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30 March 2015
Brazilian Man Pleads Guilty and Sentenced for Illegally EntryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Demilson Loubak Ferreira, 36, of Brazil, pleaded guilty to illegally entering the United States at a location other than a designated port of entry before U.S. Magistrate Judge Jeremiah J. McCarthy. The defendant was then sentenced to time served.Assistant U.S. Attorney Paul J. Campana, who handled the case, stated that on March 26, 2015, shortly after 11:00 p.m., the defendant, his wife and their child were found aboard a freight train crossing the Blackrock International Train Bridge in Buffalo. The train was stopped at the order of a Customs and Border Protection Officer who detected the Ferreira and his family on the train.
The defendant’s wife and child were returned to Canada on March 27, 2015. Ferreira will also be removed to Canada.
The plea and sentencing are the result of an investigation by Customs and Border Protection, under the direction of Acting Special Agent in Charge Rose Hilmey.
Berlin Man Charged with Producing Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted David Edward Weatherholtz, age 55, of Berlin, Maryland, on charges of producing and possessing child pornography, and attempting to entice minors to engage in sex. The indictment was returned on March 24, 2015 and unsealed today upon his arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Worcester County Sheriff Reggie T. Mason, Sr. and Worcester County State’s Attorney Beau Oglesby.
According to the six count indictment, from 2008 to 2012, Weatherholtz coerced a minor to engage in sex to produce images of child pornography. On December 16, 2014, Weatherholtz is alleged to have possessed a computer hard drive and a laptop containing child pornography.
The indictment further alleges that from December 3 to 16, 2014, Weatherholtz used electronic mail and text messaging to attempt to coerce minors to engage in sex.
Weatherholtz faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of three counts of producing child pornography; life in prison, with a minimum mandatory sentence of 10 years in prison, for attempted enticement; and 10 years in prison on each of two counts for possession of child pornography. An initial appearance was held this afternoon in U.S. District Court in Baltimore. Weatherholtz was detained pending a detention hearing scheduled for April 3, 2015 at 11:30 a.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 HSI Baltimore, Maryland State Police, Worcester County Sheriff’s Office, Worcester County State’s Office’s Office and the Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
BSI SA of Lugano, Switzerland, is First Bank to Reach Resolution Under Justice Department’s Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that BSI SA, one of the 10 largest private banks in Switzerland, is the first bank to reach a resolution under the Department of Justice’s Swiss Bank Program.
“Because of the department’s continuing efforts to root out offshore tax evasion, Swiss banks are operating much differently today than they did just a few years ago, and the department’s Swiss Banking Program is a big part of that change,” said Acting Deputy Attorney General Sally Quillian Yates. “When we announced the program, we said that it would enhance our efforts to pursue those who help facilitate tax evasion and those who use secret offshore accounts to evade taxes. And it has done just that. We are using the information that we have learned from BSI and other Swiss banks in the program to pursue additional investigations into both banks and individuals.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared United States-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
- Make a complete disclosure of their cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, BSI agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts, and pay a $211 million penalty in return for the department’s agreement not to prosecute BSI for tax-related criminal offenses.
“The department’s Swiss Bank Program is an innovative effort to get the financial institutions that facilitated a massive fraud on the American tax system to come forward with information about their wrongdoing – and to ensure that they are held responsible for it,” said Acting Associate Attorney General Stuart F. Delery. “Today’s resolution demonstrates that the program is working. BSI is paying an appropriate penalty for its misconduct and the information and continuing cooperation we have required the banks to provide in order to participate in the program is allowing us to systematically attack offshore tax avoidance schemes.”
BSI helped its U.S. clients create sham corporations and trusts that masked the true identity of its U.S. accountholders. Many of its U.S. clients also opened “numbered” Swiss bank accounts that shielded their identities, even from employees within the Swiss bank. BSI acknowledged that in order to help keep identities secret, it issued credit or debit cards to many U.S. accountholders without names visible on the card itself.
BSI not only helped U.S. clients shield their identity from the Internal Revenue Service (IRS). but helped them repatriate cash as well. BSI admitted that its relationship managers and their U.S. clients used code words in emails to gain access to funds. BSI disclosed instances where its U.S. clients would use coded language, such as asking their private bankers, “can you download some tunes for us?” or note that their “gas tank is running empty” when they required additional cash to be loaded to their cards.
From the beginning of the Swiss Bank Program, the department has emphasized the importance of the banks’ helping to identify individuals who facilitate U.S. tax evasion and U.S. accountholders. BSI provided substantial assistance in this regard.
“An individual is not culpable simply because he or she is identified by a bank within the program,” said Acting Assistant Attorney General Caroline D. Ciraolo of the department’s Tax Division. “With that said, the department strongly encourages those individuals and entities currently under indictment, under investigation, or who have concerns regarding their potential criminal liability to contact and fully cooperate with the department to reach a final resolution.”
Since 2009, the department has charged more than 100 offshore bank accountholders, dozens of facilitators, and financial institutions. The department’s offshore enforcement efforts have reached far beyond Switzerland, as evidenced by publicly announced actions involving banking activities in India, Luxembourg, Liechtenstein, Israel and the Caribbean.
BSI had more than 3,000 active United States-related accounts after 2008, many of which it knew were not disclosed in the United States. In resolving its criminal liabilities under the program, BSI provided extensive cooperation and encouraged hundreds of U.S. accountholders to come into compliance. BSI is also assisting with ongoing treaty requests.
“This action under the Swiss Bank Program shows just how far we’ve come in our efforts to stop offshore tax avoidance,” said Deputy Commissioner Douglas O’Donnell of IRS’s Large Business and International Division (LB & I). “The IRS and DOJ remain committed to aggressively enforce our nation's tax laws regardless of how sophisticated or complicated the schemes may be.”
While BSI’s U.S. accountholders who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS’s offshore voluntary disclosure programs, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS offshore voluntary disclosure program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of BSI’s non-prosecution agreement, its noncompliant U.S. accountholders must now pay that 50 percent penalty to the IRS if they wish to enter the IRS’ program.
BSI and other banks in the Swiss Bank Program are also providing detailed information to the department about transfers of money from Switzerland to other countries. The Tax Division and the IRS intend to follow that money to uncover additional tax evasion schemes.
The department has emphasized the importance of identifying U.S. accountholders who have undeclared foreign bank accounts, and BSI has provided assistance in that task. Because of the information provided to the department under the program, the Tax Division has already begun the process of identifying noncompliant U.S. accountholders who have maintained accounts at many Swiss banks participating in the Swiss Bank Program.
“Today’s action sends a clear message to anyone thinking about keeping money offshore in order to evade tax laws,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Fighting offshore tax evasion continues to be a top priority for IRS-CI and we will trace unreported funds anywhere in the world. IRS-CI special agents are our nation’s best financial investigators, trained to follow the money and enforce our country’s tax laws to ensure fairness for all.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and LB & I for their substantial assistance, as well as Trial Attorney Kevin F. Sweeney of the Tax Division, who served as lead counsel on this matter, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
- Make a complete disclosure of their cross-border activities;
Acoma Pueblo Man Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Arthur L. Garcia, 23, a member and resident of Acoma Pueblo, N.M., pleaded guilty on Friday, March 27, 2015, to a voluntary manslaughter charge.
According to court filings, Garcia killed the victim, a 33-year-old Acoma Pueblo man, in the early morning hours of May 8, 2014, by throwing a weight at the victim and striking him in the head. The crime occurred during a scuffle between Garcia and the victim on Acoma Pueblo in Cibola County, N.M.
During Friday’s proceedings, Garcia pled guilty to a felony information charging him with voluntary manslaughter. In entering his guilty plea, Garcia admitted killing the victim by striking the victim with a ten-pound weight with the intention of causing him serious bodily injury.
At sentencing, Garcia faces a statutory maximum penalty of 15 years in prison followed by at least three years of supervised release. Garcia has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Acoma/Laguna Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
28 March 2015
March Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 27 indictments charging 30 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jose Acosta-Noguez, a/k/a Jorge Avila, age 45, of Lincoln, is charged with illegal reentry into the United States on or about March 2, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Misti Bohlen, age 33, of Blue Hill, Nebraska, is charged in a two-count Indictment . Count I of the Indictment charges the defendant with misappropriation of postal funds from on or about November 2014, through and including to on or about February 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Bohlen with false entries and reports of money or securities while being a United States Postal Service employee from on or about November 2014, through and including to on or about February 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Abraham Diaz, age 50, of Omaha, is charged with illegal reentry into the United States on or about March 6, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Israel Gaytan-Cruz, age 34, of Omaha, is charged with illegal reentry into the United States on or about March 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Anthony Shaquille Harris, age 25, and Tiara A. Blanco-Liggins, age 23, both of Lincoln are charged in a two-count Indictment. Count I of the Indictment charges the defendants with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about February 16, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Harris and Blanco-Liggins with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about February 16, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Yazmani Hernandez-Hernandez, age 30, of Omaha, is charged with illegal reentry into the United States on or about March 12, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Timothy Patrick Hoyt, age 44, is charged with robbery from the Godfather’s Pizza Restaurant, 15234 West Maple Road, Omaha, Nebraska, on or about July 23, 2013. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Emiliano Juarez Lopez, age 38, of Lincoln, is charged with illegal reentry into the United States on or about March 9, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* John S. Loeffler, age 52, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography from between on or about July 2013 and continuing through September 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Loeffler with possession of child pornography on or before September 28, 2014.
The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Jose Fortino Macia Gonzalez, age 36, of Lincoln, is charged with illegal reentry into the United States on or about March 4, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Miguel Martell-Rios, age 36, of Omaha, is charged with illegal reentry into the United States on or about March 1, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Shyla Martinez is charged with misprision of a felony from an unknown date but at least as early as July 15, 2014, up to and including October 25, 2014. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 1 year term of supervised release and a $100 special assessment.
* Cynthia Mcauliffe, also known as Cyndi Mcauliffe, age 31, of Alexandria, Nebraska, is charged in a two-count Indictment . Count I of the Indictment charges the defendant with misappropriation of postal funds from on or about July 2014, through and including to on or about January 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Mcauliffe with false entries and reports of money or securities while being a United States Postal Service employee from on or about July 2014, through and including to on or about January 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Frank I. Nava, age 32, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine beginning on or about December 1, 2014, and continuing to on or about February 3, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II, III and IV of the Indictment charge Nava with distribution of 5 grams or more of methamphetamine on or about December 22, 2014, on or about January 8, 2015 and on or about January 12, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment for each count.
