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Monday 26 January 2015
Naples Man Indicted for Million Dollar Internet Fraud SchemeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jeffrey Ihm (47, Naples) with multiple counts of wire fraud and aggravated identity theft. Each wire fraud count carries a maximum penalty of 20 years in federal prison. In addition, he faces a maximum penalty of two years’ imprisonment for each aggravated identity theft offense, to be served consecutively to any wire fraud conviction. The indictment also notifies Ihm that the United States is seeking a money judgment against him in the amount of $1,064,664.74, and intends to forfeit the house located at 3343 Pacific Drive, Naples, Florida, which are both alleged to be traceable to proceeds of the fraud.
According to the indictment, Ihm assumed the identities of and posed as three different Roper Industries, Inc. executives. He then generated false and fraudulent emails and other documents in the names of Roper Industries, Inc. and Kynetic Technologies, LLC to defraud Wells Fargo Bank, causing the bank to wire him $1,064,664.74 to which he was not entitled.
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 United States Secret Service and the Federal Bureau of Investigation, with assistance from the Economic Crimes Unit of the Collier County Sherriff’s Office. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Dale R. Campion.
Montana Welcomes Bryan Garner for Tribal Court TrainingRead the Press Release
BILLINGS -- America’s foremost authority of training in legal writing, editing, and drafting, Bryan Garner, will be in Billings, Montana on January 26, 2015, for a legal writing workshop for tribal court judges and practitioners. The event is sponsored by the Bureau of Indian Affairs Tribal Court Services and hosted by the District of Montana’s United States Attorney’s Office. The Montana Department of Justice Office of Consumer Protection and Victim Services is a cosponsor of the event.
Garner is editor in chief of Black’s Law Dictionary and the author of many leading works on legal style, including A Dictionary of Modern Legal Usage, The Elements of Legal Style, The Redbook: A Manual on Legal Style, The Winning Brief, and The Winning Oral Argument. His latest books are Making Your Case: The Art of Persuading Judges, co-written with Justice Antonin Scalia, and Garner on Language and Writing, an anthology published by the American Bar Association.
"The United States Attorney=s Office is pleased to welcome Mr. Bryan Garner to Montana for this training,” said Montana U.S. Attorney Mike Cotter. “We are excited to have a tribal court training that features the highest caliber of trainers. In addition to welcoming tribal court practitioners from Montana, we welcome our out of state tribal court practitioners to Billings for this unique opportunity to advance writing skills.”
"As part of the Office of Indian Affairs' commitment to provide exceptional tribal court training, the BIA is excited to collaborate with the United States Attorney's Office for the District of Montana and the Montana Attorney General's Office," said Assistant Secretary for Indian Affairs Kevin K. Washburn. "This collaboration insures that tribal courts will receive first class training because Indian people deserve first rate justice."
Fifty applicants, representing five states and 18 different tribes and tribally connected entities, have been accepted for this event. Bureau of Indian Affairs intends to offer two more national trainings featuring Garner in other venues, in the future.
Mexican National Sentenced to 15 Years for Participating in a Brutal Family Run Sex Trafficking OrganizationRead the Press Release
The Department of Justice today announced a sentencing and guilty plea for two members of a family run sex trafficking organization based in southern Florida. Rafael Alberto Cadena-Sosa was sentenced by U.S. District Court Judge Joes E. Martinez to serve 15 years in prison and Carmen Cadena pleaded guilty before U.S. District Court Judge Jose Martinez for participating in a brutal family run sex trafficking organization.
Rafael Alberto Cadena-Sosa
Cadena-Sosa, 46, a Mexican national, was sentenced to serve 15 years in prison for conspiring and holding a person in a condition of involuntary servitude. Judge Martinez also ordered Cadena-Sosa to pay $1,261,563 in restitution to sixteen different victims.
On Oct. 9, 2014, Cadena-Sosa pleaded guilty to conspiracy and to holding a person in a condition of involuntary servitude. As part of his plea, Cadena-Sosa admitted that he, along with other family members and associates, approached women and girls, some as young as fourteen years old, in Veracruz, Mexico, and lured them into coming to the United States using false promises of legitimate jobs. After illegally smuggling women and girls into the United States, Cadena-Sosa and other family members imposed a smuggling debt and used brutal physical force and violence, sexual assaults, and threats of death and bodily harm to the victims and their families to compel the victims to engage in prostitution 12 hours a day, six days a week and turn over the proceeds to the defendants to pay down the smuggling debts the defendants imposed. Cadena-Sosa and other family members would also search for victims who had run away from a brothel and subject them to beatings and rapes upon capture.
Carmen Cadena
Cadena, 48, a Mexican national, pleaded guilty to one count of conspiracy for conspiring with other members of the Cadena organization to unlawfully encourage and bring undocumented victims into the U.S.; unlawfully transport victims within the U.S.; unlawfully harbor victims within the U.S.; unlawfully coerce and transport victims, including victims as young as 14-years-old, into the U.S. for purposes of illegal sexual activity; and unlawfully use extortionate means to collect extensions of credit made to the victims.
Cadena faces a maximum sentence of five years in prison and a fine of $500,000. Sentencing is scheduled to occur on May 18, 2015. According to the terms of the plea agreement, the parties will jointly recommend the maximum sentence of five years in prison and $1,261,563 in restitution to 16 victims.
Sixteen defendants were charged in a superseding indictment filed in 1998. Mexican authorities arrested Rafael Alberto Cadena-Sosa and Carmen Cadena and extradited them to the United States in November 2013 and December 2014, respectively. Four other members of the Cadena sex trafficking organization have been convicted, including Cadena-Sosa’s uncle, Rogerio Cadena, who pleaded guilty in 1999 and was sentenced to 15 years; Cadena-Sosa’s brother, Abel Cadena-Sosa, who was convicted in Mexico and sentenced to 24 years, and two other brothers, Hugo and Juan Luis Cadena-Sosa—Carmen Cadena’s husband—, who pleaded guilty in 2002 and 2008, and were sentenced to five years and 15 years respectively. Six other defendants previously pleaded guilty in federal court in connection with the scheme, and one was convicted in state court for a murder outside a Cadena-run brothel.
Since 2009, the Departments of Justice and Homeland Security as well as law enforcement agencies in Mexico, have worked to develop high-impact prosecutions to dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children held under the trafficking networks’ control. These efforts have resulted in numerous successful prosecutions, including U.S. federal prosecutions of over 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009.
“No human being should have to endure the violence and brutality these young women and girls suffered at the hands of the Cadena organization,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These violations of the victims’ individual rights and freedom are intolerable and the Department of Justice will continue in its commitment to bringing human traffickers to justice and restore the rights and dignity of the courageous survivors of this crime.”
“Rafael Cadena-Sosa and Carmen Cadena preyed on vulnerable girls and young women and lured them to the United States with the promise of a better life,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “Instead, Cadena-Sosa and his family and associates robbed these victims of their freedom and dignity, brutally beat them and subjected them to modern-day slavery. The dismantling of the Cadena organization reaffirms our unwavering commitment to prosecute those who seek to profit at the expense of the suffering of to others. We will continue to work with our domestic and international law enforcement partners to bring justice to those who engage in this inhumane practice. This case is one example of bilateral progress to effectively dismantle human trafficking networks operating across the U.S.-Mexico border.”
“The long prison sentence imposed upon Rafael Alberto Cadena-Sosa is a testament to the cooperation and commitment of numerous law enforcement agencies both here and in Mexico to stop this appalling criminal activity,” said Special Agent in Charge George L. Piro of the FBI Miami Office. “We will continue working with our partners to dismantle human trafficking networks such as this one that operate in the shadows and brutalize their victims.”
Acting Assistant Attorney General Gupta and U.S. Attorney Ferrer praised the collaborative efforts of multiple law enforcement agencies throughout the investigation and prosecution, including the Federal Bureau of Investigation, the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco and Firearms, the Office of International Affairs, Criminal Division, U.S. Department of Justice, Florida Department of Law Enforcement, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Okeechobee County Sheriff’s Office, Fort Pierce Police Department, Avon Park Police Department, Boynton Beach Police Department, and Lee County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Adam McMichael and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Members of Drug Organization IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a federal grand jury indictment in Operation Drop the Hammer, an extensive investigation into a drug trafficking network operating in the Baton Rouge and Denham Springs area.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The following nine individuals have been charged:
- Darryl Q. Cobb, also known as “Hammer Bob” and “Hammer,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine and cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
- Tabari A. Wilkerson, also known as “T,” age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; unlawful use of a communications facility; and forfeiture.
- Morgan M. Dillon, also known as “Mo,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
- Thurman Ray Morris, age 57, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; unlawful use of a communications facility; and forfeiture.
- Gerald Norwood Cobb, age 63, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; unlawful use of a communications facility; and forfeiture.
- Lashonda Desiree Cobb, age 31, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture.
- Dequincy M. Conley, also known as “Dee Dee,” age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and forfeiture.
- Troy Lee Albert, also known as “Shine,” age 32, of Albany, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and forfeiture.
- Shabass J. Dantzler, age 25, of Springfield, Louisiana, is charged with unlawful use of a communications facility.
If convicted, each defendant could face significant incarceration, fines, restitution, and supervised release following imprisonment.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue to focus our energies and resources on eradicating drug trafficking organizations and the violence that comes with them. To be clear, dangerous drug dealers will find no safe haven within the federal criminal justice system. I greatly appreciate the hardworking team of agents and prosecutors for their tireless efforts during this important operation. In particular, I would like to recognize the tremendous contribution of the late Officer James E. Foster, Jr., Denham Springs Police Department, who recently lost his life in the line of duty while responding to an emergency. In remembering Officer Foster, we are reminded of the sacrifices that law enforcement officers and their families make every day to ensure the safety of our community.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Today’s indictment and arrests stand as a warning to those individuals whose greed drives them to pollute the greater Baton Rouge area with poisonous contraband. The message that law enforcement continues to send to drug dealers is, selling drugs will bring an end to your freedom. DEA and our other federal, state, and local counterparts will remain steadfast in our resolve to rid our community of this clear and present danger.”
Livingston Parish Sheriff Jason Ard stated: “It’s an honor that the hardworking men and women, who make up my Narcotics Division, played a vital role in this extensive investigation. The teamwork between agencies helps to keep us all safe.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Agency, the Livingston Parish Sheriff’s Office, and the Denham Springs Police Department, with assistance from the 21st Judicial District Attorney’s Office, East Baton Rouge Sheriff’s Office, Baton Rouge City Police Department, and the Louisiana State Police. This matter is being prosecuted by Assistant United States Attorney Cam T. Le.NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
- Darryl Q. Cobb, also known as “Hammer Bob” and “Hammer,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine and cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
Marvin Tyrone White Is Sentenced to Wire FraudRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Marvin Tyrone White was sentenced today on a guilty plea to one count of access device fraud. White received $29,000 dollars in claims benefits from the Gulf Coast Claims Facility that he was not entitled to receive.
White was sentenced to the five years of probation and ordered to pay full restitution to the Gulf Coast Claims Facility. This case was investigated by the United States Secret Service and prosecuted by the United States Attorney’s Office.
Local Tax Preparer Charged with False Tax Return PreparationRead the Press Release
HOUSTON – A Houston federal grand jury has returned an indictment charging Doyle J. Blevins Jr., of Willis, with 27 counts of preparing false client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation.
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned Jan. 21, 2015. Blevins surrendered to authorities this morning and will make his initial appearance before U.S. Magistrate Judge George C. Hanks at 2:00 p.m. today.
According to the indictment, Blevins operated a tax return preparation business in Willis under the name Total Refund Tax Service. The indictment alleges he prepared dozens of materially false client tax returns during calendar years 2008 through 2010. The indictment also alleges he included in these tax return bogus “side business” losses in order to generate excessive refunds totaling approximately $285,000.
If convicted, Blevins faces up to three years in federal prison and a possible $250,000 fine on each count.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that James Craig Lebo, 46, of Lincoln, Nebraska, was sentenced on January 23, 2015, in Lincoln, Nebraska, to 60 months in prison by United States District Judge John M. Gerrard, for possessing child pornography. Jones was also ordered to complete a ten-year term of supervised release after serving his prison sentence. Jones will also be required to register as a sex offender for the remainder of his life.
On April 24, 2014, an investigator with the Lincoln Police Department was investigating computers sharing child pornography files via the internet. On that date, an IP address was identified as having files available for sharing and investigators were able to download files from a computer at that IP address. Subsequent investigation revealed that the IP address was registered to Lebo. In June of 2014, investigators executed a search warrant at Lebo’s residence and made contact with him. During the execution of the search warrant, Lebo was interviewed and admitted he used file sharing software on his computer to file share and download files which have been identified as child pornography because they depict sexually explicit conduct involving children under the age of 18 years old.
A forensic investigation of Lebo’s computer showed that he had received images of child pornography from December of 2013 through June of 2014. The forensic exam also revealed that Lebo received 153 videos and approximately 10,000 images of child pornography. Included in the items were videos and images of prepubescent minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Lincoln Police Department.
Leader of Mail Theft Ring, "Superman," Charged in 18-Count Indictment with Three Co-ConspiratorsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that four Anchorage residents were charged in an eighteen-count indictment for their role in a mail theft ring that involved distribution of methamphetamine.
Jonathan Ortiz Escalante, aka “Superman,” 45, of Anchorage, was charged in an eighteen-count indictment with conspiracy, theft of mail, credit card fraud, bank fraud, counterfeit securities, aggravated identity theft, trafficking in methamphetamine, and being a felon in possession of firearms in relation to a shooting in Anchorage. Escalante was previously convicted of conspiring to commit bank fraud in Washington and is therefore prohibited from possessing firearms.
