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Tuesday 20 January 2015
Springfield Woman Pleads Guilty to All Charges related to Embezzlement from Former EmployerRead the Press Release
Springfield, Ill. – A Springfield, Ill., woman, Alice M. Foss, 53, entered pleas of guilty today to all the charges against her related to her embezzlement of more than $400,000 from her former employer, a Springfield consulting and lobbying firm. Foss’s pleas followed three days of evidence presented by the government in Foss’s jury trial which began last week.
In a hearing this morning before U.S. District Judge Sue E. Myerscough, Foss admitted that she embezzled money from Don Moss and Associates, a consulting and lobbying firm that specializes in services for disabled persons and other social causes. During the time of the fraud, from May 1997 to October 2009, Foss was employed as the firm’s chief financial officer, and in that capacity, had check-signing authority and control over the firm’s bank account and was responsible for paying the firm’s business expenses.Foss admitted that she repeatedly wrote herself fraudulent bonus checks from the firm’s bank account, for a total of approximately $144,852. Foss fraudulently and repeatedly wrote herself checks out of the DMA bank account, falsely representing that the checks were reimbursements for business expenses she incurred, when, in fact, she knew the false expenses were simply one of the means she used to conceal her embezzlement from DMA.
As part of the fraud scheme, Foss admitted that she repeatedly used DMA’s bank account and credit card account to pay personal expenses, including checks and wire transfers for personal car payments, donations to a private school, and mailing payments to personal credit cards, totaling more than $200,000. Foss used the DMA credit card to pay for personal expenses including payments for clothing, groceries, gas, car washes and rentals, hotel rooms, hair salon and spa expenses, and veterinary bills.
Sentencing is scheduled on May 26, 2015. Under terms of the plea agreement in this case, based on the parties’ agreement that the advisory sentencing guideline range is 46 to 57 months in prison, the government has agreed to recommend a sentence no greater than 57 months in prison. In addition, Foss agreed that the amount of restitution owed is in excess of $400,000. Foss was charged with mail fraud (five counts), wire fraud (seven counts), and access device fraud (one count.) Foss remains on bond pending sentencing.
The charges are the result of investigation by the U.S. Postal Inspection Service and the FBI. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.
South Shore Physicians Hospital Organization to Pay $1.775 Million for Alleged Kickbacks for Patient ReferralsRead the Press Release
State-Federal Agreement Alleges Defendants Operated Unlawful Grant Program
BOSTON – The South Shore Physician Hospital Organization (SSPHO) in South Weymouth has agreed to pay $1.775 million to settle allegations of operating a recruitment grant program through which it paid kickbacks to its physician members in exchange for patient referrals. The United States and the Commonwealth will share in this recovery.
Today, in a consent judgment, the South Shore Physician Hospital Organization, Inc. (SSPHO) and its member organizations, South Shore Hospital, Inc. and Physicians Organization of the South Shore, Inc., acknowledged that the SSPHO paid kickbacks in the form of cash grants to doctors who agreed to make referrals to SSPHO providers. From 2001 to 2010, SSPHO allegedly approved 103 separate recruitment grants to 33 different physician groups as part of this scheme. The recruitment grant program requested that grant recipients refer patients to participating providers, which included the South Shore Hospital.
“Unlawful patient referral schemes not only limit patient provider choices, but ultimately lead to higher health care costs,” said United States Attorney Carmen Ortiz. “Our close working relationship with the Commonwealth’s Attorney General’s Office on heathcare fraud matters including this one is a law enforcement partnership which puts patients care first and foremost.”
“Instead of giving patients lower cost options and flexibility in health care services, we allege these defendants looked to increase their referrals through an unlawful kickback operation,” Massachusetts Attorney General Coakley said. “We are pleased to have worked with our partners in federal law enforcement to ensure that improper incentives do not undermine the integrity of our healthcare system.”
According to the settlement, the defendants made disclosures about the recruitment grant program in 2012 to the Massachusetts Attorney General’s Office, the U.S. Department of Justice and the Office of Inspector General for the U.S. Department of Health and Human Services. The defendants cooperated fully with this investigation.
