged with trafficking in oxycodone, HIV medication, and other prescription drugs. Concurrently with their arrests, and with the assistance of the New York City Law Department, the doors to the Joaquin Grocery were padlocked pursuant to a judicial order from Bronx Supreme Court. The case is assigned to U.S. District Judge Andrew L. Carter.
In addition, two additional members of the conspiracy to distribute oxycodone – VICTOR LUNA, and RAMON PICHARDO – were arrested this morning pursuant to the Superseding Indictment returned yesterday. As alleged, LUNA and PICHARDO distributed oxycodone to and with the individuals who operated the Joaquin Grocery.
Manhattan U.S. Attorney Preet Bharara said: “As with traditional drugs, prescription drug trafficking is a gateway to violence and a plague on the neighborhoods in which it is carried out. As alleged, the defendants not only turned their store into a drug market that took advantage of impoverished Medicaid beneficiaries, but were willing to, and nearly did, kill to maintain their illegal business. My office will continue work with our partners at the FBI and NYPD to investigate and vigorously prosecute these and other alleged prescription drug traffickers for their illegal drug businesses and for any resulting violence.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Second-hand medications pose significant risks to consumers, and the business of trading prescription drugs for money often encourages people to resist the treatment they need. Engaging in the illegal distribution of prescription drugs is a slippery slope, especially when criminals pick up the prescription pad. The additional charges in this case, which were announced today, detail the violence that often coincides with backdoor drug deals. The FBI and our partners are eternally committed to exposing these markets and shutting them down once and for all.”
Police Commissioner William J. Bratton said: “Thanks to the continued efforts of our investigators, our federal law enforcement partners, and the prosecutors involved in this case, these individuals will now be held accountable for not only allegedly taking part in this illegal prescription drug ring but also for plotting a murder.”
According to the allegations contained in the Complaint unsealed in June 2014, the Indictment unsealed in September 2014, the Superseding Indictment returned yesterday in Manhattan federal court, and statements made in court:
Until June 2014, CARLOS PANIAGUA, OSVALDO PANIAGUA JR., and RAFAEL PANIAGUA operated Joaquin Grocery, a grocery store at 598 Morris Avenue in the Bronx, New York. In addition to selling grocery products, the Joaquin Grocery operated for years as a marketplace for Medicaid beneficiaries to sell their Medicaid-reimbursed prescription medication, including Oxycontin, Percocet, and expensive HIV medications. The drug transactions at the Joaquin Grocery typically took place in a small room behind a door at the back of the store, where Medicaid beneficiaries provided their pill bottles to the defendants for cash. With respect to non-controlled medication such as HIV medication, the defendants removed the patient labels from the medication bottles with lighter fluid, which contains toxic substances, so that the bottles appeared brand new and could eventually be re-sold to pharmacies. With respect to controlled medication such as Oxycontin, the defendants amassed large quantities of pills and re-sold them on the street.
In 2010, a competitor in the prescription drug trafficking business (the “Competitor”) began poaching customers on the same street as the Joaquin Grocery. Ultimately, CARLOS PANIAGUA, OSVALDO PANIAGUA JR., and RAFAEL PANIAGUA planned to have the Competitor killed, and hired individuals from New Jersey to travel to the Bronx to carry out the murder. On October 13, 2010, while standing in front of a store on the same block as the Joaquin Grocery, the Competitor was shot twice, including once in the head, by one of the individuals hired by the defendants. The Competitor was taken to a nearby hospital and ultimately survived.
CARLOS PANIAGUA, OSVALDO PANIAGUA JR., and RAFAEL PANIAGUA are
each charged with one count of engaging in a conspiracy to distribute and possess with the intent to distribute a controlled substance (Count One); one count of engaging in a conspiracy to commit the unlawful misbranding, adulteration, and wholesale distribution of prescription drugs (Count Two); one count of engaging in a conspiracy to commit murder for hire (Count Three); and one count of aiding and abetting the use of a firearm in connection with the murder-for-hire conspiracy (Count Four). They each face a mandatory minimum sentence of 10 years in prison on Count Four and maximum sentences of 20 years in prison on Counts One and Three, five years in prison on Count Two, and 10 years in prison on Count Four.
LUNA and PICHARDO are each charged with one count of engaging in a conspiracy to distribute and possess with the intent to distribute a controlled substance. They each face a maximum sentence of 20 years in prison.
The previous charges against two other defendants, Osvaldo Paniagua Sr. and Joan Torres, remain unchanged.
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 FBI and NYPD, and thanked the New York City Law Department for its assistance.
Mr. Bharara also thanked the FBI’s Health Care Fraud Task Force for their work in this investigation, which he noted is ongoing. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the FBI, the NYPD, the New York State Insurance Fraud Bureau, the U.S. Department of Labor, the U.S. Office of Personnel Management Inspector General, the U.S. Food and Drug Administration, the New York State Attorney General’s Office, the New York State Office of Medicaid Inspector General, the New York State Health and Hospitals Inspector General, the New York City Human Resources Administration’s Bureau of Fraud Investigation, and the National Insurance Crime Bureau.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Russell Capone is in charge of the prosecution.
The charges contained in the Superseding Indictment, the Indictment, and the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
US v. Jose Carlos Paniagua, et al. (Joaquin Grocery) S4 Indictment
Otero County Man Charged with Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – David Ausborn Hiles, 48, of La Luz, N.M., has been charged with violating the federal firearms laws in a criminal complaint filed by the Bureau of Alcohol, Tobacco, Firearms and Explosives. During proceedings in federal court in Las Cruces, N.M., earlier today, Hiles pleaded not guilty to the charges in the criminal complaint, and was ordered detained pending trial based on a judicial finding that he poses a danger to the community.
The criminal complaint charges Hiles with being a felon in possession of firearms and ammunition. It alleges that Hiles unlawfully possessed 36 firearms and ammunition at his residence in Otero County, N.M., on Nov. 25, 2014. According to the criminal complaint, the New Mexico State Police found the firearms and ammunition while executing a search warrant at Hiles’ residence. In Nov. 2014, Hiles was prohibited from possessing either firearms or ammunition because he previously has been convicted of the felony offense of aggravated assault with a deadly weapon.
If convicted of the charges in the criminal complaint, Hiles faces up to ten years in federal prison. Charges in criminal complaints are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Mexico State Police, with assistance from the 12th Judicial District Attorney’s Office for the State of New Mexico. Assistant U.S. Attorney Maria Y. Armijo is prosecuting the case.
Oklahoma Army National Guard Soldier Pays $12,000 to Settle Allegations of False ClaimsRead the Press Release
Oklahoma City, Oklahoma -- Sanford C. Coats, United States Attorney for the Western District of Oklahoma announces that Staff Sergeant Kasey Ray Bickerstaff has agreed to pay $12,000 to settle civil penalty claims stemming from allegations that he violated the False Claims Act by submitting, or causing to be submitted, false claims under the Army National Guard’s Recruiting Assistance Program (G-RAP).
Staff Sgt. Kasey Ray Bickerstaff is a member of the Oklahoma Army National Guard. He registered as a recruiter assistant under the G-RAP to help the Guard supplement its enlistment efforts. As a recruiter assistant, Bickerstaff could earn bonuses for individuals he recruited to join the National Guard.
The United States contends that from January 2009 through April 2010, Bickerstaff submitted or caused to be submitted four false claims under the G-RAP program to obtain bonus payments for potential soldiers whom he did not assist in recruiting and to which he was not entitled.
In order to resolve the allegations brought by the United States, Bickerstaff agreed to pay $12,000. In reaching this settlement, Bickerstaff did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the U.S. Army Criminal Investigation Command. The case was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Ohio man convicted of possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Alex J. Galensky, 32, of, Martins Ferry, Ohio, was convicted today in federal court of possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
During an investigation by the West Virginia State Police, Galensky was discovered in May 2014 in possession of child pornography involving a minor under the age of 12.
Galensky pled guilty today to a criminal Information charging him with one count of “Possession of Child Pornography.” He faces up to 20 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government.
U.S. Magistrate Judge James E. Seibert presided.
Office Employee Fraudulently Used Employer's DEA Registration to Prescribe Controlled Substances to Self, Son and Son's FriendsRead the Press Release
ROANOKE, VIRGINIA – A Roanoke woman, who fraudulently used her employer’s DEA Registration Number to illegally prescribe controlled prescription drugs to her son, daughter-in-law, and others, pled guilty this morning in the United States District Court for the Western District of Virginia in Roanoke.
