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10 March 2015
Many Resident Sentenced to 15 Years in Prison for Possession with Intent to Distribute Cocaine BaseRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Many resident was sentenced to 188 months in prison for possession with intent to distribute crack cocaine in Sabine Parish.
Cassius L. Medlock, 32, of Many, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute cocaine base. He was also sentenced to four years of supervised release. According to the November 13, 2015 guilty plea, Medlock was stopped on August 14, 2014, for speeding, and after searching the vehicle, officers observed more than 193 grams of cocaine base and marijuana in the vehicle he was driving. Six children were also present in the vehicle.
The defendant was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation. The DEA and the Sabine Parish Sheriff’s Office investigated the case. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Los Angeles Man Convicted of Federal Charge of Producing Child Pornography by Photographing Girl While in PhilippinesRead the Press Release
LOS ANGELES – Concluding a two-part trial, a Los Angeles man was convicted today of producing child pornography in the Philippines while being required to register as a sex offender due to his prior conviction for raping a 14-year-old girl.
Stanley Dan Reczko III, 50, who resided in the Koreatown District of Los Angeles, was found guilty of the charge by United States District Judge George H. King, who issued his ruling this afternoon from the bench.
In the first part of the trial, a jury on February 20 found Reczko guilty of sexual exploitation of a minor by producing child pornography in the Philippines.
As a result of his conviction on the sexual exploitation charge, and because he has a prior conviction, Reczko faces a mandatory minimum sentence of 25 years in federal prison. The second charge of producing child pornography while being required to register as a sex offender carries a mandatory consecutive 10-year prison term. Therefore, Reczko faces a minimum sentence of 35 years in prison – and he could be sentenced to as much as life without parole in prison – when he is sentence by Judge King on May 18.
Authorities began investigating Reczko in May 2007 after the minor victim handed over a CD containing child pornography to the International Justice Mission (IJM), a non-governmental organization working in the Philippines. IJM provided the CD, along with other evidence, to law enforcement officers working out of the U.S. Embassy in Manila. The evidence showed that Reczko had used the minor to produce eight series of child pornography, which included images of him and the victim engaging in sexual intercourse.
Reczko has been in custody since he was arrested after returning to the United States from the Philippines in 2007.
The case against Reczko is the result of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Release No. 15-025
Leeward Islands Native Charged with Lying to Get Workplace CredentialsRead the Press Release
PHILADELPHIA - Earl R. Russell, a/k/a “Ernest Steve Russell,” a/k/a “Ernest Steve Benders,” 57, a native of Saint Kitts-Nevis, was charged today by superseding indictment with making a materially false statement in a TWIC application regarding his citizenship and gaining entry by false pretense into a secure area of a seaport, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years and six months of imprisonment, a fine of $255,000, and a special assessment of $110 and three years of supervised release.
The case was investigated by the United States Coast Guard Investigative Service and Immigration and Customs Enforcement of the United States Department of Homeland Security and is being prosecuted by Assistant United States Attorney Floyd J. Miller and Special Assistant United States Attorney Mark T. Sendek.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader of Multimillion-Dollar Bank Fraud Scheme Sentenced in Manhattan Federal Court to 88 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that MAHABUBUZ ZAMAN was sentenced today to 88 months in prison for his participation in an elaborate bank fraud scheme that yielded more than two million dollars in ill-gotten gains. ZAMAN had been found guilty on November 12, 2014, by a Manhattan jury of conspiracy to commit bank fraud, conspiracy to commit identification document fraud, and use of a false passport, after a two-week jury trial. ZAMAN was sentenced today by U.S. District Judge Alison J. Nathan, who also presided over the jury trial.
Manhattan U.S. Attorney Preet Bharara said: “Mahabubuz Zaman may have enjoyed the riches of this multimillion-dollar bank fraud scheme for years. But now, thanks to the hard work of Immigration and Customs Enforcement’s Homeland Security Investigations, and prosecutors, Zaman will be spending the next seven years in federal prison.”
According to the Superseding Indictment, other court documents, and the evidence introduced at trial:
From approximately 2008 through November 2012, ZAMAN and his co-conspirators allegedly engaged in a bank fraud scheme in which they created hundreds of counterfeit checks, deposited those counterfeit checks into bank accounts they had opened in the names of sham companies in order to fraudulently inflate the balances in those accounts, and then withdrew funds from those bank accounts before the financial institutions were able to determine the fraudulent nature of the checks. In addition to the check fraud, the defendant and his partners-in-crime also obtained fraudulent mortgages and ran up credit card debt using false identities. The scheme victimized approximately 15 different banks, resulting in more than two million dollars in losses to the banks.
As part of the scheme, the conspirators incorporated sham companies and then opened bank accounts in the names of those sham companies. The individuals opening the accounts (the “accountholders”) often used false identities, including names and social security numbers, and presented false identification documents, including false Bangladeshi passports and forged United States visas. The accountholders were generally instructed to make small legitimate deposits at first so that the banks would make funds immediately available upon future fraudulent deposits.
ZAMAN and his co-conspirators obtained copies of legitimate checks and then used the payor account information that appeared on those checks to create counterfeit checks made payable to the sham companies they had incorporated as part of the scheme. The accountholders deposited the counterfeit checks into the sham company bank accounts at various banks. The accountholders often made deposits at numerous branches of the same bank on the same day. These deposits often were made on a Thursday or Friday so that the defendant and his co-conspirators could withdraw the illegal proceeds over the weekend when the banks were closed and were less likely to determine that the checks were counterfeit.
Once the defendant and his co-conspirators confirmed that funds from the counterfeit checks were available for withdrawal, the accountholders were directed to withdraw the funds from the counterfeit checks, typically over the weekend. The defendant and his co-conspirators often withdrew the funds from global cash access machines at casinos in Atlantic City, New Jersey, which did not have daily withdrawal limits. The accountholders often used false identification documents, including false Bangladeshi passports and fake United States visas, when making the withdrawals.
ZAMAN was one of the leaders of the scheme who recruited accountholders and directed both accountholders and higher-ranking members of the crew in the scheme’s operations, fronting the money for the scheme’s expenses and collecting a large share of its profits. In addition, ZAMAN was primarily responsible for the crew’s fraudulent mortgage operations.
In addition to the prison term, Judge Nathan sentenced ZAMAN to three years of supervised release, and ordered him to pay restitution and forfeiture in the amount of $2,638,700, and a $300 special assessment.
Manhattan U.S. Attorney Bharara praised the investigative work of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. He also thanked United States Citizenship and Immigration Services, the Queens County District Attorney’s office, the New Jersey State Police, the New York City Police Department, the New York State Police, and the United States Secret Service for their assistance in the matter.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Lisa Korologos and Alexander Wilson are in charge of the prosecution.
Leader of Johnson City Drug Conspiracy Sentenced to 20 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. – On Mar. 9, 2015, Demetrius Antwan Dalton, 35, of Atlanta, Ga., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 240 months in federal prison. Dalton was previously convicted of conspiracy to distribute, and to possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
From March 2012 to April 2013, Dalton operated a massive conspiracy in which he and numerous others sold kilogram quantities of crack cocaine throughout Johnson City. To accomplish this, Dalton procured powder cocaine from sources of supply in Georgia, transported the contraband to Tennessee, and then manufactured it into crack cocaine. Once that process was complete, he worked with countless facilitators, couriers, and distributors to sell his product.
Law enforcement used a variety of individuals to conduct controlled drug transactions with members of the instant conspiracy. Several of those transactions involved Dalton himself. Ultimately, agents received court authorization to monitor the phone calls of members of this conspiracy. The resulting wiretaps produced phone calls in which Dalton and his coconspirators were repeatedly heard arranging crack cocaine deals, discussing drug prices and quantities, and joking about the addiction suffered by their customers.
This investigation was the product of a partnership between the Johnson City, Tennessee Police Department, First Judicial District Drug Task Force, and Drug Enforcement Administration. Assistant U.S. Attorney Nick Regalia represented the United States.
A total of 21 individuals were charged as a result of this investigation. Those previously sentenced include:
Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 months; Eullis Monroe Goodwin, 43, of Elizabethton, Tenn., 188 months; Micah Antwan Still, 34, of Covington, Ga., 120 months; Derrick Henry Connor, 40, of Sherills Ford, N.C., 120 months; Devin Deonte Blalock, 20, of Jonesboro, Ga., 120 months; Kwanza Tarveze Worthy, 20, of Atlanta, Ga., 120 months; Don Juan Glass, Jr., 22, of Atlanta, Gia., 120 months; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., 120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, age 22, of Jonesborough, Tenn., 41 months. All others are awaiting prosecution or sentencing.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Leader of Grape Street Crips in New Haven Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DONALD OGMAN, also known as “Main” and “Mainy-O,” 33, of New Haven, was sentenced today by Senior U.S. District Judge Warren E. Eginton in Bridgeport to 188 months of imprisonment, followed by five years of supervised release, for heading a gang-related narcotics distribution ring.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. The investigation revealed that OGMAN, who was identified as the leader of the Grape Street Crips, typically purchased bulk quantities of cocaine from different sources of supply, processed the cocaine into crack cocaine and then distributed the drug to gang members and other individuals in the Hill and other neighborhoods in New Haven.
Between March and September 2011, investigators made approximately 75 controlled purchases of crack cocaine from OGMAN and other members and associates of the Grape Street Crips operating in the Hill. In addition, court-authorized wiretaps intercepted numerous conversations between Grape Street Crips members discussing narcotics and other gang-related activity, including possible retaliation against members of the rival Bloods gang, and the acquisition of firearms.
Eighteen individuals were charged and pleaded guilty as a result of this investigation.
OGMAN has been detained since his arrest on March 28, 2012. On March 14, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack”) and a quantity of cocaine.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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(203) 821-3722 [email protected]Lancaster Man Pleads Guilty to Possession with Intent to Distribute CocaineRead the Press Release
RICHMOND, Va. – Dayton M. Waddy, 34, of Lancaster County, Virginia, pleaded guilty today to a charge of possession with intent to distribute 28 grams or more of cocaine base, in violation of Title 18, United States Code, Sections 841(a)(1) and (b)(1)(B)(iii).