As a result of this conduct, SSPHO and its member organizations allegedly caused participating providers who received referrals from grant recipients to submit false claims for payment to the Medicare Program and the Massachusetts Medicaid program (MassHealth), because those claims were made in violation of the federal Anti-Kickback statute, and violated the Massachusetts Consumer Protection Act.
Under the terms of the settlement, SSPHO will pay a total of $1.775 million, including more than $620,000 to the Commonwealth, $310,625 of which will go directly to MassHealth. The remainder will be paid to the federal government.
This matter was jointly investigated by the U.S. Attorney’s Office for the District of Massachusetts, the U.S. Department of Health and Human Services, Office of Inspector General, and the Massachusetts Attorney General’s Office. This case was handled by Assistant U.S. Attorney George Henderson III and Assistant Attorneys General Courtney Aladro and Eric Gold of the Health Care Division and Assistant Attorney General Angela Neal of the Medicaid Fraud Division.
Sioux Falls Man Sentenced for Making Counterfeit CurrencyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Making Counterfeit Currency was sentenced on January 16, 2015, by U.S. District Judge Karen E. Schreier.
Joshua Shane Lajoie, age 29, was sentenced to 30 months in custody, to be followed by 2 years of supervised release. He was also ordered to make restitution of $560 to various businesses in the Sioux Falls area.
Lajoie was indicted by a federal grand jury on June 3, 2014, for one count of Making Counterfeit Currency, three counts of Passing Counterfeit Currency, and one count of Possession Of Counterfeit Currency. He pled guilty to the Making Counterfeit Currency charge on September 23, 2014. The other charges were dismissed.
The Sioux Falls Police Department received reports from several Sioux Falls businesses that they had received counterfeit $20 bills in late November and December of 2013. An investigation led to the arrest of several individuals, including Lajoie. It was determined that Lajoie had been making the
counterfeit money and used it to purchase drugs. In turn, the sellers of the drugs spent the counterfeit money. It is estimated that 116 counterfeit $20 bills were passed in the area.
This case was investigated by the Sioux Falls Police Department, the Minnehaha County Sheriff’s Office, and the U.S. Secret Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Lajoie was immediately turned over to the custody of the U.S. Marshals Service.
Rochester Man Sentenced for Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Derek T. Floyd, a/k/a Derek Floyd, Jr., 40, of Rochester, NY, who was convicted of bank fraud and violating a previously imposed term of supervised release, was sentenced by U.S. District Judge Charles J. Siragusa to 77 monnhs in prison. The defendant was also ordered to pay restitution totaling $47,232.09.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between April 2011 and December 2013, the defendant intercepted checks to which he was not entitled. Floyd then used the information on the checks to create new checks, payable to the names of other individuals. Associates of the defendant then cashed and attempted to cash the fraudulent checks at banks throughout the area. During the time period, individuals attempted to cash checks valued at a total of $92,627.92, for a total loss of $47,232.09.
By being convicted of bank fraud, Floyd, who was serving a term of supervised release for a prior federal conviction, violated the terms of his supervised release.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster, Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Inspector in Charge, Shelly A. Binkowski, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Ontario Sheriff’s Department, under the direction of Sheriff Phillip Povero.
Robber Dubbed “Alabama Band Robber” Pleads Guilty to 2014 Bank Robbery SpreeRead the Press Release
A serial bank robber dubbed the “Alabama Band Robber” because of a hat he wore, pleaded guilty today in U.S. District Court in Seattle to five counts of bank robbery and one count of possession of a stolen firearm, announced Acting United States Attorney Annette L. Hayes. MICHAEL RYAN HARDESTY, 40, of Woodinville, Washington was arrested August 19, 2014, after law enforcement linked him to five bank robberies in King, Snohomish and Whatcom Counties. When HARDESTY is sentenced on April 23, 2015, both sides agree to recommend a sentenced between nine and 13 years in prison. However, U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can impose any sentence allowed by law.