Vicki Chilton Mullen, 63, of Roanoke, Va. and her son, Gregory Daniel Mullen, 39, of Vinton, Va., pled guilty today in District Court. Today in District Court, each defendant pled guilty to one count of distributing hydrocodone (Lortab), one count of distributing Ambien, one count of conspiring to distribute hydrocodone, one count of conspiring to distribute Ambien, one count of using a DEA registration number issued to another person, and one count of acquiring a controlled substance by misrepresentation or fraud. In addition, Gregory Keith Roach, 44, of Hurt, Va., pled guilty last week to one count of obtaining possession of a controlled substance through misrepresentation or fraud and one count of conspiracy to obtain controlled substances by fraud. Chastity Carter Mullen, 39, of Vinton, Va., wife of Gregory Daniel Mullen, also pled guilty last week to one count of conspiracy to distribute controlled substances and to obtain controlled substances by fraud.
“The abuse of prescription drugs is an epidemic in the Western District of Virginia. The illegal use and abuse of these drugs is destroying lives and communities,” Acting United States Attorney Anthony P. Giorno said today. “We will continue to be vigilant in attacking this problem through vigorous enforcement and effective prevention programs.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Jennie L.M. Waering, Vicki Mullen worked in a Roanoke podiatrist’s office from 2004 to 2012. By virtue of her position she had the access and ability to call in patient prescriptions to pharmacies and advising pharmacies of refill requests. From around December 2007 to August 2012, Vicki Mullen used the podiatrist’s DEA registration number to call in prescriptions and to fax prescriptions for hydrocodone (Lortab), Ambien and others drugs, to pharmacies for Greg Mullen, Chastity Mullen, Gregory Roach, and others. In addition, Gregory Mullen, and others, provided Vicki Mullen with the names and personal identifying information of individuals for the purpose of Vicki Mullen calling in unauthorized prescriptions in those persons’ names, without their knowledge. The unauthorized prescriptions were picked up at various locations by Vicki Mullen, Gregory Mullen, Chastity Mullen, Gregory Roach and others. Vicki Mullen, Greg Mullen and others were addicted to prescription drugs and used some of these prescriptions for personal use. Approximately 45 names were used unknowingly for this drug scheme.
Between 2008 and 2012, 127,686 pills of Lortab (hydrocodone) were dispensed by Vicki Mullen using her using employer’s DEA Registration Number to call-in prescriptions and to fax refill authorizations. During that same time, 5,370 Ambien pills were dispensed in the same manner.
In addition, David Brian Turner was also charged as part of the same conspiracy and is scheduled to plead guilty next week. Walter Bingham has also been charged and could face a March jury trial.
The investigation of the case was conducted by Tactical Diversion Squad of the Drug Enforcement Administration, which includes agents from the Department of Health and Human Services, Office of Inspector General, the Virginia State Police, the DEA Diversion Program, and Task Force law enforcement officers from local jurisdictions that include the Montgomery County Sheriff’s Office, Bedford County Sheriff’s Office, Pittsylvania County Sheriff’s Office, Washington County Sheriff’s Office and Roanoke County Sheriff’s Office. Assistant United States Attorney Jennie L.W. Waering is prosecuting the case for the United States.
Northwest Arkansas Man Found Guilty of Federal Tax FraudRead the Press Release
A Springdale, Arkansas, man was convicted by a jury today in the U.S. District Court located in Fayetteville, Arkansas, of tax crimes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Conner Eldridge of the Western District of Arkansas.
Doyle Smith, 56, was found guilty following a three-day trial before the Honorable U.S. District Judge Timothy L. Brooks of four counts of subscribing and filing a false tax return, one count of corruptly endeavoring to obstruct and impede the administration of the internal revenue laws and one count of presenting a fictitious financial obligation.
According to evidence introduced at trial, in 2008 and 2009, Smith submitted four false individual federal tax returns for tax years 2005 through 2008, which falsely reported a total of more than $1.4 million in fictitious federal tax withholdings. Based on these fictitious withholding amounts, Smith claimed a total of $1,021,457 in income tax refunds to which he was not entitled to receive for those tax years. Smith also submitted false claims and correspondence to both the Internal Revenue Service (IRS) and third-parties in an attempt to cause the IRS and U.S. Treasury to pay his debts to third parties and to obstruct the IRS’ tax administration efforts. For example, in January 2010, Smith mailed to the Department of Arkansas Finance and Administration a fictitious financial instrument titled “U.S. Treasury Trust Account Money Order.” This fictitious document purportedly obligated U.S. Treasury funds in the amount of $129,439 to pay for outstanding sales taxes that Smith owed to the state of Arkansas.
“Today’s jury verdict makes it clear that individuals who steal from the government through the filing of false and fraudulent claims for refunds and fictitious financial instruments will be pursued and prosecuted to the fullest extent of the law,” said Principal Deputy Assistant Attorney General Ciraolo. “The Department of Justice’s Tax Division is committed to working with its federal and state law enforcement partners to identify those who seek to manipulate and abuse our federal tax system, and to hold such individuals accountable.”
“This case involves a scheme in which the defendant attempted to steal taxpayer money from the U.S. Treasury for his own personal gain,” said U.S. Attorney Eldridge. “This type of fraud is a serious crime, and an insult to hard-working, law abiding citizens and taxpayers. Today’s conviction sends a strong message that our office and our law enforcement partners will aggressively pursue fraud wherever we find it.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously,” said Special Agent in Charge Christopher A. Henry of the IRS-Criminal Investigation. “An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims. The object of these schemes is to defraud the government and the taxpaying public. Today’s conviction should serve as a warning to those that would attempt to enrich themselves by fraudulent means.”
“It is the Treasury Inspector General for Tax Administration’s (TIGTA) mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of TIGTA’s Dallas Field Division. “TIGTA and its law-enforcement partners will vigorously investigate individuals that attempt to corruptly interfere with the administration of the internal revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law.”
In this case, the statutory maximum sentences are three years in prison and a $250,000 fine for each count of filing a false tax return; three years in prison and a $250,000 fine for the count of impeding the internal revenue laws; and 25 years in prison and a $250,000 fine for the count of presenting a fictitious financial obligation.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Eldridge commended the special agents of IRS-Criminal Investigation and the TIGTA who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division who are prosecuting the case.
Northwest Arkansas Man Found Guilty of Federal Tax FraudRead the Press Release
Fayetteville, Arkansas – A Springdale, Arkansas man was convicted by a jury today in the U.S. District Court in Fayetteville, Arkansas, of tax crimes, announced U.S. Attorney Conner Eldridge of the Western District of Arkansas and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Doyle Smith, 56, was found guilty following a three-day trial before the Honorable U.S. District Judge Timothy L. Brooks on four counts of subscribing a false tax return, one count of corruptly endeavoring to obstruct and impede the administration of the Internal Revenue Laws, and one count of presenting a fictitious obligation.
According to evidence introduced at trial, in 2008 and 2009, Smith submitted four false individual federal tax returns for tax years 2005 through 2008, which falsely reported a total of more than $1.4 million in fictitious federal tax withholdings. Based on these fictitious withholding amounts, Smith claimed a total of $1,021,457 in income tax refunds to which he was not entitled to receive for those tax years. Smith also submitted false claims and correspondence to both the Internal Revenue Service (IRS) and third-parties in an attempt to cause the IRS and U.S. Treasury to pay his debts to third parties and to obstruct the IRS’ tax administration efforts. For example, in January 2010, Smith mailed to the Department of Arkansas Finance and Administration a fictitious financial instrument titled “U.S. Treasury Trust Account Money Order.” This fictitious document purportedly obligated U.S. Treasury funds in the amount of $129,439 to pay for outstanding sales taxes that Smith owed to the state of Arkansas.
“This case involves a scheme in which the defendant attempted to steal taxpayer money from the U.S. Treasury for his own personal gain,” said U.S. Attorney Eldridge. “This type of fraud is a serious crime, and an insult to hard-working, law abiding citizens and taxpayers. Today’s conviction sends a strong message that our office and our law enforcement partners will aggressively pursue fraud wherever we find it.”
“Today’s jury verdict makes it clear that individuals who steal from the government through the filing of false and fraudulent claims for refunds and fictitious financial instruments will be pursued and prosecuted to the fullest extent of the law,” said Principal Deputy Assistant Attorney General Ciraolo. “The Department of Justice’s Tax Division is committed to working with its federal and state law enforcement partners to identify those who seek to manipulate and abuse our federal tax system, and to hold such individuals accountable.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously,” said Special Agent in Charge Christopher A. Henry of the IRS-Criminal Investigation. “An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims. The object of these schemes is to defraud the government and the taxpaying public. Today’s conviction should serve as a warning to those that would attempt to enrich themselves by fraudulent means.”