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.Waddy was indicted by a federal grand jury on January 20, 2015, and faces a maximum penalty of forty years and a minimum of five years in prison when sentenced on June 1, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15cr14
According to a statement of facts signed by Waddy and filed with his plea agreement, on October 6, 2014, a Lancaster County Sheriff’s Deputy pursued a vehicle driven by Waddy after Waddy attempted to elude the Deputy at a high rate of speed. Waddy ultimately crashed the vehicle in a ditch and fled on foot. The Deputy approached the vehicle and found on the front passenger seat a wallet containing Waddy’s identification. Lancaster County Sheriff’s Department deputies subsequently searched the vehicle pursuant to a search warrant and recovered several personal documents belonging to Waddy; approximately 4.5 ounces of crack cocaine; a scale, spoon, and knife, all having cocaine residue on them; and $9,000 in cash. Waddy was on federal supervised release for a previous drug conviction at the time of the offense.
This case was investigated by the DEA and the Lancaster County Sheriff’s Department. Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case on behalf of the United States.Justice Department and City of Jackson, Mississippi, Extend Agreement to Resolve Americans with Disabilities Act Lawsuit with the City's Public Transportation SystemRead the Press Release
Today, the Justice Department filed a joint motion to extend a settlement under the Americans with Disabilities Act (ADA) with the city of Jackson, Mississippi. The original lawsuit challenged inaccessibility in Jackson’s public transportation system, and was filed by 11 residents of Jackson with disabilities and two non-profit organizations that work on behalf of people with disabilities.
The Department of Justice has monitored the city under the terms of the five-year consent decree, filed in federal court in Jackson in March 2010. That agreement required the city to keep the wheelchair lifts working on the city’s fixed route bus system, known as JATRAN; train staff to properly help riders with disabilities; and meet its required level of service to passengers of Handilift, the ADA complementary paratransit service.
Today, the parties agree that while the city has improved its accessible bus services, the city has not yet fully complied with the consent decree. Therefore, the city will continue to make improvements and will report progress to the department on a monthly basis.
"Today’s action by the parties shows our vigilant commitment to remain engaged with the city of Jackson until the city has fixed any problems with the level of accessible public transportation provided to it its citizens," said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. "The department is grateful for the city of Jackson’s continued cooperation in resolving this matter and their commitment to reaching full accessibility of JATRAN."
“We remain committed to the rights of all citizens to have accessible transportation services in the Capital City of Jackson,” said U. S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The U.S. Attorney’s Office is also grateful for the cooperative relationship between the city of Jackson and the Department of Justice in working towards fulfilment of the terms of the consent decree.”
Those interested in finding out more about this agreement or public transportation’s obligations under the ADA can call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), access its ADA Web site at http://www.ada.gov, or access the Federal Transit Administration’s ADA Web site at http://www.fta.dot.gov/ada.
Joplin Woman Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman was sentenced in federal court today for aggravated identity theft and to fraudulently receiving federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Brittany Aulden Barnes, 24, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to two years and four months in federal prison without parole. The court also ordered Barnes to pay $18,774 in restitution to FEMA and $2,094 in restitution to her identity theft victims.
On Aug. 14, 2014, Barnes pleaded guilty to one count of disaster fraud and one count of identity theft.
Disaster Fraud
Barnes admitted that she fraudulently received disaster benefits by claiming that her residence in Joplin had been damaged by the tornado. When Barnes met with a FEMA-contracted inspector to discuss her claim on June 6, 2011, she also claimed the loss of a number of furniture items and appliances. Barnes was awarded $6,708 in disaster relief. In addition, Barnes resided at a FEMA-provided mobile home for more than a year, from September 2011 to December 2012, at a total cost to FEMA of $12,066.
However, Barnes admitted that the Joplin apartment was not her residence at the time of the tornado – on that date the apartment stood vacant. Barnes had rented the apartment prior to the Joplin tornado, and had occupied it along with her boyfriend, Russell Lamar Green. However, Barnes and Green had moved out before the tornado struck. In a separate but related case, Green pleaded guilty and has been sentenced for making false statements to FEMA in a failed effort to also receive disaster benefits.
Aggravated Identity Theft
Barnes also admitted that, while working at an Applebee’s restaurant in Joplin in May 2013, she stole a co-worker’s wallet, which contained the victim’s Missouri driver’s license, Social Security card, debit card and three credit cards.
Barnes used the stolen identity documents to impersonate the victim on several occasions. For example, she used a counterfeit personal check (drawn on the bank account of another victim) to purchase a $269 Sony Playstation game console at Best Buy. She cashed three counterfeit $598 payroll checks (drawn on the bank accounts of two additional victims) at two Wal-Mart stores.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Joplin Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man was sentenced in federal court for receiving and distributing child pornography over the Internet.
Jesse Lee Talley, 33, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to eight years in federal prison without parole.
On Oct. 21, 2014, Talley pleaded guilty to receiving and distributing child pornography. Agents with the Southwest Missouri Cyber Crime Task Force identified Talley’s computer using a peer-to-peer file-sharing program to transmit videos of child pornography over the Internet. Agents executed a search warrant at Talley’s residence and seized his computer, cell phone and numerous CDs, all of which contained images and videos of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.
Project Safe Childhood
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."
Johnson Brothers Sentenced for Conspiracy to Commit FraudRead the Press Release
Fargo – U.S. Attorney Timothy Q. Purdon announced that on March 9, 2015, Aaron A. Johnson and Derek M. Johnson were sentenced before U.S. District Judge Ralph R. Erickson to serve four years and 18 months respectively for conspiracy to commit fraud in connection with Federal Crop Insurance and Federal Crop Disaster Programs; making false statements to the United States Department of Agriculture, acting through the Risk Management Agency (RMA); and, making false statements to federal law enforcement authorities.
The two brothers farmed potatoes near Northwood, ND from at least as early as 2002 until about January 20, 2010, and thereafter. The guilty verdicts were returned Dec. 11, 2014, at the conclusion of a two week jury trial. The brothers’ scheme involved intentionally destroying and damaging potato crops, in order to obtain federal crop insurance indemnities and federal crop disaster benefits, over a period of years. As part of the scheme, the brothers intentionally poisoned their potato seed during planting. They intentionally destroyed or neglected their growing crops in the field and intentionally destroyed potatoes in storage. The brothers applied concentrated nitrogen fertilizer and septic system products such as Rid-X and Flush to their potato seed prior to planting; they intentionally destroyed their growing potatoes using cultivator equipment; intentionally left potatoes in the field during harvest. They added septic system products such as Rid-X and Flush to water and sprayed it on top of potatoes in storage; purchased and resold unused farm chemicals that were intended to protect the crop but never used; they sprayed water on fields in order to fool neighbors and others into thinking they cared for the crop; they added frozen potatoes to the top of the stored potato pile and used a portable heater to increase warehouse temperatures in order to regulate the rate of potato Soft Rot; they did all of this in advance of filing claims for lost potato production and stored potato crops over a period of years. The brothers and their farming operations received millions of dollars in federal crop insurance indemnities, subsidized crop insurance premiums and federal disaster benefits.
Judge Erickson also sentenced the Johnson brothers to five years supervised release and jointly pay restitution and forfeiture of .$932,000
The case was investigated by the United States Department of Agriculture and the Risk Management Agency
Assistant U.S. Attorney Clare Hochhalter and Assistant U. S. Attorney Nick Chase prosecuted the case.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney’s Office today announced that during a federal court session in Missoula, Montana on March 9, 2015, before U.S. Magistrate Judge Lynch, the following individuals appeared:
- YUSUF DESHAWN REEVES, a 47-year-old resident of Spokane, Washington, made an initial appearance on a complaint alleging conspiracy to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, REEVES, faces 40 years in prison, $5,000,000 in fines and 4 years supervised released. The investigation is being conducted by the Montana Violent Crime Task Force, the Federal Bureau of Investigation, the Missoula Street Crimes Unit, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 15-17
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
High-Level Member of Large-Scale, $5 Million ATM Skimming Scheme Convicted on Multiple ChargesRead the Press Release
NEWARK, N.J. – A Chicago man was convicted at trial today for his role in a large-scale, long-running, and lucrative scheme to steal bank customer account information – commonly referred to as “ATM skimming” – by installing hidden card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Dinu Horvat, 28, was convicted on four counts of a superseding indictment – conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and conspiracy to possess access device-making equipment – following a one-week trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated about two hours before returning the verdict.
According to documents filed in this case and the evidence at trial:
Horvat was a high-level member of an extensive ATM skimming scheme organized by Marius Vintila, 31, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and affected thousands of bank customers. Vintila and defendant Bogdan Radu, 30, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Horvat and his partners then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. The stolen data was used to create thousands of false and fraudulent ATM cards, which Horvat and others used to withdraw millions of dollars from customers’ bank accounts. Horvat also recruited others to participate in the scheme, including Enes Causevic, Mirel Hadzalic, and Luis Franco, all of whom have previously pleaded guilty.
The ATM skimming operation in which Horvat participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals, including Vintila, have been charged in connection with the scheme. Twelve of those 16 have pleaded guilty. In addition to Vintila, Radu, who was charged separately, pleaded guilty to bank fraud conspiracy and aggravated identity theft in February 2014. Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, all charged separately from Horvat, participated in the scheme by installing or removing the devices, and by subsequently using the fraudulent ATM cards to withdraw cash from compromised bank accounts. Florin Apetrei, 18, Luis Franco, 23, and Mirel Hadzalic, 24, participated in the scheme by using the fraudulent ATM cards to withdraw cash. Causevic, Cotiga, Ginga, Gyapias, Leusca, and Revesz all pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. Apetrei, Cotiga, Pendus, Franco, and Hadzalic pleaded guilty to bank fraud conspiracy. For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias, and Leusca each to 57 months in prison. Franco and Pendus received sentences of 33 months in prison each. Hadzalic received a sentence of 34 months in prison. Apetrei received a sentence of 24 months in prison. Vintila, Causevic, Cotiga, Radu, and Revesz are pending sentencing.
Charges remain pending on three additional members of the conspiracy who were charged by indictment on April 16, 2014: Alin Dumitru Carabus, 40, Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 28, and Robert Eduard Mate, a/k/a “Chioru,” 29, were each charged with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more access devices, and possession of 15 or more access devices. Carabus, Ciurba-Stana, and Mate were all apprehended in Spain, and requests for extradition to the United States are pending.