Neasha Martha Moore, 24, of Anchorage, is charged in three counts of the indictment with conspiracy, bank fraud, and counterfeit security, for her role in cashing checks stolen from the mail.
Ralph Edward Oliver, 20, of Anchorage, is charged in two counts of the indictment with conspiracy and attempted bank fraud for his role in attempting to cash checks stolen from the mail.
John Fred Brittain, 23, of Anchorage, is charged in two counts of the indictment with conspiracy and theft of mail for his role in stealing mail in exchange for methamphetamine.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Escalante aka “Superman” is alleged to be the leader of a mail theft ring in Anchorage. The indictment charges that Escalante solicited Brittain and others to steal mail and identification cards that he then altered and used to cash stolen checks. Escalante also used stolen credit cards and forged counterfeit securities, and distributed methamphetamine to Brittain and others in exchange for stolen mail. Escalante solicited Moore, Oliver, and others to cash the fraudulent checks. The felon in possession count alleges that Escalante possessed two different Ruger 9mm pistols while he carried out his drug trafficking crimes.
Escalante made his initial appearance before United States Magistrate Judge Kevin McCoy on January 23, 2015. The remaining defendants are not yet in federal custody.
Escalante is facing a mandatory minimum of five years’ incarceration and a maximum of forty years’ incarceration, and a $5 million fine. Moore and Oliver are facing a maximum of thirty years’ incarceration and a $1 million fine. Brittain is facing a maximum of five years’ incarceration and a $250,000 fine.
Ms. Loeffler commends the U.S. Postal Inspection Service, the ATF, the FBI Safe Streets Task Force, and APD for the investigation of this case.
Lanham Man Sentenced to over 3 Years in Prison for Using Stolen Personal Information to Buy Precious MetalsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Olusegun Adebiyi, age 42, of Lanham, Maryland, today to 39 months in prison followed by three years of supervised release for wire fraud and aggravated identity theft arising from a fraud scheme to obtain precious metals using stolen personal information of two victims. Judge Chasanow also entered an order that Adebiyi pay $122,500 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea, on July 3, 2013, Adebiyi and his co-schemers faxed a copy of a fraudulent Maryland driver’s license in the name of a victim to Gold Bullion International (GBI) to complete the process of opening a trading account. Between July 23 and August 27, 2013, Adebiyi and his co-schemers fraudulently purchased precious metals from GBI worth $122,500 in the victim’s name, and caused GBI to deliver those precious metals to an address in Washington, D.C. The payment was made by transferring money from the victim’s bank account without his knowledge.
Similarly, on September 26, 2013, Adebiyi and his co-schemers faxed a copy of a fraudulent Maryland driver’s license in the name of another victim to GBI to complete the process of opening a trading account in this second victim’s name. The fax was sent from a store in College Park, Maryland and Adebiyi’s activities were captured on video. Shortly thereafter, GBI requested that the documents be resubmitted. On October 9, 2013, Adebiyi sent the same information to GBI from the same store which was also captured on video. Thereafter, Adebiyi attempted to purchase precious metals worth $44,833.50 in the name of the second victim and attempted to cause GBI to deliver those items to an address in Washington, D.C.
On November 6, a controlled delivery of the precious metals to the Washington D.C. address was attempted through UPS. Law enforcement observed the defendant drive into the area shortly before the delivery was scheduled. The package was recalled because the delivery address was incomplete. Law enforcement saw Adebiyi leave the area approximately 15 minutes after the package was recalled. GBI, working with law enforcement, rescheduled the delivery for November 14, 2013. Law enforcement again observed Adebiyi drive into the area shortly before the delivery was scheduled. The UPS driver went into the apartment building carrying a package and was observed exiting the building carrying the same package. Law enforcement arrested Adebiyi as he was leaving and seized pieces of paper containing the UPS package tracking numbers for the November 14 delivery, the second victim’s identifying information and the UPS tracking numbers for the November 6 delivery.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Lake Jackson Man Gets Five Years for Distributing Child PornographyRead the Press Release
HOUSTON – Lake Jackson resident Bradley Beckerdite, 25, has been sentenced to federal prison following his convictions for distribution and possession of child pornography, United States Kenneth Magidson announced today. Beckerdite pleaded guilty May 12, 2014.
Today, U.S. District Judge Lynn Hughes, who accepted the guilty plea, handed Beckerdite a term of imprisonment of 60 months. He was further ordered to serve five years of supervised release following completion of that term. Beckerdite must also register as a sex offender.
Beckerdite was indicted on April 24, 2013, following an investigation conducted by the Houston FBI Child Exploitation Task Force. That investigation revealed that Beckerdite was making child pornography available to others through the use of peer-to-peer software over the Internet. A special agent downloaded an image of child pornography from the images/videos Beckerdite was making available online. The images included children under the age of 12 being sexually violated by adults and children under the age of 12 in positions which caused their genitalia to be displayed in a lewd/lascivious manner. Bondage involving children was also present on the defendant’s computer.
Law enforcement executed a search warrant on Sept. 6, 2012, at the home of a third party. Beckerdite used the Internet connection at that residence to receive and distribute child pornography in an attempt to avoid detection. The examination of the computer media ultimately obtained from Beckerdite revealed more than 11,000 digital images and approximately 145 videos which contained child pornography.This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KTM Industries, Inc. Resolves False Claims Act Allegations Involving National Science Foundation AwardRead the Press Release
GRAND RAPIDS, MICHIGAN – KTM Industries, Inc. (“KTM”), a Lansing-based company that develops and manufactures biodegradable engineered foam, has agreed to pay $170,923.65 to the federal government to resolve allegations that it fraudulently obtained funding under a National Science Foundation (“NSF”) award in violation of the federal False Claims Act. As part of the settlement, KTM’s CEO agreed to pay an additional $25,000 and submit to a three-year exclusion from participation in federal programs, grants, and contracts. The government previously received $54,076.35 from Michigan State University (“MSU”) in a related investigation into whether, under a subcontract with KTM, MSU spent NSF award funds on unallowable equipment. KTM, KTM’s CEO, and MSU did not admit liability as part of their respective settlements.
In September 2010, NSF awarded KTM Phase II funding under a Small Business Technology Transfer (“STTR”) grant to support the development of chemically-modified plastic starch bio-foams. The United States alleged that to obtain and maintain this funding, KTM and its CEO knowingly made a number of false statements and supplied NSF and NSF contractors with false documents. These false statements and false documents concerned, among other things, KTM’s accounting system and timekeeping records, the actual expenditure of NSF award funds, and the primary employment and payment of the principal investigator on the NSF project. The United States further alleged that during the investigation of this case, KTM produced 24 false and fraudulent employee timesheets in response to an administrative subpoena, the creation of which timesheets was directed by the company’s CEO.
“Those who seek federal funding must be truthful and accurate in their dealings with government agencies,” said U.S. Attorney Patrick Miles. “Companies and individuals that make misrepresentations to obtain such funding undermine the integrity of the grant process and unfairly divert funds from qualified grantees who will play by the rules.”
Allison Lerner, NSF’s Inspector General said, “STTR funding is a valuable tool for small businesses to develop innovative technologies. Unscrupulous individuals and companies who lie to fraudulently obtain these funds will not be tolerated. I commend the U.S. Attorney for his support in this case.”
This case was investigated by NSF’s Office of Inspector General. Assistant U.S. Attorney Adam B. Townshend represented the United States.
KTM Industries, Inc. Resolves False Claims Act Allegations Involving National Science Foundation AwardRead the Press Release
GRAND RAPIDS, MICHIGAN – KTM Industries, Inc. (“KTM”), a Lansing-based company that develops and manufactures biodegradable engineered foam, has agreed to pay $170,923.65 to the federal government to resolve allegations that it fraudulently obtained funding under a National Science Foundation (“NSF”) award in violation of the federal False Claims Act. As part of the settlement, KTM’s CEO agreed to pay an additional $25,000 and submit to a three-year exclusion from participation in federal programs, grants, and contracts. The government previously received $54,076.35 from Michigan State University (“MSU”) in a related investigation into whether, under a subcontract with KTM, MSU spent NSF award funds on unallowable equipment. KTM, KTM’s CEO, and MSU did not admit liability as part of their respective settlements.
In September 2010, NSF awarded KTM Phase II funding under a Small Business Technology Transfer (“STTR”) grant to support the development of chemically-modified plastic starch bio-foams. The United States alleged that to obtain and maintain this funding, KTM and its CEO knowingly made a number of false statements and supplied NSF and NSF contractors with false documents. These false statements and false documents concerned, among other things, KTM’s accounting system and timekeeping records, the actual expenditure of NSF award funds, and the primary employment and payment of the principal investigator on the NSF project. The United States further alleged that during the investigation of this case, KTM produced 24 false and fraudulent employee timesheets in response to an administrative subpoena, the creation of which timesheets was directed by the company’s CEO.
“Those who seek federal funding must be truthful and accurate in their dealings with government agencies,” said U.S. Attorney Patrick Miles. “Companies and individuals that make misrepresentations to obtain such funding undermine the integrity of the grant process and unfairly divert funds from qualified grantees who will play by the rules.”
Allison Lerner, NSF’s Inspector General said, “STTR funding is a valuable tool for small businesses to develop innovative technologies. Unscrupulous individuals and companies who lie to fraudulently obtain these funds will not be tolerated. I commend the U.S. Attorney for his support in this case.”
This case was investigated by NSF’s Office of Inspector General. Assistant U.S. Attorney Adam B. Townshend represented the United States.
KC Man Sentenced for Crack CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing crack cocaine to distribute.
James C. Allen, 52, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 10 years in federal prison without parole.
On Sept. 22, 2014, Allen pleaded guilty to possessing crack cocaine with the intent to distribute. Allen admitted that he was carrying 3.8 grams of crack cocaine in one of his boots, where it was packaged in over 30 separate plastic baggies for sale. Allen was arrested at a park located at 918 E. Ninth Street on July 30, 2013. At the time of his arrest, Allen also was in possession of an SCCY 9mm pistol.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and Huntsville City Schools Announce Proposed Consent Decree to Provide Equal Educational OpportunitiesRead the Press Release
The Department of Justice announced today that it has filed a proposed consent order in Hereford v. Huntsville Board of Education, a longstanding school desegregation case, to resolve issues related to school attendance zones, black students’ access to quality academic offerings and student discipline, among other areas. The department and counsel for the Huntsville City Schools in Alabama jointly filed the proposed consent order in district court in Birmingham, and are now seeking public comment prior to presentation of the proposed consent order to the Huntsville Board of Education and to the court for final approval.
The proposed agreement, if approved, would resolve the parties’ dispute over the district’s 2014 plan to reconfigure student attendance zones. The Justice Department had objected that the plan did not further desegregation or address racial inequalities in students’ access to quality academic offerings. If approved by the court, the proposed consent order would require the district to provide equal educational opportunities to black students by taking steps including:
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revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
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expanding access for black students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
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implementing measures to promote faculty and administrator diversity;
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ensuring that all students are aware of and can equally participate in extracurricular activities;
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creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory, and does not unnecessarily remove students from classrooms;
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establishing a desegregation advisory committee consisting of students and parents to advise the district and inform the court about implementation of the consent order;
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providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias, and supporting positive student behavior; and
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continuously monitoring racial disparities to ensure meaningful and sustained improvement in areas including student performance, students’ access to courses, and rates of student discipline.
“A quality education is the key that opens the door to a better future,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This agreement aims to ensure that African American students in Huntsville schools can access that quality education on an equal basis. We look forward to working with the district to implement the measures required by this proposed order, if approved, and eventually bring this case to successful resolution after so many years.”
“The Department of Justice is committed to ensuring that Alabama schools provide African American students, and all students, with the equal educational opportunities guaranteed under federal law,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama.
If the proposed consent order is approved, the Justice Department will monitor and enforce the district’s compliance. The district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
The proposed consent order can be found at www.proposedconsentorder.com, which also provides information regarding opportunities for public comment, including a series of community forums.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race and other factors in public schools, is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its web site at www.justice.gov/crt.
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Inmate Housed at Florence Correctional Complex Found Guilty of Threatening to Assault and Murder Correctional Officers and Their FamiliesRead the Press Release
DENVER – Following a three-day trial, a jury late last week found Theron Maxton, age 59, an incarcerated inmate, guilty of four counts of influencing a federal officer by threats to the officer and/or the officer’s family member, the U.S. Attorney’s Office and the FBI announced. The jury deliberated for approximately three two hours before handing down their guilty verdicts. The trial was held before U.S. District Court Judge Philip A. Brimmer, starting on January 20, 2015, and concluding on January 22, 2015. At the conclusion of each trial day, as well as at the conclusion of the trial, Maxton was remanded into custody.
Maxton was an inmate at the Florence Correctional Complex, in both the United States Penitentiary and the Federal Correctional Institution at the time he made the threats. He is scheduled to be sentenced by Judge Brimmer on May 1, 2015.
According to the Second Superseding Indictment, obtained on May 8, 2014, in November of 2012 the defendant allegedly threatened to assault or murder prison correctional officers, and in some cases, their families, in retaliation of the officers performing their official duties. The threats were made in letters, either to the correctional officer directly, or in one instance to a former now released cellmate. In that letter, Mr. Maxton attempted to persuade the former inmate to kill the Prison staff members and their families. In December of 2012, Maxton also said directly to an FBI special agent that if given the opportunity he would try to kill prison staff members.
For each count of influencing a federal official by threats to the officer and/or family member, the defendant faces not more than 10 years, and up to a $250,000 fine, per count, for each of the four counts.
This case was investigate by the Federal Bureau of Investigation.
