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Friday 6 February 2015

Former Martin County judge pleads guilty in federal court for failing to file income tax return
Southern District of Indiana
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Loogootee attorney failed to pay over $66,000 in taxes from law firm income

PRESS RELEASE

EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today the guilty plea of a Loogootee man who failed to file his federal income tax returns for 2012. Robert Joseph Howell, 51, was found guilty today before U.S. District Chief Judge Richard L. Young.

Howell, operated Howell Law Firm PC in Loogootee, IN, performing legal services for clients. In 2012, the firm had gross receipts of approximately $450,000, including a $300,000 fee he received from a wrongful death insurance settlement.

Howell’s return preparer initially filed an extension for the 2012 tax year which expired in October 2013. When the accounting firm sent Howell an invoice, he chose not to pay the invoice or his owed taxes. He failed to file business or personal returns in 2012, resulting in a tax debt of over $66,000. According to testimony in court, over $265,000 was withdrawn from his personal and business accounts at casinos in Evansville and French Lick.

Howell formerly served as a circuit court judge and prosecutor in Martin County.

Acting United States Attorney Josh Minkler stated, “taxes are a fundamental responsibility we all owe to help maintain infrastructure, schools and public safety services. When someone willfully neglects that responsibility, they will be held accountable.”

This case was investigated by the Internal Revenue Service, Criminal Investigation.

According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, Howell faces up to one year in prison, a fine up to $100,000, and must pay full restitution to the IRS. Sentencing is scheduled for May 11, 2015, in Evansville.
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Former Ku Klux Klan Officer Sentenced to 10 Months for Committing Perjury During Cross-Burning Investigation
District not recorded
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Today, U.S. District Court Judge L. Scott Coogler sentenced Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, to 10 months in prison and three years of supervised release for committing perjury during a grand jury’s investigation into a racially motivated cross-burning.

Morris, 47, previously admitted during her plea hearing on June 12, 2014, that she lied to a federal grand jury investigating a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the Exalted Cyclops (president) of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African American neighborhood in Ozark to threaten and intimidate residents. Several witnesses observed and were frightened by the cross, including a young man returning from choir practice as the defendants set the cross ablaze. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the Klan or involved with the KKK at all.

In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross-burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.

Dinkle is currently serving a 24-month sentence imposed on May 15, 2014, for his conviction on hate-crime and obstruction-of-justice charges related to the cross-burning. Smith, Dinkle’s co-conspirator, was sentenced to five years of probation on Aug. 19, 2014.

“Acts that target individuals and communities for violence based on race have no place in our society,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Nor can we tolerate those who lie under oath to obstruct the pursuit of justice.”

“Ms. Morris blatantly lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. "Ms. Morris lied after she swore to the grand jury that she would tell the truth. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them."

This case was investigated by the Federal Bureau of Investigation, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case was prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
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Former Ku Klux Klan Officer Sentenced to 10 Months for Committing Perjury During Cross-Burning Investigation
Middle District of Alabama
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Montgomery, Alabama - Today, U.S. District Court Judge L. Scott Coogler sentenced Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, to 10 months in prison and three years of supervised release for committing perjury during a grand jury’s investigation into a racially motivated cross-burning.

Morris, 47, previously admitted during her plea hearing on June 12, 2014, that she lied to a federal grand jury investigating a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the Exalted Cyclops (president) of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African American neighborhood in Ozark to threaten and intimidate residents. Several witnesses observed and were frightened by the cross, including a young man returning from choir practice as the defendants set the cross ablaze. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the Klan or involved with the KKK at all.

In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.

Dinkle is currently serving a 24-month sentence imposed on May 15, 2014, for his conviction on hate-crime and obstruction-of-justice charges related to the cross burning. Smith, Dinkle’s co-conspirator, was sentenced to five years of probation on Aug. 19, 2014.

“Acts that target individuals and communities for violence based on race have no place in our society,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Nor can we tolerate those who lie under oath to obstruct the pursuit of justice.”

“Ms. Morris blatantly lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. "Ms. Morris lied after she swore to the grand jury that she would tell the truth. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them."

This case was investigated by the Federal Bureau of Investigation, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case was prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.

PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
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Former Executive Pleads Guilty to Defrauding Shipping Company
Southern District of Texas
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HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has pleaded guilty to 10 counts of wire fraud in connection with defrauding her company, announced United States Attorney Kenneth Magidson.

As part of her guilty plea, Creel, 43, admitted that from June 2003 through August 2009, she was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. Creel also admitted she had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.

Creel admitted that from at least June 2003 through approximately August 2009, she defrauded Wilhelmsen by embezzling money from the company’s bank accounts. Creel used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own. Specifically, Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors. Creel entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account.

U.S. District Judge Grey Miller, who accepted the guilty plea, has set sentencing for April 17, 2015. At that time, she faces up to 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss on each count, along with forfeiture allegations of more than $4 million.

She was permitted to remain on bond pending that hearing.

The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
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Former Douglas County Elementary School Principal Sentenced to Prison for Attempting to Entice A Minor
Northern District of Georgia
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ATLANTA - John Harold McGill, the former principal of Mt. Carmel Elementary School in Douglas County, Ga., has been sentenced to ten years in prison for using emails and text messages to attempt to entice a minor to engage in unlawful sexual activity. McGill was arrested on March 2, 2014, and was convicted after a two-day trial in December 2014.

“It is deeply disturbing and disappointing that an elementary school principal would attempt to have sex with a thirteen-year-old girl,” said Acting United States Attorney John Horn. “We will continue to devote every resource possible to protecting children and prosecuting those who prey upon them.”

According to Acting United States Attorney Horn, the charges, and evidence presented in court: On Saturday, March 1, 2014, McGill responded to an Internet advertisement named “casual encounters,” purportedly posted by a mother who was seeking a man to introduce her thirteen-year-old daughter to sexual intercourse. McGill communicated with who he thought was the girl's mother by email and text throughout the evening and into early Sunday morning, March 2, 2014.

With his wife out of town at a conference, McGill put his children to bed, and then drove more than 50 miles from Douglasville, Ga., to Lithonia, Ga. He arrived at the mother's house at 1:45 a.m. with a condom in his pants pocket. But the “mother” was an FBI Task Force Officer, and McGill was arrested.

In addition to sentencing John Harold McGill, 57, of Douglasville, Ga., to ten years in prison, United States District Judge William S. Duffey ordered that McGill remain on supervised release for the rest of his life after his imprisonment ends.

This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Cobb County Police Department, and the DeKalb County District Attorney’s Office.

Assistant United States Attorney William G. Traynor prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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/.
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Former Army Soldier Sentenced to Life in Prison for Murder of his Five-Year-Old Daughter
District not recorded
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An Army soldier was sentenced to life in prison without the possibility of parole today for murdering his five-year-old daughter, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.

Naeem Williams, 34, was sentenced today by U.S. District Judge J. Michael Seabright of the District of Hawaii. On June 27, 2014, a federal jury in Honolulu found Williams guilty of beating his daughter, Talia Williams, to death at the family’s residence on Wheeler Army Airfield in Honolulu.

The jury also convicted Williams of participating, along with his wife, Delilah Williams, in a pattern and practice of assault and torture from December 2004 until July 16, 2005, that resulted in Talia’s death. In addition, Williams was convicted of obstructing justice and making false statements to Army Criminal Investigation Division agents on the night of his arrest in July 2005.

The evidence presented at trial demonstrated that Naeem Williams and his wife beat Talia almost daily. Naeem Williams testified that the abuse was aimed at disciplining his daughter for bathroom accidents and was exacerbated due to frustrations he was experiencing in his marriage. The evidence indicated that the physical abuse included punching Talia repeatedly, commanding her to eat her own feces, depriving her of food, requiring her to do strenuous exercises and then beating her when she was unable to continue, and using duct tape to bind her to a bed post where she was whipped with a belt. In the hours preceding her death, Naeem Williams struck Talia and her head slammed backwards against the floor. Talia then appeared to have a seizure.

Delilah Williams pleaded guilty to first-degree felony murder, agreed to testify against her husband and was sentenced to 20 years in prison.

This case was investigated by the FBI and the Army Criminal Investigation Division, and was prosecuted by Trial Attorney Steven D. Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii.
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Former Army Soldier Sentenced to Life in Prison for Murder of his Five-Year-Old Daughter
District of Hawaii
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WASHINGTON – An Army soldier was sentenced to life in prison without the possibility of parole today for murdering his five-year-old daughter, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.

Naeem Williams, 34, was sentenced today by U.S. District Judge J. Michael Seabright of the District of Hawaii. On June 27, 2014, a federal jury in Honolulu found Williams guilty of beating his daughter, Talia Williams, to death at the family’s residence on Wheeler Army Airfield in Honolulu.

The jury also convicted Williams of participating, along with his wife, Delilah Williams, in a pattern and practice of assault and torture from December 2004 until July 16, 2005, that resulted in Talia’s death. In addition, Williams was convicted of obstructing justice and making false statements to Army Criminal Investigation Division agents on the night of his arrest in July 2005.

The evidence presented at trial demonstrated that Naeem Williams and his wife beat Talia almost daily. Naeem Williams testified that the abuse was aimed at disciplining his daughter for bathroom accidents and was exacerbated due to frustrations he was experiencing in his marriage. The evidence indicated that the physical abuse included punching Talia repeatedly, commanding her to eat her own feces, depriving her of food, requiring her to do strenuous exercises and then beating her when she was unable to continue, and using duct tape to bind her to a bed post where she was whipped with a belt. In the hours preceding her death, Naeem Williams struck Talia and her head slammed backwards against the floor. Talia then appeared to have a seizure.

Delilah Williams pleaded guilty to first-degree felony murder, agreed to testify against her husband and was sentenced to 20 years in prison.

This case was investigated by the FBI and the Army Criminal Investigation Division, and was prosecuted by Trial Attorney Steven D. Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii.
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Final Two Defendants Plead Guilty in International Counterfeit Currency Ring
Eastern District of Tennessee
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All 13 defendants have pleaded guilty in $86 million counterfeiting scheme

ALEXANDRIA, Va. – Ofra Borohov, 45, and Boaz Borohov, 44, a married couple from Tel Aviv, Israel, pleaded guilty today to RICO conspiracy involving multiple acts of counterfeiting of U.S. currency and money structuring.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Joseph P. Clancy, Acting Director of the United States Secret Service, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady.

“This counterfeiting ring used sophisticated techniques to mimic the security and design features of U.S. currency and created over $86 million in counterfeit bills,” said U.S. Attorney Boente. “I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”

“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said Secret Service Acting Director Clancy. “This investigation joins a long list of successful counterfeit suppressions over our 149 year history. We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”

According to court documents filed in this case, the Borohov’s participated in a criminal enterprise that engaged in multiple acts involving counterfeiting of U.S. currency and money structuring. Ofra and Boaz came to the United States from Israel in March 2014 to assist in the production and manufacture of counterfeit $100 notes at a warehouse in Cherry Hill, New Jersey, purchased by Itzhak Loz and Ronin Fakiro, two co-conspirators. Over $2.56 million in counterfeit currency was manufactured at the warehouse where the Borohov’s were arrested on May 28, 2014, when the U.S. Secret Service executed a search warrant there.

