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Wednesday 28 January 2015
Pinedale Man Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Alvin Charley, 36, an enrolled member of the Navajo Nation who resides in Pinedale, N.M., pleaded guilty this morning to a voluntary manslaughter charge. Under the terms of the plea agreement, Charley will be sentenced to 120 months in federal prison followed by a term of supervised release to be determined by the court.
According to court filings, Charley killed another Navajo man on Aug. 15, 2014, by stabbing him in the chest. The crime occurred on the Navajo Indian reservation in McKinley County, N.M., during a fight between Charley and the victim.
During today’s proceedings, Charley pled guilty to a felony information charging him with voluntary manslaughter. In entering his guilty plea, Charley admitted stabbing the victim in the chest during a fight that began after the two men had been drinking alcohol and arguing.
Charley has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque and Gallup offices of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting this case.
Perry County Pharmacist Arrested on Federal Drug ChargeRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and David Downing, Assistant Special Agent in Charge of the Drug Enforcement Administration (DEA) announced unsealing of a Complaint and the arrest this morning of Christopher Watson, a Perry County pharmacist, charging him with illegal distribution of a controlled substance. Watson turned himself in to the DEA this morning and was taken into custody. Watson made his initial appearance before United States Magistrate Judge H. David Young this afternoon and is being held pending his bond hearing scheduled for Thursday, January 29, 2015, at 2:00 p.m. before Judge Young.
“Arrests such as the arrest of pharmacist Christopher Watson today are never taken lightly by this office,” stated Thyer. “While we recognize the impact this will have on people who have legitimate prescriptions, it was nonetheless necessary to stop the flow of prescription medications to persons who obtained them without a valid prescription. When a pharmacist knowingly fills a falsified prescription, medications are dispensed without appropriate oversight by medical professionals and subsequently are not used according to precise instructions meant to protect the user. Without these protections, the risk of side effects, addiction, and even death are greatly multiplied. It is imperative that we take action to ensure that controlled medications are not putting lives at risk.”
“It is disheartening when trusted professionals like your local pharmacist are engaged in the diversion of controlled substances,” said DEA Assistant Special Agent in Charge David Downing. “All DEA Registrants have an obligation to ensure that medications are getting into the hands of legitimate patients. Any registrant who violates or blatantly ignores their obligations will be held accountable for allowing these good medicines to get into the hands of drug dealers and addicts. The arrest of Christopher Watson and the issuance of an Immediate Suspension Order for the Perry County Food and Drug store is the result of DEA’s continued commitment to hold accountable those who participate in illegally dispensing controlled substances in our communities,” stated Downing.
According to the Affidavit filed with the Complaint, beginning in the Fall of 2014, the Drug Enforcement Administration (DEA), in connection with state and local law enforcement agencies, began an investigation into the unlawful distribution of Schedule II and III pharmaceutical narcotics by pharmacist Christopher Watson at the Perry County Food and Drug store in Perryville, Arkansas. Information received was that Mr. Watson was distributing Scheduled narcotics to individuals who had no prescriptions or false prescriptions.
On November 7, 2014, based on the information received during the investigation, DEA agents fabricated a prescription for Hydrocodone and Alprazolam (Xanax) tablets. The prescription was utilized during an undercover operation at Perry County Food and Drug. A DEA agent, working in an undercover capacity, presented a fabricated prescription to Mr. Watson at the Perry County Food and Drug store pharmacy. Mr. Watson reviewed the prescription and acknowledged that it was a forged prescription by informing the undercover agent to “work on” the official DEA registration number, and giving him specific instructions of how to make the prescription look like a valid prescription. Mr. Watson filled the fabricated prescription with (120) Hydrocodone tablets and (60) Alprazolam (Xanax) tablets.
The operation resulted in the issuance of an Immediate Suspension Order to the Perry County Food and Drug store. This Order was issued by the Administrator of DEA on the grounds that the pharmacy constitutes an imminent danger to public health and safety, and it immediately suspends the DEA Registration of the Perry County Food and Drug store required to dispense controlled substances. As a result of this Order, the Perry County Food and Drug store is prohibited from possessing and/or dispensing controlled substances pending a federal administrative hearing.
The investigation is ongoing and is conducted by DEA. The case is being prosecuted by Deputy Criminal Chief Anne Gardner.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. Watson is presumed innocent until proven guilty.
Orlando Man Sentenced to More Than 27 Years for Stealing Retirement Funds and Insurance Proceeds and for Filing Fraudulent Tax ReturnsRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Joseph Witchard (56, Orlando) to 27 years and 7 months in federal prison for mail fraud, filing false claims against the United States, theft of government property, and aggravated identity theft. The Court also ordered him to pay restitution in the amount of $145,673.83 to his victims. A federal jury found Witchard guilty on November 4, 2014.
According to evidence presented at trial, Witchard orchestrated two mail fraud schemes, one to steal retirement funds and life insurance proceeds, and another to file fraudulent tax returns. During both schemes, he used identities that had been stolen from a variety of sources. The personal identifying information of more than 60 victims was found during a search of Witchard’s residence in February 2010. Witchard, and others, negotiated the retirement, life insurance, and tax refund checks at local businesses, including car dealerships.
IRS Criminal Investigation Special Agent in Charge James D. Robnett said, “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law. Mr. Witchard has been victimizing the citizens of Florida and the United States for decades as shown by his previous convictions for tax related crimes. IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting these types of individuals.”
This case was investigated by the United States Postal Inspection Service, IRS - Criminal Investigation, and the United States Secret Service. It was prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Orange Park Man Sentenced for Possession of Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Ronald Boike (51, Orange Park) to three years and four months in federal prison for possessing child pornography. He pleaded guilty on September 10, 2014.
According to the plea agreement, Boike was involved in an online relationship with a minor for at least two years. Boike sent sexually explicit pictures of himself to the minor in order to coax her to produce and send him pornographic pictures and videos of herself. During ongoing conversations with the minor, Boike saved pornographic pictures and videos of the minor on his family’s computer. His wife learned of his relationship with the minor after discovering the videos on the family’s computer. Boike’s wife subsequently filed a complaint with the Federal Bureau of Investigation.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Malisa Chokshi.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Opening Statement of Attorney General-Designate Loretta E. Lynch at U.S. Senate Confirmation HearingRead the Press Release
Attorney General-Designate Loretta E. Lynch released the following statement today at the opening of the U.S. Senate confirmation hearing:
“Thank you, Chairman Grassley, Senator Leahy, and distinguished members of the Committee. I am honored to appear before you in this historic chamber, among so many dedicated public servants. I want to thank you for your time this morning – and President Obama for the trust he has placed in me by nominating me to serve as Attorney General of the United States.
“It is a particular privilege to be joined today by members of my family – including my husband, Stephen Hargrove, my father, Rev. Lorenzo Lynch, my brother, Rev. Leonzo Lynch and his wife NiCole, as well as several other family members who are here today.
“Mr. Chairman, one of the privileges of my position as United States Attorney for the Eastern District of New York is welcoming new attorneys into the office and administering to them the oath of office. It is a transformative moment in the life of a young prosecutor. As they stand before me, prepared to pledge their honor and their integrity, I remind them that they are making their oath not to me, not to my office, or even to our Attorney General, but to our Constitution, the fundamental foundation for all that we do. It is that document and the ideals embodied therein to which I have devoted my professional life. Senators, if confirmed as Attorney General I pledge to you and to the American people that the Constitution, the bedrock of our system of justice, will be my lodestar as I exercise the power and responsibility of that position.
“I owe much to those who have worked to make its promise real for all Americans, beginning with my own family. All of them – and so many others – have supported me on the path that has brought me to this moment, not only through their unwavering love and support, but through their shining examples, and the values that shaped my upbringing.
“My mother, Lorine, who was unable to travel here today, is a retired English teacher and librarian for whom education was the key to a better life. She recalls people in her rural community pressing a dime or a quarter into her hands to support her college education. As a young woman she refused to use segregated restrooms because they did not represent the America in which she believed. She instilled in me an abiding love of literature and learning, and taught me the value of hard work and sacrifice. My father, Lorenzo, is a fourth-generation Baptist preacher who in the early 1960’s opened his Greensboro church to those planning sit-ins and marches, standing with them while carrying me on his shoulders. He has always matched his principles with action – encouraging me to think for myself, but reminding me that we all gain the most when we act in service to others.
“It was the values my parents instilled in me that led me to the Eastern District of New York, and from my parents I gained the tenacity and resolve to take on violent criminals, to confront political corruption and to disrupt organized crime. They also gave me the insight and compassion to sit with the victims of crime and share their loss. Their values have sustained me as I have twice had the privilege of serving as United States Attorney, leading an exceptional office staffed by outstanding public servants, and these values guide and motivate me even today.
“Should I be confirmed as Attorney General, my highest priorities will continue to be to ensure the safety of our citizens, to protect the most vulnerable among us from crime and abuse, and to strengthen the vital relationships between America’s brave law enforcement officers and the communities they are entrusted to serve.
“In a world of complex and evolving threats, protecting the American people from terrorism must remain the primary mission of today’s Department of Justice. If confirmed, I will work with colleagues across the executive branch to use every available tool to continue disrupting catastrophic attacks against our homeland and bringing terrorists to justice. I will draw upon my extensive experience in the Eastern District of New York, which has tried more terrorism cases since 9/11 than any other office. We have investigated and prosecuted terrorist individuals and groups that threaten our nation and its people – including those who have plotted to attack New York City’s subway system, JFK airport, the Federal Reserve Bank of New York, and U.S. troops stationed abroad, as well as those who have provided material support to foreign terrorist organizations. And I pledge to discharge my duties always mindful of the need to protect not just American citizens but also American values.
“If confirmed, I intend to expand and enhance our capabilities in order to effectively prevent ever-evolving attacks in cyberspace, expose wrongdoers, and bring perpetrators to justice. In my current position, I am proud to lead an office that has significant experience prosecuting complex, international cybercrime, including high-tech intrusions at key financial and public sector institutions. If I am confirmed, I will continue to use the combined skills and experience of our law enforcement partners, the department’s Criminal and National Security Divisions, and the United States Attorney community to defeat and to hold accountable those who would imperil the safety and security of our citizens through cybercrime.
“I will also do everything I can to ensure that we are safeguarding the most vulnerable among us. During my tenure as U.S. Attorney, the Eastern District of New York has led the prosecution of financial fraudsters who have callously targeted hard working Americans, including the deaf and the elderly, and stolen their trust and their hard-earned savings. We have taken action against abusers in over one hundred child exploitation and child pornography cases, and have prosecuted brutal international human trafficking rings that sold victims as young as 14 and 15 years old into sexual slavery. If confirmed as Attorney General, I will continue to build upon the department’s record of vigorously prosecuting those who prey on those most in need of our protection and I will continue to provide strong and effective assistance to survivors who we must both support and empower.
“Throughout my career as a prosecutor, it has been my honor to work hand in hand with dedicated law enforcement officers and agents who risk their lives every day in the protection of the communities we all serve. I have served with them. I have learned from them. I am a better prosecutor because of them. Few things have pained me more than the recent reports of tension and division between law enforcement and the communities we serve. If confirmed as Attorney General, one of my key priorities would be to work to strengthen the vital relationships between our courageous law enforcement personnel and all the communities we serve. In my career, I have seen this relationship flourish – I have seen law enforcement forge unbreakable bonds with community residents and have seen violence-ravaged communities come together to honor officers who risked all to protect them. As Attorney General, I will draw all voices into this important discussion.
