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25 March 2015
Canadian Antiques Dealer Sentenced to 30 Months in Prison for Smuggling Rhinoceros Horns, Elephant Ivory and CoralRead the Press Release
“Wildlife smuggling is a transnational crime that knows no borders and requires an international response,” said Assistant Attorney General Cruden. “Cooperation between the United States and Canadian law enforcement was crucial to cracking this case. The United States greatly appreciates the assistance of Environment Canada in bringing Guan to justice. International law enforcement collaboration is essential if we are to prevent elephant and rhino species from being extinguished in our own lifetime.”
“Trafficking in rhinoceros horns and elephant ivory poses a literally existential threat to these endangered or vulnerable species, who die a cruel, pointless death due to greed,” said U.S. Attorney Bharara. “These living creatures are not among us as a source of wanton plunder. Without strict enforcement of international agreements and U.S. laws, these extraordinary animals may disappear from the face of the earth. Tony Guan has learned the price of putting profit over the prolonged existence of rhinos and elephants.”
“The illegal trade in rhinoceros horns is the number one threat to many populations of African rhinos, and is driving the species towards extinction,” said U.S. Fish and Wildlife Director Dan Ashe. “The wholesale slaughter of these magnificent animals in the wild is taking place so a few callous individuals can line their own pockets. But global law enforcement cooperation through avenues such as the Fish and Wildlife Service’s Operation Crash is bringing people like Guan to justice, and we thank our Canadian and other international partners for the critical role they play in cases such as this. Together we will end the scourge of rhino horn and other wildlife trafficking.”
“The successful outcome of this investigation, and the ongoing success of Operation Crash, is another example of the strong collaboration that exists between Environment Canada’s Enforcement Branch, the U.S. Fish and Wildlife Service, and our partners in conservation enforcement agencies across Canada and the United States,” said Chief Enforcement Officer Gord Owen of Environment Canada.
Calling it “a very serious offense” Judge Swain said that Guan “helped to feed a hot market for these goods" and further stated that the defendant's conduct “feeds demand for the slaughter of rare and already endangered species.”
According to the indictment, other documents filed in federal court and statements made at various proceedings in this case, including today’s sentencing:
Guan was arrested in March 2014, as part of “Operation Crash,” a nationwide crackdown on the illegal trafficking in rhinoceros horns, for Guan’s role in smuggling and attempting to smuggle rhinoceros horns, as well as items carved from elephant ivory and coral, from auction houses throughout the United States to Canada.
Guan, the president and owner of Bao Antiques in Richmond, British Columbia, was arrested after flying from Vancouver, Canada, to New York City and purchasing two endangered black rhinoceros horns from undercover special agents with the U.S. Fish and Wildlife Service at a storage facility in the Bronx, New York. After purchasing the horns, Guan had the undercover agents drive him and a female accomplice acting as his interpreter to a nearby express mail store where he mailed the horns to an address in Point Roberts, Washington, less than a mile from the Canadian border and 17 miles from his business. Guan falsely labeled the box of black rhinoceros horns as containing “handicrafts.” Guan indicated that he had people who could drive the horns across the border and that he had done so many times before.
At the same time Guan was arrested in the United States, Canadian authorities executed a search warrant at his antique business in Richmond. Canadian law enforcement seized various wildlife objects from the business, nine of which have been positively identified as wildlife objects purchased in the United States via a New York City-based internet auction business. These items, made from elephant ivory and coral, were smuggled out of the Unites States and into Canada without the required declaration or Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) permits. Some were shipped directly to Canada and others were sent, at Guan’s direction, to addresses near the U.S./Canadian border in Point Roberts. Guan also recruited college-age family members and acquaintances to assist him with smuggling the wildlife items. Photos of some of the smuggled wildlife artifacts are enclosed. In addition, during the search of Guan’s business, Canadian law enforcement also discovered illegal narcotics, including approximately 50,000 ecstasy pills.
The rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act which further regulates trade and transport.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Janis M. Echenberg of the Southern District of New York and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
Canadian Antiques Dealer Sentenced in Manhattan Federal Court to 30 Months in Prison for Smuggling Rhinoceros Horns, Elephant Ivory, and CoralRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John C. Cruden, the Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, the U.S. Fish and Wildlife Director, announced that XIAO JU GUAN, a/k/a “Tony Guan,” 39, of Richmond, British Columbia, was sentenced today in Manhattan federal court to 30 months in prison for smuggling rhinoceros horns, elephant ivory, and coral from the United States to Canada. In addition to the prison term, Judge Swain ordered Guan to forfeit wildlife items found during a search of his Canadian antiques business.
Manhattan U.S. Attorney Preet Bharara said: “Trafficking in rhinoceros horns and elephant ivory poses a literally existential threat to these endangered or vulnerable species, who die a cruel, pointless death due to greed. These living creatures are not among us as a source of wanton plunder. Without strict enforcement of international agreements and U.S. laws, these extraordinary animals may disappear from the face of the earth. Tony Guan has learned the price of putting profit over the prolonged existence of rhinos and elephants.”
Assistant Attorney General John C. Cruden said: “Wildlife smuggling is a transnational crime that knows no borders and requires an international response. Cooperation between the United States and Canadian law enforcement was crucial to cracking this case. The United States greatly appreciates the assistance of Environment Canada in bringing Guan to justice. International law enforcement collaboration is essential if we are to prevent elephant and rhino species from being extinguished in our own lifetime.”
U.S. Fish and Wildlife Director Dan Ashe said: “The illegal trade in rhinoceros horn is the number one threat to many populations of African rhinos, and is driving the species towards extinction. The wholesale slaughter of these magnificent animals in the wild is taking place so a few callous individuals can line their own pockets. But global law enforcement cooperation through avenues such as the Fish and Wildlife Service’s Operation Crash is bringing people like Guan to justice, and we thank our Canadian and other international partners for the critical role they play in cases such as this. Together we will end the scourge of rhino horn and other wildlife trafficking.”
“The successful outcome of this investigation, and the ongoing success of Operation Crash, is another example of the strong collaboration that exists between Environment Canada’s Enforcement Branch, the U.S. Fish and Wildlife Service, and our partners in conservation enforcement agencies across Canada and the United States,” said Gord Owen, Chief Enforcement Officer, Environment Canada.
Calling it "a very serious offense," Judge Swain said that Guan "helped to feed a hot market for these goods" and further stated that the defendant's conduct "feeds demand for the slaughter of rare and already endangered species."
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
GUAN was arrested in March 2014 as part of “Operation Crash,” a nationwide crackdown on the illegal trafficking in rhinoceros horns, for GUAN’s role in smuggling and attempting to smuggle rhinoceros horns, as well as items carved from elephant ivory and coral, from auction houses throughout the United States to Canada.
GUAN, the president and owner of Bao Antiques in Richmond, British Columbia, was arrested after flying from Vancouver to New York and purchasing two endangered black rhinoceros horns from undercover special agents with the U.S. Fish and Wildlife Service at a storage facility in the Bronx. After purchasing the horns, GUAN had the undercover agents drive him and a female accomplice acting as his interpreter to a nearby express mail store where he mailed the horns to an address in Point Roberts, Washington, less than a mile from the Canadian border and 17 miles from his business. GUAN falsely labeled the box of black rhinoceros horns as containing “handicrafts.” GUAN indicated that he had people who could drive the horns across the border and that he had done so many times before.
At the same time GUAN was arrested in the United States, Canadian authorities executed a search warrant at his antique business in Richmond, B.C. Canadian law enforcement officers seized various wildlife objects from the business, nine of which have been positively identified as wildlife objects purchased in the U.S. via a Manhattan-based internet auction business. These items, made from elephant ivory and coral, were smuggled out of the U.S. and into Canada without the required declaration or permits under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). Some were shipped directly to Canada and others were sent, at GUAN’s direction, to addresses near the U.S./Canadian border in Point Roberts, Washington. GUAN also recruited college-age family members and acquaintances to assist him with smuggling the wildlife items. Photos of some of the smuggled wildlife artifacts are enclosed. In addition, during the search of GUAN’s business, Canadian law enforcement also discovered illegal narcotics, including approximately 50,000 ecstasy pills.
The rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act which further regulates trade and transport.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
* * *
Mr. Bharara commended the U.S. Fish and Wildlife Service for its outstanding work in this investigation. He also thanked the Department of Justice’s Environment and Natural Resources Division, and Canada’s Wildlife Enforcement Directorate.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Janis M. Echenberg and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
15-079
Canadian Antiques Dealer Sentenced in Manhattan Federal Court to 30 Months in Prison for Smuggling Rhinoceros Horns, Elephant Ivory, and CoralRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John C. Cruden, the Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, the U.S. Fish and Wildlife Director, announced that XIAO JU GUAN, a/k/a “Tony Guan,” 39, of Richmond, British Columbia, was sentenced today in Manhattan federal court to 30 months in prison for smuggling rhinoceros horns, elephant ivory, and coral from the United States to Canada. In addition to the prison term, Judge Swain ordered Guan to forfeit wildlife items found during a search of his Canadian antiques business.
Manhattan U.S. Attorney Preet Bharara said: “Trafficking in rhinoceros horns and elephant ivory poses a literally existential threat to these endangered or vulnerable species, who die a cruel, pointless death due to greed. These living creatures are not among us as a source of wanton plunder. Without strict enforcement of international agreements and U.S. laws, these extraordinary animals may disappear from the face of the earth. Tony Guan has learned the price of putting profit over the prolonged existence of rhinos and elephants.”
Assistant Attorney General John C. Cruden said: “Wildlife smuggling is a transnational crime that knows no borders and requires an international response. Cooperation between the United States and Canadian law enforcement was crucial to cracking this case. The United States greatly appreciates the assistance of Environment Canada in bringing Guan to justice. International law enforcement collaboration is essential if we are to prevent elephant and rhino species from being extinguished in our own lifetime.”
U.S. Fish and Wildlife Director Dan Ashe said: “The illegal trade in rhinoceros horn is the number one threat to many populations of African rhinos, and is driving the species towards extinction. The wholesale slaughter of these magnificent animals in the wild is taking place so a few callous individuals can line their own pockets. But global law enforcement cooperation through avenues such as the Fish and Wildlife Service’s Operation Crash is bringing people like Guan to justice, and we thank our Canadian and other international partners for the critical role they play in cases such as this. Together we will end the scourge of rhino horn and other wildlife trafficking.”
