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6 March 2015
White Plains, New York Woman Charged with Robbery of Glen Rock Savings BankRead the Press Release
NEWARK, N.J. – A White Plains, New York, woman is scheduled to appear in court today in connection with the robbery of Glen Rock Saving Bank on Feb. 18, 2015, U.S. Attorney Paul J. Fishman announced.
Michelle C. Cantatore, 51, is charged by complaint with one count of bank robbery. She is scheduled to appear before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
On Feb.18, 2015, the Glen Rock Savings Bank was robbed by someone wearing sunglasses, a black coat, white boots and carrying a handbag. The robber brandished what appeared to be a long-barreled handgun and demanded money, threatening to shoot and kill the bank employees. When the robber was not satisfied with the money she received from the bank drawer, she directed the bank employees to enter the vault and give her more money. The robber then fled. About a block away from the bank, in the direction the robber fled, law enforcement recovered a paintball gun matching the description of the handgun used in the robbery wedged next to a pole.
FBI agents arrested Cantatore at the Borgata Hotel and Casino in Atlantic City, New Jersey, on March 5, 2015.
The charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, FBI Newark; the Glen Rock Police Department, under the direction of Chief Frederick P. Stahman; the N.J. State Police, under the direction of Col. Rick Fuentes, and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, and the New York office of the FBI with the investigation leading to the arrest and charge. He also thanked the Paramus, Paterson, Roxbury and Wayne police departments for their roles.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Special Assistant U.S. Attorney Jillian J. Reyes of the U.S. Attorney’s Office in Newark.
14-079
Defense counsel: TBD
Cantatore, Michelle Complaint
Week in Review –south BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- REGIS OWENS, 30, of South Bend, Indiana pled guilty to the felony offense of knowingly and intentionally possessing with intent to distribute a mixture or substance containing cocaine base. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for June 2, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
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.
Week in Review –hammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Edward Olszewski, 67, of Hobart, Indiana pled guilty today before U.S. District Judge Joseph Van Bokkelen to the felony offense of Transporting for the Purpose of Prostitution in violation of 18 U.S.C. 2421. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and Homeland Security Investigations. Sentencing has been set for May 19, 2015. This case is being prosecuted by Assistant United States Attorneys Jill Koster and Tom Ratcliffe.
- Dominic Naize, 31, of Gary, Indiana, pled guilty to the felony offense of possessing a firearm as a felon before US District Court Judge Van Bokkelen, who accepted the plea of guilty at the hearing. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Gary Police Department. The sentencing has been set for May 21, 2015, at 1:30 pm. This case is being prosecuted by Assistant United States Attorney Dean Lanter.
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.
Week in Review –fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Stephen E. Schaadt, 60, of Fort Wayne, Indiana pled guilty to the felony offense of bank fraud. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
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.
DISPOSITIONS
- Harold Collins, 50, of Oakwood, Ohio was sentenced to 24 months imprisonment, time served, with 3 years supervised release after pleading guilty to the felony offense of knowingly or intentionally conspiring to distribute and possession with intent to distribute heroin. According to documents filed in this case, from on or about June 22, 2010, and continuing until on or about July 15, 2010, Collins did knowingly and intentionally conspire, combine, confederate and agree to distribute and possess with the intent to distribute heroin. This case was the result of an investigation by the Drug Enforcement Administration, and the Fort Wayne Police Department Vice and Narcotics Division. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Julian Zamora, 41, of Defiance, Ohio was sentenced to 140 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of knowingly or intentionally distribution 100 grams or more of heroin. According to documents filed in this case, on or about July 15, 2010, Zamora did knowingly and intentionally distribute 100 grams or more of heroin. This case was the result of an investigation by the Drug Enforcement Administration and the Fort Wayne Police Department, Vice and Narcotics Divison. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Laurence Rothschild, 62, of Harlan, Indiana was sentenced to 3 years probation and ordered to pay $60,782.10 in restitution after pleading guilty to the felony offense of theft of government money. According to documents filed in this case, on or about May 2010 and continuing until on or about January 2014, Rothschild did knowingly and willfully convert to his own use money, more than $1,000.00 belonging to the Social Security Administration. This case was the result of an investigation by the Social Security Administration and the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Kelvin B. Walker, 50, of Fort Wayne, Indiana was sentenced to 1 year probation and ordered to pay $39,350.70 in restitution after pleading guilty to the felony offense of filing a false claim. According to documents filed in this case, on or about April 18, 2011, Walker did knowingly make and present, and caused to be made and presented to the IRS, a false, fictitious and fraudulent IRS tax return. This case was the result of an investigation by the Internal Revenue Service, Treasury Inspector General for Tax Administration, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
Two Toledo-Area Men Indicted for Stealing $1 Million through Loan-Modification SchemeRead the Press Release
Two Toledo-area men were indicted for wire fraud related to stealing more than $1 million from hundreds of people through a fraudulent loan-modification scheme, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Indicted are Jason J. Keating, 36, of Toledo, and Christopher J. Howder, 37, of Perrysburg. They worked at Making Home Affordable USA (MHAUSA) from 120 10th Street in Toledo, where Keating was self-described president and Howder was the self-described underwriting manager.
The company used various names but homeowners were told MHAUSA had a very high rate of success and that customers could achieve modified interest rates as low as 2 percent, according to the indictment.
Prospective participants were told there was a flat fee for service, generally between $495 and $795. Participants were told to stop making monthly mortgage payments to their lenders and instead to pay a percentage of their mortgage to MHAUSA, according to the indictment.
Participants were told MHAUSA would hold these payments in a “stimulus reserve” account to demonstrate the participants could reliably make payments, and that once the loans were modified, the money would be turned over to the lenders, according to the indictment.
The money obtained through the fraud was spent on concession at professional sports venues, restaurants, cash withdrawals, gentlemen’s clubs, a tanning salon Las Vegas hotel, a jewelry store and a lingerie store, according to the indictment.
“These defendants took $1 million from people struggling to hold onto their homes,” Dettelbach said.
“They used money obtained through fraud to pay for expensive restaurants and vacations,” Anthony said.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo, Ohio and the Department of Housing and Urban Development – Office of Inspector General. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two San Francisco International Airport Security Screeners Charged in Bribery and Drug Smuggling SchemeRead the Press Release
SAN FRANCISCO – Two San Francisco International Airport security screeners were among the three individuals arrested and arraigned today on charges of bribery and drug smuggling, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David Johnson, Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano, and Transportation Security Administration Office of Inspection Special Agent in Charge Regan Fong. A federal complaint charging the three individuals with drug smuggling and bribery-related charges was unsealed this morning.
According to the complaint, Claudio Rene Sunux, 30, of San Francisco, and Amanda Lopez, 27, of South San Francisco, were security screeners contracted with the Transportation Security Administration. In exchange for an offer of money from Anibal Giovanni Ramirez, 28, of San Francisco, Sunux and Lopez agreed to allow pounds of methamphetamine to be smuggled in carry-on luggage through the security checkpoint at SFO. Ramirez, Sunux, and Lopez coordinated the operation, in part, through messages on Facebook.
All three defendants, Sunux, Lopez, and Ramirez, are charged with conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841. In this case, violation of the statute carries a mandatory minimum of ten years and can result in a life sentence and a maximum fine of $10 million. The security screeners, Sunux and Lopez, also are charged with agreement to receive a bribe by a public official, in violation of 18 U.S.C. § 201(b)(2), while Ramirez is charged with offering to bribe a public official, in violation of 18 U.S.C. § 201(b)(1). For these offenses, the maximum term of imprisonment is 15 years, and the maximum fine is $250,000 or three times the monetary equivalent of the thing of value. Conviction for the bribery-related charges also may result in disqualification from holding any office of honor, trust, or profit in the United States.
A complaint contains only allegations. Sunux, Lopez, and Ramirez, as with all defendants, must be presumed innocent unless and until proven guilty. In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Sunux and Lopez are scheduled to appear Monday, March 9, 2015 before U.S. Magistrate Judge Maria-Elena James for identification of counsel. Ramirez is scheduled to appear before Magistrate Judge James on Wednesday March 11, 2015 for a detention hearing. All three defendants currently are in federal custody.
Adam Wright and Jeffrey Shih are the Assistant U.S. Attorneys prosecuting the case, with the assistance of Rawaty Yim and Yanira Osorio. The investigation of Sunux, Lopez, and Ramirez has involved officers and agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Transportation Security Administration Office of Inspection, and the Oakland Police Department. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Two Lynn Men Plead Guilty to Trafficking Crack CocaineRead the Press Release
BOSTON – Two Lynn men have pleaded guilty to federal charges related to their trafficking crack cocaine.
Jarmahl Sutson, a/k/a “Mahl,” and Nathaniel Freeman, a/k/a “Fatz,” both of Lynn, pleaded guilty to conspiring to distribute and distributing crack cocaine. Suton pleaded guilty on March 4, 2015 and Freeman pleaded guilty on Feb. 20, 2015. U.S. District Judge William G. Young scheduled Freeman’s sentencing for May 26, 2015, and Sutson’s sentencing for June 10, 2015. Both defendants were charged in the same indictment in August 2014.
At the change of plea hearing, Sutson admitted responsibility for distribution of over 70 grams of cocaine base. Freeman admitted responsibility for distribution of over 30 grams of cocaine base.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case was part of Operation Whiplash, an investigation of several street gangs in and around Lynn and Revere. Over the past two years, Operation Whiplash has resulted in federal and state charges against 47 leaders, members, and associates of gangs, including Money Over Broken Bitches (MOBB), the Crips, and Deuce Boyz in Lynn and the Bloods in Revere. The investigation resulted in the seizure of more than 10 firearms and large amounts of crack and other drugs.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief Kevin F. Coppinger of the Lynn Police Department, made the announcement. Operation Whiplash was investigated by members of the FBI’s North Shore Gang Task Force, which includes members of the FBI; Massachusetts State Police; Essex County Sheriff’s Office; and Chelsea, Lynn and Revere Police Departments. The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Peter K. Levitt of Ortiz’s Organized Crime and Gang Unit.
Two Found Guilty in Scheme That Bilked Insurance Plans for More Than $50 Million of Unneeded Medical ProceduresRead the Press Release
SANTA ANA, California –A federal jury has convicted two Southern California residents in connection with a scheme to defraud union and private health insurance programs by submitting bills for more than $71 million – and receiving over $50 million in payments – for medically unnecessary procedures performed on insurance beneficiaries who received free or discounted cosmetic surgeries.
A large number of the fraudulent claims were submitted to the International Longshore and Warehouse Union and Operating Engineers Union health insurance plans. Other victim insurers included Aetna and Anthem.
The two defendants found guilty yesterday are:
Theresa Fisher, 45, of Tustin, who was found guilty of five counts of mail fraud; and
Lindsay Hardgraves, 30, of San Pedro, who was found guilty of two counts of mail fraud.
The evidence presented during a six-day trial showed that members of the scheme lured insured “patients” to a surgery center in Orange with promises that they could use their union or PPO health insurance plans to pay for cosmetic surgeries, which are generally not covered by insurance. The surgery center was known at various times as Princess Cosmetic Surgery, Vista Surgical Center, and Empire Surgical Center.
Marketers such as Hardgraves referred “patients” to the surgery center, where they were told they could receive free or discounted cosmetic surgeries if they underwent multiple, medically unnecessary procedures that would be billed to their union or PPO health care benefit program. Fisher was a consultant at the surgery center who scheduled procedures after telling the “patients” about the free cosmetic procedures they could receive and coaching them to fabricate or exaggerate symptoms so that their medical procedures would be covered by their insurance.
The unnecessary procedures typically performed on the “patients” were endoscopies (usually sophagogastroduodenoscopies, or EGDs), colonoscopies and cystoscopies. Once the health care benefit program paid the claims, the patients were given free or discounted cosmetic surgeries, including “tummy tucks,” breast augmentations and liposuction. In some cases, the surgery center simply billed cosmetic procedures (such as tummy tucks) as if they were medically necessary procedures (such as hernia surgeries).
Fisher and Hardgraves are scheduled to be sentenced by United States District Judge Josephine L. Staton on May 29.
A third defendant in this case – Vi Nguyen, 31, of Placentia, another consultant at the surgery center – pleaded guilty in January to four counts of mail fraud and faces sentencing before Judge Staton on July 10.