“In that same spirit, I look forward to fostering a new and improved relationship with this committee, the United States Senate, and the entire United States Congress – a relationship based on mutual respect and constitutional balance. Ultimately, I know we all share the same goal and commitment: to protect and serve the American people.
“Now, I recognize that we face many challenges in the years ahead. But I have seen – in my own life and in my own family – how dedicated men and women can answer the call to achieve great things for themselves, for their country, and for generations to come.
“My father – that young minister who carried me on his shoulders – has answered that call. As has my mother, that courageous young teacher who refused to let Jim Crow define her. Standing with them are my uncles and cousins who served in Vietnam – one of whom is with me here today - and my older brother, a Navy SEAL, who answered that call with their service to our country.
“As I come before you today in this historic chamber, I still stand on my father’s shoulders, as well as on the shoulders of all those who have gone before me and who dreamed of making the promise of America a reality for all and worked to achieve that goal.
“I believe in the promise of America because I have lived the promise of America.
“If confirmed to be Attorney General of the United States, I pledge to all of you and to the American people that I will fulfill my responsibilities with integrity and independence. I will never forget that I serve the American people, from all walks of life, who continue to make our nation great – as well as the legacy of all those whose sacrifices have made us free. And I will always strive to uphold the trust that has been placed in me to protect and defend our Constitution, to safeguard our people, and to stand as the leader and public servant that they deserve.
“Thank you all, once again, for your time and your consideration. I appreciate the opportunity to speak with you today. I look forward to your questions – and to all that we may accomplish in the days ahead, together, in the spirit of cooperation, shared responsibility, and justice.”
North Carolina Man Indicted for Transporting a Minor for the Purpose of Engaging in ProstitutionRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Ronnie Travis Hall, III (27, Charlotte, NC) with transportation of a minor with the intent that she engage in prostitution. If convicted, he faces a mandatory minimum penalty of 10 years, up to life, in federal prison.
According to court documents, on or about April 9, 2014, Hall knowingly transported a minor victim from Georgia to Florida with the intent that she engage in prostitution. For approximately two months, Hall allegedly forced the minor to work as a prostitute by having her walk the streets and by advertising her services on the Internet. During this time, he transported the minor victim from Charlotte, to Atlanta, and ultimately to Orlando. Hall kept all of the money earned by the victim and used it for himself and the victim’s expenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Carolina Man Indicted for Transporting A Minor for the Purpose of Engaging in ProstitutionRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Ronnie Travis Hall, III (27, Charlotte, NC) with transportation of a minor with the intent that she engage in prostitution. If convicted, he faces a mandatory minimum penalty of 10 years, up to life, in federal prison.
According to court documents, on or about April 9, 2014, Hall knowingly transported a minor victim from Georgia to Florida with the intent that she engage in prostitution. For approximately two months, Hall allegedly forced the minor to work as a prostitute by having her walk the streets and by advertising her services on the Internet. During this time, he transported the minor victim from Charlotte, to Atlanta, and ultimately to Orlando. Hall kept all of the money earned by the victim and used it for himself and the victim’s expenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Non-Indian Man from Isleta Pueblo Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE—Gabriel Chavez, 32, a non-Indian residing in Isleta Pueblo, N.M., pleaded guilty this morning to a child sexual abusive charge. Under the terms of his plea agreement, Chavez will be sentenced to 30 months in federal prison followed by a term of supervised release to be determined by the court. He will be required to register as a sex offender after completing his prison sentence.
Chavez was arrested on July 29, 2014, on a five-count indictment alleging that he sexually abused two Indian children between Aug. 2012 and July 2013, in Indian Country in Bernalillo County, N.M. Counts 1 through 3 charged Chavez with abusive sexual contact involving a child victim between the age of 12 and 16 years. Counts 4 and 5 charged Chavez with abusive sexual contact involving a second child victim under the age of 12 years.
Today Chavez entered a guilty plea to Count 1 of the indictment charging him with abusive sexual contact involving a child victim between the age of 12 and 16 years. Chavez admitted engaging in sexual contact with the child victim which included touching the victim’s genitals and other parts of her body.
Chavez remains in the custody of the U.S. Marshals Service pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Muskogee Man Pleads Guilty to Cocaine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that RALPH TYRONE CARUTHERS, age 49, of Muskogee, Oklahoma, pled guilty to Possession with Intent to Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
Charges arose from an investigation by the Muskogee Police Department and the Oklahoma Bureau of Narcotics. The defendant was indicted in August, 2014.
The Indictment alleged that on or about July 8, 2014, within the Eastern District of Oklahoma, the defendant, RALPH TYRONE CARUTHERS, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of cocaine, a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered a presentence report to be completed. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Millbrook Man Arrested on Federal Drug, Firearms ChargesRead the Press Release
Montgomery, Alabama - Freddie Lee Parker, Jr., 37 years old, of Millbrook, Alabama was arrested yesterday following grand jury indictments for distribution of crack cocaine and for using and carrying a firearm while distributing the drug, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Parker was arrested at his residence yesterday in an area of Millbrook known as “Sandtown.”
The indictments are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation’s Safe Streets Violent Gang Task Force, along with the Central Alabama Drug Task Force, Elmore County Sheriff’s Office, Millbrook Police Department, and Wetumpka Police Department. The case is being prosecuted by Assistant United States Attorney Verne Speirs.
The FBI’s Central Alabama Violent Gang Safe Streets Task Force has been created to combat the increase in violence in Central Alabama. The Central Alabama Violent Gang Safe Streets Task Force was created to identify, target, arrest, and convict criminals who commit drug trafficking, money laundering, alien smuggling, murder, aggravated assault, robbery, and other violent crimes. This Safe Streets Task Force combines federal, state, and local resources and using these resources to most effectively investigate, arrest, and convict these dangerous criminals.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN CARLOS SALAZAR-GARCIA, age 34, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about November 20, 2014, SALAZAR-GARCIA was found in the United States after having been officially deported and removed on or about February 7, 2014.
SALAZAR-GARCIA faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for April 8, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican National Pleads Guilty to Growing 3,724 Marijuana Plants in the Plumas National ForestRead the Press Release
SACRAMENTO, Calif. —Alejandro Soto-Silva, 22, a Mexican national, pleaded guilty today to cultivation of marijuana and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 30, 2014, United States Forest Service agents and Plumas County Sheriff’s deputies entered a large marijuana cultivation site on the Plumas National Forest near the Soda Creek drainage. Officers located more than 3,700 marijuana plants at the site. Soto-Silva was arrested after attempting to flee. The marijuana cultivation caused significant damage to the land and natural resources of the Plumas National Forest. Law enforcement observed irrigation piping running from a water source to man-made reservoirs used to water the thousands of marijuana plants under cultivation. Rehabilitating and remediating the National Forest habitat injured by the marijuana cultivation will cost the U.S. Forest Service at least $9,500.
This case is the product of an investigation by the United States Forest Service and the Plumas County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Soto-Silva is in custody. He is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on April 15, 2015. Soto-Silva faces a maximum statutory penalty of 20 years in prison and a $1 million fine on the marijuana cultivation charge. He faces a maximum statutory penalty of 10 years and a $250,000 fine on the depredation of public lands and resources charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
McAllen Man Admits to Attempting to Use Government Vehicle to Deliver CocaineRead the Press Release
McALLEN, Texas ‐ Mario Guadalupe Saenz, 27, of McAllen, has pleaded guilty to attempting to possess with intent to distribute approximately nine kilograms of cocaine, announced U.S. Attorney Kenneth Magidson.
On Oct. 9, 2014, Saenz was observed driving a white Dodge Ram with U.S. government license plates registered to the U.S. Department of Agriculture (USDA). Saenz drove the USDA-owned vehicle through an opening in the border fence and retrieved a bag from the brush near the Rio Grande River in Hidalgo County. He used the government vehicle to transport the bag to a business parking lot in McAllen.
He was subsequently arrested as investigators discovered the bag contained approximately 9.39 kilograms of a suspected controlled substance, 1.1 kilograms of which tested positive for the properties of cocaine.
U.S. District Judge Randy Crane, who accepted the guilty plea, has set sentencing for April 9, 2015. At that time, he faces a minimum of 10 years and up to life in federal prison.
Saenz will remain in custody pending that hearing.
The investigation leading to the charges was conducted by Homeland Security Investigations, USDA-OIG and the McAllen Police Department. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
Man Pleads Guilty to Second Degree Murder on the Meskwaki Nation SettlementRead the Press Release
Contact: Steve Young
A man who used a knife to kill another man on the Meskwaki Nation Settlement pled guilty today in federal court in Cedar Rapids.
Jonathan Youngbear, 21, from the Meskwaki Nation Settlement, Iowa, was convicted of one count of second degree murder in “Indian Country.”
In a plea agreement, Youngbear admitted that he stabbed Severn Jefferson twice in the neck and chest with a knife. Youngbear further admitted that the victim bled to death as a result of the stab wounds. At the time he stabbed the victim, Youngbear was under the influence of alcohol and also had methamphetamine in his system.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Youngbear remains in custody of the United States Marshal pending sentencing. Youngbear faces a possible maximum sentence of up to life imprisonment, a $250,000 fine, $100 in special assessments, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Tony Morfitt and Pete Deegan 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/cgi-bin/login.pl. The case file number is 14-CR-00046.
Last of Three Deming Drug Traffickers Pleads Guilty to Federal Methamphetamine ChargesRead the Press Release
ALBUQUERQUE – Sylvia Grado, 31, of Deming, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Sylvia Grado was arrested in July 2014, together with co-defendants Juan Grado, 34, and Carlos Magallanes, 34, also of Deming, N.M., on a seven-count indictment alleging methamphetamine trafficking charges. Count 1 charged the three defendants with conspiracy to distribute methamphetamine in Luna County, N.M., between Oct. 2012 and May 2013. Counts 2 through 6 charged Juan Grado and Magallanes with distributing methamphetamine in Luna County on several occasions. Count 7 charged Sylvia Grado with distributing methamphetamine on May 14, 2013.
During yesterday’s hearing, Sylvia Grado pled guilty to Counts 1 and 7 of the indictment. In her plea agreement, Sylvia Grado admitted that between Oct. 2012 and May 2013, she conspired with Juan Grado and Magallanes to distribute methamphetamine. She further admitted that on May 14, 2013, she distributed approximately 28 grams of methamphetamine to an undercover law enforcement officer.
Juan Grado pled guilty on Jan. 2, 2015, to Counts 1, 3, and 6 of the indictment, and admitted distributing approximately 453 grams of pure methamphetamine. Magallanes pled guilty on Jan. 16, 2015, to Counts 1, 2, 4, and 5 of the indictment, and admitted to conspiring with Juan Grado and others to distribute methamphetamine from Oct. 2012 through Jan. 2013.
