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Wednesday 21 January 2015
Georgia Man Pleads Guilty in Wire Fraud Scheme That Bilked Airlines by Obtaining Free ‘Non-Rev’ Tickets for Non-EmployeesRead the Press Release
LOS ANGELES – A Georgia man who fraudulently booked airline reservations by pretending to be a flight crew member pleaded guilty today to a federal wire fraud offense.
Gilbert Myers Jr., 38, of Atlanta, pleaded guilty this afternoon to conspiracy to commit wire fraud, a charge that carries a statutory maximum penalty of 20 years in federal prison.
Myers admitted orchestrating a conspiracy to defraud air carriers in which travelers would illegally board aircrafts while pretending to be employees of other airlines. In exchange for arranging their travel as “non-rev” employee travelers, Myers typically charged approximately $2,000 for one year of unlimited free flights.
Myers fraudulently booked hundreds of flights on victim airlines that include AirTran Airways, JetBlue Airways, Spirit Airlines, Sun Country Airlines and United Airlines.
The fraudulent travelers utilized Myers’ services to fly in and out of Los Angeles County airports by pretending to be in-flight crew members employed by other airlines. To obtain boarding passes and stand-by tickets (for which airline employees pay little or nothing, hence non-revenue), Myers called the victim airline’s reservation call center and gave the victim airline’s representative the name of a traveler, the airline he supposedly worked for, a bogus employee identification number, and a date of hire. Myers typically lied to the victim airline and said he worked on a flight crew for another airline, according to court documents.
Myers advised the fraudulent travelers to avoid detection by dressing appropriately and how to respond to questions about their employment at another airline. With the fraudulently obtained boarding pass and their real photo identification, the fraudulent travelers went through Transportation Security Administration security screening. The fraudulent travelers boarded planes listed as employees of other airlines. All of the travelers were subject to full security screenings by the Transportation Security Administration.
In the plea agreement, Myers admitted to several specific, fraudulent booking calls. As part of the conspiracy, Myers acknowledges that he “fraudulently booked these and hundreds of other flights with victim airlines.”
Myers pleaded guilty before United States District Judge Dean D. Pregerson, who scheduled a sentencing hearing for April 30.
In his plea agreement, Myers agrees that Judge Pregerson may order him to pay restitution to the victims. The fair market value of the fraudulently obtained plane tickets was more than $277,000, and attorneys in the case agree that the applicable amount of restitution is approximately $91,660.
All of the victim airlines fully cooperated in the investigation.
The case against Myers is the result of an investigation by the FBI’s Joint Terrorism Task Force.
Release No. 15-007
Galena Woman Sentenced for Stealing $300,000 from EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Galena, Mo., woman has been sentenced in federal court for embezzling more than $300,000 from her employer.
Sarah N. Underwood, 36, of Galena, was sentenced by U.S. District Judge Beth Phillips on Tuesday, Jan. 20, 2015, to two years and six months in federal prison without parole. The court also ordered Underwood to pay $311,280 in restitution to Fall Creek Condominium and $95,008 in restitution to the Internal Revenue Service, for total restitution payments of $406,288.
On March 17, 2014, Underwood pleaded guilty to wire fraud, money laundering and failure to file a tax return. Underwood worked as the community manager for Fall Creek Condominium in Branson, Mo., from Jan. 15, 2007, until she was fired on Sept. 7, 2012, when her theft was discovered. Fall Creek and its owners association has 639 condominiums owned by individuals and under its association. Among other duties, Underwood was responsible for the book-keeping and financial affairs of Fall Creek, and was an authorized signatory on the checking accounts.
Underwood’s wire fraud, money laundering scheme, and tax fraud extended over two years and totaled $406,288 in losses to her employer and the government.
Underwood conducted numerous unauthorized electronic bank transfers and wrote $311,280 in unauthorized checks from the bank accounts of the Fall Creek Condominium Owner’s Association over a two-year period. Underwood also received two paychecks every two weeks from Fall Creek. Underwood deposited these checks into her bank accounts and spent the money on personal expenses and purchasing luxury items.
For example, Underwood admitted that she spent $76,287 to purchase a Shelby Mustang and used $25,505 to purchase a condominium at Fall Creek. Underwood also purchased a 2012 Harley-Davidson motorcycle and a 2012 Yamaha wave-runner.
Underwood used a cashier’s check written on her employer’s bank account to purchase a 2012 Ford F350 Super Duty 4X4 Crew Cab Truck for $56,169. The truck was registered to Mstrmind Enterprises, a company owned by her and her boyfriend, which performed construction and rehabilitation work at Fall Creek. Underwood was responsible for running the business affairs of Mstrmind, while her boyfriend, who was also employed by Fall Creek, was the project manager and responsible for the actual construction or rehabilitation project. The embezzlement scheme included an $80,000 check written to Mstrmind for work that was never performed.
Underwood also admitted that she failed to file federal tax returns for 2010, 2011 and 2012.
According to court documents, after pleading guilty in this case, Underwood became involved in another incident that further casts suspicion on her because of monies from a not-for-profit organization that were in her possession and went missing. On May 13, 2014, the Branson, Mo., Police Department received a report from Biker’s Against Drunk Drivers (BADD) regarding the possible theft of a bank deposit totaling $1,997. Although BADD chose not to proceed with a criminal prosecution, court documents note, Underwood engaged in behavior that placed her under suspicion for theft and fraud while she was facing a sentencing for similar conduct perpetrated against a different victim.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Four from Northeast Ohio Indicted for Defrauding State Unemployment Agencies out of $1.1 MillionRead the Press Release
A 38-count federal indictment was filed charging four people from Northeast Ohio with conspiring to defraud states out of more than $1.1 million in unemployment insurance benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Juan Sanders, 34, of Cleveland Heights; Trina Grant, 36, of Cleveland; Ashley Robinson, 30, of Warrensville Heights, and Robert Barrett, 40, of Cleveland. The charges include conspiracy to commit mail and wire fraud, wire fraud, mail fraud and aggravated identity theft. Sanders faces an additional count of aggravated identity theft.
“These defendants took advantage of a program designed to help people out of work and instead used it to enrich themselves,” Dettelbach said. “We will prosecute waste, fraud and abuse of government programs.”
The indictment alleges that the defendants conspired to defraud state unemployment offices in Ohio, California, North Carolina, Massachusetts and Illinois from about September 2011 to January 2014. Under this scheme, Sanders fraudulently obtained personal identifying information from unsuspecting individuals to submit fraudulent claims for unemployment insurance benefits.
Sanders also created state unemployment insurance accounts for multiple fictitious employers in Ohio, California, North Carolina, Massachusetts and Illinois. Sanders then filed claims from “employees” who had been purportedly laid off by the fictitious companies. Sanders caused benefit debit cards for the “employees” of these fictitious companies to be mailed to various addresses in Ohio, according to the indictment.
Once the benefits were loaded or reloaded onto the debit cards, Sanders, Grant, Robinson and Barrett used the debit cards at various ATMs in Ohio and withdrew the fraudulently obtained money, according to the indictment.
The indictment charges that as a result of this scheme, approximately $1,174,767 in fraudulent unemployment benefits were paid from state agencies in North Carolina ($572,170), Ohio ($261,509), Illinois ($144,240), California ($129,600) and Massachusetts ($67,248).
Sanders used $16,900 in fraudulently obtained cash to pay off a car loan on his 2007 Jaguar XJ automobile as well as several months’ rent on a Cleveland Heights apartment, according to the indictment.
The case is being prosecuted by Assistant United States Attorneys Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former elementary school guidance counselor sentenced for painkiller distributionRead the Press Release
WHEELING, WEST VIRGINIA – Kristyn Elizabeth Fetcko, 34, of Wheeling, was sentenced to 18 months in prison for selling oxycodone while employed as a guidance counselor at Ritchie Elementary School, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Drug Enforcement Administration and the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, revealed that Fetcko sold oxycodone from her Wheeling home as part of a painkiller distribution network led by Brian Schultz, 38, of Triadelphia, West Virginia. Most recently, Fetcko was discovered in possession of oxycodone in January 2014.
As part of her sentence, Fetcko was also ordered to forfeit her interest in nearly $3,905.00 in U.S. currency. She pled guilty in September 2014 to one count of “Aiding and Abetting the Possession with Intent to Distribute Oxycodone.”
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Former Title Company Employee Heads to Prison in Bank Fraud ConspiracyRead the Press Release
HOUSTON – Harris County resident Maria Eliza Garza has been ordered to prison following her conviction in conspiring to defraud seven different Houston-area banks or more than $2 million in 2007 and 2008, announced United States Attorney Kenneth Magidson. Garza pleaded guilty Sept. 4, 2013.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Garza an 18-month sentence to be followed by three years of supervised release. At the hearing, the court noted that Garza was an important player in the scheme and further ordered her to pay $2.078 million in restitution.
As outlined in documents filed with the court and admitted by Garza during her guilty plea, she and a co-conspirator agreed to carry out a check kiting scheme that targeted seven different financial institutions in the Houston area. While the co-conspirator allegedly devised the scheme which used multiple bank accounts held in the name of title companies he controlled, Garza admitted she assisted by discussing which bank accounts needed money, preparing checks to sign and depositing signed checks at the banks.
Garza, of Houston, admitted as part of her plea that she helped carry out the scheme from at least January 2007 through June 2008. To do so, Garza prepared checks drawn on the title companies’ accounts. The co-conspirator signed the checks and both knew the accounts lacked sufficient funds to cover the checks. Garza deposited the checks into other accounts controlled by the co-conspirator, which artificially inflated the account balances. They would then write additional checks using the artificially inflated balances and deposit them into either the original issuing account or other accounts controlled by the co-conspirator.
Garza also admitted she and conducted the scheme to artificially inflate the account balances and place the funds at her co-conspirator’s disposal to use as interest-free loans and lines of credit. They continued to carry out the scheme even after three of the banks discovered the kiting activity and shut down the relevant accounts. When the scheme finally collapsed in June 2008, the total loss to the affected banks was $2,099,65.72.
Garza was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI with assistance from the Harris County District Attorney’s Office and police departments in Webster and Friendswood. Assistant U.S. Attorney John Pearson is prosecuting the case.
Former Spalding County Battalion Chief and Firefighter Sentenced to Prison for Tipping Off Drug DealersRead the Press Release
NEWNAN, Ga. – Former Spalding County Fire Battalion Chief Dwayne Tyrone Coggins and former Firefighter Michael Owens have been sentenced for tipping off drug dealers to police activity in the Griffin, Ga., area. Both were convicted in October 2014, after a jury trial.