The trial was handled by Assistant U.S. Attorneys David Tonini and Valeria Spencer.
Indiana Drilling Company COO Sentenced to 8 Years in Prison for Embezzling $9MRead the Press Release
PITTSBURGH – A resident of Indiana, Pa., was sentenced in federal court on Jan. 23, 2015, to 96 months imprisonment, three years supervised release and $10,206,425 in restitution on his conviction of conspiracy to commit mail fraud, forged checks and tax fraud, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Larry Dean Winckler, 53, of Indiana, Pa.
According to information presented to the court, the court was advised that between 2007 and 2012, Winckler, the Chief Operating Officer at Falcon Drilling Company in Indiana, Pa., conspired to embezzle nearly $9,020,687 from his employer by creating forged checks and fake company invoices. Winckler conspired to defraud Falcon through embezzlement of company funds by using forged checks, fake invoices to fictitious or real vendors, and false statements to auditors. In imposing sentence, Judge McVerry noted the seriousness of the crime, and enormity of the embezzlement over several years.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Winckler.
Illegal Alien Sentenced to Two Years' Imprisonment for Illegally Reentering the United States and Using Fraudulent Identificaion DocumentsRead the Press Release
Contact: Steve Young
An alien who illegally reentered the United States after being deported and used fraudulent document to obtain employment was sentenced today to two years in federal prison.
Jaime Rodriguez-Andres, also known as Alejandro Govea-Salvador, age 41, a Mexican citizen living in Waterloo, Iowa, received the prison term after an October 10, 2014, guilty plea to one count of illegal reentry into the United States by an aggravated felon, one count of unlawful use of identification documents, and one count of making a false claim to United States citizenship.
At the guilty plea, Rodriguez-Andres admitted he re-entered the United States without permission after being removed from the country on October 6, 2005. Rodriguez-Andres was convicted on April 6, 2009, in Black Hawk County, Iowa, on forgery and identity theft charges, aggravated felonies, and removed from the United States a second time on September 16, 2009. Rodriguez-Andres also admitted that he used a Social Security card in someone else’s name in completing an employment verification form to obtain a job in Waterloo. He also falsely claimed to be a United States citizen on that employment form when he applied for work. Immigration officials became aware of Rodriguez-Andres illegal return to the United States in July 2014 after Rodriguez-Andres was arrested in Waterloo, Iowa, for assault domestic abuse causing bodily injury.
Rodriguez-Andres was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 24 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez-Andres is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2034.
Illegal Alien Sentenced for Firearms OffenseRead the Press Release
McALLEN, Texas – Emilio Padilla, 24, of Taumalipas, Mexico, two counts of being an illegal alien in possession of a firearm, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in McAllen convicted Padilla on Oct. 24, 2014, following a two-day trial and less than an hour of deliberation.
Today, Senior U.S. District Judge Randy Crane, who presided over the trial, handed Padilla a sentence of 21 months in federal prison. At the hearing, the defense contended that Padilla had possessed the firearms to protect his family. As an illegal alien, Padilla is expected to face deportation proceedings following his release from prison.
During trial, the jury heard the testimony of several law enforcement officers who stated they had met with Padilla at his residence in Alamo on April 29, 2014. At that time, he admitted to having several firearms, including two Glock 9mm pistols. Padilla was in the United States illegally and not permitted to possess firearms.
Agents conducted a search of the residence and discovered the weapons, which were manufactured in Austria and had traveled in interstate and foreign commerce.
Padilla’s brother, Mariano Padilla, pled guilty to the same offense on June 6, 2014, and was sentenced to 18 months in federal prison by Judge Randy Crane on Oct. 22, 2014.
Padilla will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the San Juan Police Department. Assistant U.S. Attorneys Leo J. Leo III and David A. Lindenmuth prosecuted the case.
Huntington man sentenced on heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Mark R. Tabb, 46, of Huntington, West Virginia, was sentenced to 30 months in federal prison.
Tabb pleaded guilty to possession with intent to distribute heroin in October 2014. During a search of his home in the 500 block of 4th Avenue on Aug. 12, 2012, Tabb was found to be in possession of more than 10 grams of heroin, which he intended to sell.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The case was investigated by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Greg McVey was in charge of the prosecution.
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Huntington man pleads guilty to oxymorphone chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Eric Lawrence Silverstein, 39, of Huntington, West Virginia, pleaded guilty to distribution of oxymorphone.
Silverstein admitted that he made multiple sales of oxymorphone to a confidential informant.
On July 25, 2014, the informant arranged a controlled buy of 10 40-mg oxymorphone pills through Silverstein. Silverstein drove the informant to the 1400 block of 4th Avenue in Huntington, where a third individual entered the vehicle and sold the informant the pills for $600.
On July 28, 2014, the same informant arranged a similar purchase through Silverstein. The informant purchased eight 40-mg oxymorphone pills for $480.
Silverstein faces up to 20 years in federal prison and a $1 million fine. He is scheduled to be sentenced on April 27, 2015.
Chief United States District Judge Robert C. Chambers presided over the hearing.
The case is being investigated by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Greg McVey is in charge of the prosecution.
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Houston Man Convicted of Using Counterfeit Cards in Nearly 400 Transactions at Sam’s ClubRead the Press Release
HOUSTON – Guang Fa Lin, 47, has entered a guilty plea to one count of using counterfeit access devices, announced United States Attorney Kenneth Magidson. Lin resided in Houston but has no legal status in the U.S.
During his plea hearing today, Lin admitted that between 2012 and 2013, he used counterfeit credit cards, debit cards and credit and debit account numbers to obtain goods, services and other things of value.
According to the factual basis in the plea agreement filed in the case, Lin used scores of credit and debit cards in approximately 395 transactions under various Sam’s Club Memberships bearing different identifying information to purchase items such as cigarettes, iPads, gum and gift cards.
The counterfeit cards bore account numbers banks and other financial institutions issued to account holders, many of whom reside outside of Texas. As a result, Lin caused more than $200,000 in losses.
The plea agreement requires Lin to make full restitution.
U.S. District Court Judge Sim Lake, who accepted the guilty plea, has set sentencing for April 17, 2015. At that time, Lin faces up to 10 years in prison and a $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation by U.S. Secret Service. Assistant U.S. Attorney Stephen L. Corso is prosecuting the case.
Houston Man Charged with False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that RACE ADDINGTON, 49, of Houston, Texas, was charged today in a two-count Bill of Information with making false statements to agencies or departments of the United States in relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal 225 located on a federal mineral lease in the Gulf of Mexico.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer pressure chart that recorded the testing of the blowout preventer testing done on November 27, only recorded 6 of the 7 required components as being tested and was not signed nor dated by any representative on the platform.
On or about November 28, 2012, ADDINGTON, as the well site supervisor for the platform saw the results of the blowout preventer testing and had workers create a false blowout preventer test. The next day when Bureau of Safety and Environmental Enforcement (BSEE) inspectors conducted a routine inspection of the platform, ADDINGTON presented the fabricated blowout preventer pressure test chart to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system.
On December 6, 2012, during an investigation of the veracity of the blowout preventer test by the Department of Interior’s Investigation and Review Unit, ADDINGTON lied and told investigators the false chart he provided inspectors was a test of the chart recorder and that the inspectors mistakenly retrieved the wrong pressure chart from the files when in truth and in fact he knew that he had the blowout preventer pressure test chart fabricated and personally presented the chart to inspectors as the actual test record for the platform’s blowout preventer system.
If convicted, ADDINGTON faces a maximum term of imprisonment of 5 years per count and/or a maximum fine of $250,000 per count.
The U.S. Attorney’s Office praised the work of the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit is in charge of this prosecution.
Four Members of Virtual Kidnapping Ring SentencedRead the Press Release
SAN DIEGO - Four members of an extortion ring were sentenced in federal court today for collectively duping 124 Latino families across the United States, in some cases falsely claiming a family member had been kidnapped and forcing them to pay almost $190,000 in ransom for kidnappings that never took place.
The defendants – Ruth Graciela Raygoza, Maria Del Carmen Pulido Contreras, Adrian Jovan Rocha and Jonathan Rocha – were sentenced by U.S. District Judge Jeffrey T. Miller to 40, 21, 21 and 14.5 months in prison, respectively. They pleaded guilty in July of 2014 to conspiracy to commit wire fraud and conspiracy to launder money.
According to the plea agreements and other court documents, the ring targeted victims from Mexico and Central America that spoke primarily Spanish and were not United States citizens. As part of the scheme, co-conspirators of the foursome called numerous families in the United States and falsely represented that they were holding a loved one captive, and demanded money for his or her safe release. The extortion victims were usually instructed to send thousands of dollars through either MoneyGram or Western Union. Defendants would then pick up the money in Southern California. After picking up the money, defendants re-wired or delivered the money to other conspirators in Mexico. The money was divided among defendants and co-conspirators in Mexico to fund and promote the scheme.
“This has been by far the worse experience of my life,” one victim wrote in a statement to the court. “I could not sleep for days because I was waiting for their phone call to give instructions since they told me that they would kill my niece if I did not send the money requested. I got sick as a result of not sleeping, not eating well and the stress that I was subjected to and feeling so powerless.”
U.S. Attorney Laura Duffy said, “This was a cruel hoax that caused significant emotional and financial damage to a large number of people. These sentences are appropriate for defendants who preyed on a vulnerable population with no regard for their suffering.”
“Homeland Security Investigations is committed to dismantling criminal rings that seek to exploit vulnerable victims through their daunting scams,” said interim Special Agent in Charge Joe Garcia. “These unscrupulous criminal networks are motivated by extreme greed and will go to extreme measures to gain illicit proceeds.”
DEFENDANTS Case Number: 13CR3984-JM Ruth Graciela Raygoza Age: 64 Chula Vista, California Maria Del Carmen Pulido Contreras Age: 43 Los Angeles, California Adrian Jovan Rocha Age: 27 Tijuana, Mexico Jonathan Rocha Age: 24 Tijuana, Mexico CHARGESTitle 18, United States Code, Section 1349 - Conspiracy to Commit Wire Fraud
INVESTIGATING AGENCIES
Title 18, United States Code, Section 1956 - Conspiracy to Launder Money (international promotion)U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Fort Washington Man Exiled to Three Years in Prison for Illegal Possession of A Firearm and for Theft of Government PropertyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Lawrence Kutrelle White, age 29, of Ft. Washington, Maryland, today to three years in prison followed by three years of supervised release for being a felon in possession of a firearm and for theft of government property.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to his plea agreement, on October 29, 2013, White, along with unknown co-conspirators, broke into three vehicles owned and operated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), causing approximately $1,180.70 in damages to the ATF vehicles. White and his co-conspirators stole tactical vests, portable radios, a taser, night vision goggles, ammunition, rifle and pistol magazines loaded with ammunition, and other items belonging to ATF, worth at least $30,503.87.
In addition, White and the unknown co-conspirators stole approximately $650 worth of personal property belonging to ATF Special Agents.
On October 29, 2013, some of the property stolen from the ATF vehicles was found at a park in Bowie, Maryland.
On November 29, 2013, White, on a recorded jail call, directed another individual to retrieve a .40 caliber pistol belonging to White from a residence. White had at least three prior felony theft convictions, which made him ineligible to possess a firearm and ammunition.
On January 6, 2014, members of law enforcement executed a search warrant at a home in Bowie and recovered some of the property stolen from the ATF vehicles. The value of the stolen property that was recovered from the park and the home was approximately $19,772.33.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Nicolas A. Mitchell, who prosecuted the case.
Fort Pierce Tax Preparer Sentenced to Jail for Preparing False Tax Returns and Identity TheftRead the Press Release
Fort Pierce tax preparer was sentenced today to 81 months, to be followed by three years of supervised release, for preparing tax returns that included fraudulent information. As part of his sentence, the court ordered Maurival to pay $349,992.00, in restitution to the IRS.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
On November 17, 2014, Rony Maurival, 39, pled guilty to four counts related to his filing of false tax returns, one count of theft of government funds, and one count of aggravated identity theft.
According to the indictment and details discussed in open court, from July 2008 to March 2012, Maurival owned and operated “RJ’s Tax & Services,” a tax return preparation business located in Fort Pierce, Florida. Maurival admitted to adding false wage and income information to his client’s tax returns in order to illegally maximize the earned income tax credit (EITC) claimed on their tax returns. The EITC is a refundable tax credit designed to assist low to moderate income taxpayers. Maurival admitted that his actions resulted in a tax loss to the IRS of between $1 million and $2.5 million.
Maurival also admitted to filing his own false tax returns for years 2009 and 2010. Specifically, Maurival admitted to not reporting more than $250,000 in tax preparation fee income earned through his business in those years. Maurival further admitted to using stolen identity information to file false tax returns with the IRS in order to steal money from the United States. In doing so, he would direct the false tax refunds to bank accounts that he controlled.
Mr. Ferrer commended the investigative efforts of the IRS-CI. This case was prosecuted by Assistant United States Attorney Russell R. Killinger and Department of Justice Tax Division Trial Attorney Charles M. Edgar, Jr.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Teacher Sentenced to 210 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton. Jr. today sentenced Matthew C. Graziotti (43, Edgewater) to 210 years in federal prison for producing, distributing, and possessing child pornography. The Court also ordered him to serve a lifetime of supervision following his release from prison and to forfeit the electronic devices that he had used to commit the crimes. Graziotti pleaded guilty on October 30, 2014.
According to court documents, Graziotti distributed 141 images and 6 videos depicting the sexual abuse and exploitation of children to an undercover FBI agent. During the execution of a search warrant, agents located thousands of child pornography images on Graziotti’s computer involving children under the age of 12. One computer folder, named “personally known,” contained sexually explicit photographs and videos of 29 children that Graziotti had sexually abused when they were under the age of 12. Graziotti stored the sexually explicit images that he produced in subfolders bearing each child’s name. He produced these images from 2010 through 2014. During this period, Graziotti taught elementary school in South Daytona and was the director of the school’s summer day camp program. He also coached youth sports.