“It is the Treasury Inspector General for Tax Administration’s (TIGTA) mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of TIGTA’s Dallas Field Division. “TIGTA and its law-enforcement partners will vigorously investigate individuals that attempt to corruptly interfere with the administration of the internal revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law.”
In this case, the statutory maximum sentences are three years in prison and a $250,000 fine for each count of filing a false tax return; three years in prison and a $250,000 fine for the count of impeding the internal revenue laws; and 25 years in prison and a $250,000 fine for the count of presenting a fictitious financial obligation.
U.S. Attorney Eldridge and Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the TIGTA who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division who are prosecuting the case.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
North Little Rock Man Indicted on 10 Counts of Wire Fraud in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK – Another feeding program sponsor has been indicted for his role in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Christopher Nichols, age 24, of North Little Rock, has surrendered to authorities after the filing of a 10-count indictment.
The indictment, returned by a Federal Grand Jury on February 4, 2015, charges Nichols with wire fraud as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds.
According to the indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Nichols operated as a sponsor for a feeding program through an organization called A Vision For Success. It alleges that a relative of Nichols worked for DHS and processed applications from sponsors applying to participate in the feeding programs.
The indictment alleges that Nichols applied with DHS to participate as a sponsor and that his relative at DHS approved his applications. The only employees Nichols listed on his applications were additional family members. The indictment states that he falsely represented his average daily attendance and greatly inflated the number of meals provided; few or no children were actually fed.
“With reportedly over 200,000 children at risk of hunger in Arkansas because they are not getting nutritious food needed to thrive, this indictment is a small step toward ensuring the funding for nutritious feeding programs in Arkansas is actually feeding children,” stated Thyer. “This is the second indictment and fourth person charged in connection to feeding programs in Arkansas. In December, 2014, my office indicted three individuals for their roles in a conspiracy to steal federal money through feeding programs administered by the Department of Agriculture. I expect that as the investigation into Arkansas’ feeding programs continues, there will be additional indictments. We will not tolerate the blatant disregard of the welfare of Arkansas’ children by those who steal the very money meant to alleviate the burgeoning need to put nutritious food in the mouths of hungry children. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to my office at [email protected].”
“It is again another example of the collaborative efforts of local, state and federal agencies to aggressively investigate and prosecute these individuals whose depravity has no bounds,” stated Secret Service Special Agent in Charge Brian Marr. “This manipulator of the system who took food from children, and expensed it off to the people of the state of Arkansas, deserves every bit of punishment allowable by law.”
United States Department of Agriculture, Office of Inspector General, Assistant Special Agent-in-Charge Dax Roberson, Southwest Region said, “I want to thank the U.S. Attorney’s office, OIG special agents, and our investigative partners for their hard work on this investigation. When the integrity of nutrition programs for needy children is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”
“Stealing money from a fund that was reputedly feeding underprivileged and disadvantaged children is deplorable,” stated Assistant Special Agent in Charge James Hendricks with the Little Rock FBI, “We appreciate the tireless efforts of our partners, Internal Revenue Service, United States Department of Agriculture, United States Secret Service and the U.S. Attorney’s Office for their diligent resolve to investigate this appalling crime.”
“IRS Criminal Investigation is proud to work with our law enforcement partners to identify, investigate and prosecute financial fraud schemes, especially when the victims of the fraud are disadvantaged children that programs such as this are meant to benefit,” stated Christopher A. Henry, Special Agent in Charge of the IRS- Criminal Investigation Nashville Field Office.
The statutory penalty for wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture – Office of the Inspector General, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
New York man gets more than nine years for role in robbing drug dealersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Keith I. Glenn, 31, of New York, was sentenced to more than nine years in federal prison for being a felon in possession of a firearm.
In October 2013, Glenn pleaded guilty to possessing a firearm while participating in armed home invasion robberies of drug dealers. He admitted that on March 22, 2012, he, Robert Barcliff, Brandon Davis and Darrell Gillespie robbed someone they believed to be a drug dealer in Bristol, Virginia. They entered the victim’s home brandishing weapons, and stole firearms, ammunition and drugs. The group then returned to South Charleston to divide the spoils.
On March 22, 2012, Glenn also participated in an attempted robbery in Dunbar, West Virginia. He, Davis and Gillespie attempted to rob a drug dealer in the Roxalana Hills apartment complex but failed when the victim resisted. The group was later arrested by police.
Glenn further admitted that on April 22, 2012, he, Barcliff, Robert Jared Smith and William Seltzer carried out an armed home-invasion robbery in Marmet, West Virginia, of drug dealers believed to be from Detroit. A firearm was discharged during the robbery.
Smith, Seltzer and Davis have pleaded guilty to charges related to this investigation, and await sentencing in February. Barcliff was recently sentenced to 16 years in federal prison. Gillespie was convicted by a federal jury and awaits sentencing in May 2015.
Beginning in the fall of 2011, Glenn was part of a group that conspired and agreed to commit armed home invasion robberies of drug dealers in West Virginia, Virginia, Pennsylvania and Tennessee. The objective of the conspiracy and robberies was to steal drugs, drug proceeds and firearms. The group targeted drug dealers because they believed the dealers were not likely to call the police.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by the Federal Bureau of Investigation, South Charleston Police Department and Charleston Police Department. Assistant United States Attorney Monica D. Coleman handled the prosecution.
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Monroe County Man Charged with Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Stroudsburg man was arrested by federal agents yesterday on drug trafficking charges brought by a federal grand jury.
According to United States Attorney Peter Smith, the grand jury returned a Criminal Indictment last week alleging that Eddie Pace, age 40, conspired with others to distribute and possess with intent to distribute more than 100 grams of heroin and more than 500 grams of cocaine in Monroe County and elsewhere. The indictment also charges Pace with distributing heroin on November 6, 2014 and January 14, 2015.
The charges stem from an investigation by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, Monroe County Detectives, the Monroe County Drug Task Force, and the Stroud Area Regional Police Department.
Pace was arraigned on the charges today before U.S. Magistrate Judge Karoline Mehalchick in Scranton. He was ordered to be detained in prison pending trial in the case.
If he is convicted of the charges, Pace faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison for the conspiracy charge, and a potential maximum sentence of 30 years in prison for each distribution charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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.
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.
(Indictment)
Mexican National Sentenced as Leader and Organizer of MarijuanaRead the Press Release
BOISE — Juan Pablo Villasenor-Villa, 25, of Michoacan, Mexico, was sentenced yesterday to 288 months in prison for continuing criminal enterprise involving the unlawful growing of thousands of marijuana plants, and possession of large quantities of harvested marijuana with intent to distribute it, as well as damage to federal public lands, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Villasenor-Villa to pay $33,265 in restitution, to pay a $500 special assessment, and to serve five years of supervised release following his release from prison. Villasenor-Villa, the organizer and leader of two marijuana growing operations, was convicted on November 4, 2014, following a one-week jury trial.
“This lengthy sentence reflects the seriousness of this offense and size of these marijuana operations, the need for just punishment, and especially the need for deterrence,” said Olson. “If other people intend to be involved in this type of abuse of public lands, they need to consider the consequences of a sentence like this.”
Villasenor-Villa is the final defendant to be sentenced in connection with the two marijuana growing operations discovered in the Boise National Forest in September 2013. The court previously sentenced the other participants who were working in the marijuana growing operation under the direction of Villasenor-Villa. Jose Ayala-Talavera was sentenced to 111 months for conspiracy to manufacture and distribute a controlled substance, injury to government property, and possession of a firearm in furtherance of a drug trafficking crime. Marcos Solano-Farias was sentenced to 30 months for conspiracy to manufacture and distribute a controlled substance, possession of a firearm by a prohibited person, and injury to government property. Carlos Cerda-Carpio was sentenced to 27 months for conspiracy to manufacture and distribute a controlled substance, and possession of a firearm by a prohibited person. Gilberto Duran Contreras was sentenced to 30 months for conspiracy to manufacture and distribute a controlled substance and injury to government property. Mariah Villasenor-Rodriguez, Villasenor-Villa’s wife, was sentenced to 21 months for possession of more than 100 kilograms of marijuana with intent to distribute.