The bank fraud conspiracy charge for which Horvat was convicted carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. The conspiracy to possess 15 or more counterfeit access devices carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. The conspiracy to possess access device-making equipment carries a maximum penalty of seven and one-half years in prison and a maximum $250,000 fine. Sentencing is scheduled for June 23, 2015.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli; special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation. He also thanked the Barnegat Township Police Department and the Brick Township Police Department for their participation in the case.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
15-086
Defense Counsel: E. Alexander Jardines Esq., West New York, New JerseyFormer South American Counter-Terrorism Official Sentenced in Manhattan Federal Court to More Than 16 Years in Prison for Attempting to Support HezbollahRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that DINO BOUTERSE, a citizen of Suriname who assisted in the formation of that country’s Counter-Terrorism Unit, was sentenced today in Manhattan federal court to 195 months in prison for attempting to provide material support and resources to Hezbollah, a designated terrorist organization, along with narcotics trafficking and firearms offenses. BOUTERSE, who was arrested in Panama on August 29, 2013, and arrived in the United States on August 30, 2013, pled guilty before U.S. District Judge Shira A. Scheindlin, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Dino Bouterse was supposed to oppose terrorism. Instead, Bouterse betrayed his official position and tried to support and aid Hezbollah, including his agreement to assist Hezbollah in acquiring weapons, and conspiring to import cocaine to the U.S. Today he has been sentenced to a lengthy prison term for those odious crimes.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at today’s sentencing:
In 2013, BOUTERSE used his position within the government of Suriname to assist individuals he believed were members of Hezbollah, who informed BOUTERSE that they intended to conduct terrorist attacks against American interests. In exchange for a multimillion-dollar payment, BOUTERSE agreed to allow large numbers of purported Hezbollah operatives to use Suriname as a permanent base for, among other things, attacks on American targets. In furtherance of his efforts to assist Hezbollah, BOUTERSE (i) supplied a false Surinamese passport to a purported Hezbollah operative for the purpose of clandestine travel, including travel to the United States; (ii) discussed heavy weapons that he could provide to Hezbollah; and (iii) instructed the purported Hezbollah members about how Hezbollah operatives, supplied with a Surinamese cover story, could enter the United States.
In June 2013, BOUTERSE and a co-defendant, Edmund Quincy Muntslag, met in BOUTERSE’s office in Suriname with confidential sources (the “CSs”) working with the Drug Enforcement Administration (“DEA”) to discuss importing cocaine into the United States using commercial airline flights. During the meeting, BOUTERSE showed the CSs a rocket launcher and a kilogram of cocaine.
Approximately one month later, BOUTERSE and Muntslag worked to provide transportation and security for cocaine being sent through Suriname to the United States. As a test run, BOUTERSE and Muntslag sent 10 kilograms of cocaine on a commercial flight departing from Suriname. BOUTERSE personally verified the arrangements for the 10-kilogram cocaine shipment in a text message. The cocaine was intercepted by law enforcement officials after it departed Suriname.
In July 2013, BOUTERSE met with one of the CSs to discuss opening Suriname to the CSs’ purported Hezbollah associates.
Later that month, BOUTERSE met in Europe with one of the CSs and with two other men who purported to be associated with Hezbollah. During this meeting, BOUTERSE discussed initially hosting 30 to 60 Hezbollah members in Suriname for training and operations. He also indicated that he wanted a Hezbollah cell in Suriname to act, in part, as a personal armed force. BOUTERSE confirmed his understanding that the purported Hezbollah operatives would operate in South America against American targets, and he agreed to supply Surinamese passports to the operatives – and to assist with their applications for visas to travel from South America into the United States. In addition, in response to a request for surface-to-air missiles and rocket-propelled grenades, BOUTERSE stated that he would need “two months” and that he would provide a list of what he could supply. Finally, at the July 2013 meeting in Europe, BOUTERSE agreed to create a false Surinamese passport for one of the purported Hezbollah operatives, so that BOUTERSE and the Hezbollah operative could travel to Suriname to inspect the facilities that BOUTERSE had agreed to prepare for the Hezbollah contingent.
At a subsequent meeting in August 2013, BOUTERSE delivered a Surinamese passport with false identifying information to a purported Hezbollah operative. As had been discussed at the July 2013 meeting in Europe, the purported Hezbollah operative was to use the fraudulent passport to travel to Suriname. BOUTERSE indicated that everything was ready in Suriname for the arrival of the purported Hezbollah members, and that some “toys” – a code-word for weapons – would be available for inspection.
Following this meeting, BOUTERSE was arrested by Panamanian law enforcement and transferred to the custody of the DEA.
On August 29, 2014, BOUTERSE pled guilty to (i) attempting to provide material support to Hezbollah, a Foreign Terrorist Organization; (ii) conspiring to import five kilograms or more of cocaine into the United States; and (iii) using and carrying, or aiding and abetting the use and carrying of, a firearm or during and in relation to a drug-trafficking crime. In addition to his prison term, BOUTERSE, 42, a citizen of Suriname, was ordered to pay a $300 special assessment fee.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Miami Field Division, Panama City Country Office, Port-of-Spain Country Office, and Bogota Country Office; the Government of the Republic of Panama; and the U.S. Department of Justice’s Office of International Affairs and its National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Adam Fee, Michael Ferrara, and Edward Y. Kim are in charge of the prosecution.
Former Gulf Cartel Plaza Bosses Receive Long Prison SentencesRead the Press Release
BROWNSVILLE, Texas – Jose Luis Zuniga-Hernandez, 47, aka Wicho or XW or Commandante Wicho, has been ordered to federal prison along with his brother Armando Arizmendi Hernandez, 37, aka Commandante Mando or XW2 for conspiracy to import more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between January 2002 and July 2013, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. Both defendants previously pleaded guilty and, as part of their pleas, also agreed to a $5 million forfeiture.
Today, Senior U.S. District Judge Hilda G. Tagle, sentenced Zuniga-Hernandez to 50 years in federal prison, while Arizmendi Hernandez will serve a 35-year-term.
During a sentencing hearing that was held on Feb. 4, 2015, the court heard evidence regarding sentencing enhancements or increases in the calculated sentencing guideline ranges. During the hearing, the government presented evidence that allowed the court to find that the sentences for both should be enhanced because they utilized automatic weapons, grenades, homemade cannons and body armor to provided security during the purchase, transportation and distribution of narcotics. The evidence also proved that both commanded, directed and engaged in violent confrontations with other criminal syndicates to maintain control of the plazas in Mexico. Both received enhancements for importation of methamphetamine into the United States, for bribing law enforcement to facilitate the crimes committed, for maintaining premises for the purpose of manufacturing or distributing a controlled substance. Both also received enhancements because they committed the offense as part of a pattern of criminal conduct or livelihood. Finally, the court also found that both should receive an enhancement because the evidence showed they were leader/organizers of a criminal activity that involved five or more participants and was otherwise extensive.
“The arrest and prosecution of these individuals dealt a significant blow to the Gulf Cartel," said Ayala. "Today’s sentencing marks the culmination of a sustained and dedicated effort by HSI Brownville and Attache Mexico special agents, RGV Sector Border Patrol agents, other federal and state and local partners and the U.S. Attorney's Office towards the dismantlement of transnational criminal organizations impacting public safety on both sides of our border with Mexico."
Zuniga-Hernandez served as plaza boss of the El Control, Tamaulipas, Plaza, for a large period of time between 2008 through 2011 and, during that time, Arizmendi-Hernandez was second in command. Arizmendi-Hernandez became the plaza boss of El Control on Nov. 6, 2010, when Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to the El Control Plaza. At that time, Arizmendi-Hernandez resumed his duties as second in command of the Plaza.
Cartel Del Golfo Transnational Criminal Organization (CDG) plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
The evidence presented at sentencing indicated that Zuniga-Hernandez and the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and more that 3000 kilograms of marijuana into the United States per month. Planes and clandestine air strips were used to fly the cocaine into Mexico for later importation and distribution within the United States.
Under his command were approximately 120 lookouts and 60 estacas (a vehicle occupied by three or four armed individuals). Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza.
On Oct. 27, 2011, Zuniga-Hernandez and Arizmendi Hernandez fled into the United States with Juan Rincon-Rincon and Luis Ivan Nino-Duenes after a gun battle in Mexico involving a power struggle between the plazas of the CDG. All were found and arrested by the U.S. Border Patrol (USBP) hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG. Also found were videos of Arizmendi Hernandez, Zuniga-Hernandez and other members of the CDG in preparation for and after the Oct. 27, 2011, gun battle.
Zuniga-Hernandez and Arizmendi Hernandez had stipulated that the total relevant conduct during their leadership was well in excess of 150 kilograms of cocaine and 1,000 kilograms of marijuana. Both have agreed they obtained at least $5 million in drug proceeds as a result of the conspiracy.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by HSI, Drug Enforcement Administration and the Cameron County Sheriff’s Office. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.
Former Chippewa Cree Tribal Chairman Sentenced to 34 Months in Prison for Bribery, Embezzlement, and Tax EvasionRead the Press Release
GREAT FALLS – Former Chippewa Cree Tribal Chairman Bruce Sunchild, 69, of Box Elder was sentenced to almost three years in federal prison for his role in the widespread public corruption at the Rocky Boy’s Indian Reservation. The sentencing took place before U.S. District Judge Brian Morris today, in Great Falls.
Bribery and Theft relating to Tribal Insurance Monies
Sunchild plead guilty to bribery and theft in connection with a December 2011 transfer of $300,000 in tribal insurance funds to K & N Consulting, a company owned by Havre businessman Shad Huston.
According to prosecutors on December 22, 2011, K & N Consulting received and deposited a cashier’s check in the amount of $300,000 from the Chippewa Cree Tribe. An internal tribal document reflected that five tribal officials approved the disbursement ostensibly for “claim prep” by K & N Consulting—Chairman Sunchild, Vice-Chairman John Chance Houle, two members of the Insurance Recovery Team Councilman Ted Whitford and Chippewa Cree Construction Corporation CEO Tony Belcourt, and Tribal Secretary-Treasurer Janice Meyers. The funds were drawn on the Tribe’s bank account utilized for the Insurance Fund settlement monies that came to the tribe in the wake of flooding in 2010. No other supporting records or documents—such as invoices, itemized billing, receipts, pay requests, evidence of costs incurred or disbursements made for the work, or any other kind of standard supporting documentation—were found in a search of tribal records by employees of the Tribe.
K & N Consulting issued a $200,000 check from its business account to Tony Belcourt—noted as “consulting services” and dated December 20—which Belcourt deposited on December 23, the day following the tribal payment to K & N Consulting. From the remaining $100,000, of the $300,000 insurance check to K & N Consulting, Huston and K & N Consulting paid out an additional $57,800 to the benefit of the other three approving officials, including $24,977 paid to Tilleman Motors to clear the title and transfer Belcourt’s Chevrolet Suburban to Sunchild; $12,823 to Tilleman Motors to pay the bill on repairs and maintenance for Chance Houle’s vehicle; and a check payable to “Cash” in the amount of $20,000 with the memo section notation “Mervin Whitford – on CCCC Rocky Boys Tribe.” Mervin Whitford is the brother of Ted Whitford. Huston and K & N Consulting retained the remaining $42,200.