At sentencing, each defendant faces a statutory maximum sentence of 20 years in federal prison for each count of mail fraud.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation, the United States Department of Labor – Office of Inspector General, the United States Department of Labor – Employee Benefits Security Administration, and the Office of Personnel Management – Office of Inspector General.
Release No. 15-023
Toledo Man Charged with Filing False Tax ReturnsRead the Press Release
An indictment was filed charging John J. Manore, III, 58, of Toledo, with filing false tax returns, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Troy Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office
“With the April 15th tax deadline looming, it is important for the public to have confidence that when they pay their taxes, their neighbors and competitors will do the same,” Stemen said. “Filing false and fraudulent federal tax returns to avoid paying taxes is a crime and one that defrauds our government. This practice is unfair to honest taxpayers who willingly pay their fair share of taxes.”
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service – Criminal Investigations, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Defendants Charged with One of the Largest Reported Data Breaches in U.S. HistoryRead the Press Release
One Of The Defendants Has Already Pleaded Guilty
An indictment was unsealed yesterday against two Vietnamese citizens who resided in the Netherlands, for their roles in hacking email service providers throughout the United States. The guilty plea of one of the defendants was also unsealed at the same time. In addition, a federal grand jury returned an indictment this week against a Canadian citizen for conspiring to launder the proceeds obtained as a result of the massive data breach.
Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Acting U.S. Attorney John A. Horn of the Northern District of Georgia, Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office, Special Agent in Charge Reginald Moore of the United States Secret Service’s (USSS) Atlanta Field Office and Special Agent in Charge Veronica F. Hyman-Pillot with the Internal Revenue Service-Criminal Investigation’s (IRS-CI) made the announcement.
“These men — operating from Vietnam, the Netherlands, and Canada — are accused of carrying out the largest data breach of names and email addresses in the history of the Internet,” said Assistant Attorney General Caldwell. “The defendants allegedly made millions of dollars by stealing over a billion email addresses from email service providers. This case again demonstrates the resolve of the Department of Justice to bring accused cyber hackers from overseas to face justice in the United States.”
“This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney Horn. “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”
“Large scale and sophisticated international cyber hacking rings are becoming more problematic for both the law enforcement community that is faced with the challenges of identifying them and laying hands on them, but also the fortune 500 companies that are so often their targets,” said Special Agent in Charge Johnson. “The federal indictments, apprehensions and extraditions in this case represents several years of hard work as the FBI and its cadre of cyber trained agents and technical experts acted quickly to stop the ongoing damage to the numerous victim companies as a result of these individuals’ hacking activities. In August 2012, the FBI, with the assistance of its legal attaches stationed abroad and in conjunction with Dutch law enforcement officials, executed a search warrant in the Netherlands that disrupted continued compromises of those companies while allowing U.S. authorities to advance its investigation. That investigation targeted not only the hackers but the businesses that helped monetize the data that was stolen from those victim companies. This case further reflects the productive partnership of the FBI and the U.S. Secret Service in aggressively addressing this 21st century crime problem.”
“Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Special Agent in Charge Moore. “The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice. This case demonstrates there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”
“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable,” said Special Agent in Charge Hyman-Pillot. “IRS Criminal Investigation is committed to unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to allegations in the indictments, between February 2009 and June 2012, Viet Quoc Nguyen, 28, a citizen of Vietnam, allegedly hacked into at least eight email service providers (ESPs) throughout the United States and stole confidential information, including proprietary marketing data containing over one billion email addresses. Nguyen, along with Giang Hoang Vu, 25, also a citizen of Vietnam, then allegedly used the data to send “spam” to tens of millions of email recipients. The data breach was the largest in U.S. history and was the subject of a Congressional inquiry in June 2011.
David-Manuel Santos Da Silva, 33, of Montreal, Canada, was also indicted by a federal grand jury on March 4, 2015, for conspiracy to commit money laundering for helping Nguyen and Vu to generate revenue from the “spam” and launder the proceeds.
According to allegations in the indictments, Da Silva, the co-owner, president and a director of 21 Celsius Inc., a Canadian corporation that ran Marketbay.com, entered into an affiliate marketing arrangement with Nguyen that allowed the defendants to generate revenue from the computer intrusions and data thefts.
As an affiliate marketer, Nguyen allegedly received a commission on sales generated from Internet traffic that he directed to websites promoting specific products. Nguyen allegedly used the information stolen from the ESPs to send “spam” emails to tens of millions of customers and provided hyperlinks to allow the purchase of the products. These products were marketed by Da Silva’s Marketbay.com.
Between approximately May 2009 and October 2011, Nguyen and Da Silva received approximately $2 million for the sale of products derived from Nguyen’s affiliate marketing activities.
Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014. On Feb. 5, 2015, Vu pleaded guilty to conspiracy to commit computer fraud. He is scheduled to be sentenced on April 21, 2015, before U.S. District Judge Timothy C. Batten Sr. of the Northern District of Georgia. Nguyen is a fugitive.
Da Silva was arrested based upon charges set forth in a criminal complaint at Ft. Lauderdale International Airport on Feb. 12, 2015, and is scheduled to be arraigned today in Atlanta before Magistrate Judge E. Clayton Scofield III.
The charges contained in an indictment are merely accusations, and defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI with the assistance of the USSS and IRS-CI. Law enforcement in the Netherlands and the Criminal Division’s Office of International Affairs also provided valuable assistance. This case is being prosecuted by Trial Attorney Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia.
Da Silva Indictment
Nguyen Indictment
The Executive Office for Immigration Review to Host Stakeholder Teleconference and Webinar on Recognition and Accreditation ProgramRead the Press Release
SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and webinar providing a general overview of EOIRs recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.
DATE: Friday, March 20, 2015, at 2 p.m.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs at 703-305-0289 or email [email protected], by noon on Wednesday, March 18, 2015. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, March 18th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendees organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Tacoma Woman who Led Tax Fraud and ID Theft Scheme Pleads GuiltyRead the Press Release
A Tacoma, Washington woman who used a prison pen pal program to obtain other peoples’ personally identifying information pleaded guilty today in U.S. District Court in Tacoma to wire fraud and aggravated identity theft, announced Acting United States Attorney Annette L. Hayes. SHANNON HENDERSON, 45, filed more than 150 fraudulent tax returns between 2009 and 2014, seeking more than $170,000 in tax refunds. Some $56,000 in tax refunds were sent to HENDERSON before the scheme was discovered. HENDERSON is scheduled to be sentenced on May 29, 2015.
According to the plea agreement, between 2007 and 2009, while incarcerated at the Washington Women’s Correctional Center at Purdy, Washington, HENDERSON became pen pals with various inmates across the country and obtained the names and identifying information of real people from these inmates. HENDERSON also purchased the personal information of people who were employed in Washington State by ABM Janitorial Services from a co-conspirator in order to use these names to file false and fraudulent U.S. Individual Income Tax Returns. HENDERSON used both the names provided by inmates and the names purchased from the coconspirator to file the fraudulent returns. HENDERSON had the fraudulently claimed refunds loaded onto prepaid debit cards and used the addresses of friends and relatives for her fraud scheme.
Wire fraud is punishable by up to twenty years in prison. Aggravated Identity Theft is punishable by a mandatory minimum two years in prison to run consecutive to any sentence imposed on the wire fraud count.
The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Rebecca Cohen.
St. Louis Man Sentenced for Part in Methamphetamine ConspiracyRead the Press Release
A St. Louis man, convicted of Conspiracy to Distribute Methamphetamine, was sentenced to 57 months in federal prison on March 6, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Eric Watson, 28, of St. Louis, MO, received a 57 month sentence for offenses which occurred in St. Clair County, IL and in St. Louis, MO.Watson had previously pled guilty to those offenses. Following release from imprisonment, Watson will serve a 3 year term of supervised release. Watson was also ordered to pay a $500 fine and a $100 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigations, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and United States Marshals Service. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
South Jersey Brothers Admit Role in Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – Two Camden men today admitted their roles in a conspiracy to sell 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Marcus Rutling, a/k/a “Fresh,” 33, of Camden, and Saluda, South Carolina, and his brother, Joseph Rutling, 24, of Camden, both pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to separate informations charging them each with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 28, 2014, Joseph and Marcus Rutling conspired with others to illegally sell firearms without a license, including handguns, shotguns, and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Marcus Rutling personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Joseph Rutling personally sold or participated in the sale of at least 15 firearms, including handguns, shotguns and an assault rifle, also to an ATF cooperating witness. On at least five occasions, Joseph Rutling sold ammunition with the firearms.
The conspiracy charge to which Joseph and Marcus Rutling pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for June 8, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George Belsky, with the investigation leading to today’s guilty plea. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
15-080
Defense counsel: Marcus Rutling: Justin Loughry Esq., Camden
Joseph Rutling: Mark Catanzaro Esq., Moorestown, New JerseySoftware Programmer Pleads Guilty to Hacking into Network of Long Island High-Voltage Power ManufacturerRead the Press Release
Earlier today in the federal courthouse in Central Islip, New York, Michael Meneses, a software programmer who formerly resided in Smithtown, Long Island, pleaded guilty to hacking into the computer network of a Long Island-based company that manufactures high-voltage power supplies. Today’s guilty plea proceeding took place before the Honorable Joseph F. Bianco, United States District Judge, Eastern District of New York.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“The defendant used his programming knowledge to hack into the computer network of his former employer and launch a campaign of digital retaliation,” stated United States Attorney Lynch. “The threat posed by disgruntled and former employees is serious, and we will continue to work closely with our law enforcement and private sector partners to vigorously prosecute insider attacks.” Ms. Lynch expressed her grateful appreciation to the FBI, the agency that led the government’s investigation.
According to court filings and facts presented at the plea hearing, the defendant was employed at the victim company from May 2008 through January 2012 as a software programmer and system manager. In that capacity, he developed and customized software that the company used to run its business operations, including its purchasing, inventory control, production planning, production, accounting, and sales. The defendant’s responsibilities gave him high-level access to the company’s computer network.
In December 2011, the defendant, who had voiced displeasure at having been passed over for promotions, tendered his resignation from the victim company and gave two weeks’ notice. Prior to tendering his resignation, the defendant created an unauthorized computer program that harvested the user logins and passwords of fellow company employees. Following termination of his network access, the defendant used the login credentials to remotely access the network from his home and from a hotel located near his new employer. In the weeks that followed, the defendant used these credentials to launch a campaign to inflict damage on his former employer by gaining unauthorized access to its network and sabotaging its business. For example:
The defendant deleted a line of code in a software program that the victim company used to calculate work order costs, leading the company to incorrectly calculate these costs.
The defendant remotely accessed the victim company’s network, read an email sent by his former supervisor to one of his former colleagues about a candidate for the defendant’s former position, created the email address “[email protected],” and sent the candidate a message that stated, “Don't accept any position from [the victim company].”
The defendant gained unauthorized access to the victim company’s network and modified a database so it would appear to be March 2012 rather than February 2012. As a result, the company was unable to process routine transactions.
The defendant remotely accessed the victim company’s network and manually purged a purchase order table, which prevented the company from converting purchase requisitions to purchase orders.
The victim company incurred significant costs in investigating and remediating the damage caused by the defendant’s unauthorized access to its computer network.
When sentenced on July 7, 2015, the defendant faces up to 10 years in prison, as well as restitution and a fine.
The government’s case is being prosecuted by Assistant United States Attorneys Douglas M. Pravda and Charles N. Rose.
The Defendant:
MICHAEL MENESES
Age: 43
E.D.N.Y. Docket No. 13-CR-321 (JFB)
Sham Church Director and Professed “Enforcer” Edward Mackenzie Sentenced to 12 Years for Looting ChurchRead the Press Release
BOSTON – Edward J. MacKenzie, Jr., a self-professed “enforcer” for James “Whitey” Bulger, was sentenced today to 12 years in prison in connection with his decade-long scheme to siphon off the considerable financial assets of a Beacon Hill Church.
MacKenzie, 57, of Weymouth, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 12 years in prison, three years of supervised release, and ordered to pay $754,569 in restitution. In sentencing MacKenzie, Judge Saylor imposed a sentence two years above the guideline range, “struggling to find any redeeming qualities in Mr. MacKenzie.” Judge Saylor also noted that MacKenzie had, among other things, apparently used his daughter to facilitate the commission of the charged offenses.