At sentencing, Sylvia Grado and Juan Grado each face a mandatory minimum of ten years and a maximum of life in federal prison. Magallanes faces a mandatory minimum of five years and a maximum of 40 years in prison at sentencing. Sylvia Grado remains on conditions of release and under pretrial supervision pending her sentencing hearing, while Juan Grado and Magallanes remain in federal custody pending their sentencing hearings.
This case was investigated by the Las Cruces office of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Laredo Resident Sentenced for Distributing Controlled Substances Near SchoolRead the Press Release
LAREDO, Texas - Romeo Serna Sr., 52, has been ordered to federal prison following his convictions on multiple conspiracies related to the distribution of narcotics within 1,000 feet of school, announced U.S. Attorney Kenneth Magidson. Serna pleaded guilty June 17, 2013, to multiple conspiracies to possess with intent to distribute cocaine, crack cocaine and marijuana as well as multiple counts of possession with intent to distribute controlled substances within 1,000 feet of school.
Today, U.S. District Judge Marina Garcia-Marmolejo handed the Laredo resident a total sentence of 84 months in federal prison to be immediately followed by six years of supervised release. In upwardly departing as she imposed the sentence, the court noted Serna’s under-represented criminal history, his aggravating role in the conspiracy and the proximity of his house to the school, which was less than 1000 yards away. The court also ordered Serna’s residence be forfeited to the government having found it was used to further the criminal activity.
The government presented testimony from the case agent and the undercover agent who testified they received information in March 2012 that drugs were being sold from the Serna residence on Bartlett Avenue, which was located just a block away from a public middle school and a public high school. Subsequent to receiving the information, they conducted surveillance on the residence where they observed several individuals engage in what appeared to be drug transactions.
An undercover agent then conducted several controlled buys of cocaine, cocaine base and marijuana from Serna Sr., and his sons - Romeo Serna Jr. and Randy Serna - at their residence throughout the course of several months.
On March 7, 2013, after attempting another controlled buy of cocaine base (crack cocaine), law enforcement then arrested Serna Sr. and his two sons. A search warrant was also executed, resulting in the discovery of marijuana on the kitchen counter, in the attic and in the living room as well as cocaine in the kitchen along with various drug paraphernalia associated with drug trafficking. Serna Sr. and Serna Jr. admitted they had been selling marijuana and cocaine out of their residence for several years.
Serna Jr. and Randy Serna pleaded guilty in the case and have also been ordered to prison.
Serna Sr. has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration investigated with assistance from the Laredo Independent School District Police Department. Assistant U.S. Attorneys Sonah Lee and Mary Ellen Smyth prosecuted the case.
Laplace Man Sentenced for Conspiracy to Pass Fictitious ChecksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELLIS RANSON, III, age 28, of Laplace, was sentenced today after previously pleading guilty to conspiracy to pass fictitious obligations.
U.S. District Judge Stanwood R. Duval, Jr. sentenced RANSON to 12 months and 1 day imprisonment, followed by 2 years of supervised release.
According to court documents, Special Agents from the United States Secret Service, New Orleans Field Office, investigated an attempted pass of a counterfeit payroll check that occurred at the Wal-Mart store located on Veterans Boulevard in Kenner. Through their investigation, the agents discovered that RANSON had produced the counterfeit payroll check. RANSON manufactured the counterfeit checks for negotiation at different Wal-Mart retail stores. He worked with others who would cash the counterfeit checks at Wal-Mart stores and then return to him in order to split the proceeds.
U.S. Attorney Polite praised the work of the U.S. Secret Service, New Orleans Field Office for investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen was in charge of the prosecution.
Kentucky Man Charged with Carjacking, Victim Forced to Travel Across State Before EscapingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Danville, Ken., man who carjacked a vehicle in Kansas City, Mo., and forced its owner to accompany him as he drove across the state has been arrested and charged in federal court.
Robert C. Caldwell, 25, of Danville, was charged in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo., on Saturday, Jan. 24, 2015. Caldwell was arrested in Kentucky on Tuesday, Jan. 27, 2015, following a pursuit by officers with the Kentucky State Police and the Lincoln County, Ken., Sheriff’s Department.
The federal criminal complaint charges Caldwell with one count of being a felon in possession of a firearm, one count of carjacking and one count of using a firearm during a violent crime.
According to an affidavit filed in support of the federal criminal complaint, Caldwell and an accomplice approached a 67-year-old Kansas City, Mo., man at about 5:30 a.m. Thursday, Jan. 22, 2015, as he was leaving his home. They allegedly threatened the victim at gunpoint to give them money and a vehicle. He was forced to hand over his keys to his van, his wallet and cash. The victim was ordered into his garage, the affidavit says, where he was beaten by Caldwell and his accomplice and struck in the head with the handgun, a Cobra .380-caliber semi-automatic pistol. The victim was then ordered into his van, a 1998 Chevrolet C/K 1500.
The victim told law enforcement officers that he was driven around to multiple ATMs, but he was covered with a blanket most of the time and was unable to see the locations where the carjackers attempted to use his debit card. He couldn’t remember his PIN number so they were unable to get cash, which made them angry. According to the affidavit, the carjackers pretended to be on the phone with an accomplice who was holding his wife hostage; at one point after another failed ATM attempt, they informed him they had killed his wife, which was false.
They continued to drive and stopped at a drive-through restaurant, the affidavit says, where one of the men sat next to the victim and shoved the barrel of the gun into his mouth, breaking his teeth, and told him that he would kill him if he moved. After getting food, they allegedly tied his hands together with a boot strap and had him lying in the floor with a blanket over his face so he couldn’t see. They continued driving and made several stops for purchases with the victim’s credit and debit cards. Law enforcement authorities, who had been contacted by the victim’s wife, were tracking the use of the victim’s credit and debit cards as they were used or attempted to be used along I-70 eastbound. Investigators obtained surveillance photos and video from some of the locations.
When they arrived at a rest stop, the affidavit says, one of the carjackers told the other to watch the victim while the carjacker slept. The victim managed to untie his hands and retrieve a homemade 45-pound weight from under the seat of the van. He struck both of the carjackers in the head (causing a gash above the eye of one of them) and made an attempt to escape, but was unsuccessful. He was then beaten heavily by both men, according to the affidavit.
They began driving again, the affidavit says, and the victim pretended to be knocked out. The driver of the van was having trouble maneuvering the large van while holding the gun, so he sat the gun on the floorboard so he could use both hands to steer the vehicle. The victim lunged for the handgun and pointed it at the two carjackers as he demanded they pull over. When the vehicle pulled over, the driver made a move towards the victim, who pulled the trigger of the loaded gun, but it failed to fire. The victim quickly racked the slide to chamber a round, but both men had fled from the vehicle with the keys.
The victim also ran from the vehicle. As he ran down the street in Jennings, Mo., the affidavit says, he turned and saw the two carjackers had returned to the vehicle and were slowly driving in his direction. The victim hid between several houses as he watched them drive away in his van. He then contacted the police.
The stolen van was recovered on Friday, Jan. 23, 2015, in Nelson County, Ken. The Nelson County Sheriff’s deputy who recovered the vehicle recognized Caldwell from the surveillance photographs and video. A captain with the Boyle County, Ken., Sheriff’s Department also recognized Caldwell. An anonymous call to the TIPS Hotline also identified Caldwell as one of the carjackers. Caldwell’s father contacted law enforcement authorities on Friday, Jan. 23, 2015, and informed them that he recognized his son in the surveillance video and photographs.
Dickinson cautioned that the charges contained in this complaint 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 David Barnes. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jury Convicts Box Elder Man of Multiple Rapes, AssaultsRead the Press Release
GREAT FALLS – Following a three-day trial, Dallas Lawrence, 32, of Box Elder, Montana, was convicted by a Montana jury of two rapes, two strangulations, two assaults with intent to commit murder and assault with a dangerous weapon. U.S. District Judge Brian Morris presided over the trial. Lawrence now faces a maximum of life in prison for the rapes, twenty years on the assaults with intent to commit murder, and ten years for the strangulations and assault with a dangerous weapon. He also faces a $250,000 fine on each count, and up to five years of supervised release.
Evidence presented at trial by Assistant United States Attorney Laura Weiss, showed that Lawrence and the victim were in a relationship where Lawrence became increasingly physically and verbally abusive. In September 2013, Lawrence stabbed the victim in her calf. She was found walking around Havre, Montana, and was taken to the ER, where doctors observed the stab wound. The victim told the doctors her boyfriend had stabbed her in the leg and that she was in an abusive relationship. She said Lawrence had also tried to break her arms and legs to keep her from leaving.
The evidence also showed that in March 2014, Lawrence strangled the same victim with a humidifier cord after asking her, “How do you want me to do you in, fast or slow?” The victim was able to slip two fingers under the cord, but she still couldn’t breathe. She managed to escape the cord. Lawrence continued to control the victim after that by making her stay in her room, and controlling where she went and who she was around. He kept the keys to the car, and made threats to her about trying to leave him.
In May 2014, the defendant again strangled the victim after beating her. He asked her again if she wanted to die fast or slow. He gripped both hands around her neck and began to strangle her. She tried to slide away, but he kept strangling her to the point that she blacked out. Lawrence later told her he thought he had killed her and was going to hide her body in a crawlspace until he could find a place to bury it. During the same time period in early summer 2014, Lawrence forced the victim to have sex with him on two occasions.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Joplin Man Sentenced to 22 Years for Meth Conspiracy, FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in Jasper County, Mo., and for illegally possessing firearms.
Jose DeLeon Cazares, 29, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 22 years in federal prison without parole.
On Aug. 5, 2014, Cazares pleaded guilty to participating in a conspiracy to distribute methamphetamine from July 16, 2012, to June 14, 2013, and to possessing firearms in furtherance of a drug-trafficking crime.
Law enforcement authorities noticed a significant increase in the availability of methamphetamine in the Joplin area beginning in June 2012. A confidential source stated there was a drug-trafficking organization in Joplin that was importing very pure methamphetamine from Mexico into the United States, then transporting it by automobile to Joplin.
Cazares admitted that he was the local leader of the drug-trafficking organization. Starting in July 2012, federal and local agents conducted numerous undercover buys with various co-defendants in this conspiracy.
A cooperator told law enforcement investigators that he traded stolen firearms and other stolen items to Cazares in return for methamphetamine. He stated that he had traded 10-to-12 firearms to Cazares between September 2012 and July 2013. Cazares gave him between one to one-and-a-half grams of methamphetamine per firearm. Cazares then took the firearms to Mexico. He also traded stolen flat-screen TV's, power tools and computer items (like laptops and Ipads) to Cazares for methamphetamine.
On June 14, 2013, members of the Joplin Police Department SWAT team and members of various federal agencies entered Cazares’s home. They found a box of Winchester 20-gauge 2-3/4-inch rifled slug hollow point ammunition in the bedroom. Cazares was under state charges at the time and prohibited from receiving and possessing ammunition. Officers also found a drug ledger in the living room on the television stand, and multiple Moneygram receipts in his vehicle.
His mother and father, Gerardo Hernandez Cazares, Sr., 53, and Leticia Cazares, 53, as well as his brothers, Gerardo Cazares Jr., 30, and Eric Eziquel Cazares, 32, all of Joplin, are among the co-defendants who have pleaded guilty in this case.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Bureau of Indian Affairs, the Missouri State Highway Patrol, the Kansas Bureau of Investigation, the Jasper County Drug Task Force, the Joplin, Mo., Police Department and the Miami, Okla., Police Department.