“The police thought there was no safer place to gather than a fire station. Instead, Coggins and Owens reported what they saw and heard to drug dealers operating in the area without ever considering the safety of the officers who trusted them with sensitive information,” said Acting United States Attorney John A. Horn. “The Court’s sentences in this case demonstrate that there are real consequences that come from tipping off criminals to police activity.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these two former Spalding County firefighters concludes an unfortunate but very necessary investigation and prosecution. Those who serve within the public safety community should be able to depend on each other, to include their own safety and security as they carry out their duties, and that was not the case with former Spalding County Fire Battallion Chief Coggins and former firefighter Owens. The FBI will continue to provide significant resources toward identifying, investigating, and presenting for prosecution those individuals who betray their badges and their oaths of office.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: Coggins was employed by the Spalding County Ga., Fire Department since 1990 and, most recently, served as a Battalion Chief. Owens had been employed by the Spalding County Ga., Fire Department as a firefighter for approximately four years.
Police regularly gathered at the Spalding County Fire Department before scheduled police activity such as serving arrest warrants. In April and May 2014, Coggins and Owens warned drug dealers about law enforcement activity in the area before it occurred because they had been told by the police about the investigation or had seen officers gathering near the fire station.
Police were unaware that Coggins and Owens were tipping off drug traffickers until they heard the drug dealers talking about the tips on a wiretapped telephone. During a series of wiretapped calls, the drug dealers discussed the specific information provided by the firefighters as well as how they could dispose of the drugs before the police arrived. In one recorded call, Owens himself was intercepted asking whether the drug dealer had already cleaned out the drugs before police executed a search warrant. Owens cautioned the drug dealer that he should immediately remove the drugs out of his stash house before it was too late.
Coggins, 47, of Griffin, Ga., was sentenced to four years in federal prison followed by one year of supervised release, and 100 hours of community service. Owens, 37, also of Griffin, Ga., was sentenced to two years, six months in prison followed by one year of supervised release, and 100 hours of community service. Both were sentenced before United States District Court Judge Timothy Batten.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Kurt R. Erskine and Jeffrey W. Davis prosecuted 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 Newnan Division is http://www.justice.gov/usao/gan/.
Former Rio Arriba County Sheriff Thomas R. Rodella Sentenced to Ten Years in Federal Prison for Criminal Civil Rights and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Thomas R. Rodella, 53, the former Rio Arriba County Sheriff, was sentenced today by U.S. District Court Judge James O. Browning for his conviction on criminal civil rights and firearms charges. Rodella was sentenced to 37 months in federal prison for his deprivation of rights conviction and an additional 84 months for brandishing a firearm while committing the civil rights offense, for an aggregate sentence of 121 months of imprisonment. Rodella will be on supervised release for three years after completing his prison sentence. Rodella also was ordered to pay a $200,000.00 fine.
In announcing Rodella’s sentence, U.S. Attorney Damon P. Martinez said, “When he attacked a defenseless innocent civilian, Sheriff Rodella chose to abuse his power rather than uphold his oath to protect the public. The Justice Department will continue to vigorously investigate and prosecute officers who cross that line because they discredit the noble service of every other law enforcement officer and weaken the public’s trust in those who are sworn to protect them. I commend the prosecutors and investigators for their outstanding work on this case.”
“The American people hold their law enforcement officers to high standards, and those standards are even higher for the leaders of public safety agencies. Although the FBI realizes the majority of officers perform their duties in an exemplary and even heroic manner, we will not hesitate to investigate those who betray the public's trust,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “I want to thank the FBI Special Agents and support staff who worked on this investigation, as well as the U.S. Attorney’s Office for a successful prosecution in this case.”
On Sept. 26, 2014, a federal jury found Rodella guilty of the crimes alleged in a two-count superseding indictment. Both crimes arose out of a March 11, 2014 incident occurring in Rio Arriba County, N.M., during which Rodella engaged in an unjustified high-speed pursuit and unreasonable seizure of a victim identified as “M.T.” Count 1 of the indictment charged Rodella with violating the victim’s civil rights by subjecting him to an unreasonable seizure while acting under color of law. Count 2 charged him with brandishing a firearm during a crime of violence. Rodella was the Sheriff of Rio Arriba County when the jury returned its guilty verdict. He resigned from his position as Sheriff on Sept. 29, 2014.
The trial evidence established that on March 11, 2014, Rodella and his son Thomas Rodella, Jr., who were in Rodella’s personal vehicle, engaged in an unjustified high-speed pursuit of the victim and used the vehicle to block the victim’s vehicle on a dead-end lane. Rodella, who was not in uniform, jumped out of his vehicle with firearm in hand, entered the victim’s vehicle, and assaulted the victim with the firearm. Rodella, Jr., dragged the victim out of his vehicle and identified the victim’s assailant as the Sheriff. When the victim requested to see Rodella’s badge, Rodella pulled the victim’s head up by his hair and slammed his badge into the victim’s face. The victim suffered injuries to his face and his hand as a result of the assault; the injury to the victim’s hand required surgical repair.
The evidence also established that Rodella instructed his deputies to arrest the victim and detain him at the Rio Arriba County Detention Center. The victim was released from custody two days later after appearing before a state magistrate, and the charges against him were dismissed on March 26, 2014. Deputies of the Rio Arriba Sheriff’s Office testified they did not conduct any investigation of the incident or prepare any reports until after the case was dismissed.
The case was investigated by the Albuquerque and Santa Fe offices of the FBI and was prosecuted by Assistant U.S. Attorneys Tara C. Neda and Jeremy Peña.
Former Rio Arriba County Sheriff Sentenced to 121 Months in Federal Prison for Criminal Civil Rights and Firearms ConvictionRead the Press Release
Thomas R. Rodella, 53, the former Rio Arriba County Sheriff, was sentenced today by U.S. District Court Judge James O. Browning for his conviction on criminal civil rights and firearms charges. Rodella was sentenced to 37 months in federal prison for his deprivation of rights conviction and an additional seven years for brandishing a firearm while committing the civil rights offense, for an aggregate sentence of 121 months of imprisonment. Rodella will be on supervised release for three years after completing his prison sentence. Rodella also was ordered to pay a $200,000 fine U.S. Attorney Damon P. Martinez for the District of New Mexico announced.
“When he attacked a defenseless innocent civilian, Sheriff Rodella chose to abuse his power rather than uphold his oath to protect the public,” U.S. Attorney Martinez said. “The Justice Department will continue to vigorously investigate and prosecute officers who cross that line because they discredit the noble service of every other law enforcement officer and weaken the public’s trust in those who are sworn to protect them. I commend the prosecutors and investigators for their outstanding work on this case.”
“The American people hold their law enforcement officers to high standards, and those standards are even higher for the leaders of public safety agencies,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “Although the FBI realizes the majority of officers perform their duties in an exemplary and even heroic manner, we will not hesitate to investigate those who betray the public's trust. I want to thank the FBI Special Agents and support staff who worked on this investigation, as well as the U.S. Attorney’s Office for a successful prosecution in this case.”
On Sept. 26, 2014, a federal jury found Rodella guilty of the crimes alleged in a two-count superseding indictment. Both crimes arose out of an incident occurring on March 11, 2014, in Rio Arriba County, New Mexico, during which Rodella engaged in an unjustified high-speed pursuit and unreasonable seizure of a victim identified as “M.T.” Count 1 of the indictment charged Rodella with violating the victim’s civil rights by subjecting him to an unreasonable seizure while acting under color of law. Count 2 charged him with brandishing a firearm during a crime of violence. Rodella was the sheriff of Rio Arriba County when the jury returned its guilty verdict. He resigned from his position as sheriff on Sept. 29, 2014.
The trial evidence established that on March 11, 2014, Rodella and his son Thomas Rodella Jr., who were in Rodella’s personal vehicle, engaged in an unjustified high-speed pursuit of the victim and used the vehicle to block the victim’s vehicle on a dead-end lane. Rodella, who was not in uniform, jumped out of his vehicle with firearm in hand, entered the victim’s vehicle and assaulted the victim with the firearm. Rodella Jr. dragged the victim out of his vehicle and identified the victim’s assailant as the sheriff. When the victim requested to see Rodella’s badge, Rodella pulled the victim’s head up by his hair and slammed his badge into the victim’s face. The victim suffered injuries to his face and his hand as a result of the assault; the injury to the victim’s hand required surgical repair.
The evidence also established that Rodella instructed his deputies to arrest the victim and detain him at the Rio Arriba County Detention Center. The victim was released from custody two days later after appearing before a state magistrate and the charges against him were dismissed on March 26, 2014. Deputies of the Rio Arriba Sheriff’s Office testified they did not conduct any investigation of the incident or prepare any reports until after the case was dismissed.
The case was investigated by the Albuquerque and Santa Fe offices of the FBI and was prosecuted by Assistant U.S. Attorneys Tara C. Neda and Jeremy Peña.
Former Owner of Valley Dairy Sentenced to 30 Days in Prison for Lying to the USDA and Concealing Criminal Conduct of Dairy Co-OwnerRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Karen B. Olson, of Wasilla, Alaska, was sentenced in federal court in Anchorage for making false statements to the United States Department of Agriculture (USDA) in connection with the construction and management of Valley Dairy, Inc., doing business as Matanuska Creamery, in Palmer, Alaska. She was also sentenced for concealing the criminal conduct of the former President and co-owner of the Dairy, Kyle E. Beus. Mr. Beus was recently sentenced to 60 days in prison for wire fraud and providing false statements to the USDA about his personal use of USDA grant funds intended for the construction of the Valley Dairy.
Karen B. Olson, 68, of Wasilla, Alaska, was sentenced on January 20, 2015, by U.S. District Court Judge Timothy M. Burgess to 30 days in prison and three years of supervised release. She was also fined $2000 and ordered to perform 250 hours of community service.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, Olson was an investor in the Valley Dairy and in September 2008, its CEO. Between September 2008, and continuing through December 2008, in order to conceal the true nature of Valley Dairy finances and the losses to the Dairy caused by the illegal activity of Beus, Olson submitted false statements to USDA Rural Development to convince it to allow the State of Alaska to take a first lien position on equipment purchased with the proceeds of the USDA Valley Dairy grants. The documents submitted by Olson inflated the values of that equipment.
Prior to imposing sentence, Judge Burgess stated that the breadth and detail of the level of deceit practiced by Olsen was “frankly a little breathtaking.” Olson, a “bright, educated person,” “should have known better,” yet she was taking no responsibility for her actions. Olson blamed her “political enemies” for her presence in court. Judge Burgess pointed out to Olson that 12 members of the community came to a different conclusion about her conduct when they convicted her, and that only she was to blame for her pending incarceration.