All 13 defendants named in the original indictment have pleaded guilty and are awaiting sentencing. The defendants are listed in the indictment in the following order:

Defendant Name & Age

Residence

Arrest Location & Date

Status

Itzhak Loz, 46

Rison Lezion, Israel

Jamaica, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentencing May 15, 2015

Ronin Fakiro, 45

Rison Lezion, Israel

Jamaica, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentencing May 8, 2015.

Boaz Borohov, 43

Tel Aviv, Israel

Cherry Hill, New Jersey
May 28, 2014

Pleaded guilty Feb. 6, 2015. Sentencing May 22, 2015.

Ofra Borohov, 45

Tel Aviv, Israel

Cherry Hill, New Jersey
May 28, 2014

Pleaded guilty Feb. 6, 2015. Sentencing May 22, 2015.

Arkadiy Bangiyev, 37

Rego Park, New York

Rego Park, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentencing May 1, 2015.

Eduard Bangiyev, 39

Forest Hills, New York

Scranton, Pennsylvania
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentencing May 1, 2015.

Johnny Elegante Lee, 44

Glen Oaks, New York

Miami, Florida
June 1, 2014

Pleaded guilty Sept. 16, 2014. Sentencing on Feb. 20, 2015.

Tarell Lavon Johnson, 26

Lynbrook, New York

Lynbrook, New York
May 28, 2014

Pleaded guilty Oct. 23, 2014. Sentencing Feb. 27, 2015.

Craig Johnson, 48

Douglasville, Georgia

Douglasville, Georgia
June 13, 2014

Pleaded guilty Oct. 1, 2014. Sentencing Feb. 13, 2015.

Shannon Lamont Smith, 38

Woodstock, Georgia

Atlanta, Georgia
May 28, 2014

Pleaded guilty Sept. 26, 2014. Sentencing Feb. 27, 2015.

Fredrick Barrett, 32

Hempstead, New York

Hempstead, New York
May 28, 2014

Pleaded guilty Oct. 24, 2014. Sentencing Feb. 27, 2015.

Ramel Epps, 23

Freeport, New York

Freeport, New York
May 28, 2014

Pleaded guilty Oct. 20, 2014. Sentencing Feb. 20, 2015.

Brattie Guerra, 22

Freeport, New York

Freeport, New York
May 28, 2014

Pleaded guilty Oct. 3, 2014. Sentencing Feb. 20, 2015.

This case was investigated by the United States Secret Service. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
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Final Defendants Sentenced in 28-Defendant Investigation of Criminal Activity by North Georgia Motorcycle Gangs
Northern District of Georgia
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GAINESVILLE, Ga. - Walt Verrill, who was a member of the Black Pistons Motorcycle Club, and Tony Parrott, who was an affiliate of the same motorcycle club, are the last two defendants in a long-term investigation of motorcycle gangs in North Georgia. Both have been sentenced for possessing methamphetamine with intent to distribute.

“These sentencings close a comprehensive investigation into drug trafficking and illegal gun and explosives offenses by members of motorcycle gangs operating in North Georgia,” said Acting United States Attorney John Horn. “The case reflects our commitment to make sure the communities in North Georgia are safe, and prevent gang members involved in drug and gun offenses from establishing a foothold there.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing concludes an extensive investigation by the FBI and its law enforcement partners into criminal activities associated with several biker groups located in the North Georgia region. The FBI is well positioned to conduct and coordinate such investigations and will continue to work with area law enforcement in making sure that North Georgia remains free from such individuals and groups attempting to set up organized criminal enterprises.”

According to Acting United States Attorney Horn, the charges and other information presented in court: Beginning in mid-2010, the FBI conducted a long-term undercover investigation in north Georgia into allegations that members of the Outlaw Motorcycle Club, the Black Pistons Motorcycle Club, and other motorcycle clubs were engaged in various forms of criminal activity, including drug distribution and illegal firearms and explosives offenses. An undercover agent posed as a drug dealer from Florida who was looking to expand his drug dealing into North Georgia. He was introduced to members of the motorcycle clubs by a club member who was working as an informant for the FBI.

The undercover agent conducted actual and ruse drug deals in which he either bought methamphetamine from motorcycle club members or recruited club members to assist him in moving what they were led to believe were significant quantities of methamphetamine or cocaine from North Georgia to Tennessee. The undercover agent also obtained firearms from convicted felons and engaged two defendants in discussions about making an unregistered explosive device for him.

The investigation also took a side route into the Hispanic SUR-13 gang, which was operating in Hall County, Ga. A second informant introduced SUR-13 gang members and affiliates to the undercover agent, and they then moved what they were led to believe were significant quantities of cocaine through Hall County, Ga., to Tennessee. The undercover agent also conducted illegal firearms transactions with SUR-13 gang members.

In mid-July 2012, the FBI learned that members of the Outlaw Motorcycle Club suspected that one of the FBI’s informants was working for the FBI. The undercover investigation was terminated at that time. On August 16, 2012, 22 defendants were arrested on drug, firearms, and obstruction of justice charges. Six other defendants were arrested later. Since then, 20 defendants have pleaded guilty to various charges, two defendants were convicted after jury trials, and five defendants were acquitted at trial. One defendant, David Rizo-Troncoso, absconded after he was released on bond. Rizo-Troncoso remains a fugitive.
The investigation was conducted by the FBI with assistance from the North Georgia Major Offenders Task Force and the Georgia Bureau of Investigation.

Assistant United States Attorneys William L. McKinnon, Jr. and Sally B. Molloy prosecuted these cases.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

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 Gainesville Division is http://www.justice.gov/usao/gan/.
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Federal Grand Jury Criminal Indictments Announced
Northern District of Oklahoma
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TULSA, Okla. — The results of the February 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Gustavo Ambriz-Vargas. Alien in the United States After Deportation. Gustavo Ambriz-Vargas, 35, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2014 near Calexico, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.

Jose Ambriz-Vargas. Alien in the United States After Deportation. Jose Ambriz-Vargas, 28, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2011 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.

Kathleen Suzanne Chance. Theft of Government Property. Chance, 38, of Tulsa, is charged with stealing more than $1,000 in Social Security from March 2010 to December 2013. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Social Security Administration-Office of Inspector General is the investigating agency.

Winston Avery Covington. Felon in Possession of a Firearm and Ammunition. Covington, 32, of Tulsa, is charged with possessing a 9mm caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.

Douglas Nick Dooley. Possession of Methamphetamine with Intent to Distribute and Felon in Possession of a Firearm. Dooley, 45, of Afton, Oklahoma, is charged with possessing methamphetamine with intent to distribute. In addition, Dooley is charged with possessing a .22 caliber revolver after prior felony convictions. If convicted, the statutory maximum penalty for possession with intent to distribute methamphetamine is 20 years in prison and a $1,000,000 fine. If convicted, the statutory maximum penalty for a felon in possession of a firearm is 10 years in prison and a $250,000 fine. Upon conviction, the defendant faces forfeiture of the firearm. The Bureau of Indian Affairs is the investigating agency.

Jamaal Everett Gardenhire. Felon in Possession of Firearm and Ammunition. Gardenhire, 31, of Tulsa, is charged with possessing a .357 Magnum caliber revolver and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. Upon conviction, the defendant faces forfeiture of the firearm and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.

Aide Hernandez-Saenz. Alien in the United States After Deportation. Hernandez-Saenz, 41, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in September 2009 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.

Aldo Linares-Torres. Alien Illegally in the United States in Possession of a Firearm and Ammunition and Unlawful User of Controlled Substance in Possession of a Firearm and Ammunition. Linares-Torres, 34, is charged with possessing a .38 Special caliber revolver and ammunition while being unlawfully in the United States. In addition, the defendant is charged with possessing a firearm and ammunition while being an unlawful user of a controlled substance. If convicted, the charges carry the statutory maximum penalty of 10 years in prison and a $250,000 fine. Upon conviction, the defendant faces forfeiture of the firearm and ammunition. United States Immigration and Customs Enforcement is the investigating agency.

Armondo Nunes-Flores. Alien in the United States After Deportation. Nunes-Flores, 40, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in February 2009 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.

Christopher M. Rohrbach. Failure to Register as a Sex Offender. Rohrbach, 33, of Watts, Oklahoma, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act after a 2007 conviction. If convicted, the maximum statutory penalty would be 10 years in prison and a $250,000 fine. The U.S. Marshals Service is the investigative agency.

Felipe Romero-Ramirez. Alien in the United States After Deportation. Romero-Ramirez, 43, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in July 2003 near Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.

Kristina Renea Smith. Assault Resulting in Serious Bodily Injury in Indian Country and Assault in Indian Country by Striking, Beating, and Wounding. Smith, 26, of Salisaw, Oklahoma, a non-Indian, is charged with assaulting an Indian woman resulting in serious bodily injury on November 15, 2014 at the Hard Rock Casino. In addition, the defendant is charged with a misdemeanor for assaulting another Indian woman during the same incident. If convicted, the statutory maximum penalty for assault resulting in serious bodily injury in Indian Country is 10 years in prison and a $250,000 fine. If convicted of the misdemeanor, the statutory maximum penalty is one year and a $100,000 fine. The FBI and the Cherokee Nation Marshal Service are the investigating agencies.

Sabrina Nicole Stubbs. Theft from Indian Lands in Excess of $1,000. Stubbs, 29, of Jenks, Oklahoma, a non-Indian, is charged with stealing over $1,000 worth of personal property belonging to an Indian man. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The FBI and the Cherokee Nation Marshal Service are the investigating agencies.

Timothy Jason Sumner. Failure to Register as a Sex Offender. Sumner, 30, of Joplin, Missouri, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act after a prior sex offense conviction. If convicted, the maximum statutory penalty would be 10 years in prison and a $250,000 fine. The U.S. Marshals Service is the investigative agency.

Keenan Dancell Verner. Possession of Methamphetamine with Intent to Distribute. Verner, 31, of Tulsa, is charged with possessing with the intent to distribute 50 grams or more of methamphetamine. If convicted, the statutory minimum penalty is five years in prison and the maximum penalty is 40 years and a $5,000,000 fine. The Tulsa Police Department is the investigating agency.

Juan Villalobos-Jimenez. Alien in the United States After Deportation. Villalobos-Jimenez, 21, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in February 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
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Federal Court Bars Two Managers of Florida Tax Preparation Stores from Owning a Tax Return Preparation Business and Preparing Tax Returns for Others
District not recorded
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A federal court in Orlando, Florida, has permanently barred two managers of tax preparation stores in Florida from preparing tax returns for others and from owning or operating a tax return preparation business, the Justice Department announced today.

The civil injunction order, to which Jehoakim Victor and Lauri Rodriguez agreed, was signed by Chief Judge Anne C. Conway of the U.S. District Court for the Middle District of Florida.

The United States filed its civil injunction complaint in September 2014 against Kerny Pierre-Louis, Rodriguez and Victor. Rodriguez and Victor managed and supervised employees at LBS Tax Services stores, which were owned by Pierre-Louis. According to the complaint, both Rodriguez and Victor were paid, in part, based on a percentage of the gross tax preparation fees that the locations charged its customers. The government alleged that they, and return preparers they supervised, prepared fraudulent federal tax returns on which they falsely claimed the earned-income credit and bogus education credits, report improper filing statuses, inflated federal income tax withholdings and fabricated business expenses.