Jefferson Hills Man Charged with Selling Adulterated Poultry ProductsRead the Press Release
PITTSBURGH - A Jefferson Hills resident has been indicted by a federal grand jury in Pittsburgh on charges of selling and transporting adulterated and misbranded poultry and selling and transporting poultry without inspection, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on January 27, named Xia Vue, 83, of Finleyville, PA.
According to the Indictment presented to the court, the defendant sold in commerce adulterated poultry products which had not been inspected pursuant to regulations of the United States Department of Agriculture.
The law provides for a maximum total sentence of six years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of the Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson County Man Sentenced in Synthetic Marijuana ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 46-year-old Port Arthur, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Williams pleaded guilty on July 9, 2014, to conspiracy to possess with intent to distribute synthetic marijuana and was sentenced to 60 months in federal prison on Jan. 27, 2015 by U.S. District Judge Ron Clark.
According to information presented in court, from May 2013 to November 2013, Williams conspired to receive synthetic marijuana from individuals in the Syracuse, New York area for distribution in the Port Arthur, Texas area. Williams was shipped boxes containing packages labeled with brand names such as: “Caution,” “Scooby Snax,” “Kush,” “WTF,” “Masterkush,” “Mr. Niceguy,” and “Klimax” on credit for approximately $4.50 per package. Williams would then sell the packages of synthetic marijuana to others for $8 to $10 per package and then either send money orders to Syracuse or deposit money into a Bank of America account in the name of another defendant.
In November 2013, a search warrant executed on Williams’ residence and vehicle revealed a phone, cash, and deposit slips linking Williams to the drug trafficking organization out of Syracuse. A federal grand jury in the Northern District of New York returned an indictment on Nov. 20, 2013 charging nine individuals in that organization with drug trafficking violations. Southeast Texans named in the NDNY indictment are Ali Bedwan, Joe Aref and Arafat Khdour. Bedwan pleaded guilty to the conspiracy charge in Beaumont in 2014 and was sentenced to 46 months in federal prison. Aref and Khdour are awaiting trial in Syracuse. Williams was indicted by a federal grand jury in Beaumont in May 2014.
This case was investigated by the U.S. Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Jamaican National Pleads Guilty to Fraudulently Receiving Medicaid Benefits and Identity TheftRead 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 Georgia Bowen, a/k/a Georgia Bennett, 39, of Lackawanna, NY, pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to health care fraud and aggravated identity theft. The health fraud charge carries a maximum sentence of 10 years in prison and a $250,000 fine. Aggravated identity carries a mandatory two years in prison to be served consecutive to any term imposed on the health care fraud conviction.Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendant, a native and citizen of Jamaica, applied for Medicaid benefits through the Erie County Department of Social Services on three separate occasions: in December 2010, November 2011, and June 2013. Bowen claimed to be a United States citizen and utilized social security numbers assigned to other persons. As a result, Medicaid paid over $19,000 in benefits to health care providers for services provided to the defendant, benefits she was not entitled to receive.
In August 2010, Bowen was sentenced in federal court to two years in prison after being convicted of identity theft in connection with her fraudulent use of the name and social security number of another person which caused over $13,000 in Medicaid benefits to be paid through the Erie County Department of Social Services for medical services she had received. As a result of that conviction, removal proceedings against Bowen were initiated by the Department of Homeland Security.
The plea is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge and the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan.
Sentencing will be scheduled before Chief U.S. District Court Judge William M. Skretny.
Inmate Convicted of Threatening A Federal JudgeRead the Press Release
HOUSTON - George Yarbrough, 42, a former resident of Houston, has entered a guilty plea to a one-count criminal indictment charging him with mailing a threatening communication, announced U.S. Attorney Kenneth Magidson.
As part of his plea, Yarbrough has admitted that on or about Sept. 26, 2014, he knowingly mailed a communication threatening to kill a specific federal judge in Houston. The communication was received at the Bob Casey U.S. Courthouse at 515 Rusk St. in Houston and had a return address implicating Yarbrough, who was an inmate serving a sentence within the Texas Department of Criminal Justice (TDCJ).
In the letter, Yarbrough warned the judge that he intended to kill him as soon as he got out of TDCJ. Yarbrough claimed the judge had ruined Yarbrough’s life and that he had lost of his loved ones. Yarbrough repeated the threat throughout the letter with a final note that “…I’m coming to get you and your family!”
Yarbrough was interviewed on two occasions and never denied sending the letter.
Yarbrough indicated the basis for the threat was because the judge had had dismissed a civil rights lawsuit Yarbrough filed against TDCJ personnel several years earlier.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for April 15, 2015. At that time, Yarbrough faces up to 10 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The FBI, U.S. Marshals Service and the TDCJ-Office of Inspector General investigated the case which is being prosecuted by Assistant U.S. Attorney Mel Pechacek.
Hunting Guides Sentenced for Violating Migratory Bird Act in Reno CountyRead the Press Release
WICHITA, KAN. - Two hunting guides were sentenced Wednesday for violating the Migratory Bird Treaty Act during hunts in Reno County, U.S. Attorney Barry Grissom said.
Each of them pleaded guilty to violating the Migratory Bird Treaty Act by exceeding the daily bag limit. They were sentenced to one year unsupervised probation and a fine of $1,000. In addition, they are prohibited from hunting, fishing, trapping or accompanying anyone in those activities for one year.
Both men were working for Misty Morning Outfitters of Haven, Kan., at the time they violated federal law.
Sentenced were:
Lane Hensley, 28, Liberal, Kan.
Tanner Cox, 25, Wichita, Kan.
In his plea, Hensley admitted the crime occurred Dec. 15, 2011, when he took two undercover U.S. Fish and Wildlife Service agents on a hunt in Reno County, Kan. He exceeded the daily bag limit of three Canada geese.
In his plea, Cox admitted the crime occurred Sept. 1 and 2, 2011, on a hunt in Reno County. He exceeded the daily bag limit of 15 mourning doves.
Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELVIS CANO-MORALES, age 33, a native of Honduras, was sentenced today on a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
U.S. District Judge Stanwood R. Duval, Jr. sentenced CANO-MORALES to time served, which was 6 months incarceration. CANO-MORALES will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, CANO-MORALES was found in the United States on August 1, 2014, after having been previously removed from the United States on June 10, 2011.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection Agency in investigating this matter. Assistant United States Attorney Jon Maestri handled the prosecution.
Honduran National Guilty of Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAIRO ALMENDAREZ-DUARTE, age 47, a native of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, ALMENDAREZ-DUARTE was found in the United States on January 10, 2014, after having been previously removed from the United States on August 28, 2003.
ALMENDAREZ-DUARTE faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Martin L.C. Feldman set sentencing for April 8, 2015.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Hiawatha Man Pleads Guilty to Attempting to Cook Meth That Started Mobile Home FireRead the Press Release
Contact: Steve Young
A man whose attempt at cooking methamphetamine resulted in a fire that damaged several mobile homes in Hiawatha pled guilty on January 27, 2015, in federal court in Cedar Rapids.
Michael Landon Monroe Lala, age 28, from Hiawatha, Iowa, was convicted of attempt to manufacture methamphetamine.
In a plea agreement, Lala admitted that he manufactured methamphetamine many times between April 2012 and May 2014, and that he recruited others to purchase pseudoephedrine for him so he could make meth. Lala also admitted that on November 13, 2013, he was in the process of cooking meth via the “one-pot” method when the bottle he was using in the manufacturing process tipped over, causing a fire. A 14-year-old and the owner of the mobile home in Hiawatha where Lala was cooking the meth were also present in the mobile home when the fire started. The mobile home where the fire started was destroyed, and five neighboring mobile homes were also extensively damaged. Three of the other damaged mobile homes were occupied at the time of the fire. One of those residences was occupied by two adults and four minor children, another by one adult, and a the third residence by two adults.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Lala remains in custody of the United States Marshal pending sentencing. Lala faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case was investigated by the Hiawatha Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Sixth Judicial District Department of Correctional Services, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-100-LRR.
Goldsboro Man Sentenced for Drug Distribution and Firearm ChargeRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced PHILLIP HARDY , 30, of Goldsboro, North Carolina to a total of 180 months imprisonment, followed by 10 years of supervised release.
HARDY was named in a seven count Indictment filed on February 18, 2014. On July 14, 2014, HARDY pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute 1 Kilogram or More of Heroin; and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
According to the investigation, the Wayne County Sheriff’s Office began utilizing a confidential informant in May 2013 to investigate the heroin trafficking activities of HARDY. On June 5, 2013, agents simultaneously executed a search warrant at HARDY’s apartment in Goldsboro and the residence he shared intermittently with his grandparents in Goldsboro. With regard to the search of the defendant’s apartment, agents encountered HARDY upon entry and immediately detained him. A search of HARDY’S bedroom resulted in the recovery of a pistol and a 50-round drum pistol magazine, ammunition, 68.43 bundles (27.372 grams) of heroin, bags used to package heroin and a total of $13,686 in U.S. Currency. From HARDY’S vehicle agents recovered 1 bundle (0.4 grams) of heroin.
During the search of the defendant’s grandparents’ residence, agents recovered five firearms (two of which were determined to be stolen), assorted ammunition, several firearms magazines, a digital scale and plastic bags used to package narcotics
It was determined that between 2007 and February 25, 2014, HARDY possessed/distributed more than 33 kilograms of heroin. He also possessed firearms in furtherance of his drug trafficking activities. On July 25, 2014, the defendant provided a written statement to the probation office wherein he acknowledged his involvement in the instant offense and expressed remorse for the harm his actions have caused him, his family, and society.
Investigation of this case was conducted by the Wayne County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Jennifer E. Wells represented the government.
Georgia Man Sentenced for Stealing Deceased Persons' Identities to Gain $2.3 Million in State Tax RefundsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Georgia man was sentenced in federal court today for a wire fraud scheme in which he used the identity information of deceased persons to obtain more than $2.3 million in tax refunds from several states.
Sirhon Rivers, also known as “Ron,” 40, of Georgia, was sentenced by U.S. District Judge Brian C. Wimes to eight years and six months in federal prison without parole. The court also ordered Rivers to pay $2,358,612 in restitution.
On Sept. 14, 2014, Rivers pleaded guilty to one count of wire fraud, one count of aggravated identity theft, one count of conspiracy to commit money laundering and one count of conspiracy to commit wire fraud and aggravated identity theft.
Rivers admitted that he unlawfully obtained $547,000 from the Missouri Department of Revenue from January 2008 to August 2012 by filing fraudulent tax returns. Rivers used the same scheme in others states – including Kansas, Alabama, Arizona, Connecticut, Delaware, Georgia, Idaho, Louisiana, Michigan, Minnesota, New York, North Carolina, North Dakota, Oklahoma, Rhode Island and Virginia – to unlawfully acquire a total of $2,365,617 in fraudulent state tax refunds.
Rivers obtained personal identification information – including names, Social Security numbers, and dates of birth – from deceased persons. He submitted state tax returns using that information, adding false and fraudulent information such as employment and wages earned. State tax returns were submitted electronically, with the refunds electronically transferred to bank accounts that Rivers opened at several financial institutions.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Missouri Department of Revenue Criminal Tax Investigation Bureau.