According to records filed in the case, HARDESTY was identified as a suspect in multiple bank robberies after the FBI released surveillance photos from the banks and dubbed him the “Alabama Band Robber” because of a hat that had the band’s distinctive name above the brim. He wore the hat in the July 11, 2014 robbery. A tipster identified the robber from the photos. HARDESTY pleaded guilty to the following robberies:
Bank of America, Martha Lake Branch, Lynnwood, July 7, 2014
Whidbey Island Bank, North Seattle Branch, July 11, 2014
Washington Federal, Bakerview Branch, Bellingham, July 18, 2014
Washington Federal, Lakeview Branch, Bellingham, July 25, 2014
Wells Fargo, Martha Lake Branch, Lynnwood, July 30, 2014
Law enforcement identified two cars associated with HARDESTY. One car was located in Burlington, Washington, but HARDESTY was able to evade police. Later, the Snohomish County Violent Offender Task Force (SCVOTF) located HARDESTY on I-5 in Snohomish County. He fled on foot and was ultimately apprehended by a K-9 who tracked him to the 12700 block of 3rd Avenue West. Law enforcement discovered a stolen firearm in HARDESTY’s belongings. A total of nearly $35,000 was stolen in the five robberies.
The case is being prosecuted by Assistant United States Attorney J. Tate London.
Several agencies were involved in the bank robbery investigation, as well as searching for the suspect, including the FBI’s Seattle Safe Streets Task Force, King County Sheriff’s Office, Whatcom County Sheriff’s Office, Bellingham Police, Mt. Vernon Police, Burlington Police and Child Protective Services. The Snohomish County Violent Offender Task Force is a multi-agency unit partnership with the Snohomish County Sheriff’s Office, U.S. Marshals Service and Department of Corrections.Portland Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Anthony Thea, 20, of Portland, Maine, pled guilty today in U.S. District Court to transportation
and possession of child pornography.According to court records, in August 2014, an undercover federal agent identified a
computer later traced to Thea making images of child pornography available for download via a
peer-to-peer file sharing program. On October 9, 2014, federal agents executed a search warrant
at an apartment in South Portland where Thea occasionally stayed and seized a laptop. Thea
admitted owning the laptop and using a peer-to-peer file sharing program to download images of
child pornography. He also said that he had used his cellular telephone to make video recordings
of minors in public restrooms and saved them on his computer.
A forensic analysis of the laptop’s hard drive revealed 2,680 still images and 903 videos
of child pornography and about 80 digital recordings of minor males urinating in restrooms that
Thea recorded between June 2011 and May 2013 without the knowledge or consent of the
victims.
Thea faces between five and 20 years in prison on the transportation count and up to 20
years on the possession count. He also faces a fine of up to $250,000, and supervised release of
up to life on each count. He will be sentenced after the completion of a presentence investigation
report by the U.S. Probation Office.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations, with the assistance of the South Portland Police Department.Pennsylvania Man Sentenced to Sixty-three Months in Federal Prison for Drug Distribution and Conspiracy to Commit Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ronald Belciano, age 42, of Newtown Square, Pennsylvania was sentenced today by United States District Court Chief Judge Christopher C. Conner in Harrisburg to 63 months’ imprisonment and 4 years supervised release of conspiracy to distribute 100 kilograms of marijuana in and through central Pennsylvania and conspiracy to commit money laundering between December 2007 and November 2011.
According to U.S. Attorney Peter Smith, in 2011 Belciano rented a vehicle and paid a co-conspirator to drive the vehicle, containing $1,184,340 in U.S. currency, from Pennsylvania to California to pay for marijuana, some of which was grown on Belciano’s 190 acre property in Northern California. Agents obtained a search warrant for one of Belciano’s homes, located in Villanova, Pennsylvania. During the search, agents located $2, 582,920 in U.S. currency and 1.5 kilograms of marijuana. Law enforcement agents later located 68 kilograms of marijuana, $316,800 in U.S. currency and 59 paintings valued at over $600,000 in a storage locker and at a co-conspirator’s farm in Douglasville, Pennsylvania, used to warehouse and distribute the marijuana transported from California to Pennsylvania. Belciano was indicted by a grand jury in November 2011 and plead guilty in February 2014.