“Together with our law enforcement partners, the FBI will remain vigilant to ensure our children are protected,” stated Michelle S. Klimt, Special Agent in Charge, FBI – Jacksonville Division. “Let this sentence be a clear message to others involved in this horrendous crime that exploits the most innocent among us. The FBI is committed to locating and removing sexual predators from kids’ lives through the U.S. justice system.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case 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.
Former North Carolina House of Representative Pleads Guilty to Theft from A Non-ProfitRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, of Kinston, North Carolina, pleaded guilty to the theft of $150,000 from a federally-funded nonprofit organization in violation of Title 18, United States Code, Section 666. LAROQUE also agreed to pay $300,000.00 in full restitution to East Carolina Development Company (“ECDC”), which is a nonprofit organization based in Kinston, North Carolina. ECDC was originally created to provide loans to small rural businesses using federal funds provided to ECDC by the United States Department of Agriculture under the Rural Development Division’s Intermediary Relending Program.
On April 17, 2013, a 12-Count Second Superseding Indictment was returned charging LAROQUE, among other things, with the theft of $300,000 from ECDC. According to the Indictment, LAROQUE accomplished the $300,000 theft through four disbursements made by ECDC under the guise of loans to LAROQUE’s wholly-owned company. A review of bank records established that such funds were funneled through LAROQUE’s wholly owned company and then used for his personal benefit, including his investment in an ice skating rink in Greenville and to help fund his purchase of rental property in Kinston.
On June 7, 2013, after a three-week trail, a jury found LAROQUE guilty on each of the twelve counts. Later, the court granted a new trial based on an issue regarding a juror’s internet research during deliberations.
At sentencing scheduled for the court’s May 12, 2015 term in Greenville, LAROQUE faces a maximum of 10 years imprisonment followed by up to 3 years of supervised release.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, and the Federal Bureau of Investigation. Assistant United States Attorneys, Dennis M. Duffy and Adam F. Hulbig prosecuted the case.
Former CIA Officer Convicted for Unauthorized Disclosure of National Defense Information and Obstruction of JusticeRead the Press Release
A former CIA officer was convicted today by a federal jury in Alexandria, Virginia, of illegally disclosing national defense information and obstructing justice.
Attorney General Eric Holder, FBI Director James B. Comey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement.
“This is a just and appropriate outcome,” said Attorney General Holder. “The defendant’s unauthorized disclosures of classified information compromised operations undertaken in defense of America’s national security. The disclosures placed lives at risk. And they constituted an egregious breach of the public trust by someone who had sworn to uphold it. As this verdict proves, it is possible to fully prosecute unauthorized disclosures that inflict harm upon our national security without interfering with journalists' ability to do their jobs. And I want to thank the investigators, prosecutors and support staff who made this outcome possible for their relentless efforts in advancing a complex case that spanned multiple years.”
“He violated his sworn duty to protect our nation's secrets and he betrayed our country,” said Director Comey. “The FBI will continue to pursue these cases vigorously.”
“Jeffrey Sterling was trusted with the nation's most sensitive secrets and chose to expose them - putting our national security at risk, and endangering lives in the process,” said Assistant Attorney General Caldwell. “These cases are challenging, but vitally important to our efforts to secure critical intelligence on behalf of the American people.”
“Over 10 years ago a disgruntled former CIA employee disclosed extremely sensitive classified information to a journalist,” said U.S. Attorney Boente. “That classified information was critical to our national defense, and releasing it was illegal and went against Mr. Sterling's professional commitments to the CIA. Mr. Sterling's vindictive and careless choices ultimately led us here today and to this unanimous verdict. I would like to thank the trial team and our partners at the FBI's Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
Jeffrey Alexander Sterling, 47, of O’Fallon, Missouri, was convicted today in the Eastern District of Virginia of six counts of unauthorized disclosure of national defense information, and one count each of unlawful retention of national defense information, unauthorized conveyance of government property and obstruction of justice. Sterling was indicted on Dec. 22, 2010, and arrested on Jan. 6, 2011. Sentencing is scheduled for April 24, 2015.
According to evidence presented at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006, when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington, D.C., Field Office, with assistance in the arrest from the FBI’s St. Louis Field Office. This case was prosecuted by Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel James L. Trump and Assistant U.S. Attorney Dennis Fitzpatrick of the Eastern District of Virginia.
Floyd County Ambulance Services Company to Pay U.S. Government $948,000 to Settle False Claims Act ViolationsRead the Press Release
LEXINGTON, KY -An ambulance services company in Floyd County agreed to pay the U.S. Government $948,000 to settle civil allegations that it billed federal health care programs for medically unnecessary services over the course of several years.
According to the settlement agreement, from February 1, 2006 until December 31, 2012, Lafferty Enterprises, LLC, doing business as Trans-Star Ambulance Services, transported Medicare patients to and from dialysis clinics by ambulance when an ambulance transport was not medically necessary. The government contends that Trans-Star violated the False Claims Act by billing Medicare for routine, non-emergency ambulance transports provided to patients who were able to safely travel to and from the dialysis clinics by other means. Medicare covers non-emergency ambulance transports only when all other forms of patient transportation are considered a medical risk.
“It is vitally important that the resources available to federally funded healthcare programs be used only to pay for medically necessary services,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “Our office and our agency partners are committed to protecting the integrity of these important programs on which so many of our citizens depend.”
In addition to the payment of the settlement amount, Trans-Star has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG), which obligates Trans-Star to undertake substantial internal compliance reforms and to commit to a third-party review of its claims to federal health care programs for the next three years.
The settlement was based on the penalties associated with the alleged violations and Trans-Star’s financial ability to pay.
The investigation and settlement stem from a complaint filed by a former owner of another ambulance company in eastern Kentucky, pursuant to the whistleblower provisions of the False Claims Act, which permit private individuals to bring a lawsuit on behalf of the United States. The whistleblower, Kevin Fairlie, will receive $189,600.
The investigation was conducted by the Department of Health and Human Services, Office of the Inspector General; the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit (“MFCU”) and the U.S. Attorney’s Office.
Florida Lobster Divers Convicted for Illegal Harvesting ActivitiesRead the Press Release
Three Florida lobster divers pled guilty for illegal harvesting activities. Additionally, a Florida corporation pled guilty for their illegal activity related to the illegal harvesting activities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, Sean Morton, Superintendent of the Florida Keys National Marine Sanctuary (FKNMS), and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, made the announcement.
Charles Veach, 39, of Coppitt Key, Florida, Ryan Veach, 41, formerly of Bay Point, Florida, and Tyson Veach, 36, of Stock Island, Florida, pled guilty to the offense of knowingly transporting, selling, receiving acquiring, and purchasing lobster, when in the exercise of due care they should have known the lobster was taken, possessed, transported, and intended to be sold in violation of the laws and regulations of the State of Florida. Additionally, Super Grouper, Inc., a Florida corporation with its principal place of business in Key West, Florida, pled guilty to knowingly engaging and attempting to engage in conduct that involved the sale and purchase of, offer of sale and purchase of, and intent to sell and purchase spiny lobster, with a market value in excess of $350.00, and did knowingly transport, sell, acquire and purchase said spiny lobster in interstate commerce, knowing that said spiny lobster was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws and regulations of the State of Florida, specifically, Florida Administrative Code, Sections 68B-24.006(10).
According to the Indictment filed against the defendants, a Joint Factual Statement submitted to the Court, and statements in Court, at all relevant times Charles Veach was the president and director of Super Grouper, Inc. The corporation was the registered owner of a 32’ Invincible, center-console fishing vessel, the “Super Grouper.”
In August 2006, on the eve of the opening of commercial lobstering season in Monroe County, U.S. Fish & Wildlife Service agents placed a Global Positioning System (GPS) tracker on the fishing vessel “Super Grouper.” The GPS device permitted enforcement officers to identify sites in the Gulf of Mexico where the vessel operated by C. Veach and R. Veach had lingered for significant periods of time over the following week in the FKNMS.
On August 10, 2009, C. Veach and R. Veach operated the vessel “Super Grouper” in the course of spiny lobster harvesting activities in the FKNMS. During that voyage, surveillance aircraft operated by the Florida Fish & Wildlife Conservation Commission (FWCC), observed and videotaped them diving within the FKNMS. Special Agents of NOAA Office of Law Enforcement videotaped the return of the “Super Grouper” to the residence of C. Veach on Big Coppitt Key. The agents also videotaped five bins and one bag of spiny lobster being unloaded from the vessel, which C. Veach sold to a wholesale dealer in Key West according to trip tickets and receipts filed with the FWCC, as required by law, and retained by the dealer.
The August 10, 2009 sites, identified by the GPS tracker and surveillance, were later surveyed by the U.S. Fish & Wildlife Service Region 4 Dive Team. Artificial habitat, also known as “casitas,” were located at each site. Additionally, thorough search of the areas surrounding the sites revealed no natural habitat suitable for sheltering spiny lobster.
On August 19, 2014, NOAA Special Agents observed and photographed C. Veach and T. Veach departing Hurricane Hole Marina, Stock Island, on the “Super Grouper” and enter the FKNMS waters in the Gulf of Mexico. During that trip, Customs and Border Protection air assets observed, videotaped, and documented multiple locations at which T. Veach engaged in diving activities within the FKNMS. On their return, NOAA Special Agents photographed the landing of spiny lobster at a Stock Island commercial wholesale dealer. T. Veach was identified as one of the two occupants of the “Super Grouper” participating in the landing and subsequent sale of spiny lobster to the wholesale dealer.
On August 15, 2014, the vessel “Super Grouper” was observed in the FKNMS by Customs and Border Protection air assets who again videotaped multiple locations at which an individual deployed from the “Super Grouper” engaged in diving activities. Surveillance videos reflect the harvesting and presence in multiple locations on board the “Super Grouper” of spiny lobster. At the conclusion of the trip NOAA Special Agents witnessed the landing and sale of spiny lobster to a Stock Island commercial wholesale dealer. The occupants of the vessel included C. Veach. The spiny lobster harvested by the “Super Grouper” were sold in two transactions, to a wholesale dealer on Stock Island and a wholesale dealer in Key West for a total exceeding $3,000.
The FKNMS is a 2,800 square nautical mile area that surrounds the entire archipelago of the Florida Keys and includes the productive waters of Florida Bay, the Gulf of Mexico, and the Atlantic Ocean. The FKNMS encompasses coastal and oceanic waters, and the submerged lands thereunder, surrounding the Florida Keys, and extending westward to include the Tortugas islands, but excluding Dry Tortugas National Park.
Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, NOAA issued regulations in January 1997 to govern the conduct of activities within the sanctuary. Title 15, CFR Subsection 922.163(a)(3) prohibits any alteration of, or construction on, the seabed. Drilling into, dredging, or otherwise altering the seabed of the Sanctuary, or engaging in prop-dredging; or constructing, placing, or abandoning any structure, material, or other matter on the seabed of the Sanctuary is prohibited.
Pursuant to an agreement reached with the United States, the defendants agreed to jointly recommend a term of six months imprisonment, a $25,000 fine, and a one year term of supervised release, during which they will be barred from any involvement in lobster harvesting. Additionally, the defendants surrendered a list of all their illegal harvesting sites to the government, and are committed to removing all the sites at their own expense from federal and State waters under agent supervision. The defendants also agreed to forfeiture of the 2008 32” Invincible fishing vessel used in the offense, and its engines, tackle, and appurtenances as instrumentalities of the crimes, and surrender of their various crustacean and dive endorsements issued by the State of Florida.
C. Veach, R. Veach and T. Veach each face possible terms of imprisonment of up to one year. Additionally, they may be fined up to $100,000, ordered to make restitution to identifiable victims of the offenses, and be placed on supervised release for up to one year. The defendants are scheduled to be sentenced on May 5, 2015 at 2:00 p.m. at the Key West Sidney M. Aronovitz Federal Courthouse by U.S. District Judge James Lawrence King.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of NOAA Office of Law Enforcement, and the U.S. Fish & Wildlife Service Office of Law Enforcement who led the long-term investigation into the illegal harvesting and sale of spiny lobster. Mr. Ferrer also thanked Customs and Border Protection, the Florida Fish & Wildlife Conservation Commission and the U. S. Fish & Wildlife Service Region 4 Dive Team for their investigative efforts. This case is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonio Barnes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ex-Employee of Southern Illinois University Charged with LyingRead the Press Release
Alleged to Have Lied to Federal Agents About Providing False Information to SIU
Follow @SDILNewsKwa Mister, 38, Fairview Heights, Illinois, was charged by Indictment with two counts of Making A False Statement to the United States Department of Transportation, Office of Inspector General and the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. United States Attorney Wigginton noted, “There is no right to lie to federal agents conducting an investigation.” If convicted, Mister faces up to ten years in prison, a $250,000 fine and up to three years supervised release.