The lawsuit against Pierre-Louis, Rodriguez and Victor is one of eight suits filed by the United States in Florida against Walner Gachette, the founder and franchisor of LBS Tax Services, and numerous other LBS franchisees and managers. The other cases, as well as the claims against Pierre-Louis in this case, remain pending.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Former Hattiesburg Public Works General Manager Pleads Guilty to Federal Kickback Scheme
Southern District of Mississippi
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Hattiesburg, Miss. - John T. "Tim" Pittman, 54, a former Public Works General Manager for the City of Hattiesburg, pled guilty today in U.S. District Court to conspiracy involving a kickback scheme which defrauded the U.S. Department of Agriculture, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, and Acting Special Agent in Charge Patrick Munday with the USDA Office of Inspector General.

Pittman’s father, T.L. Pittman, Jr., owns multiple apartment complexes throughout the State of Mississippi which were financed through the USDA. T.L. Pittman, Jr., through his company Century Management, Inc., hired a contractor to do work for one of his USDA-financed apartment complexes with the agreement that the contractor would kick back part of the contract to T.L. Pittman, Jr. Century Management then awarded various contracts to the contractor, who kicked back money to T.L. Pittman, Jr. and his son, John T. "Tim" Pittman for the awarding of such contracts.

Pittman will be sentenced by U.S. District Court Judge Keith Starrett on May 18, 2015, at 1:45 p.m. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.

This case was investigated by the Federal Bureau of Investigation and the USDA Office of Inspector General. Assistant U.S. Attorney Mike Hurst is prosecuting the case.
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Dubuque Man Pleads Guilty to Wire Fraud and Filing False Tax Returns
Northern District of Iowa
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Contact: Steve Young

A former Controller of a Dubuque company, who embezzled more $340,000 from the company, pled guilty today to one count of wire fraud and one count of filing false tax returns.

In a plea agreement, Michael Schute, age 50, from Dubuque, Iowa, admitted he embezzled the money from the company between 2008 until he was fired in April 2013. Schute embezzled the money by writing checks on the company bank account to pay personal credit cards and other bills. Schute then concealed this conduct by falsifying the company books to make it appear the funds were expended on company debts. When filing his tax returns for the tax years 2008 through 2013, Schute falsely concealed the funds he received from the embezzlement for his own personal use. Illegal income is taxable.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Schute remains free on bond pending sentencing. Schute faces a possible maximum sentence of 23 years’ imprisonment, a $500,000 fine, or twice the amount of funds embezzled, $200 in special assessments, and up to four years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service and the Dubuque Police Department.

Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-cr-1003-LRR.

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District Man Sentenced to Nearly 13 Years in Prison for Stabbing and Assaulting VictimsDefendant Stabbed One Victim in Dark Alley, Later Lunged at Officer with Knife
District of Columbia
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     WASHINGTON - Nathaniel Cousart, 53, of Washington, D.C., has been sentenced to 12 years and seven months in prison on charges stemming from a stabbing and assault in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
     Cousart was found guilty by a jury on Sept. 10, 2014, in the Superior Court of the District of Columbia, of aggravated assault while armed, assault with a dangerous weapon, and carrying a dangerous weapon. He was sentenced on Feb. 5, 2015 by the Honorable Patricia A. Broderick. Upon completion of his prison term, he will be placed on five years of supervised release.

     According to the government’s evidence, on Sept. 13, 2013, at about 7:30 p.m., Cousart followed a man he knew into a dark alley off the 1500 block of North Capitol Street NW and stabbed him four times in the back, neck and shoulder area while demanding the victim’s property. The stabbing caused extreme pain, and lasting damage to the victim’s nerves and shoulders. The victim escaped and ran away while the defendant pursued him.

     The victim eventually collapsed on the steps of an apartment building, where Special Police Officers working at the building came to assist. One officer called out to Cousart, who turned to flee. The officer gave chase, and Cousart turned and went towards the officer with his knife drawn. When the officer drew his service weapon, Cousart fled again, this time ditching the knife into a sewer drain. The Metropolitan Police Department (MPD) responded, and with the help of the D.C. Water and Sewer Authority, recovered the knife and other evidence.

     In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Todd McClelland and Assistant U.S. Attorneys James Petkun and Nihar Mohanty. Finally, he expressed appreciation for the work of Assistant U.S. Attorney John Marston, of the Felony Major Crimes Trial Section, who prosecuted the matter.
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District Man Found Guilty of Felony Charges
District of Columbia
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For Shooting at Special Police Officer
-Defendant Threatened Victim, Left, and Returned to Fire at Him

     WASHINGTON – Jerrell Jackson, 29, of Washington, D.C., has been found guilty by a jury of numerous charges stemming from an incident in which he threatened and subsequently shot at a Special Police Officer, U.S. Attorney Ronald C. Machen Jr. announced today.
     Jackson was found guilty on Feb. 4, 2015, in the Superior Court of the District of Columbia, of a total of eight counts, including assault on a police officer while armed, assault with a dangerous weapon, threats, and various firearms offenses. He is to be sentenced on April 3, 2015 by the Honorable Todd E. Edelman.

     According to the government’s evidence, on July 27, 2014, at about 5:10 p.m., Jackson was involved in a verbal dispute with another man in the courtyard area of the Benning Courts Apartment Complex in the 1700 block of Benning Road NE. The victim, who was working as a Special Police Officer at the apartment complex, called for back-up assistance to clear the area and avoid an impending physical altercation. Jackson then accused the victim of being scared. When the victim denied being scared, Jackson threatened him by saying words to the effect of, “Oh, you’re not scared? Be here when I get back.”

     Jackson left the apartment courtyard on foot. Approximately 15 minutes later, he returned on a bicycle and fired one shot at the victim, who was not injured. Jackson then fled the scene on the bicycle and was arrested pursuant to an arrest warrant on Aug. 4, 2014.

     In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond, Victim/Witness Advocate Jennifer Clark, Information Technology Specialist Anisha Bhatia, and Assistant U.S. Attorneys Jennifer Kerkhoff and Michael Truscott. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Christine Macey, of the Felony Major Crimes Trial Section, who prosecuted the matter.
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District Court Enters Permanent Injunction Against Oregon Company and Executive to Stop Distribution of Unapproved New Drugs and Adulterated Products
District not recorded
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The U.S. District Court for the District of Oregon entered a permanent injunction against James G. Cole Inc., of Hood River, Oregon, its president James G. Cole and its former general manager Julie D. Graves to prevent the distribution of unapproved and misbranded drugs and adulterated dietary supplements, the Department of Justice announced today.

The company manufactures various products that have been distributed under the name “Maxam Nutraceutics.” The department filed a complaint in the U.S. District Court for the District of Oregon, at the request of the U.S. Food and Drug Administration (FDA), alleging that the company’s dietary supplements are manufactured under conditions that are inadequate to ensure the quality of its products and that its products are unapproved and misbranded drugs. Pursuant to the permanent injunction entered by the court on Feb. 5, the defendants are prevented from distributing the company’s products until the defendants comply with the requirements set forth in the court’s order.

U.S. District Court Judge Michael H. Simon held that the company’s Maxam products are unapproved new drugs under the federal Food, Drug, and Cosmetic Act (FDCA). The court based its decision in part on the company’s claims that the products could treat autism, Alzheimer’s, HIV and Fibromyalgia, among other diseases.

“The American public needs to have confidence that products promoted for the treatment of disease are safe and effective,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The failure of manufacturers of dietary supplements to have procedures in place to ensure the quality and identity of all ingredients that go into their products poses a serious risk to public health.”

The court also held that the company’s products were misbranded drugs because the products failed to bear adequate directions for use for the purposes for which the drugs were intended – in the case of the company’s products, to treat diseases such as autism. The court noted that such directions for use, including dosages, warnings and side effects, must be premised on clinical data derived from scientifically controlled investigation, and that the defendants had “conducted no controlled studies and collected no clinical data” regarding their products.

The court also found that the company’s products were adulterated dietary supplements because they were not produced in compliance with federal good manufacturing practice regulations. Under the FDCA, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. A series of inspections of the company’s manufacturing facility, conducted by the FDA beginning in 2012, revealed, among other things, that the defendants did not have specifications for the ingredients in their products and did not conduct appropriate tests on incoming shipments of components used in the manufacture of their products to determine the identity, strength, purity and composition of each component. The court found that the state of the defendants’ manufacturing practices was such that the defendants have “no idea what goes into their products.”

The permanent injunction prohibits the defendants from manufacturing or distributing their products unless and until they take a number of steps to come into compliance with federal law, including obtaining FDA approval of their drug products or working with an expert to remove all claims from their product labels, promotional materials and websites that evidence an intended use for their products as drugs, and coming into full compliance with good manufacturing practice regulations.

“Along with our partners at the FDA, we are committed to protecting our citizens from threats to their health and safety,” said U.S. Attorney Amanda Marshall of the District of Oregon. “Everyone who deals in products that affect people’s health must comply with federal law.”

The government was represented by Trial Attorney Ann Entwistle of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Sonia Nath and Associate Chief Counsel for Enforcement Son Nguyen of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division. Assistance was also provided by the U.S. Attorney’s Office for the District of Oregon.
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Delta Blues Drug Kingpin Sentenced to Life Plus 10 Years Imprisonment
Eastern District of Arkansas
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LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Demetrius Colbert, age 39, of Marianna, was sentenced to life imprisonment plus ten years in prison for his leadership of a drug conspiracy and for firearms violations, including assault on a federal officer. On June 6, 2014, Colbert was convicted following a one-week jury trial of the following offenses in the Superseding Indictment in Case No. 4:11CR00210-1:

Count One – Conspiracy to Distribute and to Possess with Intent to Distribute Cocaine and Crack Cocaine, 21 U.S.C. § 846

Count Four – Use of a Telephone in Furtherance of a Drug Trafficking Crime, 21 U.S.C. § 843(b)

Count Five – Use of a Telephone in Furtherance of a Drug Trafficking Crime, 21 U.S.C. § 843(b)

Count Twenty-One – Felon in Possession of a Firearm, 18 U.S.C. § 922(g)(1)

Count Twenty-Two – Assault of a Federal Officer, 18 U.S.C. § 111

Count Twenty-Three – Discharging a Firearm in Connection with a Drug Trafficking Crime and a Federal Crime of Violence, 18 U.S.C. § 924(c)

At the Sentencing Hearing on February 5, 2015, U.S. District Court Judge James M. Moody Jr. found that Colbert was responsible for trafficking at least 200 kilograms of cocaine and at least 21 kilograms of crack cocaine during the conspiracy period of January 2010 to October 2011. Judge Moody also found that Colbert was and organizer and leader of the drug conspiracy. Judge Moody further found that Colbert committed his offense as part of a pattern of conduct engaged in as a livelihood. Judge Moody applied an enhancement to Colbert’s advisory sentencing guideline range to reflect that Colbert caused serious bodily injury to a federal law enforcement officer when Colbert fired at agents serving a search warrant at his home in Marianna on October 11, 2011. Judge Moody then sentenced Colbert to life imprisonment plus ten years. As a result of Colbert’s convictions, he forfeited the following property seized from his home and vehicles on October 11, 2011: $424,519 in U.S. currency and jewelry valued at $32,750.