The assets seized and forfeited in this case, including a residence, a 190-acre property in Laytonville, California, the artwork obtained with proceeds of the illegal activity and later appraised at over $619,000, and $4,084,060 in U.S. currency.
Co-defendant Stephen Fanfera is scheduled for sentencing on January 22, 2015. Fifty thousand dollars in cash was forfeited in lieu of the equity in his Douglasville property. In a related case prosecuted by the U.S. Attorney’s Office in Philadelphia, a Villinova art dealer Nathan Isen was charged with money laundering on January 8, 2015.
“Today’s sentencing concludes a long term investigation on a drug trafficker who was living on the Main Line of Philadelphia,” said John Kelleghan, HSI Philadelphia special agent in charge. “When HSI, the Pennsylvania State Police, the United States Attorney’s Office, Pennsylvania Attorney General Bureau of Narcotics Investigations, Internal Revenue Service, Philadelphia Police Department, and the Philadelphia District Attorney’s Office are able to seize over $4 million in cash, narcotics, and other assets derived from distributing narcotics from a main line drug trafficker, we know we have successfully dismantled a large scale sophisticated organization.”
This case was investigated by Homeland Security Investigations/High Intensity Drug Trafficking Area/Financial Group which includes members from the Pennsylvania State Police, Pennsylvania Attorney General Bureau of Narcotics Investigations, Internal Revenue Service, Philadelphia Police Department, and the Philadelphia District Attorney’s Office. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Pennsylvania Man Pleads Guilty to Selling 12 Gauge Pistol made from Modified Flare GunRead the Press Release
Also illegally sold practice grenade fuses
ALEXANDRIA, Va. – Eric Mark Way, 29, of Aliquippa, Pennsylvania, pleaded guilty today to charges of transferring an illegally modified flare gun.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Way was charged via a one count criminal information. Way faces a maximum penalty of 10 years in prison when sentenced on April 10, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with the plea agreement, Way sold multiple modified flare gun kits. These kits consisted of a flare gun, an insert that converted the legal signaling device into an illegal 12 gauge device, and a canvass carrying pouch. One the individuals who purchased this modified weapon from Way was a violent, convicted felon. In addition to selling the modified flare guns, Way was also caught illegally selling M228 practice grenade fuses. In order to sell these fuses, both the seller and purchaser must possess a federal explosives license. Way does not have a federal explosives license.
This case was investigated by ATF. Assistant U.S. Attorney Zachary Terwilliger and Special Assistant United States Attorney Caroline Friedman are prosecuting 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. 1:15CR08.New York Man Indicted for Attempting to Acquire Deadly Toxin, RicinRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director-in-Charge George Venizelos of the FBI’s New York Office, announced today that a federal grand jury returned a two-count indictment against Cheng Le for attempting to acquire and distribute ricin and committing postal fraud. Le was arrested on Dec. 23, 2014, by the FBI in Manhattan. He was presented on a Complaint before the U.S. Magistrate Judge James C. Francis IV on Dec. 24, 2014, and has been detained since his arrest. He is expected to be arraigned on Friday, January 23, 2015, before the United States District Judge Alison J. Nathan.
“As alleged, Cheng Le attempted to acquire ricin, a potentially lethal toxin, through the Dark Web so that it could be used for deadly purposes,” said U.S. Attorney Bharara. “Thankfully, with the help of our law enforcement partners he was intercepted and must now answer for his alleged crimes.”
“In the shadows of the Dark Web, criminals hide behind a veil of anonymity, sniffing out hidden opportunities to buy and sell illegal and potentially dangerous merchandise,” said Assistant Director-in-Charge Venizelos. “As alleged, in this case, activity carried out in the marketplace served as a conduit for Le to obtain ricin. In his desire to acquire this potentially deadly toxin, he picked his own poison and now faces the consequences of the justice system.”