According to the Indictment, the Illinois Department of Transportation entered into an intergovernmental agreement with Southern Illinois University at Edwardsville (SIUE) to be the fiscal agent for the Highway Construction Preparatory Training Program. The indictment charges that Mister was the Director/Project Manager at the Small Business Development Center at SIUE and served as the project manager for the Highway Construction Preparatory Training Program. The indictment alleges that an investigation and an audit revealed that Mister obtained five contracts between SIUE and Phoenix Support Services for Phoenix Support Services to purportedly serve as an independent consultant to assist with the training program. The indictment further alleges that from March 2010 through January 2011, an audit discovered five (5) Purchase Orders, five (5) Contracts, and at least four (4) Justification for Sole Source Purchase or Contract forms concerning the procurement of services from "L. A. S" [name removed]., Director, d/b/a Phoenix Support Services. The indictment further alleges that the procurement of these contracts with Phoenix Support Services was initiated by the Program Manager for the Highway Construction Preparatory Training Program, Mister. Mister procured the services of his mother, L. A. S., for sole source contracts and concealed the family relationship and the potential conflict of interest from SIUE. The indictment alleges that when the propriety of the contracts with Phoenix Support Services was under investigation by SIUE, Mister lied to SIUE as to whether the owner of Phoenix Support Services was his mother. Mister is charged with lying to federal agents concerning whether he provided false information to SIUE.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The indictment is the result of an investigation conducted by the United States Department of Transportation, Office of Inspector General, the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations and the Federal Bureau of Investigation with the assistance of Southern Illinois University and the Office of Executive Inspector General for the Agencies of the Illinois Governor. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
Distributor for Atlantic City 'Dirty Block' Gang Sentenced to 10 Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 120 months in prison for engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Aree Toulson, a/k/a “Beyah,” a/k/a “Beyeazz,” 26, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Toulson acted as a distributor on behalf of Mykal Derry, 34, of Atlantic City, helping Dirty Block distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court in Atlantic City.
Toulson was arrested on March 26, 2013. He and others travelled with Mykal Derry to a shooting range in Lakewood, New Jersey, on Oct. 18, 2012, where Toulson – a previously convicted felon – used, possessed, and discharged a firearm. According to filed documents, members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
In addition to the prison term, Judge Irenas sentenced Toulson to serve eight years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
The charges and allegations against Derry are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Paul George Esq., Philadelphia
Detroit man sentenced on firearm chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Demarco R. Bradberry, 37, of Detroit, pleaded guilty to being a felon in possession of a firearm, and was subsequently sentenced to 66 months in federal prison.
After responding to a call at a Red Roof Inn on U.S. Route 60 in Huntington, deputies with the Cabell County Sheriff’s Department approached Bradberry as he exited a room. A search of the room uncovered a Smith and Wesson .38-caliber revolver.
Bradberry had been prohibited from possessing any firearm due to four prior convictions in Detroit. They include drug convictions in April and November 1995, and weapons violations in December 2001 and May 2008.
Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was investigated by the Cabell County Sheriff’s Department, with assistance from the Federal Bureau of Investigation. Assistant United States Attorney Joe Adams was in charge of the prosecution.
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Conspirators in Gulf Oil-Spill Fund Fraud SentencedRead the Press Release
BIRMINGHAM -- A federal judge today sentenced three south Alabama family members to prison for running a scheme to steal more than $3 million from the claims fund established by British Petroleum for victims of the 2010 Deepwater Horizon oil spill, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The FBI investigated this case. Assistant U.S. Attorneys Henry Cornelius, Jacquelyn M. Hutzell and Xavier O. Carter are prosecuting the case.
U.S. District Judge Sharon Lovelace Blackburn sentenced MARCELLA TRUSS, 53, to 12 years and one month in prison. The judge also ordered Truss to pay $1.9 million in restitution and to forfeit that same amount as proceeds of illegal activity. Judge Blackburn sentenced Truss' husband, MARTEE DAVIS, 42, to 13 years and three months in prison. The judge ordered Davis to be responsible for the same restitution and forfeiture as Truss. Judge Blackburn sentenced Truss' brother, HOWARD LENARD CARROWAY, 42, to 8 years in prison. Truss and Davis lived in Grand Bay, Ala., and Birmingham, and Carroway lived in Mobile during the course of the scheme.
The overall conspiracy involved the filing of more than 50 fraudulent claims, in the names of 37 people, over about 18 months with the Gulf Coast Claims Facility, according to the government's sentencing memoranda for the three defendants. The conspirators executed their scheme by wire, mail and in person in three states, spanning four jurisdictions, according to the government. The scheme involved the repetitive and coordinated use of emails, phones, and a variety of falsified documents, including tax and payroll records.
"Stealing money intended to help disaster victims recover is a serious and heartless crime, as today's sentences reflect," Vance said. "These defendants saw a disaster that blackened and fouled the Gulf of Mexico, spoiled much of its coastline and damaged or destroyed the livelihoods of thousands of people, and they chose to exploit the tragedy for their own criminal profit. We place a high priority on investigating and prosecuting such fraud to ensure that funds available to help victims of natural and man-made disasters do not fall into the hands of criminals," she said.
“Relief funds meant to assist individuals, businesses and communities are essential in order to restore normalcy after a disaster," Stanton said. "This process is hampered by those few, like today’s defendants, who wish to defraud and siphon relief and disaster funds away from those who are most at need. The FBI, along with its law enforcement partners, will continue to investigate and bring to justice those who defraud the government for their own personal gain,” he said.
A federal jury in October found Truss, Davis and Carroway guilty of conspiracy to commit wire and mail fraud between August 2010 and December 2011 for filing false claims with BP Gulf Coast fund. Evidence at trial showed the oil spill fund paid almost $2 million on the fraudulent claims. The jury also convicted the trio of aggravated identity theft in carrying out the scheme.
The jury further found Truss guilty on 31 counts of wire fraud for submitting, or causing to be submitted, false claims to the GCCF, and on one count of mail fraud related to a check received as part of the scheme. It convicted Davis on three wire fraud counts.
The jury convicted Truss and Davis of laundering money stolen from the GCCF. It found Carroway guilty on five wire fraud counts and on two counts of obstructing justice for telling recruits in the scheme to lie to prosecutors.
BP owned the Macondo Oil Well where the Deepwater Horizon drilling rig exploded in 2010. The company established the GCCF in June 2010 to administer and settle claims made against it by individuals or business for losses, damages or other costs resulting from the massive oil spill.
Truss, Davis and Carroway originally were charged along with two other people, Truss' son, Robert Truss III, 26, of Houston, and Cedric Dion Ravizee, 37, of Birmingham. Robert Truss pleaded guilty last year to conspiracy, money laundering, wire fraud and mail fraud, and Ravizee pleaded guilty to one count of wire fraud.
In total, 20 people have been convicted in the Northern District of Alabama on charges related to the scheme to defraud the GCCF. Marcella and Robert Truss, Davis and Carroway recruited the 16 other defendants to provide personal information that was used to file false claims. Those recruited then received claim payments and provided a portion of the payments to the ringleaders. The 17 remaining defendants in the fraud are to be sentenced this week.
All of the fraudulent claims submitted to the GCCF falsely stated that the individual had worked for a company called Built by Request and had lost wages because of the Deepwater Horizon incident. Marcella Truss owned BBR and dissolved the company after the scheme played out.Connecticut Man Pleads Guilty to Tobacco TraffickingRead the Press Release
BOSTON – A Connecticut man pleaded guilty in U.S. District Court in Springfield today in a conspiracy to traffic in contraband tobacco.
Jugjeev Kharbanda, 29, of Seymour, Conn. pleaded guilty to conspiracy and three counts of contraband smokeless tobacco trafficking. In October 2014, Kharbanda and two others were charged in an Information. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 25, 2015.
Kharbanda, two co-defendants, and others, worked together to avoid paying large amounts of tobacco excise taxes on smokeless tobacco and cigars sold from warehouses in Springfield, Mass. and Danbury, Conn. Co-defendant Jaspal Singh pleaded guilty in October 2014 and is scheduled to be sentenced on April 21, 2015.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Veronica M. Lei of Ortiz’s Springfield Branch Unit.
Columbus Man and Two Women Charged with Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced the unsealing of a 5 count Indictment charging Mauro Torres-Castro age 38, Alicia Martinez age 23, and Ashley O'Flaherty age 23, all of Columbus Nebraska, with various narcotics offenses including conspiracy to distribute methamphetamine. Torres-Castro and Martinez are also charged with possession of a firearm in connection with the narcotic offenses. The maximum possible penalty for the offenses includes not less than 10 years and up to life imprisonment, a fine of up to $10 million, a term of supervised release of at least 5 years, and a $100 special assessment. The charges stem from an investigation where law enforcement seized quantities of marijuana and cocaine, over 1 pound of methamphetamine, 3 handguns, 2 shotguns, and over $32,000 in U. S. Currency.This case was the result of an investigation by the Nebraska State Patrol, Columbus Police Department, Schuyler Police Department, and the Colfax County Sheriffs’ Office
Clarksburg woman convicted of selling heroin near local playgroundRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alicia Radel, 31, of Clarksburg, West Virginia, was convicted in federal court today for selling heroin near a local playground, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Radel sold heroin in September 2014 near the Clarksburg City Park – North Side Playground.
Radel pled guilty today to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location.” She faces between one and forty years in prison and a fine of up to $2,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan is prosecuting the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Chinese National Charged with Access Device Fraud and Aggravated Identity TheftRead the Press Release
Follow @SDILNewsShu K. Chen, 38, from the People’s Republic of China, was charged by Indictment with Conspiracy to Commit Wire Fraud, two counts of Access Device Fraud, and two counts of Aggravated Identity Theft, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Chen faces up to thirty years in prison for the conspiracy and access device fraud charges and a consecutive two year sentence for each of the Aggravated Identity Theft charges, plus a $250,000 fine, up to three years supervised release, and restitution.
Chen was originally arrested by the Collinsville Police Department on December 12, 2014, at the Walmart store in Collinsville, Illinois, for using counterfeit credit cards to fraudulently purchase gift cards. Further investigation revealed that he had also used counterfeit credit cards the day before at the same Walmart and that he was traveling around the area with another individual. Additional information provided to the court in a Criminal Complaint indicated that Chen, with the assistance of another individual, had used counterfeit credit cards to make purchases at retail locations in other jurisdictions. The credit cards were encoded on the magnetic strip with legitimate credit card account numbers of area residents who were victimized. Chen provided a false New Jersey driver’s license at the time of the arrest in the name of Chang Zhang, which was the name embossed on the front of the counterfeit credit cards.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The indictment is the result of an investigation conducted by the United States Secret Service, the Internal Revenue Service/Criminal Investigation and the Collinsville Police Department with the assistance of several other local police departments and the Madison County State’s Attorney’s Office.
The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
Broward County Resident Pleads Guilty in Identity Theft Schemes Involving Fraudulent Income Tax Refunds and Social Security BenefitsRead the Press Release
Broward County resident pled guilty in identity theft schemes involving fraudulent income tax refunds and Social Security benefits.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Sheldon Mozie, II, 23, pled guilty to one count of wire fraud and one count of aggravated identity theft.
According to court documents, law enforcement executed a search warrant at Mozie’s residence and seized papers/notes containing at least 182 victims’ personal identifying information (PII), a thumb drive containing at least 99 additional victims, Mozie’s computer, and debit cards. Computer forensic investigators determined that Mozie’s computer contained the PII of many of the same victims’ that were found in the notes/papers in Mozie’s bedroom, in addition to other victims’ PII. Mozie filed 49 federal income tax returns for tax year 2013 using the PII of many of the victims that were found on the papers/notes in his bedroom. Between February 10, 2014 and May 6, 2014, for the tax year 2013, Mozie claimed $208,559 on the fraudulent tax returns.
Mozie also utilized the stolen PII to divert Social Security benefit payments to himself that belonged to additional identity theft victims. To accomplish this scheme, Mozie logged onto the Social Security Administration website, “my Social Security,” with the victims’ names, dates of birth and Social Security numbers to open online accounts in those victims’ identities. Once the online accounts were opened, Mozie was able to divert the Social Security benefit payments from the victims to himself by having the funds deposited onto prepaid debit cards (mostly Green Dot cards) or by directly depositing the funds into his personal bank account. Between September 2013 and May 2014, Mozie diverted approximately $25,027 in Social Security benefits to himself.
Sentencing is scheduled for April 6, 2015, at 1:15 p.m. At sentencing, Mozie faces up to twenty years in prison for the wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, SSA-OIG, and BSO. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Felon Who Acquired Handguns in Vermont Gets Five YearsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Devon Holmes, a 26 year-old New York City man, was sentenced today to five years imprisonment by Judge William K. Sessions III in federal district court in Burlington. Holmes pleaded guilty to causing a young local woman to buy two handguns for him from a South Burlington, Vermont, firearms dealer in 2013.
With three felony convictions in New York City, federal law barred Holmes from buying or possessing firearms. He circumvented that law by arranging for the female to buy them for him. A few days after acquiring the handguns in Vermont, Holmes had the firearms in Brooklyn, New York, when officers with the New York City Police Department made a routine traffic stop.
The Bureau of Alcohol, Tobacco, Firearms & Explosives traced the two handguns recovered from Holmes in Brooklyn to the purchase in Vermont. After ATF conducted multiple interviews and utilized other investigative techniques, a two-count indictment issued, charging Holmes with possessing the guns as a felon, and arranging the “straw purchase.” He pleaded guilty to the latter offense.
The United States Attorney’s Office thanked ATF and the New York City Police Department for their fine work. Holmes was represented by Assistant Federal Public Defender David McColgin. The United States was represented by Assistant United States Attorney Bill Darrow.
Bossier City Woman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City woman pleaded guilty to filing false tax returns.
Susan Santoro, 40, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of making or subscribing a false tax return. According to evidence presented at the guilty plea, Santoro, who was the general manager of Top Dollar Pawn in Bossier City from 2009 to 2011, embezzled more than $300,000 from the company. She embezzled the money by falsifying records, which were under her sole authority to review and reconcile. A review of her personal bank accounts revealed numerous large, unexplained cash deposits that far exceeded her income from Top Dollar Pawn. The IRS considers the money, which Santoro did not report on her tax returns, as income. This resulted in Santoro owing additional taxes in excess of $88,000.