Ms. Loeffler commends the U.S. Department of Agriculture, Rural Development, and the Federal Bureau of Investigation for the investigation of this case.
Former Operator of NYC Health Clinics Pleads Guilty in Manhattan Federal Court to $12 Million Medicare Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Scott Lampert, Special Agent-in-Charge of the New York Regional Office of the United States Department of Health and Human Services Office of Inspector General (“HHS-OIG”), Thomas E. Bishop, the Acting Special Agent-in-Charge of the New York Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that JORGE JUVIER pled guilty today in Manhattan federal court to participating in a scheme to defraud Medicare out of more than $12 million through the use of fraudulent HIV/AIDS clinics in New York City. As part of the Medicare fraud scheme, JUVIER and his co-conspirators billed Medicare for medications that were never administered, that were administered at incorrect dosages or that were medically unnecessary. JUVIER pled guilty today before U.S. Magistrate Judge Frank Maas.
Manhattan U.S. Attorney Preet Bharara said: “With today’s plea, Jorge Juvier has admitted his role in a scheme to set up and operate health care fraud mills where he and his co-conspirators billed Medicare for medications for HIV/AIDS patients that were never correctly provided, and recruited patients to undergo treatments that were largely unnecessary – all so Juvier and his co-conspirators could bilk a federal health care program out of more than $12 million.”
According to the criminal complaint, the information, and other documents filed in Manhattan federal court, as well as statements made at related court proceedings:
JUVIER and his co-conspirators set up and operated multiple health care clinics in New York City that purported to provide injection and infusion treatments to Medicare-eligible HIV/AIDS patients, but that were, in reality, health care fraud mills (the “Clinics”), that routinely billed Medicare for medications that were never provided or were provided at highly diluted doses and that were often unnecessary because the person being “treated” did not medically need the treatments.
JUVIER and his co-conspirators executed the fraudulent scheme by recruiting HIV/AIDS patients who were eligible for Medicare to come to the Clinics multiple times per week, for multiple months, to undergo expensive “treatments” that were often unnecessary. The purported treatments included drugs costing hundreds of dollars each to administer and typically reserved for cancer and anemia patients. JUVIER and his co-conspirators paid the patients cash kickbacks of up to $300 per week in exchange for coming to the Clinics and agreeing to undergo the treatments. Patients were also offered approximately $50 for each additional patient they referred to the Clinics. JUVIER and his co-conspirators then used these patients’ status as Medicare beneficiaries to submit claims to Medicare for reimbursement for the treatments purportedly administered to the patients, often receiving tens of thousands of dollars in reimbursements per patient. However, in truth, the treatments typically were provided in highly diluted doses or not provided at all, and were often medically unnecessary. As a result of the scheme, from 2010 through 2013, JUVIER and his co-conspirators defrauded the Medicare system out of at least $12 million.
JUVIER, 56, a resident of Manhattan, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison. The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. As part of his plea, JUVIER agreed to pay over $12 million in forfeiture and restitution. JUVIER is scheduled to be sentenced by Judge Kimba Wood on May 18, 2015, at 11:00 a.m.
Oscar Huachillo, 54, of Manhattan, has been charged separately in connection with the Medicare fraud scheme. Huachillo pled guilty before U.S. District Judge Katherine Polk Failla on July 1, 2014, and is scheduled to be sentenced by Judge Failla on Thursday, March 5, 2015, at 3:30 p.m.
Mr. Bharara praised the outstanding efforts of HHS-OIG, IRS-CI, and the FBI in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jonathan Cohen is in charge of the prosecution.
Former Dorchester Resident Sentenced for Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A twice convicted sex offender who was residing in Ohio was sentenced yesterday in U.S. District Court in Boston for failing to register as a sex offender.
Jonathan Fey, 45, formerly of Dorchester, was sentenced by U.S. District Court Judge Rya W. Zobel to 18 months in prison and five years of supervised release. In October 2014, Fey pleaded guilty to a one-count indictment charging him with failure to register as a sex offender. In May 2014, Fey was apprehended in Ohio and returned to Massachusetts.
In March 2001, Fey was convicted in Bristol County Superior Court of rape and indecent assault and battery on a person over the age of 14 and received a 9-11 year sentence of incarceration and 10 years of probation. In June 2010, Fey was released from prison and registered as a level II sex offender as required by the court. At some point in July 2011, without permission from or notification to the probation department, Fey left Massachusetts and moved to Kentucky, Arkansas, and most recently in Ohio, but never registered as a sex offender in any of those states.
Additionally, in 1989, Fey was charged with a sex offense in Rhode Island, but given the date of this conviction was not required to register as a sex offender for that offense.
U.S. Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for District of Massachusetts, made the announcement. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Former Director of Market Intelligence at Investor Relations Firm Sentenced in Manhattan Federal Court for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL A. LUCARELLI, the former Director of Market Intelligence at Lippert/Heilshorn & Associates, Inc. (“LHA”), an investor relations firm, was sentenced in Manhattan federal court to 30 months in prison for insider trading. LUCARELLI repeatedly used material nonpublic information that he acquired during his employment at LHA to take positions in the stock of LHA clients over the course of the year-long scheme. LUCARELLI pled guilty on September 24, 2014, and was sentenced today by United States District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Michael Lucarelli took part in corrupting our markets by abusing his access to nonpublic information and ultimately generating over $900,000 in illicit proceeds for himself. Such behavior denotes a misguided perception among privileged professionals who consider themselves above the law – a perception that we will continue to seek to correct through aggressive prosecution of financial crime.”
According to the allegations contained in the Information, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least August 2013 through at least August 2014, LUCARELLI engaged in an insider trading scheme to use and trade upon material nonpublic information that he acquired during his employment at LHA, an investor relations firm based in Manhattan. Specifically, LUCARELLI, as an LHA employee, had access to working drafts of press releases prepared by LHA for its clients prior to their issuance to the investing public. Those draft press releases contained material, nonpublic information about business events and announcements relating to LHA’s clients.
In violation of LHA’s policies and in breach of his duties to LHA and its clients, on multiple occasions, LUCARELLI took positions in the stock of LHA clients shortly before the announcement by these companies of material information through press releases prepared by LHA. Shortly after LHA issued the press releases, LUCARELLI sold these securities that he had acquired prior to the issuance, thereby profiting on the movement in the stock price.
LUCARELLI repeatedly traded in LHA client securities despite LHA’s written code of conduct, which strictly prohibited LHA employees from trading in any security issued by an LHA client. LUCARELLI carried out his scheme in at least four different brokerage accounts. When opening new brokerage accounts through which to conduct his illegal trades, LUCARELLI did not reveal his affiliation with LHA. And, on two occasions, LUCARELLI opened new brokerage accounts soon after his ability to trade in other accounts had been suspended by the respective brokerage firms.
On or about July 24, 2014, the Federal Bureau of Investigation (“FBI”) obtained a court-approved search warrant to search LUCARELLI’s office at LHA for evidence of his insider trading activities. During that search, which was conducted without LUCARELLI’s knowledge, the FBI located a locked briefcase that contained a draft press release for LHA client TREX Company (“TREX”). That press release was marked “DRAFT” and contained TREX’s second fiscal quarter 2014 financial results. The following day, after the FBI completed the search, LUCARELLI started purchasing shares of TREX. Between July 25, 2014, and August 1, 2014, LUCARELLI took a net position of 37,400 shares of TREX. Then, on August 4, 2014, shortly before the market opened, TREX issued a press release announcing its second fiscal quarter 2014 financial results. Among other things, TREX announced that sales and earnings before taxes had increased 23 percent and 62 percent, respectively, in comparison with the comparable period in 2013. TREX also issued revenue guidance for the third fiscal quarter of 2014, which was a 27 percent increase over the comparable period in 2013. Within two hours of the announcement, LUCARELLI sold 35,058 of the 37,400 TREX shares he previously purchased. Those sales yielded a profit of almost $90,000.
As a result of the 13 instances of insider trading specifically set forth in the Information, LUCARELLI earned at least $538,215.32 in illicit proceeds. Furthermore, as reflected in the plea agreement, on at least 18 additional occasions, LUCARELLI took positions in LHA client securities on the basis of inside information. In total, these 31 instances yielded LUCARELLI $955,521.62 in profits.
In addition to the prison sentence, LUCARELLI, 52, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $955,521.62.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, for its assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian R. Blais and Damian Williams are in charge of the prosecution. Assistant U.S. Attorney Carolina A. Fornos of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture of assets.
Former Athol City Clerk Admits EmbezzlementRead the Press Release
COEUR D’ALENE - Sally R. Hansen, 39, formerly of Athol, Idaho, pleaded guilty to 15 counts of wire fraud, U.S. Attorney Wendy J. Olson announced. The charge stemmed from Hansen’s years as the City Clerk of Athol from 2009 to 2014.
According to court documents, during the time of her employment, Hansen used the wires and fraudulently took $417,879 from the City of Athol. She did this by writing fraudulent checks to herself and her husband and using the wires to transfer money between different city accounts.
The maximum penalty for each count is up to 20 years in prison, a $250,000 fine, three years of supervised release and $100 special assessment. As part of her guilty plea, Hansen agreed to make $417,879.00 in restitution to the City of Athol. The sentencing is set for May 5, 2015, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Kootenai County Sheriff’s Department and the United States Secret Service.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Floyd County Man Sentenced to 320 Months for Conspiracy to Distribute Heroin,Cocaine and Prescription DrugsRead the Press Release
PIKEVILLE, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration; Jack Conway, Attorney General of Kentucky; Rodney Brewer, Kentucky State Police Commissioner; and Phillip Reed, Pikeville Police Chief, jointly announced today that a Floyd County man has been sentenced to 320 months in prison, for his role in a drug conspiracy involving heroin, prescription drugs, and cocaine.
Billy Shepherd, 41, was sentenced, on January 8th, following convictions for conspiracy to distribute and possession of heroin. U.S. District Judge Danny C. Reeves enhanced Shepherd’s sentence because Shepherd qualified as a career offender, based upon his significant criminal history. Shepherd has previously been convicted of first degree fleeing and evading police and first degree wanton endangerment. Under federal law, Shepherd will have to serve at least 85 percent of his prison sentence.
A jury convicted Shepherd in September 2014. According to evidence presented at trial, in 2013, law enforcement officers executed a search warrant on a vehicle in which Shepherd was a passenger. They found 21 grams of heroin, along with Oxycodone pills and cocaine, that belonged to Shepherd.