* Roman Perales, age 16, of Winnebago, is charged in a five-count Indictment . Counts I and II of the Indictment charge the defendant with assault with intent to commit any felony on or about September 22, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges Perales with assault with a dangerous weapon on or about September 22, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges defendant with discharging a firearm during a crime of violence on or about September 22, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count V of the Indictment charges Perales with making threatening interstate communications on or about September 13, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Armando Perez-Sanchez, a/k/a Mario Pena-Sanchez, age 39, of Omaha, is charged with illegal reentry into the United States on or about February 11, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Charles M. Perkins, Jr., age 49, of Omaha, is charged with failure to register as a sex offender from on or about December 11, 2014, and continuing until January 27, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Ramon Pintado-Delgado, age 42, of Omaha, is charged with illegal reentry into the United States on or about March 10, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Felipe Andres Portillo-Cortes, age 33, of Omaha, is charged with illegal reentry into the United States on or about March 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Preciado, age 28, of Mojave, California and Alberto Hineges, Jr., age 29, of Mendota, California are charged in a two-count Indictment. Count I of the Indictment charges Preciado with possession with intent to distribute a mixture of methamphetamine on or about February 28, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Hineges with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about February 28, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment
* Jose Ramirez Figueroa, a/k/a Antonio Ramirez Figueroa, age 29, of Omaha, is charged with illegal reentry into the United States on or about February 19, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Leonel Ramirez Gomez, age 48 , of Grand Island, Nebraska, is charged in a three-count Indictment. Counts I and II of the Indictment charge the defendant with distribution of a mixture containing methamphetamine on or about January 16, 2015 and January 23, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment for each count. Count III of the Indictment charges Gomez with carrying a firearm during and in relation to, a drug trafficking offense on or about January 23, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Danielle Marie Rico, age 31, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with theft of Government funds from the Social Security Administration beginning in or around July 2008, and continuing without interruption until in or around July 2013 by receiving Social Security Disability Insurance Benefits payments made to her to which she knew she was not entitled. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Rico with social security fraud on or about May 30, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count III of the Indictment charges the defendant with making a false statement on or about June 20, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Joshua W. Rodriguez, age 32 , of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession of a machine gun on or about December 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Rodriguez with drug user in possession of a firearm on or about December 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Juana Tapia Borjas, age 28, of Omaha, is charged with illegal reentry into the United States on or about February 25, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Miguel Tercero Bernabe, age 39, of Omaha, is charged with illegal reentry into the United States on or about February 23, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ezequiel Zavala, age 40, and Mark Andrew Johnson, age 50, both of Omaha, are charged in a three-count Indictment. Count I of the Indictment charges Zavala with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine beginning on or about June 2014, and continuing to on or about March 5, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Zavala with possession with intent to distribute 50 grams of a mixture containing methamphetamine on or about March 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count III of the Indictment charges Johnson possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about March 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment.
27 March 2015
Wrigley Field Rooftop Owner Indicted in Alleged Scheme to Defraud Chicago Cubs, State and Local Taxing AuthoritiesRead the Press Release
CHICAGO ― An owner and operator of a rooftop entertainment venue overlooking Wrigley Field was indicted on federal fraud charges for allegedly scheming to withhold approximately $600,000 due and owing collectively to the Chicago Cubs, the State of Illinois, Cook County, and the City of Chicago, federal law enforcement officials announced today.
The defendant, R. MARC HAMID, 46, an attorney licensed in Illinois and residing in Chicago, owned and operated the rooftop venue Skybox on Sheffield located beyond the right field wall and bleachers of Wrigley Field. Hamid also owned and operated companies that purchased and re-sold tickets to entertainment and sporting events, including JustGreatTickets.com and Just Great Seats. Hamid was charged with four counts of mail fraud in an indictment that was returned yesterday by a federal grand jury. He will be arraigned on a date yet to be determined in U.S. District Court.
The indictment also seeks forfeiture of at least $600,000 in alleged fraud proceeds.
According to the indictment, for the years 2008 through 2011, Hamid caused Skybox on Sheffield to submit false annual royalty statements to the Chicago Cubs that fraudulently under-reported event attendance figures by thousands of paid attendees, and under-reported gross revenues for the rooftop by a total of more than $1.5 million. By concealing the actual revenues of Skybox on Sheffield from the Cubs, Hamid caused Skybox on Sheffield to withhold hundreds of thousands of dollars in royalty payments rightfully owed to the Cubs under the terms of the rooftop’s agreement with the Cubs.
Hamid also caused Skybox on Sheffield to submit false sales tax returns to the State of Illinois and false amusement tax returns to Cook County and the City of Chicago that fraudulently under-reported event attendance and gross revenues during 2008-2011. By concealing the actual attendance and revenues of Skybox on Sheffield, Hamid caused Skybox on Sheffield to withhold hundreds of thousands of dollars due and owing to the state and local taxing authorities.
According to the indictment, Hamid caused Skybox on Sheffield to falsely report that the rooftop had 200 or fewer attendees at certain events, when Hamid knew that more than 200 persons had attended the events, making it appear that the rooftop had complied with city ordinances limiting the number of attendees at the rooftop to 200 per event. Hamid also allegedly caused sales revenues for Skybox on Sheffield to be diverted to his ticket businesses, including Just Great Tickets and Just Great Seats, in order to conceal some of the rooftop revenues from the Cubs and others. According to the indictment, Hamid used the unlawfully withheld funds to pay Hamid’s personal expenses, and business expenses of Skybox on Sheffield and Hamid’s other businesses.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Stephen Boyd, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation in Chicago; and Tony Gómez, Postal Inspector in Charge of the U.S. Postal Inspection Service in Chicago. The government is being represented by Assistant U.S. Attorneys Ryan Hedges, Barry Jonas, and Katherine Neff Welsh.
Each count of mail fraud carries a maximum sentence of 20 years in prison and a $250,000 fine or an alternate fine of twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Volo, Illinois Woman Charged in Federal Court with Attempted Robbery of Chase Bank in JohnsburgRead the Press Release
ROCKFORD — A Lake County woman was charged yesterday in federal court with attempted bank robbery. TERESA M. KNOWLES, 39, of Volo, Ill., was charged with the attempted robbery of Chase Bank located at 2911 Commerce Drive, Johnsburg, Illinois, on March 24, 2015. According to the complaint, Knowles entered Chase Bank at about 4:36 p.m. and approached a teller window at the counter and passed a note to the teller demanding money. The teller refused to turn over any money to the defendant and the defendant left the bank. Thereafter, officers of the McHenry Police Department stopped Knowles in a vehicle matching the description of the vehicle used in the attempted robbery.
Knowles is scheduled to appear before U. S. Magistrate Judge Iain D. Johnson for an initial appearance on March 31, 2015, at 11:00 a.m. in federal court in Rockford.
Attempted bank robbery carries a maximum potential penalty of up to 20 years in prison, up to 3 years of supervised release following imprisonment, a fine of up to $250,000, and full restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Keith Von Allmen, Chief of the Johnsburg, Illinois Police Department; John M. Jones, Chief of the McHenry, Illinois Police Department; and Phillip Perlini, Chief of the Grayslake, Illinois Police Department.
The government is represented by Assistant U.S. Attorney Michael D. Love.
U.S. Attorney Finley to speak to Shreveport breakfast group for Women’s History MonthRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley plans to visit the Tuesday Morning Breakfast Group to speak in honor of Women’s History Month.
The meeting is scheduled for 8 a.m., March 31, 2015, at the Pamoja Cultural Center, 3806 Linwood Ave., Shreveport. In observance of Women’s History Month, the Tuesday Morning Breakfast Group has selected local women to speak on a variety of issues. Finley will discuss her role as the U.S. Attorney of the Western District of Louisiana as well as the history and the progress women have made in the United States. The meeting is free and open to the public. Breakfast is Dutch treat. For more information, contact coordinator Lloyd Thompson at (318) 934-8036.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010, to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force and currently serves as Chair of the U.S. Attorney’s Office of Management and Budget Committee.
U.S. Attorney Finley speaks to LSUE and Southern University law studentsRead the Press Release
EUNICE/BATON ROUGE, La. – United States Attorney Stephanie A. Finley visited Louisiana State University at Eunice and Southern University Law Center in Baton Rouge this week to talk about her office’s role in administering justice.
“I always enjoy spending time with our future leaders,” Finley said. “If I can encourage or inspire any of them to strive for excellence and commit to sacrifice, no matter their career choice, then we all benefit.
The U.S. Attorney and FBI Senior Supervisory Resident Agent Don Bostic spoke to students at LSU at Eunice during an Introduction to Criminal Justice class on March 23, 2015. Finley and Bostic gave a presentation on the federal criminal process. They touched on the role of social media in criminal cases, the relationship between federal law enforcement and local law enforcement, the work that goes into investigating a case, the various jobs offered within the Department of Justice, and the makeup of the Western District of Louisiana, among other topics.
Louisiana State University at Eunice is a two-year community college, which is part of the LSU school system, and was founded in the mid-1960s. Find out more at www.LSUE.edu.
U.S. Attorney Finley also visited a Law Office Practice class at Southern University Law Center on March 24, 2015 in Baton Rouge. She spoke to the students about the role of the U.S. Attorney’s Office and the various careers available within agencies under the Department of Justice. She was also present to answer questions from the students about the federal civil and criminal practices of the U.S. Attorney’s Office.
Southern University Law Center was formed in 1947, and its mission is to provide access and opportunity to a diverse group of students from underrepresented racial, ethnic, and socio-economic groups to obtain a high quality legal education with special emphasis on the Louisiana civil law. Find out more at www.sulc.edu.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force and currently serves as Chair of the U.S. Attorney’s Office of Management and Budget Committee.
Syracuse Man Sentenced for Robbing Two BanksRead the Press Release
CONTACT: BARBARA BURNS
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gary R. Latray, 55, of Syracuse, NY, who was convicted of aggravated bank robbery, was sentenced to 77 months by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney John M. Alsup, who handled the case, stated that on November 10, 2009, the defendant entered Northwest Savings Bank at 3670 McKinley Parkway in Hamburg, NY, and handed the teller a note demanding a sum of money and indicating that he had an explosive device. The teller gave Latray a specific amount of money in response to the threat.
On December 1, 2009, the defendant entered a Suntrust Bank in Harrisonburg, Virginia, and carried out a similar style bank robbery.
The Court ordered that the defendant’s 77 month sentenced be served consecutively to a 30 year sentenced Latray received in Maryland on state robbery charges.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, the Hamburg Police Department, under the direction of Chief Gregory Wickett, the United States Attorney’s Office in the Western District of Virginia, under the direction of acting U.S. Attorney Anthony Giorno, the Harrisonburg, Virginia Police Department, under the direction of Chief Stephen B. Monticelli, the West Virginia State Police, under the direction of Colonel Jay Smithers, and the Garrett County, Maryland Sherriff’s Office, under the direction of Sheriff Rob Corley.