Santoro faces up to three years in prison, three years supervised release, a $250,000 fine, and restitution. A sentencing date of May 11, 2015 was set.
The FBI and IRS conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Cytheria D. Jernigan are prosecuting the case.
Bismarck Man Sentenced for Bank RobberyRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on January 26, 2015, Sean Michael Nichols, 38, of Bismarck, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of bank robbery. Nichols pleaded guilty to the charge on September 23, 2014.
Judge Hovland sentenced Nichols to 12 years and seven months in federal prison, to be followed by three years of supervised release. Nichols was ordered to pay a $100 special assessment to the Crime Victim’s Fund and restitution to Dakota Community Bank.
On May 6, 2014, at approximately 11:30 a.m., Nichols entered Dakota Community Bank, 1727 State St., Bismarck, North Dakota and demanded money and left the bank with money. No weapon was possessed or used. Police were able to develop Nichols as a suspect based upon witness information who saw an individual pass through a yard in the area and informed law enforcement officials that the person got into a certain type of vehicle. Nichols was located and arrested later that day and was found to be in possession of a portion of the stolen money.
The case was investigated by the Bismarck Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney David Hagler prosecuted the case.
Attorney General, Manhattan U.S. Attorney, and FBI Announce Charges Against Russian Spy Ring in New York CityRead the Press Release
Evgeny Buryakov, a/k/a “Zhenya,” Worked Under “Non-Official Cover” as a Bank Employee in Manhattan
Eric Holder, the Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York, John S. Carlin, Assistant Attorney General for National Security, and Randall C. Coleman, the Assistant Director of the Federal Bureau of Investigation (“FBI”) for the Counterintelligence Division, announced charges today against EVGENY BURYAKOV, a/k/a “Zhenya,” IGOR SPORYSHEV, and VICTOR PODOBNYY in connection with BURYAKOV’s service as a covert intelligence agent on behalf of the Russian Federation (“Russia”) in New York City, without notifying the United States Attorney General of BURYAKOV’s status as an agent of Russia, as required by federal law. BURYAKOV was placed under arrest earlier today in Bronx, New York, and is scheduled to appear before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court later today. SPORYSHEV and PODOBNYY no longer reside in the United States and have not been arrested. By virtue of their prior positions in the United States on behalf of Russia, both of them were protected by diplomatic immunity from arrest and prosecution while in the United States.
Attorney General Eric Holder said: “These charges demonstrate our firm commitment to combating attempts by covert agents to illegally gather intelligence and recruit spies within the United States. We will use every tool at our disposal to identify and hold accountable foreign agents operating inside this country – no matter how deep their cover. I want to thank the dedicated men and women of the FBI’s Counterintelligence Division and New York Field Office, the National Security Division’s Counterespionage Section, and the U.S. Attorney’s Office for the Southern District of New York for their skilled handling of this complex and highly sensitive matter.”
U.S. Attorney Preet Bharara said: “Following our previous prosecution with the FBI of Russian spies, who were expelled from the United States in 2010 when their plan to infiltrate upper levels of U.S. business and government was revealed, the arrest of Evgeny Buryakov and the charges against him and his co-defendants make clear that – more than two decades after the presumptive end of the Cold War – Russian spies continue to seek to operate in our midst under cover of secrecy. Indeed, the presence of a Russian banker in New York would in itself hardly draw attention today, which is why these alleged spies may have thought Buryakov would blend in. What they could not do without drawing the attention of the FBI was engage in espionage. New York City may be more hospitable to Russian businessmen than during the Cold War, but my Office and the FBI remain vigilant to the illegal intelligence-gathering activities of other nations.”
Assistant Attorney General John P. Carlin said: “The attempt by foreign nations to illegally gather economic and other intelligence information in the United States through covert agents is a direct threat to the national security of the United States, and it exemplifies why counterespionage is a top priority of the National Security Division. I want to thank the FBI’s New York Field Office and Counterintelligence Division as well as the U.S. Attorney’s Office for the Southern District of New York for their continued effort to conduct these highly complex and sensitive counterespionage investigations and prosecutions, and for their continued close partnership with the National Security Division and the Counterespionage Section.”
FBI Assistant Director Randall Coleman said: “This investigation is one of many that highlight the determined and prolific efforts by foreign governments to target Americans for the purposes of collecting intelligence and stealing secrets. This case is especially egregious as it demonstrates the actions of a foreign intelligence service to integrate a covert intelligence agent into American society under the cover of an employee in the financial sector. Espionage is as pervasivetoday as it has even been, and FBI counterintelligence teams will continue to aggressively investigate and expose hostile foreign intelligence activities conducted on U.S. soil.”
According to the Complaint unsealed in Manhattan federal court today:
BURYAKOV worked in the United States as an agent of Russia’s foreign intelligence agency, known as the “SVR.” BURYAKOV operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank. SVR agents operating under such non-official cover – sometimes referred to as “NOCs” – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the United States Attorney General. Department of Justice records indicate that BURYAKOV has never notified the United States Attorney General that he is, in fact, an agent of Russia.
SPORYSHEV and PODOBNYY are also SVR agents who worked in the United States to gather intelligence on behalf of Russia by posing as official representatives of Russia. From November 22, 2010, to November 21, 2014, SPORYSHEV served as a Trade Representative of the Russian Federation in New York. From December 13, 2012, to September 12, 2013, PODOBNYY served as an Attaché to the Permanent Mission of the Russian Federation to the United Nations. Based on their official government postings on behalf of Russia, SPORYSHEV and PODOBNYY are exempt from notifying the United States Attorney General of the true nature of their work. However, that exemption does not permit them to conspire with, or aid and abet, BURYAKOV in his work as an unregistered agent of Russia operating within the United States.
The intelligence-gathering efforts of SPORYSHEV and PODOBNYY included, among other things, (i) attempting to recruit New York City residents as intelligence sources for Russia; (ii) tasking BURYAKOV to gather intelligence; and (iii) transmitting intelligence reports prepared by BURYAKOV back to SVR headquarters in Moscow. Specifically, during the course of the charged offenses, SPORYSHEV was responsible for relaying assignments from the SVR to BURYAKOV, and SPORYSHEV and PODOBNYY were responsible for analyzing and reporting back to the SVR about the fruits of BURYAKOV’s intelligence-gathering efforts.
The directives from the SVR to BURYAKOV, SPORYSHEV, and PODOBNYY, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential United States sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, BURYAKOV, SPORYSHEV, and PODOBNYY regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of a bank in Manhattan (BURYAKOV), a Trade Representative of the Russian Federation in New York (SPORYSHEV), and an Attaché to the Permanent Mission of the Russian Federation to the United Nations (PODOBNYY). In particular, the defendants worked to safeguard BURYAKOV’s work as a “NOC.”
SPORYSHEV and PODOBNYY acted as covert intermediaries for BURYAKOV to communicate with the SVR on intelligence-related matters. As an agent posing as someone without any official ties to the Russian government or the SVR, BURYAKOV was unable to access the SVR New York Office – which is located within an office maintained by Russia in New York, New York – without potentially alerting others to his association with the SVR. As such, BURYAKOV required the assistance of other SVR agents, like SPORYSHEV and PODOBNYY, to exchange communications and information with the SVR through the communications systems located in the SVR New York Office.
From as early as March 2012 through as recently as mid-September 2014, the FBI has conducted physical or electronic surveillance of BURYAKOV and SPORYSHEV engaging in over four dozen brief meetings, several of which involved BURYAKOV passing a bag, magazine, or slip of paper to SPORYSHEV. These meetings typically took place outdoors, where the risk of effective surveillance was reduced relative to an indoor location.
These meetings were nearly always preceded by a short telephone call between BURYAKOV and SPORYSHEV during which one of the men typically told the other that he had an item to give to him. Typically, during these telephone calls, which were intercepted by the FBI, the item in question was referred to as some non-specific “ticket,” “book,” “list,” or other ordinary item (e.g., “umbrella” or “hat”).
Subsequently, at each meeting surveilled by the FBI, BURYAKOV and SPORYSHEV met and sometimes exchanged documents or other small items. Notably, despite discussing on approximately one dozen occasions the need to meet to transfer “tickets,” BURYAKOV and SPORYSHEV, were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert. In fact, BURYAKOV and SPORYSHEV used this coded language to signal that they needed to meet, and then met to exchange intelligence information.
Attempts by Sporyshev and Podobnyy to Recruit Intelligence Sources in New York City
In numerous recorded communications, SPORYSHEV and PODOBNYY discussed their attempts to recruit United States residents, including several individuals employed by major companies, and several young women with ties to a major university located in New York, New York (“University-1”), as intelligence sources for the SVR. On these recordings, the defendants discussed the potential value of these sources, and identified particular sources by use of a “source name,” which appears to be a coded name. In addition, during these recordings, SPORYSHEV and PODOBNYY discussed the efforts of other SVR agents to recruit a number of other Russian-origin individuals associated with University-1 as intelligence sources.
For example, SPORYSHEV and PODOBNYY discussed PODOBNYY’s efforts to recruit a male working as a consultant in New York City as an intelligence source. During this conversation, PODOBNYY explained his source recruitment method, which included cheating, promising favors, and then discarding the intelligence source once the relevant information was obtained by the SVR: “This is intelligence method to cheat. . . . You promise a favor for a favor. You get the documents from him and tell him to go [expletive] himself.”
In other recorded conversations, SPORYSHEV and PODOBNYY made clear that they worked for the SVR. For example, on January 31, 2013, SPORYSHEV and another SVR agent not charged in the Complaint (“CC-1”) had a discussion inside the SVR New York Office about their contracts with the SVR. SPORYSHEV stated that, “Everyone has a five-year contract,” and explained, in response to CC-1’s question about reimbursement for the travel of SVR agents’ family members, that “travel for military personnel and their families on authorized home leave is paid, and in our, in our SVR, this, the payment for getting to and from the duty station.” In addition, on April 25, 2013, SPORYSHEV and PODOBNYY discussed the use of nontraditional cover for Russian intelligence officers and, in particular, the Illegals program that ended with the arrest of 10 “deep cover” SVR agents in July 2010.
Buryakov’s Intelligence Taskings
SPORYSHEV was responsible for relaying intelligence assignments from the SVR to BURYAKOV. The FBI obtained electronic recordings of several conversations relating to such intelligence directives being communicated to and carried out by BURYAKOV in his position as an SVR agent acting under non-official cover. For example, on May 21, 2013, SPORYSHEV called BURYAKOV to ask for BURYAKOV’s help in formulating questions to be used for intelligence gathering purposes by others associated with a leading Russian state-owned news organization (the “News Organization”). BURYAKOV responded by supplying SPORYSHEV with a particular line of questioning about the New York Stock Exchange for use by the News Organization.
Buryakov’s Receipt of Purported Official United States Government Documents
In the summer of 2014, BURYAKOV met numerous times with a confidential source working for the FBI (“CS-1”). CS-1 posed as the representative of a wealthy investor looking to develop casinos in Russia. During the course of these meetings, and consistent with his interests as a Russian intelligence agent, BURYAKOV demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, BURYAKOV also accepted documents that CS-1 claimed he had obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about United States sanctions against Russia.
BURYAKOV, 39, SPORYSHEV, 40, and PODOBNYY, 27, are charged in two counts. The first count charges the defendants with participating in a conspiracy for BURYAKOV to act in the United States as an agent of a foreign government without first notifying the Attorney General, and carries a maximum penalty of five years in prison. The second count charges BURYAKOV with acting in the United States as an agent of a foreign government without first notifying the Attorney General, and charges SPORYSHEV and PODOBYNYY with aiding and abetting that offense. The second count carries a maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Bharara praised the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Assistant U.S. Attorneys Adam Fee, Ian McGinley, and Anna M. Skotko of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, and Senior Trial Attorney Heather Schmidt of the Counterespionage Section of the Department of Justice’s National Security Division.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v. Evgeny Buryakov, et al Complaint
Attorney General Holder Announces Charges Against Russian Spy Ring in New York CityRead the Press Release
Spy Ring Attempted to Collect Economic Intelligence and Recruit New York City Residents as Intelligence Sources
Evgeny Buryakov, aka “Zhenya,” Worked Under “Non-Official Cover” as a Bank Employee in Manhattan
Attorney General Eric Holder, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division announced charges today against Evgeny Buryakov, aka “Zhenya,” Igor Sporyshev and Victor Podobnyy in connection with Buryakov’s service as a covert intelligence agent on behalf of the Russian Federation (Russia) in New York City, without notifying the U.S. Attorney General of Buryakov’s status as an agent of Russia, as required by federal law. Buryakov was placed under arrest earlier today in Bronx, New York, and is scheduled to appear before U.S. Magistrate Judge Sarah Netburn in federal court in Manhattan later today. Sporyshev and Podobnyy no longer reside in the United States and have not been arrested. By virtue of their prior positions in the United States on behalf of Russia, both of them were protected by diplomatic immunity from arrest and prosecution while in the United States.
“These charges demonstrate our firm commitment to combating attempts by covert agents to illegally gather intelligence and recruit spies within the United States,” said Attorney General Holder. “We will use every tool at our disposal to identify and hold accountable foreign agents operating inside this country – no matter how deep their cover. I want to thank the dedicated men and women of the FBI’s Counterintelligence Division and New York Field Office, the National Security Division’s Counterespionage Section and the U.S. Attorney’s Office for the Southern District of New York for their skilled handling of this complex and highly sensitive matter.”