Georgia Man Pleads Guilty in Wire Fraud Scheme That Bilked Airlines by Obtaining Free ‘Non-Rev’ Tickets for Non-EmployeesRead the Press Release
LOS ANGELES – A Georgia man who fraudulently booked airline reservations by pretending to be a flight crew member pleaded guilty today to a federal wire fraud offense.
Gilbert Myers Jr., 38, of Atlanta, pleaded guilty this afternoon to conspiracy to commit wire fraud, a charge that carries a statutory maximum penalty of 20 years in federal prison.
Myers admitted orchestrating a conspiracy to defraud air carriers in which travelers would illegally board aircrafts while pretending to be employees of other airlines. In exchange for arranging their travel as “non-rev” employee travelers, Myers typically charged approximately $2,000 for one year of unlimited free flights.
Myers fraudulently booked hundreds of flights on victim airlines that include AirTran Airways, JetBlue Airways, Spirit Airlines, Sun Country Airlines and United Airlines.
The fraudulent travelers utilized Myers’ services to fly in and out of Los Angeles County airports by pretending to be in-flight crew members employed by other airlines. To obtain boarding passes and stand-by tickets (for which airline employees pay little or nothing, hence non-revenue), Myers called the victim airline’s reservation call center and gave the victim airline’s representative the name of a traveler, the airline he supposedly worked for, a bogus employee identification number, and a date of hire. Myers typically lied to the victim airline and said he worked on a flight crew for another airline, according to court documents.
Myers advised the fraudulent travelers to avoid detection by dressing appropriately and how to respond to questions about their employment at another airline. With the fraudulently obtained boarding pass and their real photo identification, the fraudulent travelers went through Transportation Security Administration security screening. The fraudulent travelers boarded planes listed as employees of other airlines. All of the travelers were subject to full security screenings by the Transportation Security Administration.
In the plea agreement, Myers admitted to several specific, fraudulent booking calls. As part of the conspiracy, Myers acknowledges that he “fraudulently booked these and hundreds of other flights with victim airlines.”
Myers pleaded guilty before United States District Judge Dean D. Pregerson, who scheduled a sentencing hearing for April 30.
In his plea agreement, Myers agrees that Judge Pregerson may order him to pay restitution to the victims. The fair market value of the fraudulently obtained plane tickets was more than $277,000, and attorneys in the case agree that the applicable amount of restitution is approximately $91,660.
All of the victim airlines fully cooperated in the investigation.
The case against Myers is the result of an investigation by the FBI’s Joint Terrorism Task Force.
Fresno County Sheriff’s Office’s Contribution to the Mission of the U.S. Attorney’s Office and Department of Justice RecognizedRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2014 winner of the Eastern District of California Law Enforcement Award for the Fresno Division’s Outstanding Law Enforcement Agency. This award is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal state and local law enforcement in addressing public safety issues in this region. Other winners of the 2014 United States Attorney’s Office-Eastern District of California Law Enforcement Awards will be announced at a later date.
The winner of Fresno Division’s Outstanding Law Enforcement Agency Award is the Fresno County Sheriff’s Office for their invaluable contribution to an investigation into a major national drug trafficking organization that manufactured and sold synthetic drugs. Synthetic drugs, including synthetic cannabinoids, are illegal and unregulated, and can be highly dangerous. There have been numerous reports of consumers being seriously harmed or even dying as a result of ingesting synthetic cannabinoids.
U.S. Attorney Wagner stated: “Congratulations to the Fresno County Sheriff’s Office on being chosen for this award for their efforts to address an emerging public safety threat. Sheriff’s detectives recognized the significance of a seizure of 12 kilograms of synthetic cannabinoids and contacted federal authorities. The Fresno Sheriff’s Office partnered with federal agencies throughout the intensive long-term investigation that followed. As a result, we were able to identify key members of the organization and dismantle it.”
Narcotics detectives conducted several undercover purchases from head shops in the Fresno area that were distributing synthetic cannabinoids. They worked closely with federal law enforcement agents to investigate a network of persons and businesses that were producing the substances and selling them across the country. The Sheriff’s Office also participated in a nationwide takedown targeting synthetic drug traffickers in June 2013. That effort included multiple search warrants and the seizures of large quantities of illegal substances, cash, and assets.
The investigation focused on Victor Nottoli, who pleaded guilty in federal court here in Fresno in May of last year to conspiracy and causing at least 24 tons of misbranded synthetic cannabinoids to be introduced into interstate commerce. Over $6.4 million in cash and nearly $200,000 worth of other assets were seized. He is expected to be sentenced to federal prison in the near future.
In related cases arising from the investigation, four more persons were indicted on federal felonies in this district last year, and to date, five persons have pleaded guilty to federal felonies in the Southern District of Alabama, one has pleaded guilty in the Southern District of New York, and another has been indicted in the District of Arizona. More federal prosecutions are expected.Four Members of Loma Linda Family Arrested on Federal Charges Related to Embezzlement from Labor UnionRead the Press Release
RIVERSIDE, California – Four former and current officials of an independent labor union in Colton were arrested this morning on federal charges related to a scheme to embezzle funds from the union’s health plan.The four defendants, who were named in a 40-count indictment returned by a federal grand jury on January 21, are charged with conspiring to embezzle from the health plan for the United Industrial and Service Workers of America Local 101 (UISWA), which serves members in the Inland Empire.
Over the course of eight years, the defendants allegedly misappropriated a total of approximately $900,000 in union funds.
Those arrested this morning, all residents of Loma Linda, are:
John S. Romero, 68, the former president of USIWA;
Evelyn Romero, 66, John S. Romero’s wife, who succeeded her husband as president of USIWA and served in that position until June 2014;
John J. Romero, 50, who is the son of John S. and Evelyn Romero and who is the former secretary/treasurer of USIWA; and
Danae Romero, 37, who is the daughter of John S. and Evelyn Romero and who served as an officer in the union.
All four defendants are expected to be arraigned on the indictment this afternoon in United States District Court.
The indictment charges the defendants with conspiring to embezzle assets from the UISWA Health Plan, which was a program intended to provide healthcare benefits to union members.
The indictment also includes charges of knowingly filing false annual reports with the U.S. Department of Labor that failed to disclose more than $100,000 in UISWA revenues and disbursements, willfully misusing the assets from both the UISWA and UISWA Health Plan, and knowingly and willfully permitting another Romero-family member who had previously been convicted of a felony narcotics violation to serve as an officer and employee of the UISWA.
The indictment alleges that some of the Health Plan's bank accounts were held in the name of a construction company associated with the Health Plan's third party administrator, through which the Romero family received payments without the knowledge of consent of the Health Plan's second trustee. It is further alleged that the Romero family controlled the Health Plan's reserve fund accounts and used those assets for their personal benefit.
The defendants family allegedly used union funds to pay personal and union-related legal fees and judgments levied against them, systematically making payments of Health Plan assets to a separate business entity they operated under false pretenses, fund a payroll account that had been established using the name and employer identification number of a previous labor union they had been in control of that had since terminated operations, pay off a car loan for a vehicle belonging to another Romero family member, and recirculating assets from the Health Plan's reserve fund to its operating account to cover the insurance expenses for their own healthcare benefits that were billed to the union.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If they are convicted of the charges in the indictment, all four defendants would face decades in federal prison.
The indictment is the result of a joint investigation conducted by the U.S. Department of Labor - Office of Inspector General, the U.S. Department of Labor - Employee Benefits Security Administration, and the U.S. Department of Labor - Office of Labor Management Standards.
Four Hunters Sentenced for Violating Migratory Bird Act in Ellis CountyRead the Press Release
WICHITA, KAN. - Four hunters were sentenced Wednesday for violating the federal Migratory Bird Treaty Act when they took more than 260 mourning doves during a hunt in Ellis County, U.S. Attorney Barry Grissom said today.
Each of the four pleaded guilty to one count of violating the Migratory Bird Treaty Act by exceeding the daily bag limit for mourning doves. They were sentenced to two years unsupervised probation, a $1,000 fine and $1,000 in restitution. In addition, they are prohibited from hunting, fishing, trapping or accompanying others during those activities for two years.
Sentenced were:
Harold C. Amrein, 59, Ellis, Kan.
Randy L. Amrein, 38, Fremont, Neb.
Morris H. Russell, 48, Omaha, Neb.
Tyrel S. Simpson, 33, Council Bluffs, Iowa
In their pleas, they admitted the crimes took place Sept. 2, 2014, during a hunt in the opening weekend of dove season. Following the hunt, a warden with the Kansas Department of Wildlife, Parks and Tourism found them in possession of more than 260 mourning doves. The daily bag limit for mourning doves is 15.
Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.
Four Charged in Grant Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Four persons have been charged with conspiracy and fraud for obtaining money from small business owners for grant funding and services that they never provided or intended to provide, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
Jason Demko, 38, Lorraine Riddiough, 66, Lissette Alvarez, 27, all of Las Vegas, and Mark Jones, 32, of Barberton, Ohio, are charged in a criminal indictment with one count of conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, and criminal forfeiture. Riddiough, Alvarez, and Jones were arrested in Las Vegas yesterday. They appeared yesterday before Magistrate Judge Ferenbach and pleaded not guilty to the charges, and were released on personal recognizance bonds pending a March 16 trial date. Demko is scheduled to appear before U.S. Magistrate Judge Cam Ferenbach at 3:00 p.m. today for an arraignment.
“Unfortunately, advance fee fraud schemes are very common,” said U.S. Attorney Bogden. “The con artist will ask for money up front before any tangible service or product is provided, and it will be very difficult to get your money back once you have turned it over to the scammers.”
“These arrests emphasize the FBI's continued commitment to investigate financial crimes,” said Special Agent in Charge Bucheit. “It also serves as a reminder for consumers to protect themselves, and remember if it seems too good to be true, it almost always is."
According to the indictment and other court records, from about January 2013 to February 2014, the defendants allegedly made false and fraudulent representations and promises to small business owners to persuade and induce them to pay initial fees, usually between $2,500 and $5,000 for goods and services they thought would help them obtain grants for their businesses. The business owners were told that the total cost for obtaining a grant was between $10,000 and $15,000, depending on the total amount of funding requested, and that the remaining fees would not be charged until the owners received 100 percent of the grant funding. Among other things, the defendants falsely stated that they represented a company named Foundation Processing Center in Wilmington, Del., when in fact, they represented JCD Business Services in Las Vegas; falsely stated that only certain clients had qualified for grants, when in fact anyone who paid the fees were qualified by the defendants; and stated that they had obtained grants for other clients, when in fact they had not done so. The defendants also re-solicited clients for additional fees, including business plans, when they knew that the plans were not going to assist the clients in obtaining any grants. The defendants knew that the true purpose of their solicitations was to obtain funds to personally enrich themselves.