“The successful outcome of this investigation, and the ongoing success of Operation Crash, is another example of the strong collaboration that exists between Environment Canada’s Enforcement Branch, the U.S. Fish and Wildlife Service, and our partners in conservation enforcement agencies across Canada and the United States,” said Gord Owen, Chief Enforcement Officer, Environment Canada.
Calling it "a very serious offense," Judge Swain said that Guan "helped to feed a hot market for these goods" and further stated that the defendant's conduct "feeds demand for the slaughter of rare and already endangered species."
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
GUAN was arrested in March 2014 as part of “Operation Crash,” a nationwide crackdown on the illegal trafficking in rhinoceros horns, for GUAN’s role in smuggling and attempting to smuggle rhinoceros horns, as well as items carved from elephant ivory and coral, from auction houses throughout the United States to Canada.
GUAN, the president and owner of Bao Antiques in Richmond, British Columbia, was arrested after flying from Vancouver to New York and purchasing two endangered black rhinoceros horns from undercover special agents with the U.S. Fish and Wildlife Service at a storage facility in the Bronx. After purchasing the horns, GUAN had the undercover agents drive him and a female accomplice acting as his interpreter to a nearby express mail store where he mailed the horns to an address in Point Roberts, Washington, less than a mile from the Canadian border and 17 miles from his business. GUAN falsely labeled the box of black rhinoceros horns as containing “handicrafts.” GUAN indicated that he had people who could drive the horns across the border and that he had done so many times before.
At the same time GUAN was arrested in the United States, Canadian authorities executed a search warrant at his antique business in Richmond, B.C. Canadian law enforcement officers seized various wildlife objects from the business, nine of which have been positively identified as wildlife objects purchased in the U.S. via a Manhattan-based internet auction business. These items, made from elephant ivory and coral, were smuggled out of the U.S. and into Canada without the required declaration or permits under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). Some were shipped directly to Canada and others were sent, at GUAN’s direction, to addresses near the U.S./Canadian border in Point Roberts, Washington. GUAN also recruited college-age family members and acquaintances to assist him with smuggling the wildlife items. Photos of some of the smuggled wildlife artifacts are enclosed. In addition, during the search of GUAN’s business, Canadian law enforcement also discovered illegal narcotics, including approximately 50,000 ecstasy pills.
The rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act which further regulates trade and transport.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Mr. Bharara commended the U.S. Fish and Wildlife Service for its outstanding work in this investigation. He also thanked the Department of Justice’s Environment and Natural Resources Division, and Canada’s Wildlife Enforcement Directorate.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Janis M. Echenberg and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
California Man Sentenced to Prison for Possessing Methamphetamine and A Gun in Wayne CountyRead the Press Release
Thomas Gregory Lilley, 36, of Fontana, California, was sentenced today in United States District Court in Benton to 14 years in prison for possessing with intent to distribute ½ ounce of highly pure methamphetamine (commonly known as "crystal" or "ice") and possessing a firearm in relation to a drug trafficking crime, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Evidence introduced in support of the guilty plea and sentence showed that in April 2014, Lilley followed his estranged wife from California to Wayne County where she had obtained a restraining order against him. Lilley violated that restraining order on April 23
rd and upon his arrest by the Wayne County Sheriff’s Department he was found to be in possession of ½ ounce of methamphetamine and a loaded 7.65 mm caliber pistol. The methamphetamine was concealed in the wheel well of his car and the firearm was hidden in the vehicle’s air breather. Lilley admitted that he brought the methamphetamine from California intending to sell it to others and that he possessed the firearm for protection. Laboratory tests conducted by the United States Drug Enforcement Administration showed that the methamphetamine was 100% pure.
In addition to the 14 year prison sentence, Lilley was ordered to pay fines and special assessments totaling $400 to the United States, was placed on a 3 year term of supervised release to follow his incarceration, and was ordered to forfeit the firearm to the United States for destruction. Following his sentencing, Lilley was returned to the custody of the United States Marshal, where has been held without bond since his arrest on the federal charges in May, to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department, with the assistance of the DEA. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Buffalo Woman Sentenced for Wire FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Destinee McBride, 24, of Buffalo, NY, who was convicted of wire fraud affecting a financial institution, was sentenced to six months home detention and two years supervised release by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $59,077.Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was part of a scheme to defraud the government by obtaining money from the filing of false tax returns. McBride received the proceeds from one of the fraudulent tax returns which was filed with the Internal Revenue Service and for which the refund was placed on a prepaid debit card. The defendant used that card to obtain cash from an ATM and merchandise from private businesses. As a result of the scheme, losses to the Internal Revenue Service totaled $534,782.00.
This case is the culmination of an investigation on the part of the Special Agents of the Internal Revenue Service, Criminal investigation Division under the direction of Special Agent in Charge Shantelle P. Kitchen, and the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Renwick Samuel, 50, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny, to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000.00, or both.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between 2006 and December 2012, the defendant conspired with three co-defendants to possess and distribute cocaine in Buffalo. Samuel was arrested in December 2012 along with Angel Gonzalez and Mica Donadelle. Another co-defendant, Kevin Liburd, was arrested in 2014 in the Virgin Islands and extradited to the Western District of New York. Gonzales was convicted and is awaiting sentencing. Charges are pending against Liburd and Donadelle. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation.
Sentencing is scheduled for July 15, 2015 at 9:00 a.m. before Judge Skretny.
Armed Drug Trafficker Pleads GuiltyRead the Press Release
PROVIDENCE, R.I. – Kevin Bates, 38, of Attleboro, Mass., pleaded guilty in federal court in Providence on Tuesday to being an armed drug trafficker, and faces statutory penalties of up to life in federal prison when he is sentenced in June, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Bates was arrested by Providence Police in October 2013, after a routine traffic stop resulted in the discovery of nearly 245 grams of cocaine and a loaded firearm in Bates’ vehicle.
According to court documents, shortly after midnight on October 19, 2013, Providence police, who had increased patrols on the East Side because of a spate of thefts, saw a car slowly circling in the area. The car repeatedly failed to indicate its turns with a turn light or signal. Due to the traffic violations and the late night circling in the residential neighborhood, police stopped the car. As detectives approached the car, Bates appeared startled and nervous. Detectives saw Bates reaching down beneath the driver's seat.
A search of the vehicle resulted in the discovery of a plastic bag containing nearly 245 grams of cocaine, a loaded .380 caliber handgun under the front seat and $2,500 in cash. Bates admitted to police and to the court that the firearm was his, and that he had purchased it for $500 for protection. The firearm had previously been reported stolen.
Bates, who previously was convicted of drug trafficking and firearm charges, pleaded guilty on Tuesday to one count each of possession of cocaine with the intent to distribute, being a felon in possession of a firearm and being in possession of a firearm in furtherance of a drug trafficking crime.
Bates, who faces statutory sentences of up to 30 years in prison for possession of cocaine with the intent to distribute and being a felon in possession of a firearm, and a statutory consecutive sentence of a maximum of life imprisonment with a mandatory minimum term of 5 years imprisonment, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on June 12, 2015.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]10th Street Gang Member Sentenced to Life in Prison for Murder, Racketeering and Narcotics TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Jonathan Delgado, 26, of Buffalo, NY, who was convicted following a seven week jury trial of Racketeering Influenced Corrupt Organizations conspiracy, was sentenced to life in prison plus five years by U.S. District Judge Richard J. Arcara.According to Assistant U.S. Attorneys Joseph M. Tripi and John M. Alsup, who handled the prosecution of the case, stated that the defendant was a member of the 10th Street Gang which was responsible for multiple acts of violence and the trafficking of various controlled substances on Buffalo’s West Side. Specifically, Delgado, directly or by helping his fellow gang members, participated in the murders of Brandon McDonald and Darinell Young and the attempted murders of 12 others.
The defendant was a member of the 10th Street Gang between 2000 and 2012 and participated in other acts of violence including robbery, burglary, drug distribution and possession of firearms.
Delgado is one of 44 10th Street Gang members and associates charged and convicted in this case.
Today’s convictions are the culmination of an investigation on the part of Special Agents of the FBI Safe Streets Task Force, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
24 March 2015
Woman Sentenced for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – Nina Thompson aka Nina Thompson Price has been ordered to federal prison following her conviction of willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced U.S. Attorney Kenneth Magidson and Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI). Thompson pleaded guilty Dec. 29, 2014.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Thompson a 24-month sentence to be immediately followed by one year of supervised release. She was further ordered to pay $226,884 in restitution to the IRS.
According to the plea agreement filed in the record of the case, Thompson was in the business of preparing income tax returns and operated under the name N.M. & T. Tax Service located on Bellaire Boulevard in Houston. Thompson admitted she willfully placed numerous false items on her clients’ income tax returns in an attempt to lower their income tax liabilities.
The return she prepared that formed the basis of the charges against her resulted in a tax loss to the United States of $7,428. As part of her plea, she admitted that as a result of her actions, the total relevant conduct for sentencing purposes is $226,884. She has agreed to pay that amount in restitution to the IRS.
Previously released on bond, Thompson was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.IRS-CI investigated. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Verdict Against Baltimore Man UpheldRead the Press Release
Contact Person: John Potterfield (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that a guilty verdict against Charles Brown, of Baltimore, Maryland was upheld.
Evidence presented at the trial established that the Department of Veteran's Affairs invited bids on a contract which was set aside for Service Disabled Veteran Owned Small Businesses. The defendant, Charles Brown, bid on the contract, asserting that Executive Medical Transport, LLC, a Columbia based company qualified as disabled veteran owned. The evidence produced at trial further established that although a disabled veteran was listed as an owner of the company, that veteran rarely visited the company and did not exercise control over the operations of the company.
On February 11, 2015, Brown was convicted of seven counts of Wire Fraud. Brown moved to have those verdicts set aside. Today, that motion was denied and the verdicts of the jury upheld.
The case was investigated by agents of the Department of Veteran's Affairs Office of Inspector General. Assistant United States Attorney John C. Potterfield of the Columbia office prosecuted the case.#####
U.S. Attorney's Office Joins TwitterRead the Press Release
Tampa, FL - United States Attorney A. Lee Bentley, III announces today that his office has joined Twitter to assist in providing news, announcements, and other information to the public. To follow us on Twitter, go to https://twitter.com/USAO_MDFL, or add our Twitter address, @USAO_MDFL, to the Twitter app on your mobile device. In addition to Twitter, the U.S. Attorney’s Office also maintains a website, which remains the primary source of information for our office.