“Edward MacKenzie preyed on the vulnerable, intimidated the altruistic, and wove a web of lies and fraud for more than a decade,” said U.S. Attorney Carmen M. Ortiz. “He had literally led a life of crime and now faces a well-deserved twelve years in federal prison.”
In October 2014, MacKenzie pleaded guilty to 13 counts, including RICO conspiracy, racketeering, mail fraud, wire fraud, and money laundering. Judge Saylor also cited MacKenzie’s lengthy criminal history, most of which had gone unpunished.
In September 2002, MacKenzie became a member of the Boston Society of the New Jerusalem Church, which was one of the first Swedenborgian churches in Massachusetts, and in 2003, he became the “Director of Operations,” a position that had not previously existed and paid him a salary as high as $200,000 per year. In order to drain the Church of its assets, he began voting himself and his associates into positions of authority within the Church, and consolidated and fortified his control by, among other things, changing the Church’s by-laws for his own benefit. MacKenzie was able to gain control over substantial Church assets, including an 18-story apartment building in downtown Boston, because the Church had a small number of voting members, many of whom were elderly.
After obtaining control, MacKenzie stole Church funds through a combination of fraud, deceit, theft, and bribery. Moreover, MacKenzie intimidated and threatened individuals who were employed by and did work at the Church by, among other things, providing them with signed copies of his 2003 autobiography, Street Soldier: My Life as an Enforcer for Whitey Bulger and the Boston Irish Mob. In the autobiography, MacKenzie admitted to a lengthy criminal history, including burglary, robbery, armed assault, and narcotics trafficking.
As stated in court documents, MacKenzie’s crimes cost the Church millions of dollars and deprived the needy who relied on its charity. Judge Saylor questioned MacKenzie’s remorse and sincerity due to the fact, as the government noted, that since his incarceration on this case in May 2013, MacKenzie has continued to commit crimes in prison, including fraud, extortion, and witness tampering.
U.S. Attorney Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Zachary Hafer and Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Seven Handed Sentences for Cocaine and Meth TraffickingRead the Press Release
LAREDO, Texas – Seven people were sentenced this week for their roles in a drug conspiracy involving the shipment of cocaine and methamphetamine from Laredo to Dallas and Houston, announced U.S. Attorney Kenneth Magidson.
U.S. District Court Judge George P. Kazen ordered Nuevo Laredo attorney Rolando Ariel Salinas-Apac, 34, to a term of 180 months in federal prison. Juan Manuel Reyes, 37, a commercial truck driver from Nuevo Laredo was sentenced to 121 months. Christian Abundez, 23, of Laredo, recevied 110 months, while his sister Blanca Abundez, 29 also of Laredo, was ordered to serve an 84-month-term of imprisonment. Francisco Javier Garza, 55, Abraham Bruno Ortiz, 49, and Gabriel Munoz Solis, 40, all of Laredo, each received individual terms of 92 months.
The seven were charged in two separate federal indictments with conspiracy to possess and possession with intent to distribute in excess of five kilograms of cocaine and heroin and more than 500 grams of methamphetamine. The indictments were returned in July 2013 and were the last of seven indictments relating to a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Ultimate D.
These indictments charged several drug trafficking cells operating out of the Laredo area engaged in a conspiracy to distribute bulk quantities of marijuana, heroin, methamphetamines and cocaine from the Laredo area to distribution venues such as Dallas and Houston.
The investigation has thus far yielded 23 convictions with all but two defendants pleading guilty to various conspiracy to possess with intent to distribute various narcotics to include marijuana, heroin, cocaine and methamphetamines. The remaining two defendants were convicted indiviually in seprate jury trials. Laredo businessman Marco Antonio Marchan was convicted by a federal jury in December 2013, while Juan Manuel Reyes, a Mexican commercial truck driver, was convicted in January 2014.
The remaining two defendants - Ahmed Alejandro Plascencia, 33, of Laredo, and Ilmar Sierra, 35, of Dallas – will be sentenced March 13, 2015.
OCDETF Operation Ultimate D was spearheaded by the Drug Enforcement Administration with the assistance of Internal Revenue Service - Criminal Investigation, Webb County District Attorney’s Office, Webb County Sheriff’s Office and the U.S. Marshals Service.
Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Rockville Man Pleads Guilty to “Sextortion”Read the Press Release
Baltimore, Maryland – Marc Joseph Punzalan, age 20, of Rockville, Maryland, pleaded guilty today to production of child pornography in connection with a scheme in which he met young girls through social media and internet chat rooms and convinced them to send him sexually explicit photographs of themselves. When the girls told him they no longer wanted to send the increasingly graphic images he requested, Punzalan threatened to post the images online and/or tell the girls’ friends and families.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Punzalan’s plea agreement, from January 2012 through January 2014, he contacted four minor female victims, between 12 and 16 years of age, and persuaded them to send him sexually explicit photographs of themselves, using cell phone applications, and internet social media and chat messaging sites. Punzalan assumed the identity of at least one minor victim and used that victim’s identity to convince other minor females to send him sexually explicit images.
Each of the victims informed Punzalan at different points that she no longer wished to send him sexually explicit images. Punzalan responded to each girl by threatening to send the images to the victim’s family and friends or publicly post the images if the victim did not send him more images depicting increasingly graphic sexual conduct. Punzalan created social media accounts in the victims’ names and posted images he had received of the victims on those accounts.
As part of his plea agreement, Punzalan must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Punzalan and the government have agreed that if the Court accepts the plea agreement Punzalan will be sentenced to 15 years in prison followed by up to lifetime supervised release. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 1, 2015 at 9:30 a.m.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Registered Sex Offender Charged with Possessing and Distributing Images of Child RapeRead the Press Release
A registered sex offender with a 1974 conviction for raping and murdering a 6-year-old boy, was arrested yesterday for possession and distribution of images of child rape, announced Acting United States Attorney Annette L. Hayes. ANDREW NICHOLAS EVICH, 67, of Everett, Washington made his initial appearance in U.S. District Court in Seattle yesterday and will remain in federal custody pending a detention hearing scheduled for Tuesday March 10, 2015.
Agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations identified EVICH as the person posing online as a 13-year-old boy with an interest in sexually explicit images of children. The criminal complaint in the case alleges EVICH was using a peer-to-peer file sharing computer program to receive and distribute sexually explicit images of young boys being molested or raped. The investigation is still determining the origin of hundreds of sexually explicit images and videos.
If convicted, EVICH faces a mandatory minimum 15 years in prison and up to 40 years in prison because of his criminal history as a sex offender. He was convicted in 1974 in Whatcom County Superior Court of the sexual assault and murder of a 6-year-old boy. EVICH was returned to prison in 1985 when he was convicted of Contributing to the Delinquency of a Minor for sexual contact with a 15-year-old. In 1998 he was sentenced to five years in federal prison for receipt of child pornography.The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case is being investigated by ICE’s Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Kate Vaughan. Ms. Vaughan serves as the Project Safe Childhood Coordinator for the U.S. Attorney’s Office.
Plymouth Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Plymouth man pleaded guilty today to possessing and distributing child pornography.
Brendan R. Kessler, 25, pleaded guilty to distribution and possession of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 10, 2015.
On Sept. 2, 2014, after law enforcement became aware that Kessler had posted child pornography to a public file sharing program known as Lime Wire, federal agents executed a search warrant on Kessler’s residence and seized a computer and various digital storage devices containing multiple images and videos of child pornography. Federal agents also located multiple boxes of fireworks, detonator cords, remote firing switches, a hand-written journal titled “Mass Murder Book,” and lists of chemicals needed to create explosive power. Additionally, in an upstairs bedroom, agents located 14 firearms (3 semi-automatic pistols, 3 shotguns, and 8 rifles) and multiple boxes of various caliber ammunition. Kessler was arrested following the execution of the search warrant and is currently being held in federal custody.
The charging statute provides for a sentence of no greater than 20 years in prison, with a five year minimum mandatory term, and no less than five years and up to a lifetime of supervised release. According to a plea agreement, the parties agreed that Kessler would recommend a sentence of no less than 63 months, and the government a sentence of no greater than 78 months. 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alban, Superintendent of the Massachusetts State Police; and Plymouth Police Chief Michael E. Botieri, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Pizza Shop Owner Pleads Guilty to Charges of Unlawfully Exporting Firearms and Accessories to PakistanRead the Press Release
Baltimore, Maryland - Kamran Ashfaq Malik, age 35, of Upper Marlboro, Maryland pleaded guilty today to unlawfully exporting semi-automatic rifles, parts and accessories to Pakistan. Co-defendant Waleed Aftab, age 22, also of Upper Marlboro, pleaded guilty to the same charge on December 19, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Malik owned and operated a pizza shop in Upper Marlboro, and maintained a second residence in Lahore, Pakistan. Aftab worked at the pizza shop. According to Malik’s plea agreement, between September and October 2012, Malik purchased, or caused to be purchased, approximately 48 AR-15 100 round dual drum magazines from various firearms and related accessories dealers. In order to take advantage of the lack of magazine capacity restrictions in Virginia, some of the purchases were made by Malik under the name, Virginia address and bank account of an associate. In other instances Malik provided a false commercial shipping address in Springfield, Virginia.
Between October and November 2012, Malik shipped or caused Aftab and others to ship, several illegal shipments of firearms and firearms parts and accessories to Lahore, Pakistan. In order to conceal the unlawful export of defense items, which are controlled for export, Malik placed false return addresses and names on the packages, as well as falsely identified the contents of the packages, and falsely declared the contents to be of nominal value. Malik directed Aftab to do the same.
On November 28, 2012, during a routine airport security screening in Dubai, United Arab Emirates, one of the packages was found to contain firearm parts and accessories that are prohibited from export to Pakistan without an export license, including: two lower receivers of a semi-automatic rifle, two rifle bolt carriers, rounds of magazines, an optical gun sight and an LED rail mounted flashlight with laser. The defendants never obtained the required licenses to export such items.
According to Aftab’s statement of facts, on December 1, 2012, just prior to boarding a flight at JFK International Airport in New York destined for Pakistan, Aftab was found to be in possession of a receipt reflecting the sale of six AR- 15 style semi-automatic rifle magazines that Malik purchased the previous September.
On March 7, 2013, after arriving at JFK Airport from Pakistan, Malik’s cell phone and laptop computer were subjected to a border search. Malik’s cell phone contained pictures of AR-15 style semi-automatic rifles and magazines, in some cases in the hands of individuals. The pictures were taken at locations near his residences in Pakistan and Maryland. A text message was also found on Malik’s phone that referenced the tracking number of the shipment detained in Dubai.
On March 6, 2014, Malik dropped off a package for shipment to Pakistan. Malik provided a false address and falsely identified the contents as “screw holders and metal screws.” Immigration and Customs Enforcement agents intercepted the package, which was found to contain 28 .223 caliber bolt carriers. Those items are regulated for export. Malik never sought nor obtained a valid export license for those items.
Malik received numerous export warnings regarding the export restrictions on firearms and related accessories. A notice of these export restrictions were contained on the firearms transaction records for various weapons purchased by Malik between 2012 and 2013, including the purchase of the Colt M-4 whose lower receiver was confiscated in Dubai. In addition, the shipping invoice receipts for the various shipments to Pakistan completed by Malik, or Aftab acting at his direction, contained an export notice and signature block for the shipper certifying that the identifying information for the package was accurate and that it was being shipped in accordance with U.S. export regulations.
Malik and Aftab each face a maximum penalty of 10 years in prison for the unlawful smuggling of goods from the United States. U.S. District Judge J. Frederick Motz has scheduled sentencing for Malik on June 26, 2015, at 9:30 a.m., and for Aftab on March 20, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised Baltimore HSI for their work in the investigation and thanked Assistant United States Attorney Christine Manuelian, who is prosecuting the case.
Owner of Pico Rivera Nightclub Charged by Federal Grand Jury with Laundering Money for Mexican Drug OrganizationRead the Press Release
LOS ANGELES – The owner of El Rodeo nightclub in Pico Rivera was named today in a federal grand jury indictment that charges him with using his bar and another one he controlled in Moreno Valley to launder drug proceeds on behalf of Mexican drug traffickers.
Edgar De Dios Fragoso, 38, of Hacienda Heights, was named today in an eight-count indictment that charges him with conspiracy to launder money and seven counts of money laundering.