“Every day there are unsung heroes who put their lives on the line to protect and safeguard the citizens of Arkansas,” stated Thyer. “These valiant men and women in law enforcement are dedicated to keeping our cities and towns safe for all to enjoy. Now, because of the efforts of these heroes, Demetrius Colbert, a man with total disregard for the lives of others, including law enforcement, has learned the price to pay for his indifference is spending the rest of his life in prison.”

“Demetrius Colbert is a parasite whose contributions to our community include drugs and violence,” stated David T. Resch, Special Agent in Charge at the Federal Bureau of Investigation in Little Rock, “We appreciate the U.S. Attorney’s steadfast pursuit of justice. Arkansas is a better place with Demetrius Colbert in federal prison.”

The charges stemmed from multiple Organized Crime and Drug Enforcement Task Force (OCDETF) investigations collectively referred to as “Operation Delta Blues,” which focused on public corruption, drug trafficking, and unlawful firearms activities in the Helena-West Helena and Marianna, Arkansas, areas. The United States Attorney’s Office utilized sixteen court-authorized wiretaps over the course of Operation Delta Blues. Approximately 800 federal, state, and local law enforcement personnel participated in the October 11, 2011 arrests.

The Colbert case was investigated by the FBI, the Drug Enforcement Administration, and the Arkansas State Police. It was prosecuted by Assistant United States Attorneys Julie Peters, Benecia Moore, and Michael Gordon.

The sole remaining defendant from the original Delta Blues cases, Milton Johnson, is currently set for trial before Judge Moody in Case No. 4:11CR00209 JM on February 17, 2015.

An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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Complaint Unsealed Charging Two with Making Terrorist Hoax
Western District of Oklahoma
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Oklahoma City, Oklahoma – Today, Sanford C. Coats, United States Attorney for the Western District of Oklahoma, and Jim Finch, FBI Special Agent in Charge, announced that a criminal complaint was unsealed this afternoon charging ISRAA JAFAR ALI, 19, from Oklahoma City, and SAJJAD HUSSEIN AL FEHAIDAH, 23, from Saudi Arabia, with making a false report of a purported suicide bomber targeting an unspecified Christian church near the University of Central Oklahoma (UCO) campus in Edmond, Oklahoma.

According to the complaint, on September 19, 2014, Ms. Ali made a 911 call to the Edmond Police Department using the cell phone of her boyfriend, Mr. Al Fenaidah. During that call, Ms. Ali reported that a terrorist act may occur in Edmond. Specifically, according to the complaint, Ms. Ali identified an international student who she claimed to have overheard talking about committing a suicide bombing by strapping on a vest with nails that would explode and kill people at an unspecified Christian church near the UCO campus. According to the complaint, Mr. Al Fenaidah assisted Ms. Ali by allowing her to use his cell phone to make the false report and by looking up biographical information about the student who was wrongfully accused of making the threat.

Based on the 911 call and report, the FBI’s Joint Terrorism Task Force vigorously investigated the threat until it was determined that it was, in fact, a hoax.

Mr. Al Fenaidah was arrested yesterday and appeared in U.S. District Court this afternoon in Oklahoma City. He was ordered detained until a detention/preliminary hearing on Monday, February 9, 2015, at 1:30: p.m.

Ms. Ali was arrested today in Nashville, Tennessee, and appeared in U.S. District Court in Nashville. She was ordered to appear in U.S. District Court in Oklahoma City on February 20, 2015.

If convicted, each defendant faces up to five years in prison and a $250,000 fine. Reference is made to the criminal complaint and affidavit for further information. The public is reminded this is simply a charge and both defendants are presumed innocent unless and until they are convicted in court.

The FBI and United States Attorney’s Office would like to thank the Edmond Police Department and the following members of the FBI Joint Terrorism Task Force who assisted in the investigation: the Oklahoma City Police Department, the Oklahoma Highway Patrol, the United States Secret Service, and the Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Ed Kumiega.
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Cleveland Man Indicted for Preparing and Filing False Tax Returns
Northern District of Ohio
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A 33-count federal indictment was filed charging a Cleveland man with preparing dozens of false tax returns and falsely claiming more than $133,000 in refunds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.

Sean Houston, 46, was indicted on one count of conspiracy to defraud the government and 32 counts of making false, fictitious or fraudulent claims.

Nikita Griffin, 39, of Atlanta, was also indicted on one count of conspiracy to defraud the government.

“As we enter tax season, this indictment should serve as a reminder to those who would file fraudulent tax returns and claim money to which they aren’t entitled,” Dettelbach said.

“Law-abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal taxes,” Enstrom said. “We will continue to partner with the U.S. Attorney’s Office and investigate the criminals who engage in such brazen and fraudulent conduct.”

In 2010, Houston prepared false tax returns, listing fictitious wages and income-tax withholdings when he knew no wages had been earned and no taxes withheld. The returns also claimed “making work pay” tax credits to which they were not entitled, according to the indictment.

Houston also sent the filed tax returns to the Santa Barbara Bank and Trust in San Diego in order to obtain refund anticipation loans, from which he took preparation fees. In the course of the scheme, Houston claimed refunds totaling $133,612 and obtained preparation fees totaling $9,605, according to the indictment.

Houston solicited Griffin to negotiate refund checks generated by the scheme. Griffing deposited three checks into a bank account he controlled and helped third parties negotiate additional checks, according to the indictment.

The case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by IRS-CI.

If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Cedar Rapids Man Pleads Guilty to Attempting to Obstruct Forfeiture Proceedings
Northern District of Iowa
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Contact: Steve Young

A man who was convicted of multiple fraud, aggravated identity theft, and tax charges in 2013, pled guilty today to attempting to obstruct the federal government’s efforts to forfeit his real property to be used as restitution for his fraud victims.

Randy Beltramea, age 50, from Cedar Rapids, Iowa, pled guilty to four counts of attempting to obstruct justice.

At the plea hearing, Beltramea admitted he attempted to impede and hinder the federal government’s efforts to forfeit a real estate development, the proceeds from which were to be used to pay restitution to the victims of his fraud. Beltramea pled guilty to all four counts of the indictment. The indictment alleged that Beltramea owned a housing development project near Mt. Vernon, Iowa, called Castlerock Estates, which consisted of approximately 80 acres of land, part of which had been plotted into separate lots with road and utility access.

In 2013, Beltramea was indicted by a federal grand jury, which charged him with a number of offenses including fraud charges related to obtaining money from people under false pretenses and using the funds for, among other things, funding the Castlerock development. The indictment gave notice that the United States intended to forfeit, among other property, all of the real property constituting the Castlerock development. In October 2013, Beltramea pled guilty to eight of the sixteen counts of the indictment. In December 2013, the court entered a preliminary order of forfeiture on the real property constituting the development.

Unbeknownst to the United States or the court, while the indictment and forfeiture proceedings were pending against Beltramea he sold two lots in the development for approximately $160,000. He also filed a mortgage, in his mother’s name, on the remaining lots claiming the property had been pledged as collateral for a loan from his mother in excess of $300,000. This conduct was intended to impede the government’s ability to forfeit the Castlerock development and use the proceeds to pay the victims of his fraudulent conduct.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Beltramea remains in custody pending sentencing. Beltramea faces a possible maximum sentence of 80 years’ imprisonment, a $1 million fine, $400 in special assessments, and up to 12 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service.

Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-0095-LRR.
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Carbondale Man Indicted for Making Threats Against Social Security Administration Employee
Southern District of Illinois
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The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Steven Vizcarrondo, 22, of Carbondale, Illinois, was indicted by a federal grand jury on February 5, 2015, on a federal charge stemming from a murder threat directed toward a Social Security Administration employee in Carbondale, Illinois, on January 27, 2015. A conviction on this charge of Influencing Federal Official by Threat carries maximum penalties of ten years in federal prison, three years supervised release, a $250,000 fine and a $100 special assessment.

Authorities arrested Vizcarrondo in Carbondale on February 5, 2015. The United States District Court for the Southern District of Illinois in Benton ordered that Vizcarrondo be held without bond pending his trial, which has yet to be set.

An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.

This case was investigated by the Federal Protective Service and the Social Security Administration, Office of the Inspector General. Assistance was provided by the Carbondale Police Department. The case is being prosecuted by Special Assistant United States Attorney John C. Constance.
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Canadian Man Sentenced to 262 Months in Prison for $130 Million Ponzi Scheme
Northern District of California
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SAN FRANCISCO – On February 4, 2015, William Wise was sentenced to 262 months in prison for a Ponzi scheme he perpetrated against over 1,200 victims who were seeking safe investments in certificates of deposit (CDs), announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.

Wise pleaded guilty on September 12, 2012. According to the Plea Agreement, Wise operated a scheme from at least as early as 1999 until approximately 2009 to sell CDs issued by three entities—Millennium Bank, United Trust of Switzerland, and Sterling Bank and Trust. Millennium Bank was a bank licensed in St. Vincent and the Grenadines, and was represented to be a wholly-owned subsidiary of United Trust of Switzerland, which was purportedly a private financial services company in Switzerland.

CDs were sold primarily out of offices established by Wise in Napa, Calif., and Raleigh, North Carolina, and staffed by various salespeople overseen by Wise. CD purchasers were told that Sterling Bank and Trust was an international private bank managed and administered in Switzerland. Millennium Bank, United Trust of Switzerland, and Sterling Bank and Trust were all controlled by Wise, though he enlisted others to aid him in selling CDs to his victims.

The CDs issued by Millennium Bank, United Trust of Switzerland, and Sterling Bank and Trust all promised CD purchasers safe investments with guaranteed rates of return—sometimes over 16%—that were allegedly based on overseas investments. In fact, CD purchasers’ funds were not used for overseas investments that generated the promised returns. The funds were instead primarily used to enrich Wise and to make interest payments to earlier CD purchasers. According to the Plea Agreement, Wise caused the sale of more than $129.5 million worth of fraudulent CDs from 2004 to 2009, causing investors to suffer actual losses of more than $75 million. He spent approximately $50 million himself, purchasing, among other things, a private plane and a luxury property in St. Vincent and the Grenadines.

Wise, 64, previously of Raleigh, North Carolina, was indicted by a federal grand jury on February 21, 2012, with one count of conspiracy, in violation of 18 U.S.C. § 1349; twelve counts of mail fraud, in violation of 18 U.S.C. § 1341; three counts of wire fraud, in violation of 18 U.S.C. § 1343; and one count of money laundering, in violation of 1957. Wise was also charged in a separate indictment originating the Eastern District of North Carolina with one count of tax evasion, in violation of 26 U.S.C. § 7201. Wise pleaded guilty to all counts.

The sentence was handed down by the Honorable Edward M. Chen, U.S. District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release, and scheduled a hearing for April 22, 2015, at 2:30 pm, to determine a restitution amount. The defendant is in custody and will begin serving the sentence immediately.