Two Men Plead Guilty to Bank Robbery in Twin FallsRead the Press Release
BOISE - Juan Loredo, 22, and Shawn Smith,19, both from Salinas, California, pleaded guilty today to bank robbery by use of dangerous weapons and brandishing of firearms during the commission of a felony offense, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on November 20, 2014, the defendants robbed the First Federal Bank in Twin Falls, Idaho. As the men entered the bank, Loredo brandished a sawed-off shotgun, and Smith brandished a semi-automatic pistol at the tellers and manager. They stole more than $7,000, all of which was recovered by police when the men were arrested after a high-speed vehicle chase, and foot pursuit.
Sentencing is set for June 9, 2015, before U.S. District Judge Edward J. Lodge. The men will continue to be held in custody awaiting their sentences.
The charge of bank robbery by use of a dangerous weapon is punishable by up to 25 years in prison, and a maximum fine of $250,000. In addition to the bank robbery, Juan Loredo faces an additional period of not less than 10 years of incarceration consecutive to any other punishment, and a maximum fine of $250,000 for brandishing the short-barreled shotgun during the crime of violence. Shawn Smith faces an additional period of not less than seven years consecutive to any other punishment for brandishing the pistol during the crime of violence.
“Those who use firearms to commit violent crimes will be vigorously investigated and prosecuted,” said Olson.
The men were apprehended by, and the case was investigated by, the Twin Falls Police Department. The Bureau of Alcohol, Tobacco and Firearms assisted in the investigation and prosecution of these offenses.
Two Brothers Charged in $1 Million Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two more Kansas City, Mo., men were indicted by a federal grand jury today for their roles in a 15-member conspiracy to distribute more than $1 million worth of cocaine, methamphetamine and marijuana.
Jesse F. Vasquez, 40, and his brother, Jonathan Anthony Vasquez, 34, both of Kansas City, were charged in an eight-count superseding indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment replaces a Nov. 18, 2014, indictment and includes the original defendants along with additional charges. Those previously charged are Christopher Brian Padilla, 30, Natalie N. Tinoco, 29, Oswaldo Ulises Lopez, 24, Edward Francis Diaz, Jr., 47, Edward Francis Diaz III, 28, Mary Eloisa Steward, 33, Heriberto Muzquiz III, 43, Nicholas Salinas, 47, and Terry L. Diaz, 50, all of Kansas City, Mo.; Sergio Ibarra-Hernandez, 44, Jose Tereso Salinas-Covarrubias, 46, and Martin Fernando Espinoza-Arevalo, 26, all of whom are citizens of Mexico residing in Kansas City, Mo.; and Adan Rogelio Hernandez-Aceves, also known as Jose Delgado-Hernandez, 44, a citizen of Mexico residing in Kansas City, Kan.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute cocaine, methamphetamine and marijuana from Jan. 1, 2012, to Nov. 19, 2014. The indictment alleges that conspirators distributed at least 15 kilograms of cocaine, two kilograms of methamphetamine and 1,000 kilograms of marijuana.
As in the original indictment, Padilla also is charged with one count of illegally possessing firearms. Padilla allegedly possessed and used a loaded .357-caliber Glock semi-automatic pistol, a Taurus .38-caliber revolver and a Glock .40-caliber semi-automatic pistol in furtherance of a drug-trafficking crime. Padilla is also charged with selling a Taurus .38-caliber revolver and a Glock .40-caliber semi-automatic pistol to a buyer who was prohibited from possessing a firearm because he was a felon.
Today’s superseding indictment contains several new charges against various defendants.
Salinas and Jonathan Vasquez are charged with possessing cocaine with the intent to distribute. Ibarra-Hernandez and Salinas-Covarrubias are charged with possessing methamphetamine with the intent to distribute.
Ibarra-Hernandez, Salinas-Covarrubias and Jonathan Vasquez are charged with being drug users in possession of firearms and ammunition. The indictment alleges that the three men, who were addicted to marijuana, cocaine, methamphetamine and other controlled substances, were in possession of a Ruger semi-automatic handgun, a Smith and Wesson .357-caliber handgun and ammunition.
Ibarra-Hernandez and Salinas-Covarrubias are charged with being illegal aliens in possession of firearms and ammunition.
Ibarra-Hernandez, Espinoza-Arevalo and Hernandez-Aceves are also charged with illegally reentering the United States after having been deported.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the drug-trafficking conspiracy or used to facilitate the commission of the drug-trafficking conspiracy, including a money judgment of $1,050,000 for which all of the defendants are jointly and severally liable. This sum, in aggregate, allegedly was received in exchange for the unlawful distribution of cocaine, methamphetamine and marijuana, based on a conservative average street price of $32,000 per kilogram of cocaine, $1,000 per ounce of methamphetamine and $500 per pound of marijuana and the total conspiracy distribution of at least 15 kilograms of cocaine, two kilograms of methamphetamine and 1,000 kilograms of marijuana.
The forfeiture allegation would also require the defendants to forfeit two residential properties owned by Salinas, a 2007 Chevrolet Avalanche pick-up owned by Hernandez-Aceves and $59,708 seized by law enforcement officers.
Dickinson cautioned that these charges are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Supreme Court Denies Petition in Animal Crush Video Case – Case Returns to Houston Federal CourtRead the Press Release
HOUSTON – The U.S. Supreme Court has denied a petition for a writ of certiorari in the case involving a Texas couple who allegedly created and distributed “animal crush videos,” announced U.S. Attorney Kenneth Magidson. The case will now again be set for trial in federal court in Houston.
A federal grand jury returned an indictment Nov. 28, 2012, against Ashley Nicole Richards, 24, and Brent Justice, 53, both of Houston. They were charged with multiple counts of creating animal crush videos and distribution of those videos among other charges.
A U.S. district judge later dismissed the crush video charges, citing constitutionality issues. The government appealed that decision to the 5th Circuit Court of Appeals in New Orleans which subsequently overturned the decision of the District Court. The defendants then filed a petition for a writ of certiorari to the U.S. Supreme Court challenging the 5th Circuit’s ruling. The U.S. Supreme Court has denied that petition and the case is remanded back to the District Court for prosecution. A new trial date has not yet been set.
The indictment alleges Richards and Justice created and distributed animal crush videos which were obscene in nature. The charges mention eight videos which allegedly involve puppies, chickens and kittens being tortured and killed. The indictment alleges the videos were created at varying times between February 2010 and August 2012.
The term "animal crush video" is defined under federal law as any photograph, motion-picture film, video or digital recording, or electronic image that depicts actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
This is the first known case to be indicted in federal court since the statute was amended in 2010.
If convicted of these charges, Richards and Justice face up to seven years in federal prison on each count. They also face a possible $250,000 fine and at least three years of supervised release following completion of any prison term imposed.
Both have remained in state custody on related animal cruelty charges following their arrests on Aug. 15, 2012.
Oral arguments are available online. The arguments presented in this case before the 5th Circuit Court of Appeals on March 11, 2014, can be heard at http://www.ca5.uscourts.gov/OralArgRecordings/13/_13-20265_3-11-2014.MP3
This case was originally investigated by the Houston Police Department who is working in conjunction with the Houston office of the FBI. The case is being prosecuted by Assistant U.S. Attorney Sherri L. Zack. Trial Attorney John Pellettieri of the Department of Justice’s Criminal Division handled the appeal.
A defendant is presumed innocent unless convicted through due process of law.Stroudsburg Woman Enters Guilty Plea to Federal Charge for Allowing Her Residence to Be Used for Methamphetamine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Stroudsburg woman pleaded guilty today in Scranton before Senior United States District Judge Edwin M. Kosik, to a charge involving the use of her residence for methamphetamine trafficking.
According to United States Attorney Peter Smith, Jeannine Altemose, age 53, of Stroudsburg, Monroe County, entered a guilty plea to the charge of maintaining drug involved premises. Altemose admitted to allowing a co-defendant to store and distribute methamphetamine from her residence in Stroudsburg in 2013 and 2014.
Altemose was one of seven individuals indicted by a federal grand jury in April 2014, after a several month investigation conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police and the Stroud Regional Police Department regarding methamphetamine trafficking in Monroe County.
The charges against the remaining defendants are currently pending.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
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 for all charges under the federal statutes is imprisonment for 20 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
St. Croix Man Arrested on Charges of Illegal Receipt of FirearmsRead the Press Release
St. Croix, USVI – Gregory Williams, Jr., 23, of St. Croix, was arrested today and charged in District Court with illegal receipt of firearms, possession of a firearm with an obliterated serial number and unauthorized possession of firearm, announced United States Attorney Ronald W. Sharpe. Williams made his initial appearance before U.S. Magistrate Judge Cannon and was detained pending a detention hearing scheduled for Thursday, March 26, 2015.
Williams was arrested pursuant to a warrant issued after he was indicted by a federal grand jury on Tuesday, March 17, 2015, in three-count indictment.
If convicted of illegal receipt of firearms, Williams faces a maximum of 10 years in prison and a $250,000 fine. If convicted of possession of a firearm with an obliterated serial number, he faces a maximum of five years in prison and a $250,000 fine. If convicted of unauthorized possession of a firearm, he faces a maximum sentence of five years in prison.
The three-count indictment is the result of investigative work by U. S. Customs and Border Protection (CBP), Department of Homeland Security (DHS), United States Postal Inspection Service (USPIS), and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Rami S. Badawy.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Springfield Man Pleads Guilty to Cocaine DistributionRead the Press Release
BOSTON – Stephen Tavernier, 27, of Springfield, pleaded guilty yesterday to conspiracy to possess with intent to distribute and to distribute cocaine, and distribution of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 29, 2015.
On Aug. 6, 2013, Tavernier sold cocaine to an undercover federal agent on Main Street in Springfield, just yards from the state courthouse. Tavernier also admitted that, during the transaction, he removed a bag of crack cocaine from his mouth and handed it to the agent. The drug purchase was captured on video.
The charge of conspiracy to possess with intent to distribute cocaine provides a sentence of no greater than 20 years in prison, 3-5 years of supervised release, and a fine of $1 million. The charge of distribution of cocaine provides a sentence of no greater than 20 years in prison, 3-5 years of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Sioux Falls Man Charged in Dacotah Bank RobberyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Bank Robbery.
Rickey Daniel Starks, age 45, was indicted on March 17, 2015. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 18, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On March 5, 2015, the Sioux Falls Police Department responded to a call that there had been an armed robbery at Dacotah Bank on East 10th Street in Sioux Falls. Information relayed to the officers was that a man walked in the front door of the bank wearing distinctive clothing, a ski mask, and carrying a backpack. He demanded money and waved what appeared to be a gun in the air. Video from the bank’s surveillance cameras confirmed the information the police had received. Portions of the video were released to the local news media and several sources contacted law enforcement to help identify the person.