Fragoso was arrested on a criminal complaint that charged him with money laundering on February 23, and he was subsequently freed on a $100,000 bond.
Today’s indictment alleges that Fragoso conspired to launder drug proceeds through the two El Rodeo locations for an unnamed trafficker who imported methamphetamine into the United States. According to court documents, the drug trafficker funneled the cash collected from methamphetamine sales to Fragoso, who delivered the money to the drug organization under the guise that the payments were for business and financial services.
In addition to money laundering conspiracy, Fragoso is charged in seven substantive counts of money laundering for allegedly issuing more than $200,000 in checks to a fictitious drug trafficking organization. The bogus drug operation was set up by the Drug Enforcement Administration and IRS – Criminal Investigation in an undercover operation.
Fragoso is scheduled to be arraigned on March 13. If he is convicted, Fragoso would face a statutory maximum sentence of 20 years for each of the eight charges in the indictment.
Release No. 15-024
Owner of Mussari Motors, Inc. Sentenced to Two Years in Prison for Failing to Report That He Received $719,000 in Cash from A Drug TraffickerRead the Press Release
SAN DIEGO – John Frank Mussari Jr, owner of Mussari Motors Inc., a luxury car dealership in San Diego, was sentenced in federal court today to 24 months in prison for conspiring with a drug trafficker to evade laws requiring disclosure of cash transactions exceeding $10,000.
According to his plea agreement, Mussari admitted that he failed to report receiving $719,000 in cash from the drug trafficker, who purchased several high-end vehicles including a Ferrari and Porsche during a four-month period.
Under federal law, each person engaged in an automobile dealership, who in the course of that business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file “Report of Cash Payments Over $10,000 in Trade or Business” with the Financial Crimes Enforcement Network (FINCEN) within 15 days. Mussari admitted that he and the trafficker, who was identified in the plea agreement only as J.B., intentionally and willfully conspired with each other to avoid filing any of the required forms.
During his guilty plea in September 2014, Mussari admitted that he received $132,000 in cash for a Ferrari, $115,000 in cash for a Lamborghini, $147,000 in cash for a Porsche, and $205,000 for another Lamborghini. Mussari also admitted that he received $80,000, $60,000, and $31,000 in cash from the drug trafficker.
According to court documents, Mussari was initially detained attempting to leave in a Lamborghini at the time federal and state agents searched the residence of the drug trafficker’s home in Fallbrook, California. Agents found about $205,000 cash in Mussari’s Lamborghini. The money was forfeited to the United States.
U.S. District Judge Gonzalo P. Curiel ordered Mussari to report to prison on June 5, 2015. Mussari has been free on bond.
DEFENDANT Case Number: John Frank Mussari, Jr. Age: 48 San Diego, California CHARGESConspiracy to Evade Reporting Requirements Received in Business, in violation of Title 18, U.S.C., Section 371. Maximum penalty: Five years in prison and $250,000 fine.
INVESTIGATING AGENCIESInternal Revenue Service
Drug Enforcement AdministrationOrleans Parish School Board Member Ira Thomas, Charged with Conspiracy to Commit Federal Bribery and Honest Services Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite and Michael Anderson, Special Agent in Charge of the Federal Bureau of Investigations (“FBI”), New Orleans Field Division, announced that IRA THOMAS, 56, of New Orleans, and a member of the Orleans Parish School Board (“OPSB”), was charged today in a one-count bill of information charging him with conspiracy to commit bribery and honest services wire fraud.
According to the Bill of Information, beginning in September 2013 and continuing until January 2015, THOMAS and several others participated in a conspiracy to commit bribery and honest services wire fraud.
The Bill of Information alleges that THOMAS, in his role as an Orleans Parish School Board Member, engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme. It is further alleged that THOMAS used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.
“Today’s announcement should send a message to those public officials who are engaging in corruption, or are even contemplating doing so,” stated U.S. Attorney Polite. “Everyone in this community – law enforcement, average residents, your co-workers, even those who you believe are trusted co-conspirators – will eventually work together to turn a spotlight on your criminality.”
"Sadly, this public corruption conspiracy strikes at the heart of two of the most important issues currently facing New Orleanians, education, and indirectly, public safety,” stated FBI Special Agent in Charge Michael Anderson. “While any public corruption is intolerable, the FBI will remain particularly vigilant when these types of social issues are impacted."
According to the Bill of Information, in September 2013 a cooperating witness (“CW”) was approached by an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff. During the fall of 2013, the CW, THOMAS, the OPSB employee, and at times another private citizen, met to discuss this contract. These conversations were recorded by the CW with the assistance of the FBI. Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract. In December 2013, the CW delivered $5,000 in cash to the private citizen acting as a conduit for THOMAS, which was video recorded. This money was then delivered to THOMAS. During the fall of 2014, THOMAS and the OPSB employee discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.
If convicted of conspiring with others to commit bribery and honest services wire fraud, THOMAS faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release.
The Bill of Information also contains Notice of Forfeiture which puts the defendant on notice that the Government intends on forfeiting any and all property and profits concerned with and/or derived from any illegal activity referenced in the Bill of Information.
U. S. Attorney Polite reiterated that today’s Bill of Information describes allegations and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.
Orlando Man Sentenced to Five Years in Federal Prison for Firearm OffensesRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway has sentenced Anthony Kenty Soto-Lopes (34, Orlando) to five years in federal prison for possessing an unregistered machinegun, silencer, and short barreled rifle, and for being a felon in possession of a firearm. The Court also ordered him to forfeit five Glock pistols that law enforcement recovered from his residence during the investigation. Soto-Lopes pleaded guilty on December 19, 2014.
According to court documents, on September 4, 2014, in Orlando, Florida, Soto-Lopes purchased four Glock pistols, a Glock machinegun, a silencer, and four devices designed for converting firearms into fully automatic weapons from an undercover agent and a confidential informant. As Soto-Lopes presented payment ($4,955) for these firearms, agents arrested him and recovered all of the firearms that he had purchased. After his arrest, Soto-Lopes admitted to agents that he had illegally shipped firearms and weapons from Florida to Puerto Rico using mail or commercial carriers, including the shipment of a grenade launcher. During a subsequent search of Soto-Lopes’s residence, agents recovered numerous other firearms and ammunition, including five Glock pistols and a short-barreled rifle.
Under federal law, Soto-Lopes was prohibited from possessing a firearm or ammunition because of a previous felony conviction in Puerto Rico. Neither the silencer, the machinegun, conversion devices, nor the short-barreled rifle were registered to Soto-Lopes in the National Firearms Registration and Transfer Record, as required by federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Omaha Woman Sentenced for Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Shantoria Valentine-Deguenon, age 24 of Omaha, Nebraska, was sentenced to five years, three months imprisonment by the Honorable Joseph F. Bataillon, for bank robbery. On December 9, 2014, a federal grand jury found her guilty of robbing the Wells Fargo bank in Ralston. She was also ordered to serve a three year term of supervised release.
On July 28, 2014, Valentine-Deguenon walked into the Wells Fargo branch located at 4725 South 84th Street, Ralston, Nebraska and gave a note to two tellers indicating she had a bomb. She also yelled that she had a bomb and demanded money from the tellers. The tellers gave her money and she fled the bank. A Good Samaritan who happened to be parked in the bank parking lot saw Valentine-Deguenon run from the bank, followed her and tracked her to the Ralston Middle School parking lot where he ordered her to the ground. As that was happening, Ralston police officers arrived on the scene and placed her under arrest. She was found in possession of $1,213.00 in United States currency taken from the bank.
The case was investigated by the Ralston Police Department and Federal Bureau of Investigation.
New York Doctor Pleads Guilty in $14.2 Million Medicare Fraud SchemeRead the Press Release
A New York doctor pleaded guilty today for his involvement in a scheme to fraudulently bill Medicare for $14.2 million in claims for medically unnecessary treatments.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Field Office made the announcement.
Roman Johnson, 40, formerly of Buffalo, New York, pleaded guilty before U.S. Magistrate Judge Marilyn D. Go in the Eastern District of New York to one count of conspiracy to commit health care fraud. Sentencing will be scheduled at a later date. As part of the plea, Johnson agreed to pay $5,386,363 in restitution to the Medicare program, which represents the total amount of money Medicare paid as the result of the fraudulent claims.
In connection with his guilty plea, Johnson admitted that he and other medical providers at the clinic submitted approximately $14.2 million in false and fraudulent claims to Medicare for medically unnecessary vitamin infusions, physical therapy, and occupational therapy that did not qualify for reimbursement by Medicare.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case was prosecuted by Trial Attorney Bryan D. Fields of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Erin E. Argo of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
New York City Public School Teacher Charged with Producing, Receiving, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that JON CRUZ, a teacher and debate coach at the Bronx High School for Science, was arrested today on charges relating to producing, receiving, and possessing child pornography.
U.S. Attorney Preet Bharara said: “Whenever child pornography charges are brought, it is among the most difficult and disturbing situations law enforcement must face, particularly as it relates to the victims. What makes this case even more disturbing than the charges themselves is, as alleged, Jon Cruz was involved in child pornography while he was working with children every day through his job as a teacher and debate coach. Now the justice process must take over.”
FBI Assistant Director in Charge Diego Rodriguez said: “It takes a special depravity to produce child pornography. This type of insidious behavior must stop. And others who think they can hide in the Deep Web—or are beyond the reach of law enforcement—should think again. Our youth deserve our unwavering commitment to their security, particularly from a coach and teacher at their school.”
According to the Complaint unsealed today in Manhattan federal court:
From July 2014 through December 2014, JON CRUZ engaged in multiple chats over a mobile communication application with minor victims from different states. In those chats, CRUZ, who was aware of the ages of the victims, offered to pay the victims to take nude photographs of themselves and send the photographs to CRUZ. In at least one case, CRUZ paid a fifteen-year-old male over $500 to take sexually explicit photographs of himself and to send the photographs to CRUZ.
CRUZ, 32, was arrested this morning in New York, NY. He is charged with one count of production of child pornography, one count of receiving child pornography, and one count of possessing child pornography. For production of child pornography, CRUZ faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison. For his receipt of child pornography, he faces a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison. For his possession of child pornography, he faces a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
CRUZ is a teacher at the Bronx High School for Science, where he has been employed since 2006. CRUZ is also the head coach of the Bronx Science Speech and Debate Team. Persons with information about children with whom CRUZ may have had inappropriate sexual contact, or from whom he may have solicited sexually explicit images or videos, are urged to contact the FBI hotline established for this investigation at (212) 384-2166 or [email protected].
Mr. Bharara praised the investigative work of the New York and New Mexico offices of the FBI in this matter. He also thanked the New York State Police and the Bernalillo, New Mexico County Sheriff’s Office for their assistance with this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Shawn Crowley is in charge of the prosecution.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v. Jon Cruz Complaint
New York City Private Investigator Pleads Guilty in Manhattan Federal Court to Hacking into E-Mail AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ERIC SALDARRIAGA, a licensed private investigator in New York City, pled guilty to a criminal Information charging him with conspiracy to commit computer hacking. SALDARRIAGA pled guilty before U.S. District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara said: “Eric Saldarriaga crossed the line as a private investigator by hiring hackers to unlawfully and secretly access over 60 email accounts, including accounts belonging to people he was investigating. With today’s plea, Mr. Saldarriaga will face the repercussions of his illegal actions.”
FBI Assistant Director Diego Rodriguez said: “Eric Saldarriaga didn't honorably serve his clients when he abused his powers to the detriment of his victims. Unlawfully accessing personal information is no minor crime. As today’s guilty plea suggests, those who exploit their authority in this way will be made to answer for their actions.”
According to the allegations contained in the Information and statements made in court:
The defendant, a licensed private investigator, owned a company that provided private investigation services to members of the public for a fee. Beginning in 2009, SALDARRIAGA, through services advertised on the internet (the “Hacking Services”), hired individuals to hack into the e-mail accounts of numerous victims. SALDARRIAGA used the Hacking Services to access, unlawfully and secretly, the e-mail accounts of individuals he investigated on behalf of his clients, as well as individuals in whom SALDARRIAGA was interested for personal reasons.