The evidence also established that Shepherd conspired, with five others, to distribute heroin in Floyd County. According to testimony, the conspirators made trips to Columbus, Ohio to buy ounce quantities of heroin for distribution.
All of Shepherd’s co-defendants have pleaded guilty and have been sentenced for their roles in the conspiracy.
The investigation was conducted by the DEA, London Field Division; the Kentucky Attorney General’s Office; Kentucky State Police; and the Pikeville Police Department. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government.
Femal Getaway Driver Convicted of Robberies of 13 Banks and Stores in Las Vegas Area During 2012-2013Read the Press Release
LAS VEGAS, Nev. – A woman who served as the getaway driver for the robberies of 13 banks and stores in southern Nevada from December 2012 to March 2013, has been convicted by a federal jury of multiple counts of robbery and firearm charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Sesley Williams, 46, of Las Vegas, was convicted on Friday, Jan. 16 of eight counts of bank robbery, five counts of interference with commerce by robbery and five counts of brandishing a firearm in furtherance of a crime of violence. Williams is scheduled for sentencing before U.S. District Judge Andrew P. Gordon on May 21, 2015. She faces up to 20 years in prison on each robbery count and a mandatory minimum of 107 years in prison on the brandishing counts, which must run consecutively to the sentences for the other counts.
The co-defendant, Anthony Jordan, was convicted by a jury in November 2014 of 13 counts of robbery and firearm-related charges, and is scheduled to be sentenced on March 19, 2015.
The duo robbed six banks, three outlet mall and one other store in Las Vegas, two banks in Henderson, and one outlet mall store in Primm, Nev., between Dec. 28, 2012, and March 30, 2013.
This case was investigated by the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Lisa Cartier-Giroux.Federal Indictment: Two Men Robbed Overland Park BankRead the Press Release
KANSAS CITY, KAN. – Two Missouri men were indicted by a federal grand jury Wednesday on charges of robbing an Overland Park bank, U.S. Attorney Barry Grissom said.
Landein Craddock, 33, Kansas City, Mo., and Jerome Davis, 31, Kansas City, Mo., are charged with one count of bank robbery and one count of brandishing a firearm during the robbery. The indictment alleges that on Jan. 20, 2015, they robbed the Bank of the West at 9400 Antioch in Overland Park, Kan. During the robbery they brandished a revolver.
If convicted, they face a penalty of not less than five years in federal prison and a fine up to $250,000 on the firearm charge, and a maximum penalty of 25 years and a fine up to $250,000 on the bank robbery charge. Grissom commended the Overland Park Police Department, the Leawood Police Department, the Kansas City, Mo., Police Department and the FBI for their work on the case. Assistant U.S. Attorney Scott Rask is prosecuting.
OTHER INDICTMENTS
Harold C. DeLoach, 41, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on Jan. 15, 2015, he robbed the Credit Union of America at 212 S. Ridge Road in Wichita, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting
Kathleen Stegman, 56, Leawood, Kan., is charged in a superseding indictment with five counts of federal tax evasion and one count of conspiracy to defraud the Internal Revenue Service. Co-defendant Christopher Smith, 50, Leawood, Kan., is charged with one count of conspiracy to defraud the IRS.
The indictment alleges Stegman, who owned Midwest Medical Aesthetics Center, Inc., in Leawood, under-reported the company’s income and overstated the company’s expenses. The conspiracy count alleges Stegman and Smith fabricated $50,575 in deductible expenses for Stegman’s company. In fact, Stegman wrote a check to Smith’s company, Encompass Construction Group, LLC, and Smith purchased gold coins for Stegman. Stegman caused the payment to be deducted as repairs and maintenance on her company’s equipment.
Upon conviction, tax evasion carries a maximum penalty of five years in federal prison and a fine up to $250,000 on each count; and conspiracy carries a maximum penalty of five years and a fine up to $250,000. The Internal Revenue Service investigated. Assistant U.S. Attorney Jabari Wamble and with DOJ Tax Attorney Ryan Raybould are prosecuting.
Jose Ontiveros, 27, Kansas City, Kan., is charged with one count of carjacking in which a death occurred and one count of discharging a firearm during the crime. The crimes are alleged to have occurred Dec. 14, 2014, in Kansas City, Kan.
If convicted, he faces a maximum penalty of life in federal prison and a fine up to $250,000 on the carjacking charge, and a penalty of not less than five years on the firearm charge. The Kansas City, Kan., Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Felipe Sifuentes-Cabrera, 34, De Soto, Kan., is charged in a superseding indictment with one count of possession with intent to distribute methamphetamine and one count of conspiracy to distribute methamphetamine. The conspiracy is alleged to have occurred from Feb. 1, 2014, to Nov. 4, 2014, in Olathe, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the possession on each count. The Olathe Police Department investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Agent Pleads Guilty in Insurance Fraud SchemeRead the Press Release
McALLEN, Texas - Reynaldo Gonzalez, 38, has pleaded guilty to wire fraud, announced United States Attorney Kenneth Magidson. Gonzalez is a deputy U.S. Marshal in San Antonio who was previously assigned to the Southern District of Texas. He is currently on administrative leave.
Gonzalez was charged in April 2014. He was set to begin trial next week, but opted to plead guilty today.
Gonzalez purchased an accident-only insurance plan from the American Family Life Assurance Company (Aflac) in May 2005. The plan is commonly known as supplemental insurance and is designed to mitigate expenses incurred by policyholders during injuries that are not otherwise covered by major medical insurance.
As part of his plea, Gonzalez admitted that on or about March 24, 2009, he faxed a claim form containing false and fraudulent information to Aflac headquarters in Columbus, Ga., indicating he had been examined by a physician for ankle pain four days prior. To accomplish the fraud, Gonzalez used a physician’s signature and tax identification number without the physician’s knowledge or consent.
Gonzalez admitted that he was not, in fact, seen by this physician on that date. Further, the last time he was examined by this physician was actually in October 2007.
U.S. District Judge Micaela Alvarez, who accepted the plea today, has set sentencing for April 23, 2015, at which time he faces up to 20 years of federal imprisonment and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The investigation was conducted by the FBI with assistance from the Office of the Inspector General. Assistant United States Attorneys Linda Requénez and Michael Day are prosecuting the case.
Fairmont, WV man convicted for role in manufacturing methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Coy Wollard, 29, of Fairmont, West Virginia, was convicted in federal court for his role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced today.
During a Three Rivers Drug Task Force investigation, Wollard was discovered in September 2014 in possession of medication pseudoephedrine, a common ingredient in methamphetamine.
Wollard pled guilty to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” He faces up to 20 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Former Usm Student Sentenced to Prison for Possession of Child PornographyRead the Press Release
Hattiesburg, Miss - Miles Justin McNairy, 25, of Aberdeen, was sentenced by U.S. District Judge Keith Starrett on January 20, 2015 to 80 months in federal prison followed by a lifetime of supervised release for possession of child pornography, announced U.S. Attorney Gregory K. Davis, FBI Special in Charge Donald Alway and Mississippi Attorney General Jim Hood. Upon completion of his prison sentence, McNairy must register as a sex offender.
At the time of his arrest, McNairy was a student at the University of Southern Mississippi in Hattiesburg. He was charged with downloading and sharing images of child pornography which he had transported to Hattiesburg from his home in Aberdeen. He pled guilty to the charges on October 17, 2014.
"There is no more noble calling than protecting our children", said Donald Alway, Special Agent in Charge of the FBI in Mississippi. "Cases like this one underscore our resolve to decrease the vulnerability of our youth to sexual exploitation. The success of this investigation and prosecution by the FBI Child Exploitation Task Force and the U. S. Attorney’s Office is evidenced by the significant sentence rendered against this subject. Partnerships among law enforcement agencies, such as this one between the FBI and the Mississippi Attorney General’s Office, have never been stronger. We work collectively as a team, and are dedicated to protecting Mississippi’s children."
"Cases like this one exemplify why we are glad to be a part of the FBI Child Exploitation Task Force, and shows how joining forces produces positive results," said Attorney General Jim Hood.
This case was investigated by FBI Child Exploitation Task Force which includes the Mississippi Attorney General’s Office with assistance from the University of Southern Mississippi Police Department. The case was prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
Project Safe Childhood is a nationwide initiative launched by the Department of Justice in May, 2006, to combat the growing epidemic of child sexual exploitation and abuse. Through Project Safe Childhood, federal, state and local law enforcement officials have formed partnerships to 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.
Eleven Defendants Indicted on over Forty Drug and Gun ChargesRead the Press Release
United States Attorney Michael J. Moore announced today that a federal grand jury returned a multiple count indictment in the United States District Court for the Middle District of Georgia, Valdosta Division, charging Gregory Paige, also known as “Rudy,” aged 31, Dequaveous Lane, also known as “Quay,” aged 27, Kevin K. Deberry, also known as “Bear,” aged 29, John W. Wilcox, also known as “John Boy,” aged 40, Marion F. Deberry, also known as “Funk,” aged 37, Tony A. Crumpton, also known as “TC,” aged 44, William Deberry, aged 54, Anthony Deberry, also known as “Flea,” aged 43, Dan Wiseman, also known as “DD,” aged 27, Shalinda Wilcox, aged 38, and Vernardo Henley, also known as “Sack,” aged 34, all of Sparks, Georgia with conspiracy to possess with intent to distribute cocaine and cocaine base, also known as crack cocaine. If convicted, those indicted on count one face a sentence of 10 years to life in prison, a fine of $10 million, or both.John Wilcox and Shalinda Wilcox face two additional charges of possession with intent to distribute crack cocaine and Dan Wiseman faces one additional charge. These charges carry a sentence of 5 to 40 years in prison, a fine of $5 million, or both.
For the possession with intent to distribute a schedule II controlled substance (i.e. crack cocaine), John Wilcox is facing an additional seven charges, Gregory Paige faces three charges, William DeBerry faces two charges, Dequaveous Lane faces three charges, Dan Wiseman faces three charges, Anthony DeBerry faces three charges, Tony Crumpton faces one charge, Shalinda Wilcox faces one charge, Kevin DeBerry faces one charge, and Vernardo Henley faces two charges. With these additional charges comes an additional sentence of up to 20 years in prison, $1 million, or both.
Kevin DeBerry, Vernardo Henley, John Wilcox, Shalinda Wilcox, Dequaveous Lane and Gregory Paige also face one charge of maintaining a drug involved premises. They could be sentenced to a maximum of 20 years, fined up to $500,000, or both.
For the possession of a firearm in the furtherance of a drug trafficking crime, Anthony DeBerry may face a mandatory minimum of five years to life in prison, consecutively.