If convicted, the defendants face a maximum of 20 years in prison and a $250,000 fine on all counts.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Fountain, Colorado Man Sentenced for Defrauding the Department of Veterans Affairs and the Social Security AdministrationRead the Press Release
DEFENDANT RECEIVED 100 PERCENT DISABILITY BENEFITS FROM BOTH AGENCIES WHILE WORKING
DENVER – Albert Kenneth Lender, age 62, of Fountain, Colorado, was sentenced yesterday by U.S. District Court Judge Philip A. Brimmer to serve three months in federal prison, followed by three years on supervised release for two counts of making false statements to the government, the U.S. Attorney’s Office, the Veterans Affairs Office of the Inspector General and the Social Security Administration Office of the Inspector General announced. Lender was also order to pay restitution to the government of over $130,000, the amount of loss, plus interest. He was ordered to report to a Bureau of Prisons facility within 15 days of designation.
Lender was indicted by a federal grand jury in Denver on June 17, 2014. He pled guilty on August 22, 2014. He was sentenced on January 27, 2015.
According to the stipulated facts contained in the plea agreement, Lender received benefits at a 100 percent disability rating from the Department of Veterans Affairs (VA) in 1991. That same year, he also began receiving benefits at a 100 percent disability rating from the Social Security Administration (SSA). Both agencies advised Lender that should his status change, he was to notify the agencies immediately. He also received follow up letters reinforcing that advisement.
Prior to January 2005, Lender caused Zac Towne Paint & Quarter Horses (Zac Towne) to be formed, listing his wife as the sole proprietor. Thereafter, he negotiated contracts on behalf of Zac Towne, including one with the City of Fountain for landscaping, ground maintenance, snow removal, and related services. He also worked to secure other contracts. Once the contracts were awarded, Lender performed the duties to fulfill the contracts, including the landscaping, ground maintenance and snow removal. He also hired others to assist him.
Based on Lender’s false representations and material omissions to both the VA and the SSA, Lender received more than $130,000 in disability benefits for which he was ineligible.
This case was investigated by the Department of Veterans Affairs Office of the Inspector General, and the Social Security Administration Office of the Inspector General.
The case was prosecuted by Assistant U.S. Attorney Patricia Davies.
Former Owner of D&D Equipment & Supply Sentenced to 24 Months in Prison and Pay over $756,000 in Restitution for FraudRead the Press Release
Oklahoma City, Oklahoma – DEAN ELVIN STIGER, 67, of Oklahoma City, has been sentenced to twenty-four months in federal prison and ordered to pay $756,922.05 in restitution for his role in defrauding UE Manufacturing through fictitious freight invoices, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
A grand jury indicted Stiger on July 17, 2013, on sixteen counts of wire fraud and three counts of money laundering. According to the indictment, Stiger owned and operated D&D Equipment & Supply, which provided freight services to businesses in the oil and gas industry, including UE Manufacturing. Stiger and Kevin Sheldon, a purchasing agent at UE Manufacturing, caused that company to pay more than $500,000 in fictitious D&D freight invoices from 2009 to the end of 2012. They met periodically at a bank to divide the proceeds of the crime. The indictment also alleged that Stiger used some of the proceeds in large banking transactions, including the payment of a monthly mortgage in the amount of $20,004.05 and the purchase of a $58,000.00 Cadillac Escalade.
Stiger pled guilty to one count of fraud and one count of money laundering on October 30, 2013. His health and other issues delayed his sentencing.
Yesterday, Chief U.S. District Judge Vicki Miles-LaGrange ordered Stiger to serve 24 months in the custody of the Federal Bureau of Prisons, to be followed by two years of supervised release. He was also ordered to pay $756,922.05 to UE Manufacturing. The court had previously entered an additional order of forfeiture against him in the amount of $436,461.03.
Kevin Sheldon pled guilty to wire fraud on August 16, 2013. His sentencing is pending.
This sentence is the result of an investigation conducted by Internal Revenue Service Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott E. Williams.
Former Los Alamos National Laboratory Scientist Sentenced to Prison for Atomic Energy Act ViolationsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Damon P. Martinez for the District of New Mexico, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division announced that Pedro Leonardo Mascheroni, a scientist formerly employed at the Los Alamos National Laboratory (LANL), was sentenced this morning for Atomic Energy Act and other violations relating to his communication of classified nuclear weapons data to a person he believed to be a Venezuelan government official.
Mascheroni, 79, a naturalized U.S. citizen from Argentina, was sentenced in Albuquerque, New Mexico, by U.S. District Judge William P. Johnson to 60 months in federal prison followed by the three years of supervised release. His wife, Marjorie Roxby Mascheroni, 71, previously was sentenced in August 2014 to a year and a day of imprisonment followed by three years of supervised release for her conviction on conspiracy and false statement charges.
“The public trusts that the government will do all it can to safeguard Restricted Data from being unlawfully transmitted to foreign nations not entitled to receive it,” said Assistant Attorney General Carlin. “We simply cannot allow people to violate their pledge to protect the classified nuclear weapons data with which they are entrusted. Today’s sentencing should leave no doubt that counterespionage investigations remain one of our most powerful tools to protect our national security. I thank the many people who worked to bring these convictions to fruition.”
“Our laws are designed to prevent ‘Restricted Data’ from falling into the wrong hands because of the potential harm to our national security,” said U.S. Attorney Martinez. “Those who work at our country’s national laboratories are charged with safeguarding that sensitive information, and we must and will vigorously prosecute anyone who compromises our nation’s nuclear secrets for profit. I commend the many agents, analysts and prosecutors who worked tirelessly to bring about the convictions in this case. I also thank the Los Alamos National Laboratory for cooperating fully in the investigation and prosecution of this case.”
“This case demonstrates the consequences that result when those charged with protecting our nation’s secrets violate the trust placed in them by the American people,” said Assistant Director Coleman. “Safeguarding classified material is vital to the public interest, and the FBI will continue to hold accountable those who knowingly and willfully threaten the national security of the United States through the unauthorized disclosure of protected information.”
“America trusts those who work with our country's classified information to keep it away from those who would harm us. Anyone who betrays that trust for his own gain puts our nation's security up for auction, and the price for us all could be very high indeed,” said Special Agent in Charge Lee. “Since World War II, the FBI has worked tirelessly to protect U.S. nuclear weapons data, and we are proud of our investigation in this case.”
Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in September 2010 and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure an advantage to a foreign nation, as well as conspiracy to convey and conveying classified information. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Mascheroni pleaded guilty in June 2013, to counts seven and eight of the indictment, charging him with conversion of government property and retention of U.S. records, and counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to a felony information charging him with two counts of communication of Restricted Data and one count of retention of national defense information.
In entering his guilty plea, Mascheroni admitted that in November 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in November 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in October 2009.
Roxby Mascheroni pleaded guilty in June 2014, to count six of the indictment, charging her with conspiracy, and counts 16 through 22, charging her with making false statements. She also pleaded guilty to a felony information charging her with conspiracy to communicate Restricted Data. Roxby Mascheroni admitted that between October 2007 and October 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in October 2009.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.
This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution was handled by Senior Counsel Kathleen Kedian and Trial Attorney David Recker of the Counterespionage Section of the Justice Department’s National Security Division and Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico.
Former Los Alamos National Laboratory Scientist Sentenced to Prison for Atomic Energy Act ViolationsRead the Press Release
ALBUQUERQUE – Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Damon P. Martinez for the District of New Mexico, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division announced that Pedro Leonardo Mascheroni, a scientist formerly employed at the Los Alamos National Laboratory (LANL), was sentenced this morning for Atomic Energy Act and other violations relating to his communication of classified nuclear weapons data to a person he believed to be a Venezuelan government official.
Mascheroni, 79, a naturalized U.S. citizen from Argentina, was sentenced in Albuquerque, New Mexico, by U.S. District Judge William P. Johnson to 60 months in federal prison followed by the three years of supervised release. His wife, Marjorie Roxby Mascheroni, 71, previously was sentenced in August 2014 to a year and a day of imprisonment followed by three years of supervised release for her conviction on conspiracy and false statement charges.
“The public trusts that the government will do all it can to safeguard Restricted Data from being unlawfully transmitted to foreign nations not entitled to receive it,” said Assistant Attorney General Carlin. “We simply cannot allow people to violate their pledge to protect the classified nuclear weapons data with which they are entrusted. Today’s sentencing should leave no doubt that counterespionage investigations remain one of our most powerful tools to protect our national security. I thank the many people who worked to bring these convictions to fruition.”
“Our laws are designed to prevent ‘Restricted Data’ from falling into the wrong hands because of the potential harm to our national security,” said U.S. Attorney Martinez. “Those who work at our country’s national laboratories are charged with safeguarding that sensitive information, and we must and will vigorously prosecute anyone who compromises our nation’s nuclear secrets for profit. I commend the many agents, analysts and prosecutors who worked tirelessly to bring about the convictions in this case. I also thank the Los Alamos National Laboratory for cooperating fully in the investigation and prosecution of this case.”
“This case demonstrates the consequences that result when those charged with protecting our nation’s secrets violate the trust placed in them by the American people,” said Assistant Director Coleman. “Safeguarding classified material is vital to the public interest, and the FBI will continue to hold accountable those who knowingly and willfully threaten the national security of the United States through the unauthorized disclosure of protected information.”
“America trusts those who work with our country's classified information to keep it away from those who would harm us. Anyone who betrays that trust for his own gain puts our nation's security up for auction, and the price for us all could be very high indeed,” said Special Agent in Charge Carol K.O. Lee of the FBI Albuquerque Division. “Since World War II, the FBI has worked tirelessly to protect U.S. nuclear weapons data, and we are proud of our investigation in this case.”
Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in September 2010 and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure an advantage to a foreign nation, as well as conspiracy to convey and conveying classified information. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Mascheroni pleaded guilty in June 2013, to counts seven and eight of the indictment, charging him with conversion of government property and retention of U.S. records, and counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to a felony information charging him with two counts of communication of Restricted Data and one count of retention of national defense information.
In entering his guilty plea, Mascheroni admitted that in November 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in November 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in October 2009.
Roxby Mascheroni pleaded guilty in June 2014, to count six of the indictment, charging her with conspiracy, and counts 16 through 22, charging her with making false statements. She also pleaded guilty to a felony information charging her with conspiracy to communicate Restricted Data. Roxby Mascheroni admitted that between October 2007 and October 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in October 2009.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.
This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution was handled by Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico and Senior Counsel Kathleen Kedian and Trial Attorney David Recker of the Counterespionage Section of the Justice Department’s National Security Division.
Former Governor of Santa Ana Pueblo Pleads Guilty to Federal Embezzlement and Tax ChargesRead the Press Release
ALBUQUERQUE – A former Governor of Santa Ana Pueblo and a real estate consultant pleaded guilty this morning to federal embezzlement and tax charges arising out of a scheme to embezzle approximately $3,575,000.00 from the Indian Pueblo Federal Development Corporation (IPFDC), an Indian tribal organization formed by the 19 Pueblos of New Mexico for the purpose of developing land that once had been the site of the Albuquerque Indian School.
Bruce Sanchez, 60, a member, resident and former Governor of Santa Ana Pueblo, N.M., entered a guilty plea to embezzlement from an Indian tribal organization and tax evasion charges. His co-defendant Thomas Keesing, 61, of Pecos, N.M., pled guilty to aiding and abetting embezzlement from an Indian tribal organization and the willful failure to file a tax return. The guilty pleas were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Dawn Mertz of the Phoenix Field Office of IRS Criminal Investigation, and Matthew Elliot, Deputy Assistant Inspector General for Investigations for the Department of the Interior.