SALDARRIAGA paid the Hacking Services to provide him with login credentials, including usernames and passwords, for victims’ e-mail accounts. SALDARRIAGA then unlawfully accessed and reviewed victims’ e-mail communications. In total, SALDARRIAGA hired Hacking Services to hack into, and provide unauthorized access to, at least 60 different e-mail accounts.
SALDARRIAGA, 41, of Queens, New York, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison. SALDARRIAGA is scheduled to be sentenced by Judge Sullivan on June 26, 2015. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the FBI for their outstanding work in the investigation.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel Noble is in charge of the case.
U.S. v. Eric Saldarriaga Information
Monmouth County, New Jersey, Doctor Sentenced to 46 Months in Prison on Structuring and Tax ChargesRead the Press Release
A Monmouth County, New Jersey, doctor was sentenced today in U.S. District Court in Trenton, New Jersey, to serve 46 months in prison for structuring cash transactions in order to avoid reporting requirements and for aiding and assisting in the filing of his own false tax returns, U.S. Attorney Paul J. Fishman of the District of New Jersey and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Paul DiLorenzo of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to two counts of a second superseding indictment charging him with structuring financial transactions and aiding and assisting in the filing of false tax returns. In addition to the prison term, Judge Wolfson sentenced DiLorenzo to three years of supervised release, ordered DiLorenzo to pay restitution to the IRS of $304,293, and ordered DiLorenzo to forfeit nearly $1,000,000 in illegally derived proceeds.
According to documents filed in this case and statements made in court:
Between 2009 and June 27, 2012, DiLorenzo received more than $2 million in cash payments from his patients. The medical office received payments exceeding $10,000 in a single day on at least 35 occasions. Between May 28, 2009, and Nov. 2, 2011, DiLorenzo deposited $1 million in cash into banks accounts in his name and in the name of his business. The deposits included 150 separate transactions, and all transactions but one were for less than $10,000. Certain currency transactions of more than $10,000 trigger financial institutions to comply with Currency Transaction Report requirements. DiLorenzo admitted that he made the deposits for less than $10,000 in order to evade the reporting requirements.
On March 29, 2011, DiLorenzo aided and assisted in the filing of a false federal income tax return for the 2010 tax year that reported gross receipts of $444,331. His actual gross receipts, however, were more than $1 million. In May 2012, DiLorenzo aided and assisted in the filing of a false tax return for the 2011 tax year in which he reported gross receipts of $537,236, when in fact his actual gross receipts were in excess of $800,000.
U.S. Attorney Fishman and Acting Assistant Attorney General Ciraolo commended special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents and task force officers from the Drug Enforcement Administration’s Tactical Diversion Squad, under the direction of Special Agent in Charge Carl Kotowski, who investigated the case, and Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office for the District of New Jersey located in Trenton, and Trial Attorney Yael Epstein of the Justice Department’s Tax Division who prosecuted the case.
Monmouth County, New Jersey, Doctor Sentenced to 46 Months in Prison on Structuring and Tax ChargesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, doctor was sentenced today to 46 months in prison for structuring cash transactions in order to avoid reporting requirements and for filing false tax returns, U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Paul DiLorenzo of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to Counts Two and 12 of a second superseding indictment charging him with structuring financial transactions and aiding and assisting in the filing of false tax returns. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between 2009 and June 27, 2012, DiLorenzo received more than $2 million in cash payments from his patients. The office received payments exceeding $10,000 in a single day on at least 35 occasions. Between May 28, 2009, and Nov. 2, 2011, DiLorenzo deposited $1 million in cash into banks accounts in his name and in the name of his business. The deposits included 150 separate transactions, all but one for less than $10,000. Transactions of more than $10,000 require financial institutions to file Currency Transaction Reports. DiLorenzo admitted he made the deposits for less than $10,000 to evade the reporting requirement.
On March 29, 2011, DiLorenzo helped his accountant file a U.S. Individual Income Tax Return, Form 1040, for the 2010 tax year, reporting gross receipts of $444,331, knowing his gross receipts were $1 million. In May 2012, DiLorenzo helped his accountant prepare a tax return for the 2011 tax year in which he reported gross receipts of $537, 236. In fact, his gross receipts were in excess of $800,000.
U.S. Attorney Fishman and Acting Assistant Attorney General Ciraolo credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents and task force officers from the Drug Enforcement Administration’s Tactical Diversion Squad of the, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
In addition to the prison term, Judge Wolfson sentenced DiLorenzo to three years of supervised release, ordered DiLorenzo to pay restitution to the IRS of $304,293, and ordered DiLorenzo to forfeit nearly $1 million in illegally derived proceeds.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton and Trial Attorney Yael Epstein of the Justice Department’s Tax Division.
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Defense counsel: Robert J. DeGroot Esq., NewarkMinot Man Sentenced for Felon in Possession of AmmunitionRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on March 6, 2015, Jerome Bradley Fletcher, 38, Minot, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a count of possession of ammunition by a convicted felon. Judge Hovland sentenced Fletcher to serve four years and three months in federal prison, to be followed by three years of supervised release. Fletcher was also ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On November 13, 2013, in Minot, North Dakota, Fletcher was stopped for a traffic violation. After stopping the vehicle that he was driving, Fletcher fled on foot. While fleeing, he dropped items which were seized and identified as two gun magazines containing 11 rounds of 9mm ammunition.
Fletcher was prohibited from possessing ammunition by virtue of 11 prior felony convictions, including Oregon convictions for robbery in 1995, felon in possession of a firearm in 2004 and possession of a controlled substance in 2004 and 2006.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Minot Police Department.
Assistant U.S. Attorney David Hagler prosecuted the case.
Members of the Mustafa Organization Plead Guilty to Conspiracy and Related Charges in Connection with the Theft of $20 Million Worth of Cell Phones and Electronic DevicesRead the Press Release
Eight defendants pleaded guilty this weekUnited States Attorney Andrew M. Luger today announced that 20 defendants charged in a conspiracy to traffic stolen cellular phones and other electronic devices have pleaded guilty. The Mustafa Organization, a Twin Cities-based criminal organization, was indicted for trafficking stolen and fraudulently obtained mobile telephones and tablets. Twenty of the 21 defendants have now entered guilty pleas before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn. The final two of those defendants, MILES and AL HUSSAINAWEE pleaded guilty late yesterday afternoon. A sentencing date has not been set for MILES and AL HUSSAINAWEE.
According to the defendants’ guilty pleas and documents filed in court, from at least 2006 through 2014, members of the Mustafa family and their associates used stolen identity information and other criminal means to obtain at least $20 million worth of cellular telephones and other mobile devices for the purpose of trafficking them throughout the United States and overseas. The six Mustafa brothers owned and operated 13 mobile device stores in the Twin Cities metropolitan area, which were used to buy illegally obtained mobile devices. Members of the Mustafa Organization paid runners to steal mobile devices or obtain them fraudulently using stolen identification documents. They re-sold the stolen phones and tablets for substantial profits that were then distributed among themselves and used to pay for rent, utilities, payroll and other expenses to keep their stores in business and promote the unlawful activity.
According to the defendants’ guilty pleas and documents filed in court, members of the Mustafa Organization also falsified loan applications and provided false documentation to get loans for vehicles that they used to transport stolen devices and the proceeds of their criminal activity. The members of the Mustafa Organization also made fraudulent credit card transactions to steal from credit card processing companies and used the proceeds to buy more cell phones, and to pay operating expenses for the wireless stores and for personal use.
Assistant U.S. Attorneys Steven Schleicher, John Marti, and Karen Schommer are handling the prosecution of this case.
This case is the result of an investigation conducted by the St. Paul Police Department, United States Secret Service, University of Minnesota Police Department, Minnesota Department of Public Safety and Bureau of Criminal Apprehension, Minnesota Financial Crimes Task Force, United States Postal Inspection Service, Internal Revenue Service Criminal Investigations, Homeland Security Investigations, Edina Police Department, Minneapolis Police Department, Plymouth Police Department, Federal Bureau of Investigation, and the United States Marshal’s Service.
Defendant Information: JAMAL TALAL MUSTAFA, a/k/a “Jimmy,” 42
Apple Valley, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Conspiracy to Defraud the Government With Respect to Claims, 1 count
NASER MOHAMAD MUSTAFA, a/k/a “Nasty Nas,” 24
Rosemount, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
EDWAN T MUSTAFA, a/k/a “Eddy,” 40
Apple Valley, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
NIZER M MUSTAFA, a/k/a “Shaggy,” a/k/a “Mike,” 36
Savage, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Conspiracy to Defraud the Government With Respect to Claims, 1 count
BILAL MUHAMMED MUSTAFA, a/k/a “Billy,” 30
Minneapolis, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
TALAL M MUSTAFA, a/k/a “Tommy,” 43
Burnsville, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods and Access Device Fraud, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
MOISES NAVARRO CAZALES, 22
Bloomington, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
AHMED RD SUNOQROT, a/k/a “Abu Hasan,” 59
St. Paul, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
CEDRIC CHAPPELL, 44
Minneapolis, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
DEANTRE RICKEY-RENE SQUALLS, 24
Brooklyn Center, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Felon in Possession of a Firearm, 2 counts
BLANYON TOE DAVIES, 21
Unknown
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
VICTOR TOMBEKAI DOE, 24
Unknown
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
YOLANDA COOMBS, 28
Oakdale, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
CASWANA MILES, 26
Unknown
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
TIARA LIGON
St. Paul, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
MARQUIS TERELL MAGGIESFIELD, a/k/a “Kenny,” 28
Unknown
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
MARCUS PHILLIP COLEMAN, 23
St. Paul, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
ROBERT RICHARD COLEMAN, 30
St. Paul, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
DANIELLE YVONNE COLEMAN, 29
St. Paul, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
ABBAS ATEAIA AL HUSSAINAWEE, 41
Minneapolis, Minn.
Convicted: • Conspiracy to Engage in Interstate Transportation of Stolen Goods and Device Fraud, 1 count
• Possession with Intent to Distribute 50 Grams or More of a Mixture or Substance Containing Methamphetamine, 1 countMartin County Father of Twins Charged with Butane Hash Oil Laboratory and Weapons ChargesRead the Press Release
A Martin County resident was arrested for running a butane hash oil laboratory and weapons charges.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, and A.D. Wright, Acting Special Agent in Charge, DEA, Miami Field Division, made the announcement.
Daniel Paul Vranich, 31, of Lake Park, FL, made his initial appearance before U.S. Magistrate Frank J. Lynch Jr., in Fort Pierce, who detained him as a risk of flight and danger to the community, pending a detention hearing. His detention hearing is scheduled for March 13, 2015 and arraignment on March 20, 2015.
Vranich is charged with manufacturing and possession with intent to manufacture, distribute and dispense a controlled substance, punishable by up to five years in prison; endangering human life while illegally manufacturing a controlled substance, punishable by up to ten years in prison; possession of a firearm in furtherance of a drug trafficking crime, punishable by a consecutive five years in prison; possession of a firearm by a convicted felon, punishable by up to ten years in prison.
On December 30th, 2014, at approximately 4:00 a.m., 911 Emergency Services received a call, regarding an explosion originating from an apartment in Stuart, Florida. In the apartment, Stuart Police Department (SPD), Martin County Sheriff’s Office (MCSO), Martin County Fire Rescue (MCFR), Stuart Fire Rescue (SFR) and State Fire Marshal’s Office discovered a smoldering fire and a large industrial vacuum drying oven with a timing device. DEA and Hazardous Material Unit (Hazmat) determined that the chemicals, equipment and other items were consistent of a Butane Hash Oil (BHO) laboratory. A witness identified Daniel Paul Vranich and his girlfriend, as the couple who had been living in the apartment for the past year, with their twin baby girls. SPD detectives found large glass cylinders containing approximately 20 pounds of marijuana, numerous empty butane cans, air pumps/compressors, a 1.9 cubic foot vacuum oven, wax paper with approximately 48 grams of BHO, a food saver sealing machine, two digital scales, electric grinder, money counting machine, vacuum chamber, and numerous containers and storage bags. SPD detectives also found a loaded Sig Sauer .45 caliber pistol and numerous personal documents belonging to Vranich.
According to the criminal complaint, hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter by passing liquid butane through a glass cylinder packed with marijuana plant matter, like those found in Vranich’s apartment. As the butane passes through the cylinder, the crystallized resins containing THC are dissolved in the butane. As the solvent (butane & resins) exits the cylinder, it is caught in a glass container, like that found in Vranich’s apartment. Because butane vapor is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.