The two outdoor marijuana growing operations were located in the Boise National Forest, a few miles from Highway 21 in Boise County. Ayala-Talavera, Solano-Farias, and Cerda-Carpio were captured by law enforcement officers at a camp located next to a marijuana grow site on Rabbit Creek, with 1,411 live plants, as well as harvested marijuana. According to the plea agreements, investigators found and seized two semi-automatic handguns, an AK-47 type rifle in the camp, and several hundred marijuana plants that had already been harvested from the growing operation. Investigators located and eradicated all live marijuana plants. Law enforcement officers also found a related grow site at Beaver Creek, where they removed 5,463 marijuana plants. Duran-Contreras was arrested near this site. Investigators recovered harvested marijuana in one-pound, heat-sealed packages from Villasenor-Villa’s house and from a relative’s house in Caldwell, Idaho. They also recovered $68,500 in large bills of U.S. currency during the arrest of his wife and co-defendant, Mariah Villasenor-Rodriguez on September 12, 2013, in Caldwell.
“Vigorous prosecution of those who grow illegal drugs on federal land is a high priority of this office,” said Olson. “Those who operate marijuana grows not only traffic in illegal drugs, but they also damage wildlife and the environment and, through their possession and possible use of firearms, they pose a significant danger to all Idahoans who seek to use our national forests for hiking, hunting and recreation purposes. Drugs and guns are a dangerous and often violent combination. Today’s sentence demonstrates that the federal agents and federal prosecutors will carefully target those who use or possess firearms for unlawful drug businesses.”
The case is the result of an investigation through the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City/County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Photo 1168: Miles of irrigation tubing of several dimensions were removed from the Rabbit Creek grow, along with eradicated marijuana plants. This photo shows one load hauled out with long-lines by helicopter.
Photo 1189: A forest road at the trail entrance in the Boise National Forest near Little Beaver Creek. Juan Pablo Villasenor-Villa provides supplies for marijuana workers and gives them directions.
Metro-East Resident Pleads Guilty to Participating in Fraudulent Tax Refund SchemeRead the Press Release
Case Is One of Many Prosecuted By United States Attorney Wigginton Aimed at Those Who Commit Tax Fraud
Follow @SDILNewsSylvin Baker, 58, from East St. Louis, pled guilty to one count of making a false claim for a federal tax refund in submitting a false federal income tax return, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Baker faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 years’ supervised and mandatory restitution. Baker was indicted with three other metro east individuals for participating in a tax refund scheme. Sentencing has been set for May 22, 2015.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Man Who Shot and Wounded Two Law Enforcement Officers in Nevada County Convicted in Federal Court TrialRead the Press Release
SACRAMENTO, Calif. — After a three-day trial, a federal jury found Brent Douglas Cole, age 61, resident of Nevada County, guilty of assault on a federal officer with a deadly weapon which inflicted bodily injury; assault on a person assisting a federal officer with a deadly weapon which inflicted bodily injury; and discharge of a firearm during and in relation to a crime of violence, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Garland E. Burrell, Jr.
According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) Ranger stopped Cole after he observed him driving his vehicle down a brushed-in trail near the South Yuba River campground in Nevada County. After advising Cole that he could not drive on the trail, the BLM Ranger allowed Cole to leave without issuing him a citation. After Cole departed, the BLM Ranger traveled up the brushed-in trail and discovered a campsite in a small clearing. Located within the campsite, among other items, were two motorcycles, one of which had previously been reported stolen and the other had expired registration tags. The BLM Ranger decided to impound both motorcycles, and subsequently contacted the California Highway Patrol (CHP) to request their assistance.
A short time later, a CHP Officer arrived at the site to assist the BLM Ranger. While both officers were working in the campsite, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things. The BLM Ranger asked Cole if he was armed, and when Cole replied that he was, the BLM Ranger removed his handcuffs. Cole said he would not allow the BLM Ranger to place the handcuffs on him. He then drew a Taurus .44 caliber revolver from the right side of his waist, pointed the weapon at the BLM Ranger and fired multiple rounds. One round struck the BLM Ranger in the left shoulder. In response to Cole’s actions, both the BLM Ranger and the CHP Officer returned fire. Cole turned the weapon upon the CHP Officer and fired multiple rounds. One of the bullets struck the CHP Officer in the right leg. Cole was struck several times by law enforcement.
After expending his ammunition, and being shot multiple times, Cole told law enforcement he gave up. The two officers handcuffed Cole, called for assistance, and then rendered medical aid to Cole while waiting for fire and medical emergency services to arrive. Cole, the BLM Ranger, and the CHP Officer received medical attention and all survived their wounds.
“Protecting members of law enforcement who protect our communities is one of this office’s most important priorities,” said U.S. Attorney Wagner. “Violence directed at law enforcement officials who are lawfully performing their duties is unacceptable. As a result of the verdict today Mr. Cole is looking at many years in prison. We are grateful for the investigative assistance of our federal and state law enforcement partners, and we thank the Nevada County District Attorney’s Office for its essential assistance and cooperation.”
“Assaulting a federal officer and any officer assisting them in their lawful duties is intolerable,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “The FBI will thoroughly investigate such egregious and violent crimes to ensure that the perpetrators face justice for the criminal acts they have committed.”
“This violent event underscores the potential dangers BLM officers face every day as we safeguard the public and natural resources,” said Kynan Barrios, BLM California Special Agent In-Charge. “We appreciate the strong support from all of our law enforcement partners, especially the California Highway Patrol and Nevada County Sheriff’s Department whose actions prevented this incident from ending in greater tragedy.”
“On behalf of the CHP, I wish to extend our appreciation to the Nevada County Sheriff’s Office, the Nevada County District Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Land Management, and the members of the prosecution team and jury,” said CHP Commissioner Joe Farrow. “Officers across the nation face difficult challenges everyday working towards protecting the people in our communities. The fluent partnership between local, state, and federal agencies allowed for this case to be appropriately adjudicated.”
This case was the product of a collaborative state and federal investigation involving the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, Nevada County Sheriff’s Office, and the Nevada County District Attorney’s Office. Assistant United States Attorneys Michael D. McCoy and Heiko Coppola are prosecuting the case.
Cole is scheduled to be sentenced by Judge Burrell on May 1, 2015. Cole faces a maximum statutory penalty of 20 years on each of his first two counts of conviction. He faces a term of up to 10 years on the third, which must be served consecutively to any sentence he receives on the first two counts. He also faces a fine of up to $750,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Sentenced to 5 Years Probation for Unlawfully Procuring CitizenshipRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to five years of probation on his conviction of unlawful procurement of citizenship or naturalization, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Lahbib Hannoune, 35, of Pittsburgh, Pa.
According to the information presented to the court, Hannoune falsely answered in the negative a question about whether he had committed a crime for which he had not yet been arrested during his naturalization proceedings. At the time he answered the question, Hannoune had already engaged in unlawful contact with a person represented to be a minor for the purpose of engaging in online video display of sexual conduct. The person was actually an undercover police officer. Hannoune procured naturalized U.S. citizenship based upon his answer.
Judge McVerry ordered Hannoune’s naturalized citizenship be revoked, undoing the result of his fraud.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney commended Homeland Security Investigations and the Office of Attorney General for the successful investigation leading to the prosecution of Lahbib Hannoune.
Louisiana Army National Guard Soldier Pleads Guilty to Conspiracy to Commit Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAMON E. MADRID, 29, a resident of Kenner, pled guilty yesterday to one count of conspiracy to commit theft of government funds.
According to court documents, MADRID’s co-defendant, PABLO PAZ, was a recruiter for the Louisiana Army National Guard. In this capacity, PAZ obtained personally identifiable information (PII), such as names, dates of birth and social security numbers, from potential soldiers that came to the recruiting station for the purpose of becoming a soldier. PAZ provided the PII of potential soldiers to MADRID without the knowledge or consent of the soldiers, to obtain Guard Recruiter Assistance Program (G-RAP) incentive payments to which they were not entitled. MADRID received approximately $30,000 in fraudulently obtained recruitment incentive payments, and provided a portion of the funds to PAZ.
MADRID faces a maximum term of five years imprisonment, a fine of up to $250,000, and up to three years of supervised release. U.S. District Judge Jay C. Zainey set sentencing for May 12, 2015.
U.S. Attorney Polite praised the work of the United States Army Criminal Investigation Division Command and the Defense Criminal Investigative Service in investigating this matter. Public Integrity Unit Chief Tracey N. Knight is in charge of the prosecution.
Lawyer Arrested in Multi-Million Dollar World Trade Center Reconstruction Insurance Fraud ScamRead the Press Release
Darius X. Johnson has been arrested on a criminal complaint alleging wire fraud and money laundering in connection with his sale of phony insurance bonds for construction of the World Trade Center PATH transportation hub (“WTC Hub”). His initial appearance is scheduled later today at the federal courthouse in Atlanta, Georgia. The government will seek his removal to the Eastern District of New York for prosecution.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Anthony Scandiffio, Deputy Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI); and Michael Nestor, Inspector General, Port Authority of New York and New Jersey.