Benjamin Kingsley and Robin Harris are the Assistant U.S. Attorneys in the Northern District of California who are prosecuting the case, with the assistance of Beth Margen and Jessica Meegan. Assistant U.S. Attorney Evan Rikhye handled the charge that originated in the Eastern District of North Carolina. The prosecution is the result of a joint investigation with the IRS-Criminal Investigation and the Federal Bureau of Investigation.
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California Woman Arrested on Federal Heroin and Methamphetamine Trafficking Charges
District of New Mexico
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ALBUQUERQUE – Graciela Meraz, 38, of Chula Vista, Calif., entered a not guilty plea this morning in federal court in Albuquerque, N.M., to a criminal complaint charging her with heroin and methamphetamine trafficking offenses. Meraz remains in custody pending trial which has yet to be scheduled.

Meraz was arrested on Feb. 4, 2015, and was charged with possession of heroin and methamphetamine with intent to distribute. According to court documents Meraz was arrested by DEA agents at the Greyhound Bus Station in Albuquerque after a consensual search of her baggage revealed that she was carrying more than a kilogram of heroin and more than four kilograms of methamphetamine.

If convicted on the charges in the criminal complaint, Meraz faces a maximum statutory sentence of not less than ten years and not more than life in prison. Charges in criminal complaints are merely accusation, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.

This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Nicholas J. Ganjei is prosecuting the case.

This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
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California Meth Supplier Found Guilty in U.S. District Court
District of Montana
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A federal jury in Billings convicted Mario Albert Villegas, a 32 year-old resident of Los Angeles, California, of Conspiracy to Possess Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. § 846, and Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. § 841(a)(1) and 18 U.S.C. § 2. U.S. District Judge Susan Watters set Villegas’s sentencing for June 11, 2015.

Prosecutors presented evidence that in September of 2013, agents from the Federal Bureau of Investigation, Internal Revenue Service, Montana Division of Criminal Investigations, Department of Homeland Security and Eastern Montana HIDTA in Billings, Montana began investigating a drug trafficking organization headed by Casey Fleming and Jason Neel responsible for shipping methamphetamine from California to the Billings and Roundup, Montana areas. Fleming was a Taft, California, resident and Neel was incarcerated at the California State Prison in Corcoran, California, where he continued to run the organization from behind bars. Initially, agents introduced an undercover agent into the organization who made controlled purchases of methamphetamine from Fleming and other distributors in Montana. Between January 23, 2014, and March 22, 2014, the Court authorized the interception and recording of conversations from the phones of Fleming, Neel, and another co-conspirator. During the course of the wiretap investigation, agents intercepted numerous calls between Fleming and Neel in which they detailed their plans to obtain methamphetamine from sources of supply in California and have it shipped to Montana.

During the trial, the government introduced numerous conversations between Fleming and Villegas in which Villegas planned to sell methamphetamine to Fleming. The evidence established that Villegas sold Fleming one pound of methamphetamine to Fleming in December of 2013 and Villegas arranged for a drug courier to provide Fleming with two pounds of methamphetamine at a McDonald’s in Taft, California on January 23, 2014. The evidence showed that Villegas also had a drug courier provide Fleming with one pound of methamphetamine at the Camarillo Outlets in Camarillo, California.

Prosecutors presented evidence that Fleming had other sources ship the methamphetamine through the mail to a residence in Roundup. Once the methamphetamine arrived in Roundup, Fleming instructed distributors in Montana to sell the methamphetamine and deposit the proceeds of the sale of methamphetamine into his bank account. Fleming described that the methamphetamine he purchased from Villegas was “fronted,” that is, Fleming first obtained the methamphetamine from Villegas and then paid Villegas the full amount he owed with the proceeds of the sale of the meth. Several co-conspirators from both California and Montana testified at trial and explained their role in the shipment of methamphetamine from California to Montana. Fleming and other co-conspirators in California identified Villegas as the main source of supply for the organization’s methamphetamine from December of 2013 through February of 2014. The government also called several agents and law enforcement officers from Montana and California who surveilled and monitored the narcotics transactions.
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Broward County Residents Plead Guilty to Accessory After the Fact in Violent Armed Carjacking Spree and Homicide
Southern District of Florida
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Two Broward County residents pled guilty to one count of accessory after the fact for their respective roles in assisting carjacker evade law enforcement.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.

According to the criminal information and statements made in court, between December 2, 2014 and December 3, 2014, Tequilla Ingram, 33, and Jonathan Marion, 23, both of Ft. Lauderdale, Florida, assisted Gregory Moore with evading law enforcement after he committed a violent armed carjacking spree and a homicide.

On December 2, 2014, Gregory Moore, 35, of Ft. Lauderdale, Florida, carjacked numerous vehicles in order to get to his former girlfriend’s place of employment in Hallandale Beach, Florida. Once he arrived in Hallandale Beach and located his former girlfriend inside of her vehicle, Moore opened fire striking her multiple times and killing her passenger. Moore committed several additional carjackings to flee the scene and was eventually apprehended by the FBI in West Palm Beach on December 3, 2014.

Gregory Moore was charged by indictment and is currently set for trial April 6, 2015 before U.S. District Court Judge Kenneth Marra in West Palm Beach, Florida.

Knowing that Moore had committed these crimes, Ingram picked Moore up in her vehicle, provided him with a safe haven, and checked Moore into a hotel room the night of December 2, 2014 using a false name. Ingram returned to retrieve Moore on December 3, 2014 and further assisted him in evading law enforcement until Moore was ultimately arrested. Ingram pled guilty today before U.S. District Judge Beth Bloom, and is scheduled to be sentenced on April 24, 2015, at 10:30 a.m.

Knowing that Moore had committed these crimes, Marion provided Moore with use of a cellular phone and safe haven for several hours while law enforcement conducted a massive manhunt. Marion pled guilty on January 27, 2015 before U.S. District Judge James Cohn, and is scheduled to be sentenced on April 24, 2015, at 9:00 a.m.

At sentencing, Ingram and Moore face up to 15 years in prison on the accessory after the fact count.

Mr. Ferrer commended the investigated efforts of the FBI South Florida Violent Crimes Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Broward Sherriff’s Office, Hallandale Beach Police Department, Florida Highway Patrol, West Palm Beach Police Department and Lauderhill Police Department. The case is being prosecuted by Assistant U.S. Attorney Jodi Anton.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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Brothers with Springfield, Joplin, Webb City Businesses Plead Guilty to $6.7 Million K2 Conspiracy
Western District of Missouri
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SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two brothers who owned businesses in Springfield, Joplin and Webb City, Mo., pleaded guilty in federal court today to their roles in a $6.7 million conspiracy that involved the distribution of approximately 2,253 kilograms of synthetic marijuana, commonly referred to as K2.

Jeremy W. Elliott, 42, of Rogers, Ark., and his brother, Travis L. Elliott, 38, of Springfield, Mo., pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to conspiracy to commit mail fraud.

Travis Elliott was the registered agent of “A Head of Our Times, LLC.,” which ran a retail store in Springfield. He employed a manager and others at this store. Jeremy Elliott was the owner of “Mr. Nice Guy,” which operated retail locations in Joplin and Webb City.

Both Travis and Jeremy Elliott admitted they engaged in a conspiracy between Oct. 29, 2009, and Nov. 6, 2012, to distribute (via FedEx) Kryp2nite products, which were falsely labeled as “incense” and “not for human consumption,” but in reality contained synthetic marijuana that was intended for human consumption as a drug. Conspirators manufactured and distributed K2 to retail outlets in Springfield, Joplin, Webb City and elsewhere through a Springfield business, ThirdEye, Inc.

Joplin police officers seized Kryp2nite products from the “Mr. Nice Guy” store in Joplin on two occasions, including a seizure of 21.7 kilograms of synthetic marijuana on May 7, 2012.

Law enforcement officers also executed a search warrant at the “Mr. Nice Guy” store in Webb City on May 7, 2012. Records seized during the execution of the search warrant indicated that during the month of March 2012, the Webb City store sold $205,675 in inventory. Records indicated that during April 2012 the store sold $146,204 in inventory. Approximately 10.7 kilograms of synthetic marijuana was seized.

An employee at the Webb City location told officers that she knew people were ingesting the synthetic marijuana products she sold to them. She stated that employees were instructed not to sell synthetic marijuana to customers who overtly spoke of ingesting these products. This employee also admitted to smoking these products to get high.

Springfield police officers made undercover purchases of K2 from “A Head of Our Times” in Springfield. On June 12, 2012, police officers executed a search warrant at the business and seized approximately two kilograms of Kryp2nite, as well as records documenting the purchase and delivery of synthetic marijuana.

Officers observed signage in the store that read, “Incense, Sachets and Potpourri Blends are not for human consumption!” and “Talk of smoking it or otherwise using it illegally will result in the loss of the sale and you may be asked to leave. Thank you! @.” The products labeled as incense were located in proximity to smoking devices such as bongs and vaporizers.

Both Travis and Jeremy Elliott received shipments of Kryp2nite products from ThirdEye, a Springfield business owned by co-defendants Douglas K. Franklin, 56, and his son, Brandon D. Franklin, 28, both of Springfield, who also have pleaded guilty to their roles in the mail fraud conspiracy. Douglas and Brandon Franklin also pleaded guilty to participating in a money-laundering conspiracy related to conducting financial transactions involving the proceeds of unlawful activity, which were designed to conceal or disguise the nature, location, source, ownership and control of the proceeds.

Charges against Douglas Franklin’s daughter, Caitlyn E. Franklin, 26, of Springfield, were dismissed following a pre-trial diversion agreement. Co-defendant DeWayne T. Barnhart, 38, of Joplin, who managed the Webb City store, pleaded guilty to receiving and distributing misbranded drugs and was sentenced to a term of probation.

Under federal statutes, Travis and Jeremy Elliott are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

These convictions are the result of a large-scale investigation by local, state and federal law enforcement agencies into the distribution of K2, the slang term for synthetic marijuana products. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.

This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the FDA Office of Criminal Investigations, IRS-Criminal Investigation, the Jasper County Drug Task Force, the Jasper County, Mo., Sheriff’s Department, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the South Central Drug Task Force, the Missouri State Highway Patrol, the Springfield, Mo., Police Department, the Newton County, Mo., Sheriff’s Department and the Greene County, Mo., Prosecuting Attorney’s Office.
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Bradley County Man Sentenced to 262 Months for Aiding and Abetting the Distribution of Methamphetamine
Eastern District of Tennessee
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CHATTANOOGA, Tenn. – Timothy Joe Swallows, 39, of Cleveland, Tenn., was sentenced on Feb. 6, 2015, by the Honorable Curtis L. Collier, U.S. District Judge, to serve 262 months in prison. Swallows pleaded guilty in July 2014 to a federal indictment charging him with, among other things, aiding and abetting the possession with intent to distribute 50 grams or more of methamphetamine (actual).

According to the information on file with the U.S. District Court, on June 17, 2012, Timothy Swallows was taken into custody after a routine traffic stop in Bradley County revealed he was driving on a revoked license. The passenger in the vehicle, Amber Flowers, was also taken into custody on an outstanding warrant for her arrest. During the stop, two large bags of methamphetamine were recovered from Flowers. A subsequent search of the vehicle revealed syringes, digital scales, seven cell phones, cut straws, and $1,404 in cash. The amount of methamphetamine seized totaled 84.7 grams with a 94.3% purity level. Swallows stated he was helping Flowers sell the methamphetamine that was seized following the traffic stop. Flowers previously pleaded guilty to the same offense and was sentenced to serve 77 months in prison.