Stockbroker Sentenced to 105 Months in Scheme to Defraud Clients of over $2.6 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Gary Clark Steciuk, age 39, of Buffalo Grove, Illinois and Heber Springs, Arkansas, today to 105 months in prison followed by three years of supervised release for mail fraud in connection with a six year scheme to defraud his clients of their retirement funds. Judge Hollander also entered an order that Steciuk pay restitution of $2,386,025.07, the amount stolen from at least 18 victims.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Steciuk was a stockbroker who worked primarily out of his home in Buffalo Grove. Steciuk was authorized to sell stocks, bonds, options, mutual funds and variable annuities. In approximately 2009, Steciuk established a business, College Funding Solutions, ostensibly to provide investment advice to clients interested in investing and saving for college expenses.
According to his plea agreement, from May 2008 to August 2014, Steciuk embezzled funds from his clients’ investment accounts. These accounts were funded with client retirement funds and were maintained by the issuers of the annuities. Steciuk used a variety of methods to embezzle the funds. For example, Steciuk submitted forged forms at the firm that issued the annuities to change his clients’ address to a post office box in Hampstead, Maryland that Steciuk controlled. Steciuk then directed the firm to send funds from his clients’ accounts by check to the Maryland post office box. Steciuk forged the clients’ signatures on the back of the check, which were in the clients’ names, and deposited the checks into bank accounts he controlled. In addition, Steciuk created unauthorized loans from the clients’ annuities for his benefit; used forged transfer forms and forged checks to make unauthorized withdrawals; and in some cases, liquidated the annuities in their entirety and stole the proceeds.
Steciuk used the proceeds of the scheme to support a lavish lifestyle, including purchasing multiple homes for himself and others, as well as to support his extramarital affairs.
There were at least 18 victims of the scheme, including Steciuk’s step-grandmother and mother-in-law, as well as elderly and vulnerable victims. The total loss resulting from the fraudulent scheme is approximately $2,686,025.07.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.
St. Louis Man Sentenced for Passing Counterfeit CurrencyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 26, 2015, Wade R. Buckner, 26, of St. Louis, MO, was sentenced to 9 days in prison, and 3 years of supervised release for Passing or Uttering Counterfeit Obligations or Securities, as charged in a one count indictment. Buckner was also ordered to pay a $100.00 special assessment.
At his sentencing, Buckner admitted that he passed counterfeit United States currency at the Oz Nightclub located in Sauget, Illinois, on March 7, 2013. Buckner handed the bartender a $100 bill to purchase drinks. Immediately realizing the bill was fraudulent, the bartender ran water over it, and the ink began to run. Security escorted Buckner to the exit where he was apprehended by the authorities. Police found an addition $400 worth of counterfeit currency.
The case was investigated by the United States Secret Service and the Sauget, Illinois, Police Department. The case was prosecuted by Assistant United States Attorney Michael Hallock.
Sewickley Man Admits Conspiring to Defraud Bank, Filing False Income Tax ReturnRead the Press Release
PITTSBURGH - A resident of Sewickley, Pa., pleaded guilty in federal court to charges of conspiracy to commit bank fraud and filing a false income tax return, United States Attorney David J. Hickton announced today.
Joseph W. Nocito, Jr. pleaded guilty to two felony counts before United States District Judge Arthur J. Schwab.
According to information presented to the Court at the guilty plea, Nocito knowingly and willfully conspired with other individuals to commit an offense against the United States, that is, bank fraud, in connection with Nocito’s purchase of the real property located in Longboat Key, FL. Nocito purchased the property on July 27, 2007 with a mortgage loan from Washington Mutual Bank in the amount of $2,377,000. In loan documents submitted by Nocito to the bank, Nocito falsely represented that the purchase price of the property was $3,000,000 and that a $600,000 cash deposit had been made by or on behalf of Nocito toward the purported $3,000,000 sales price. As part of the conspiracy, $458,350 of the mortgage loan monies were paid to Nocito as kickbacks, without the knowledge or approval of Washington Mutual Bank.
Nocito also filed a false tax return for calendar year 2007 in which Nocito reported that his total adjusted gross income was $88,269, whereas, as he knew and believed, his correct total adjusted gross income was $529,619.
Judge Schwab scheduled sentencing for Oct. 15, 2015. The law provides for a maximum total sentence of eight years in prison, a fine of $500,000 or both. 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.
Pending sentence, the court released Nocito on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service and the Internal Revenue Service/Criminal Investigation Division conducted the investigation leading to the Information in this case.
Sentencings for March 24 - 25, 2015Read the Press Release
Eastern Shoshone Woman Sentenced for Voluntary Manslaughter
United States Attorney Christopher A. Crofts announced today that on March 25, 2015, Ardis Enos, a 21-year-old enrolled Eastern Shoshone woman from Ethete, Wyoming, was sentenced by United States District Judge Scott W. Skavdahl for voluntary manslaughter. Enos received 132 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $3,700.00. The charge stemmed from Enos killing, upon a sudden heat of passion, her newborn son on March 26, 2014, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation.
United States Attorney Christopher A. Crofts would like to remind everyone that a parent or parent’s designee may relinquish a newborn child who is 14 days of age or younger to a safe haven provider (a fire station, hospital, police department or sheriff’s office or any other place of shelter and safety identified by the department of family services which is staffed twenty-four (24) hours a day, seven (7) days a week) in accordance with Wyoming’s Safe Haven Laws [Wyo. Stat. §§ 14-11-101 et seq.] and retain complete anonymity. Relinquishment of a newborn child shall not, in and of itself, constitute abuse or neglect and the newborn child shall not be considered abused or neglected so long as the relinquishment is carried out in substantial compliance with the provision of the safe haven act.
Northern Arapaho Woman Sentenced for Assault Resulting in Serious Bodily Injury
United States Attorney Christopher A. Crofts announced today that on March 24, 2015, Yvonne Lynn Moss, a 38-year-old enrolled Northern Arapaho woman from St. Stephens, Wyoming, was sentenced by United States District Judge Scott W. Skavdahl for assault resulting in serious bodily injury. Moss received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution will be determined at a later date. The charge stemmed from an assault on Clarence Joseph Tyler, Moss’s boyfriend, which took place on or about October 11, 2014, on the Wind River Indian Reservation. Clarence Joseph Tyler subsequently died as a result of the injuries he suffered during the assault. The case was investigated by the Federal Bureau of Investigation with substantial assistance of the Bureau of Indian Affairs.
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Demario Robbins, 24, of North Tonawanda, NY, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that as an associate of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Robbins then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Robbins was arrested along with 16 other Schuele Boys Gang members and associates in July 2014. He is the second to be convicted. Aaron Glenn pleaded guilty on March 26, 2015. Also charged are:
• Antwan Garner, 29, Buffalo
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, Buffalo
On March 24, 2015, an additional seven members and associates were indicted including:
• Eric Sears, 47, Buffalo
• Andre Jackson, 28, Buffalo
• Tyrell Skipper, 25, Buffalo
• Willie Griffin, 25, Buffalo
• Robert Brown, 52, Buffalo
• Samuel Walker, 50, Buffalo
• Tywone Smothers, 36, Buffalo
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sanford Felon Convicted of Firearm and Drug OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Eugene Chisolm (57, Sanford) guilty of possessing a firearm as a convicted felon and possessing cocaine and cocaine base (“crack”) with the intent to distribute it. He faces a mandatory minimum penalty of 15 years, up to life, in federal prison on the firearm count, and up to 20 years’ imprisonment on the drug count. His sentencing hearing is scheduled for June 19, 2015. Chisolm was indicted on December 19, 2014.
According to evidence presented at trial, on March 13, 2014, law enforcement officers executed a search warrant at Chisolm’s residence in Sanford. During the search, agents recovered drug-trafficking quantities of crack cocaine and cocaine, along with digital scales and other equipment that had recently been used to manufacture the crack cocaine. Agents also recovered a loaded Smith and Wesson.40 caliber pistol. Chisolm was subsequently arrested and interviewed by agents. He admitted that he lived at the residence and that he had sold crack from there.
Prior to this incident, Chisolm had been convicted of multiple felony offenses, including robbery, burglary, battery on a law enforcement officer, and possession of a firearm by a convicted felon. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Seminole County Sheriff’s Office, City County Investigative Bureau. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Rosebud Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 23, 2015, by U.S. Judge Roberto A. Lange.
Kameron Jackson, age 22, was sentenced to 12 months and one day in custody, 5 years of supervised release, $60 restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Jackson was indicted for Failure to Register as a Sex Offender by a federal grand jury on August 19, 2014. He pled guilty on January 21, 2015.
Between June 15, 2014, and August 7, 2014, Jackson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Todd County, South Dakota, and elsewhere.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher prosecuted the case. Jackson was immediately turned over to the custody of the U.S. Marshals Service.
Registered Sex Offender Sentenced to 10 Years in Prison for Accessing with Intent to View Child PornographyRead the Press Release
A registered sex offender was sentenced to 10 years in federal prison today for accessing an Omaha-based child pornography website with the intent to view graphic images and videos depicting child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division.
David William Peer, 37, pleaded guilty on Dec.16, 2014, to accessing with the intent to view child pornography. Following his prison sentence, Peer will be on supervised release for a period of 15 years, during which he is required to continue to register as a sex offender, is prohibited from having unapproved contact with minors, must submit to computer monitoring and must participate in sex offender treatment. Senior U.S. District Judge Joseph Bataillon of the District of Nebraska imposed the sentence.
During his plea hearing, Peer admitted that, in December 2012, he intentionally accessed an Omaha-based website containing thousands of images and videos depicting children, including infants and toddlers, being sexually abused.
In 2002, Peer was convicted in federal court in the District of Utah of receiving and distributing child pornography, and he was a registered sex offender at the time of this offense.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. The FBI was assisted in its investigation by Europol, as well as members of the FBI’s Violent Crimes Against Children International Task Force. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Registered Sex Offender Sentenced to 10 Years in Prison for Accessing with Intent to View Child PornographyRead the Press Release
A registered sex offender was sentenced to 10 years in federal prison today for accessing an Omaha-based child pornography website with the intent to view graphic images and videos depicting child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division.
David William Peer, 37, pleaded guilty on Dec.16, 2014, to accessing with the intent to view child pornography. Following his prison sentence, Peer will be on supervised release for a period of 15 years, during which he is required to continue to register as a sex offender, is prohibited from having unapproved contact with minors, must submit to computer monitoring and must participate in sex offender treatment. Senior U.S. District Judge Joseph Bataillon of the District of Nebraska imposed the sentence.