According to the complaint, between September 2010 and June 2013, the defendant took part in a scheme to steal money by selling fake insurance bonds to contractors working on large construction projects in New York and elsewhere. Specifically, Johnson, an attorney, sold fraudulent bonds provided by a company called Diamond Indemnity Trust, to a construction subcontractor which had a $6.2 million subcontract to supply and install glasswork at the WTC Hub. To prove that the bonds were backed by assets that could be used if the subcontractor defaulted on the project, Johnson provided, among other things, a phony letter of credit falsely indicating more than $6 million was held in Johnson’s attorney/client trust account in Brooklyn, New York. In 2011, after the subcontractor paid its premium for the fraudulent bonds, Johnson used multiple transactions and bank accounts to wire a substantial portion of the premium payment to himself and a co-conspirator. In 2012, when the subcontractor filed for bankruptcy and defaulted on the WTC Hub project, Johnson and Diamond Indemnity Trust failed to honor the bonds. As a result, the WTC Hub general contractor was forced to pay an additional amount of approximately $2 million to complete the job.
“As alleged, Johnson used deception to personally benefit from the reconstruction of the World Trade Center site while adding significant cost to the project and jeopardizing its timely completion,” stated United States Attorney Lynch. “This Office will investigate and prosecute to the fullest extent those who use important infrastructure projects as vehicles for fraud, deceit, and personal gain.”
“Surety bonds on capital construction projects serve the critical purpose of insuring that the project gets completed in a timely manner, within projected costs, and that the subcontractors and suppliers are paid properly. Fraudulent surety bonds create a dual problem for the construction project and the owner. The premiums are paid out for the surety bonds, and no resulting benefit or protection is obtained. The defendant allegedly victimized a World Trade Center project that was being rebuilt after the terrorist attacks to line his pockets. The Port Authority of NY & NJ, Office of Inspector General will continue to work with our law enforcement partners to prevent and detect all types of construction fraud,” stated Port Authority Inspector General Nestor.
“The World Trade Center reconstruction site is sacred ground, so using its rebuilding to steal money by selling false insurance bonds as alleged in the complaint is a particularly disturbing crime,” said HSI Deputy Special Agent-in-Charge Scandiffio. “HSI is committed to leveraging its unique statutory authorities and investigative expertise to bring down individuals involved in these types of criminal activities.”
The charges contained in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 30 years’ imprisonment on the wire fraud count and 10 years on the money laundering count. Additionally, if convicted, Johnson may be fined up to $1 million for the wire fraud count and $250,000, or up to twice the amount of criminally derived property involved in the transaction, for the money laundering count.
The government’s case is being prosecuted by Assistant United States Attorneys Whitman G.S. Knapp and Brian D. Morris, and Special Assistant United States Attorney Jonathan P. Lax.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
DARIUS X. JOHNSON
Age: 48
Atlanta, Georgia
E.D.N.Y. Docket No. 15-M-120
Johnson County Deputy Sheriff’s Work Brought Down Synthetic Drug RingRead the Press Release
KANSAS CITY, KAN. - Tireless investigative work by a Johnson County deputy sheriff was the key to bringing down a drug trafficking ring in Olathe that sold more than $16 million worth of designer drugs in just 14 months, U.S. Attorney Barry Grissom said.
Deputy Christopher Farkes received the U.S. Attorney’s 2015 Guardian of Justice Award Wednesday. Farkes led a three-year investigation that resulted in federal indictments against 13 individuals including the owners of an Olathe-based business, Tracy Picanso and Roy Ehrett.
“Chris Farkes is very intelligent, with great intuition and a great passion for law enforcement,” Grissom said. “He was born to do the work he does.”
In December, Picanso and Ehrett each pleaded guilty to producing and selling misbranded and counterfeit drugs and conspiring to launder the proceeds. They admitted producing and selling dangerous controlled substances and controlled substance analogues of THC (the active ingredient in marijuana) and cocaine-like stimulants. The products sold under exotic names such as Head Trip, Black Arts, Pump It, Grave Digger and Voodoo Doll. The operation stretched from Kansas to Missouri, California, Texas, Georgia and Colorado, involving more than 15 companies with more than 40 financial accounts at more than 10 financial institutions.
“Chris has great analytical skills and an incredible memory,” said Assistant U.S. Attorney Tanya Treadway, who is prosecuting the case. “He has the tenacity and the ability to review mountains of documentary evidence and to weave together an evidentiary chain we can rely on at trial.”
Ryan Williams and Joseph Daneff Receive Guardian Awards for Operation Broken Bone
Also receiving the Guardian of Justice Awards on Tuesday were FBI Special Agent Ryan Williams and Detective Joseph Daneff of the Kansas City, Mo., Police Department. They worked on Operation Broken Bone, an investigation and successful prosecution of a drug trafficking ring that distributed more than $1.6 million worth of cocaine, crack cocaine and marijuana in the Kansas City metro area.
The traffickers employed couriers for transporting drugs and money, and maintained multiple residences where drugs were stored and distributed. Part of the investigation required tracking drug proceeds that were laundered through gambling casinos.
“Investigators overcame seemingly insurmountable obstacles in their quest for justice, leaving no stone unturned and no avenue unexplored,” said Assistant U.S. Attorney Sheri McCracken, who prosecuted the case.
Agencies involved in the joint investigation included the FBI, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department.
“These law enforcement officers help set the standards for the men and women who safeguard our neighborhoods and protect the citizens of Kansas,” Grissom said.
The Guardian of Justice Awards recognizes law enforcement officers who did outstanding work on cases that were successfully prosecuted by the U.S. Attorney’s office. Since 2002, the award has been given to state and local law enforcement officers, as well as federal agents, who were nominated by federal prosecutors for their outstanding work.
Jersey City, New Jersey, Pediatrician Admits Making Nearly $200,000 Billing Medicaid for Bogus TreatmentsRead the Press Release
TRENTON, N.J. – A licensed pediatrician practicing in Jersey City, New Jersey, today admitted fraudulently billing Medicaid for more than 1,000 wound repair procedures that were never performed, U.S. Attorney Paul J. Fishman announced.
Badawy M. Badawy, 52, of Bayonne, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count One of an indictment charging him with health care fraud.
According to documents filed in the case and statements made in court:
Badawy owned and operated Sinai Medical Center of Jersey City LLC, a medical practice focusing on pediatric and family medicine. From January 2004 through December 2008, Badawy submitted thousands of claims to Medicaid for wound repair procedures related to the repair of superficial wounds over 30 centimeters in length on a patient’s face, ears, eyelids, nose or lips as well as the repair of previously closed wounds. Badawy claimed to have performed these treatments on his patients, most of whom were children.
During his plea hearing Badawy admitted that he regularly submitted claims for procedures that were never performed. As a result of his false claims, Badawy received $196,911 in Medicaid payments.
The charge of health care fraud carries a maximum penalty of up to 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss resulting from the crime. Sentencing is scheduled for May 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s guilty plea.
The government is represented by Danielle Alfonzo Walsman and Michael H. Robertson of the U.S. Attorney’s Health Care and Government Fraud Unit.U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
15-058
Defense counsel: Peter R. Willis Esq., Jersey City
Jersey City, New Jersey, Pediatrician Admits Making Nearly $200,000 Billing Medicaid for Bogus TreatmentsRead the Press Release
TRENTON, N.J. – A licensed pediatrician practicing in Jersey City, New Jersey, today admitted fraudulently billing Medicaid for more than 1,000 wound repair procedures that were never performed, U.S. Attorney Paul J. Fishman announced.
Badawy M. Badawy, 52, of Bayonne, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count One of an indictment charging him with health care fraud.
According to documents filed in the case and statements made in court:
Badawy owned and operated Sinai Medical Center of Jersey City LLC, a medical practice focusing on pediatric and family medicine. From January 2004 through December 2008, Badawy submitted thousands of claims to Medicaid for wound repair procedures related to the repair of superficial wounds over 30 centimeters in length on a patient’s face, ears, eyelids, nose or lips as well as the repair of previously closed wounds. Badawy claimed to have performed these treatments on his patients, most of whom were children.
During his plea hearing Badawy admitted that he regularly submitted claims for procedures that were never performed. As a result of his false claims, Badawy received $196,911 in Medicaid payments.
The charge of health care fraud carries a maximum penalty of up to 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss resulting from the crime. Sentencing is scheduled for May 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s guilty plea.