Mr. Ferrer commended the investigative efforts of the ATF, DEA, SPD, MCSO, MCFR, SFR and State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced for Depositing Money Supporting the Distribution of MethamphetamineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that on March 5, 2015, Ou Chiew Saetern, 36, was sentenced to 37 months of imprisonment for one count of Conspiracy to Commit Money Laundering. Saetern was indicted on February 20, 2013 and plead guilty on January 27, 2014. He has been in-custody since December 2013.
According to the documents filed with the court, Saetern conspired with others to transfer the proceeds of methamphetamine sales from Alaska to California. In furtherance of the scheme, between January 2011 and May 2011, Saetern made four deposits to banks in Alaska totaling $27,500. Saetern knew that the money represented drug trafficking proceeds obtained as a result of the unlawful distribution of methamphetamine. The money was withdrawn by other members of the conspiracy in California within a day or days of the deposits to keep the supply of controlled substances flowing.
Ms. Loeffler commends the Drug Enforcement Agency, Alaska State Troopers, and the IRS Criminal Investigation for their investigation of this case.
Leader of Imperial Gangsters Convicted in Five Murders, One Attempted Murder and Other Gang-Related CrimesRead the Press Release
A leader of the Imperial Gangsters street gang was convicted by a federal jury in the Northern District of Indiana of five counts of murder in aid of racketeering, one count of attempted murder in aid of racketeering, one firearms count related to the attempted murder, one count of engaging in a RICO conspiracy, one count of engaging in a conspiracy to distribute narcotics, and related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana made the announcement.
Juan Briseno aka “Tito”, 25, of Hammond, Indiana, was part of a 24-defendant indictment alleging that members of the Imperial Gangsters committed 13 homicides in East Chicago, Hammond and Gary, Indiana. The indictment also charged a decade-long racketeering conspiracy that involved 19 additional attempted murders and the large scale distribution of cocaine and marijuana. Sentencing is scheduled for June 15, before Chief Judge Philip P. Simon of the Northern District of Indiana.
According to evidence presented at trial, the Imperial Gangsters had a standing rule to shoot on sight any rival gang member. They also had a policy to shoot anyone selling drugs in their neighborhood without their permission. Briseno was convicted of five murders, which the evidence demonstrated were committed pursuant to the gang’s policies and in furtherance of the 149 th Street Imperial Gangsters, a violent clique of the Imperial Gangsters based in East Chicago.
The evidence further demonstrated that Briseno exercised a leadership role in the gang, in which he supervised the “shorties, or prospective members of the 149th Street Imperial Gangsters. Briseno expressed no remorse for his participation in various murders, and indeed bragged about killings and encouraged others to do the same.
With regard to the specific murders, the evidence at trial demonstrated that Briseno knocked on Luis Ortiz’s apartment door in Hammond, Indiana, on Sept. 26, 2007, and shot him dead in the doorway to the apartment. Briseno targeted Ortiz because he was a member of the rival Latin King Street Gang.
Additionally, the evidence demonstrated that Briseno committed the double murder of Miguel Mejias, a Latin King living in Imperial Gangster territory, and Michael Sessum, an associate of Mejias, while they were unarmed and bringing takeout food to their pregnant girlfriends on June 3, 2008. During that murder, multiple shots fired by Briseno entered Mejias’ residence, striking a female victim in the arm while she was holding her infant child. Another pregnant female victim and multiple minor victims were also in the apartment at the time of the shooting. According to testimony at trial, Mejias implored another individual to tell Briseno that he was no longer “gangbanging” and did not want any trouble. In response to this message, Briseno said, “[explecetive] him, he was going to bring [Latin] Kings into our neighborhood.”
The evidence at trial also demonstrated that Briseno and his associates murdered rival Two-Six gang member, Miguel Colon, on Feb. 7, 2010, as Colon came out of a party. In this incident, Briseno and Colon exchanged gunfire, endangering numerous innocent individuals who were in the vicinity.
Finally, the evidence at trial demonstrated that Briseno murdered Latroy Howard on June 19, 2010, for selling drugs in an Imperial Gangster-controlled neighborhood without the permission of the gang. A video introduced at trial showed Briseno circling the block in his car and then walking up on foot and shooting the unarmed Howard twice in the head at point-blank range.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the East Chicago Police Department, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area Program. This case is being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.
Lake City Man Pleads Guilty to Federal Charge of Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced that Samuel Franklin Crews (32, Lake City) today pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of five years, up to 20 years, in federal prison, and a potential life term of supervised release. Crews was arrested on December 31, 2013, in Lake City and has been in federal custody since that time. A sentencing hearing has not yet been set.
According to court documents, an agent with the Federal Bureau of Investigation in Jacksonville began an undercover investigation to identify individuals in that area who had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in the Lake City area was hosting images of child pornography using a peer-to-peer file sharing program and was able to download several videos depicting child pornography from this computer. Information from the Internet service provider traced the subscriber information to Crews’s Lake City residence.
On June 5, 2013, law enforcement executed a federal search warrant at Crews=s residence and seized his computer. Crews told the agents, among other things, that he had come across child pornography using a file sharing program on the Internet and became “curious,” searched for and downloaded more child pornography using certain search terms, and knew that viewing such material is harmful to children. A subsequent analysis of Crews’s computer revealed that it contained 124 images and 10 videos depicting the sexual abuse of minor children.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Columbia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jill Westmoreland Rose to Serve as Acting United States Attorney for the Western District of North CarolinaRead the Press Release
CHARLOTTE, N.C. – Jill Westmoreland Rose will become the Acting United States Attorney for the Western District of North Carolina (WDNC), following the departure of U.S. Attorney Anne M. Tompkins on March 9, 2015. Ms. Rose served as the First Assistant U.S. Attorney to Ms. Tompkins.
Ms. Rose has been an Assistant United States Attorney (AUSA) in the Western District since 1999. During her 16-year tenure with the U.S. Attorney’s Office, Ms. Rose has served as lead attorney for WDNC’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, Deputy Criminal Chief, Chief of the Criminal Division and First Assistant United States Attorney. Over the course of her career as a federal prosecutor, Ms. Rose has handled a variety of cases, including domestic and international drug trafficking and money laundering, violent crime, financial fraud, domestic terrorism and national security cases. Notably, Ms. Rose prosecuted the nation’s first successful federal death penalty case against MS-13 gang member Alejandro Enrique Ramirez Umana (U.S. v. Ayala et al., 3:08-cr-134) and the nation’s first successful federal death penalty case involving the Violence Against Women Act (U.S. v. Barnette, 3:97-cr-23).
While serving as WDNC’s Chief of the Criminal Division, Ms. Rose was member of the Attorney General’s Criminal Chief’s Working Group, advising the Attorney General and the Deputy Attorney General on substantive legal and law enforcement issues.
Prior to becoming an AUSA, Ms. Rose was an Assistant District Attorney for the 29th Prosecutorial District of North Carolina (1990-1999).
Ms. Rose graduated from the University of North Carolina at Chapel Hill in 1987 and Campbell University School of Law in 1990. Ms. Rose is a member of the Harry C. Martin Chapter of the American Inns of Court.
Jacksonville Woman Pleads Guilty to Conspiracy to Defraud the United States and Aggravated Identity TheftRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Laura Butler (40, Jacksonville) has pleaded guilty to conspiracy to defraud the United States and one count of aggravated identity theft. She faces a maximum penalty of seven years in federal prison, with a two-year mandatory minimum term of imprisonment.
Butler was indicted on September 10, 2014. Her co-defendant, Cherica Daniels, pleaded guilty to the same charges on February 25, 2015.
According to the plea agreement, Butler worked at Blue Cross Blue Shield of Florida in 2011, where she had access to subscribers’ personal identifying information. During her employment, she accessed several subscribers’ identities and later used them to complete false and fraudulent federal income tax returns.
The case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
Italian Shipping Company Fined $2.75 Million for Environmental CrimesRead the Press Release
Carbofin S.p.A., an Italian domiciled company that owned and operated the M/T Marigola was sentenced to pay an overall criminal penalty of $2.75 million by the Honorable Virginia M. Hernandez Covington for knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Middle District of Florida.
Out of the $2.75 million criminal penalty, $600,000 will be paid to the National Marine Sanctuary Foundation for the benefit of Florida’s only national marine sanctuary: the Florida Keys National Marine Sanctuary. The funds are to be used to support the protection and preservation of natural resources located in and adjacent to the sanctuary, including the cleanup and remediation of pollution in the sanctuary; restoration of injured resources, particularly coral reefs and seagrass beds and species dependent on those habitats. The funds will also support scientific research in, and public education about, the Florida Keys National Marine Sanctuary.
During 2013 and 2014, on numerous international voyages, senior members of the crew of the M/T Marigola directed the installation and use of a so-called “magic hose” to dispose of sludge, waste oil and oil-contaminated bilge water directly into the sea bypassing required pollution prevention equipment. On April 16, 2014, the vessel called upon the Port of Tampa to load anhydrous ammonia. Coast Guard inspectors boarded the vessel and were approached by two junior engineering crew members who showed the inspectors a video of the “magic pipe” hooked up between piping leading to the bilge tank and the vessel’s boiler blow down valve. The boiler blow down valve is a discharge point for the boiler to release hot water and steam. The inspectors had the valve removed and an oily black substance was discovered. Oil samples taken from the “magic hose,” the bilge piping and the boiler blow down valve matched. The Chief Engineer, Carmelo Giano, and the Second Engineer, Alessandro Messore, had previously pleaded guilty and were sentenced for their role in ordering the use of the “magic hose” to illegally discharge oily waste into the sea.
“We are extremely grateful to the U.S. Department of Justice in supporting the work of the National Marine Sanctuary Foundation on behalf of the nation's marine sanctuaries, including here at the Florida Keys National Marine Sanctuary,” said President and CEO Jason Patlis of the National Marine Sanctuary Foundation. “These funds will go to critical education, research and restoration activities, including deployment of mooring buoys, coral reef restoration and study and mitigation of invasive species impacts.”
“Marine environmental protection is one of the Coast Guard's primary missions,” said Captain Gregory Case of the Port at Sector St. Petersburg. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future illegal oil discharges into the sea.”
Consistent with requirements in the APPS regulations, a vessel like the M/T Marigola, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person or persons in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS). Waste oil and sludge can only be disposed of using an on-board incinerator or by discharging the waste to a shore-side facility, barge or tanker truck. Giano and Messore falsified the oil record book by not recording that oily waste was being disposed of through the boiler blow down valve.
During the course of the investigation, it was revealed that the oil record book for the M/T Marigola was falsified since at least June 16, 2013. The investigation also revealed that illegal oily waste discharges had occurred from two other vessels owned and operated by Carbofin, the M/T’s Marola and Solaro. On the M/T Marola, a “magic hose” was used between on or about December 2012 and April 2013 and on the M/T Solaro between on or about February to August 2013.
The case was investigated by U.S. Coast Guard Sector St. Petersburg and the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and Matthew Mueller of the U.S. Attorney’s Office of the Middle District of Florida.
Indictment Unsealed Charging Six Individuals as a Part of Alleged CC Brown Home Loan Modification Services SchemeRead the Press Release
SALT LAKE CITY - A 40-count federal indictment unsealed late Thursday afternoon in U.S. District Court in Salt Lake City charges six individuals with violations of federal law in what the indictment alleges was a scheme to market and sell home loan modification services to distressed homeowners trying to save their homes from foreclosure following the financial crisis of 2008. Investigators believe the alleged scheme involved more than 10,000 victims in nearly every state in the country with losses of more than $33 million.
Charged in the indictment are Chad Gettel, age 39, of Salt Lake City, John McCall, age 43, of Park City, Noemi Lozano aka Noemi Sayama, age 24, of San Diego, Sheridan Black, age 66, of South Jordan, James Scott Creasey, age 36, of Riverton, and Jeremiah Barrett, age 33, of Bountiful. Charges in the indictment include conspiracy, mail fraud, wire fraud, telemarketing fraud, conspiracy to commit money laundering, and money laundering.