Embezzlement from the Rocky Boy Health Clinic
Sunchild had also entered a plea of guilty to the embezzlement of $25,000 from the Rocky Boy Health Clinic.
In 2012, Bruce Sunchild, then Chairman of the Chippewa Cree Business Committee and on the Board of Directors of the Rocky Boy Health Board Clinic, sought to get in-patient substance abuse treatment for his son and his son’s girlfriend. The White Sky Hope Center, located on the Rocky Boy’s Indian Reservation and serving the Chippewa Cree Tribe, receives approximately $90,000 a year from the IHS to pay for inpatient treatment for tribal members requiring those services. White Sky does not have inpatient treatment facilities, but the federal funding allows White Sky to refer 6 to 8 tribal members a year for inpatient treatment at facilities outside of the reservation. These 6 to 8 tribal members are chosen based on their conditions and/or if their situation constitutes a need for emergency in-patient rehabilitative care. These 6 to 8 tribal members must be referred by White Sky for the services to be covered by federal funding.
After the pair was turned down by White Sky, Chairman Sunchild directed them to meet with Dr. James Eastlick, Jr. Eastlick had told Chairman Sunchild that the only money available for treatment was through a White Sky referral, but the Chairman was adamant that the pair get treatment off the reservation and as soon as possible. Eastlick arranged for the pair to get an evaluation in Havre which was used to get a referral to the Rimrock Foundation in Billings. Chairman Sunchild went to Huston and asked that he “front” the money for treatment at Rimrock for his son and his son’s girlfriend with the promise that Huston would be repaid. Huston agreed and the two went to Rimrock as private patients (meaning they paid the full rate instead of a discounted rate that would have been expended had they went through White Sky). The total bill was $25,000.
In October of 2012, Chairman Sunchild directed Fawn Tadios, then the Executive Director of the RBHB Clinic, to issue two checks: Check # 107918 payable to Sunchild’s son’s girlfriend and Check # 107919 was payable to Sunchild’s son. In an October 11, 2012, email, Tadios told John Johnson in the RBHBC Finance office to issue the checks “to [Sunchild’s son] and [Sunchild’s son’s girlfriend]” and further advised that “I’ll [Tadios] take them over to Leon’s and he’ll [Huston] call them and have them sign them over to the pawn shop.” The pawn shop referred to in the email is Leon’s Buy and Sell which is owned and operated by Shad Huston. The repayment funds came from Contract Health Service (CHS). Johnson advised investigators that CHS does not pay for inpatient treatment. Only the White Sky Hope Center covers the cost for inpatient treatment.
Tax Evasion
Sunchild also plead guilty to tax evasion for his failure to report and pay tax on $144,477 of unreported income in and between 2009 and 2012.
In addition to the federal prison sentence, Sunchild was sentenced to pay $370,088 in restitution. Of that amount, restitution was ordered to the Internal Revenue Service in the amount of $45,088, and to Chippewa Cree Tribe in the amount of $325,000 — with $300,000 of that amount obligated jointly and severally with other defendants sentenced in connection with the December 201l transaction.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division.
Former Armored Car Employee Convicted of TheftRead the Press Release
PHILADELPHIA – A federal jury, last night, returned guilty verdicts in the case of Tanika Victoria Little, 36, of Philadelphia, PA, who was charged with two counts of bank theft and one count of possession of a firearm with an obliterated, altered or removed serial number. A sentencing hearing is scheduled for June.
Little was an employee of Brink’s, Inc., a national armored truck company which delivered cash to banks, among other businesses. On February 15, 2011 and on March 1, 2011, Little came into possession of incorrectly routed bags of cash totaling approximately $110,000 in $20 denominations. Little failed to deliver the bags of cash to Bank of America's Drexel Hill branch and began making deposits into her personal bank accounts. Little, whose annual income from Brink=s was approximately $41,000 at the time, deposited approximately $41,840 in cash in $20 denominations into three different bank accounts between March 2, 2011 and June 1, 2011. On June 29, 2011, within an eight-hour period of time, Little purchased 27 money orders, totaling approximately $13,000, with cash from eight different retail establishments in South Philadelphia, PA. In addition, in 2011, Little reported that she had paid approximately $25,000 for exterior and interior home improvements in cash, including $2,000 for a remodeled bathroom, $4,300 for a remodeled kitchen, $8,500 for a remodeled basement, and $9,000 for rebricking of her home’s exterior.
Little faces an advisory sentencing guideline range of 30 to 37 months in prison, a fine of up to $2.1 million, a $300 special assessment, and up to five years of supervised release.
The case was investigated by United States Secret Service and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.
Federal Grand Jury in Fort Wayne, Indiana, Returns Indictments in Large Scale Cocaine Distribution NetworkRead the Press Release
The U.S. Attorney's Office of the Northern District of Indiana announced today two indictments charging six persons in what is alleged to be the largest cocaine distribution network in the greater Fort Wayne, Indiana, area.
These indictments are the result of an extensive law enforcement investigation led by the Federal Bureau of Investigation (FBI) Fort Wayne Safe Streets Task Force. In addition to the FBI, the Task Force consists of the Allen County Sheriff’s Department, the Fort Wayne Police Department and the Indiana State Police.
There were five people charged with conspiracy to deliver more than five kilograms of cocaine: Allan L. Bates, 37, of Fort Wayne, Indiana; James W. Lepper, 66, of Butler, Indiana; Larry J. Norton, 63, of Mission Texas, formerly of Fort Wayne, Indiana; Eric D. White, 52, of Fort Wayne, Indiana; and Ryan Bowman, 35, of Payne, Ohio.
One individual, DeWayne Lewis, 40, of Greenwood, Indiana was charged in a separate indictment with possession with intent to deliver over five kilograms.
All defendants are in custody and are being held without bond. During the course of this extensive investigation, law enforcement executed 17 federal searches in Indiana, Ohio and
Texas. In addition, the DeKalb County and Johnson County Prosecutor’s offices obtained two state search warrants. All of these searches resulted in the seizure of more than 100 kilograms of cocaine, over $5.9 million in U.S. currency and numerous firearms and vehicles.
Great assistance was also provided by the McAllen, Texas, and Toledo, Ohio, offices of the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service – Northern and Southern Districts of Indiana, along with the Auburn Police Department, the Greenwood Police Department, the Kendallville Police Department, the Johnson County Sheriff’s Department, the Indiana Multi-Agency Group Enforcement (IMAGE) representing law enforcement in DeKalb, LaGrange, Noble and Steuben Counties and the Northeast Indiana SWAT.
This case has been assigned to and will be prosecuted by Assistant U.S. Attorney Anthony W. Geller of the Northern District of Indiana.
The U.S. Attorney's Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the federal sentencing guidelines.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
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Columbia, South Carolina - United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following: Mauldin Middle School Teacher Indicted for Possession and Distribution of Child Pornography
Daniel Ray Archer, age 56, of Simpsonville, South Carolina, was charged in a 2-count indictment. Archer was charged with Possession of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(5)(B) and Distribution of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(2). The maximum penalty Archer could receive for each count is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and officers of the Greenville County Sheriff's Office and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Grand Jury in Fort Wayne Returns Indictments in Large Scale Cocaine Distribution NetworkRead the Press Release
Fort Wayne, Indiana - The United States Attorney's Office announced today two indictments charging six persons in what is alleged to be the largest cocaine distribution network in the greater Ft. Wayne area.
These indictments were the result of an extensive law enforcement investigation led by the Federal Bureau of Investigation Fort Wayne Safe Streets Task Force. In addition to the FBI, that Task Force consists of the Allen County Sheriff’s Department, the Ft. Wayne Police Department and the Indiana State Police.
Charged with conspiracy to deliver more than 5 kilograms of cocaine were:
Allan L. Bates, age 37, of Fort Wayne, Indiana, James W. Lepper, 66, of Butler, Indiana, Larry J. Norton, 63 of Mission Texas, formerly of Fort Wayne, Eric D. White, 52 of Fort Wayne, Indiana and
Ryan Bowman, 35 of Payne, Ohio.Charged in a separate indictment with possession with intent to deliver over 5 kilograms of cocaine is DeWayne Lewis, age 40, of Greenwood, Indiana.
All defendants are in custody and are being held without bond. During the course of this extensive investigation, law enforcement executed 17 federal searches in Indiana, Ohio and Texas. In addition, the DeKalb County and Johnson County Prosecutor’s offices obtained 2 state search warrants. All of these searches resulted in the seizure of more than 100 kilograms of cocaine, over $5.9 million in U.S. currency, and numerous firearms and vehicles.
Great assistance was also provided by the McAllen, Texas, and Toledo, Ohio, offices of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service – Northern and Southern Districts of Indiana, along with the Auburn Police Department, the Greenwood Police Department, the Kendallville Police Department, the Johnson County Sheriff’s Department, the Indiana Multi-Agency Group Enforcement (IMAGE) representing law enforcement in DeKalb, LaGrange, Noble and Steuben Counties, and the Northeast Indiana SWAT.
This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Doctor Charged with Passing Fraudulent PrescriptionsRead the Press Release
PHILADELPHIA – Dr. Cynthia Masso, 42, of Philadelphia, PA, was charged today by information with five counts of obtaining controlled substances by fraud, announced United States Attorney Zane David Memeger. Masso was a physician licensed in the Commonwealth of Pennsylvania and the State of New Jersey to practice medicine and was registered and authorized by the U.S. Drug Enforcement Administration (DEA) to write prescriptions for controlled substances for legitimate medical purposes within the scope of her professional medical practice.
According to the information, between January of 2010 and October of 2013, Masso wrote approximately 496 fraudulent prescriptions for oxycodone and oxycodone with acetaminophen in the names of various family members, in the name of another individual, and in the names of fictitious “patients,” in order to obtain quantities of those controlled substances. In no case were any family members aware of the writing of these prescriptions in their names. She then, allegedly, posed as a nurse named “Lisa Johns” in order to have the prescriptions filled at local pharmacies.
If convicted of all charges, the defendant faces a maximum possible sentence of of 20 years in prison, a $1.25 million fine, a maximum term of one year supervised release, and a $500 special assessment.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney James Pavlock.
Computer Industry Consultant Convicted for Using Identity of Deceased InfantRead the Press Release
BOSTON – A former Boston computer industry consultant was found guilty following a five-day jury trial on March 6, 2015, of assuming the identity of an infant who died in 1966 and using that identity to obtain a Social Security number.