Marion DeBerry and Dan Wiseman are facing an additional two charges while Anthony DeBerry, William Deberry, and Vernardo Henley are facing one additional charge for the possession of a firearm by a convicted felon. These allegations carry a sentence of up to 10 years in prison, a fine of $250,000, or both.
Dequaveous Lane has three charges of possession of a firearm by a person under indictment and one charge of possession of an unregistered firearm. The first charges carry a 10 year sentence, fine of $250,000, or both. For possession of an unregistered firearm, he could receive a 10 year sentence, $10,000 fine, or both.
A copy of the indictment is attached. The indictments are only allegations and the accused are presumed innocent until and unless proven guilty."Today's enforcement action serves as a text-book example of the impact that can be achieved when we blend our investigative resources with our State and local partners, as we continue to aggressively address violent crime that plagues our communities," said ATF Special Agent in Charge Carl Walker. "ATF remains committed to target violent offenders and dismantle their criminal organizations, but admits there's much work to do."
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Drug Enforcement Administration, Georgia Bureau of Investigation, Georgia State Patrol, Cook County (Georgia) Sheriff’s Office, and the Sparks (Georgia) Police Department. Assistant United States Attorney Robert McCullers is prosecuting the case for the government.Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Desmond Simpson of Wilmington Sentenced for Hobb’s Act Robbery and Firearms Violation 924(c)Read the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced, DESMOND SIMPSON, 29, of Wilmington, to 189 months of imprisonment followed by 5 years of supervised release.
SIMPSON was named in an Indictment filed on December 17, 2013. On September 30, 2014, the Defendant was found guilty by a jury of Robbery of a Business Engaged in Interstate Commerce and Using, Carrying and Brandishing a Firearm During and In Relation to a Crime of Violence. According to the investigation and information presented in open court during the trial and sentencing, on April 25, 2012, SIMPSON, robbed a Papa John’s delivery person after calling in the order and waiting for the delivery driver to attempt the delivery. When the delivery driver arrived at the given address for the delivery, SIMPSON brandished a firearm and demanded the victim’s money. When the victim refused and tried to run away, SIMPSON grabbed him by the collar and began to fight with him, repeatedly hitting the victim in the head with the firearm, an injury which required numerous staples. SIMPSON fled the area but left behind a pair of sunglasses that he wore during the robbery. Later testing confirmed SIMPSON’S DNA on this item. In addition, a shirt was found nearby the scene of the robbery that had SIMPSON’S DNA on it along with the DNA of the delivery driver.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson prosecuted the case. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.
Defendant Sentenced to 8½ Years in Prison in Identity Theft Tax Refund Fraud SchemeRead the Press Release
A Broward County resident was sentenced to 102 months in prison, followed by three years of supervised release, and was ordered to pay $876,215.00 in restitution in an identity theft tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Nick Caty, 44, of Tamarac, previously pled guilty to one count of wire fraud and one count of aggravated identity theft.
Co-defendant Junior Thompson, 35, of Tamarac, previously pled guilty to one count of conspiracy to use unauthorized access devices and one count of aggravated identity theft. Thompson is scheduled to be sentenced on February 13, 2015 before U.S. District Judge James I. Cohn. At sentencing, Thompson faces up to five years in prison for the access device charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, from January 2014 through March 2014, the defendants engaged in an identity theft tax refund fraud scheme in which they caused 352 fraudulent tax returns to be submitted to the IRS using stolen personal identity information (PII). The defendants sought $945,554 in refunds for deposit onto prepaid debit cards. In February 2014, the defendants withdrew money from different prepaid debit cards registered in different people's names and loaded with fraudulent tax refunds. Caty and Thomson agreed to share in the proceeds together from the debit cards and they also transferred debit cards between each other. In March 2014, law enforcement executed a search warrant at the defendants’ business and residence in Broward County and found lists with over 4,000 individuals’ PII.
Court documents also state that from January 2012 through October 2013, Caty used stolen PII to file fraudulent tax returns to the IRS seeking approximately $1 million in fraudulently obtained refunds for deposit into bank accounts he controlled.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Convicted Tampa Sex Offender Sentenced to Four Years in Prison in Second Failure to Register as a Sex Offender CaseRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Kevin Robert Leblanc (52, Tampa) to four years in federal prison for failing to register as sex offender after absconding from supervision in Florida and traveling to Arizona. He was also ordered to serve a 15-year term of supervised release. Leblanc has been in custody for violating the conditions of his federal supervised release since his arrest in August 2014.
According to court documents, on July 29, 1999, Leblanc was convicted of committing two child sex offenses in Massachusetts. Subsequently, he traveled to Florida, failed to register as a sex offender, and was prosecuted for failure to register. Leblanc pleaded guilty to this charge and, on August 25, 2011, was sentenced to three years in federal prison, and a 15-year term of supervision.
On April 4, 2014, Leblanc was released from federal prison, established a residence in Tampa, and commenced his term of supervised release. On July 25, 2014, he absconded from federal supervision. In doing so, he failed to update his sex offender registration status with Florida authorities, as required by law. Leblanc was arrested near Flagstaff, Arizona, on August 15, 2014, by the U.S. Marshals Service. When interviewed, he acknowledged knowing that he was required to register as a sex offender, that he did not notify Florida authorities that he was leaving the state, and that he failed to notify authorities because he “got fed up” with being supervised.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service. It was prosecuted by Assistant United States Attorneys D. Rodney Brown and Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Contract Postal Worker Pleads Guilty to Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID HENRY, age 31, of Covington, pled guilty today to a one-count Indictment for theft of mail.
According to court records, as a result of multiple complaints of missing mail from highway contract route No. 76 (“Route 76”) in Mandeville, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into Route 76 in an effort to determine the cause of the lost mail. HENRY admitted to taking three cards on April 23, 2014 that he believed to have contained cash. HENRY also admitted to taking cash from the mail on three or four other occasions.
HENRY faces a maximum of 5 years’ incarceration. U.S. District Judge Ivan L.R. Lemelle set sentencing for April 29, 2015.
U.S. Attorney Polite praised the work of the U. S. Postal Inspection Service, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Cincinnati-Area Man Indicted for Plot to Attack U.S. Government OfficersRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart for the Southern District of Ohio and Acting Special Agent in Charge John A. Barrios of the FBI’s Cincinnati Field Division announced that a federal grand jury has charged Christopher Lee Cornell, 20, of Green Township, Ohio, with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence in an indictment returned in Cincinnati. Cornell was charged for his alleged plot to attack the U.S. Capitol and kill government officials.
The indictment alleges that from August 2014 through January 2015, Cornell plotted an attack on the U.S. Capitol that would have killed officers and employees of the United States during their official duties. During that same time, the defendant allegedly attempted to persuade another to join him in his planned act of violence. Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.
Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Solicitation to commit an attempted murder is a crime punishable by 20 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.
Cornell was arrested on Jan. 14, 2015, by the FBI Joint Terrorism Task Force (JTTF). The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, United States Immigrations and Customs Enforcement, United States Secret Service, West Chester Police Department and Xenia Police Department.
Cornell is scheduled for an arraignment on the charges on Jan. 22, 2015, at 1:30 p.m., before Magistrate Judge Stephanie Bowman.
Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF. The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Michael Dittoe of the Justice Department National Security Division Counterterrorism Section.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Cornell Indictment
Child Pornography Distributor IndictedRead the Press Release
Fort Myers, Florida - United States Attorney A. Lee Bentley, III announces that an indictment has been returned against Daniel Edward Palmer (37, Port Charlotte), charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to the indictment, Palmer distributed child pornography images and videos to an undercover FBI Task Force Agent over an Internet peer-to-peer network between the dates of March 30, 2014 and July 8, 2014. A federal search warrant was subsequently executed at Palmer’s residence and all computer-related items were seized. A forensic analysis of the evidence revealed over 300 images and videos of child pornography. Palmer is a registered sex offender stemming from a 2009 conviction for possessing child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation - Ft. Myers Office and the Charlotte County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Child Pornography Distributor IndictedRead the Press Release
Fort Myers, Florida - United States Attorney A. Lee Bentley, III announces that an indictment has been returned against Daniel Edward Palmer (37, Port Charlotte), charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to the indictment, Palmer distributed child pornography images and videos to an undercover FBI Task Force Agent over an Internet peer-to-peer network between the dates of March 30, 2014 and July 8, 2014. A federal search warrant was subsequently executed at Palmer’s residence and all computer-related items were seized. A forensic analysis of the evidence revealed over 300 images and videos of child pornography. Palmer is a registered sex offender stemming from a 2009 conviction for possessing child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation - Ft. Myers Office and the Charlotte County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California Man Sentenced to 22 Years in Prison for Cocaine TraffickingRead the Press Release
A California man was sentenced to more than 22 years in federal prison for trafficking cocaine.
Dwight Erwin Herrera, 40, was convicted by a jury in November of conspiracy to distribute and distribution of cocaine greater than five kilograms. Herrera and others were arrested in Cleveland on Dec. 1, 2012, with approximately 10 kilograms of cocaine that had been transported to Cleveland from California, according to court documents.
Herrera is one of eight defendants who were indicted and convicted as part of this conspiracy. The group was responsible for the distribution of more than 50 kilograms of cocaine in Ohio, according to court documents.
The investigation into this conspiracy led to the subsequent indictments in federal and state court of an additional 23 people who have been convicted of participating in a drug conspiracy.
This case was prosecuted by Assistant U.S. Attorney Robert F. Corts and Margaret Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Nicholas Gaskin, 27, of Buffalo, NY, who was convicted of possession with intent to distribute and distribution of crack cocaine, was sentenced to 12 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. George C. Burgasser, who handled the case, stated that between April 2012 and May 12, 2012, the defendant sold crack cocaine to an undercover police officer on several occasions in the City of Buffalo.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Buffalo Man Sentenced for Lying to the Federal Grand Jury in the Bailey Boys InvestigationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Acoff, 24, of Buffalo, NY, who was convicted of perjury for lying to the grand jury in the connection with the Baily Boys investigation, was sentenced to 18 months in prison by Chief U.S. District Judge William M. Skretny.Assistant U.S. Attorney Anthony M. Bruce, who handled the case, stated that Acoff told a federal grand jury that he had firsthand knowledge of the January 19, 2011 murder of Harold McCain. The defendant told the grand jury that he received a telephone call from McCain’s alleged killer following the murder asking the defendant to pick him up. Acoff further claimed that he did in fact pick up the alleged killer who then provided Acoff with details of the murder which Acoff then repeated for the grand jury as though he had first-hand knowledge of them. In pleading guilty, Acoff had admitted that he never received a call from the alleged killer, did not pick him up and did not have conversations regarding the murder of Harold McCain, but rather had learned the details from a third party.