During his plea hearing, Peer admitted that, in December 2012, he intentionally accessed an Omaha-based website containing thousands of images and videos depicting children, including infants and toddlers, being sexually abused.
In 2002, Peer was convicted in federal court in the District of Utah of receiving and distributing child pornography, and he was a registered sex offender at the time of this offense.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. The FBI was assisted in its investigation by Europol, as well as members of the FBI’s Violent Crimes Against Children International Task Force. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Port Angeles Man Forges Paperwork to Get Grandmother’s Federal Benefits Long After Her DeathRead the Press Release
A Port Angeles man who collected nearly $200,000 by claiming his grandmother was still alive years after her death, was sentenced today in U.S. District Court in Tacoma to one year in prison and three years of supervised release, announced Acting United States Attorney Annette L. Hayes. MORGAN MICHAEL HOPKINS, 43, pleaded guilty to Theft of Public Funds in connection with his scheme to collect and use survivor benefits owed to his grandmother. At sentencing U.S. District Judge Ronald B. Leighton noted he had seen a number of similar theft cases. “There’s got to be some residue that reverberates to the community at large - - both to the population that is tempted and the population that is angry about the unprovoked theft of taxpayer money,” Judge Leighton said.
According to records filed in the case, after HOPKINS’ grandmother died in March of 2009, he forged official government documentation – claiming to be his grandmother – and requesting that her federal workers’ compensation death survivor benefits continue. The United States Department of Labor had been paying workers’ compensation survivor benefits to the defendant’s grandmother following the death of her husband, a former federal employee, since about 1968. When the defendant’s grandmother died, the Department of Labor terminated the benefits. However, the defendant fraudulently submitted a sworn verification of benefits statement to the DOL in November of 2009 by forging his grandmother’s name and requesting that the benefits be continued. As a result of receiving the falsified verification of benefits form, the DOL continued paying benefits to the defendant’s grandmother and ultimately paid $196,565 into her bank account after her death. HOPKINS used his grandmother’s debit card and forged his grandmother’s signature on checks so that he could access the money and use it for his own purposes.
In January 2014 the Department of Labor confirmed that HOPKINS’ grandmother had died five years earlier and terminated the payments.
The case was investigated by the Department of Labor Office of Inspector General (DOL-OIG). The case was prosecuted by Assistant United States Attorney Erin Wilson.
Owner of Arlington Doggy Daycare Center Sentenced to 10 Years in Prison for Heroin TraffickingRead the Press Release
An Arlington dog kennel operator was sentenced today in U.S. District Court in Seattle to ten years in prison for conspiracy to distribute heroin and methamphetamine, and possession of counterfeit money, announced Acting United States Attorney Annette L. Hayes. SHAWN LUNDY, 61, the operator of Arlington Doggy Day Care, was arrested February 25, 2014 and pleaded guilty November 24, 2014. When law enforcement agents searched the kennel facility in February 2014, they found cash from the sale of drugs and counterfeit money in various safes on the property and in hidden voids in the walls they found heroin, methamphetamine, cash and other drug trafficking paraphernalia. U.S. District Judge Robert S. Lasnik imposed five years of supervised release to follow the prison term.
According to records filed in the case, LUNDY came to the attention of law enforcement as someone distributing significant amounts of heroin in Snohomish County, an area particularly hard hit by heroin overdoses. LUNDY has previous federal drug trafficking convictions in both Connecticut and Washington.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved, The case was investigated by the Drug Enforcement Administration (DEA, Bellingham Resident Office), the Whatcom County Drug and Gang Task Force, Skagit County Inter-local Drug Enforcement Unit, Snohomish Regional Drug and Gang Task Force, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and Customs and Border Protection Air and Marine Division.
The case was prosecuted by Assistant United States Attorneys Karyn Johnson and Steven Masada.
Operator of Tax Preparation Businesses Sentenced to 70 Months in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
A Broward resident who operated various tax preparation businesses was sentenced to 70 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $279,903.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Julio Lugo, 38, previously pled guilty to one count of conspiracy to defraud the government with respect to claims and one count of aggravated identity theft.
According to court documents, Lugo operated various tax preparation businesses including #1 Tax Specialist, The Number One Tax Specialist, and Number Two Tax Specialist. Light House Refund, which was another tax preparation business, obtained an Electronic Filing Identification Number (EFIN) from the IRS to electronically file clients' income tax returns. Lugo used the EFIN for Light House Refund to file 48 fraudulent tax returns using stolen identities, and obtained tax refunds to which he was not entitled.
Co-defendant Jamar James was sentenced to two years of probation. James previously pled guilty to one count of making a false statement to a federal agency.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case was prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Potomac Felon Indicted in $212,000 Business Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Curtis R. Martin, Jr., age 55, of North Potomac, Maryland, on charges related to a scheme to defraud a business of more than $212,000. In addition, the indictment charges Martin with making false statements to his probation officers. The indictment was returned on March 18, 2015, and unsealed on March 26, 2015, upon Martin’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the 14-count indictment, Martin purported to operate technology companies, including Oledix Technologies, LLC and The Oledix Store, LLC, as their President and Chief Executive Officer (CEO). Martin represented that Oledix Technologies was in the business of selling video teleconferencing equipment that employed LED touchscreen technology, and that The Oledix Store was a retail outlet for Oledix Technologies. In fact, neither company did any significant amount of business.
According to the indictment, Martin, through false and fraudulent representations, obtained a total of approximately $212,455 between May and August 2012, from New Century Financial (NCF), a company that provides account receivable financing. Martin allegedly used the funds for personal and business-related expenses.
Accounts receivable financing permits a business to obtain loans from a lender or financing company based upon outstanding invoices issued to customers, but for which payment is not yet due under the terms of the invoice. An accounts receivable financing company agrees to provide financing that is less than the full face value of the invoice. The business receiving the financing instructs its customer to make the payment owed on the invoice to the financing company, which retains the difference between the amount financed and the full face value of the invoice as its profit.
The indictment alleges that that Martin submitted an on-line application for financing to NCF that falsely represented and inflated the monthly sales of Oledix Technologies. In support of the financing application, Martin submitted additional fraudulent documents, including bank statements, financial reports, and sales summaries, that presented a false and misleading picture of the financial position of Oledix Technologies. Finally, Martin provided NCF with fraudulent invoices which falsely represented that Oledix Techologies had sold electronic devices relating to video teleconferencing capabilities to Company 1 at a cost of $159,000, and had sold Johns Hopkins Hospital/Hopkins Medical Center three “Oledix mobile telemedicine carts” at a cost of $174,200. Martin submitted an additional fraudulent invoice to NCF claiming that Hopkins had purchased an additional six “Oledix Mobile Telemedicine Carts” for a total price of $332,550. The indictment alleges that Oledix Technologies actually owed money to Company 1, and had not sold any equipment to Johns Hopkins . To carry out the scheme, Martin allegedly sent or caused to be sent to NCF fraudulent emails, purporting to be from a Hopkins doctor and from a Hopkins account manager, which falsely confirmed the validity of the Hopkins invoices.
The indictment further alleges that from July 2011 through July 2013, Martin made false statements to his probation officers. During that time, Martin was on supervised release for a 2010 federal conviction in the Eastern District of California. As part of his supervised release, Martin was required to provide his probation officer with a monthly report detailing personal, employment and financial information. Martin certified that the information provided on the forms was correct. The indictment alleges that Martin made false statements on the forms he provided to his probation officer, including where and with whom he was living, where he was employed, and that he was not a party to any lawsuit.
The indictment seeks forfeiture of $212,455, believed to be the proceeds of the fraud scheme.
Martin faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud, and a maximum of five in prison for each of five counts of making a false statement. Martin had his initial appearance on March 26, 2015 and is detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked the U.S. Probation Office for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
New York City Police Officer and Customs and Border Protection Officer Sentenced to Three Years for International Arms TraffickingRead the Press Release
Defendants Used Law Enforcement Credentials to Obtain Military-Grade Assault Rifles, Sniper Rifles and Other High-Powered Weapons for Smuggling to the Philippines
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office, Special Agent in Charge Delano A. Read of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) New York Field Division and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced today that former New York City Police Officer Rex Maralit and his brother Wilfredo Maralit, a Customs and Border Protection Officer assigned to Los Angeles International Airport, were sentenced earlier today at the federal courthouse in the Eastern District of New York to each serve three years in prison to be followed by three years of supervised release for their roles in an illegal scheme to smuggle high-powered assault rifles, sniper rifles, pistols and firearms accessories from the United States to the Philippines. The defendants pleaded guilty on June 12, 2014, before U.S. District Judge Allyne R. Ross of the Eastern District of New York to violating the Arms Export Control Act. A third brother, Ariel Maralit, resides in the Philippines and remains a fugitive.
“These defendants violated their sworn duties to uphold the law, abusing their positions of trust to profit from the illegal export of extremely dangerous weapons,” said U.S. Attorney Lynch. “Today’s sentences send a powerful message that criminal conduct by police officers, federal agents, and their confederates will not be tolerated, and that no one, least of all those entrusted to protect the communities and the country they serve, is above the law.”
Between January 2009 and September 2013, the defendants exported a variety of military-style firearms, along with high-capacity magazines and accessories for those weapons, from the United States to the Philippines where they were sold to overseas customers. Both Rex and Wilfredo Maralit used their official credentials and status to obtain and ship the weapons without first obtaining a license from the U.S. State Department. The firearms included the Barrett .50 caliber long-range semi-automatic rifle, the FN “SCAR” assault rifle, and high-capacity FN 5.7mm semi-automatic carbines and pistols which fire a cartridge that was specifically designed to penetrate body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the U.S. State Department before shipping weapons overseas. Similarly, dealing in firearms is regulated by ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such business.
The case was investigated by HSI, DCIS, ATF and the NYPD’s Internal Affairs Bureau, with assistance provided by the U.S. Attorney’s Office of the Central District of California and the U.S. Attorney’s Office of the District of New Jersey.