Sanchez and Keesing were indicted in Oct. 2012, and charged with a conspiracy offense and ten substantive embezzlement offenses arising out of the scheme to steal funds belonging to the IPFDC. The 15-count indictment also charged Sanchez with three tax evasion counts alleging an aggregate federal tax loss of $655,276.00, and a misdemeanor count of willful failure to file a tax return. In Aug. 2013, Keesing was charged by information with three misdemeanor counts of failure to file tax returns and those tax charges were consolidated into the case. The information charged Keesing with failure to file federal tax returns for calendar years 2006, 2007 and 2008, even though he received gross income in the aggregate amount of $2,771,250.00 during those three years.
According to the indictment, between 2003 and 2009, Sanchez and Keesing conspired to embezzle approximately $3,575,000.00 from the IPFDC. During that time, Sanchez was the president and chief executive officer of the IPFDC. Keesing, a commercial real estate developer and the owner of New Mexico Real Estate, Inc. (NMREI), worked as a consultant for IPFDC in 2002 and 2003. Sanchez and Keesing engaged in a scheme to unlawfully profit from the development of the Albuquerque Indian School property by having Keesing submit false and fraudulently inflated invoices for payment from NMREI to the IPFDC. Sanchez approved the invoices even though the payments were vastly in excess of the value of any services provided by Keesing and NMREI. Keesing then shared the proceeds of the fraudulently obtained IPFDC payments with Sanchez. Between 2003 and 2008 and as a result of this illegal scheme, Keesing and NMREI received $3,775,000.00 in payments from the IPFDC, including $3,575,000.00 that was fraudulently obtained. During that same period, Sanchez and Tsachu, LLC, his solely-owned consulting company, received approximately $1,722,823.04 from Keesing and NMREI.
This morning, Sanchez entered guilty pleas to Counts 3 and 13 of the indictment charging him with embezzlement from an Indian tribal organization and tax evasion, respectively. Sanchez’s plea agreement details the embezzlement scheme through which Sanchez and Keesing defrauded the IPFDC of $3,575,000.00. Sanchez brought Keesing onto the IPFDC development team in 2002 and Keesing performed services for the IPFDC in 2002 and 2003. Thereafter, Sanchez and Keesing entered into a brokerage and development agreement that was never presented to the IPFDC board for approval, and used the agreement as the vehicle to perpetuate their embezzlement scheme. Between Jan. 2005 and Nov. 2008, Keesing and NMREI submitted more than 100 invoices for professional services purportedly provided in connection with the development of the Albuquerque Indian School site. Sanchez arranged for the IPFDC to pay the invoices, and in return, Sanchez and Tsachu, LLC, received more than 100 checks in the aggregate amount of $1,652,823.04 from Keesing and NMREI. Although this illegally obtained money was taxable income, Sanchez did not report the income to the IRS.
Keesing pled guilty to Count 3 of the indictment charging him with aiding and abetting embezzlement from an Indian tribal organization, and Count 1 of the misdemeanor information charging him with the willful failure to file an income tax return. Keesing’s plea agreement sets forth a detailed description of his role in the embezzlement scheme that defrauded the IPFDC of $3,575,000.00. According to his plea agreement, Keesing shared these illegally obtained proceeds with Sanchez with Sanchez taking $1,652,823.00, and Keesing retaining the balance. Keesing acknowledged that Sanchez provided nothing of value in return for this money and used Keesing as a conduit to receive IPFDC funds to which he was not entitled. Keesing participated in the scheme to obtain additional compensation for work he previously performed on behalf of the IPFDC and for which he felt he was not adequately compensated. Although the proceeds Keesing obtained from the IPFDC were taxable income, he failed to file federal tax returns reporting the income.
Sanchez and Keesing remain on conditions of release and under pretrial supervision pending their sentencing hearings, which have yet to be scheduled. At sentencing, Sanchez faces a statutory maximum penalty of five years in prison on each of the two counts of conviction. Keesing faces a statutory maximum of five years in prison on the embezzlement count and up to one year in prison on the tax count. The plea agreements also require that Sanchez and Keesing pay full restitution to the IPFDC for the losses it sustained as a result of their criminal conduct.
In announcing the guilty pleas, U.S. Attorney Damon P. Martinez said, “The IPFDC was established to develop real estate for the benefit of the 19 Pueblos of New Mexico and their people. Bruce Sanchez was entrusted to spearhead that development. Instead, Sanchez betrayed the people he was duty-bound to serve.”
“Mr. Sanchez and Mr. Keesing used their positions of power to line their own pockets at the expense of the members of New Mexico’s Pueblos. By pleading guilty today and accepting responsibility, the defendants have taken a positive first step in making amends for the harm they have caused,” stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
“The investigation and successful prosecution of Sanchez and Keesing exemplifies the good that occurs when law enforcement agencies and the Department of Justice collaborate in the public interest,” said Matthew Elliott, Deputy Assistant Inspector General for Investigations for the Department of the Interior.
The case was investigated by the IRS Criminal Investigation and the Department of the Interior’s OIG, and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Former Detroit Public Library Contractors Sentenced on Bribery ChargesRead the Press Release
Two former contractors with the Detroit Public Library were sentenced late yesterday afternoon on charges of bribery of a public official, United States Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement were Paul M. Abbate, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jarod Koopman, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
James Henley, 44, of Detroit, and Ricardo Hearn, 32, of Royal Oak, were sentenced to 27 months and 28 months, respectively, by United States District Judge George Caram Steeh. Each man also was ordered to pay $750,000 in restitution to the Detroit Public Library for losses suffered by the library as a result of the crimes.
According to court records, Henley and Hearn paid former Detroit Public Library Chief Administrative Officer Timothy Cromer a total of $1.4 million in kickbacks in return for contracts for information technology services with the Detroit Public Library during the period 2007 to 2010. After being confronted by federal law enforcement officials, Henley and Hearn both cooperated in the prosecution of Cromer. On September 16, 2014, Cromer was sentenced to 10 years in prison for his role in the bribery conspiracy, and ordered to pay $3,913,890.42 in restitution to the library.
Henley owned a company called Core Consulting & Professional Services. Cromer approved a proposal submitted by Core Consulting to provide information technology work, and approved various extensions and change orders to the contract. Ultimately, the Library paid Core Consulting almost $2 million under the contract, and Henley secretly paid kickbacks to Cromer totaling over $650,000 during the period 2007 to 2008. Henley also pleaded guilty to failing to file tax returns for the year 2007. Hearn, who owned Cubemation LLC, paid Cromer kickbacks totaling about $800,000 in exchange for Cromer approving no-bid professional services contracts for Hearn’s company to perform information technology services for the library from 2008 until 2010. Cubemation received about $3.2 million in payments from the Detroit Public Library
"This case demonstrates that not just bribe takers, but bribe payers will be held accountable in appropriate cases. Everyone who corrupts the system should be brought to justice," said United States Attorney McQuade.
“All those involved in the misappropriation of government funds for their own selfish purposes violate federal law and betray the trust of the citizens they purport to serve,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, and its local, state and federal law enforcement partners, remain vigilant in the fight against public corruption, and committed to bringing to justice those who abuse the public’s trust.”
“It’s disappointing when the public trust is abandoned by the actions of a few,” said IRS Acting Special Agent in Charge Jarod Koopman. “IRS-Criminal Investigation will continue to identify and help prosecute those that attempt to deceive the public, abuse the system and use their position for their own personal gain. These sentences will hopefully send a message to others that not only will they be held to the highest standard, but they will be punished equally.”
The case was investigated by agents of the FBI and IRS-Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Mark Chutkow and Julie BeckFederal jury convicts two men involved in multiple armed robberiesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that two men were found guilty by a federal jury, following a nearly three week trial at the Robert C. Byrd United States Courthouse in Charleston.
Darrell E. Gillespie, 29, of Smyrna, Georgia; and Jamaa I. Johnson, 34, of Wytheville, Virginia; were found guilty of conspiracies to commit armed robbery and to use firearms in crimes of violence, as well as offenses relating to obstruction of justice.
The conspiracy involved armed robberies dating back to the fall of 2011 in Pittsburgh. Gillespie, joined by co-defendants Brandon Davis and Robert Barcliff, traveled to Pittsburgh to rob a drug dealer that Davis knew. After the robbery, the men came back to Charleston to split up marijuana stolen in the robbery.
Over the next four months, Gillespie, or his co-conspirators, participated in six more robberies in West Virginia and Virginia. All involved firearms, and during the Jan. 18, 2012 robbery of Cabell Franklin in Charleston, committed by at least Robert Barcliff and Brandon Davis, Cabell Franklin was shot in the leg and stabbed.
Throughout the trial, multiple victims and co-conspirators of Johnson and Gillespie took the stand to testify against the two men. Barcliff, Davis and Glenn all testified to the defendants’ involvement in the robberies, the use of firearms and the conspiracy to commit the crimes. Barcliff and Megan Smith, Johnson’s ex-girlfriend, also testified to the defendants’ efforts to cover up the crimes.
Barcliff testified that he and Gillespie worked out a false alibi for a robbery that took place March 22, 2012, in Bristol, Virginia. The two men planned to use a female friend, who was uninvolved in the crimes, to say she had been with Gillespie that entire night. The friend said she received calls from a person identifying himself as DJ, a known nickname for Gillespie, who asked her to provide a false alibi for him. She refused.
Johnson was found guilty of witness tampering by attempting to use Smith, his ex-girlfriend, to craft his false alibi. Smith said Johnson sent her a letter requesting her to “please get this prepared” and “I need you to really remember that trip you took to see me.” He was referring to a fake trip to Richmond, Virginia, but Smith confirmed that trip never happened, and that she drove him instead to Charleston on January 18, 2012, the day of the Franklin robbery, so he could destroy evidence.
Gillespie faces a mandatory minimum sentence of 30 years, and up to life, in prison when he is sentenced on May 6, 2015. Johnson faces up to 45 years in prison when he is sentenced on May 6, 2015.
United States District Judge Thomas E. Johnston presided over the trial.
The case was investigated by the Federal Bureau of Investigation, South Charleston Police Department and Charleston Police Department. Assistant United States Attorneys Monica D. Coleman, Meredith Thomas and Timothy Boggess were in charge of the prosecution.
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Federal Jury Convicts Laredoan in Alien Harboring ConspiracyRead the Press Release
LAREDO, Texas – A Jury sitting in Laredo has convicted Gustavo Villegas, 28, of Laredo, tonight of all four counts related to harboring 21 illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict less than an hour ago following a two-day trial and 90 minutes of deliberation.
The jury heard that Villegas took part in a conspiracy to smuggle and harbor illegal aliens in Laredo in July 2014. Villegas transported illegal aliens to a local Burger King restaurant as well as both the American Best Value Inn and Gateway Inn hotels in Laredo. Homeland Security Investigations (HSI) ultimately discovered a total of 21 illegal aliens at the hotels. Through ongoing investigation, agents tracked vehicles to Villegas and others and he was arrested on Oct. 23, 2014.