Swallows was classified as a “career offender” under federal law because he had four prior drug trafficking convictions, including three separate convictions for distributing methamphetamine in Bradley County, Tennessee within the last 10 years. His federal sentence reflected his prior state convictions and the risk of harm his conduct posed to society. Judge Collier recommended that Swallows participate in a drug treatment program while he is in prison.

The indictment and subsequent conviction of Swallows was the result of an investigation conducted by the Drug Enforcement Administration and Bradley County Sheriff’s Office. Assistant U.S. Attorney Michael D. Porter represented the United States.
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Bloomfield Post Office Robber Gets Prison Sentence
Western District of Pennsylvania
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PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 35 months imprisonment, followed by three years supervised release, and restitution in the amount of $569 on his conviction of robbing a U.S. Post Office, United States Attorney David J. Hickton announced today.

United States District Judge Mark R. Hornak imposed the sentence yesterday on Joseph R. Filbert, 52.

According to information presented to the court, Dec. 14, 2011, Filbert robbed a U.S. Postal clerk at the Bloomfield Post Office of $569 in U.S. Currency, by flashing what appeared to be a gun and demanding money. Still photos from the Post Office surveillance camera, together with video from a surveillance camera at a nearby business, enabled Postal Inspectors to obtain positive identification of both the car Filbert was operating and of Filbert. Execution of a search warrant resulted in the recovery of the shoes Filbert is believed to have worn in the Post Office robbery.

Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Filbert.
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Banker Pleads Guilty to Embezzlement
Eastern District of Louisiana
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U.S. Attorney Kenneth A. Polite announced that FRANCES CARRINGTON, age 70, a resident of Ponchatoula, pled guilty today to a one-count Bill of Information for bank larceny.

According to court documents, CARRINGTON, who was employed as a branch operations officer at First Guaranty Bank in Ponchatoula, attempted to steal nearly $65,000, belonging to and in the care, custody, and control of First Guaranty Bank, a bank whose deposits are insured by the Federal Deposit Insurance Corporation.

CARRINGTON faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing for May 14, 2015.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Jon Maestri is in charge of the prosecution.

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Attorney General Holder Statement on the 2015 National Security Strategy
District not recorded
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Attorney General Eric Holder released the following statement today on President Obama’s 2015 National Security Strategy:

“With the 2015 National Security Strategy, President Obama has laid out a credible and timely vision of strong and sustainable American leadership on a global scale. This strategy is predicated on strength, both at home and around the world, and founded on the timeless values the American people have always held sacred. In concert with our global partners – through patience, persistence, and a clear sense of purpose – this strategy will drive our efforts to confront threats, to reduce risks, and to advance our core interests of security, prosperity, and a rules-based international order.”
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Asst. Bank Branch Manager Sentenced to Prison for Embezzling Funds
Western District of Pennsylvania
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PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 6 months’ imprisonment with three years of supervised release on her conviction of bank embezzlement, United States Attorney David J. Hickton announced today.

Chief United States District Judge Joy Flowers Conti imposed the sentence on Diana Phillips, 41.

According to information presented to the court, Phillips was an Assistant Branch Manager and Head Teller at First National Bank. Over a period of roughly three years from 2008-2011, Phillips embezzled approximately $120,000 from the bank by processing fictitious general ledger transactions, making it appear in bank records as though she was processing refunds to bank customers. The defendant then deposited the funds into an account owned by a family member and later transferred the money from the family member's account into accounts controlled by her and/or her husband.

Prior to imposing sentence, Judge Conti stated that the defendant’s embezzlement extended over a long period of time and was methodical and continuous.

Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Phillips.
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Allentown Man Sentenced to More Than 24 Years for Sex Trafficking
Eastern District of Pennsylvania
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PHILADELPHIA - Deshawn King, 35, of Allentown, PA, was sentenced today to years 293 months in prison for running a sex trafficking operation, incorporating heroin as a means of punishing and controlling the victims. King pleaded guilty on January 10, 2014 to conspiracy to commit sex trafficking of women by force, fraud, and coercion; two counts of sex trafficking by force, fraud, or coercion; and two counts of attempted sex trafficking by force, fraud, and coercion. King’s co-defendant, Daniel Blount, also pleaded guilty and was sentenced on July 15, 2014 to 20 years in prison.

Between October 2012 and April 2013, King and Blount recruited and enticed heroin-addicted women to perform commercial sex acts at their direction by promising a continuous supply of money and heroin. The defendants used the website “backpage.com” to post sexually explicit photos of the women in advertising them for commercial sex acts. “Johns” (men wanting to have sex with the recruited women) called the telephone number posted in the ad and met the women at hotels designated and paid for by the defendants. King and Blount provided heroin to the women as a means of control or withheld the heroin as a form of punishment, causing the women to suffer withdrawal; used physical force, including a taser, and threats of force against the women to cause or attempt to cause them to continue performing commercial sex acts; and received and kept all the proceeds generated by the women engaging in commercial sex acts. The defendants also threatened to kill at least two of the victims and took turns raping at least one of the victims.

In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered 15 years of supervised release, a $1,000 fine and a $500 special assessment.

The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from the Allentown Police Department and the Office of the Lehigh County District Attorney. It was prosecuted by Assistant United States Attorney Sherri A. Stephan.
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Thursday 5 February 2015

Vidalia, Georgia Attorney Indicted on Federal Fraud and Identity Theft Charges
Southern District of Georgia
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Savannah, GA: Wilson R. Smith, 63, a licensed attorney from Vidalia, Georgia, was indicted this week by a federal grand jury sitting in Savannah on charges related to an alleged scheme to settle his clients’ cases without their knowledge and to steal the settlement proceeds. The indictment alleges that Smith stole over $1 million in fraudulently obtained settlement proceeds.

Smith faces federal charges of mail fraud and bank fraud. If convicted of those two charges, Smith faces a maximum sentence of 50 years in prison and a $1,250,000 fine. Smith also faces a count of aggravated identity theft. If convicted of that charge, Smith would receive an additional two-year prison sentence, consecutive to any other sentence imposed. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Smith already faces state charges of theft by deception and forgery. Smith’s state case was investigated by the Georgia Bureau of Investigation and is being prosecuted by District Attorney Hayward Altman of the Middle Judicial Circuit. Since his arrest on state charges, Smith has remained in custody at the Toombs County Jail.

First Assistant United States Attorney James D. Durham is prosecuting the federal case on behalf of the United States. The investigation of this case remains ongoing.
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Unregistered Sex Offender Sentenced to Prison
Southern District of Alabama
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United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Dennis James Harper Jr., 51, of Pine Hill, Alabama, was sentenced to a year and a day in prison for failing to register as a sex offender. Harper was also sentenced to five years of supervision by the United States Probation Office upon his release from custody.

Harper was required to register as a sex offender as a result of a 1997 conviction for Sexual Abuse, First Degree from Coffee County. As part of his guilty plea, Harper admitted that he moved to Massachusetts four days after his last registration as a sex offender in 2012. After he moved to Boston, Harper never notified Alabama authorities of his new location, nor did he register as required in Massachusetts.

The case was investigated by the United States Marshals Service and prosecuted by Special Assistant United States Attorney Dominic Rossetti.
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Una Pareja De Roseville Se Declara Culpable De Un Fraude De Modificacion De Prestamo Y Rescate De Ejecucion Hipotecario Dirigido A La Comunidad De Habla Hispana
USAO - California, Eastern (español)
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40 acusados de delitos federales por armas de fuego en los condados de Fresno, Tulare y Madera en el 2013; sentenciados a prisión federal en el 2013

SACRAMENTO, Calif. —Martin Wayne Flanders, 50, anteriormente de Roseville, y Ligia Sandoval Spafford, 48, de Roseville, se declararon culpables hoy de fraude por correo por su participación en un esquema de fraude dirigido a propietarios en dificultades, anunció Benjamín Wagner, procurador federal del Distrito Oriental de California.

De acuerdo con documentos del tribunal, entre 2008 y 2010, Flanders facturó a clientes tarifas adelantadas a cambio de un número de servicios financieros, incluyendo modificaciones de préstamo, auditorías de préstamo de hipoteca, reparación de créditos, alivio de deudas, solicitud de bancarrota, y un programa para vender casas a “inversores” con una opción de alquiler con derecho a compra. Flanders y Sandoval comercializaron estos servicios a propietarios en dificultades económicas con particular énfasis a aquellos de habla hispana. Durante un programa de radio transmitido dos veces a la semana por Radio Luz, una estación de radio cristiana de habla hispana en la Bay Area, Sandoval promocionó los servicios que ella y Flanders ofrecían. Flanders también se anunció en una estación de televisión de habla hispana, Univision, y en revistas hispanas. Aproximadamente un 98% de los clientes de los demandados eran de origen hispano, algunos de los cuales hablaban muy poco o nada de inglés. Sandoval habla español; Flanders no lo habla.

Flanders y Sandoval hicieron numerosas declaraciones falsas a inversores sobre el éxito de los programas que ofrecían o reembolsos que estarían disponibles si los programas no tenían éxito. “Ofertas fantasma” – ej., ofertas ficticias de comprar la propiedad de la víctima a través de ventas ràpidas – y “quiebras esqueleto” – ej., simulaciones de peticiones de bancarrota que fueron desechadas ràpidamente por el tribunal de bancarrotas – también fueron usadas por Flanders o Sandoval para tratar de retrasar el proceso de ejecución hipotecaria. Al menos de 25 a 30 personas pagaron por los servicios y no los recibieron o no recibieron los reembolsos cuando los programas fallaron en entregar los reembolsos prometidos. El total de pérdidas para las víctimas es al menos de $120,000. Algunos propietarios que no fueron capaces de obtener ayuda fueron embargados por sus prestamistas.

“Flanders y Sandoval se aprovecharon de las víctimas con escasos conocimientos de inglés, cuando esas víctimas eran màs vulnerables financieramente,” dijo Benjamín Wagner, procurador federal del Distrito Oriental de California. “Esquemas de este tipo de fraude predador han sido y continuaràn siendo uno de los focos principales de nuestros esfuerzos en procesar fraudes con hipotecas.”

Este caso es el producto de una investigación por la Oficina Federal de Investigación. El procurador federal asistente Todd A. Pickles està procesando el caso.

Flanders ha estado detenido desde su arresto en octubre de 2012. Sandoval està actualmente libre de custodia.

Flanders y Sandoval estàn programados para ser sentenciados por el Juez de Distrito de los Estados Unidos Troy L. Nunley el 11 de junio de 2015. Flanders y Sandoval se enfrentan a una pena màxima reglamentaria de 20 años en prisión y una multa de $250,000. La sentencia actual, sin embargo, serà determinada a discreción del tribunal después de considerar cualquier factor reglamentario aplicable y las Directrices Federales de Sentencia, que toman en consideración un número de variables.
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Two Former Japanese Automobile Parts Manufacturer Executives Indicted for Roles in Conspiracy to Fix Prices and for Obstruction of Justice
District not recorded
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A Detroit federal grand jury returned a two-count indictment against two former executives of a Japanese automotive parts manufacturer for their participation in a conspiracy to fix prices and rig bids of automotive parts and for obstruction of justice for ordering the destruction of evidence related to the conspiracy, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiroyuki Komiya and Hirofumi Nakayama, former executives of Mitsuba Corporation, with conspiring to fix the prices of various automotive parts, including windshield wiper systems and components, sold to Honda Motor Company Ltd., Nissan Motor Co. Ltd., Toyota Motor Corp., Chrysler Group, LLC, Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries in the United States and elsewhere.