Bailey Boys Gang member Tyrone Brown was indicted, along with six other members and associates, on August 1, 2012. The indictment alleged that Brown murdered Harold McCain in January 2011.
The sentencing is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney Frank A. Sedita, III, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, and the Amherst Police Department, under the direction of Chief John Askey.
Bowie PCP Dealer Sentenced to 14 Years in PrisonRead the Press Release
Purchased More Than 30 Kilograms of PCP Worth over $700,000
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Ricky Lee Holloway, age 31, of Bowie, Maryland, today to 14 years in prison, followed by five years of supervised release, for distributing more than 30 kilograms of phencyclidine (PCP).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, beginning no later than September 2011, Ricky Lee Holloway conspired with others to distribute and possess with intent to distribute PCP and other controlled substances in Prince George’s County, Maryland, and its surrounding area. A co-conspirator manufactured PCP, which he would package and ship to Holloway and other coconspirators in Maryland. Beginning no later than 2011 and continuing through at least September 2012, the co-conspirator supplier established bank accounts at various national banks and sent Holloway ATM cards by which Holloway could access the accounts. Holloway and other co-conspirators deposited cash into those accounts to pay for shipments of drugs that the co-conspirator supplier sent to Maryland. Holloway and other local coconspirators sent the co-conspirator supplier over $700,000 for drug shipments using this method of payment. In exchange, Holloway received more than 30 kilograms of PCP, which he then redistributed in Maryland and the surrounding area.
As part of his plea agreement, Holloway will forfeit two 2007 Mercedes Benz sedans, and a 2007 Chevrolet Corvette that were either purchased with proceeds of the conspiracy or are forfeitable as substitute assets.Co-defendants Gary Antonio Green, age 35, of Temple Hills, Maryland, and Jesse Fletcher, age 26, of Landover, Maryland, pleaded guilty to their roles in the drug conspiracy. Green was sentenced to five years in prison on January 14, 2015, and Fletcher is scheduled to be sentenced on January 26, 2015, at 2:00 p.m. Co-defendant Raymond Bullette III, age 34, of Los Angeles, California, was convicted of conspiracy to distribute PCP after a four day trial and is scheduled to be sentenced on April 20, 2015, at 9:30 a.m.
In related cases, Richard Brown, age 29, and David Chittams, age 34, both of Lanham, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), and were sentenced to 10 years and seven years in prison, respectively. Shawn Anthony, age 35, of Landover, Maryland, pleaded guilty to distribution of PCP and was sentenced to five years in prison. Kyle Daniels, age 36, also of Landover, pleaded guilty to distribution of PCP and illegal possession of a firearm and was sentenced to 51 months in prison.
Ricky Lee Holloway’s younger brother, Richaco Fernandis Holloway, age 24, of Camp Springs, Maryland, was previously sentenced to 57 months in prison, for being a felon in possession of a gun. According to testimony presented at Richaco Holloway’s two-day trial, on July 3, 2013, a music label belonging to Ricky Lee Holloway posted a video in which Richacho Holloway was filmed holding a .45 caliber handgun with an extended magazine. The video was shot at a building that had been converted into a music studio and doubled as a distribution hub for Ricky Lee Holloway’s PCP distribution operation. During a search conducted at the music studio during a takedown of Ricky Holloway’s PCP trafficking activity, agents recovered the firearm Richaco Holloway was filmed holding in the rap video. Richaco Holloway was prohibited from possessing a firearm or ammunition due to a 2008 conviction in Prince George’s County Circuit Court for robbery with a deadly weapon and for which he was on parole.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Beaver woman pleads guilty to distributing heroinRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Kristen Rachele Davis, 24, of Beaver, West Virginia, pleaded guilty in federal court to distributing heroin.
Davis admitted that on Sept. 4, 2013, she distributed heroin to a confidential informant. The drug deal took place on Skyline Drive in Beaver.
Davis faces up to 20 years in federal prison and a $1 million fine. She is scheduled to be sentenced on April 30, 2015.
United States District Judge Irene C. Berger presided over the plea hearing.
The case is being investigated by the Beckley/Raleigh County Drug and Violent Crime Unit.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Attorney Sentenced to 46 Months in Prison for his Role in Investment and Real Estate FraudsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, attorney was sentenced today to 46 months in prison for his role in a scheme that defrauded investors in connection with a Facebook IPO and several real estate deals, U.S. Attorney Paul J. Fishman announced.
Fred Todd, 61, of Lakewood, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of transacting in criminal proceeds.According to documents filed in this case and statements made in court:
Todd is an attorney with offices in Seaside Heights, New Jersey, and Los Angeles, California. His two co-defendants, Eliyahu Weinstein, 39, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to their roles in the scheme.
Weinstein, already convicted and sentenced to 22 years in prison in a separate Ponzi scheme, pleaded guilty on Sept. 3, 2014, to three counts of an indictment pending against him: one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering. He was sentenced on Dec. 15, 2014, on those charges to an additional two years in prison.
Glucksman has also pleaded guilty and was sentenced by Judge Pisano on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case.
In February 2012, Todd and his conspirators offered a pair of investors (referred to in the information as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by the conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use.
Around the same time, Todd and his conspirators also persuaded victims to invest in the purported purchase of an apartment complex in Florida. They told the victims that Weinstein had the opportunity to purchase the notes on the condominiums at a discounted price and immediately flip it at a substantial profit. The victims wired money to complete the purchase, but Todd and his conspirators instead used the money for their own purposes.
In addition to the prison term, Judge Pisano sentenced Todd to three years of supervised release and ordered him to pay restitution of $6.53 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Zach Intrater of the Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
15-025
Defense counsel: James Filan Esq., Westport, Conn.
Todd, Fred Information
Armed Athens Drug Dealer Sentenced to Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Shabazz Sangria Wingfield, age 22, from Athens, Georgia, was sentenced today by the Honorable C. Ashley Royal, United States District Judge in Athens, Georgia. Mr. Wingfield was sentenced to 60 months imprisonment for possession of a firearm in furtherance of a drug trafficking crime.Mr. Wingfield was stopped by officers with the Athens-Clarke County Police Department on November 21, 2013 on West Broad Street in Athens, Georgia after getting in a car which then committed a traffic violation. As part of his plea agreement, Mr. Wingfield admitted that when he got out of the car, an officer observed a piece of crack cocaine on the passenger seat where he had been sitting. A subsequent search revealed that Mr. Wingfield had a loaded 9mm semi-automatic pistol in his pants, along with crack cocaine, powder cocaine, oxycodone and marijuana.
“Although a young man, Shabazz Wingfield has already accumulated a regrettable number of arrests for charges involving firearms,” said U.S. Attorney Michael Moore. “I sincerely hope that Mr. Wingfield emerges after five years in federal prison as a changed man; in the meantime, the streets of Athens will be a safer place.”The case was investigated by the Athens-Clarke County Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Anderson Woman Gets Prison for Extensive Bank Fraud Scam and Environmental CrimeRead the Press Release
Contact Person: Will Lucius (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that NANCY MARIE STEIN, age 62, of Anderson, South Carolina , was sentenced by Senior United States District Judge Henry M. Herlong today in federal court in Greenville, to a total of 73 months in prison for six counts of violating Title 18, United States Code, Section 1344, commonly referred to as bank fraud; and 60 months for one count of violating Title 42, United States Code, Section 6928(d)(2)(A), for storing hazardous wastes without a permit. The sentences were ordered to run concurrently for a total sentence of 73 months. STEIN was also ordered to pay restitution in the amount of $17, 692, 974.00. STEIN’s Company, AMERICAN SREW AND RIVER CORPORATION (ASR) of Anderson, was placed on probation for 5 years and ordered also to pay restitution for its involvement in the bank fraud and storing hazardous wastes without a permit.
Both STEIN and ASR entered pleas of guilty to the charges on December 16, 2013. The case had originally been set for sentencing on July 15, 2014, but was continued due to issues raised by STEIN.
During the guilty plea hearing in December of 2013, the factual presentation revealed that had the cases had gone to trial, the Government would have presented evidence indicating that from at least 2004 and continuing until in 2011, while operating ASR, STEIN developed a scheme to defraud a number of financial institutions. As part of the ruse, STEIN created a number of fictitious manufacturing companies, organizations and business associations with apparent legitimate addresses, bank accounts and telephone numbers in various locations throughout the Southeast and the Midwest including Alabama, Georgia, Indiana, Ohio, and Pennsylvania. The addresses were mail drops, STEIN controlled the accounts, and the telephone numbers were answering services. One of the fictitious entities was an accounting firm which issued audits and financial statements attesting to the fiscal soundness of ASR.
STEIN would then apply to various financial institutions for loans for ASR. Often she would present to the institutions false invoices indicating that ASR had purchased types of specialized machinery from the fictitious vendors which could be used as collateral for loans. Often, STEIN would have the financial institutions forward the loan proceeds to the non-existent vendors’ accounts. The deception also involved removing legitimate identity plates on existing machinery at the ASR location and replacing them with false plates reflecting the serial numbers of the fictitious machines.
After a number of years of running the scheme, STEIN’s and ASR’s debts continued to grow, and ultimately, ASR’s creditors forced the company into involuntary bankruptcy in 2011. Thereafter, the United States Secret Service was asked to investigate. At least twenty six victim financial institutions were identified with cumulative losses in excess of $16 million. When the investigation focused on STEIN, in a statement to the Secret Service, she admitted what she had done and took full responsibility for the fraud.
Resident Agent in Charge of the Greenville, S.C. Office of the United States Secret Service, Thomas M. Griffin, stated: “Today's sentencing was the result of a criminal investigation which was initiated in 2010. The Secret Service utilized significant resources conducting interviews, reviewing bank records and other documents associated with the fraudulent loans obtained by these defendants. These investigative efforts have ensured that the defendants would be successfully brought to justice for the crimes which they committed.”
With respect to the environmental crime violation, the Government was prepared to show that some years prior to the involuntary bankruptcy, STEIN and ASR had been informed that they needed a permit from the South Carolina Department of Health and Environmental Control (DHEC) or from the United States Environmental Protection Agency (EPA) to store the large quantities of hazardous wastes generated by ASR’s manufacturing process. No permit to store hazardous waste was ever sought by STEIN or ASR or issued by EPA or DHEC.
In June, 2011, as a result of a DHEC search of ASR’s property, a large quantity of hazardous waste was discovered on site. Thereafter, more than 24,000 gallons of waste were removed from the sight and disposed of by EPA at a cost of approximately $1,720,000.00.