The government’s case is being prosecuted by Assistant U.S. Attorneys Seth DuCharme and Sam Nitze of the Eastern District of New York, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
New York City Police Officer and Customs and Border Protection Officer Sentenced to Three Years in Prison for International Arms TraffickingRead the Press Release
Former New York City Police Officer Rex Maralit and his brother Wilfredo Maralit, a Customs and Border Protection Officer assigned to Los Angeles International Airport, were sentenced earlier today at the federal courthouse in Brooklyn to three years’ imprisonment to be followed by three years of supervised release for their roles in an illegal scheme to smuggle high-powered assault rifles, sniper rifles, pistols, and firearms accessories from the United States to the Philippines. The defendants pleaded guilty on June 12, 2014, before United States District Judge Allyne R. Ross to violating the Arms Export Control Act. A third brother, Ariel Maralit, resides in the Philippines and remains a fugitive.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Assistant Attorney General John P. Carlin; Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office; Delano A. Read, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“These defendants violated their sworn duties to uphold the law, abusing their positions of trust to profit from the illegal export of extremely dangerous weapons,” stated Ms. Lynch. “Today’s sentences send a powerful message that criminal conduct by police officers, federal agents, and their confederates will not be tolerated, and that no one, least of all those entrusted to protect the communities and the country they serve, is above the law.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, ATF, and the NYPD’s Internal Affairs Bureau, which worked closely together to investigate the case, and to the U.S. Attorney’s Office for the Central District of California and the U.S. Attorney’s Office for the District of New Jersey for their assistance.
Between January 2009 and September 2013, the defendants exported a variety of military-style firearms, along with high-capacity magazines and accessories for those weapons, from the United States to the Philippines where they were sold to overseas customers. Both Rex and Wilfredo Maralit used their official credentials and status to obtain and ship the weapons without first obtaining a license from the U.S. State Department. The firearms included the Barrett .50 caliber long-range semi-automatic rifle, the FN “SCAR” assault rifle, and high-capacity FN 5.7mm semi-automatic carbines and pistols which fire a cartridge that was specifically designed to penetrate body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the United States State Department before shipping weapons overseas. Similarly, dealing in firearms is regulated by the ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such a business.
The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and Sam Nitze, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.
The Defendants:
REX G. MARALIT
Lawrenceville, New Jersey
Age: 46
WILFREDO MARALIT
Garden Grove, California
Age: 49
Navajo Man from Littlewater, N.M., Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Michael Benally, 31, an enrolled member of the Navajo Nation who resides in Littlewater, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to assault charges. Benally is the last of three defendants to enter a guilty plea in this case.
Benally and co-defendants Gabriel Largo, 28, and Joshua Largo, 20, both enrolled members of the Navajo Nation who reside in Crownpoint, N.M., were arrested on Sept. 17, 2014, on a criminal complaint charging them with assaulting a Navajo man with a sledgehammer and a rock and causing him serious bodily injury. The complaint alleges that the assault took place in the Crownpoint Chapter of the Navajo Nation in McKinley County, N.M., on Sept. 5, 2014.
The three co-defendants subsequently were indicted on Oct. 7, 2014, in a four-count indictment. Count 1 charged Benally with assaulting the victim and causing him serious bodily injury on July 30, 2014. Count 2 charged Benally, Gabriel Largo and Joshua Largo with conspiring to assault the victim by chasing the victim, throwing rocks at him, kicking him, and striking him with a sledgehammer on Sept. 5, 2014. Counts 3 and 4 charged the three defendants with assault resulting in serious bodily injury and assault with a dangerous weapon.
During today’s proceedings, Benally pled guilty to a felony information charging him with conspiracy to commit assault resulting in bodily injury and assault with a dangerous weapon. Benally admitted that on Sept. 5, 2014, he and his co-defendants approached the victim who was selling firewood. When the victim ran away from them, Benally and his co-defendants chased the victim, threw rocks at him and knocked him down. The three men then hit and kicked the victim. In his plea agreement, Benally admitted taking a sledgehammer from his truck and striking the victim in the legs with it with the intention of injuring and harming him. Benally further admitted that at some point he handed the sledgehammer to Gabriel Largo who used it to strike the victim.
On March 5, 2015, Gabriel Largo pled guilty to a felony information charging him with assault, and admitted that on Sept. 5, 2014, he and his co-defendants assaulted the victim. When the victim ran away from them, Gabriel Largo and his co-defendants chased the victim, threw rocks at him and knocked him down. In his plea agreement, Gabriel Largo admitted obtaining a sledgehammer from Benally and using it to strike the victim.
Joshua Largo also pled guilty to a felony information on March 5, 2015, and admitted his participation in a conspiracy to assault the victim. Joshua Largo admitted joining his co-defendants in chasing the victim, throwing rocks at him and knocking him down, and hitting and kicking the victim.
At sentencing, Benally and Gabriel Largo face a maximum statutory penalty of ten years imprisonment and Joshua Largo faces a statutory maximum penalty of five years in prison. Their sentencing hearings have yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Linda Mott.
NYPD’S 2012 Officer of the Year Pleads Guilty to Conspiracy to Possess with Intent to Distribute Five Kilograms or More of CocaineRead the Press Release
A New York City Police Officer pled guilty today to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and John Brooks, Chief, Sunrise Police Department, made the announcement.
Phillip Leroy, 28, of Queens, New York, pled guilty to conspiring to possess with the intent to distribute multiple kilograms of cocaine. According to the stipulated factual basis, beginning in November 2014, an undercover officer engaged in a series of telephone conversations with co-defendant Richard Quintanilla to arrange the sale of ten kilograms of cocaine to Leroy and co-defendant Brian Espinal, in exchange for $200,000. On November 30, 2014, Leroy and Espinal drove from New York to South Florida, and on December 1, 2014, Leroy, Espinal and Quintanilla met with the undercover officer in order to facilitate the drug transaction. At the meeting location, Leroy and Espinal retrived approximately $200,000 from the back of their vehicle and provided it to the undercover officer in exchange for ten kilograms of cocaine. Leroy and Espinal then concealed the cocaine inside a hidden compartment located in the center console of their vehicle. As Leroy and Espinal prepared to leave the scene, they were apprehended. A loaded, 9 mm handgun, with one round in the chamber, was recovered underneath Leroy’s seat. The firearm was Leroy’s off-duty service revolver. Leroy admitted that he accompanied Espinal to Florida in order to purchase multiple kilograms of cocaine that they intended to transport back to New York.
Sentencing is scheduled for June 5, 2015 at 1:15 p.m. before United States District Judge William P. Dimitrouleas. At sentencing, Leroy faces a minimum mandatory sentence of ten years and a possible maximum sentence of life in prison. Leroy’s co-conspirators, Brian Espinal and Richard Quintanilla, previously pled guilty to conspiracy to possess with intent to distribute five kilograms or more of cocaine and are scheduled to be sentenced on May 15 and 18, 2014, respectively.
Mr. Ferrer commended the investigative efforts of the DEA and Sunrise Police Department. This case is being prosecuted by Assistant U.S. Attorney Corey Steinberg.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Citizen Sentenced to Two Months Incarercation After Felony Conviction for Illegal Reentry into the United StatesRead the Press Release
The United States Attorney Kenyen R. Brown announces that Victor Manuel Mina-Garcia, a 32 year old, citizen of Mexico, was sentenced today to two months incarceration after his felony conviction for illegal re-entry after deportation.
On February 26, 2015, Mina-Garcia pled guilty to reentering the United States after having been deported. In summary, on December 12, 2014, Mina-Garcia was arrested in Saraland, Alabama for local theft crimes. His fingerprints indicated that he was the same Mina-Garcia who had been deported in 2010 after having been found in Texas after entering the United States illegally.
Special agents of Homeland Security/Immigration and Customs Enforcement along with Saraland, Alabama police officers investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Manhattan U.S. Attorney Announces Conviction of Colombian Narcotics Trafficker for Conspiracy to Engage in Narco-Terrorism and Other Terrorism and Narcotics ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the conviction yesterday of RAFAEL ANTONIO GARAVITO-GARCIA for conspiracy to engage in narco-terrorism, and other terrorism and narcotics charges. Following an eight-day trial before U.S. District Judge Jed S. Rakoff, the jury found GARAVITO-GARCIA guilty of all four counts with which he was charged: conspiracy to engage in narco-terrorism (Count One), conspiracy to distribute five kilograms or more of cocaine, knowing or intending that the cocaine would be imported into the United States (Count Two), conspiracy to provide material support and resources to the Fuerzas Armadas Revolucionarios de Colombia (the “FARC”) (Count Three), and conspiracy to acquire and transfer anti-aircraft missiles (Count Four). GARAVITO-GARCIA was arrested in Colombia on April 5, 2013, following a long-term investigation conducted by the Drug Enforcement Administration’s (“DEA”) Special Operations Division, and arrived in the Southern District of New York on July 22, 2014. The guilty verdict marks the first time in the District a defendant has been convicted at trial of conspiracy to engage in narco-terrorism, although in prior cases there have been pleas of guilty to the narco-terrorism conspiracy charge.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury has found, Rafael Antonio Garavito-Garcia was at the heart of a conspiracy to import cocaine into the U.S. and arm a terrorist organization with sophisticated weaponry that would be used against U.S. forces in Colombia. Thanks to the outstanding work of the DEA, another dangerous international criminal no longer poses a threat. He now awaits sentencing on these serious crimes.”
According to court documents and the evidence presented at trial:
Beginning in the summer of 2012, GARAVITO-GARCIA communicated with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of the FARC. The communications occurred by telephone, over e-mail, and in a series of audio-recorded and videotaped meetings. Following initial recorded meetings in Brazil, GARAVITO-GARCIA accompanied the CSs to Guinea Bissau, where he introduced them to two local men, whom he indicated were his associates in that country. GARAVITO-GARCIA later introduced the CSs to a Colombian man, whom GARAVITO-GARCIA identified as his drug trafficking partner.
During meetings in Guinea-Bissau beginning in June 2012, and continuing through November 2012, GARAVITO-GARCIA agreed to receive and store multi-ton shipments of FARC-owned cocaine in Guinea-Bissau. He agreed, in particular, to receive the cocaine in Guinea-Bissau and to store the cocaine there pending the eventual shipment of some of the cocaine to the United States, where it would be sold for the financial benefit of the FARC. GARAVITO-GARCIA also agreed to sell some of the cocaine himself, and to provide the FARC with some of the proceeds of his drug sales. Also during those meetings, GARAVITO-GARCIA and his associates agreed to help arrange to purchase weapons for the FARC, including surface-to-air missiles, by importing them into Guinea-Bissau for the nominal use of the Guinea-Bissau military.