"The defendants in this case allegedly represented that CC Brown was a business comprised of successful lawyers who targeted individual homeowners with the false promise of quality legal representation and legitimate loan modifications. Their scheme allegedly took advantage of these vulnerable homeowners who were desperate to secure some financial relief and save their homes, but ended up in even deeper financial trouble. The indictment makes clear that anyone contemplating similar crimes will be investigated and prosecuted and warns potential victims to be extremely cautious before paying fees to anyone offering financial rescue,” U.S. Attorney Carlie Christensen said today.
The indictment alleges that the object of the conspiracy for the defendants was to market and sell loan modification services using false and fraudulent pretenses to obtain money from customers and to enrich themselves.
According to allegations in the indictment, Gettel and Lozano started their loan modification business in July 2009 and set up CC Brown Law LLC. They hired attorneys to create the false impression that their loan modification business was a law firm. According to the indictment, attorneys provided little to no actual legal services for individual customers, while misrepresenting to the public that the attorneys were providing the core legal services for which the customers were paying. In fact, the indictment alleges, non-attorney “processors” and telemarketers working for them performed most if not all of the work for customers seeking loan modifications.
In August 2009, according to allegations in the indictment, Gettel obtained information about homeowners who were delinquent on their mortgage payments, and hired third parties, including a telemarketing center in California, to market his loan modification business to these homeowners. Telemarketers pitched CC Brown using false and misleading statements Gettel provided them, including statements that CC Brown had a 90 percent success rate in obtaining loan modifications; offering a money back guarantee on obtaining a successful loan modification; and that CC Brown’s attorneys would provide the loan modification work.
Other misleading statements the defendants caused telemarketers to make to customers included that loan modifications typically occurred in four months; that their attorneys had over 100 years combined experience in real estate law; and that they had obtained over 6,000 successful loan modifications and averaged 300-400 successful loan modifications per month. Customers relied on these misleading and fraudulent statements in purchasing the services of the loan modification businesses, the indictment alleges. Gettel and McCall eventually instructed the telemarketers to sign up every potential customer who called regardless of whether the customer qualified for a home loan modification.
Gettel hired McCall around January 2010. Around April 2010, Gettel and McCall created in-house teams of telemarketers in Utah. Black and Barrett joined CC Brown to work in the Utah telemarketing center. Creasey joined CC Brown in early 2011. Black, Barrett, and Creasey eventually managed or supervised the Utah-based telemarketing operation, the indictment alleges.
Complaints to state and federal agencies in Utah and other states reflected a pattern of fraudulent conduct. Customers would go for months without knowing the status of their loan modification, and those who were already in default continued to receive letters and phone calls from the lender or debt collector. In some instances, customers lost their homes to foreclosure while still waiting for word on their loan modification from CC Brown.
The case is being investigated by special agents of the U.S. Treasury’s Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); IRS Criminal Investigation; the FBI; Office of Inspector General Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; and the Federal Housing Finance Agency-Office of Inspector General.
“These individuals are accused of using the banner of a law firm to defraud more than 10,000 struggling homeowners residing in nearly every state out of more than $33 million. SIGTARP and our law enforcement partners are shutting down mortgage modification fraud— a reprehensible crime that preys upon struggling homeowners who are seeking help from the Home Affordable Modification Program (HAMP) because they are desperate to save their homes from foreclosure and keep a roof over their families’ heads.” said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
“Taking advantage of desperate homeowners is a deplorable act. Fraudulent loan modification schemes, which raise false hopes with phony promises of legal representation, take advantage of struggling homeowners willing to do almost anything to save their homes. Individuals committing loan modification fraud profit from that desperation,” Mary Rook, Special Agent in Charge of the FBI said.
“The indictments of the individuals alleged to have committed this fraudulent loan modification scheme should serve as a continued warning to anyone contemplating this type of fraud that their actions will be fully investigated and vigorously prosecuted,” stated John G. Collins, Special Agent in Charge of Utah for IRS Criminal Investigation.
“Along with our law enforcement partners, we are committed to ensuring that individuals who fraudulently undermine key government programs intended to support consumers of financial services are held accountable to the fullest extent of the law,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau.”
“This alleged scheme was complex and callous in its attempt to prey on those in need. Our office, along with our law enforcement partners, will continue to combat the fraud that victimizes troubled families, and Fannie Mae and Freddie Mac,” Federal Housing Finance Agency-Office of Inspector General Special Agent in Charge Barry McLaughlin stated.
Arrests warrants were executed Thursday. Gettel, McCall, Black, Creasey and Barrett were arrested in Utah. An initial appearance for these defendants is set for Friday at 3 p.m. before U.S. Magistrate Judge Evelyn Furse. Lozano was arrested in Los Angeles, where she had an initial appearance Thursday afternoon. She was released on a $50,000 security bond and must wear an ankle monitor. She was ordered to appear in federal court in Salt Lake City on March 19.Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The potential maximum penalties for the counts charged in the indictment include up to 30 years for each count of conspiracy, mail fraud and wire fraud; a term of up to 10 years for the telemarketing fraud allegation; up to 20 years for conspiracy to commit money laundering; and up to 10 years for each count of money laundering. Gettel is charged in all 40 counts of the indictment. McCall is charged in counts 1-5 and 7-40 (39 counts). Lozano is charged in counts 1 and 6. Creasey is charged in count 1 and counts 14-17 (5 counts). Barrett is charged in count 1 and counts 18-22 (6 counts) and Black is charged in count 1 and counts 23-29 (8 counts).
If you have information regarding C.C. Brown and related entities, or individuals identified in the indictment, please contact the FBI at 1-877-236-8947. Please select option 2, case update.
For further information regarding this matter, please go online at http://www.fbi.gov/stats-services/victim_assistance/c.c.-brown-company-loan-modifications
Indictment Unsealed and Additional Defendant Charged for One of the Largest Reported Data Breaches in U.S. HistoryRead the Press Release
ATLANTA - A criminal indictment was unsealed yesterday against Viet Quoc Nguyen and Giang Hoang Vu, both citizens of Vietnam, who resided for a period of time in the Netherlands, for their role in a massive data breach of Email Service Providers all over the United States. In addition, a federal grand jury returned an indictment this week against David-Manuel Santos Da Silva, a citizen of Canada, who is charged with conspiring with Nguyen and others to money launder the proceeds of Nguyen’s computer hacking offenses.
“This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney John Horn. “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”
“These men — operating from Vietnam, the Netherlands, and Canada — are accused of carrying out the largest data breach of names and email addresses in the history of the Internet,” said Assistant Attorney General Caldwell. “The defendants allegedly made millions of dollars by stealing over a billion email addresses from email service providers. This case again demonstrates the resolve of the Department of Justice to bring accused cyber hackers from overseas to face justice in the United States.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Large scale and sophisticated international cyber hacking rings are becoming more problematic for both the law enforcement community that is faced with the challenges of identifying them and laying hands on them, but also the Fortune 500 companies that are so often their targets. The federal indictments, apprehensions, and extradition in this case represents several years of hard work as the FBI and its cadre of cyber trained agents and technical experts acted quickly to stop the ongoing damage to the numerous victim companies as a result of these individuals’ hacking activities. In August, 2012, the FBI, with the assistance of its legal attachés stationed abroad, and in conjunction with Dutch law enforcement officials, executed a search warrant in the Netherlands that disrupted continued compromises of those companies while allowing U.S. authorities to advance its investigation. That investigation targeted not only the hackers but the businesses that helped monetize the data that was stolen from those victim companies. This case further reflects the productive partnership of the FBI and the U.S. Secret Service in aggressively addressing this 21st century crime problem.”
“Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Reginald Moore, Special Agent in Charge of the Atlanta Field Office. “The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice. This case demonstrates there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”
“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation is committed to unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Between approximately February 2009 and June 2012, Viet Quoc Nguyen allegedly hacked into at least eight Email Service Providers (ESPs) all over the United States, including two ESPs based in the Northern District of Georgia, and stole confidential information, including proprietary marketing data containing over one billion email addresses.
Email Service Providers are companies that generally offer legitimate email marketing or bulk email services to their clients. Clients hire ESPs to assist with sending bulk emails to customers or potential customers who have opted to receive such emails. “Spam,” by contrast, is a commonly-used term for unsolicited email. ESPs generally take affirmative steps to ensure that their email campaigns are not blocked or classified as “spam” by the recipients’ email programs.
Nguyen allegedly hacked into the ESPs’ computer databases and, in conjunction with Vu, used his unauthorized access to launch spam attacks on tens of millions of email recipients. The data breach into certain ESPs was the subject of a congressional inquiry and testimony before a U.S House of Representatives subcommittee on June 2, 2011.
The indictment alleges that Nguyen used various methods to gain unauthorized access into the ESPs’ computer databases. In some instances Nguyen allegedly directed email phishing campaigns at employees of the ESPs, which are fraudulent emails designed to resemble emails from trustworthy persons or entities, but in fact are designed to trick the recipients into clicking a link on the email. Nguyen’s phishing campaigns allegedly delivered malware, which allowed him backdoor access to the ESP employees’ computer systems and enabled him to steal sensitive information, including the employees’ access credentials for the ESPs’ computer systems. Using stolen access credentials, Nguyen was not only able to allegedly steal confidential information by downloading the information from the ESPs’ computer systems to a server that he controlled in the Netherlands, but was also able to utilize the ESPs’ computer systems to launch spam attacks on tens of millions of stolen email addresses.
A federal grand jury returned a 29-count sealed indictment against Nguyen, 28, and Vu, 25, on October 3, 2012. The indictment was unsealed in its entirety for the first time yesterday. Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014. On February 5, 2015, Vu pleaded guilty to conspiracy to commit computer fraud. He is scheduled to be sentenced on April 21, 2015, at 10:00 am, before the Honorable Timothy C. Batten Sr. Viet Quoc Nguyen is not in custody and remains a fugitive.
On Wednesday March 4, 2015, David-Manuel Santos Da Silva, 33, of Montreal, Canada, was indicted by a federal grand jury for conspiracy to commit money laundering with Nguyen and others. Da Silva was arrested by criminal complaint at Ft. Lauderdale International Airport, in Florida, on February 12, 2015, and will be arraigned today at 3:00 p.m., before U.S. Magistrate Judge E. Clayton Scofield III, in Atlanta, Georgia.
It is alleged that Da Silva, the co-owner, President and a Director of 21 Celsius, Inc., a Canadian corporation that ran Marketbay.com, entered into an affiliate marketing arrangement with Nguyen that allowed him to generate revenue from his computer hacks. As an affiliate marketer, Nguyen allegedly received a commission on sales generated from internet traffic that he directed to websites promoting specific products. Nguyen allegedly used his computer hacks into the ESPs to direct “spam” attacks to tens of millions of stolen email addresses. The unsolicited emails received through Nguyen’s and Vu’s spam attacks enticed the recipients by promoting specific products and providing hyperlinks for the recipients to purchase the products. The hyperlinks directed the recipients to one of Nguyen’s affiliate marketing websites associated with Marketbay.com.
Da Silva allegedly knew that Nguyen was spamming to stolen email addresses in order to direct high volumes of internet traffic to his affiliate marketing websites with Marketbay.com. Da Silva allegedly conspired with Nguyen and others to promote Nguyen’s hacking and spamming activities by providing him with a platform, through Marketbay.com, to generate sales commission from his computer hacks into the ESPs. Between approximately May 2009 and October 2011, Nguyen and Da Silva received approximately $2 million for the sale of products derived from Nguyen’s affiliate marketing activities.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with the valuable assistance of the United States Secret Service and Internal Revenue Service Criminal Investigation. Law enforcement in the Netherlands also provided valuable assistance.
Assistant United States Attorney Steven D. Grimberg and Trial Attorney Peter Roman with the U.S. Department of Justice Computer Crime and Intellectual Property Section are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Hamtramck Grocery Store Owner Pleads Guilty to Conspiracy and Engaging in Monetary Transaction in Criminally Derived PropertyRead the Press Release
A Hamtramck grocery store owner pleaded guilty to food stamp fraud, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Anthony Mohatt, U.S. Department of Agriculture – Office of Inspector General, Jarod J. Koopman, Internal Revenue Service Criminal Investigation and Colonel Kriste Kibbey Etue, Director, Michigan State Police.
Syed Ali, 42, owner of Modhubon Grocery, Pleaded guilty to conspiracy to defraud the United States and engaging in monetary transactions in criminally derived property. Ali entered the guilty plea before U.S. District Court Judge Matthew F. Leitman.