“The attempt by foreign nations to illegally gather economic and other intelligence information in the United States through covert agents is a direct threat to the national security of the United States, and it exemplifies why counterespionage is a top priority of the National Security Division,” said Assistant Attorney General Carlin. “I want to thank the FBI’s New York Field Office and Counterintelligence Division as well as the U.S. Attorney’s Office for the Southern District of New York for their continued effort to conduct these highly complex and sensitive counterespionage investigations and prosecutions, and for their continued close partnership with the National Security Division and the Counterespionage Section.”
“Following our previous prosecution with the FBI of Russian spies, who were expelled from the United States in 2010 when their plan to infiltrate upper levels of U.S. business and government was revealed, the arrest of Evgeny Buryakov and the charges against him and his co-defendants make clear that – more than two decades after the presumptive end of the Cold War – Russian spies continue to seek to operate in our midst under cover of secrecy,” said U.S. Attorney Bharara. “Indeed, the presence of a Russian banker in New York would in itself hardly draw attention today, which is why these alleged spies may have thought Buryakov would blend in. What they could not do without drawing the attention of the FBI was engage in espionage. New York City may be more hospitable to Russian businessmen than during the Cold War, but my office and the FBI remain vigilant to the illegal intelligence-gathering activities of other nations.”
“This investigation is one of many that highlight the determined and prolific efforts by foreign governments to target Americans for the purposes of collecting intelligence and stealing secrets,” Assistant Director Coleman. “This case is especially egregious as it demonstrates the actions of a foreign intelligence service to integrate a covert intelligence agent into American society under the cover of an employee in the financial sector. Espionage is as pervasive today as it has even been, and FBI counterintelligence teams will continue to aggressively investigate and expose hostile foreign intelligence activities conducted on U.S. soil.”
According to the complaint unsealed in Manhattan federal court today:
Buryakov worked in the United States as an agent of Russia’s foreign intelligence agency, known as the SVR. Buryakov operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank. SVR agents operating under such non-official cover – sometimes referred to as NOCs – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the U.S. Attorney General. Department of Justice records indicate that Buryakov has never notified the U.S. Attorney General that he is, in fact, an agent of Russia.
Sporyshev and Podobnyy are also SVR agents who worked in the United States to gather intelligence on behalf of Russia by posing as official representatives of Russia. From Nov. 22, 2010, to Nov. 21, 2014, Sporyshev served as a trade representative of the Russian Federation in New York. From Dec. 13, 2012, to Sept. 12, 2013, Podobnyy served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. Based on their official government postings on behalf of Russia, Sporyshev and Podobnyy are exempt from notifying the U.S. Attorney General of the true nature of their work. However, that exemption does not permit them to conspire with, or aid and abet, Buryakov in his work as an unregistered agent of Russia operating within the United States.
The intelligence-gathering efforts of Sporyshev and Podobnyy included, among other things, attempting to recruit New York City residents as intelligence sources for Russia; tasking Buryakov to gather intelligence; and transmitting intelligence reports prepared by Buryakov back to SVR headquarters in Moscow. Specifically, during the course of the charged offenses, Sporyshev was responsible for relaying assignments from the SVR to Buryakov, and Sporyshev and Podobnyy were responsible for analyzing and reporting back to the SVR about the fruits of Buryakov’s intelligence-gathering efforts.
The directives from the SVR to Buryakov, Sporyshev and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential U.S. sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, Buryakov, Sporyshev and Podobnyy regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of a bank in Manhattan (Buryakov), a trade representative of the Russian Federation in New York (Sporyshev) and an attaché to the Permanent Mission of the Russian Federation to the United Nations (Podobnyy). In particular, the defendants worked to safeguard Buryakov’s work as a NOC.
Sporyshev and Podobnyy acted as covert intermediaries for Buryakov to communicate with the SVR on intelligence-related matters. As an agent posing as someone without any official ties to the Russian government or the SVR, Buryakov was unable to access the SVR New York Office – which is located within an office maintained by Russia in New York City – without potentially alerting others to his association with the SVR. As such, Buryakov required the assistance of other SVR agents, like Sporyshev and Podobnyy, to exchange communications and information with the SVR through the communications systems located in the SVR New York Office.
From as early as March 2012 through as recently as mid-September 2014, the FBI has conducted physical or electronic surveillance of Buryakov and Sporyshev engaging in over 48 brief meetings, several of which involved Buryakov passing a bag, magazine or slip of paper to Sporyshev. These meetings typically took place outdoors, where the risk of effective surveillance was reduced relative to an indoor location.
These meetings were nearly always preceded by a short telephone call between Buryakov and Sporyshev, during which one of the men typically told the other that he had an item to give to him. Typically, during these telephone calls, which were intercepted by the FBI, the item in question was referred to as some non-specific ticket, book, list or other ordinary item (e.g., umbrella or hat).
Subsequently, at each meeting surveilled by the FBI, Buryakov and Sporyshev met and sometimes exchanged documents or other small items. Notably, despite discussing on approximately 12 occasions the need to meet to transfer “tickets,” Buryakov and Sporyshev, were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert. In fact, Buryakov and Sporyshev used this coded language to signal that they needed to meet, and then met to exchange intelligence information.
Attempts by Sporyshev and Podobnyy to Recruit Intelligence Sources in New York City
In numerous recorded communications, Sporyshev and Podobnyy discussed their attempts to recruit U.S. residents, including several individuals employed by major companies, and several young women with ties to a major university located in New York City (University-1), as intelligence sources for the SVR. On these recordings, the defendants discussed the potential value of these sources and identified particular sources by use of a “source name,” which appears to be a coded name. In addition, during these recordings, Sporyshev and Podobnyy discussed the efforts of other SVR agents to recruit a number of other Russian-origin individuals associated with University-1 as intelligence sources.
For example, Sporyshev and Podobnyy discussed Podobnyy’s efforts to recruit a male working as a consultant in New York City as an intelligence source. During this conversation, Podobnyy explained his source recruitment method, which included cheating, promising favors and then discarding the intelligence source once the relevant information was obtained by the SVR: “This is intelligence method to cheat. . . . You promise a favor for a favor. You get the documents from him and tell him to go [expletive] himself.”
In other recorded conversations, Sporyshev and Podobnyy made clear that they worked for the SVR. For example, on Jan. 31, 2013, Sporyshev and another SVR agent not charged in the complaint (CC-1) had a discussion inside the SVR New York Office about their contracts with the SVR. Sporyshev stated that, “Everyone has a five-year contract,” and explained, in response to CC-1’s question about reimbursement for the travel of SVR agents’ family members, that “travel for military personnel and their families on authorized home leave is paid, and in our, in our SVR, this, the payment for getting to and from the duty station.” In addition, on April 25, 2013, Sporyshev and Podobnyy discussed the use of nontraditional cover for Russian intelligence officers and, in particular, the Illegals program that ended with the arrest of 10 “deep cover” SVR agents in July 2010.
Buryakov’s Intelligence Taskings
Sporyshev was responsible for relaying intelligence assignments from the SVR to Buryakov. The FBI obtained electronic recordings of several conversations relating to such intelligence directives being communicated to and carried out by Buryakov in his position as an SVR agent acting under non-official cover. For example, on May 21, 2013, Sporyshev called Buryakov to ask for Buryakov’s help in formulating questions to be used for intelligence gathering purposes by others associated with a leading Russian state-owned news organization (the News Organization). Buryakov responded by supplying Sporyshev with a particular line of questioning about the New York Stock Exchange for use by the News Organization.
Buryakov’s Receipt of Purported Official U.S. Government Documents
In the summer of 2014, Buryakov met numerous times with a confidential source working for the FBI (CS-1). CS-1 posed as the representative of a wealthy investor looking to develop casinos in Russia. During the course of these meetings, and consistent with his interests as a Russian intelligence agent, Buryakov demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, Buryakov also accepted documents that CS-1 claimed he had obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about U.S. sanctions against Russia.
* * *
Buryakov, 39, Sporyshev, 40, and Podobnyy, 27, are charged on two counts. The first count charges the defendants with participating in a conspiracy for Buryakov to act in the United States as an agent of a foreign government without first notifying the Attorney General, and carries a statutory maximum penalty of five years in prison. The second count charges Buryakov with acting in the United States as an agent of a foreign government without first notifying the Attorney General, and charges Sporyshev and Podobnyy with aiding and abetting that offense. The second count carries a statutory maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The Attorney General is grateful for the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterespionage Section and Assistant U.S. Attorneys Adam Fee, Ian McGinley and Anna M. Skotko for the Southern District of New York’s Terrorism and International Narcotics Unit.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Buryakov, et al Complaint
Arizona Man Pleads Guilty to Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – David Mendez Bojorquez, 59, of Phoenix, Ariz., pleaded guilty this morning in federal court to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Mendez Bojorquez was arrested on Dec. 8, 2014, at the Greyhound Bus Station in Albuquerque, N.M., after DEA agents and task force officers executed a federal search warrant on his suitcase and found a package containing more than a gross kilogram of heroin. Mendez Bojorquez subsequently was indicted on Dec. 16, 2014, and charged with possession of a mixture and substance containing a detectable amount of heroin.
During today’s change of plea hearing, Mendez Bojorquez pled guilty to a felony information charging him with possession with intent to distribute a mixture and substance containing a detectible amount of heroin. In his plea agreement, Mendez Bojorquez admitted that he had heroin in his suitcase when he was encountered by law enforcement officers at the Greyhound Bus Station on Dec. 7, 2014. He further admitted that the officers found and seized the heroin after obtaining a search warrant for his suitcase.
Mendez Bojorquez will be in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum sentence of 20 years in federal prison.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. The case is being prosecuted by Assistant U.S. Attorney David Walsh.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Anderson County Man Indicted on Federal Income Tax ChargesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old Palestine, Texas man has been charged with federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jefferson Kincade appeared before U.S. Magistrate Judge K. Nicole Mitchell today and was released on an unsecured bond. Kincade was indicted on Jan. 21, 2015, and charged with 31 counts of preparing income tax returns with false statements in them, six counts of theft of government money, and six counts of aggravated identity theft.
According to information presented in court, Kincade prepared tax returns for individuals at a tax preparation business, EZ Tax, in Palestine, Texas. Kincade is alleged to have devised a scheme to prepare false tax returns, steal clients' refunds, and use the clients' and other individuals' identities to accomplish the theft. The indictment alleges that the goal of Kincade's false statements and representations in the tax returns that he submitted was to increase the amount of tax refunds to which the taxpayer would be entitled. All of these false statements and representations were about material matters, including such matters as filing status, dependents, wages, farm losses, business losses, withholding, education credits, distribution codes on retirement distributions, and itemized deductions. The indictment also alleges that Kincade was able to intercept the government tax refunds for his own benefit by printing the refund checks, not giving them to his clients, and then cashing them with the assistance of two individuals who were not associated with EZ Tax. This process involved Kincade's delivering refund checks along with his clients' identification information to an acquaintance who was also a client. Kincade's acquaintance would then deliver the checks to a third person, who owned a check cashing business located in Tyler, Texas. This third individual would cash the checks and give the cash to Kincade's acquaintance, and the acquaintance would deliver the cash to Kincade, who would keep the money.
If convicted, Kincade faces up to three years in federal prison for each of the 31 counts of preparing false tax returns, up to 10 years in federal prison for each of the six counts of theft of government money, and up to two years in federal prison for each of the six counts of aggravated identity theft.
Kincade was arrested by Texas Department of Public Safety. This case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Tom Gibson.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Anchorage Man Sentenced to 17.5 Years Imprisonment for Sexually Exploiting ChildrenRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage, Alaska man was sentenced in Federal Court in Anchorage on two counts of child sexual exploitation crimes. Kevin Callander was convicted of producing child pornography depicting a 10 year old girl. Callander’s victimization of the child began on July 10, 2012, while on a family vacation in Georgia, and continued on July 17, 2012, in Florida. Callander produced videos on those days using his iPhone, and then emailed them in interstate commerce.
Callander, 45, was sentenced January 22, 2015, by United States District Court Judge Sharon L. Gleason, to 17.5 years on each of the two convictions. Those sentences will run concurrently to each other, and to a separate 12 year prison term imposed by the State of Alaska for Sexual Abuse of a Minor. Callander’s prison terms will be followed by federal supervised release for the rest of his life.
U.S. Attorney Karen Loeffler stated, “The lengthy sentence in this case reflects the victimization perpetrated on innocent victims by Callander. Working with our law enforcement partners to protect children is a top priority and a constant mission.”
According to Assistant U.S. Attorney Audrey J. Renschen, Callander was under investigation for trafficking in child pornography by the Anchorage Police Department (APD) when they executed a search warrant at Callander’s home. APD then contacted U.S. Postal Inspection Service (USPIS) Agents when the videos that Callander produced were found.
Ms. Loeffler commends the USPIS and APD, members of the Alaska Internet Crimes Against Children Task Force, for the investigation of this case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative (PSC) which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Alien Smuggler Who Assaulted Border Patrol Agent Heads to PrisonRead the Press Release
LAREDO, Texas – Jose Luis Zavala-Rodriguez, 23, an undocumented Mexican alien, has been ordered to federal prison for assaulting a Border Patrol agent and transporting undocumented aliens, announced U.S. Attorney Kenneth Magidson. Zavala-Rodriguez was found guilty on four counts relating to assaulting a federal agent and alien transporting offenses in federal court on July 25, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo handed Zavala-Rodriguez a total of 80 months in federal prison. At the hearing, evidence and testimony from the jury trial was discussed including the agent’s injuries and fear during the attack orchestrated by the defendant. The court also heard about injuries to another alien and the testimony of a minor who identified Zavala-Rodriguez as the instigator of the assault on the agent and attempt to remove the agent’s handgun and TASER. In handing down the sentence, Judge Marmolejo noted the defendant’s behavior could have led to the serious injury or death of the Border Patrol agent or any of the aliens. The defendant objected to the lengthy sentence, but the court noted that he should not have attacked an armed Border Patrol agent. As an illegal alien, Zavala-Rodriguez is expected to face deportation proceedings following his release from prison.