According to the Complaint, which was unsealed today in Manhattan federal court, and the indictment:
Ricin is a highly potent and potentially fatal toxin with no known antidote. In December 2014, an individual (the Ricin Buyer) contacted an FBI online covert employee (the OCE) on an online forum. During Dec. 2014, the Ricin Buyer exchanged a series of messages with the OCE, during which the Ricin Buyer explored the possibility of the OCE supplying the Ricin Buyer with ricin, for the Ricin Buyer to resell to at least one secondary buyer.
On or about Dec. 18, 2014, the Ricin Buyer directed the OCE to send a quantity of ricin to a particular postal box in Manhattan (the Postal Box). The FBI later determined that the Postal Box belonged to Cheng Le. Later that same day, FBI agents observed Le wear latex gloves while retrieving a package from the Postal Box (the Package) and mailing it at a nearby post office (the Post Office). Law enforcement officers examined the Package, confirmed that it did not contain any hazardous materials, and determined that Le had listed a fake name as the Package’s return address. A postal employee (the Postal Employee) informed the FBI that the Postal Employee had seen Le at the Post Office on multiple prior occasions and that Le has worn blue latex gloves on at least some of those occasions.
The FBI prepared a package (the Sham Shipment) that was consistent with the Ricin Buyer’s request to the OCE, which was then delivered to the Postal Box. On Dec. 23, 2014, Le, wearing latex gloves, retrieved the Sham Shipment, opened it, and took the contents to his apartment, whereupon he was arrested by FBI agents.
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The indictment charges Le, 21, in two counts. Count One charges Le with attempting to possess a biological toxin for use as a weapon, and carries a maximum sentence of life in prison. Count Two charges Le with using a fictitious name in furtherance of unlawful business involving the mail, and carries a maximum sentence of five years’ imprisonment. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Assistant Attorney General Carlin is grateful for the outstanding investigative efforts of the FBI, the New York City Police Department (NYPD) and the United States Postal Inspection Service (USPIS). Le’s arrest is the result of the close cooperative efforts of the Justice Department’s National Security Division, U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force—which consists of law enforcement officers of the FBI, NYPD, USPIS and other agencies.
The case is being prosecuted by the office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty are in charge of the prosecution, with assistance provided by Trial Attorney Joseph Kaster of the Justice Department’s Counterterrorism Section.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Indictment
Complaint
New Jersey Man Sentenced to Ten Years in Prison for Sexual Offense with A MinorRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Robert Joseph Butler, age 27, of Clayton, New Jersey, was sentenced today to 120 months in federal prison and five years of supervised release for each count of Transporting a Minor in Interstate Commerce with the Intent to Engage in Sexual Activity and Sexual Assault. The sentences will run concurrent with each other. The Honorable P.K. Holmes III in the United States District Court for the Western District of Arkansas in Fort Smith presided over the sentencing.
U.S. Attorney Eldridge commented, “There is no higher priority in our office than cases involving crimes against children. The AMBER Alert system, which Arkansas implemented in 2001, was a critical instrument in the successful recovery of this young victim, as were the efforts of our partnering agencies in the investigation. We remain steadfast in our commitment to identifying and prosecuting those who commit federal crimes targeting children, including those like the defendant who seek to contact children over the internet for sexual purposes.”
Crawford County Sheriff Ron Brown stated, “Fortunately, this case had a good ending. During the investigation it was discovered that the abductor had hidden out in rural Crawford County and disguised the stolen car by painting it a different color because of the AMBER Alerts. This signifies the importance and success of the AMBER Alert System. I commend the Deputy U.S. Marshals and the Sheriff Deputies who were able to locate the victim and apprehend her abductor, and the U.S. Attorney’s office for presenting a solid case of which brought the abductor to this sentencing date.”
“FBI Arkansas commends the work by the U.S. Marshal Service, Crawford County Sheriff’s Office, and the U.S. Attorney’s Office, rescuing this child, apprehending the subject, and prosecuting this offense,” said David T. Resch, Special Agent in Charge at the Little Rock Federal Bureau of Investigation, “Our children are targeted each day, but Arkansans should be proud of the consistent cooperation exhibited as we all work to protect them.”