The government is represented by Danielle Alfonzo Walsman and Michael H. Robertson of the U.S. Attorney’s Health Care and Government Fraud Unit.U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
15-058
Defense counsel: Peter R. Willis Esq., Jersey City
Jefferson County Man Sentenced to 151 Months on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsA Jefferson County man was sentenced on February 6, 2015, to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Kenneth L. Badgett, 52, of Mt. Vernon, Illinois, was sentenced to 151 months in federal prison, to be followed by three years of supervised release, and fined $300. Badgett had previously pleaded guilty to three counts in a federal indictment. Count 1 charged that from February 2014, until on or about March 23, 2014, in Jefferson County, Badgett conspired with others known and unknown to the Grand Jury, to knowingly and intentionally manufacture methamphetamine. Count 2 charged that on March 23, 2014, in Jefferson County, Badgett possessed equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine. Count 3 charged that on January 28, 2013, in Jefferson County, Badgett knowingly and intentionally distributed methamphetamine.
Co-defendant Larry York, 47, of Mt. Vernon, IL, was previously sentenced in this case to 180 months.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Jefferson County Gunman Sentenced to 43 Years for Beaumont CarjackingsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Beaumont man has been sentenced to over 43 years in federal prison for his role in an armed carjacking spree in April 2012 in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Timothy Wayne Harris, Jr. a/k/a “J” was found guilty by a jury on Mar. 26, 2014, of conspiracy to commit carjacking, two counts of motor vehicle theft, and two counts of brandishing a firearm during a crime of violence. Harris was sentenced to 522 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on April 17-18, 2012, Harris and Jerry Lee Edwards, 38, went on a crime spree outside a Beaumont restaurant and convenience store, Carl’s Jr. and the Calder Food Mart. On May 2, 2012, a federal grand jury indicted Harris and Edwards and charged them with two counts of carjacking, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit carjacking. The case was delayed for 17 months by psychiatric examinations of Harris, who was the gunman and leader of the offenses. In late 2013, Harris was determined to be competent to stand trial
Edwards pleaded guilty before trial to conspiracy to commit carjacking, admitting that he knowingly joined in the crimes, and was sentenced to 60 months in federal prison on Oct. 24, 2014.
This case was prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case was investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.
Immigration Attorney Faces Additional Charges for Alleged Immigration Fraud and Witness TamperingRead the Press Release
ATLANTA - Bonnie Monique Youn has been arraigned on additional federal charges that she submitted false documentation on behalf of three new clients who were aliens seeking immigration status in the United States. She has been charged with two new counts of visa fraud, two new counts of alien harboring, and two new counts of witness tampering.
“The additional charges against this attorney reflect that her illegal actions on behalf of certain immigration clients are more extensive. Instead of working within the bounds of the law, she filed false immigration documents with the U.S. Government and encouraged several clients to lie to federal agents who were conducting an investigation,” said Acting United States Attorney John Horn.
“The defendant, who swore to uphold the law, instead allegedly sought to enrich herself by undermining the integrity of our immigration system by filing false documents,” said acting Special Agent in Charge Ryan L. Spradlin, ICE Homeland Security Investigations in Atlanta. “To compound these initial crimes, the defendant now stands accused of tampering with witnesses in the investigation in a failed attempt to conceal her illicit activities. Creating vulnerabilities in our immigration system raises serious national security concerns that HSI will vigorously investigate.”
According to Acting United States Attorney Horn, the charges and other information presented in court: From February 9, 2009, to the present, for her personal financial gain, immigration attorney Bonnie Monique Youn encouraged and induced three aliens to reside in the United States in violation of the law. Youn also engaged in visa fraud by filing documents that were false with respect to material facts. Then, once the investigation into Ms. Youn was underway, she engaged in witness tampering by telling two aliens to provide false information to federal agents when they were questioned. Youn also attempted to persuade one of the aliens to provide a false statement to a Federal grand jury.
Bonnie Monique Youn, 45, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Gerrilyn G. Brill. The superseding indictment, which added charges against Youn, was returned by a federal grand jury on January 27, 2015. Youn was previously released on a $25,000 unsecured bond, and ordered to surrender her United States passport.Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Homeland Security Investigations (HSI) Document Benefit Fraud Task Force comprised of Special Agents with HSI, the United States Department of Labor-Office of the Inspector General, the United States Department of State, Diplomatic Security Service, as well as Fraud Detection/National Security Officers of the United States Citizenship and Immigration Services.
Assistant United States Attorneys Susan Coppedge and William L. McKinnon, Jr. are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Illegal Alien Arrested on Child Pornography ChargeRead the Press Release
LAREDO, Texas - Fidel Perales-Castillo, 43, has been arrested and charged with possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala in San Antonio and Webb County Sheriff Martin Cuellar. Perales-Castillo is a Mexican Citizen in the United States Illegally.
“Accessing, downloading and sharing child pornography constitutes a very serious crime that HSI will rigorously investigate in order to pinpoint the alleged perpetrator and potential victims,” said Ayala. “Make no mistake, if you use the Internet to download child pornography, you will be identified, arrested and prosecuted.”
Perales-Castillo was arrested today following an investigation by the Laredo Child Exploitation Task Force led by HSI and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service. He is expected to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker tomorrow morning.
“This is just one of the several cases that our investigators are keeping a close eye on,” said Cuellar. “We will continue to utilize all resources as we track down these suspected child predators.”
The criminal complaint, filed today, alleges Perales-Castillo utilized the Internet to download images depicting a minor engaging in sexually explicit conduct. Such images were allegedly downloaded multiple times over the past four years to a computer that was seized from his possession.
If convicted, Perales-Castillo faces up to 20 years in federal prison and a possible $250,000 fine. Upon conviction, he will also be required to register as a sex offender.
This case, prosecuted by Assistant U.S. Attorney Sarah Ellison, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Pleads Guilty to Making False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that RACE ADDINGTON, 49, of Houston, pled guilty today to two counts of making false statements to agencies or departments of the United States in relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal 225 located on a federal mineral lease in the Gulf of Mexico.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer pressure chart that recorded the testing of the blowout preventer testing done on November 27, only recorded 6 of the 7 required components as being tested and was not signed nor dated by any representative on the platform.
On or about November 28, 2012, ADDINGTON, as the well site supervisor for the platform saw the results of the blowout preventer testing and had workers create a false blowout preventer test. The next day when Bureau of Safety and Environmental Enforcement (BSEE) inspectors conducted a routine inspection of the platform, ADDINGTON presented the fabricated blowout preventer pressure test chart to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system.
On December 6, 2012, during an investigation of the veracity of the blowout preventer test by the Department of Interior’s Investigation and Review Unit, ADDINGTON lied and told investigators the false chart he provided inspectors was a test of the chart recorder and that the inspectors mistakenly retrieved the wrong pressure chart from the files when in truth and in fact he knew that he had the blowout preventer pressure test chart fabricated and personally presented the chart to inspectors as the actual test record for the platform’s blowout preventer system.
U.S. District Judge Helen G. Berrigan set sentencing for May 20, 2015. ADDINGTON faces a maximum term of imprisonment of 5 years per count and/or a maximum fine of $250,000 per count.
The U.S. Attorney’s Office praised the work of the Department of Interior-Office of Inspector General, Energy Investigations Unit, with assistance from the Investigations and Review Unit, and the Bureau of Safety and Environmental Enforcement in investigating this matter. Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit is in charge of the prosecution.
Former Insurance Company Service Rep Indicted on Embezzlement ChargesRead the Press Release
TOPEKA, KAN. – A former insurance company service representative in Topeka was indicted Wednesday on federal embezzlement charges, U.S. Attorney Barry Grissom said.
Erin Rebecca Thomas, 46, formerly of Topeka, Kan., is charged with five counts of embezzlement. The indictment alleges that the crimes took place while she was an employee of American Home Life Insurance Company.
The indictment alleges:
On July 26, 2010, she embezzled a $5,177 death claim.
On Dec. 27, 2010, she forged a loan request for $9,500.
On May 18, 2011, she forged a loan request of $18,500.
On Oct. 18, 2011, she changed the name of a policy owner and fraudulently caused a check to be issued for $19,000.
On Feb. 16, 2012, she forged a loan request for $25,000.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
OTHER INDICTMENTS
Hinds Thomas Jones, 46, Vicksburg, Miss., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred May 9, 2010, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Duston Slinkard and Assistant U.S. Attorney Randy Hendershot are prosecuting.
Collin Graham Bicknell, 22, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 11, 2015, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
William D. Gross, 59, who is in custody in the Osage county Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 11, 2014, in Osage County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Federal Prison Chaplain Pleads Guilty to Passing Messages for Convicted Killer Frank Calabrese, Sr.Read the Press Release
CHICAGO - A former federal prison chaplain who ministered to convicted killer Frank Calabrese, Sr., pleaded guilty today to passing messages from Calabrese concerning the recovery of a hidden violin from a residence Calabrese once owned in Williams Bay, Wis., federal law enforcement officials announced today. The defendant, Eugene Klein, 66, was charged in June, 2011, and pled guilty today in front of U.S. District Court Judge John W. Darrah to one count of conspiracy to defraud the United States. Judge Darrah set sentencing for June 23, 2015, in Federal Court. Klein faces a maximum sentence of five years in prison and a $250,000 fine.