The charge is merely an accusation and Starks is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department, South Dakota Highway Patrol, and the Federal Bureau of Investigation. Assistant U.S. Attorney Dennis R. Holmes is prosecuting the case.
Starks was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Shiprock Man Sentenced to Federal Prison for Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Lorin Nelson Dee, 49, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 30 months in federal prison followed by five years of supervised release for his federal abusive sexual contact conviction.
Dee was arrested in April 2014, on a criminal complaint charging him with aggravated sexual abuse and abusive sexual contact. Dee subsequently was indicted on those two charges on May 7, 2014. According to court filings, Dee forced a Navajo woman to engage in a sexual act on April 23, 2014, at a location within the Navajo Indian Reservation in San Juan County, N.M.
On Dec. 8, 2014, Dee pled guilty to Count 2 of the indictment, charging him with abusive sexual contact. In his plea agreement, Dee admitted using force to sexually abuse the victim by intentionally touching and rubbing her breast on April 23, 2014.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Seven Additional Schuele Boys Gang Members and Associates Charged with Drug TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned three separate indictments charging seven additional members and associates of the Schuele Boys Gang, a group which operated in the Schuele Street area of the East Side of Buffalo. The charges, which include conspiracy to distribute and distribute crack cocaine, cocaine and marijuana, carry a maximum penalty of 20 years in prison, and a fine of $1,000,000.“As I have stated many times before, this Office and our law enforcement partners stand ready to remove any organized group of individuals that threatens to harm our community through narcotics trafficking and acts of violence,” said U.S. Attorney Hochul. “Our dismantling of the 10th Street Gang on Buffalo’s West Side and other multiple successful gang prosecutions should serve as a warning that will be aggressive in removing these threats from our neighborhoods.”
Charged in the indictments are:
• Eric Sears, 47, Buffalo
• Andre Jackson, 28, Buffalo
• Tyrell Skipper, 25, Buffalo
• Willie Griffin, 25, Buffalo
• Robert Brown, 52, Buffalo
• Samuel Walker, 50, Buffalo
• Tywone Smothers, 36, Buffalo
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the indictments, between June 2013 and July 2014, the defendants sold controlled substances, including crack cocaine, cocaine and marijuana, primarily on the East Side of Buffalo.
The investigation utilized wire and electronic communications, confidential sources, and physical and video surveillance, to identify conspirators associated with the Schuele Boys Gang distribution network.
In July, 2014, 17 Schuele Boys members and associates were arrested and charged with narcotics trafficking including:
• Antwan Garner, 29, Buffalo
• Aaron Glenn, 41, North Tonawanda
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Demario Robbins, 23, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, Buffalo
The indictments are the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rochester Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Miguel Calixto, 28, of Rochester, NY, who was convicted of possession of a firearm by a convicted felon, was sentenced to 10 years in prison by Chief U.S. District Court Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that on July 2, 2013, Rochester Police officers observed the defendant in possession of a 380 caliber Smith and Wesson semiautomatic pistol. Calixto was previously convicted of a felony weapons offense, and was therefore prohibited from legally possessing a firearm under federal law.
The defendant used the pistol on June 8, 2013 on Wadsworth Street in Rochester to shoot another individual four times, resulting in the victim’s permanent paralysis from the waist down. In conjunction with his plea in federal court, Calixto was convicted of Assault in the First Degree in Monroe County Court.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rochester Man Sentenced for Drug TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Adminda Poole, a/k/a Adminda Lopez, 39, of Rochester, NY, who was convicted of conspiracy to distribute, and possession with intent to distribute, heroin and cocaine, was sentenced to 125 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that the defendant participated in a conspiracy between December 2013 and February 2014, to sell at least 200 grams of heroin and a kilogram of cocaine in Rochester. On February 7, 2014, Rochester police executed a search warrant at a residence on Clay Avenue in Rochester used by Poole and found heroin and cocaine, as well as drug paraphernalia. In addition officers found $36,822 in cash. The defendant agreed to the forfeiture of the cash as part of her sentence.
The sentencing is the culmination of an investigation on the part of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rhode Island Man Pleads Guilty in Federal Court to Sex TraffickingRead the Press Release
PROVIDENCE, R.I. – Ricky Wallace, a/k/a Justice, 33, of Pawtucket, R.I., pleaded guilty in federal court in Providence on Monday to trafficking a 17-year-old woman from the Boston area to Pawtucket for the purposes of commercial sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Pawtucket Police Chief Paul King; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; United States Marshal Jamie A. Hainsworth; and Arlington, Mass., Police Chief Frederick Ryan.
Wallace admitted to the court that in addition to trafficking the 17-year-old, he also brought a 20-year-old woman from the Boston area to Rhode Island where she posed in photos posted on Backpage.com and offered her for commercial sexual activity.
According to court documents, the 17-yerar-old victim was taken from South Station in Boston in the early morning hours of August 19, 2014, and driven to Rhode Island for the purposes of being trafficked for commercial sexual activity. According to the victim, she was driven to the same Pawtucket residence where she was located on August 25, 2014, and rescued by FBI agents, Pawtucket Police and Central Falls Police, after she contacted a group home in the Boston area in which she resided. The group home contacted the FBI.
Additionally, according to court documents, on August 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge, Mass. Instead of driving her to Cambridge, she was driven to Pawtucket and then to a motel in Seekonk, Mass., where she was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. The next day the woman was able to get away from Wallace and had contact with Seekonk Police. Rhode Island State Police also assisted in the investigation.
Appearing before U.S. District Court Judge Mary M. Lisi, Wallace pleaded guilty to one count each of conspiracy, sex trafficking of a child, transportation of a minor for sexual activity, and two counts of transportation of an individual for sexual activity.
Wallace, who has been detained since his arrest on August 29, 2014, is scheduled to be sentenced on June 25, 2015.
The case is being prosecuted in federal court by Assistant U.S. Attorney Pamela E. Chin. The U.S. Attorney’s Office is also working in conjunction with the Rhode Island Department of Attorney General in the prosecution of this matter. Wallace also faces charges in Rhode Island state court in an unrelated matter.
The FBI, Pawtucket Police and Rhode Island State Police were assisted in the investigation of this matter by the United States Marshal Service and the Arlington, Mass., Police Department.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Opening Statement of Acting Deputy Attorney General Sally Quillian Yates at US Senate Confirmation HearingRead the Press Release
Acting Deputy Attorney General Sally Quillian Yates released the following statement today at the opening of the U.S. Senate confirmation hearing:
“Chairman Grassley, Ranking Member Leahy and Members of the Committee, it is an honor to appear before you today. I am very grateful for this opportunity and for President Obama’s nomination. I would also like to thank Senator Isakson, Senator Perdue and Congressman Lewis for their kind and generous introductions. They have led remarkable lives of service to Georgia and to our country, and I am humbled by their confidence in me.
“It is particularly meaningful for me to appear before you today surrounded by my family – my husband Comer, my daughter Kelley and my son Quill. I am not only grateful to all of them for their love and support, but I am also incredibly proud of each of them. My husband Comer, a lawyer by training, followed his heart and runs a school for children with learning disabilities and children who are deaf and hard of hearing. My daughter Kelley is in her first year as a special education teacher. My son, Quill, is a sophomore in college where he is studying political science and environmental policy.
“My only regret is that my parents, both of whom have passed away, are not here today. They instilled in me a love of the law and a call to public service. I come from a long line of lawyers on both sides of my family – lawyers and Methodist preachers. Even my grandmother was a lawyer; in fact she was one of the earliest women admitted to the Georgia Bar. And even though she was probably the smartest one in the bunch, law firms didn’t hire many women to practice law in those days, so she was a legal secretary instead. My father and his father before him were state appellate court judges, and they demonstrated by example that the law is an instrument for ensuring that right is done in the world. My father died shortly before I graduated from law school, but I vividly recall him counseling me while I was in school to make sure that the work I chose when I graduated was more than just a job or a way to earn a living. Rather, he believed that we have an obligation to use our legal education for a greater good and he encouraged me to find a path where I could make a real difference in the world.
“That path took me to the Department of Justice. I joined the U. S. Attorney’s Office in Atlanta in the fall of 1989, and the Department of Justice has been my home ever since. When I joined the U.S Attorney’s Office, I certainly didn’t expect that I would still be with the Department of Justice 25 years later. But once I experienced the privilege of representing the people of the United States – of doing what I believed was right, and fair and just in every case – anything else would have felt like just a job.
“Bob Barr, then the U.S. Attorney of the Northern District of Georgia, entrusted me with my first position in the department – that of a line prosecutor. I began the way all young prosecutors do – by investigating and trying cases; by working with agents and witnesses and victims to keep my fellow citizens safe and to ensure that those who harmed our community were held accountable. Over time, my cases became more complex and I assumed leadership positions within the office – Chief of the Fraud and Public Corruption Section; First Assistant U.S. Attorney; and eventually the first female United States Attorney for the Northern District of Georgia. Throughout this time, I carried with me the values instilled by my family – that the law can be an instrument for good, but only when it is applied fairly, thoughtfully and objectively. I believe it is a credit to the institution I love that I have held leadership positions through Republican and Democratic administrations, and that I have witnessed career men and women of the department consistently following the facts and the law with great distinction and without regard to politics.
“Over the years, I have seen the department from a variety of vantage points. I personally prosecuted public corruption, regardless of party, and led our team in holding accountable the Olympic bomber, Eric Rudolph. As a supervisor, I have ensured that our office had the expertise, resources and focus to go after worst of the worst, whether they were international gangs, human trafficking rings or cybercriminals. As the U.S. Attorney, I was the vice chair of the Attorney General’s Advisory Committee, and gained additional insight into the unique challenges each U.S. Attorney’s Office across the country faces—challenges that I know you each hear about from your constituents. When the President nominated me, a career prosecutor, to be the Deputy Attorney General, it was the greatest honor that I could imagine.
“I am proud to say that in the brief period during which I have served as the Acting Deputy Attorney General, I have seen on a national scale the same skill, care and dedication in our attorneys that I knew in the Northern District of Georgia. In taking on the day-to-day operations of the department, its $27 billion budget, and its 114,000 employees, I also understand that we face critical national security and public safety challenges. I believe that we can work together on these challenges, and in my role as Chief Operating Officer of the department, I will be committed to ensuring that the resources Congress provides to the department are used as effectively as possible to protect public we all serve.