Komiya and Nakayama are also charged with knowingly and corruptly persuading, and attempting to persuade, employees of Mitsuba to destroy documents and delete electronic data that may contain evidence of antitrust crimes in the United States and elsewhere.

“These charges demonstrate the Antitrust Division’s continued commitment to prosecuting individuals who commit criminal antitrust violations,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s Criminal Enforcement Program. “Because these same individuals committed the additional crime of obstructing the investigation, they also serve as cautionary tale for those who are tempted to try to thwart the Antitrust Division’s investigative activities by destroying evidence.”

Komiya participated in the conspiracy as Mitsuba Director of Automotive Sales. In 2007, he was promoted to Executive Managing Officer and Vice President of Sales. Nakayama was the Office Manager of Mitsuba’s Nagoya sales office. In 2005, he was promoted to Sales Operating Officer.

The indictment alleges, among other things, that beginning at least as early as April 2000 and continuing until at least February 2010, Komiya, Nakayama and co-conspirators participated in and directed, authorized or consented to the participation of subordinate employees in, meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the price to be submitted to automobile manufacturers. Upon learning of the existence of this investigation, Komiya and Nakayama also urged their subordinates to delete and destroy documents related to this collusion.

Mitsuba is a corporation organized and existing under the laws of Japan with its principal place of business in Gunma, Japan. On Nov. 6, 2013, Mitsuba pleaded guilty and agreed to pay a $135 million criminal fine for its role in the conspiracy as well as obstruction of justice.

Including Komiya and Nakayama, 52 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry. Additionally, 33 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.

Komiya and Nakayama are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. The maximum penalty for obstruction of justice is 20 years in prison and a $250,000 criminal fine for individuals.

Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.

Komiya et al Indictment
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Two Former Danbury Residents Involved in U.S. Postal Money Order Fraud Scheme Are Sentenced
District of Connecticut
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two former residents of Danbury were sentenced yesterday in Hartford federal court for participating in a conspiracy involving the theft of monies from the U.S. Postal Service. U.S. District Judge Michael P. Shea sentenced TONY STERLIN CANTAVE, 34, to 13 months of imprisonment, followed by two years of supervised release, and VENUS VERGES, 34, to three years of probation, during which she must perform 100 hours of community service.

According to court documents and statements made in court, between August and October 2013, CANTAVE and VERGES purchased U.S. Postal Service money orders in amounts ranging from $400 to $1000 at post offices in Stamford, Bridgeport, Greenwich, and lower Westchester County, N.Y. After the money orders were purchased, the defendants used a mobile banking application to deposit the funds into bank accounts they controlled. Shortly after depositing the funds, the defendants returned to the post offices from which the respective money orders had been purchased, failed to disclose that they had deposited the funds, returned the money orders and were refunded their money.

CANTAVE and VERGES stole approximately $12,300 from the U.S. Postal Service during the course of this scheme.

CANTAVE and VERGES were arrested on June 20, 2014. On August 20, 2014, CANTAVE pleaded guilty to one count of conspiracy to convert public money and two counts of conversion of public money, and VERGES pleaded guilty to one count of conspiracy to convert public money and one count of conversion of public money.

Judge Shea ordered both defendants to pay full restitution.

This matter was by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney John H. Durham.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]
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Two Former Bridgeport Police Officers Sentenced to Prison for Using Unreasonable Force During Arrest
District of Connecticut
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Deirdre M, Daly, United States Attorney for the District of Connecticut, announced that two former Bridgeport Police officers were sentenced today in Bridgeport federal court for violating an individual’s civil rights by using unreasonable force during the course of an arrest. U.S. District Judge Jeffery Alker Meyer sentenced both ELSON MORALES, 43, and JOSEPH LAWLOR, 41, to three months of imprisonment and six months of supervised release.

According to court documents and statements made in court, on May 20, 2011, officers MORALES and LAWLOR engaged in a high speed chase of a van driven by an individual who was suspected of having a firearm and had failed to stop at traffic stop. After a further foot pursuit in Beardsley Park in Bridgeport, the individual was apprehended by MORALES who used his department-issued Taser to incapacitate the individual. Despite the fact the individual was on the ground and effectively incapacitated by the initial use of the Taser, MORALES deployed the Taser a second time and LAWLOR kicked the individual several times.

“The use of unreasonable force is illegal,” stated U.S. Attorney Daly. “When a police officer uses unreasonable force, he both violates the victim’s civil rights and undermines the community’s trust in law enforcement. The vast majority of Bridgeport Police Department members, and all law enforcement officers, are public servants who dedicate their lives to protecting the public. However, any police officer who crosses the line during an arrest risks federal prosecution and, as this case demonstrates, incarceration.”

On June 10, 2014, MORALES and LAWLOR each pleaded guilty to one count of deprivation of rights under color of law.

MORALES and LAWLOR have resigned from the Bridgeport Police Department.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Anastasia E. King and David E. Novick.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]
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Two Correctional Officers, Two Inmates and A Jail Contract Employee Convicted in Baltimore Jail Racketeering Conspiracy
District of Maryland
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Baltimore, Maryland – A federal jury convicted five defendants today for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC):

Former Correctional Officers:
Ashley Newton, age 31, of Baltimore, and
Travis Paylor, age 27, of Baltimore.

Inmates:
Joseph Young, a/k/a Monster, age 32, of Baltimore, and
Russell Carrington, a/k/a Rutt, age 34, of Baltimore.

Former Contract employee with DPSCS:
Michelle McNair, age 24, of Baltimore.

Young, McNair and Newton were also convicted of money laundering conspiracy. The jury acquitted former correctional officers Clarissa Clayton, age 25, of Brooklyn Park, Maryland; Riccole Hall, age 27, of Glen Burnie; and Michelle Ricks, age 45, of Edgewood, Maryland of all charges.

The convictions 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 Mosby.

“This case exposed rampant crime and corruption inside jailhouse walls, which spawns more crime in the streets,” said U.S. Attorney Rod J. Rosenstein. “Continued vigilance will be needed to make sure that jails help prevent crime instead of facilitating it.”

This case was 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 court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

According to evidence presented at trial, Newton and Paylor were correctional officers (COs) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. In return, the COs received payments, gifts or a share of the profits.

According to trial evidence, Newton had sexual relationships with two BGF inmates, and smuggled pills, marijuana and tobacco for Duron Young, a/k/a Pinkey. During the conspiracy, Newton smuggled pills for Pinkey almost daily. She also opened cells doors of inmates for BGF members, which resulted on at least one occasion in the beating of an inmate by the BGF. Newton also warned the BGF of upcoming prison searches by correctional officers. Newton arranged for money to be sent to inmates and facilitated phone conversations between inmates, including calls from other prisons to BGF leader Tavon White.

In 2012, Michelle McNair, who worked in a jail kitchen as a contract employee, smuggled marijuana, pills and other contraband into BCDC to repay BGF leader Tavon White and in exchange for Green Dot transfers of funds. McNair also smuggled marijuana to BGF inmate Jamar Anderson inside BCDC. McNair also transferred contraband from one facility to another within the jail.

Evidence presented at trial showed that Young was a high-ranking BGF member, and a rival of Tavon White within BGF while he was incarcerated at BCDC beginning in early 2012. Young was expected to replace Tavon White as BGF’s leader inside the jail. In October and November 2012, Young sold marijuana, prescription pills, cell phones and tobacco that correctional officers smuggled into the jail. Young directed another inmate, Cyrus Beads, to buy marijuana at $350 an ounce and package it in one-gram bags, which he would sell for $50 inside BCDC. Young explained that they would make a $1,050 profit from each ounce. Young had a romantic relationship with Raylanair Reese, age 32, who lived outside the jail and supplied Young with cell phones and Percocet pills. Reese pled guilty earlier.

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. McNair also helped Carrington with is drug operations, but quit after Carrington failed to pay her.

The defendants face a maximum penalty of 20 years in prison for the racketeering and drug conspiracies. Young, McNair and Newton also face a maximum sentence of 20 years in prison for the money laundering conspiracy. Their sentencings have not been scheduled.

Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; eight defendants went to trial and one defendant has died.

BGF leader Tavon White, age 37, previously pleaded guilty to his participation in the racketeering conspiracy and testified at the trial. He is scheduled to be sentenced on February 9, 2015 at 11:00 a.m. Another BGF inmate, Derius Duncan, age 24 of Baltimore, is scheduled to be sentenced on February 11, 2015 at 11:00 a.m.

BGF members Jamar Anderson a/k/a “Hammer,” and Kenneth Parham, both age 24; and Jermaine McFadden, age 25, an associate of BGF; also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison, McFadden was sentenced on March 12, 2014 to 140 months and Steven Loney, who was the BGF commander of the North Building of the jail was sentenced on January 14, 2014 to nine years in prison.

To date, at least eight of the correctional officers have been sentenced to up to 42 months in prison. Chania Brooks, age 29, of Baltimore, is scheduled to be sentenced tomorrow, February 6, 2015.

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 are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Tonya Jennissen Sentenced to 30 Months in Prison and 5 Years of Supervised Release for Possession of Child Pornography
District of Vermont
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The Office of the United States Attorney for the District of Vermont stated that Tonya Jennissen, 37, of Claremont, New Hampshire was sentenced to 30 months in prison, having pled guilty to one count of possessing child pornography. United States District Judge Geoffrey W. Crawford, sitting in Rutland, also sentenced Jennissen to 5 years of supervised release.

Court records indicate that, in 2012, Jennissen engaged in an online sexual relationship with a 15-year-old Vermont boy that lasted about two months. In the course of the relationship, Jennissen and the victim engaged in an internet Skype session, which resulted in the creation of sexually explicit images of the victim. These images led to Jennissen=s conviction. The relationship ended when the victim=s father reviewed his son=s computer records, discovered the relationship, and reported the matter to Vermont law enforcement. Law enforcement searched Jennissen=s New Hampshire residence and seized her computer. Search of that computer revealed, among other things, images of unidentified nude infants and toddlers. The computer also contained a collection of anime depicting adults sexually assaulting young children.

For her crime, Jennissen faced a maximum penalty of 10 years in prison, and up to a $250,000 fine. In sentencing Jennissen, Judge Crawford cited the need to eliminate adult-child sexual contact via the internet and the dangers associated with such sexual contact.

The investigation was led by the Federal Bureau of Investigations and the Chittenden Unit for Special Investigations. Assistant United States Attorney Christina E. Nolan prosecuted the case. Jennissen is represented by Steven Barth, Esq., of the Federal Public Defender=s Office.

This prosecution was part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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TSA Employee Indicted on Child Pornography Charges
Eastern District of Arkansas
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LITTLE ROCK –A Transportation Security Administration employee has been indicted on child pornography charges. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Raymond Kinney, age 54, of Jacksonville, a Transportation Security Inspector for the TSA, was indicted by a federal grand jury on February 4, 2015, on one count of distribution of child pornography.