According to court documents, Klein obstructed enforcement of Special Administrative Measures (“SAMs”), first imposed on Calabrese in November 2008, to prevent him from further participating in illegal activities while incarcerated by restricting Calabrese’s contacts with others. Calabrese told Klein that he had hidden a valuable Stradivarius violin in his Wisconsin residence. In an effort to prevent the government from seizing the instrument and applying the proceeds toward a $4.4 million restitution judgment that Calabrese owed to his victims, Calabrese formulated a plan and enlisted Klein and two individuals to remove the violin from the Wisconsin residence.
Klein, of Springfield, Mo., a Roman Catholic priest, was employed as a chaplain at the U.S. Bureau of Prisons Medical Center for Federal Prisoners in Springfield, Mo., where Calabrese served a life sentence prior to his death in 2013. As chaplain, Klein was permitted to meet with Calabrese on a regular basis to provide religious ministry, such as the sacrament of Holy Communion. Because of the position of trust he occupied, Klein was able to have close and frequent communication with Calabrese.
Klein knew that prison rules prohibited him from taking letters and messages into and out of the prison. He was also informed of the SAMs and understood they prohibited the passing of any information or messages to or from Calabrese. The SAMs, which have been renewed annually and remained in effect in 2011, restricted Calabrese?s privileges in prison, including his access to the mail, media, telephone and visitors. Under the SAMs, Calabrese was prohibited from having contact with anyone outside the prison, except his attorney and certain immediate family members. Except for communications with his attorney, all oral and written communications with immediate family members, including mail and visits, were subject to review and/or observation to ensure that Calabrese did not pass any messages to anyone that could be used to further criminal activity.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and John F. Oleskowicz, Special Agent-in-Charge of the U.S. Department of Justice Office of the Inspector General, Chicago Field Office.
The government is being represented by Assistant U.S. Attorneys Amarjeet Bhachu and Jennie Levin.
Plea Agreement
Former Defense Contractor on His Way to Prison for Trying to Sell Defective Machine Gun Parts to Department of DefenseRead the Press Release
Colorado Resident Howard Cahn, Who Tried to Save His Michigan Manufacturing Business by Selling Defective Machinegun Components to DoD in 2009, Sentenced to 30 Months in Federal Prison
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Colorado resident Howard “Jack” Cahn, was sentenced in federal court in Kalamazoo, Michigan, to 30 months in prison for attempting to sell the Department of Defense (DoD) machinegun replacement parts that were not only technically noncompliant with contract requirements, but that also included materially defective components.
The parts, which had been produced by Cahn’s manufacturing company “Aerospace Manufacturing Services (AMS),” located in Buchanan, Michigan until it closed in early 2010, were critical internal components for the “M-249” 5.56 mm Squad Automatic Weapon (SAW) and the “Mark 19” 40 mm grenade-machinegun. Both weapons systems are in wide use by all branches of the U.S. Armed Forces, and the components in question were essential to the reliable and safe functioning of those weapons systems. Cahn was convicted after a four-day jury trial during October 2014 in U.S. District Court in Kalamazoo, Michigan. The evidence at trial established that, with AMS in deep financial trouble and unable to fulfill its contracts with DoD, Cahn not only attempted to pass off Mark 19 parts that had actually been manufactured in Colorado without DoD oversight as AMS product, but also forced employees to add defective SAW parts that had been designated as scrap to a shipment of parts that was ready to be delivered to DoD. The evidence also established that, if they had made it into the supply chain and into the field, the defective SAW parts could have caused machineguns to become inoperable in combat.
Chief U.S. District Judge Paul L. Maloney sentenced Cahn to serve 30 months in Federal prison, after noting that Cahn’s offenses were “particularly egregious.” Cahn not only forced several young employees to participate in the offense at the fear of losing their jobs, but the offense itself could have endangered U.S. troops in combat if those same AMS employees had not decided to turn Cahn in to DoD quality-assurance inspectors when they realized the potential danger to U.S. troops. Commenting on the seriousness of Cahn’s crimes, Judge Maloney stated, “I don’t know how you could ever explain to the parents of a Marine or a Soldier that their loved one had been killed because their machinegun stopped firing when they needed it most.” The Chief Judge added that sending a strong deterrent message to any other defense contractor who might try to make a profit by evading DoD’s quality-control measures was also “at the top of the court’s list” among the various sentencing factors.
Commenting on the sentence, U.S. Attorney Miles stated, “Defense-procurement fraud is a serious offense that my office will vigorously pursue. When it involves misconduct that also can endanger U.S. troops in the field, it goes beyond serious to outrageous. Mr. Cahn tried to save his company and make a dollar even if it meant sending U.S. troops into battle with defective weapons during the height of combat operations in Iraq and Afghanistan. As a result, instead of being a businessman and defense contractor, he is now a federal felon and inmate.”
The case was investigated by special agents of the U.S. Army Criminal Investigation Division (Army CID) and the Defense Criminal Investigative Service (DCIS). It was prosecuted by Assistant U.S. Attorneys Hagen W. Frank and Russell A. Kavalhuna.
END
Former Corrections Officer Receives 97-Month Prison SentenceRead the Press Release
HONOLULU – Former corrections officer Feso Malufau, age 55, was sentenced today by U.S. District Judge Leslie E. Kobayashi to 97 months imprisonment on charges that he conspired with the USO Family prison gang to obtain and smuggle methamphetamine and other contraband into Halawa Correctional Facility. A federal jury found Malufau guilty of racketeering on October 10, 2014, following a nine-day jury trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information presented during the trial, other conspirators paid Malufau thousands of dollars to smuggle drugs, including methamphetamine, and cigarettes into prison and deliver them to USO gang members. In rendering the sentence, Judge Kobayashi addressed the dangers of injecting methamphetamine into the “powder keg” of a prison facility. As reasons for the length of the sentence, she pointed to Malufau’s abuse of the public trust (as a sergeant), his endangerment of the lives of his co-workers and vulnerable prison inmates, and his contributions to emboldening the powerful USO Family gang. Judge Kobayashi described the evidence against him at trial as “overwhelming,” and expressed a desire for the sentence to send a message to others considering engaging in similar behavior that it is not worth the risk.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, the State of Hawaii Department of Public Safety, and the Honolulu Police Department. Assistant United States Attorneys Thomas J. Brady and Jill Otake prosecuted this case.
Former Contractor Sentenced in Nagin Bribery CaseRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that FRANK FRADELLA, age 57, a resident of Covington, was sentenced today in connection with his role in the C. RAY NAGIN bribery case.
According to documents filed in federal court, FRANK FRADELLA pled guilty to filing a false financial report and bribing former mayor NAGIN. FRADELLA pled guilty in June, 2012 and cooperated extensively with the United States following his guilty plea.
FRADELLA testified against former mayor NAGIN, during a three week jury trial in February 2014, in which NAGIN was found guilty of bribery, money laundering and tax violations.
United States District Judge Susie Morgan sentenced FRADELLA to serve one year plus one day imprisonment, followed by one year of supervised release. In addition to the term of imprisonment, FRADELLA was ordered to pay a $10,000 fine.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Investigation, the Department of Treasury, Criminal Investigations Division, and the New Orleans Inspector General’s Office in investigating this matter. Assistant United States Attorneys Richard R. Pickens, II and Matthew M. Coman were in charge of the prosecution.
Former Contracting Officer and Contractor Charged with Bribery Scheme in Connection with Awarding of U.S. Postal Service ContractsRead the Press Release
A former U.S. Postal Service contracting officer, along with a mail delivery contractor, were indicted today for engaging in a scheme to defraud the Postal Service through bribery and kickbacks in connection with the awarding of contracts to deliver the mail.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Inspector General David C. Williams of the U.S. Postal Service made the announcement.
Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service Contracting Officer Representative and Purchasing and Supply Management Specialist, and Barbara Murphy, 51, of Rocky Mount, North Carolina, the owner and operator of MC&G Trucking LLC and ER&R Transportation, were charged today in a ten-count indictment unsealed in the District of Maryland. Both Cooper and Murphy are charged with one count of conspiracy and five counts of honest services wire fraud, and each is separately charged in a single count of bribery. Cooper is also charged with one count of executing a false document and one count of making false statements.