For example, on June 30, 2012, during a recorded meeting in Guinea Bissau with the CSs, GARAVITO-GARCIA and his Guinea Bissau-based associates agreed to assist in the distribution of FARC cocaine by facilitating the shipment of cocaine to Guinea Bissau inside loads of military uniforms. They also agreed to establish a front company in Guinea Bissau to facilitate the export of cocaine from Guinea Bissau to the United States. On July 2, 2012, GARAVITO-GARCIA introduced the CSs to General Antonio Indjai, who was then head of the Guinea-Bissau Armed Forces, and helped win Indjai’s support for the drug and weapons deal. During another recorded meeting in Guinea Bissau the following day, GARAVITO-GARCIA met with the CSs and a Guinea Bissau military representative and discussed the benefits of using Guinea Bissau as a transshipment point for cocaine obtained in South America and destined for the United States. GARAVITO-GARCIA also discussed with the others the process for offloading the cocaine once it arrived in Guinea Bissau, and the nature of the weapons to be supplied to the FARC to combat American forces assisting the Colombian authorities, including surface-to-air missiles and AK-47 assault rifles.
Thereafter, on August 31, 2012, during a recorded meeting in Bogota, Colombia, GARAVITO-GARCIA and his Colombian partner agreed to facilitate the receipt of approximately 4,000 kilograms of cocaine from the FARC in Guinea Bissau, with the understanding that approximately 500 kilograms of that cocaine would later be sent to customers in the United States and Canada. During a recorded meeting in Guinea Bissau on November 13, 2012, GARAVITO-GARCIA explained to a Guinea Bissau military official that the FARC needed anti-aircraft missiles to be used against United States helicopters operating in Colombia. The military official then advised one of the CSs that the weapons transaction could be executed once the FARC brought money to Guinea Bissau.
GARAVITO-GARCIA was arrested in Bogota, Colombia, on April 5, 2013.
GARAVITO-GARCIA, 70, of Bogota, Colombia, was convicted of one count of conspiracy to commit narco-terrorism, which carries a mandatory minimum sentence of 20 years, and a maximum sentence of life in prison. In addition, GARAVITO-GARCIA was convicted of one count of conspiracy to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years, and a maximum sentence of life in prison; one count of conspiracy to provide material support to a designated foreign terrorist organization, namely, the FARC, which carries a maximum sentence of 15 years in prison; and one count of conspiracy to acquire and transfer anti-aircraft missiles, which carries a mandatory minimum sentence of 25 years in prison, and a maximum sentence of life in prison. The mandatory minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.
Sentencing before Judge Rakoff is scheduled for July 20, 2015, at 4:00 p.m.
In April 2013, an indictment was unsealed charging General Antonio Indjai with conspiracy to commit narco-terrorism, conspiracy to import cocaine into the United States, conspiracy to provide material support to the FARC, and conspiracy to acquire and transfer anti-aircraft missiles. Indjai is currently a charged defendant located outside the arrest jurisdiction of the United States.
The conviction was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, DEA’s Special Operations Division’s Bilateral Investigation Unit and FAST, the DEA Lisbon Country Office, the DEA Bogota Country Office, the U.S. Department of Justice’s Office of International Affairs and its National Security Division, and the U.S. State Department.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Aimee Hector, Shane Stansbury, and Ilan Graff are in charge of the prosecution.
Man Who Tied Rope Around Neck of James Meredith Statue on University of Mississippi Campus Indicted on Civil Rights ChargesRead the Press Release
Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI Jackson Office announced today that a man was charged with federal civil rights crimes for engaging in threatening conduct directed at African American students and employees at the University of Mississippi in Oxford, Mississippi. Graeme Phillip Harris was indicted by a federal grand jury on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African American students because of their race or color.
According to the charging documents, Harris, a student at the university, conspired with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag, which prominently depicts the Confederate battle flag, around the neck of the James Meredith statue on the campus of the University of Mississippi, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
“This shameful and ignorant act is an insult to all Americans and a violation of our most strongly-held values,” said Attorney General Eric Holder. “No one should ever be made to feel threatened or intimidated because of what they look like or who they are. By taking appropriate action to hold wrongdoers accountable, the Department of Justice is sending a clear message that flagrant infringements of our historic civil rights will not go unnoticed or unpunished.”
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. The investigation is ongoing.
This case is being investigated by the FBI’s Jackson, Mississippi, Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Who Tied Rope Around Neck of James Meredith Statue on University of Mississippi Campus Indicted on Civil Rights ChargesRead the Press Release
WASHINGTON – Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI Jackson Office announced today that a man was charged with federal civil rights crimes for engaging in threatening conduct directed at African American students and employees at the University of Mississippi in Oxford, Mississippi. Graeme Phillip Harris was indicted by a federal grand jury on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African American students because of their race or color.
According to the charging documents, Harris, a student at the university, conspired with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag, which prominently depicts the Confederate battle flag, around the neck of the James Meredith statue on the campus of the University of Mississippi, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
“This shameful and ignorant act is an insult to all Americans and a violation of our most strongly-held values,” said Attorney General Eric Holder. “No one should ever be made to feel threatened or intimidated because of what they look like or who they are. By taking appropriate action to hold wrongdoers accountable, the Department of Justice is sending a clear message that flagrant infringements of our historic civil rights will not go unnoticed or unpunished.”
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. The investigation is ongoing.
This case is being investigated by the FBI’s Jackson, Mississippi, Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
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Man Sentenced to Prison for Drug and Gun ChargesRead the Press Release
Andre Hutson, 32, of St. Louis, Missouri, was sentenced today to a total of 60 months in prison on a three-count indictment charging him with Distribution of Cocaine, Distribution of Cocaine Base and Felon in Possession of a Firearm, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Hutson will be on federal supervised release for 4 years. He was also ordered to pay a fine of $450, as well as a $300 special assessment. All firearms and ammunition in Hutson’s possession will be forfeited.
This case was investigated by Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Lubbock Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 44 year-old Lubbock, Texas, resident, Eduardo Cantillo, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea in December 2014 to one count of possession of prepubescent child pornography, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Cantillo used a computer at his residence to search the Internet for images and videos of child pornography. In the course of those searches, Cantillo located, downloaded and viewed numerous images and videos constituting child pornography. Cantillo also saved some of the material onto a thumb drive. Some of the images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Long Time Accounting Technician for Hotel at JBLM Sentenced to Prison for Embezzling more than $250,000Read the Press Release
A Tacoma woman who worked for more than 27 years at a military hotel on Joint Base Lewis McChord was sentenced today in U.S. District Court in Tacoma to two years in prison for theft of more than $250,000 in government funds, announced Acting United States Attorney Annette L. Hayes. GAIL JEANETTE MOODY, 52, was hired in 1985 as a desk clerk at the Rainier Inn on what was then Fort Lewis. She worked her way up over the years to an accounting position where she reconciled the cash receipts at the hotel along with other payments, and made deposits into the Armed Forces Bank. Records from the hotel reveal that between September of 2010 and October of 2012, MOODY stole more than $250,000 in cash receipts. At sentencing U.S. District Judge Ronald B. Leighton said MOODY “violated a position of trust . . . . it’s a lot of money. It’s a lot of deception.”
The Rainier Inn was operated by the Department of Defense (DOD) to provide low cost lodging to active duty military personnel, persons under official military orders from the United States Department of Defense, retired military personnel, and their families. Profits earned by the hotel were funneled back into the facilities so DOD could provide the benefit of low cost lodging. According to records filed in the case, MOODY was a trusted employee with access to the locked security container where desk clerks put receipts at the end of their shifts. In August 2012 when MOODY took an extended leave, the staff discovered significant discrepancies regarding the cash receipts and what had been deposited into the hotel bank accounts. A forensic review revealed MOODY had altered records to disguise the fact that she was taking the cash for her own use. MOODY abruptly quit her job when confronted about the discrepancies.
After completing her prison sentence, MOODY is required to get treatment for a gambling addiction pursuant to the terms of her three years supervised release.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Erin Wilson.
Lockheed Martin Agrees to Pay $2 Million to Settle Allegations That It Overbilled the GovernmentRead the Press Release
ATLANTA – Lockheed Martin Corporation (“Lockheed”) has agreed to pay $2 million to settle allegations that it overbilled the government for fuel it used while manufacturing C-130 aircraft for the United States Air Force.
“The resources of the United States Government are limited and must be protected. We expect companies doing business with the United States to be circumspect and forthright in billing the United States and using its resources,” said Acting U.S. Attorney John Horn. “Here, in causing the government to pay for fuel that was the company’s financial responsibility, Lockheed failed to live up to the terms of the contracts and caused financial injury to the government. The settlement reflects our resolve to ensure that companies that overbill or overcharge the Government will be identified and held responsible for their actions.”
“This settlement illustrates the diligent work exhibited by a joint Air Force Office of Special Investigations and DCIS investigative team, that sifted through and unwound dense and complicated data to reveal the overcharges,” said Lloyd Clark, Assistant Special Agent in Charge, AFOSI Procurement Fraud Detachment Five.
“This settlement is the culmination of the tireless investigative efforts of DCIS agents working closely with our Air Force OSI partners,” said John F. Khin, Special Agent in Charge, Southeast Field Office. Combatting waste and abuse in Department of Defense contracts to protect the integrity of our national defense programs, remains a top priority for the Defense Criminal Investigative Service.”
Between 2006 and 2013, Lockheed manufactured C-130s for the U.S. Air Force at its Marietta facility. Pursuant to the underlying contracts, the Government provided Lockheed with up to 22,000 gallons of fuel (characterized as government furnished property or “GFP”) per aircraft, which could be used for the engine runs, fuel operations and test flights necessary to manufacture C-130s. Once Lockheed exhausted its 22,000 gallon allotment on a particular aircraft, Lockheed, not the Government, was financially responsible for any additional fuel.
However, the Government’s investigation indicated that between 2006 and 2013, Lockheed routinely used fuel in excess of the 22,000 gallons, but failed to reimburse the government for the excess. Additionally, the evidence suggests that Lockheed used the fuel on other unrelated projects, where the government was either not a party, or had not agreed to furnish fuel.
This matter was investigated by the United States Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and Defense Contract Audit Agency.
Assistant United States Attorney Paris A. Wynn handled this matter.
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/.
Lincoln Man Sentenced in Drug and Money Laundering ConspiraciesRead the Press Release
United States Attorney Deborah R. Gilg announced that John Ways, Jr., age 48, of Lincoln, Nebraska, was sentenced to 15 years in prison by Senior United States District Court Judge Joseph F. Bataillon. In August of 2014 Ways was found guilty by a jury of conspiracy to sell drug paraphernalia, conspiracy to distribute controlled substances, conspiracy to commit money laundering, and of being a felon in possession of ammunition. He ran Exotica stores in Omaha and South Sioux City, Nebraska, and Council Bluffs, Iowa, through which he sold the controlled substances and drug paraphernalia. He will also forfeit to the United States approximately $1,100,000 in cash as drug proceeds seized from multiple bank accounts, two vehicles he purchased with drug proceeds, various computers and equipment, ammunition, and four gun safes. He was also ordered to serve three years of supervised release following his release from incarceration.