According to court records, from October 2010 through July 2012, Ali and an employee of Modhubon conspired to defraud the U.S. Department of Agriculture Supplemental Nutrition Assistance Program (SNAP). Ali and Modhubon, an authorized food stamp program retailer, engaged in the fraudulent practice of redeeming benefits for cash and ineligible items from SNAP recipients at a discounted rate. Ali and his employee would then process the purchase of SNAP benefits through the Modhubon Grocery as purchases of eligible food items, obtaining the full dollar amount of the SNAP benefit from the U.S. Department of Agriculture.
In December 2011, Ali cashed a check, drawn on the account of Modhubon Grocery in the amount of $12,000.00. Ali took the cash from the account knowing that it was derived from the proceeds of the theft of SNAP benefits.
As part of his plea agreement, Ali has agreed to pay restitution to the U.S. Department of Agriculture in the amount of $1,844,690.95.“Food stamp fraud victimizes both the recipients of the benefits and the taxpayers that fund the program. We are pleased to collaborate with our law enforcement partners towards the common goal of combatting food stamp fraud”, said IRS Special Agent in Charge Koopman.
The case was investigated by special agents of the U.S. Department of Agriculture – Office of Inspector General, the Internal Revenue Service – Criminal Investigation and the Michigan State Police
A sentencing hearing was set for June 25. The maximum penalty is ten years' imprisonment and a $250,000 fine.Gig Harbor, Wash. Woman Sentenced for Role in Las Vegas Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Gig Harbor woman has been sentenced to six months in prison for participating in an investment fraud scheme that bilked over 50 victims out of millions in cash for almost a decade, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Constance C. Fenton, 70, was sentenced on March 2, 2015, in Las Vegas, by U.S. District Judge Jennifer A. Dorsey. Fenton was also sentenced to six months of home confinement, three years of supervised release, 40 hours of community service, and ordered to pay approximately $2.9 million in restitution. Fenton pleaded guilty in September to one count of conspiracy to commit money laundering. She must report to federal prison by June 2, 2015.
Fenton was one of six persons charged in the investment fraud scheme. According to the plea memoranda, the defendants lured victims into the scheme by falsely telling them that Thomas A. Cecrle, Jr., 57, of Henderson, Nev., worked as a contractor for the U.S. Department of Homeland Security, purchasing and selling water rights worth millions of dollars as part of a secret government program. The conspirators then solicited money by falsely claiming that Cecrle needed short-term cash loans to complete his phantom water deals, loans he promised to repay in short order along with a very large return. Cecrle and his co-conspirators concocted a similar story involving a land deal on the Las Vegas Strip where Cecrle needed short-term loans to supposedly close a deal with Sir Richard Branson. In truth, however, Cecrle held no position with the federal government and there were no land or water rights deals.
Fenton became the voice of the fraud and ran Cecrle’s “boiler room.” As new victims were introduced to the scheme, Cecrle turned them over to Fenton, who quickly established a rapport over the telephone, maintained contact and commiserated with them when the payout never happened, but always reassuring them that it would happen soon if a little more money was poured into the deal. Fenton also told the victims that she was invested and like them, was also expecting a return. Fenton portrayed herself as a religious person and often appealed to the religious beliefs of the victims. Fenton dealt with victims across the United States, at all time of the day and night and, with few exceptions, always by telephone and email, never meeting them face-to-face.
Using his office as a family court judge in Clark County, Nev., defendant Steven E. Jones, 57, of Henderson, Nev., knowingly vouched for Cecrle and the legitimacy of the deals to potential investors when he knew the deals were, in fact, scams. Jones continued to further the conspiracy by receiving money from a victim in the parking lot of the Family Division Courthouse, meeting with at least one potential investor in his chambers and elsewhere in the courthouse to discuss the investment, obtaining an “Own Recognizance” bond to release Cecrle from custody after he was arrested for bad checks he had passed to a victim, and opening and maintaining a joint checking account with Cecrle, through which flowed over $260,000 in illegal proceeds.
During the entire conspiracy, which lasted from about September 2002 to October 2012, the defendants defrauded at least 22 victims of more than $2.6 million, money they quickly converted to their own use.
All of the co-defendants pleaded guilty and have been sentenced. Cecrle was sentenced on March 2, 2015, to 6½ years in prison. Jones was sentenced on Feb. 25, 2015, to 26 months in prison. Terry J. Wolfe, 59, of Henderson, Nev., was sentenced on Feb. 19, 2015, to time served, having served approximately 16 months in pretrial detention. Mark L. Hansen, 56, of Corvallis, Ore., was sentenced on Jan. 27, 2015, to four months in prison. Ashlee M. Martin, 31, of Las Vegas, Nev., entered into a 12-month pretrial diversion agreement with the government.
The case was investigated by the FBI and prosecuted by First Assistant U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Daniel R. Schiess of the U.S. Attorney’s Office for the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Former School Teacher Sentenced to 60 Years for Producing Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – Joseph Michael Diaz, 32, was sentenced today by Senior United States District Judge Maurice M. Paul to 60 years in federal prison for producing child pornography. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
In September 2014, Diaz pled guilty to two counts of enticing and coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Diaz=s offense came to light when a child told his parents that he had been involved in an inappropriate sexual relationship with the defendant. Diaz was a private swim coach and a teacher at High Springs Community School. Investigators subsequently identified multiple children who had been sexually abused by the defendant. Diaz’s cell phones and computer hard drive contained numerous images of the sexual abuse of the children, all of whom were under 16 years of age. Investigators conducted a forensic examination of the phones, computer, and images, identifying the location and time that each of the videos was created. The abuse occurred over a period of several years.
In addition to the prison sentence, Diaz was ordered to pay $78,000 in restitution to each of his eight victims.
United States Attorney Marsh praised the work of the Gainesville Police Department and the Child Advocacy Center. The case was prosecuted by Assistant United States Attorneys Frank Williams and Gregory McMahon.
“The United States Attorney’s Office for the Northern District of Florida is committed to prosecuting child predators,” said United States Attorney Marsh. “Children are the most vulnerable and innocent members of our district, and it is especially tragic that someone serving as a coach and teacher abused his position of trust in our community.”
“Justice is served,” said Gainesville Police Chief Tony Jones. “This case shows the partnership between local law enforcement, the Child Advocacy Center, and the United States Attorney’s Office and is only possible because of the hard work of everyone involved. As a result, Diaz will not be able to victimize another child.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Richmond County Coroner Indicted on Federal Credit Card Fraud & Identity Theft ChargesRead the Press Release
AUGUSTA, GA: Grover F. Tuten, Jr., 72, the former Coroner for Richmond County, Georgia, was indicted earlier this week by a federal grand jury sitting in Savannah on charges related to his repeated and fraudulent use of a deceased person’s debit card. The indictment alleges that Tuten received cash payments as a result.
Tuten faces a federal charge of fraudulently using a debit card without authorization. If convicted, Tuten faces a maximum sentence of 10 years in prison and a $250,000 fine. Tuten also faces a count of aggravated identity theft. If convicted of that charge, Tuten would receive an additional 2-year prison sentence, consecutive to any other sentence imposed. Tuten already faces state charges of theft by taking and violation of oath by a public officer and is being prosecuted by the District Attorney’s Office for the Augusta Judicial Circuit.
U.S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation of Tuten was conducted by the FBI. Assistant U.S. Attorney Lamont A. Belk is prosecuting the federal case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Puerto Rico Police Officer Sentenced for Civil Rights Violations Related to Fatal BeatingRead the Press Release
Former Puerto Rico Police Sergeant Erick Rivera Nazario was sentenced today to serve 96 months in prison followed by three years supervised release for violating the civil rights of Jose Luis Irizarry Perez, 19, by striking him with a police baton during a fatal police-involved beating, announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
Rivera Nazario pleaded guilty to one count of depriving Irizarry Perez of his civil rights by striking him with a police baton while the young man was injured, restrained, and not posing a threat to others. Two other former Puerto Rico police officers have already been sentenced for their obstructive conduct during the federal investigation into the incident, while three other former Puerto Rico police officers, who also pleaded guilty, are awaiting sentencing for their roles in the beating and subsequent obstruction of the investigation. According to documents filed in connection with the guilty pleas, Rivera Nazario and another former Puerto Rico police officer violated the constitutional rights of Irizarry Perez by striking him with their police batons while another former police officer physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release. During the three-year term, the defendant will be under federal supervision, and risks additional prison time should he violate any terms of his supervised release.
“The department remains steadfastly committed to prosecuting excessive force by police officers and today’s sentence reflects the severity of such criminal conduct,” said Acting Assistant Attorney General Gupta. “Although nothing can replace the tragic loss of life that resulted from the police-involved beating, I hope that this sentence helps to provide some sense of closure for Jose Luis Irizarry Perez’s family.”
“The U.S. Attorney’s Office will continue to defend the civil rights of the people of Puerto Rico,” said U.S. Attorney Rodriguez-Vélez. “It is appalling that law enforcement officers choose to violate their oath of office and abuse their position to deprive people of their civil liberties.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.
Former Palmer Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – Joshua Pelosi, 36, was sentenced on March 4, 2015 by U.S. District Court Judge Mark G. Mastroianni to 37 months in prison and six years of supervised release for failing to register as a convicted sex offender. In October 2014, Pelosi pleaded guilty to two federal counts of failing to register as a sex offender.
Pelosi, after being released from prison in New York for failing to register as a sex offender, traveled from New York to Massachusetts and settled in the Commonwealth without notifying law enforcement authorities. In April 2014, Pelosi traveled from Massachusetts to South Carolina and once again failed to register as a sex offender.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Environmental Inspector Sentenced for Falsifying EPA ReportsRead the Press Release
BOSTON – A former state pesticide manufacturing facility inspector was sentenced on March 4, 2015 in U.S. District Court in Springfield for making false statements on inspection reports he submitted to the U.S. Environmental Protection Agency.
Paul Ricco, 54, of Springfield, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 24 months of probation. In November 2014, he pleaded guilty to 15 counts of making false statements.
From March 2010 through May 2012, Ricco was in charge of the Producer Establishment Inspection program at the Massachusetts Department of Agriculture where he inspected establishments that produce, sell and/or distribute pesticides. During that time period, Ricco submitted 15 false reports of purported inspections that he never performed. Ricco submitted the false reports to the EPA to conceal the fact that he was not performing environmental inspections which he was required to perform. Those inspections were necessary to insure that pesticide manufacturers across the state were producing and packaging pesticides safely.
United States Attorney Carmen M. Ortiz and Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division, Boston Field Office, made the announcement. The case was prosecuted by Assistant U.S. Attorney Carlos A. López.
District Man Sentenced to 7 ½ Years in Prison for String of Armed Robberies in Northwest Washington Defendant Committed Crimes While on Supervised Release from Earlier ConvictionRead the Press Release
WASHINGTON – Diamond Cooper, 35, of Washington, D.C., was sentenced today to a 7 ½-year prison term for a series of armed robberies, carried out while he was on supervised release for a prior conviction, U.S. Attorney Ronald C. Machen Jr. announced.
Cooper pled guilty in December 2014, in the Superior Court of the District of Columbia, to one count of armed robbery, one count of attempted robbery, and one count of second-degree theft. He was sentenced by the Honorable John McCabe. Upon completion of his prison term, Cooper will be placed on five years of supervised release.
According to the government’s evidence, Cooper committed three separate armed robberies in Northwest Washington within a 24-hour period. Beginning on the evening of Sept. 5, 2014, he stole a victim’s iPhone and cash in the 1700 block of Swann Street NW. At gunpoint, the victim was forced to stay on the ground and count while Cooper fled the scene. Then, less than 24 hours later, Cooper committed similar armed robberies in the 1400 block of R Street NW and the 1400 block of Florida Street NW. In both robberies, Cooper instructed the victims at gunpoint to lay on the ground and count or they would be shot.
After the last robbery, members of the Metropolitan Police Department (MPD) tracked a stolen iPhone to Cooper’s location, where he was in possession of a BB gun and one of the victim’s iPhones. Cooper was arrested on Sept. 6, 2014.
At the time of his arrest, Cooper was on supervised release following his conviction in 2006 on drug offenses.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department’s Third District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Allison Daniels and Assistant U.S. Attorney Christopher Macchiaroli, of the Felony Major Crimes Trial Section, who prosecuted the matter.
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