“For a number of years, the defendants stockpiled thousands of gallons of unpermitted hazardous waste at ASR’s location in Anderson,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in South Carolina. “This waste consisted of uncontained flammable and highly corrosive materials which were exposed to the elements. Today’s sentencing shows that those who refuse to comply with the law, putting public health and the environment at risk, will face the consequences in court.”
The cases were investigated by agents of the United States Secret Service, the Criminal Investigative Division of the United States Environmental Protection Agency, and prosecuted by Assistant United States Attorney William C. Lucius of Greenville.
#####Albany Man Pleads Guilty to Lottery FraudRead the Press Release
ALBANY, NEW YORK – On January 20, 2015, DOUGLAS E. WATSON, II, 30, of Albany, NY, pled guilty to three felony counts of mail fraud in connection with a lottery fraud scheme that targeted elderly victims, announced United States Attorney Richard S. Hartunian, United States Postal Inspection Service – Boston Division Inspector in Charge Shelly Binkowski, and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. Sentencing is scheduled for May 20, 2015, at 10:00 a.m. For each count of conviction, the defendant faces a maximum term of imprisonment of twenty years and a maximum fine of $250,000.
As part of the “advance fee fraud” scheme, victims were informed that they had won the New York State lottery but that they needed to send cash payments for taxes and processing fees to claim their winnings.
The defendant admitted that he received two packages from victims containing tens of thousands of dollars in cash and sent a false receipt to cover up the fraud. The defendant pled guilty immediately before a federal jury trial was set to begin in Albany before United States District Judge Mae A. D’Agostino.
The prosecution resulted from a joint investigation by the United States Postal Inspection Service, Homeland Security Investigations, the Pittsfield (Massachusetts) Police Department, and the Albany Police Department. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd.
Tuesday 20 January 2015
Woman, Two Men Indicted for Sexual Exploitation of ChildrenRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three southern Missouri residents were indicted by a federal grand jury today in separate and unrelated cases of sexual child exploitation.
USA v. Penn
Chelese Penn, 24, of Hartville, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Penn attempted to use a minor, identified as Jane Doe #1, to produce child pornography between July 1, 2012, and Oct. 3, 2014. Penn is also charged with receiving and distributing child pornography over the Internet during that time.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
USA v. Thomas
Kevin Robert Thomas, 42, of Bolivar, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Thomas received and distributed child pornography over the Internet from April 26 to May 2, 2013. Thomas is also charged with possessing child pornography on June 17, 2013.
The federal indictment also contains a forfeiture allegation, which would require Thomas to forfeit to the government a desktop computer and a laptop computer that were used to commit the alleged offenses.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cyber Crime Task Force, the Missouri State Highway Patrol, the Polk County, Mo., Sheriff’s Department and the Bolivar, Mo., Police Department.
USA v. Cannon
Christian Cannon, 42, of Lebanon, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Cannon received and distributed child pornography over the Internet between April 18 and July 21, 2014.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Wheeling Woman Sentenced to Probation for Counterfeit Currency ConspiracyRead the Press Release
PITTSBURGH – A resident of Wheeling, West Virginia, has been sentenced in federal court to two years probation and restitution on her conviction of conspiracy to pass counterfeit United States currency, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Senteria Nightengale, 42.
According to information presented to the court, Nightengale engaged in a conspiracy to pass counterfeit U.S. currency on Jan. 12, 2013.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Nightengale.
West Haven Couple Charged with Distributing HeroinRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ALYSSA JELLIFFE, 21, and CHRISTOPHER FOGLER, 29, both of West Haven, have been charged by criminal complaint with conspiring to distribute heroin.
JELLIFFE and FOGLER were arrested on Friday, January 16, and are currently detained. Detention hearings are scheduled for January 23 in Bridgeport federal court.
According to the criminal complaint, on January 12, 2015, a 39-year-old male died from an apparent heroin overdose at a residence in Milford. The investigation, which included analysis of text messages captured from the decedent’s cellular telephone, revealed that JELLIFFE and FOLGLER sold the decedent $170 worth of heroin on the evening of January 11, 2015.
On January 16, 2015, a court-authorized search of JELLIFFE and FOGLER’s residence revealed approximately 10 bags of heroin and assorted drug paraphernalia, including a digital scale, razor blades and cut straws.
JELLIFFE and FOGLER are each charged with conspiracy to possess with intent to distribute, and to distribute, heroin. The charge carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigating is being conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Visalia Woman Sentenced to over 3 Years in Prison for Filing False Tax Returns Using Stolen IdentitiesRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Rebekah Root, 34, of Visalia, today to three years and nine months in prison for wire fraud, making a false claim for a tax refund, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2011, Root obtained tax documents that were stolen from an Internal Revenue Service office in Visalia. She used those tax documents to submit false tax returns on behalf of six taxpayers, without their knowledge or permission, and claimed approximately $50,000 in fraudulent tax refunds.
This case was the product of an investigation by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant United States Attorneys Patrick R. Delahunty and Grant B. Rabenn prosecuted the case.
Verona Island Man Pleads Guilty to Firearm ChargeRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Oscar
Nunez, 28, of Verona Island, Maine, pleaded guilty today in U.S. District Court to unlawful
possession of a firearm.Court records reveal that on July 23, 2012, investigators found a High Point .380 caliber
semi-automatic handgun during the execution of a search warrant at the defendant’s Verona
Island residence. A Maine State Police Crime Lab forensic analyst found the defendant’s DNA
on the handgun. The defendant was prohibited from possessing the handgun because of a prior
felony conviction in New York for the criminal sale of a controlled substance.Nunez faces up to ten years in prison and a $250,000 fine. He will be sentenced after the
completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the Maine State Fire Marshal’s Office, the Maine Drug Enforcement Agency, the
Maine State Police as well as the Hancock and Penobscot County Sheriff Departments.USMS Captures Top 15 Subject Wanted in Murder of Army VeteranRead the Press Release
On January 15, 2015, U.S. Marshals Service (USMS) Top 15 Most Wanted fugitive Peter Castillo, wanted in Massachusetts for the killing of U.S. Army combat veteran Stephen Perez, was captured in the Dominican Republic. USMS Investigative Operations Division-International Investigations Branch (IOD-IIB) and Interpol Washington played a significant role in Castillo’s capture. Without the issuance of an Interpol Red Notice, and without inter-agency communication between Interpol Washington and Interpol Santo Domingo, Dominican authorities would not have taken Castillo into custody. Additionally, USMS/Interpol Washington coordinated the logistics surrounding Castillo’s overseas arrest, with the U.S. Department of Justice (DOJ)-Office of International Affairs (OIA).
http://www.usmarshals.gov/investigations/most_wanted/castillo/castillo-cap.htm
Two Yemeni Nationals Charged with Conspiring to Murder United States Nationals Abroad and Providing Material Support to Al-QaedaRead the Press Release
Defendants Allegedly Conspired to Carry Out Armed Attacks Against United States Military Personnel and Facilitated the Entry of an American Citizen into Al-Qaeda
A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Saddiq Al-Abbadi, also known as “Sufiyan al-Yemeni” and “Sufwan,” and Ali Alvi, also known as “Issa al-Yemeni,” with conspiracy to murder United States nationals abroad and providing material support to al-Qaeda. Alvi’s initial appearance was held before United States Magistrate Judge Steven I. Locke on Jan. 18, 2015, and Al-Abbadi’s initial appearance is scheduled today before United States Magistrate Judge Lois Bloom. Al-Abbadi and Alvi were arrested in Saudi Arabia pursuant to the pending warrants in this case and lawfully expelled to the United States.
The charges were announced by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
As alleged in the complaint, Al-Abbadi and Alvi are both members of al-Qaeda who engaged in attacks against United States military forces stationed in Afghanistan. Between 2003 and 2007, Al-Abbadi also fought against United States military forces in Iraq. In approximately March 2008, Al-Abbadi and Alvi traveled to the Federally Administered Tribal Areas of Pakistan for the purpose of training with and fighting for al-Qaeda. During that time period, both defendants helped an American citizen gain entry into al-Qaeda so that he could fight against U.S. troops in Afghanistan and U.S. citizens in the homeland.
In approximately late spring and summer 2008, Al-Abbadi and Alvi traveled from Pakistan to Afghanistan to conduct attacks against United States military personnel stationed there. Al-Abbadi led a battle against U.S. forces in Paktya Province in May 2008 during which one U.S. Army Ranger was killed and several others were seriously wounded.
“There is no escape from the reach of our law for violent terrorists, especially if they target our military,” stated United States Attorney Lynch. “Al-Abbadi and Alvi may have operated in the mountains of Afghanistan, but now they face justice in a courtroom in Brooklyn.” Ms. Lynch extended her grateful appreciation to the FBI.
“With the charges announced today, these defendants will face justice for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division. I want to thank the many agents, analysts, and prosecutors who are responsible for this matter.”
“The arrest and prosecution of these two individuals, who allegedly directly supported the mission of a designated terrorist organization, is a major step in the international cooperation to combat terrorism,” said FBI Assistant Director in Charge McCabe. “On a daily basis, the FBI is faced with a complex threat environment that is always evolving and changing. Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups and ensure that they are brought to justice.”
If convicted, each defendant faces a maximum sentence of life imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda, with assistance provided by Trial attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.
The Defendants:
SADDIQ AL-ABBADI
Age: 36
Nationality: Yemeni
ALI ALVI
Age: 30
Nationality: Yemeni
E.D.N.Y. Docket No. 09-MJ-372
Two Yemeni Nationals Charged with Conspiring to Murder United States Nationals Abroad and Providing Material Support to Al-QaedaRead the Press Release
A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Saddiq Al-Abbadi, also known as “Sufiyan al-Yemeni” and “Sufwan,” and Ali Alvi, also known as “Issa al-Yemeni,” with conspiracy to murder United States nationals abroad and providing material support to al-Qaeda. Alvi’s initial appearance was held before United States Magistrate Judge Steven I. Locke on January 18, 2015, and Al-Abbadi’s initial appearance is scheduled today before United States Magistrate Judge Lois Bloom. Al-Abbadi and Alvi were arrested in Saudi Arabia pursuant to the pending warrants in this case and lawfully expelled to the United States.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
As alleged in the complaint, Al-Abbadi and Alvi are both members of al-Qaeda who engaged in attacks against United States military forces stationed in Afghanistan. Between 2003 and 2007, Al-Abbadi also fought against United States military forces in Iraq. In approximately March 2008, Al-Abbadi and Alvi traveled to the Federally Administered Tribal Areas of Pakistan for the purpose of training with and fighting for al-Qaeda. During that time period, both defendants helped an American citizen gain entry into al-Qaeda so that he could fight against U.S. troops in Afghanistan and U.S. citizens in the homeland.