“I know that several of you have served previously at the department and share my love of this great institution. As you all know, the Department of Justice is unique among cabinet agencies; it is, and must be, independent and non-partisan. We don’t represent an ordinary client, and as representatives of the people, we must always be governed by doing what is just. This has been my life’s work. And if I am fortunate enough to be confirmed, I can promise you that I will spend each and every moment guided solely by the department’s singular mission to seek justice.
“Thank you. I look forward to your questions.”
Notice of Court ProceedingsRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
WHEN: Wednesday, March 25, 2015, 9:30 a.m. WHERE:
COLUMBIA, SOUTH CAROLINA -- United States Attorney Bill Nettles stated today that a sentencing hearing has been scheduled in the case of United States v. Lester Woods and Michael Johnson, Case No. 3:14-0093. Chief United States District Court Judge Terry L. Wooten will preside.Matthew J. Perry Courthouse
901 Richland Street, Courtroom # 5, Columbia, SC
# # # #
Newark, New Jersey, Man Sentenced to 12 Years in Prison for Armed CarjackingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 144 months in prison for his role in a shotgun carjacking in Little Falls, New Jersey, on Oct. 30, 2011, U.S. Attorney Paul J. Fishman announced.
Hanzah Darby, 26, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of theft of a motor vehicle by force, violence, and intimidation and one count of use of a firearm in furtherance of a crime of violence. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: On Oct. 30, 2011, Darby, and Ivan Lee, 26, of Newark, were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and Lee – who brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint. Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time.
In addition to the prison term, Judge Wigenton sentenced Darby to serve three years of supervised release.
Lee, who was charged with Darby in the indictment, previously pleaded guilty to one count of theft of a motor vehicle by force and was found guilty of the brandishing a firearm charge following a one-week trial before Judge Wigenton. Lee was sentenced to 14 years in prison on Feb. 11, 2015.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing. He also thanked the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik for its assistance.
The government is represented by Assistant U.S. Attorney Cari Fais and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Timothy Donohue Esq., West Orange, New Jersey.New Orleans Woman Charged with Stealing Federal Grant Money from Open World Family ServicesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIM CASSELL, age 42, of New Orleans, was charged in a one-count Bill of Information last Friday with stealing money from Open World Family Services, Inc. (“Open World”). Open World was a non-profit 501(c)(3) charitable corporation organized for the purpose of helping students in the greater New Orleans area grow academically.
According to the Bill of Information, from March 2010 until June 2012, CASSELL knowingly used more than $140,000 in federal grant money for her personal benefit, rather than for its intended educational purposes.
If convicted, CASSELL faces a maximum term of imprisonment of ten years, three years of supervised release following any term of imprisonment, a $250,000 fine, and restitution to the United States Department of Education.
U. S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Department of Education, the Federal Bureau of Investigation, and the Office of the Louisiana Legislative Auditor in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
New Hartford Man Sentenced to Federal PrisonRead the Press Release
A man who failed to appear for a supervised release revocation hearing in U.S. District Court was sentenced today to more than a year in federal prison.
Jeremiah Wroblewski, 36, from New Hartford, Iowa, received the prison term after a September 12, 2014, guilty plea to one count of failure to appear.
Wroblewski was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wroblewski was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Wroblewski is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-89.
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Native of Dominican Republic Charged in Gun CaseRead the Press Release
PHILADELPHIA - Amin De Castro, 39, of Philadelphia, PA was charged today by Indictment with being an illegal alien in possession of a firearm, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 22, 2014, De Castro, an alien, and native and citizen of the Dominican Republic, was found in the United States in possession of a .380 caliber firearm.
If convicted the defendant faces a maximum possible sentence of ten years imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations ("ERO") and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
Naples Man Pleads Guilty to Three Armed Bank RobberiesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that John Robert Haldemann (31, Naples) today pleaded guilty to three counts of armed bank robbery. He faces a maximum penalty of 25 years in federal prison for each count. A sentencing date has not yet been set.
According to court documents, Haldemann committed three armed bank robberies last summer. On June 4, 2014, he robbed a Capital Bank in Venice. He then committed an armed robbery at a Wells Fargo Bank in Naples on July 12, 2014. And, in Punta Gorda on July 25, 2014, he robbed a Bank of America. During each armed bank robbery, Haldemann displayed what appeared to be a firearm and demanded money from bank employees.
This case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force, the Punta Gorda Police Department, the Naples Police Department, the Collier County Sheriff’s Office, the Venice Police Department, and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
Mexican National Sentenced for Methamphetamine and Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Miguel Angel Tinajero-Martinez, 25, a Mexican national illegally in the United States, was sentenced today in federal court in Las Cruces, N.M., to 51 months in federal prison for his methamphetamine and cocaine trafficking convictions. He will be deported after he completes his prison sentence.
Tinajero-Martinez was indicted on Feb. 19, 2014, under the moniker “4 Runner” and was charged with conspiracy and distribution of methamphetamine. He was arrested on Feb. 27, 2014, and has been in federal custody since that time.
On July 24, 2014, Tinajero-Martinez entered a guilty plea to a four-count felony information charging him with (1) conspiracy; (2) distribution of methamphetamine in Doña Ana County, N.M., on Jan. 27, 2014; (3) distribution of methamphetamine in Doña Ana County, N.M., on Feb. 27, 2014; and (4) possession of cocaine with intent to distribute in El Paso County, Texas, on Feb. 27, 2014.
According to court records, Tinajero-Martinez conspired with others to distribute three kilograms of methamphetamine in Doña Ana County, N.M., between Dec. 2, 2013 and Feb. 27, 2014. More specifically, Tinajero-Martinez distributed a kilogram of methamphetamine to an undercover agent on Jan. 27, 2014, and two kilograms of methamphetamine to undercover agents on Feb. 27, 2014. The drug transactions were negotiated by Tinajero-Martinez’s co-conspirators and Tinajero-Martinez delivered the methamphetamine to the agents. Tinajero-Martinez also possessed seven kilograms of cocaine at his home in Horizon, Texas; he waived venue to permit him to enter his guilty plea in federal court in New Mexico.
The indictment in this case was the result of a multi-agency investigation that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
This case was investigated by the Las Cruces office of the FBI and Las Cruces/Doña Ana County Metro Narcotics Agency, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Mexican National Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Yareli Jasmin Bustamante-Conchas, 28, a Mexican citizen illegally residing in Albuquerque, N.M., pleaded guilty this morning to a federal heroin trafficking charge.
Bustamante-Conchas was arrested on a criminal complaint on Aug. 29, 2014, in Bernalillo County, N.M., after DEA agents seized approximately 745.4 grams of heroin, drug packaging materials and $42,818.47 in U.S. currency from Bustamante-Conchas’ residence during a consensual search.
Bustamante-Conchas was subsequently indicted on Sept. 23, 2014, and charged with possession of heroin with intent to distribute. The indictment included forfeiture provisions seeking an order requiring Bustamante-Conchas to forfeit $102,000.00 representing drug proceeds in addition to the $42,818.47 seized from her home on Aug. 29, 2014.
During today’s proceedings, Bustamante-Conchas pled guilty to the indictment and admitted that on Aug. 28, 2014, DEA agents seized 745.4 grams of heroin, approximately $42,818.47 in cash and drug packaging materials from her home. Bustamante-Conchas also admitted that she was illegally present in the United States and had been making approximately $3,000.00 a week by distributing heroin since Dec. 2013.
Bustamante-Conchas has been in federal custody since her arrest and remains detained pending a sentencing hearing which has yet to be scheduled. At sentencing, Bustamante-Conchas faces a mandatory minimum of five years and a maximum of 40 years in prison. She will be deported after completing her prison sentence.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort 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.
Members of Manchester-Based Oxycodone RingRead the Press Release
Plead Guilty To Federal Drug Trafficking Charges
CONCORD, NEW HAMPSHIRE – Five members of a Manchester-based oxycodone distribution ring plead guilty in United States District Court for the District of New Hampshire, announced United States Attorney John P. Kacavas.
Samuel Garcia (35), Jennifer Nunez (24), Johanna Nunez (28), Jose Nunez (59), and Raul Hernandez (27), each admitted to their participation in a conspiracy to distribute, and possess with intent to distribute, oxycodone, as well as other federal criminal charges.
The defendants were arrested after a law enforcement investigation that lasted from 2013 to August of 2014. The investigation included the use of cooperating individuals to purchase oxycodone pills, as well as the use of wiretaps and search warrants. Most of the defendants were arrested on August 27, 2014. Hernandez was arrested as he attempted to deliver over 600 oxycodone pills to the residence of Samuel Garcia and Jennifer Nunez on Eastern Avenue in Manchester, New Hampshire. A search warrant was executed at that residence and hundreds of additional pills, as well as over $30,000 in cash, and three firearms were recovered from that location. Garcia, Jennifer Nunez, and Johanna Nunez were arrested that day. Jose Nunez was arrested in October of 2014, after returning to the United States from the Dominican Republic.
Garcia pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime. He is scheduled to be sentenced on June 24, 2015.
Jennifer Nunez pleaded guilty on March 24, 2015, to:(1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Distribution of a Controlled Substance; and (4) Possession of a Firearm During a Drug Trafficking Crime. She is scheduled to be sentenced on June 23, 2015.
Johanna Nunez pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; and (2) four counts of Distribution of a Controlled Substance. She is scheduled to be sentenced on June 23, 2015.
Jose Nunez pleaded guilty on March 6, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) four counts of Distribution of a Controlled Substance; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). He is scheduled to be sentenced on June 19, 2015.Raul Hernandez pleaded guilty on March 17, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance and (2) Possession of a Controlled Substance with Intent to Distribute. He is scheduled to be sentenced on June 23, 2015.
An additional defendant, Edward Anthony Hiciano Beltre, is a fugitive.
The defendants each face a maximum sentence of twenty years on each of the drug and money laundering charges. The firearms charges carry a mandatory minimum term of five years in prison, which must be served consecutive to the sentences on the remaining charges.
In addition to these defendants, separate federal drug conspiracy charges remain pending against other Manchester residents who were arrested as part of this investigation, including Ryan Demers (31), William Alba (24), Bonnie Labrie (50), Krystal Mailhot (27), and Yonajaira Galarza Ramos (30).
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. This particular investigation involved cooperative efforts of federal and local law enforcement entities, including the Drug Enforcement Administration, the Manchester Police Department, the New Hampshire State Police, the Massachusetts State Police, and the Hillsborough County Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys John J. Farley and Debra M. Walsh.