Steven Nolte, 51, was convicted of passport fraud, aggravated identity theft, and use of a falsely-obtained Social Security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 28, 2015. He remains detained pending sentencing.
Nolte was born in Arizona in 1963 as Steven Nolte, but in 1997, he assumed the identity of a four-day-old infant who died in 1966. At the time Nolte adopted this identity, he was in the process of stealing over $571,000 from a real estate company for which he had provided computer consulting services. Nolte then obtained a passport in the assumed identity and traveled to Costa Rica, where proceeds of the theft had been wire-transferred. Nolte thereafter traveled extensively in the South Pacific and ultimately settled in the Boston area, where he worked in the computer industry for many years under his assumed identity. In 1999, he applied for a Social Security number by using the same false identity. Nolte’s true identity was discovered in May 2012 when he submitted an application for a replacement passport in Boston under his assumed name. State Department officials realized that the Social Security number Nolte was using had not been issued to Nolte in the assumed name until he supposedly was 33 years old. Upon further investigation, agents learned of the infant’s death in 1966, and ultimately uncovered Nolte’s true identity.
The charge of making false statements in a passport application provides for no greater than 10 years in prison and three years of supervised release; the charge of using a falsely-obtained Social Security number provides for no greater than five years in prison and three years of supervised release; and the charge of aggravated identity theft provides for a mandatory two years in prison, and one year of supervised release. All three charges provide for fines of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentenced are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutory sentencing factors.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Brian Pérez-Daple and Robert E. Richardson of Ortiz’s Major Crimes Unit.
CommerceWest Bank Admits Bank Secrecy Act Violation and Reaches $4.9 Million Settlement with Justice DepartmentRead the Press Release
The Justice Department announced today that it has agreed to a $4.9 million civil and criminal resolution with CommerceWest Bank, of Irvine, California, arising out of the department’s investigation into consumer fraud schemes facilitated by the bank. Today the United States filed a criminal charge and a civil complaint in the U.S. District Court for the Central District of California.
The criminal information charges the bank with a felony violation of the Bank Secrecy Act in connection with the bank’s relationship with a third-party payment processor. The civil complaint alleges that CommerceWest Bank knowingly facilitated consumer fraud by permitting the payment processor to make millions of dollars of unauthorized withdrawals from consumer bank accounts on behalf of fraudulent merchants. To resolve the department’s criminal and civil allegations, CommerceWest Bank has agreed to a total monetary resolution of more than $4.9 million, a deferred prosecution agreement and a permanent injunction that reforms the bank’s practices to prevent such fraud in the future.
“CommerceWest Bank ignored a parade of red flags indicating that a third-party payment processor was defrauding hundreds of thousands of innocent victims,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “As the civil and criminal actions filed against CommerceWest Bank today demonstrate, we will hold financial institutions accountable when they choose unlawfully to look the other way while fraudsters use the bank’s accounts to steal millions of dollars from American consumers.”
According to the civil complaint, from December 2011 through July 2013, CommerceWest Bank worked with V Internet Corp LLC, a third-party payment processor based in Las Vegas. V Internet processed transactions for fraudulent merchants that withdrew money from consumers’ bank accounts without authorization. These merchants included a fraudulent telemarketing company and a company that charged hundreds of thousands of victims for a payday loan referral fee they had never authorized. In early 2013, V Internet took over the payday loan referral scheme, operating as the payment processor and sole merchant from January 2013 through July 2013.
The complaint alleges that CommerceWest ignored clear warning signs indicating that V Internet and its merchants were defrauding consumers. V Internet’s debit transactions resulted in an abnormally high rate of rejected transactions. Approximately 50 percent of the transactions were returned by consumers and their banks. Many of those returned transactions included sworn affidavits, in which victims stated, under penalty of perjury, that the withdrawals on their accounts were unauthorized.
CommerceWest also received complaints and inquiries from other banks, which expressed their belief that V Internet’s transactions were fraudulent. Even in the face of these explicit warnings from other banks, CommerceWest did not terminate V Internet or file a Suspicious Activity Report, an alert banks are required to file with the government indicating the presence of suspicious illegal activity. Instead, CommerceWest and V Internet developed a practice of blocking transactions against accounts at those banks that complained, but allowing the transactions to continue against accounts at all other banks.
The complaint alleges that, by May 29, 2013, a CommerceWest official had determined that all of V Internet’s transactions appeared to be fraudulent and unauthorized. However, CommerceWest Bank did not make the decision to terminate V Internet until early July 2013. Even at that point, CommerceWest planned to allow V Internet an additional 30 days to wind down its processing activity. Only when the department notified CommerceWest that it intended to seek an emergency injunction did CommerceWest immediately terminate V Internet’s ability to access victims’ checking accounts.
The U.S. Postal Inspection Service (USPIS) seized more than $2.9 million from V Internet’s accounts at CommerceWest Bank. Postal inspectors additionally seized property purchased by V Internet’s owner with the proceeds of his fraudulent activity, including five airplanes, a Land Rover, a Dodge Charger, multiple tractors, five all-terrain vehicles and a fire truck.
“CommerceWest ignored warning signs and numerous complaints stemming from unauthorized withdrawals, and now it must pay the price for allowing innocent consumers to be ripped-off by fraudsters,” said Acting U.S. Attorney Stephanie Yonekura of the Central District of California.
“CommerceWest Bank not only failed to comply with its statutory obligation to notify the government of suspicious illegal activity involving consumer fraud,” said Inspector in Charge Gary Barksdale of the USPIS. “The bank also allowed fraudulent activity to continue through its accounts to the detriment of the American consumer.”
The criminal information filed today charges CommerceWest with willfully failing to file Suspicious Activity Reports, as required by the Bank Secrecy Act. The criminal charge will be deferred for two years under an agreement that requires CommerceWest Bank to admit to its wrongdoing, give up any claim to more than $2.9 million previously seized from V Internet’s bank accounts at CommerceWest, and cooperate fully in other civil and criminal investigations.
The department’s civil complaint alleges conduct that violates the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), a law enacted by Congress in 1989 as part of a comprehensive legislative plan to reform and strengthen the banking system and the federal deposit insurance system that protects the public from bank failures and that provides for the United States to recover civil monetary penalties. The department also alleges that CommerceWest Bank violated the civil anti-fraud injunction statute, which allows the government to seek a court order barring continued illegal conduct. According to the terms of the proposed civil consent decree, CommerceWest Bank will be required to pay $1 million to the U.S. Treasury as a civil monetary penalty and to forfeit $1 million to the USPIS Consumer Fraud Fund. CommerceWest Bank will also be required to implement a strict regime of underwriting and monitoring designed to prevent future consumer fraud by third-party payment processors.
The Justice Department’s case is being handled by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch in coordination with the U.S. Attorney’s Office for the Central District of California and with substantial investigative support from USPIS.
Centralia Man Pleads Guilty to Methamphetamine FeloniesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Walter James Henson, 38, of Centralia, Illinois, pled guilty on March 9, 2015, to charges filed against him in an indictment returned by a Federal Grand Jury in November 2014. Henson pled guilty to Possession of Equipment, Chemicals, Products and Materials with the Intent to Manufacture Methamphetamine (on March 5, 2014), in Marion County (Count 1), and Possession of Pseudoephedrine Knowing It Would Be Used to Manufacture Methamphetamine (on March 5, 2014), in Marion County (Count 2). The charges are violations of the federal Controlled Substances Act.
Count 1 carries a maximum penalty of 10 years in prison, a $250,000 fine, and three years of supervised release. Count 2 carries a maximum penalty of 20 years in prison, a $250,000 fine, and three years of supervised release. Both counts require an assessment of $100.
Information leading to the charges against Henson was obtained in an investigation conducted by the FBI, and the Marion County Sheriff’s Office, assisted by the Illinois State Police Methamphetamine Response Team. The case is being handled by Assistant United States Attorney Kit Morrissey.
Carmichaels Man Charged with Damaging Natural Gas Well PadRead the Press Release
PITTSBURGH - A Greene County resident has been indicted by a federal grand jury in Pittsburgh on charges of damage of an energy facility, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on January 27, 2015, named Heath A. Rankin, 33, of Carmichaels, PA, as a defendant.
According to the information presented to the court, on or about March 26, 2014, Rankin damaged the Burchianti Pad, a pad of five natural gas wells operated by Chevron North America Exploitation and Production Company, a division of Chevron USA, Inc.
Rankin made an Initial Appearance in Federal Court on March 5, 2015. An arraignment and detention hearing are set for March 18, 2015, at 9:30 a.m. before Magistrate Judge Maureen P. Kelly. Rankin was ordered detained pending those proceedings.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Career Offender Admits Robbing Meriden BankRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL MASLAR, 58, of Meriden, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of bank robbery.
According to court documents and statements made in court, on September 22, 2014, MASLAR, wearing a pillowcase with holes cut into it over his head, entered the TD Bank on East Main Street in Meriden, approached the teller counter and demanded that bank employees give him cash in $50 and $100 denominations. MASLAR also stated that he had a gun. Bank employees complied with MASLAR’s demands and gave him $5,658. MASLAR took the money, placed it inside a plastic bag and exited the bank. He was arrested shortly thereafter by Meriden Police.
MASLAR has been detained since his arrest on September 22. Judge Shea scheduled sentencing for June 2, 2015, at which time MASLAR faces a maximum term of imprisonment of 20 years.
MASLAR’s criminal history includes two prior federal convictions for bank robbery, as well as convictions for involuntary manslaughter and assault. In March 2003, MASLAR was sentenced in Hartford federal court to 165 months of imprisonment for robbing a bank in Meriden on September 11, 2001. He was released from prison in January 2014.
This matter is being investigated by the Federal Bureau of Investigation and the Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
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(203) 821-3722 [email protected]Burlington Man Convicted in Federal Court for Possession with Intent to Distribute Cocaine BaseRead the Press Release
Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Albert Johnson, 55, of Burlington, Vermont was sentenced on March 6, 2015 by Chief United States District Court Judge Christina Reiss, to 50 months in prison for possession with intent to distribute cocaine base in Vermont. Johnson was also sentenced to 5 years of supervised release following his release from prison.
According to Court records, on March 8, 2014, members of the Burlington Police Department executed a state search warrant at an apartment on College Street in Burlington, Vermont and arrested Albert Johnson, known on the street as “MD.” Johnson was in possession of crack cocaine that he intended to sell in Vermont. At the time Johnson was arrested, he was being supervised by the Office of Vermont Probation and Parole for a 2012 state drug conviction in Vermont.
Johnson was indicted by a federal grand jury on March 27, 2014. He pled guilty to conspiracy to distribute heroin and cocaine base on November 12, 2014. He has been detained in prison since his arrest.