Kinney was arrested on Wednesday, January 28, when he drove to meet two minors with whom he planned to have sex, according to online chats that were recovered from his account. A search incident to arrest revealed that Kinney had brought sex toys and children’s clothing with him.

According to the criminal complaint, this investigation began in January 2015, when undercover officers were monitoring a social networking site and encountered an individual seeking a minor for sexual contact. Through further conversations, this individual sent several pictures and videos of child pornography over the internet. They ultimately arranged a meeting at a motel, and when Raymond Kinney arrived, officers arrested him.

The indictment alleges that on or about January 27, 2015, Kinney knowingly distributed child pornography. If convicted, Kinney faces at least five but not more than twenty years of imprisonment, up to a $250,000 fine, and five years of supervised release.

The investigation was conducted by Homeland Security Investigations with substantial assistance from local task force officers. The case is being prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.

The charges set forth in an Indictment are allegations. The defendant is presumed innocent until proven guilty.
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Summerville Man Sentenced to 12 Years in Federal Prison
District of South Carolina
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Contact Person: Nick Bianchi (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Hadden Andre Smith was sentenced today in federal court in Charleston, South Carolina, for conspiracy to possess with intent to distribute cocaine and marijuana, a violation of 21 U.S.C. § 841; possession of firearms in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c); and conspiracy to launder money, a violation of 18 U.S.C. § 1956. United States District Judge David C. Norton of Charleston sentenced Smith to 12 years imprisonment to be followed by 4 year supervised release. Smith also agreed to forfeit over $248,000 that authorities seized from his residence.

Evidence presented at the change of plea hearing established that on July 31, 2012, upon executing a search warrant at Smith's residence, Berkeley County Sheriff's Office Deputies found approximately $248,000 cash, 1.8 kilograms of marijuana, two firearms and drug packaging paraphernalia. Further investigation by the Internal Revenue Service Criminal Investigations Division revealed that Smith used drug proceeds to purchase several vehicles, while having the vehicle titles put in the name of third parties.

IRS-CI Special Agent In Charge Thomas J. Holloman stated, “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”

The case was investigated by agents of the Internal Revenue Service Criminal Investigations Division, Drug Enforcement Administration and Berkeley County Sheriff's Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Statement of Manhattan U.S. Attorney Preet Bharara on the Convictions of Malcolm Smith and Vincent Tabone
Southern District of New York
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“As the jury unanimously found, the give-and-take of the political process should not be the giving and taking of bribes, which is what Malcolm Smith and Vincent Tabone tried to make it. Smith gave, and Tabone took, a $25,000 cash bribe to permit Smith to run for New York City Mayor as a Republican. Smith and Tabone were not alone in this scheme – Smith also bribed Daniel Halloran, another Republican Party official. And sadly, this was just one of many pockets of corruption this Office has uncovered in New York, which has become the ‘show me the money’ state. It should not be asking too much to expect public officials at least to obey the law. This Office will continue the vigorous prosecution of political corruption until every public official understands that violating the public trust will likely land you in prison.”
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St. Thomas Man Sentenced to Federal Prison for Possession of Firearm
District of the Virgin Islands
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St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Carlos Jamoi Norman, 23, to 30 months in federal prison for possession of a firearm with an obliterated serial number, United States Attorney Ronald W. Sharpe announced.

On November 18, 2014, Norman pleaded guilty to a one-count indictment. Norman has been in custody since December 31, 2014.

According to documents filed in court, Norman was involved in an altercation in the Oswald Harris Court housing community during which shots were fired. When Virgin Islands police officers arrived at the scene, they were given descriptions of the persons discharging the firearms. Officers proceeded to go to each apartment to talk to the occupants. As officers approached the apartment in which Norman was located, he got up and ran. Norman was captured at the back door of the apartment. During a search of Norman, officers found a black holster on his waist. A search of the apartment revealed a Springfield Armory XD, .40 caliber handgun with an obliterated serial number.

In addition to a prison term, Norman was sentenced to three years of supervised release and ordered to pay a $100 special assessment.

The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by former Assistant U.S. Attorney Ishmael Meyers, Jr. and Assistant U.S. Attorney Nelson L. Jones.
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St. John Man Sentenced to 17 Months in Prison for Bank Fraud
District of the Virgin Islands
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St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Davidson L. Alfred, 54, of St. John, to 17 months in prison and two years of supervised release for bank fraud, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Alfred to serve his sentence consecutively to a 16-month sentence he received on January 29, 2015, for violating the conditions of his supervised release in another criminal case, United States v. Alfred, Criminal No. 12-cr-36. At the conclusion of Thursday’s sentencing hearing, Alfred was remanded to the custody of the United States Marshals Service to begin serving his sentence.

Court records show that Alfred pleaded guilty to count one of an indictment, which charged him with presenting for payment a forged check to Banco Popular de Puerto Rico in the amount of $2,500. As part of his guilty plea, Alfred also admitted that he presented additional forged checks drawn on the same account, totaling approximately $44,450.00.

The case was investigated by the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
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Somali Citizen Sentenced to 15 Years in Federal Prison for Conspiring to Provide Material Support to Al-Shabaab
District not recorded
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Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas, FBI Special Agent in Charge Christopher Combs and Chief Patrol Agent Rudolfo Karisch of the U.S. Border Patrol’s Del Rio Sector announced today that Abdinassir Mohamud Ibrahim was sentenced to 15 years in federal prison for conspiring to provide material support to Al-Shabaab, a designated foreign terrorist organization, and for making a false statement in an immigration matter.

Ibrahim, 43, a citizen of Somalia, was charged in a two-count superseding information, returned on July 31, 2014 and unsealed today in San Antonio, and pleaded guilty to both counts of the information on July 31, 2014. Ibrahim admitted that from about May 18, 2010, to about Jan. 31, 2014, he knowingly conspired to provide material support and resources, specifically sending emails enlisting support for al-Shabaab and making a cash payment to a known member of al-Shabaab for the benefit of the organization. Ibrahim knew at the time that al-Shabaab was designated by the United States as a foreign terrorist organization.

Ibrahim also pleaded guilty to making a false statement in an immigration matter. According to the information, Ibrahim knowingly lied in his application for naturalization as he had previously lied on his request for refugee status, falsely claiming that he was of a member of the minority Awer clan in Somalia and subject to persecution by the majority Hawiye clan. However, Ibrahim was actually a member of the Hawiye clan and not subject to persecution. Ibrahim also admitted he had lied on his naturalization application by having previously lied on his refugee application by falsely claiming that he had not provided material support to a terrorist group, when he had in fact provided material support in the form of cash to an al-Shabaab member.

The case was investigated by the FBI and the Border Patrol together as part of the San Antonio Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Mark Roomberg and Christina Playton for the Western District of Texas.
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Somali Citizen Sentenced to 15 Years in Federal Prison for Conspiring to Provide Material Support to Al-Shabaab
Western District of Texas
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This afternoon in San Antonio, 43-year-old Abdinassir Mohamud Ibrahim, a citizen of Somalia, was sentenced to 15 years in federal prison for conspiring to provide material support to Al-Shabaab, a designated foreign terrorist organization, and for making a false statement in an Immigration matter announced Assistant Attorney General for National Security John Carlin, Acting United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.

Ibrahim, 43, a citizen of Somalia, was charged in a two-count superseding information, returned on July 31, 2014 and unsealed today in San Antonio, and pleaded guilty to both counts of the information on July 31, 2014. Ibrahim admitted that from about May 18, 2010, to about Jan. 31, 2014, he knowingly conspired to provide material support and resources, specifically sending emails enlisting support for al-Shabaab and making a cash payment to a known member of al-Shabaab for the benefit of the organization. Ibrahim knew at the time that al-Shabaab was designated by the United States as a foreign terrorist organization.

Ibrahim also pleaded guilty to making a false statement in an immigration matter. According to the information, Ibrahim knowingly lied in his application for naturalization as he had previously lied on his request for refugee status, falsely claiming that he was of a member of the minority Awer clan in Somalia and subject to persecution by the majority Hawiye clan. However, Ibrahim was actually a member of the Hawiye clan and not subject to persecution. Ibrahim also admitted he had lied on his naturalization application by having previously lied on his refugee application by falsely claiming that he had not provided material support to a terrorist group, when he had in fact provided material support in the form of cash to an al-Shabaab member.

“Protecting Americans from the threat of terrorism both at home and abroad is the highest priority of this office, and today’s sentencing is yet another victory in that fight," said SAC Christopher Combs, San Antonio FBI. “FBI's Joint Terrorism Task Force (JTTF) is dedicated to investigating and vigorously prosecuting anyone who provides support or resources to terrorists or foreign terrorist organizations. We commend the hard work, dedication, and exceptional coordination of the local state and federal agencies assigned to the Joint Terrorism Task Force who made this case a success.”

“This conviction highlights the greater interagency cooperation that works to safeguard our communities against those that wish to do us harm,” said Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector. “I applaud the hard work and dedication of all the men and women who protect our country on a daily basis.”

The case was investigated by the FBI and the Border Patrol together as part of the San Antonio Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Mark Roomberg and Christina Playton for the Western District of Texas.
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Sentencings for February 5, 2015
District of Wyoming
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Abraham Cabrera-Bedolla, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 5, 2015, for illegal re-entry of a previously deported alien into the United States. Cabrera-Bedolla was arrested in Jackson, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.

Reyna Castillo-Hernandez, 38, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 5, 2015, for illegal re-entry of a previously deported alien into the United States. Castillo-Hernandez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
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Scranton Woman Arrested by Federal Agents for Unlawfully Acquiring Firearms
Middle District of Pennsylvania
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The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton woman was arrested by federal agents yesterday for making false representations in connection with the acquisition of firearms.

According to United States Attorney Peter Smith, a federal grand jury sitting in Scranton indicted Kimberly Royce, age 49, in October 2014 on two counts of making false statements to a federally licensed firearms dealer in Luzerne County to acquire firearms. The two-count indictment alleges that Royce obtained a 9mm pistol on January 30, 2013, and a .45 caliber pistol on March 29, 2013, and that she falsely represented that she was not purchasing them for another person and was not an unlawful user of a controlled substance. Royce surrendered to federal agents this morning.

The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Wilkes-Barre Police, and Kingston Police.

Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

In this case, the maximum penalty under the federal statute is 10 years imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Savannah Residents Charged with Conspiring to Engage in Sex Trafficking Children
Southern District of Georgia
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Savannah, GA: Jeremy Emmanuel Grant and Desalshia Adrien Williams, both 26 and from Savannah,were indicted by a federal grand jury today for their roles in an alleged conspiracy to engage in the sex trafficking of minors. The indictment alleges that from at least June 2014 to January 2015, Grant and Williams conspired to recruit, harbor, and transport minors to work as prostitutes in Savannah and elsewhere.

Grant and Williams are charged with one count of conspiracy to engage in sex trafficking of children. If convicted, Grant and Williams face a maximum possible sentence of life imprisonment. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The indictment of Grant and Williams arises out of an ongoing investigation conducted by the FBI, the Pooler Police Department, and Savannah-Chatham Metropolitan Police Department (SCMPD). Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, which is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.

Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
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