United States Attorney Deborah R. Gilg commented: “It does not matter whether drug dealers sell illegal drugs on the street, through the internet or, like this defendant, under the guise of a legitimate business. It is still drug dealing. With the help of our law enforcement partners such as the ATF, we will investigate and prosecute drug dealers no matter how they ply their trade. We will also seize and forfeit their illegitimate gains.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Omaha Police Department, Lincoln Police Department, and Nebraska State Patrol.
Iowa City Man Sentenced for Heroin Trafficking OffenseRead the Press Release
DAVENPORT, IA – On March 26, 2015, Antoine Marquet Clemons, age 38, of Iowa City, Iowa, was sentenced by Senior United States District Judge James E. Gritzner for conspiracy to distribute heroin announced United States Attorney Nicholas A. Klinefeldt. Clemons was sentenced to 151 months’ imprisonment, ordered to serve three years’ supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
In November of 2013, law enforcement utilized an undercover agent to make two purchases of approximately half-gram amounts of heroin directly from a subject of interest. On both occasions, immediately before the undercover agent received heroin from the subject, police observed Clemons meet and sell heroin to the subject. Approximately one week after the second transaction, law enforcement executed search warrants for two residences associated with Clemons. At one residence agents located, among other things, 26.5 grams of heroin and indicia of Clemons’ residency. At the other residence, police located $2,648 in U.S. currency (of which $200 was pre-serialized "buy funds" that the undercover agent provided to the other subject moments before the second transaction), digital scales, and indicia for Clemons.
Clemons pleaded guilty on December 19, 2014, to the crime of conspiracy to distribute heroin. Prior to the instant conviction, Clemons’ had seven prior felony drug convictions.
This case was investigated by the Johnson County, Iowa, Drug Task Force, the Iowa Department of Public Safety Division of Narcotics Enforcement, the Iowa City, Iowa, Police Department, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Inmate Sentenced to over 17 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced inmate Russell Carrington, a/k/ Rutt, age 34, of Baltimore, and a leader in the Black Guerilla Family (BGF) gang, today to 210 months in prison, followed by six years of supervised release, for a racketeering and drug conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Carrington was convicted on February 5, 2015, after a lengthy trial.
Earlier this week, Judge Motz sentenced former correctional officers Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown, Maryland; Milshenna Peoples, age 29, of Baltimore; and Javonne Lunkin, age 28, of Baltimore, each to a year and a day in prison, followed by three years of supervised release. Owens, Peoples and Lunkin pleaded guilty to a racketeering conspiracy arising from their participation in the smuggling of drugs and contraband for members of BGF inside BCDC.
In a related proceeding, U.S. District Judge Ellen L. Hollander sentenced Tyesha Mayo, age 31, of Baltimore, on March 26, 2015, to 15 months in prison, followed by three years of supervised release. Mayo also pleaded guilty to the racketeering conspiracy, admitting that she supplied drugs to the COs which the COs then smuggled into the jail.
The sentences were 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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn J. Mosby.
This case developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts, or a share of the profits.
Carrington was a BGF leader incarcerated in BCDC who sold Percocet pills which COs smuggled into the jail for him. Carrington had a sexual relationship with a correctional officer, who helped Carrington finance his drug operations by keeping Green Dot cards for him. In 2012, Carrington introduced Tavon White and a correctional officer to a source of supply for Percocet pills. He also attempted to recruit other correctional officers to smuggle contraband into BCDC. Former prison employee Michelle McNair also helped Carrington with his drug operations, but quit after Carrington failed to pay her.
Former correctional officers Owens, Peoples and Lunkin admitted that while they worked at BCDC, they helped smuggle contraband into the jail, including tobacco, marijuana, and prescription drugs, on behalf of and for further distribution by BGF members. The defendants knew that by smuggling contraband into BCDC, they furthered the racketeering enterprise of BGF.
Owens and Peoples entered into personal and sexual relationships with inmates who were BGF gang members. For example, Owens admitted that she had a personal and sexual relationship with BGF gang leader Tavon White while he was an inmate at BCDC and has two children by White. Owens had “Tavon” tattooed on her neck. Peoples admitted that she also had personal and sexual relationships with inmates who were BGF members. Owens, Peoples and Lunkin were aware of other COs who were involved in smuggling and who had sexual relationships with inmates.
Outside the prison, Owens frequently obtained contraband from Tyesha Mayo and other co-defendants. Mayo obtained Percocet, Xanax, Suboxone and marijuana from co-conspirators for distribution to COs. Tavon White funded the drug purchases and paid Mayo for her services by means of Green Dot money transfers and by cash payments provided by co-conspirators outside the prison.
Inmates and BGF members Tavon White, a/k/a Bulldog and Tay, age 37, and Jamar Anderson, age 24, both of Baltimore, were sentenced to 12 years in prison and 121 months in prison, respectively. Michelle McNair, age 24, of Baltimore, a former contract employee with the Department of Public Safety and Correctional Services, was convicted at trial for the racketeering and drug conspiracies, as well as a money laundering conspiracy. McNair is awaiting sentencing.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Harrisburg Man Charged with Bank RobberyRead the Press Release
The United States Attorneys Office for the Middle District of Pennsylvania announced that a Criminal Information was filed today in U.S. District Court in Harrisburg charging Dylan Blum, age 22, of Harrisburg, with the December 9, 2014 robbery of the Mid Penn Bank, North Front Street, Harrisburg.
According to U.S. Attorney Peter Smith, Blum passed a threatening note to a teller at the bank and made off with $1,358. Blum later turned himself in to the Harrisburg Police Department on January 3, 2015. The government also filed a plea agreement with the defendant which is subject to approval by the court.
The matter was investigated by the Harrisburg Police Department and the Federal Bureau of Investigation. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Haitian National Sentenced for Disrupting Transatlantic FlightRead the Press Release
BOSTON – A Haitian national pleaded guilty and was sentenced today in U.S. District Court in Boston for disrupting a transatlantic American Airlines flight.
Edmond Alexandre, 60, a Haitian national residing in Paris, was sentenced today by U.S. District Court Judge Denise J. Casper to one year of supervised release, a fine of $1,000 and restitution of $6,303 to American Airlines. Alexandre pleaded guilty to interference with flight crew members.
On Aug. 27, 2014, at 7:00pm, American Airlines Flight 62 departed Miami, Fla. en route to Paris, France. At 9:00pm, Alexandre, a passenger on the plane, became disruptive and started arguing with other passengers. A flight crew member intervened, and attempted to calm Alexandre down. Unable to do so, the flight crew member walked away towards the back of the plane at which time Alexandre raised his voice again, chased the crew member down the aisle towards the back of the plane, and grabbed the crew member’s arm. Immediately, federal air marshals, who were on the plane, identified themselves and subdued Alexandre. Alexandre was taken into custody, and the captain of the plane diverted the flight to Boston’s Logan Airport. Alexandre was removed from the plane and taken into custody. Four hours later, the flight received clearance and departed for Paris.
United States Attorney Carmen M. Ortiz; Dwain G. Troutt, Special Agent in Charge of the U.S. Transportation Security Administration, Office of Law Enforcement, Federal Air Marshal Service, Boston Field Office; Bob Allison, Federal Security Director for the Transportation Security Administration for the District of Massachusetts; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Timothy P. Allen, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant United States Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Granite City Man Sentenced for Possession of Child PornographyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 27, 2015, Steven W. Beckman, 64, Granite City, IL, was sentenced for Possession of Visual Depictions of Prepubescent Minors Engaged in Sexually Explicit Conduct. Beckman, who had been convicted in the Southern District of Illinois in 2006 for Receiving Child Pornography through the U.S. Mail and Possession of Child Pornography, received an increased penalty of a mandatory minimum sentence of 120 months in federal prison because of these prior convictions. Beckman was also sentenced to 3 years’ supervised released, fined $500, and ordered to pay a $100 special assessment. In addition, Beckman’s sentence must run consecutive to the sentence he received for violating his supervised release for the 2006 convictions listed above. He will also be required to register as a sex offender. Beckman has been held without bond since his arraignment on July 22, 2014.
"This kind of crime is not just a pervert looking at dirty pictures." noted United States Attorney Wigginton. "The children depicted are horribly abused and will be haunted for life. Hopefully, sentences like this one will keep offenders from robbing these children of their innocence."
The investigation began on March 11th, 2014, when a detective with the Missouri Internet Crimes Against Children Task Force ("ICAC") contacted both a United States Probation Officer who was supervising Beckman and Special Federal Officer ("SFO") David Vucich, a member of the FBI’s Springfield Child Exploitation Task Force (SCETF). Investigation revealed that Beckman uploaded an image of child pornography to his Facebook page around November 29, 2013, approximately seven days after being released from imprisonment, and placed on supervised release. That same day, United States Probation Officers searched Beckman’s home and seized, among other items, approximately thirty-three compact disks ("CD-Rs") that were found in various areas of the house. When asked whether he possessed child pornography on any of the electronic media seized from his home, Beckman stated that there was child pornography mixed into the CD-Rs as well as on some other electronic media taken from his home.
SFO Vucich obtained a federal search warrant for all of the electronic media seized from Beckman’s home so that the items could be forensically analyzed. SFO Vucich discovered that twenty-seven (27) CD-Rs recovered contained 187 images and 2 video files of minors engaged in sexually explicit behavior, with the majority of the images depicting prepubescent males.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The case was investigated by the Missouri Internet Crimes Against Children Task Force, the United States Probation Office and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Galt Man Sentenced to over 17 Years in Prison for Production of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Tyler Jordan, 32, of Galt, was sentenced today by United States District Judge Garland E. Burrell Jr. to 17 and a half years in prison and a life-term of supervised release for production of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Jordan offered files of child pornography for download on a file-trading website. Law enforcement downloaded 60 child pornography files from him. During a subsequent search of Jordan’s computer, law enforcement found over 20,000 images and videos that showed minors engaged in sexually explicit conduct. Jordan admitted to inappropriately touching two children, both of whom were under the age of 12, and taking sexually explicit pictures of them.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Justin Lee prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.Four Veterinarians Charged with Conspiracy to Administer Drugs to Race Horses Unlawfully at Penn National Race TrackRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that criminal charges were filed late yesterday in U.S. District Court in Harrisburg against four veterinarians involved in treating thoroughbred race horses at Penn National Race Track, in Grantville, Pennsylvania.
According to U.S. Attorney Peter Smith, Dr. Kevin Brophy, age 60, Florida, Dr. Fernando Motta, age 44, Lancaster, Pennsylvania, Dr. Christopher Korte, age 43, Pueblo, Colorado, and Dr. Renee Nodine, age 52, Annville, are each charged in separate Criminal Informations.