This case was investigated by the Burlington Police Department. The Acting United States Attorney, Eugenia A.P. Cowles, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney Michael L. Desautels of the Office of the Federal Public Defender.
Bronx Drug Trafficker Convicted in Federal CourtRead the Press Release
Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Joe Young, 37, of the Bronx, New York, was sentenced on March 6, 2015 by Chief United States District Court Judge Christina Reiss, to 48 months in prison for conspiracy to distribute both heroin and cocaine base in Vermont. Young was also sentenced to 3 years of supervised release following his release from prison.
According to Court records, on March 8, 2014, special agents with the United States Drug Enforcement Administration (“DEA”) executed a federal search warrant at an apartment at 246 ½ Main Street in Winooski, Vermont and arrested Joe Young, known on the street as “Moe.” Young was in possession of both heroin and crack cocaine that he and others intended to sell in Vermont. The drugs had been brought to Winooski, Vermont by a courier hired by Young who took a bus to Plattsburg, New York. The courier was picked up and transported to Winooski at the direction of Young. At the time Young was arrested, he was on federal supervised release from a prior drug and gun conviction in the Southern District of New York. He was in Vermont without the knowledge or permission of his New York probation officer.
Young was indicted by a federal grand jury on March 20, 2014. He pled guilty to conspiracy to distribute heroin and cocaine base on November 6, 2014. He has been detained in prison since his arrest.
This case was investigated by the DEA. The Acting United States Attorney, Eugenia A.P. Cowles, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney David L. McColgin of the Office of the Federal Public Defender.
Beckley nurse pleads guilty to obtaining drugs by fraudRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Olivia Dixon, 31, of Midway, West Virginia, plead guilty today in federal court in Beckley to obtaining hydromorphone and morphine sulfate by fraud. Dixon, a former nurse at Raleigh General Hospital in Beckley, West Virginia, admitted that on November 10, 2014, she stole pain medications intended for patients, including morphine, for her own personal use.
Dixon faces up to 4 years in prison and a $250,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for June 24, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Angleton Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
HOUSTON – A Houston federal grand jury has returned an indictment charging Stanshelle Renique Gaul with 23 counts of preparing false client tax returns, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI)
“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 IRS and U.S. Attorney’s office will continue their aggressive pursuit of those who are suspected of defrauding 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 March 3, 2015. Gaul surrendered to authorities this morning and made her initial appearance before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m. today.
According to the indictment, Gaul operated a tax return preparation business in the Angleton area. The indictment alleges she prepared dozens of materially false client tax returns for tax years 2007 through 2010. The indictment also alleges she included in these tax returns fraudulent charitable and real estate tax deductions, fictitious employment expenses, false fraudulent child and dependent care expenses for people not known to her clients and bogus “side business” losses in order to generate excessive refunds totaling approximately $285,000.
If convicted, Gaul 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 U.S. Attorney Jimmy Sledge Jr.
Albuquerque Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Reynaldo Griego, 38, of Albuquerque, N.M., was sentenced this morning in federal court to 120 months in prison followed by four years of supervised release for his conviction on methamphetamine trafficking charges.
Griego was arrested on Feb. 28, 2014, on a three-count indictment charging him and co-defendant Danielle Lemos, 33, also of Albuquerque, with conspiracy and distribution of methamphetamine. The indictment alleged that the two codefendants conspired to distribute methamphetamine in Bernalillo County, N.M., in Jan. 2014 and Feb. 2014.
The indictment was superseded on Mar. 26, 2014, to include Lori Salgado, 27, of Rio Rancho, N.M., as a defendant and two additional methamphetamine distribution charges. The two new charges alleged that Griego, Lemos and Salgado distributed methamphetamine on Feb. 11, 2014, and that Salgado possessed methamphetamine with intent to distribute on Feb. 27, 2014.
Griego pled guilty on Sept. 10, 2014, to Count 1 of the indictment which charged him with conspiracy to distribute methamphetamine. In entering the guilty plea, Griego admitted that he agreed to sell methamphetamine with his co-defendants from Jan. 30, 2014 through Feb. 27, 2014, in Bernalillo County, N.M. H
Lemos entered a guilty plea on Sept. 10, 2014, to a felony information charging her with conspiracy to distribute methamphetamine, and was sentenced on March 3, 2015, to 33 months in federal prison followed by three years of supervised release.
Salgado pled guilty on Nov. 5, 2014, to a felony information charging her with conspiracy to distribute methamphetamine. Salgado remains in custody pending her sentencing hearing which is currently scheduled for March 24, 2015.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Shammara Henderson.
9 March 2015
Williamson County Man Charged with Methamphetamine OffensesRead the Press Release
A Williamson County man was indicted on March 3, 2015, for methamphetamine-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Jeremey A. Phillips, a/k/a "Jeremy Phillips," 28, of Marion, is charged in a two-count indictment charging conspiracy to manufacture methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and February 2015, in Williamson, Jackson, and Jefferson Counties. Phillips made his initial appearance in federal court in Benton on March 9, 2015. He is currently being held without bond pending a March 10, 2015, detention hearing.
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 methamphetamine offenses carry a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and Marion Police Department.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Public Employees Indicted for Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that TROY HESTER, 42, of Hartford, and AJMAL JENKINS, 39, of Middletown, have been indicted for tax evasion. HESTER is employed by the Metropolitan District Commission and JENKINS is employed by the State of Connecticut’s Department of Mental Health and Addiction Services and works at the Connecticut Valley Hospital.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had no money withheld from their wages.
The six-count indictment against HESTER alleges that, during the 2008 through 2013 tax years, he paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480.
The four-count indictment against JENKINS alleges that, during the 2009 through 2012 tax years, he paid no federal income taxes on approximately $256,081 in income he received, resulting in a federal tax loss of approximately $46,265.
The indictments were returned by a federal grand jury in New Haven on March 4. HESTER and JENKINS are scheduled to be arraigned later today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.
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(203) 821-3722 [email protected]Two Florida Women Sentenced to Prison for Check Cashing SchemeRead the Press Release
BOISE – Jennifer A. Gallagher, 32, of Margate, Florida, and Danielle M. Cook, 29, of Pembrooke Pines, Florida, were each sentenced to 12 months in federal prison for bank fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Gallagher and Cook to serve three years of supervised release, and to jointly pay $26,500 in restitution. Both women pled guilty on December 18, 2014.
According to the plea agreements, Cook and Gallagher admitted that, between August 9th and 13th, 2014, they traveled to the District of Idaho to participate in a scheme to defraud financial institutions by cashing stolen checks. In particular, Cook and Gallagher admitted to obtaining stolen checks and driver's licenses, altering their appearances, including by the use of wigs, such that they would closely resemble the photographs on the stolen driver's licenses, then cashing the stolen checks through the far lane of numerous banks in the Treasure Valley. At least twelve such checks were cashed by Cook and Gallagher.
The case was investigated by the FBI, the Ada County Sheriff's Office, the Meridian Police Department, and the Boise Police Department.
Total Petroleum Puerto Rico Corp. Agrees to Spend $1.6 Million to Improve Leak Detection in at Least 125 Gas Stations Across Puerto Rico and U.S. Virgin IslandsRead the Press Release
A settlement announced today between the U.S. and Total Petroleum Puerto Rico Corp. (Total Puerto Rico) resolves Resource Conservation Recovery Act (RCRA) violations alleged at 31 gas stations in Puerto Rico and four gas stations in the U.S. Virgin Islands that contain underground storage tanks (USTs) owned by Total Puerto Rico. These USTs typically hold large quantities of gasoline and can cause significant environmental damage if allowed to leak. Total Puerto Rico has agreed to pay a $426,000 civil penalty, implement compliance measures valued at approximately $1 million and undertake a supplemental environmental project (SEP) consisting of a centralized monitoring system estimated to cost approximately $600,000.
In the complaint filed simultaneously with the lodging of the consent decree, the U.S. alleged that Total Puerto Rico, as an owner of the USTs at the gas stations, violated RCRA and the Puerto Rico Underground Storage Tank Control Regulations (PRUSTR) by failing to report and investigate suspected leaks, monitor for leaks; provide adequate protection against corrosion and overflows, adequately secure dispensers and lines against tampering when facilities were temporarily closed, adequately secure monitoring wells against tampering and maintain records of release detection monitoring.
This settlement incorporates provisions consistent with the U.S. Environmental Protection Agency’s Next Generation enforcement efforts, which focus on increasing compliance with environmental regulations by combining the use of advanced technologies, such as pollution detection systems and information technologies, with traditional compliance measures. The centralized monitoring component of today’s agreement is a Next Generation technology that will enable Total Puerto Rico to rapidly identify and respond to actual or potential gas leaks at its gas stations with actively operating USTs, each of which will be equipped with on-site electronic release detection monitoring equipment that will be enhanced with the Next Generation capability to transmit monitoring data to one central location on a 24/7/365 basis.
“This settlement will require Total Puerto Rico to address the risk of gas leaks comprehensively by installing advanced electronic release detection monitoring equipment in all gas stations at which Total owns actively operating USTs,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The settlement also obligates Total Puerto Rico to install state-of-the art centralized monitoring technology, a Next Generation tool that will enable the company to provide around-the-clock surveillance from a single location for over one hundred gas stations.”
“Leaking underground petroleum tanks are a serious problem because they can contaminate groundwater with pollutants such as benzene, which is known to cause cancer,” said Regional Administrator Judith Enck for EPA. “This agreement includes an innovative centralized monitoring system, which will protect the environment by helping to ensure that the underground tanks at many gas stations across Puerto Rico and in the U.S. Virgin Islands will now be properly monitored and maintained.”
Total Puerto Rico will install, or upgrade to, a fully automated electronic release detection monitoring system at 137 facilities with Total-owned USTs in active operation and will operate the systems for at least three years. This compliance measure, valued at approximately $1 million, will connect lines with probing sensors within the USTs to an on-site computer console unit that has audible and visible alarms capable of alerting nearby gas station personnel of gas leaks and other potentially dangerous events. The obligation to install automated release detection monitoring systems will extend to any additional facilities with actively operating USTs acquired by Total Puerto Rico after the date of lodging of the consent decree. In addition, Total Puerto Rico’s voluntary undertaking of a SEP – the implementation, operation and maintenance of a centralized monitoring capability estimated to cost approximately $600,000 – will connect at least 125 of the facilities with electronic release detection monitoring systems to a central location. Total Puerto Rico will also provide quarterly reports to EPA regarding its operation of these systems and will be required to provide information regarding their operation upon EPA’s request.