On Oct, 23, 2013, at approximately 2:00am, a Border Patrol (BP) agent was pursuing a large group of undocumented aliens through large underground drainage tunnels. These tunnels are generally used by aliens and their guides to move secretly and away from public view.
The agent made his way to the drainage tunnel’s opening and saw legs of several persons hiding behind trees next to a building. He approached the group and instructed them in English and Spanish to not move and sit down. One of these persons - Zavala-Rodriguez - put his hands in the air and walked towards the agent telling him not to worry, at which time the agent continued to command Zavala-Rodriguez to stop.
Zavala-Rodriguez then lunged at the agent and took him to the ground. Zavala-Rodriguez then yelled in Spanish “Todos peganle,” meaning “Everyone hit him.” On the ground, the agent was surrounded and hit and kicked simultaneously by several persons. Zavala-Rodriguez was able to remove the agent’s service issued Taser.
As the agent pushed himself up from the ground, he then felt someone trying to extract his duty weapon. The agent then discharged his pistol twice and the group scattered. Other agents arrived almost simultaneous to the second shot and arrested Zavala-Rodriguez as well as other undocumented aliens.
The agent was hospitalized and diagnosed with trauma to the neck and other injuries. Zavala-Rodriguez received medical attention for his injuries and was released from the hospital and into federal custody.
Zavala-Rodriguez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The matter was investigated by the FBI with the assistance of BP and the Laredo Police Department. Assistant United States Attorney Christopher Coker and Homero Ramirez prosecuted the case.
Alabama Agencies and Cities Receive over $21 Million from Justice Department for Crime Prevention and Victim ServicesRead the Press Release
Montgomery, Alabama - In 2014 the Department of Justice awarded $21,617,777.00 in grant money to Alabama agencies and cities in the Middle District of Alabama, announced U. S. Attorney George L. Beck, Jr.
The money is to be used for crime prevention and victim services in the form of state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice; to decrease the time necessary for DNA analysis; to aid in juvenile delinquent rehabilitation; and to provide a variety of victim services. The Alabama Department of Economic and Community Affairs (ADECA) Law Enforcement and Traffic Safety Division, the Alabama Criminal Justice Information Center, the Alabama Department of Forensic Sciences, and the Alabama Board of Pardons and Pardons received very large grants from the Department of Justice. However, several other agencies and cities also received grant funds from the Justice Department.
Municipalities receiving 2014 DOJ grant funding included:
• The City of Montgomery received $77,075.00 to be used for training and to purchase canines, canine vehicle inserts, Cellebrite equipment, and a low rise scissor lift and wheel balancer.
• The City of Dothan received $35,479.00 to purchase in-car video cameras, mounted lights, holsters, and flashlights.
• The City of Auburn was awarded $27,940.00 to purchase license plate readers, traffic radar units, body cameras, and digital video systems.
• The City of Phenix City received $20,462.00 to purchase an Automatic Fingerprint Identification System.
• The City of Enterprise received $11,771.00 for the purchase of tasers and accessories, and a digital in-car video system.
In addition to the cities above, fourteen agencies received grant funding as well. Those agencies include:
• The Alabama Department of Economic and Community Affairs (ADECA) Law Enforcement and Traffic Safety Division received nine grants totaling $13,930,417.00. This funding will be used for a variety of purposes including: enhancing crime victim’s services throughout the state; supporting drug and violent crime task forces; addressing violence against women; improving the juvenile justice system and reducing juvenile delinquency; providing substance abuse treatment in correctional and detention facilities; improving forensic and medical examiner services; and enhancing the safety of women incarcerated in correctional facilities.
• The Alabama Criminal Justice Information Center was awarded four grants totaling $1,940,629.00. This funding will be used increase the safety and security of citizens by improving background checks and the collection sex offender data.
• The Alabama Department of Forensic Sciences obtained $1,263,414.00 in grant funds. These funds will be used to update equipment used to process DNA samples which will allow such samples to be analyzed more effectively and efficiently.
• The Alabama Board of Pardons and Paroles received two grants totaling $1,057,176.00. These grants will be used for reentry and supervision programs that will seek to reduce recidivism.
• The Alabama Administrative Office of Courts received $509,112.00 in grant funding to implement the Alabama Family Drug Court Statewide System Reform project in an effort to serve families in the child welfare system affected by parental substance abuse disorders more effectively and improve child, parent, and family outcomes.
• The Alabama Department of Mental Health and Mental Retardation was awarded $499,185.00 to enhance information sharing between criminal justice and mental health/substance abuse agencies and providers.
• The Alabama Department of Corrections received $499,166.00 to enhance the safety of women incarcerated in correctional facilities.
• The Alabama Crime Victims Compensation Commission received $453,000.00 to enhance victim compensation payments to eligible crime victims.
• The Alabama Department of Public Health was awarded $400,000.00 to enhance prescription drug data collection in order to better address prescription drug diversion and abuse.
• The Alabama Department of Public Safety received $326,989.00 to maintain and expand its Internet Crimes Against Children program and improve the Task Force’s effectiveness in preventing, interdicting, investigating and prosecuting online crimes against children.
• The Alabama Office of Prosecution Services received two grants totaling $233.117.00. The largest grant will be used to improve programs that prosecute, register, monitor, and track sex offenders. A grant was also awarded for student loan repayment for eligible public defenders and prosecutors.
• The Alabama Coalition Against Rape was awarded $126,045.00 to provide services to victims of sexual assault and domestic violence.
• The Alabama Attorney General's Office received $125,000.00 to assist in solving cold cases using DNA analysis.
• The Alabama Coalition Against Domestic Violence was awarded $81,795.00 to provide services to victims of sexual assault and domestic violence.
“We must make sure our law enforcement officers and service providers have all the tools necessary to vigorously combat crime in this District,” stated U.S. Attorney George Beck. “These grants will allow law enforcement to purchase those tools necessary to protect the citizens as well as protect the law enforcement officers while fighting crime. I am proud that the Department of Justice chose to allocate grant money to these cities and agencies to prevent crime and provide enhanced services in our community.”
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761717 KC-Area Defendants Among 26 Indicted for $16 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 26 defendants have been indicted in a $16 million drug-trafficking conspiracy that involved smuggling large amounts of methamphetamine, cocaine and heroin from Mexico for distribution in the Kansas City, Mo., metropolitan area.
Operation Signed and Sealed was a two-year, multi-agency investigation into a drug-trafficking organization that sold over 700 pounds of methamphetamine, 250 kilograms of cocaine and multiple kilograms of heroin in the Kansas City metropolitan area, with an estimated total value of more than $16 million.
Jose Ramon Soto-Garcia, also known as “Monky,” “Mon,” and “Ramon Del Monte,” 27, Jesus Hernandez-Mujica, also known as “Chenton,” 32, Ricardo Hernandez-Mujica, also known as “Pollo,” 29, Maurio Belgrave, 31, Nefeg Isaac Aguilar-Valle, 27, Alejandro Salas, also known as “Oliver Echeverry-Flamenco” and “Panocha,” 30, Sergio Flores, 43, Sylvia Marron, 37, and Ivan Orion Rueda-Simental, 22, all of Kansas City, Mo.; Missael Guadalupe Soto-Vejar, also known as “Missa,” “Narizon,” and “Flaco,” 26, and Dennys Eliceo Sermeno-Campos, 27, both of Independence, Mo.; Aurelio Jimenez-Cimental, 31, Iriarte Tadeo-Soto, also known as “Tantan,” 24, Antonio Arroyo-Cardenas, also known as “Cholo,” 30, and Jose Gabriel Bernardo-Vasquez, 32, all of Kansas City, Kan.; Rosalia Avila, also known as “Rosalia Diaz” and “Rosalia Flores,” 27, of Overland Park, Kan.; Luis Miguel Lopez, also known as “Tito,” 29, of Shawnee, Kan.; Gilberto Castillo-Soto, 38, of Culiacan, Sinoloa, Mexico; Victor Manuel Castillo-Soto, 40, and Aurelia Castillo, 37, both of Van Nuys, Calif.; Jose Carlos Zazueta-Valenzuela, 26, Francisco Alvarado-Soto, 28, and Monica Soto-Garcia, 29, all of Sun Valley, Calif.; Frankie Eleazar Perez, 32, of Madera, Calif.; Oscar Alberto Lopez-Perez, 32, of Medellin, Colombia; and Myrna Nora Saenz, 33, address unknown, were charged in an 11-count indictment returned under seal by a federal grand jury on Dec. 18, 2014. That indictment was unsealed and made public following the arrests and initial court appearances of several defendants.
Jose Soto-Garcia, Jesus Hernandez-Mujica, Ricardo Hernandez-Mujica, Rueda-Simental, Soto-Vejar, Jimenez-Cimental, Tadeo-Soto, Arroyo-Cardenas, Gilberto Castillo-Soto, Victor Castillo-Soto, Zazueta-Valenzuela, Alvarado-Soto and Monica Soto-Garcia are all citizens of Mexico. Aguilar-Valle is a citizen of Honduras. Sermeno-Campos is a citizen of El Salvador.
The federal indictment alleges that all 26 defendants participated in a conspiracy to distribute 50 grams or more of methamphetamine, five kilograms or more of cocaine and one kilogram or more of heroin from June 2013 to June 2014.
According to the indictment, the drugs were transported from Mexico by Gilberto Castillo-Soto to California and then transported or shipped by his brother, Victor Castillo-Soto, and Zazueta-Valenzuela to Kansas City, Mo. Allegedly aiding in the California portion of the drug-trafficking operation were Monica Soto-Garcia (Zazueta-Valenzuela’s wife and Ramon Soto-Garcia’s sister), Aurelia Castillo (Victor Castillo-Soto’s wife) and Perez. In addition to transporting the drugs themselves, conspirators also paid couriers to deliver drugs to the Kansas City area.
The drugs arrived at the residences of co-conspirators, the indictment says, such as Aguilar-Valle, then were picked up by Ramon Soto-Garcia. Ramon Soto-Garcia, along with Missael Soto-Vejar, allegedly distributed the drugs to other members of the conspiracy, including Aurelio Jimenez-Cimental, brothers Jesus and Ricardo Hernandez-Mujica, Antonio Arroyo-Cardenas, Alejandro Salas, Dennys Sermeno-Campos, Jose Bernardo-Vasquez, Ivan Rueda-Simental and Iriarte Tadeo-Sosa. These individuals allegedly supplied drugs to their own customers. Because Ramon Soto-Garcia did not communicate well in English, the indictment says, he employed his girlfriend, Rosalia Avila, to help translate for him and also to transfer funds to pay for the narcotics.
The money from the drug sales was transferred back to California in a number of ways, according to the indictment, such as shipments in computer towers by Dennys Sermeno-Campos and the electronic transfer of funds by Rosalia Avila. Once in California, the indictment says, the money would be physically transported to Mexico by Francisco Alvarado-Soto.
For example, the indictment alleges that Dennys Sermeno-Campos attempted to ship $76,000 that had been wrapped in eight bundles in duct tape, carbon paper and dryer sheets and concealed within a hollowed-out computer tower from Raytown, Mo., to Sun Valley, Calif., on July 15, 2013. According to the indictment, federal agents also seized a total of approximately $180,000 that was similarly hidden in two computer towers on Sept. 10, 2013. They also seized $80,025 that was hidden inside a microwave oven on Sept. 17, 2013, and $70,000 that was hidden inside a CD player on Sept. 26, 2013.
The indictment also alleges that Aurelio Jimenez-Cimental arranged a meeting between an undercover law enforcement officer of the Jackson County Drug TaskForce and Oscar Lopez-Perez and Victor Castillo-Soto to discuss moving money to California. During that Oct. 4, 2013, meeting, Oscar Lopez-Perez and Victor Castillo-Soto allegedly attempted to give the undercover officer $350,000 to transport.
In addition to the drug-trafficking conspiracy, several defendants are also charged with participating in a money-laundering conspiracy. The indictment alleges that Jose Soto-Garcia, Gilberto Castillo-Soto, Victor Castillo-Soto, Jose Zazueta-Valenzuela, Missael Soto-Vejar, Oscar Lopez-Perez, Aurelio Jimenez-Cimental, Francisco Alvarado-Soto, Rosalia Avila, Dennys Sermeno-Campos and Aurelia Castillo participated in a conspiracy to conduct financial transactions that involved the proceeds of the unlawful drug-trafficking activity to promote the activity; these transactions allegedly were designed in whole or in part to conceal the nature, the location, the source, the ownership and the control of the proceeds.
In addition to the conspiracies, Jimenez-Cimental is charged with two counts of distributing cocaine, two counts of distributing 50 grams or more of methamphetamine and one count of distributing heroin. Aguilar-Valle and Salas are also charged with one count of possessing 50 grams or more of methamphetamine with the intent to distribute.
Hernandez-Mujica is also charged with one count of possessing 50 grams or more of methamphetamine with the intent to distribute and with one count of possessing a firearm in furtherance of a drug-trafficking crime.
Aguilar-Valle is also charged with one count of being an illegal alien in possession of a firearm. The indictment alleges that Aguilar-Valle was in possession of a Taurus .45-caliber pistol on June 18, 2014.
The federal indictment also contains a forfeiture allegation, which would require all 26 defendants to forfeit to the government $16,017,200, which represents the proceeds obtained as a result of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Jackson County Drug Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration and the Kansas City, Mo, Police Department.