Each defendant is charged with allegedly administering drugs to thoroughbred race horses within 24 hours of when the horse was entered to race. This conduct was in violation of the state criminal law prohibiting the rigging of publicly exhibited contests; the administering of the drugs was not pursuant to a valid prescription and constituted misbranding of the prescription animal drugs in violation of federal law. The alleged activity took place at various times beginning as early as 1986 and continuing up to August 2014.
The Informations also allege that the defendants conspired with horse trainers, whose identities are “known to the United States”, to administer the drugs in violation of the laws, rules and regulations governing the conduct of thoroughbred racing.
The government also filed plea agreements with each of the four veterinarians in which they agreed to plead guilty and cooperate with the United States in the continuing investigation. The plea agreements are subject to the approval of the court.
According to the charges, trainers allegedly placed orders for drugs and the defendants, after administering the drugs, backdated the billing records to avoid detection. The defendants allegedly submitted false veterinarian treatment reports to the State Horse Racing Commission, omitting from those reports any reference to the drugs administered to horses at the track on race day. The filing of these reports and the backdating of billing records were, allegedly, to further the conspiracy by concealing the illegal activity. These acts had the potential to defraud other owners and trainers whose horses were entered in the same race and defrauded the betting public as well.
The matter is being investigated by the Harrisburg Office of the Federal Bureau of Investigation, the Pennsylvania State Horse Racing Commission, U.S. Food and Drug Administration’s Office of Criminal Investigations, and the Pennsylvania State Police. Assistant United States Attorney William A. Behe is prosecuting the cases for the United States.
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.
The maximum penalty in these cases under the federal statute is 2 years imprisonment, a term of supervised release following imprisonment, and a $200,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Tinley Park Man Charged with Bankruptcy Fraud for Concealing Seven Luxury Cars Worth $294,000Read the Press Release
CHICAGO — A former Tinley Park resident was charged by information today with concealing his ownership of seven luxury cars during his 2012 bankruptcy proceeding. The charges allege that JOSEPH W. CAMPBELL, 49, concealed cars having a total value of approximately $294,000, including a Lamborghini worth $122,000, a 1966 Chevrolet Corvette, a 1971 Chevrolet Corvette, a 1978 Pontiac Firebird Trans Am, a 1981 DeLorean, a 1989 Pontiac Firebird Trans Am, and a 1997 Dodge Viper. Campbell will be arraigned at a later date in U.S. District Court.
According to the information filed in court, Campbell concealed his ownership of the luxury cars from his creditors, the bankruptcy court, and the trustee in his bankruptcy case by failing to disclose them in his bankruptcy petition. He is also charged with lying under oath about his ownership of the cars in testimony he provided during a creditors’ meeting, a discovery deposition, and a bankruptcy court hearing.
The crimes of bankruptcy fraud and making false statements during a bankruptcy proceeding each carry a maximum penalty of 5 years in prison and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The charges were 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 Patrick Layng, United States Trustee for the Northern District of Illinois.
The government is being represented by Assistant U.S. Attorney Jacqueline Stern.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Former Plan Trustee Indicted for $1.1 Million Embezzlement from A Bankruptcy Estate and Tax EvasionRead the Press Release
DAYTON – A federal grand jury has charged Timothy Hock, 50, currently of Chicago, Illinois, with embezzlement from a bankruptcy state and tax evasion in an indictment returned in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the indictment returned yesterday.
According to the indictment, Hock, who was a Certified Public Accountant, was the controller for Domin-8 Enterprise Solutions, Inc. (Domin-8) when Domin-8 (and other related entities) filed for Chapter 11 bankruptcy in September 2009 in the Southern District of Ohio. Domin-8 was a Mason, Ohio-based company that provided software to companies that managed rental properties.
During the bankruptcy proceedings, Hock was initially appointed as the “Responsible Person” for Domin-8 and later appointed the Plan Trustee. As the Plan Trustee, Hock was responsible for handling the company’s liquidation and transfer of assets, completing claims reviews and making appropriate distributions to various creditors of the company.
Hock allegedly used his position to embezzle money belonging to the bankruptcy estate of Domin-8. Specifically, the indictment alleges that between approximately February 2010 and May 2013, Hock embezzled approximately $1.1 million.
Furthermore, the indictment alleges that Hock committed tax evasion on his 2011 federal income tax return by claiming that his taxable income for 2011 was $0.00, when in actuality his taxable income for the year was $433,625.
Hock was charged with one count of embezzling property that belonged to a bankruptcy estate, in violation of 18 U.S.C. § 153, and one count of tax evasion, in violation of 26 U.S.C. § 7201.
Both crimes are punishable by up to 5 years imprisonment.
“Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts those creditors who can ill-afford to take a loss on legitimate debts,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Embezzling funds belonging to a bankruptcy estate and not paying taxes is a gross violation of civic duty and deserves the punishment handed down today.”
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Alex R. Sistla, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Madison Police Officer Indicted on Use of Unreasonable Force Against a Man he was QuestioningRead the Press Release
BIRMINGHAM – Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton today announced the indictment of a Madison police officer for using unreasonable force against a man he was attempting to question in February.
The one-count felony indictment filed in U.S. District Court charges that ERIC SLOAN PARKER, 26, of Toney, while acting in his official capacity as a police officer on Feb. 6 in Limestone County, injured a man by slamming him to the ground. The indictment identifies the victim only by initials, "S.P."
"Police officers are sworn to uphold the law and protect the public. The public must be able to trust the police," Vance said. "Law enforcement officers who violate their oath to protect and use excessive force must be brought to justice."
According to the indictment, Parker's actions deprived the victim of his right under the U.S. Constitution to be secure from unreasonable searches and seizures, which includes the right to be free from unreasonable force by someone acting under color of law.
An indictment is only an allegation and does not constitute evidence of guilt on the part of the defendant.
The FBI investigated the case. First Assistant U.S. Attorney Robert O. Posey, Assistant U.S. Attorney Russell E. Penfield and DOJ Trial Attorney Henry C. Leventis of the Civil Rights Division and are prosecuting the case.
Former Madison Police Officer Indicted on Use of Unreasonable Force Against a Man He Was QuestioningRead the Press Release
A federal grand jury late Thursday indicted a city of Madison, Alabama, police officer for using unreasonable force against a man he was attempting to question in February 2015, announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Joyce White Vance of the Northern District of Alabama and Special Agent in Charge Roger C. Stanton of the FBI.
The one-count indictment filed in U.S. District Court charges that Eric Sloan Parker, 26, while acting in his official capacity as a police officer on Feb. 6 in Limestone County, injured a man by slamming him to the ground. The indictment identifies the victim only by initials, "S.P."
Parker's actions deprived the man in Madison of his right under the U.S. Constitution to be secure from unreasonable seizures, which includes the right to be free from unreasonable force by someone acting under color of law, according to the indictment. An indictment is only an allegation and does not constitute evidence of guilt on the part of the defendant.
The FBI investigated the case. Trial Attorney Henry C. Leventis of the Civil Rights Division and Assistant U.S. Attorneys Robert O. Posey and Russell E. Penfield of the Northern District of Alabama are prosecuting the case.
Former Las Vegas Casino Company Employee Sentenced to PrisonRead the Press Release
A former employee of a Las Vegas casino company was sentenced yesterday to serve 12 months and one day in federal prison, three years of supervised release and ordered to pay $351,039 in restitution to the United States for tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
According to the plea agreement and other court documents, from about 2005 to 2008, Anthony M. Cirulli was employed as a production manager in the corporate advertising department of Station Casinos, a company that owns several casinos in the Las Vegas area. Part of his job involved reviewing bids for printing contracts and determining which printing companies would be awarded the contracts. During the course of his job, Cirulli began soliciting side payments from printing companies. He instructed the companies to pay him a percentage of the printing contract to guarantee that the companies would continue to be awarded work. Over the course of four years, Cirulli received side payments of more than $2.1 million from these arrangements. He concealed the payments in two different nominee bank accounts in the names of sham business entities.
“The Tax Division is committed to holding individuals accountable for their criminal conduct,” said Acting Assistant Attorney General Ciraolo. “This prosecution and the sentence imposed on Mr. Cirulli sends a clear message that those individuals evading their federal tax obligations do so at their own peril.”
On Sept. 9, 2014, Cirulli pleaded guilty to one count of tax evasion for concealing the payments that he received from printing companies and willfully filing a false federal income tax return for 2007 that omitted the funds.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher Maietta of the Tax Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Former Independence, Missouri, Police Officer Indicted on Federal Civil Rights and Obstruction of Justice ChargesRead the Press Release
Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Tammy Dickinson of the Western District of Missouri announced that a federal grand jury has returned a four-count indictment against former Independence, Missouri, police officer Timothy Runnels for violating the constitutional rights of a minor who was in his custody and obstructing the subsequent investigation into the incident.
According to the indictment, Runnels continuously deployed a Taser against the minor while the minor was on the ground and not posing a threat to Runnels or others. The indictment also charges that Runnels deliberately dropped the minor headfirst onto the ground while the minor was restrained and not posing a threat to Runnels or others. The indictment alleges that the minor sustained bodily injury as a result of Runnels’ actions and, with respect to the first count, that the offense involved the use of a dangerous weapon. The indictment also charges Runnels with two counts of obstruction of justice for filing a false police report concerning the incident and for making a false statement to Independence Police Department investigators regarding the amount of force that he used against the minor.
If convicted, Runnels faces a statutory maximum sentence of 10 years in prison and a fine of $250,000 for each of two charged counts of civil rights violations, and a statutory maximum sentence of 20 years in prison and a fine of $250,000 for one count of obstruction of justice by submitting a false police report and one count of providing misleading information to Independence Police Department investigators.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Kansas City Division and is being prosecuted by Trial Attorney Shan Patel of the Civil Rights Division and First Assistant U.S. Attorney David Ketchmark of the Western District of Missouri.
Former Greece Man Pleads Guilty to Possession of Child PornographyRead 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 John Casey, 46, formerly of Greece, NY, pleaded guilty to possession of child pornography before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that in March 2014, Federal Agents from Homeland Security Investigations working online in an undercover capacity observed the defendant sharing images of child pornography on the internet. At that time, they were able to download several sexually explicit images of children being raped from Casey’s computer. Agents identified the defendant’s physical location and then obtained and executed a federal search warrant for his Greece residence. During the search, they seized multiple digital items which were forensically analyzed. Child pornography images and movies were recovered from two laptops which were also linked to the files shared online. Some of the images depicted children as young as infants being sexually abused.
The plea is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Patrick Phelan and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 26, 2015 at 3:00 p.m. before Judge Wolford.