This is the second judicial settlement in Puerto Rico requiring a defendant to implement company-wide automated electronic release detection with a centralized monitoring capability. A settlement in 2011 with Chevron Puerto Rico covered over 140 gas stations for a period of five years. With today’s proposed settlement with Total Puerto Rico, more than 250 gas stations throughout Puerto Rico will have electronic release detection equipment and centralized monitoring.
The settlement is subject to a 30-day public comment period and is conditioned upon approval by the U.S. District Court before becoming final.
Three Southern Illinois Residents Charged with Methamphetamine OffensesRead the Press Release
Three Southern Illinois residents were indicted on March 3, 2015, for methamphetamine-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
John G. Haslett, 40, of Willisville, Russell A. Stokes, 23, of Benton, and Michael A. Boyt, Jr., 19, of Marion, are charged in a three-count indictment charging conspiracy to manufacture methamphetamine. Haslett and Stokes are also charged with one count of possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine The indictment alleges that the offenses occurred between 2013 and January 2015, in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Stokes made his initial appearance in federal court in Benton on March 9, 2015. He is currently being held without bond pending a March 10, 2015, detention hearing. Haslett and Boyt, Jr. are scheduled to make their initial appearances in federal court on March 16, 2015.
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 methamphetamine offense carries a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
Assistant United States Attorney Amanda A. Robertson will prosecute the case.
Three New York City Men Plead Guilty to Possession of Counterfeit Credit CardsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that 3 New York City men pleaded guilty today in United States District Court in Harrisburg, before Senior U.S. District Court Judge William J. Caldwell to charges they possessed 62 counterfeit credit cards.
According to United States Attorney Peter Smith, Danillo Vargas, age 26, Jeriel Delosangeles, age 25, and Miguel Almonte, age 22, all from the Bronx, NY, pleaded guilty to an Indictment in July of 2014 charging them with one count of possession of 15 or more counterfeit or unauthorized access devices.
The trio was arrested on November 19, 2013, following a PA State Police traffic stop for speeding on Route 30 near Hellam Township, York County. A consent search of the defendants’ vehicle yielded 26 counterfeit Mastercard, American Express and Visa credit cards plus a counterfeit Florida driver’s license. A subsequent search of the vehicle pursuant to a search warrant yielded another 36 counterfeit credit cards and a counterfeit Connecticut driver’s license. The drivers licenses bore the photographs of Almonte and Vargas. Fifty-Four of the 62 counterfeit credit cards were in Almonte’s name. The government’s investigation revealed no charges had been incurred on any of the counterfeit credit cards.
No date was set by Judge Caldwell for sentencing.
The investigation was conducted by the U.S. Secret Service and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Felons Sentenced to Prison for Kankakee Drug and Firearms OffensesRead the Press Release
Urbana, Ill. B Two men with prior felony convictions that designated them as career offenders, cousins Jermaine R. Speed and Rico J. Speed were sentenced today to 18 years in federal prison, and a third man, Charles D. Nance, was sentenced to nearly 10 years in prison, for illegal possession of firearms and distribution of crack cocaine, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. The men have been in the custody of the U.S. Marshals Service since their arrests in September 2014.
Jermaine R. Speed, 32, of the 900 block of Merchant Street, Kankakee, was ordered to serve 18 years (216 months) in prison. According to the government’s factual basis presented in court, between June 2010 and October 2011, Speed illegally sold crack cocaine to a confidential informant on four separate occasions. Speed has four prior felony drug convictions in Illinois.
Rico J. Speed, 27, of the 1100 block of E. Court Street, Kankakee, a cousin of Jermaine Speed, was also sentenced to 18 years (216 months) in prison. From July of 2011 to February of 2013, Speed illegally sold four different firearms – a .38 caliber revolver, a .32 caliber revolver, a .45 caliber semi-automatic pistol, and a .12 gauge shotgun – to a confidential informant, according to court records. During that same time frame, Rico Speed also sold the confidential informant over 28 grams of crack cocaine. Speed has prior Illinois convictions for possession of a controlled substance with the intent to deliver and delivery of a controlled substance.
Charles D. Nance, 42, of the 1400 block of N. 11th Avenue, Newton, Iowa, was ordered to serve 117 months (9 years, 9 months) in prison for drug and weapon charges. On two occasions, on August 6 and 25, 2010, Nance sold crack cocaine to a confidential informant, according to court documents. At the time of the August 25 drug sale, Nance was armed with a 9 millimeter semi-automatic pistol. On September 9, 2010, agents seized the 9 millimeter pistol, as well as a .45 caliber semi-automatic pistol and more than 100 rounds of ammunition, from Nance’s Kankakee apartment. Nance was ordered to forfeit the firearms and ammunition. Nance has prior felony convictions for unlawful possession of a controlled substance, unlawful delivery of a controlled substance, and maintaining a drug house.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The cases are being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Kankakee Area Metropolitan Enforcement Group, Chicago Police Department, Illinois State Police, and Kankakee County Corrections assisted with the initial arrests in September 2014.
Taylor County, WV man convicted of possession of child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry V. Austin, Sr., 50, of Grafton, West Virginia, was convicted in federal court of possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced today.
Austin was discovered in possession of multiple images and videos of child pornography in Barbour County, West Virginia during a West Virginia State Police investigation. He pled guilty to one count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Suspended Attorney Sentenced to Five Years in Prison for Using Law Firm to Launder Drug MoneyRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of ROBERT DAVID BOEDIGHEIMER, 52, to five years in prison. BOEDIGHEIMER was convicted by a jury on June 17, 2014, after a 12-day trial, of using his law firm to launder drug money, lying to investigators, and encouraging his brother-in-law to also lie to federal investigators. The defendant was sentenced on March 9, 2015, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“Lawyers are officers of the court,” said Assistant United States Attorney Steven L. Schleicher. “This sentence is a step toward restoring trust in the legal profession by assuring the public that nobody gets special treatment because of their profession. Those who are sworn to uphold the law will be held accountable if they violate it. This case is the result of the hard work and dedication of the agents who worked tirelessly to see justice done.”
As proven at trial, BOEDIGHEIMER had his own personal injury practice since 1995. The law firm and the defendant began to experience financial problems in 2006. The defendant fell behind on several loans, bills, and taxes, and also had difficulty meeting payroll obligations for his law firm. In addition to the financial problems at the firm, the defendant spent lavishly on himself, frequent gambling and expensive travel. He also lived in a high-end home near a golf course in Stillwater, Minn.
As proven at trial, BOEDIGHEIMER’S brother-in-law, Brandon Lusk, was a distributor of high- end marijuana in and around Rochester, Minn. The defendant approached Lusk for a cash loan so that he could maintain his lifestyle. Lusk agreed to provide many loans to BOEDIGHEIMER, on the condition that the defendant repay the loans, plus interest, in checks issued from BOEDIGHEIMER’S law firm. Ultimately, BOEDIGHEIMER created a “no-show” job for Lusk at the law firm, which paid Lusk $48,000 per year. The defendant provided a box of business cards to Lusk listing him as an “investigator” for the firm.
As proven at trial, Lusk’s no-show job was entirely paid for through drug proceeds that Lusk funneled to BOEDIGHEIMER, and which the defendant laundered through his law firm. Between March 26, 2010 and January 28, 2011, nine payroll cash advances were provided to the defendant by Lusk, ranging from $5,000 to $10,000 each, and totaling approximately $55,000. In exchange, Lusk received payroll checks from the law firm. In March 2011, Lusk lost his source of income as a marijuana distributor when Richard Kay, who was Lusk’s supplier, discovered that he was under investigation. Lusk and a marijuana distribution associate approached the defendant for help in obtaining legal representation. Lusk was eventually interviewed by the US Attorney’s office, before which BOEDIGHEIMER advised Lusk not to tell investigators about the money laundering arrangement between the two of them. Lusk then withheld information from investigators about his employment and the disposition of the drug proceeds. Lusk was ultimately sentenced to 30 months imprisonment for distribution of marijuana and money laundering.
This case is the result of an investigation by the Internal Revenue Service – Criminal Investigation Division, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, Southeast Minnesota Narcotics & Gang Task Force, and Wabasha County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Steven L. Schleicher.
Defendant Information: ROBERT DAVID BOEDIGHEIMER, 52
Stillwater, Minn.
Convicted: • Money Laundering Conspiracy, 1 count
• Money Laundering, 1 count
• False Statement, 1 count
Sentenced: • Five years in prison
• Three years supervised releaseSt. Louis Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
St. Louis, MO – MELVIN L. WILSON pled guilty to a charge involving transporting a minor under the age of 18 to travel to Illinois to engage in prostitution.
According to court documents, during an investigation into a report of a missing minor female, it was determined that in early 2013 Melvin Wilson began posting ads for the minor victim on www.backpage.com, which advertised her availability to perform sex acts in exchange for money. The investigation also revealed that Wilson verbally, physically and sexually abused her while she stayed with him and worked as a prostitute. He also provided her with marijuana alcohol and ecstasy pills.
Wilson, of St. Louis, Missouri, entered a guilty plea to one felony count of interstate transportation of an individual with the intent to engage in prostitution. He appeared before United States District Court Judge Henry Autrey. Sentencing has been set for June 8, 2015.This charge carries a penalty range of up to 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the Madison County Illinois Sheriff’s Department.
Spearfish Woman Sentenced for Theft of Public MoneyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spearfish, South Dakota, woman convicted of Theft of Public Money was sentenced on March 3, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Linda Lee Anderson, age 67, was sentenced to 1 year of unsupervised probation, ordered to pay $43,856 in restitution, and a $25 special assessment to the Federal Crime Victims Fund.
Anderson pled guilty to the charge on November 19, 2014. The conviction stems from Anderson stealing and converting to her own use, money and property of the United States, by using her position as a Representative Payee in connection with benefits administered by the United States Social Security Administration between 2010 and 2012.
This case was investigated by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Seattle Man Pleads Guilty to International Parental KidnappingRead the Press Release
A Seattle man who was the subject of an international manhunt last fall, pleaded guilty today in U.S. District Court in Seattle to International Parental Kidnapping, announced Acting United States Attorney Annette L. Hayes. JEFFREY FORD HANSON, 46, was taken into custody in late October 2014, on the South Pacific island of Niue, 1,500 miles northeast of New Zealand. HANSON had been sought by law enforcement since September 12, 2014, when he was charged with international parental kidnapping for leaving Seattle with his son in violation of a court approved parenting plan. U.S. District Judge James L. Robart scheduled sentencing in the case for June 8, 2014.