Member of Drug Trafficking Organization Admits to Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A member of a large-scale drug trafficking organization today admitted conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Jonathan Thomas, a/k/a “Life,” 39, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiring to distribute heroin.In March 2014, 20 other alleged members of the drug trafficking organization of which Thomas was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those individuals, eight have pleaded guilty.
According to documents filed in this case and statements made in court:
Between September 2013 and March 2014, Thomas conspired with others to distribute heroin in Ocean and Monmouth counties. Thomas was one of the Britt-Young DTO’s heroin suppliers. Thomas admitted supplying between 100 and 400 grams of heroin to the Britt-Young DTO during the conspiracy. Although he was incarcerated in New Jersey during the conspiracy, he continued to supply narcotics to the Britt-Young DTO through another conspirator, who picked up heroin from New York City and delivered it on Thomas’ behalf.
The narcotics conspiracy charge to which Thomas pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for June 30, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Kim A. Otis Esq., Princeton, New Jersey
Thomas, Jonathan Information
Medical Office Receptionist Sentenced to 34 Months in Prison for Embezzlement, Credit Card Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A receptionist previously employed by a medical office in Kearny, New Jersey, was sentenced today to 34 months in prison for embezzling more than $446,000 from her former employer, using fraudulent credit cards to obtain more than $200,000 in goods and services and evading taxes on that illegal income, U.S. Attorney Paul J. Fishman announced.
Gwendolyn Muller, 53, formerly of Kearny, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging her with one count each of embezzlement, credit card fraud and tax evasion. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2007 through 2011, Muller used her position at the medical practice to take, cash, and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller also admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
In addition to the prison term, Judge Martini sentenced Muller to three years of supervised release and ordered her to pay restitution of $556,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Donald Rinaldi Esq., Nutley, New Jersey
Man Sentenced to Life in Prison for Murdering his ParentsRead the Press Release
A man who used a machete to murder his parents on the Meskwaki Nation Settlement was sentenced today to life in federal prison without the possibility of parole.
Gordon Lasley, Jr., age 26, from the Meskwaki Nation Settlement, Iowa, received the prison term after a December 17, 2014, jury verdict finding him guilty of two counts of Second Degree Murder.
The evidence at trial showed that, on February 5, 2014, Lasley murdered Gordon Lasley, Sr. and Kim Renee Lasley at their home on the Meskwaki Nation Settlement by striking them each multiple times with a machete. Lasley’s attorneys unsuccessfully argued Lasley was insane at the time of the murders and should not be held criminally responsible for the murders.
Lasley was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lasley was sentenced to a term of life imprisonment on each count, with the prison terms to run consecutively. A special assessment of $200 was imposed, and he was ordered to make $156.80 in restitution to the Iowa Crime Victim Compensation program. There is no parole in the federal system.
Lasley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys CJ Williams and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police Department, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00045.
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Man Sentenced for Possessing Numerous Unauthorized Access Devices to Obtain MerchandiseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Luis Alcalar Vasquez, a/k/a Noberto DeRivas, a/k/a Abraham Rivas-Rios, 43, of Texas and Mexico, who was convicted of possession of 15 or more unauthorized access devices, was sentenced to 72 months in prison and ordered to pay $77,577.90 in restitution by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between November 2012 and March 2013, the defendant obtained high-end merchandise at various Home Depot stores in Illinois, Indiana, Ohio and New York by scanning bar codes for lower ticketed items at self check-out stations. Vasquez scanned the bar codes for the lower cost items but took the more expensive items out of the stores. For example, the defendant scanned the bar code for a sink priced at $59.95 but actually left the store with a sink costing $444.79. Vazquez then returned the higher ticketed merchandise to another Home Depot location in exchange for stored value cards.
By early March, 2013, Home Depot became aware that the “ticket-switch” and refund transactions were being executed at stores in Western New York. On March 7, 2013, at stores in West Seneca, Buffalo, and Cheektowaga, sinks costing $444.79 were exchanged for stored value cards in that amount.
Later on March 7, at Home Depot’s store in Lockport, the defendant tried to use a California driver’s license bearing his picture but a different name, in order to return merchandise valued at $700.55. However, Home Depot personnel stopped the transaction and called Niagara County Sheriff’s Office deputies to the Lockport store, where they took the defendant into custody. Niagara County Sheriff’s Office investigators found Vasquez had 20 false California drivers licenses in three different names but all bearing the defendant’s picture, and 17 Home Depot stored value cards worth approximately $5,910. Two cell phones with bar codes taped to their backs were found on the defendant.
The total value of the merchandise the defendant obtained from The Home Depot stores was $77,577.90.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation and investigators of the Niagara County Sheriff’s Department, under the direction of Niagara County Sheriff James Voutour.
MTU America Inc., Agrees to $1.2 Million Penalty and Auditing Program to Resolve Clean Air Act ViolationsRead the Press Release
MTU America Inc. (MTU), a subsidiary of Rolls-Royce Power Systems AG, will implement an auditing program to ensure proper emissions testing and compliance with federal emission standards for its heavy-duty diesel non-road engines as part of a settlement to resolve alleged Clean Air Act violations, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.
The complaint filed with the settlement alleges that MTU violated the Clean Air Act by selling 895 non-road, heavy-duty diesel engines, which are used in mining, marine and power generation vehicles and equipment, without valid certificates of conformity. EPA voided the certificates of conformity purporting to cover the engines based on improper emissions testing by MTU employees. Under the settlement, MTU will pay a $1.2 million penalty and perform annual audits of its engine emission testing and certification activities for three years. The audits will be conducted by an EPA-approved, third-party auditor that will monitor and evaluate compliance with Clean Air Act requirements for testing, certification, record-keeping and reporting. MTU is also required to initiate corrective actions if the audit reveals non-compliance.
“Certificates of conformity are a critical part of EPA’s program to ensure that vehicles and engines meet Clean Air Act emissions standards,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division. “Companies that skirt the rules in their certification testing hurt the public and their competitors. Today’s settlement ensures that the company will adequately monitor the activities of employees involved in the certification process to prevent this kind of conduct from recurring.”
“Engines that aren’t properly certified can emit toxic pollution that aggravates asthma and other respiratory illnesses,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “This agreement requires that MTU take important steps to comply with the law, protect the public and reduce smog in our air.”
Every engine sold in or imported into the U.S. must be covered by a valid EPA-issued certificate of conformity. When applying for a certificate of conformity, an applicant must certify to EPA that it followed appropriate testing, certification, record-keeping and reporting requirements to ensure its products will meet applicable federal emission standards to control air pollution. Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides, which can cause respiratory illness, aggravate asthma and contribute to the formation of ground-level ozone or smog.
Through information disclosed by the company, EPA discovered that MTU had obtained EPA certificates of conformity without conducting valid testing. EPA learned that MTU had installed a catalytic converter onto its prototype engine during testing to reduce emissions of pollutants. MTU had also performed maintenance during durability testing on the same engine, but had not reported this to EPA, a violation of testing regulations.
Selling or importing engines that are not covered by valid certificates of conformity is a violation of the Clean Air Act. Based on MTU’s disclosures, EPA voided the certificates of conformity covering these engines on Feb. 23, 2015. MTU violated the Clean Air Act by selling and importing the engines, which, because of the voiding, were not covered by a valid certificate of conformity as required by law. MTU has worked with EPA to take steps to prevent these violations from occurring in the future.
This settlement is part of an ongoing effort by EPA to ensure that all vehicles and engines meet federal emission limits for harmful pollution. The Clean Air Act requires that all vehicles have EPA-issued certificates of conformity prior to being imported or sold in the U.S. to demonstrate that they meet federal emission standards.
MTU America Inc. based in Novi, Michigan, and formerly known as Tognum America Inc. is a wholly-owned subsidiary of Rolls-Royce Power Systems AG, a German corporation. MTU manufactures non-road, off-highway engines for the North American market for locomotive, marine, construction and defense uses.
The consent decree, lodged in the U.S. District Court for the District of Columbia, is subject to a 30-day public comment period and approval by the federal court. The consent decree can be viewed at www.justice.gov/enrd/Consent_Decrees.html.
More information on the settlement: http://www2.epa.gov/enforcement/mtu-america-inc-clean-air-act-settlement
For a list of certificates of conformity voided by the EPA: http://epa.gov/otaq/motor-void.htm
Laredo Jury Convicts Bus Passenger of Heroin SmugglingRead the Press Release
LAREDO, Texas – Altagracia Guadalupe Vargas, 28, of Laredo, has been convicted of conspiracy and possession with the intent to distribute Heroin, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict following a three-day trial and approximately one hour deliberation.
The jury heard that one Dec. 12, 2014, Vargas conspired to smuggle approximately 3.5 kilograms of heroin through the U.S. Border Patrol (BP) checkpoint Interstate 35. Vargas was a passenger on a Turimex bus and attempted to smuggle the black-tar heroin in the inner linings of two carry-on bags. Vargas was questioned and gave multiple inconsistent statements.
At trial, the government presented testimony from law enforcement and other experts who explained the discovery of the heroin and its value of more than $100,000.
Vargas testified in her defense and claimed no knowledge of the drugs and that she believed the bags contained computer tools that were concealed to prevent theft. She said the bags belonged to a man named “Don Tono,” which contradicted her earlier statement that the bag belonged to her sister. Vargas also testified she received $50 from Don Tono for this trip. However, the government demonstrated that she had actually paid $75 of her own money for the bus ticket, which would have resulted in a $25 loss.
U.S. District Judge Diana Saldana presided over trial. Sentencing will be scheduled at a later date, at which time Vargas faces minimum of 10 years and up to life in federal as well as a possible $10 million fine.
The charges are the result of an investigation by Border Patrol, Drug Enforcement Administration and Customs and Border Protection. Assistant U.S. Attorneys Alfredo De La Rosa and Sanjeev Bhasker prosecuted the case.
KC Man Sentenced for Conspiracy to Sell False ID Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy that produced and sold thousands of false identification documents to illegal aliens.
Luis Daniel Cabrera-Guzman, also known as “Driver,” 30, a citizen of Mexico residing in Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Cabrera-Guzman to forfeit $403,700 to the government, which represents the total proceeds from the sale of at least 7,122 counterfeit identification documents during this criminal enterprise. Cabrera-Guzman must also forfeit to the government $9,376 that was seized by law enforcement officers at the time of his arrest, and which was obtained as the proceeds of his criminal conduct.
Cabrera-Guzman pleaded guilty on Nov. 4, 2014, to his role in the conspiracy to provide false identification documents. According to court documents, Cabrera-Guzman has been illegally living in the United States periodically since 2001. He was deported in May 2009 and June 2009 and illegally reentered the country.