According to the indictment, from January 2011 through July 2012, Cooper allegedly solicited and accepted bribes and kickbacks from Murphy in exchange for helping her win contracts for delivery of the mail. Specifically, the indictment alleges that Cooper accepted, among other things, cash deposits into his checking account, payments against his car loan and cell phone bills and a college tuition payment on behalf of his daughter. In exchange, Cooper allegedly assumed the responsibility for reviewing the contracts on which Murphy bid from his subordinates, recommended that Murphy be awarded nine Postal Service contracts worth $1.5 million, provided Murphy with confidential bid information and assumed direct oversight over Murphy’s contracts from his subordinates. The indictment further alleges that Cooper made false statements to investigators regarding his allegedly corrupt relationship with Murphy and executed a false financial disclosure document failing to disclose the bribes he had accepted from Murphy.
The charges and allegations contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the U.S. Postal Service Office of the Inspector General. The case is being prosecuted by Trial Attorneys Maria Lerner and Mark Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Arun Rao of the District of Maryland.
Former Altoona City Clerk Pleads Guilty to Bank FraudRead the Press Release
WICHITA, KAN. – A former city clerk of Altoona, Kan., pleaded guilty Wednesday to bank fraud, U.S. Attorney Barry Grissom said.
Chrystal Scherbarth, 30, Altoona, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted the crime occurred while she was employed as city clerk. She used her access to the city’s accounts at the First Neodesha Bank to commit the crime.
The city of Altoona suffered a total loss of more than $47,800. Scherbarth diverted money from the city by fraudulently increasing her own hourly pay, fraudulently paying herself for overtime, fraudulently crediting herself with unearned paid vacation and fraudulently crediting herself with unearned sick leave.
Sentencing is set for April 29. She faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Grissom commended the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
Federal Jury Convicts Two in Drug Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Two men have been found guilty for their roles in a large-scale drug-trafficking conspiracy, announced U.S. Attorney Kenneth Magidson.
Guillermo Herrera, 55, and Hector Alberto Burton aka Hector Alberto Camacho, 40, were convicted of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana and aiding and abetting each other to possess with the intent to distribute more than 100 kilograms of marijuana on Jan. 22, 2013. The federal jury returned its verdicts late today following a three-day trial and less than two hours of deliberation.
Herrera, of Edinburg, and Burton, of Commiskey, Ind., were arrested in 2014 on charges relating to their participation in a South Texas drug-trafficking organization. The government presented evidence regarding the seize of more than 500 pounds of marijuana. Evidence presented showed that Burton orchestrated the transportation of the marijuana from another state and Herrera was hired to drive the load.
Senior U.S. Judge Hayden Head, who presided over the trial, has set sentencing for April 29, 2015, at which time Herrera and Burton a minimum of five and up to 40 years in federal prison.
Burton was permitted to remain on bond, while Herrera has been and will remain in custody pending that hearing.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Texas Department of Public Safety, Aransas Pass Police Department, U.S. Marshals Service and the Kingsville Specialized Narcotics Task Force. Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
FBI Investigation Leads to Fraud Charges Against Moon Twp. ManRead the Press Release
PITTSBURGH - A resident of Moon Township has been indicted by a federal grand jury in Pittsburgh on charges of wire and mail fraud, United States Attorney David J. Hickton announced today.
The four-count indictment, returned yesterday, named Ryan T. Blumling, 34.
According to indictment presented to the Court, Blumling engaged in conduct over the period 2005 through 2014 in which he defrauded a series of potential investors and potential borrowers by making false representations and failing to use funds consistent with the promises he made to investors.
The law provides for a maximum total sentence of up to 20 years in prison, and a fine of up to $250,000 or both at each of the four counts (two counts of wire fraud and two counts of mail fraud). Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Blumlling is currently incarcerated in the Allegheny County jail on unrelated state charges.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Essex County, New Jersey, Man Sentenced to 14 Years in Prison for Brandishing Weapon During CarjackingRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 168 months in prison for brandishing a shotgun during an armed carjacking in Little Falls, New Jersey, U.S. Attorney Paul J. Fishman announced.
Defense counsel: Mark Berman Esq., River Edge, New Jersey
Ivan Lee, 26, was found guilty of the brandishing a firearm charge following a one-week trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court. Lee had been charged by indictment with one count of theft of a motor vehicle by force, violence, and intimidation and one count of use of a firearm in furtherance of a crime of violence. Lee pleaded guilty to the carjacking count.
According to documents in this case and the evidence at trial:
On Oct. 30, 2011, Lee and Hanza Darby, 25, of Newark, were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and Lee – who brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint. Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time.
In addition to the prison term, Judge Wigenton sentenced Lee to three years of supervised release. Darby previously pleaded guilty to carjacking and brandishing a weapon in furtherance of a crime of violence. He is awaiting sentencing.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the N.J. State Police, under the direction of Col. Rick Fuentes; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the Wayne Police Department, under the direction of Chief James Clarke, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Cari Fais and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
15-057Essex County, New Jersey, Man Admits to Armed Carjacking and Bribing a Corrections Officer to Smuggle Contraband into Essex County JailRead the Press Release
TRENTON, N.J. – A Newark, New Jersey, man today admitted his role in an armed carjacking and subsequent involvement in a scheme to bribe a corrections officer to smuggle contraband, including marijuana and cell phones, into the Essex County Correctional Facility, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Quasim Nichols, 30, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of committing an armed carjacking and one count of conspiring with others, including Essex County Corrections Officer Stephon Solomon, 27, of Irvington, New Jersey, to commit extortion under color of official right. Nichols is being held without bail.
According to the documents filed in this case, other cases, and statements made in court:
On May 28, 2012, Nichols and three men were traveling in a gray Dodge Magnum toward Elizabeth, New Jersey. Nichols was driving the vehicle. Upon arriving in Elizabeth, the three men exited the car and approached a 2005 BMW 645. The men pointed handguns in the direction of the BMW’s passengers and ordered them out of the car. Two of the men then entered the BMW and drove it away. The third man re-entered the Dodge Magnum driven by Nichols. The third man was carrying a black Taurus Millennium semi-automatic handgun and a cell phone that had been stolen from one of the occupants of the BMW. Nichols and the third man drove away and followed the stolen BMW.
While driving away from the scene, multiple police vehicles activated their overhead lights and turned on their sirens in an effort to stop Nichols. Nichols continued to drive the Dodge Magnum at a high rate of speed from Elizabeth into Newark, drove through a red light and struck a vehicle at the intersection of Martin Luther King Boulevard and Market Street. The driver of the other vehicle suffered serious injury. Nichols and the other man then attempted to flee the area on foot.
Subsequently, while detained at the Essex County Correctional Facility on the armed carjacking charge, Nichols conspired with others, including Solomon, Dwayne Harper, 31, of Newark, and Darsell Davis, 29, of Newark, to pay cash bribes to Solomon so that he would smuggle contraband – including cell phones, tobacco, and marijuana – into the Essex County Correctional Facility. After Davis and Harper collected the contraband, Davis delivered the items and cash bribes to Solomon, who then smuggled the contraband to Nichols. Nichols ultimately sold the marijuana and cell phones to other inmates. The inmates purchasing marijuana and cell phones had their friends and family pay for the items by sending Western Union money transfers to Nichols, who enlisted Davis and others to retrieve those payments. Davis obtained at least $4,300 in Western Union payments for Nichols.
Solomon pleaded guilty Oct. 1, 2014, to conspiring to commit extortion under color of official right and is scheduled to be sentenced March 25, 2015. Darsell Davis pleaded guilty Oct. 21, 2014, to conspiring to commit extortion under color of official right and awaits sentencing. Dwayne Harper pleaded guilty Oct. 21, 2014, to conspiring to smuggle marijuana into the Essex County Correctional Facility and awaits sentencing. Davis and Solomon have been released on bail. Harper is being held without bail in New Jersey.
The armed carjacking charge carries a maximum penalty of 25 years in prison. The conspiracy charge carries a maximum penalty of 20 years in prison. Each charge also carries a maximum fine of $250,000. Nichols agreed to forfeit $4,300 consisting of his proceeds from the contraband smuggling conspiracy. His sentencing is scheduled for May 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; investigators with the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Warden Roy Hendricks; the Port Authority of New York and New Jersey; the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Elizabeth Police Department, under the direction of Director James Cosgrove, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jim Donnelly and Rob Frazer of the Criminal Division, Organized Crime/Gangs Unit, and Rahul Agarwal of the U.S. Attorney’s Office, Special Prosecutions Division, in Newark.
15-056Defense counsel: Michael J. Pappa Esq., Hazlet, New Jersey