According to records filed in the case, on July 17, 2014, HANSON’s son arrived in Seattle with his mother’s permission to visit for the summer months. HANSON knew he was required to return the child to Hazelton, Pennsylvania prior to the start of school in early September 2014. On August 30, 2014, unbeknownst to the mother, HANSON departed the Seattle area aboard his sailboat, the Draco, with the child onboard and set sail across the Pacific Ocean. When the boy failed to return to Pennsylvania before school started, the boy’s mother alerted law enforcement. The Coast Guard and law enforcement agencies throughout the Pacific Rim were then asked to be on the lookout for the boat and the child.
According to the FBI, the Niue Police arrested HANSON on Wednesday, October 29, at his sailboat which was docked on Niue shores in violation of Niue immigration and customs laws. The Niue police knew of the warrant for Hanson's arrest because the FBI’s Legal Attaché office in Canberra, Australia, passed the missing person and wanted fliers to the Pacific Transnational Crime Coordination Center (PTCCC), a multi-national law enforcement network, of which the Niue Police Department is a member. Niue police publicized the search for Hanson in the country and alert members of the public provided the crucial tip that led authorities to the boat. The 9-year-old boy was safely returned to his mother in Pennsylvania.
International Parental Kidnapping is punishable by up to three years in prison. Under the terms of the plea agreement, prosecutors will recommend HANSON be sentenced to time served – approximately seven months in prison. Judge Robart is free to impose any sentence up to the maximum allowed by law.
The investigation was led jointly by the FBI’s Seattle Safe Streets Task Force (SSSTF), whose many Task Force Officers include members of the Seattle Police Department Major Crimes Task Force. The Hazleton Police Department, the FBI’s Philadelphia and Los Angeles field offices, the Port of Seattle Police Department, the U.S. Coast Guard, and the National Center for Missing and Exploited Children, collaborated on the investigation from the beginning. The FBI also values the tremendous assistance of the New Zealand Police, New Zealand Customs Service, and Immigration New Zealand.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Steven Masada.Scottsdale Chiropractor Sentenced to 30 Months Imprisonment for Filing More than $6 Million in False Tax Refund ClaimsRead the Press Release
PHOENIX– Today, Adrianne Marta Frazer, 62, a chiropractor practicing in Scottsdale, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 30 months in prison and ordered to pay $703,478 in restitution to the federal government. Frazer was previously found guilty by a federal jury of five counts of filing false and fictitious claims for tax refunds.
Evidence at trial showed that Frazer knowingly filed false tax returns utilizing a common scheme known as the Form 1099-OID scheme. Although many of Frazer’s tax returns were immediately rejected by the Internal Revenue Service, one was accepted, resulting in the issuance of a $593,651 refund. Within days of getting the refund check, Frazer began spending and transferring the money. Frazer also solicited others to attend seminars that taught participants on how to use the 1099-OID scheme and kept filing false returns after being put on notice that the Form 1099-OID scheme was fraudulent.
The investigation in this case was conducted by the Internal Revenue Service - Criminal Investigation. The prosecution was handled by Howard Sukenic and Monica Edelstein, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1836-PHX-GMS
RELEASE NUMBER: 2015-022_Frazer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Russian National Known as “Joga” Pleads Guilty to Online Fraud SchemeRead the Press Release
BOSTON – A Russian man known by the online nickname “Joga,” pleaded guilty today in U.S. District Court in Boston to participating in a scheme to acquire more than $400,000 in consumer goods and stored value cards using stolen credit and debit card information.
Alexey Svetlichnyy, 32, a Russian citizen living in Tewksbury, Mass., pleaded guilty to an Information charging him with one count of wire fraud conspiracy. U.S. District Court Judge Allison Dale Burroughs scheduled sentencing for June 3, 2015. Svetlichnyy was charged by complaint in May 2014.
As alleged in the charging document, Svetlichnyy, and others, obtained stolen credit and debit card data and related accountholder information over online forums dedicated to trafficking in stolen information, including Carder Planet, Vendorsname, and Direct Connect.
Svetlichnyy, and his co-conspirators, used the stolen data to make online purchases of numerous goods, including, Apple iPads, Samsung cell phones, laptop computers, servers, computer processors, scuba diving equipment, high-end camera lenses, and water filtration equipment. They also used the stolen data to make online purchases of stored value cards issued by or on behalf of American Express, Visa, Budget Rental Car, Frontier Airlines, Macy’s, and other retailers.
When making these online purchases, Svetlichnyy, and others, frequently used the names and billing addresses associated with the stolen data, but then shipped the goods and cards to addresses that Svetlichnyy controlled.
Svetlichnyy, and others, advertised over Russian language social networks to recruit individuals to receive the stolen consumer goods and stored value cards. Svetlichnyy, and others, paid the individuals to re-ship the items to addresses in Chelmsford and North Reading, Mass., among other places, where Svetlichnyy had opened private commercial mailboxes in the name of a Delaware company, Micaxr, LLC (Micaxr).
From March 2010 to October 2013, Svetlichnyy sold the stolen consumer goods and stored value cards for more than $427,000 on eBay. Svetlichnyy, and others, wired a portion of the criminal proceeds overseas, including to Russian bank accounts.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Ortiz also thanked the U.S. Secret Service’s Cyber Investigative Section, and the Tewksbury and Hickory Hill, Illinois, Police Departments for their involvement in the investigation that led to today’s plea. The case is being prosecuted by Seth B. Kosto of Ortiz’s Cybercrime Unit and Eric Christofferson of Ortiz’s Economic Crimes Unit.
Rochester Man Sentenced on Drug Trafficking and Firearms ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Roger Alexander, 42, of Rochester, NY, who was convicted of possession of marijuana with intent to distribute and possession of a firearm in furtherance of a drug trafficking offense, was sentenced to 144 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on September 7, 2012, officers of the Rochester Police Department executed a search warrant in the upstairs apartment at 1220 Clifford Avenue in Rochester. As officers entered the residence, they heard a window breaking and saw a person throwing an object from the window on the second floor. Officers searching the residence found a loaded handgun among broken glass on the ground outside. Alexander was arrested as he exited the bathroom of the residence. The defendant appeared to have fresh cuts and was bleeding from his forearms. Officers also arrested co-defendant Edward Jackson inside.
During the search, officers found and seized nearly a pound of marijuana and over $3,000 in United States currency. Officers also located multiple scales typically used to weigh controlled substances and ammunition in varying quantities and calibers, including .45 caliber and .38 caliber.
Co-defendant Edward Jackson was sentenced to 90 months in prison terms for his involvement in the conspiracy.
The sentencing is the result of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rochester Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Willie R. Wynn, 49, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of heroin with intent to distribute and possession of a firearm while being a previously convicted felon. The drug charge carries a maximum penalty of 30 years in prison, a fine of $2,000,000 or both. The firearms charge carries a maximum penalty of 10 years in prison, a fine of $250,000.00, or both.Assistant U.S. Attorney Charles E. Moynihan who is handling the case, stated that on September 24, 2014, Rochester Police officers were investigating a stolen bicycle report which had occurred in the area of Franklin Street and Pleasant Street in Rochester. During the investigation, officers encountered Wynn near the Eastman School of Music at the intersection of East Main Street and Gibbs Street. The defendant matched the description given to the police of the person who took the bicycle so officers attempted to stop and speak with him. Wynn rode away from officers on his bicycle, forcing them to chase him. As officers caught the defendant and were taking him into custody, he fell to the ground. The officers saw a silver Cobra Enterprises CA-380, semi-automatic pistol on the ground next to Wynn’s waist. The handgun was loaded with six rounds of ammunition. Officers searched the defendant and found 20 individual bags of heroin in the pocket of his pants. Wynn was previously been convicted of Attempted Criminal Sale of a Controlled Substance in the Third Degree in 1991 and Manslaughter in the Second Degree in 1995.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for June 3, 2015 at 11:00 a.m. before Judge Wolford.
Ray Mubarak, Dianna Mubarak, and Blythe Bond Sanders, III Arrested and Arraigned in Bank Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. - Ray M. Mubarak, 54, of Knoxville, Tenn., Dianna Mubarak, 52, of Knoxville, Tenn., and Blythe Bond Sanders, III, 35, of Norris, Tenn., were arrested in Knoxville today by federal agents of the Internal Revenue Service - Criminal Investigation (IRS - CI) and Federal Bureau of Investigation (FBI) on arrest warrants based upon charges involving conspiracy and bank fraud.
Following their surrender to federal authorities, an initial appearance was held in U.S. District Court in Knoxville before the Honorable H. Bruce Guyton, U.S. Magistrate Judge, at which time the indictment was unsealed and the defendants were apprised of the charges. All three pleaded not guilty to the charges. Trial has been set for May 5, 2015, in U.S. District Court, Knoxville.
The details of the charges are outlined in the 39-page indictment which is on file with the U.S. District Court for the Eastern District of Tennessee at Knoxville.
The indictment alleges that Ray M. Mubarak, Dianna Mubarak, and Sanders engaged in a conspiracy to defraud five banks spanning from 2007 through 2011. The total face value of the fraudulent loans exceeded $6.7 million. Ray M. Mubarak was also charged with multiple counts of engaging in unlawful monetary transactions greater than $10,000 in bank fraud proceeds.
The investigation leading to these charges was conducted by IRS - CI and the FBI. Assistant U.S. Attorney Matthew T. Morris represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Pine Ridge Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on March 2, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jonathan Lee Twiss, age 31, was sentenced to 10 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Twiss pled guilty to the charge on November 20, 2014. The conviction stems from Twiss forcibly opposing an Oglala Sioux Tribe trooper by attempting to flee from him and refusing to obey commands. The incident happened near Pine Ridge on March 20, 2014.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Twiss was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Woman Admits She Exploited Six Year Old and InfantRead the Press Release
PHILADELPHIA - Christine Yoder, 32, of Philadelphia, PA, pleaded guilty today to charges in a case of child exploitation that involved the alleged sexual abuse of a six year old and a 16 month old. Yoder was charged with two counts of employing a child to produce images of the child engaged in sexually explicit conduct and two counts of distributing material involving the sexual exploitation of children. A sentencing hearing is scheduled for June 10, 2015.
In May of 2014, Yoder sent a photograph to an undercover FBI agent of a 6-year-old (“Minor #1”), which depicted that child engaging in sexually explicit conduct. Thereafter, Yoder offered to fly Minor #1 to Detroit for sexual activity. Yoder also produced pornographic photographs of a 16-month old.
Yoder faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison. She also faces a fine of up to $1 million, a special assessment of $400, and a mandatory minimum five-year term of supervised release up to a lifetime of supervised release.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.