Cabrera-Guzman admitted that he participated in a conspiracy with Eriberto Moises Medina-Aranda, 40, of Rayville, Mo., Ulises Montiel-Lazcano, 35, of Merriam, Kan., Cesar Mujica-Aranda, also known as “Oscar Gomez,” 25, of Liberty, Mo., and Bernardino Bautista-Hernandez, 32, also known as “Brujo,” of Kansas City, Mo., all of whom are citizens of Mexico, from Sept. 1, 2013, to Feb. 21, 2014, to produce and distribute thousands of false and counterfeit identification documents that were sold to aliens unlawfully residing and working within the United States.
Medina-Aranda, Montiel-Lazcano, Mujica-Aranda and Bautista-Hernandez all have pleaded guilty to their roles in the conspiracy in a separate but related case and await sentencing.
Mujica-Aranda admitted that he managed the production of counterfeit identification documents at his Liberty apartment. He managed the production of the false identification documents and sold the documents to numerous street level dealers, such as Bautista-Hernandez and Cabrera-Guzman. Mujica-Aranda produced fraudulent Lawful Permanent Resident cards, counterfeit Social Security cards, and false driver’s licenses from various states within the United States as well as Mexican states. Conspirators produced and sold thousands of false identification documents to illegal aliens so that the illegal aliens could stay and work within the United States.
Cabrera-Guzman admitted that he was one of the street-level dealers who illegally sold counterfeit identification documents. The street dealers would typically pay approximately $50 for each counterfeit identification document and they would keep any excess proceeds they were able to obtain from the sale of the counterfeit documents. Cabrera-Guzman sold sets of fraudulent Lawful Permanent Resident cards and counterfeit Social Security cards for approximately $100 per document set. (The newer versions of the updated Lawful Permanent Resident cards sold for more money.) Cabrera-Guzman sold false driver’s licenses from various states within the United States as well as Mexican states for about $100 each. He also sold false Mexican consular identification cards for approximately $100 each and fake Kansas City, Mo., liquor licenses for approximately $100.
On Jan. 30, 2014, Mujica-Aranda threw away a white plastic bag containing shredded pieces of fraudulent identity documents in a trash can at a gas station at St. John Avenue and Belmont in Kansas City, Mo. Early the next morning, a federal agent located the bag in the trash can. The bag contained shredded pieces of fraudulent identification documents, and weighed approximately two pounds. Each piece was approximately the size of a small paper clip, and the shredded pieces were immediately recognizable as fraudulent Lawful Permanent Resident cards, Social Security cards, Missouri non-driver’s licenses and Kansas identification cards. The agent also discovered two reels of depleted color card printer ribbon within the shredded pieces. One reel had images of fraudulent Lawful Permanent Resident cards.
Investigators secured a total of 16 reels of depleted color card printer ribbons weighing a total of 24 pounds, which were seized from a dumpster located at a gas station, a residence in Liberty, Mo., and a storage unit in Excelsior Springs, Mo. A United States Secret Service forensic testing lab evaluated these ribbons and was able to ascertain that the ribbons contained front and back images of 3,185 Lawful Permanent Resident cards.
These cases are being prosecuted by Special Assistant U.S. Attorney Trey Alford. They were investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of the Inspector General, the Kansas Department of Revenue – Office of Special Investigations, the Missouri Department of Revenue – Compliance Investigation Bureau and the Clay County, Mo., Prosecuting Attorney’s Office.
Justice Department Settles Lawsuit Alleging Discrimination Against Families with Children at Apartment Complexes in Kansas and MissouriRead the Press Release
The Justice Department announced today that Brisben Chimney Hills Limited Partnership and JRK Residential America LLC, the owners and the former manager of the Reserve apartment complex in Lenexa, Kansas, together with their named partner and agents, have agreed to pay $170,000 to settle a lawsuit alleging violations of the Fair Housing Act (FHA). The lawsuit alleged that defendants instituted policies at the Reserve and at other properties in Kansas and Missouri that discriminated against families with children. The lawsuit also alleged that a family was forced to leave the Reserve after they complained to management about the overly-restrictive policies.
Under the proposed consent decree, which must still be approved by the U.S. District Court of Kansas, the defendants will pay $60,000 to the family that initiated the original complaint filed with the U.S. Department of Housing and Urban Development (HUD), $100,000 into a victim fund to compensate other aggrieved families and $10,000 to the United States as a civil penalty. In addition, the proposed consent decree prohibits the defendants from discriminating in the future against families with children and requires the defendants to receive training on the requirements of the FHA.
“For over twenty-five years, the Fair Housing Act has prohibited housing providers from discriminating against families with children,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Many parents are already struggling to find affordable housing for their families, and they should not also have to face discrimination because they have children.”
“Kansas families with children deserve the right to live where they choose and to be free from housing discrimination,” said U.S. Attorney Barry R. Grissom of the District of Kansas.
The lawsuit, also filed today, arose from a complaint filed with HUD by a family that was living at the Reserve apartments. The owners and operators of the Reserve instituted a policy that discriminated against families with children because it unreasonably restricted the activities of children, including a policy that required that anyone under the age of 16 be physically accompanied by an adult at all times. After the family complained about the policy, their lease was not renewed and they were forced to leave the Reserve. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department. The United States’ complaint alleges that the defendants violated the family’s rights, that the restrictive policies discriminated against other families with children and that the defendants engaged in a pattern or practice of discrimination or denied rights protected by the FHA to a group of persons.
“Overly restrictive housing policies for families with children are illegal, and prevent them from fully enjoying the place they call home,” said HUD Assistant Secretary Gustavo Velasquez of Fair Housing and Equal Opportunity. “HUD will continue to work with the Department of Justice to take action against property owners and landlords whose policies violate the Fair Housing Act.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.usdoj.gov/crt/housing or www.hud.gov/fairhousing.
Jackson Tax Preparer Indicted for Preparing False Income Tax ReturnsRead the Press Release
Jackson, TN – The operator of Carol’s Income Tax Service was charged today with 123 counts of fraud for preparing false and fictitious income tax returns.
Carol Munoz, 42, of Jackson, TN was indicted for preparing false and fraudulent tax returns, operating an unlicensed money transmitting business, and money laundering.
According to the indictment, between April 15, 2010 and April 16, 2013, Munoz prepared 123 fraudulent tax returns, nearly all of which claimed false dependents. The returns prepared by Munoz also claimed tax credits to increase the amount of income tax refund, including the Child Tax Credit, Additional Child Tax Credit and Child Care Credit, for which the taxpayers did not qualify.
This case was investigated by the Internal Revenue Service – Criminal Division and Homeland Security Investigations. Assistant U.S. Attorney Matt Wilson is prosecuting the case for the government.
Indictment Charges Two with Using Phony Concert Promotions to Scam InvestorsRead the Press Release
PHILADELPHIA – Marc Hubbard, 46, of Cornelius, North Carolina, and Franklin Green, 45, of Washington, DC, were charged by indictment, unsealed today, in a conspiracy to defraud victims who thought they were investing in concert promotions. The defendants are each charged with one count of conspiracy and seven counts of wire fraud, announced United States Attorney Zane David Memeger. The fraud scheme involved approximately $2 million.
Hubbard was president of Sports Dimensions, Inc. (“SDI”) which purported to specialize in concert promotions and nightclub management, and was also president of Castle Entertainment which purported to specialize in nightclub management. Green, a lawyer in Washington, DC, was formerly a lawyer in Philadelphia, PA.
According to the indictment, Hubbard portrayed himself and SDI as highly successful concert promoters and falsely represented approximately $14,277,068 in ticket sales from July 2006 to January 10, 2008. He allegedly promised investors an approximate return of 25-30% on their short-term investments with SDI. Green was Hubbard’s attorney and allegedly negotiated or assisted in the negotiation of the contracts with Hubbard’s investors. Hubbard allegedly told investors that their funds were protected by a $10 million surety bond which was offered as collateral on most of the investors’ contracts but he did not tell them that the surety bond was bogus. It is further alleged that Hubbard provided investors with false documentation of his own financial solvency as well as SDI’s and Castle’s.
According to the indictment, instead of using the investors’ funds for concert promotions, Hubbard used the money to pay earlier investors and to pay his personal and business expenses. In total, it is alleged that investors gave Hubbard approximately $2,125,000 to invest and only received approximately $326,500 in return. Hubbard allegedly took at least $1,798,500 from his victims and, of that amount, Green took approximately $333,000.
If convicted, the defendants each face a maximum possible statutory sentence of 20 years in prison with a possible advisory sentencing guideline range of 33 to 57 months in prison, restitution, a fine of up to $250,000, an $800 special assessment, and three years of supervised release. The indictment also contains a notice of forfeiture for $2,125,000.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jennifer C. Barry.
Huntley Contractor Charged with Mail Fraud, Causing False Statements to Be Made on Forms Required by Erisa, and Failing to Collect and Pay over $600,000 in Federal TaxesRead the Press Release
ROCKFORD — A Huntley, Ill., concrete contractor was charged today by a federal grand jury in a twenty-seven count indictment. THOMAS MANNING, 58, president of T. Manning Concrete, Inc., located in Huntley, was charged with five counts of mail fraud, five counts of causing false statements to be made on forms required by ERISA, sixteen counts of failing to collect and pay FICA taxes from employee wages, and one count of obstructing the IRS by causing false W-2s and Form 941s to be filed with the IRS.
As alleged in the indictment, Manning, as president of T. Manning Concrete, Inc., hired laborers and cement masons from Unions in Northern Illinois. The Unions provided benefits to their members through various employee benefit plans. Each benefit plan was required to file annual reports stating the total contributions received. T. Manning Concrete was required, by collective bargaining agreements, to submit monthly reports to the benefit plans that stated the number of hours each covered employee worked and to turn over the company’s contributions to those benefit plans. According to the indictment, beginning in 2006, Manning devised a scheme to defraud the benefit plans by understating the number of hours worked by T. Manning Concrete’s covered employees in the monthly reports, and under-paying the monthly contributions that were required on behalf of its covered employees. The indictment also alleges that in order to conceal the understatement of hours and to defraud the benefit plans, Manning caused the covered employees to be paid for the additional hours “under the table,” using checks drawn upon non-payroll bank accounts under Manning’s control. It is alleged that Manning used the U.S. Mail to send the reports and contribution checks to the benefit plans.