In approximately late spring and summer 2008, Al-Abbadi and Alvi traveled from Pakistan to Afghanistan to conduct attacks against United States military personnel stationed there. Al-Abbadi led a battle against U.S. forces in Paktya Province in May 2008 during which one U.S. Army Ranger was killed and several others were seriously wounded.
“There is no escape from the reach of our law for violent terrorists, especially if they target our military,” stated United States Attorney Lynch. “Al-Abbadi and Alvi may have operated in the mountains of Afghanistan, but now they face justice in a courtroom in Brooklyn.” Ms. Lynch extended her grateful appreciation to the FBI.
“With the charges announced today, these defendants will face justice for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division. I want to thank the many agents, analysts, and prosecutors who are responsible for this matter.”
“The arrest and prosecution of these two individuals, who allegedly directly supported the mission of a designated terrorist organization, is a major step in the international cooperation to combat terrorism,” said FBI Assistant Director in Charge McCabe. “On a daily basis, the FBI is faced with a complex threat environment that is always evolving and changing. Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups and ensure that they are brought to justice.”
If convicted, each defendant faces a maximum sentence of life imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda, with assistance provided by Trial attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.
The Defendants:
SADDIQ AL-ABBADI
Age: 36
Nationality: Yemeni
ALI ALVI
Age: 30
Nationality: Yemeni
E.D.N.Y. Docket No. 09-MJ-372
Traficante De Sexo Infantil Es Condenado A 10 Anos En Prision FederalRead the Press Release
Memphis, TN - Osbie Antonio Sea, a / k / a "Money", "Hard Money" y "Mr. Money ", (“Dinero”, Dinero Duro” and “Mr. Dinero”) de 32 años, de Memphis, TN, fue sentenciado el viernes a 10 años de prisión federal por conspiración para cometer tràfico sexual de un menor de edad, anunció Edward L. Stanton III, fiscal federal para el Distrito Oeste de Tennessee.
De acuerdo con la información y las afirmaciones hechas en audiencia pública, a principios de 2013, Sea entró en contacto con una chica que tenía 14 años de edad, mientras ella estaba de compras en un K-Mart en el àrea de Raleigh de Memphis. Sea se le presentó a ella como "Money", le entregó un volante, y le dijo la adolescente que lo llamara si quería hacer algo de dinero.
Poco tiempo después, a raíz de una discusión con un miembro de su familia, la víctima se escapó de su casa y llamó Sea. El primero se la llevó a su apartamento y después al Extended Stay America, cerca de la intersección de Kirby Parkway y Poplar Avenue. Según la víctima, Sea sabía que ella era menor de edad, pero ella se encargó de decirle a todos que ella tenía 18 años porque "sabía que podía meterse en problemas."
Durante su estancia en el hotel, Sea publicó fotos de la víctima en el sitio internet www.Backpage.com. La víctima declaró que había tenido relaciones sexuales con al menos dos personas por instrucciones de Sea y que Sea había tomado todo el dinero que había obtenido comercial de los actos sexuales.
Ademàs de la sentencia de prisión, el Juez de Distrito Principal J. Daniel Breen ordenó a Mar a cumplir cinco años de libertad supervisada. No hay libertad condicional en las prisiones de sistema federal.
Este caso fue investigado por la Agencia Federal de Investigaciones (FBI). La Fiscal Federal Auxiliar Leetra J. Harris representó al gobierno.
Version en Inglés
Third Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
A third member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” Leroux has been in custody since attempting to flee into Canada from Buffalo, New York, on June 16, 2014. A sentencing hearing is set before U.S. District Judge Judge Gregory M. Sleet of the District of Delaware on May 14, 2015.
Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Pokora’s guilty plea is believed to have been the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information. Charges against a fourth defendant, Austin Alcala, 19, of McCordsville, Indiana, remain pending.
According to Leroux’s admissions in connection with his guilty plea, he was part of the hacking conspiracy between January 2011 and September 2012. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works, and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Leroux admitted in court that he and others used the stolen intellectual property to build, and attempt to sell, counterfeit versions of the Xbox One console before its public release in November 2013. In July 2013, the FBI intercepted a counterfeit console built by Leroux, which was destined for the Republic of Seychelles.
Leroux also admitted that he developed a software exploit that allowed him and others to generate millions of “coins” for the FIFA soccer games playable on the Xbox Live platform. These coins are the virtual, in-game currency used to build a “FIFA Ultimate Team” in the games. Without the authorization of Electronic Arts, the intellectual property rights holder to the FIFA games, Leroux and others sold bulk quantities of the “FIFA coins” via online black markets.
The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada. The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
Third Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
WILMINGTON, Del. – A third member of an international computer hacking ring has pled guilty to conspiring to break into computer networks of prominent technology companies and to steal more than $100 million in intellectual property and other proprietary data.
Nathan Leroux, 20, of Bowie, Maryland, pled guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” Leroux has been in custody since attempting to flee into Canada from Buffalo, New York, on June 16, 2014.
U.S. Attorney Charles M. Oberly III of the District of Delaware, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
“As the indictment charges, the members of this international hacking ring stole trade secret data used in high-tech American products, ranging from software that trains U.S. soldiers to fly Apache helicopters to Xbox games that entertain millions around the world,” said Assistant Attorney General Caldwell. “The American economy is driven by innovation. But American innovation is only valuable when it can be protected. Today’s guilty pleas show that we will protect America’s intellectual property from hackers, whether they hack from here or from abroad.”
“With this plea, we see not just rampant hacking and data theft, but the subsequent exploitation of stolen intellectual property to generate illicit funds online,” said U.S. Attorney Oberly.
“This group hacked into the computer systems of multiple companies, took their property and tried to make money capitalizing on someone else’s hard work and effort. When you put it in very simple terms, it’s theft and against the law. There are consequences to breaking the law in the U.S., whether you live here or in another country,” said Stephen Vogt, FBI Special Agent in Charge of the Baltimore Field Office.
Conspirators Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pled guilty to the same conspiracy charge on September 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Pokora’s plea is believed to be the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information. Charges against a fourth defendant, Austin Alcala, 19, of McCordsville, Indiana, remain pending.
According to the superseding indictment and other court records filed in support of today’s guilty plea, Leroux was part of the hacking conspiracy between January 2011 and September 2012. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation, and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works, and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Leroux admitted in court that he and others used the stolen intellectual property to build, and attempt to sell, counterfeit versions of the Xbox One console before its public release in November 2013. In July 2013, the FBI intercepted a counterfeit console built by Leroux, which was destined for the Republic of Seychelles.
Leroux also admitted that he developed a software exploit that allowed him and others to generate millions of “coins” for the FIFA soccer games playable on the Xbox Live platform. These coins are the virtual, in-game currency used to build a “FIFA Ultimate Team” in the games. Without the authorization of Electronic Arts, the intellectual property rights holder to the FIFA games, Leroux and others sold bulk quantities of the “FIFA coins” via online black markets.
The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada.
The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
See also: http://www.justice.gov/usao/de/news/2014/09-30.html
Tax Franchise Owner Sentenced to Two Years for Identity TheftRead the Press Release
NORFOLK, Va. – Sherry R. Kelley, 41, of Exmore, Va., was sentenced today to two years in prison, followed by one year of supervised release, for committing aggravated identity theft.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations Washington Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Captain Timothy A. Reibel, Virginia State Police Bureau of Criminal Investigations, made the announcement after Kelley's sentencing before Senior United States District Judge Robert G. Doumar.
A Norfolk federal grand jury indicted Kelley on June 18, 2014 on 10 counts of aggravated identity theft and 10 counts of using others' social security numbers. On September 16, 2014, Kelley pleaded guilty to aggravated identity theft, as charged in count one of the indictment.
According to court records, Kelley previously owned and operated four H & R Block tax franchise stores located in Belle Haven, Onley, Melfa, and Cheriton on Virginia's Eastern Shore. While overseeing the operation of these stores, Kelley gained access to and misused the identity information of approximately 20 tax clients. Unbeknownst to her clients or H & R Block, during a three year period Kelley electronically applied for and obtained 30 lines of credit from H & R Block Bank in her clients' names and forged her clients' signatures to account paperwork. Then, using debit cards issued with the approved credit lines, Kelley made thousands of dollars in purchases and ATM cash withdrawals against the fraudulently obtained accounts, before later repaying the sums taken.
This case was jointly investigated by agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the Virginia State Police. Assistant United States Attorney Robert J. Krask prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-92.Tangipahoa Parish Woman Sentenced for Concealing Fugitive from Federal AgentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SHANTELL WASHINGTON, age 43, of Independence, was sentenced today after having previously pled guilty to one count of misprision of a felony.
U.S. District Judge Jay C. Zainey sentenced WASHINGTON to three years’ probation.
According to court documents, agents with the Drug Enforcement Administration (DEA) and Tangipahoa Sheriff’s Office deputies were investigating Washington’s husband, JAMES BROWN, JR.., for heroin distribution beginning in July 2013. After having made several controlled purchases of heroin from BROWN, DEA agents obtained a federal warrant for his arrest. On November 21, 2013, agents went to BROWN’s residence to execute the warrant, but BROWN was not present at his home. Agents advised WASHINGTON that her husband was wanted for federal drug distribution charges, and that concealing him is a federal offense. WASHINGTON subsequently rented a hotel room for BROWN in Hammond, in order to conceal him from arrest. Federal authorities later located BROWN at the hotel room and arrested him. BROWN was convicted in federal court for conspiracy to distribute heroin and possession of a firearm as a convicted felon, and he was sentenced by Judge Zainey to 120 months in federal prison.
U.S. Attorney Polite praised the work of the DEA and the Tangipahoa Sheriff’s Office in investigating this matter. Assistant United States Attorney Matthew Payne was in charge of the prosecution.
St. Joseph Man Sentenced to 10 Years for Crack Cocaine, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for distributing crack cocaine and illegally possessing a firearm.
Brian K. Brewer, 23, of St. Joseph, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole.
On Aug. 5, 2014, Brewer pleaded guilty to distributing crack cocaine and carrying a firearm in relation to a drug-trafficking crime. Brewer admitted that he sold approximately one ounce of crack cocaine for $1,000 on April 14, 2011. Brewer also admitted that on that day he was in possession of a Glock .40-caliber handgun, which he sold for $500.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Buchanan County Sheriff’s Department.