When HSI agents learned of a smuggling event which was to occur at an HEB parking lot in Laredo, they began conducting surveillance and witnessed a number of persons exit a Ford Focus car and get into a Dodge Durango truck Villegas was driving. Agents followed the vehicle to a Burger King where four of the people got out of the Dodge truck and boarded another vehicle bound for America’s Best Value hotel in Laredo. Several people got out and entered a room at the hotel. Agents witnessed similar activity leading them to the Gateway Inn hotel where more individuals were seen entering that hotel on two separate occasions. Eventually, agents knocked on the doors of both hotels and asked for consent from the occupants.
The jury heard and was provided evidence that Villegas had rented the room at America’s Best Value hotel which was found to hold seven El Salvadoran nationals and one Honduran national. Co-defendant Rodolfo Castaneda rented the Gateway Inn hotel room which held 13 El Salvadoran nationals.
At trial, the United States presented testimony from numerous HSI agents, the undocumented aliens as well as local hotel owners. The government also provided evidence of vehicle registration information connecting Villegas to multiple vehicles used in this conspiracy.
Castaneda previously pleaded guilty and is awaiting sentencing.
U.S. Senior District Judge Janis Graham Jack presided over trial and sentencing will be set at a later date.
HSI conducted the investigation. Assistant U.S. Attorneys Jorge Vela and Sanjeev Bhasker prosecuted the case.
Eufaula Man Sentenced to 150 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that SEAN DEVAL WARRIOR a/k/a Sean G, age 33, of Eufaula, Oklahoma, was sentenced to 150 months imprisonment, followed by 36 months of supervised release for Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).
Charges arose from an investigation by the District 18 and District 25 Drug and Violent Crime Task Forces, Eufaula Police Department and the Drug Enforcement Administration. The defendant was indicted in August, 2014 and pled guilty in September, 2014.
The Indictment alleged that on or about January 24, 2014, in the Eastern District of Oklahoma, SEAN DEVAL WARRIOR a/k/a Sean G, defendant herein, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Department of Justice Diagnostic Center Provides Final Assessment to Minneapolis Police Department to Help Build Trust Between Police and the CommunityRead the Press Release
Today, the U.S. Department of Justice’s Office of Justice Programs’ (OJP) Diagnostic Center and the Minneapolis Police Department (MPD) released the final assessment and implementation plans to support the MPD’s accountability procedures. The Diagnostic Analysis will allow MPD to implement changes that will improve police and community trust in the Minneapolis community. The assessment focused on goals set by MPD including improving police accountability and preventing officer misconduct.
The Diagnostic Center analyzed citizen complaints over a six-year period, identified strengths and gaps in oversight, discipline and accountability, and evaluated MPD’s current early-intervention system and how it compares to other model systems. The full report is available at the Diagnostic Center’s website.
“Strengthening relationships between law enforcement agencies and the communities they serve is one of the defining public safety challenges of our time,” said Assistant Attorney General Karol V. Mason for the Office of Justice Programs. “I commend Chief [Janeé] Harteau for calling on the resources of the OJP Diagnostic Center and for her commitment to building trust with the citizens of Minneapolis.”
In 2014, the Diagnostic Center conducted an independent assessment including community stakeholder interviews and data analysis to identify promising practices for police accountability related to managing oversight and preventing misconduct. In October 2014, the Diagnostic Center presented its assessment findings to the MPD and broader Minneapolis community. Since the presentation of the Diagnostic Center’s Analysis, the MPD has moved forward with creating five committees comprising representatives from MPD, the Office of Police Conduct Review, city leadership and the community to address recommendations on police conduct, early interventions systems, community outreach, and coaching and strategic communications.
“The work that the Minneapolis Police Department and the Diagnostic Center have embarked on fits squarely into the goals of community safety, officer safety and criminal justice reform that the Justice Department has made a top priority,” said Deputy Assistant Attorney General Mark Kappelhoff for the Justice Department’s Civil Rights Division. “I applaud Chief Harteau, the Minneapolis Police Department and the community on their leadership and commitment to implementing sustainable solutions that will lead to increased public trust and safety for everyone.”
The Diagnostic Center provides customized technical assistance to help state, county, city and tribal communities identify and confront persistent, systemic public safety challenges. In addition to addressing a particular public safety concern, engagement with the Diagnostic Center is intended to build the community’s capacity to act independently and use data to make future policy and programming decisions. Federal agencies and experts across the Department of Justice are available to leverage resources and develop a coordinated federal response to community-specific public safety issues and provides customized assistance to communities by collecting and analyzing data to identify the factors contributing to the public safety issue and then mapping those factors to strategies and solutions that have demonstrated success in reducing crime.For more information or to request assistance go to https://www.ojpdiagnosticcenter.org/.
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance, the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.Denton County Man Guilty of Wire Fraud ChargesRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 35-year-old Little Elm, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joey Earl Cooper pleaded guilty to wire fraud today before U.S. District Judge Amos L. Mazzant.
According to information presented in court, from April 2011 to July 2012, Cooper controlled a Wells Fargo bank account in the name of Darmaini & Cooper BG, Inc., in Frisco, Texas. Cooper also operated a private postal center in Little Elm, Texas. During this time, Cooper devised a scheme to defraud two customers of his private postal center and Citibank by using the customer’s Citibank credit card, which was only provided to Cooper to pay for the customer’s mailings from his private postal center, to transfer funds from Citibank to his Wells Fargo bank account. Cooper would then withdraw the funds from his Wells Fargo account and use the money for his own personal benefit.
Cooper was indicted by a federal grand jury on Aug. 13, 2014 charging Cooper with federal violations. He was arrested by Special Agents of the IRS Criminal Investigation on Sep. 14, 2014 at JFK International Airport in New York.
Cooper faces up to 10 years in federal prison and forfeiture of $1,001,360.92. A sentencing date has not been set.
This case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Dallas Former Mortgage Broker Guilty of FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 55-year-old Dallas former mortgage broker has pleaded guilty to federal charges in connection with a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jose Antonio Caballero pleaded guilty to defrauding the Department of Housing and Urban Development and Federal Housing Administration today before U.S. District Judge Amos L. Mazzant.
According to information presented in court, Caballero owned and operated American Processing Center, providing assistance to homeowners with mortgage loan modification programs, including the Home Affordable Modification Program. Between March 2011 and December 2011, Caballero worked with homeowners in Mesquite, Texas to obtain an extension and renewal of a loan and mortgage on their residence on Bayberry Drive, which was insured by the Department of Housing and Urban Development. In the process, Caballero falsified documents, including a Statement of Hardship Letter, a Monthly Income Expense Worksheet, and a Making Home Affordable Program Request for Modification and Affidavit. Caballero did so knowing the documents were fraudulent and for the purpose of defrauding the federal agencies.
Caballero also engaged in similar conduct with respect to 20 other properties located in Carrollton, Dallas, Farmers Branch, Fort Worth, Garland, Grand Prairie, Irving, Little Elm, Mesquite, and Rowlett, some of which were secured by Fannie Mae and Freddie Mac.
Caballero faces up to two years in federal prison at sentencing. A sentencing date has not been set.This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Department of Housing and Urban Development, Office of Inspector General, and the Federal Housing Finance Agency, Office of Inspector General and prosecuted by Assistant U.S. Attorney Christopher A. Eason.Columbian National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TEOFILO RIASCOS-OROBIA, age 43, a native of Columbia, pled guilty today to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, RIASCOS-OROBIA was found in the United States on November 21, 2014, after having been previously removed from the United States on June 23, 1997.
RIASCOS-OROBIA faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Helen G. Berrigan set sentencing for May 6, 2015.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Cleveland Man Indicted for Fraudulently Obtaining Nearly $1 Million from Now-Closed Credit UnionRead the Press Release
A six-count federal indictment was unsealed today charging a Cleveland man with fraudulently obtaining nearly $1 million from the now-closed St. Paul Croatian Federal Credit Union, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Joe Spaqi, 60, was arrested Wednesday. He was indicted on four counts of financial institution fraud and two counts of money laundering.
Spaqi aided and abetted credit union chief operating officer Anthony Raguz and a relative identified only as P.S. in a scheme to defraud the credit union between 2005 and 2009. Spaqi did this by requesting loans from the credit union through Raguz. He did not follow established procedures and made false statements to obtain these loans, according to the indictment.
Raguz approved multiple loans to Spaqi, Eclipse Bar and Grill (which Spaqi owned) or Luke Nue (an alias he used) which totaled approximately $965,422. Those monies were paid in checks to Spaqi, Eclipse, Nue, P.S. and unrelated third parties. As a result, the credit union and National Credit Union Administration suffered losses of approximately $965,422, according to the indictment.
Spaqi is also accused of depositing fraudulent loan proceeds from Eclipse Bar and Grill into her personal share accounts, according to the indictment.
The credit union, headquartered in Eastlake, was closed and then liquidated in 2010 after sustaining losses of approximately $170 million, making it one of the largest credit union failures in American history. Nearly 20 people have been convicted of crimes related to fraudulent lending that resulted in the credit union’s failure.
Raguz is currently serving a 14-year federal prison sentence. He is one of nearly 20 people have been convicted of crimes related to St. Paul Croatian Federal Credit Union.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan and United States Attorney Steven M. Dettelbach following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Christopher Ryan Jenkins Sentenced for Methamphetamine Manufacturing ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On Jan. 28, 2015, Christopher Ryan Jenkins, 28, of Rockwood, Tenn., was sentenced to serve 240 months in prison, by the Honorable Pamela Reeves, U.S. District Judge, for conspiracy to manufacture 50 grams or more of methamphetamine (meth) and possession of precursors used to manufacture meth. Upon his release from prison, he will be supervised by the U.S. Probation Office for 10 years.
Jenkins was charged along with 17 others in a July 2014 indictment. He pleaded guilty to the offenses described above in September 2014. According to the plea agreement on file with U.S. District Court, between 2012 and 2014 Jenkins conspired with at least one other person to manufacture at least 50 grams of meth in various locations in east Tennessee. According to pharmacy records and by his own admission, he purchased, or had others purchase for him, pseudoephedrine that he used to manufacture meth.
“These cases demonstrate the tremendous impact that collaborative investigations among law enforcement agencies can help to combat methamphetamine production and distribution,” said U.S. Attorney Bill Killian. “The U.S. Attorney’s Office will continue to prosecute these types of cases to help rid communities of this harmful drug and the environmental impact caused by its production.”
Federal Bureau of Investigation (FBI) Special Agent in Charge Edward W. Reinhold said, “Manufacturing methamphetamine is a dangerous business and the community will not stand by while the drug trade goes on unchecked. The FBI commends the collaboration among the local law enforcement agencies, who devoted significant resources during this investigation.”
“We are gratified by the outcome in this joint investigation,” said Tennessee Bureau of Investigation (TBI) Director Mark Gwyn. “We will continue to work in partnership to identify and hold accountable those who cook meth. This is a tough fight, but we’re committed to the effort to eradicate this deadly drug.”
Sheriff Jack Stockton said, “The Roane County Sheriff’s Office hopes that this stiff sentence for a very young offender sends a message to all methamphetamine cooks that their lawlessness will not be tolerated and their crimes will be severely punished. I thank the United States Attorney’s Office for its continued partnership in addressing the methamphetamine problem in the East District of Tennessee.”
This case was investigated by the Roane County Sheriff’s Office, Harriman Police Department, Rockwood Police Department, Kingston Police Department, TBI and FBI. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.