By falsely reporting the number of hours worked by covered employees, the indictment claims, Manning caused the benefit plans to make false statements in their annual reports they were required by ERISA to file. The indictment further charges that between 2007 and 2010, Manning, as president of T. Manning Concrete, failed to collect, account for, and pay over a total of approximately $600,680.12 for the employees’ share of Federal Insurance Contribution Act (FICA) taxes due to the IRS on the wages paid using “under the table” checks. Further, it is alleged that from January 2007 through December 2010, Manning obstructed the administration of the internal revenue laws by using the non-payroll bank accounts to pay wages without reporting those wages or withholding and paying over FICA or federal income taxes on those wages to the IRS, thereby causing false W-2s and Form 941s to be filed with the IRS.
Each count of mail fraud carries maximum penalties of 20 years in prison and a $250,000 fine, or an alternate fine of twice the loss or twice the gain derived from the offense, whichever is greater. Each count of a false statement in the benefit plans’ annual reports carries maximum penalties of 5 years’ imprisonment and a $250,000 fine. Each count of willful failure to collect or pay taxes carries a maximum sentence of 5 years’ imprisonment, and a $10,000 fine. Each count also carries a maximum period of up to 3 years of supervised release following imprisonment. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Manning will be arraigned before United States Magistrate Judge Iain D. Johnston on March 31, 2015, at 11:00 a.m. in U.S. District Court in Rockford.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-In-Charge of the Chicago Region of the U. S. Department of Labor, Office of Inspector General; Jeffrey A. Monhart, Director for the Chicago Region of the U.S. Department of Labor - Employee Benefits Security Administration; Stephen Boyd, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation Division in Chicago; and Tony Gomez, Postal Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Indictment
Henrico Woman Pleads Guilty to Health Care FraudRead the Press Release
RICHMOND, Va. – Kateresea L. Ford, 42, of Glen Allen, Virginia, pleaded guilty today to one count of Health Care Fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Mark R. Herring, Virginia Attorney General, made the announcement after the plea was accepted by U.S. Magistrate Judge David J. Novak.
On March 9, 2015, the United States filed a one count criminal information charging Ford with Health Care Fraud in violation of 18 .U.S.C. § 1347. Ford faces a maximum penalty of 10 years in prison when sentenced on July 9, 2015 by U.S. District Court Judge Robert E. Payne. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Ford admitted that she owned and operated Delta House LLC, a company authorized to provide services to Medicaid recipients under the age of 21. Delta House provided a community-based residential program for pregnant or parenting teenage mothers to allow them to complete their education and transition to independent living as parents. Ford submitted fraudulent claims for payment representing that 739 units of community-based residential services had been provided to twenty-one Medicaid recipients, when, in fact, no such services had been provided. As a result of Ford's fraud, Medicaid was overbilled $81,216.08.
This case was investigated by the Medicaid Fraud Control Unit of Attorney General Mark Herring's Office. Assistant U.S. Attorney Heather L. Hart and Senior Assistant Attorney General and Special Assistant United States Attorney David W. Tooker of the Virginia Attorney General's Office are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-041.
Greenbrier County men plead guilty to federal heroin related chargesRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that two men pled guilty in federal court in Beckley before United States District Judge Irene C. Berger. Harry Franklin Huffman II, 25, of Lewisburg, pled guilty to using a phone to facilitate a drug felony, admitting that on September 23, 2014, in Lewisburg, he had a telephone conversation with a confidential informant to help set up a drug deal. Shortly after the telephone conversation, Huffman sold heroin to the informant.
Kip Aaron Sears, 26, from the Lewisburg area, also pled guilty to using a phone to facilitate a drug felony. Sears admitted that on September 30, 2014, in Lewisburg, he used a telephone to help arrange a drug deal. After the telephone conversation, Sears sold heroin to an informant.
Both Huffman and Sears face up to four years and a $250,000 fine when they are sentenced on July 8, 2015.
These cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force. They are part of the Greenbrier Valley Heroin and Pill Initiative, in furtherance of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Green Bay Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin announced that on March 23, 2015, Joseph J. Valdez (age: 29) of Green Bay, Wisconsin, appeared in federal court in Green Bay and pleaded guilty to a single count of sexual exploitation of a child in violation of Title 18, United States Code, Section 2251(a).
Valdez used his smart phone to entice, persuade, and coerce scores of underage girls to send him sexually explicit photographs of themselves under the pretense that he was a “modelling agent.” Valdez used text messaging applications and the messenger service “Kik” to contact hundreds of underage girls, some as young as nine years old. After receiving sexually explicit photographs of the underage girls, Valdez would oftentimes blackmail the victims into sending increasingly graphic images under the threat of forwarding the sexually explicit images already in his possession to the girls’ parents, friends, and school administrators. Several victims threatened suicide in response. Victims included underage girls from several counties in northeast Wisconsin, as well as girls from across the United States.
The charge to which Valdez pleaded guilty carries a mandatory minimum sentence of 15 years and a maximum of 30 years imprisonment, a $250,000 fine, and between 5 years and a lifetime of supervised release. Valdez is scheduled to be sentenced on June 22, 2015. He remains incarcerated pending that hearing.
The case was investigated by the Seymour Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Grandview Business Owner Pleads Guilty to $3 Million Extortion, Money Laundering SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Grandview, Mo., lawn care company pleaded guilty in federal court today to a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.
Shelton E. Lewis, also known as “Steve Johnson” or “C,” 39, of Grandview, pleaded guilty before U.S. District Judge Howard F. Sachs to extortion and money laundering.
Lewis is the owner of Green Results Landscape & Lawncare, LLC. Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August 2012, however, that changed. Lewis began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, the indictment says, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.
Lewis admitted today that he made multiple threats to injure that company’s owner, RW, as part of an extortion scheme.
The extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact and did not return with the agreed-upon cocaine. Lewis told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, but only received a bag of flour.
In August 2012, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.
In the fall of 2012, Lewis told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money.
Lewis told RW that the attorney would contact him in the future. When a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW paid the additional, exorbitant sum.
RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.
These threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.
After receiving the money from his victim, Lewis repeatedly engaged in a series of financial transactions involving the proceeds of a criminal offense. For example, Lewis paid $167,000 for a 2012 Lamborghini Gallardo, $61,000 for a 2005 Bentley, $65,500 for a 2007 Aston Martin, $45,595 for a 2011 Aston Martin and $23,000 for a 2013 Chevrolet Camaro; made multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., totaling more than $137,000; spent $27,708 to purchase jewelry, sunglasses, perfume and clothing from Gucci in Las Vegas; purchased a Rolex watch; and paid $100,000 to pay off a mortgage.
Under federal statutes, Lewis is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
By pleading guilty today, Lewis must forfeit to the government a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that has been seized from his bank accounts and the vehicles he purchased (also including a 2006 Mercedes Benz).
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Four Family Members Sentenced to Prison for Defrauding IRS of over $5 MillionRead the Press Release
BOSTON – Four family members who operated a temporary employment agency in Lowell were sentenced yesterday on charges relating to a scheme to hide over $25 million in employee wages from the Internal Revenue Service.
Margaret Mathes, 67, was sentenced by U.S. District Court Judge Sr. Mark L. Wolf to 80 months in prison and three years of supervised release. Her daughter, Bosea Prum, 47, was sentenced to two years in prison and three years of supervised release. Prum’s brother-in-law, Sam Pich, 63, was given the same sentence. Prum’s husband, Thaworn Promket, 52, was sentenced to one year and a day in prison and three years of supervised release. All defendants were ordered to pay, jointly and severally, over $6 million in back taxes and workers compensation premiums. The Court further required Mathes and Prum to pay, jointly and severally, $100,000 within the next 45 days, and Prum and Promket to pay over $500,000 in additional back taxes for amounts underreported on their personal tax returns.
In August 2014, all four defendants pleaded guilty to conspiracy to defraud the IRS, mail fraud, and to violating laws against structuring monetary transactions to avoid reporting requirements. Prum also pleaded guilty to 10 counts of filing false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions. Pich also pleaded guilty to 17 counts of assisting the filing of false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions. Promket also pleaded guilty to seven counts of filing false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions.
The charges arose from a temporary employment agency in Lowell that the defendants operated that provided unskilled labor to local companies, including those in the packaging and food services industries. Between 2004 and 2009, the defendants reported to the IRS that their temporary employees made about $2.2 million in wages, when the real figure was nearly $30 million. The defendants also defrauded the agency’s workers compensation insurer, Granite State Insurance Co., by hiding the true number of temporary workers the defendants employed, thus avoiding about $880,000 in insurance premiums. As part of the conspiracy to help cover up the unreported worker wages, the defendants withdrew cash from about 20 bank accounts and paid their temporary workers “off the books.” To further ensure that they would not be caught, the defendants structured these bank transactions – over 4300 in all – so they could withdraw the cash needed to pay the workers without triggering federal reporting requirements.
In the weeks leading up to the sentencing hearing, the government also developed evidence that defendant Mathes, with the help of her daughter, tried to mislead the Court about Mathes’s medical condition. Mathes had recently been diagnosed with possible Alzheimer’s Disease, after which she greatly exaggerated her symptoms in an effort to win a shorter sentence. At sentencing, the Court imposed an obstruction enhancement on both Mathes and her daughter, Prum.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement. The case was prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Fort Myers Residents Sentenced in False Tax Return SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Amaury Jimenez Brito (37, Fort Myers) to 21 months in federal prison for conspiracy to defraud the United States with false claims and theft of government property. The Court also ordered Brito to pay $7,924 in restitution to the IRS. He pleaded guilty to the charges on November 6, 2014.
According to court documents, between April 1, 2014, and May 22, 2014, Brito and his co-defendant, Yidelka Caceres, conspired with each other and with others to file approximately 264 false tax returns using the personal identifying information of other individuals without their permission. The total amount of tax refund payments sought from the IRS for the returns was more than $1.37 million. However, the IRS rejected the majority of the filings and Brito and Caceres received approximately $7,924 in proceeds from the offense.
In addition, on April 18, 2014, Brito illegally sold two U.S. Treasury checks to a confidential informant. On May 8, 2014, Brito and Caceres illegally sold another U.S. Treasury check to the informant. Neither Brito nor Caceres was the payee on the Treasury checks and they did not have permission to convert the funds for their own use or to sell or transfer the checks.
Caceres (39, Fort Myers) previously pleaded guilty for her role in this case. On February 13, 2015, she was sentenced to 90 days home confinement, a five year term of probation, 100 hours of community service, a $448 fine, and $7,924 in restitution. In addition, the Court ordered Caceres to forfeit $5,932 seized from her home at the time of her arrest, representing proceeds she obtained as a result of her conduct.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney David G. Lazarus.