According to court records, Butler communicated with the fourteen-year-old minor victim through social media and text messaging for over a year before meeting her for the first time at her home in New Mexico in late 2013. The two remained in contact, and on March 31, 2014, Butler made arrangements to meet the minor victim in Albuquerque, New Mexico. At the pre-arranged meeting, the two decided to leave town and began traveling through Texas, Oklahoma, and ultimately the Western District of Arkansas. During their travels, Butler engaged in sexual activity with the minor. On April 17, 2014, deputies with the United States Marshal Service and Crawford County Sheriff’s Office located Butler and the minor victim in Fort Smith, Arkansas and placed Butler under arrest. Later, Butler admitted to an FBI Special Agent that he knew the minor was fourteen years old when he met her. Butler pleaded guilty to the charges on August 29, 2014.
This case was investigated by the Crawford County Sheriff’s Office, the U.S. Marshal’s Service and the FBI. Assistant U. S. Attorney Kyra Jenner prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
New Haven Man Involved in Marriage Fraud Scheme Is SentencedRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SYED NAQSHBAND, 33, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to three months of home confinement and three years of probation for his role in a marriage fraud scheme.
According to court documents and statements made in court, between July and August 2013, NAQSHBAND persuaded a female friend, who is a U.S. citizen, to travel with him to Pakistan and marry his nephew so that the nephew, a citizen of Pakistan, could enter the U.S. NAQSHBAND offered to help pay the woman’s travel expenses and assured her she would not have to live with his nephew once they returned to the U.S.
The scheme was disrupted just before the planned travel when the woman, accompanied by NAQSHBAND, applied for a U.S. Passport and the U.S. Passport Office alerted the FBI of certain suspicious observations.
On October 31, 2014, NAQSHBAND pleaded guilty to one count of conspiracy to commit marriage fraud.
This matter was investigated by the Federal Bureau of Investigation Joint Terrorism Task Force, the Bureau of Diplomatic Security, the U.S. Passport Office, Homeland Security Investigations and the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mountain Region Drug Task Force reflects on successful 2014, looks forward to 2015Read the Press Release
ELKINS, WEST VIRGINIA – The leaders of the Mountain Region Drug and Violent Crime Task Force announced the results of their collaborative efforts in 2014 and discussed what they hope to accomplish in 2015, including forming a stronger partnership with the public.
According to its board members, Mountain Region Drug Task Force investigations led to a total of 47 individuals being prosecuted in federal court last year. The prosecutions were for a variety of offenses, including methamphetamine distribution (23), prescription pills (17), marijuana (4), cocaine (2), and unlawful possession of firearms (1). Noteworthy prosecutions in 2014 included:
- Michael Wayne Johnson, of Elkins, West Virginia, who was sentenced to 120 months in prison for methamphetamine trafficking in Randolph County.
- John A. Boyles, of Kerens, West Virginia, was sentenced to 97 months in prison for crack cocaine distribution in Tucker County. His wife, Arica Boyles, was also convicted of cocaine distribution. She faces up to 20 years in prison and a fine of up to $1,000,000 when she is sentenced.
- Elizabeth Allison Sweatt, of Nice, California, was convicted of marijuana trafficking after authorities discovered that she was shipping marijuana from California to Randolph County, West Virginia for redistribution and sale. She was sentenced to five years of probation and ordered to forfeit $15,402.98 in U.S. currency and to pay a money judgment in the amount of $60,000.00.
- Arnold Lee Mayle, of Canton Ohio, and Dorothy Ellen Metz, of Athens, Georgia, were both convicted of selling prescription painkillers. Metz was sentenced to twelve months and one day in prison.
- Shawn David White and Christina Lee Kimble, both of Bartow, West Virginia, were convicted for methamphetamine trafficking in Pocahontas, Randolph, and Harrison counties. White faces up to 10 years in prison and Kimble faces up to 20 years in prison. They each face a fine of up to $250,000.00.
- Matthew L. Cordero, of Vineland, New Jersey, Jonathan Paul Calain, of Elkins, West Virginia, and two additional West Virginia residents, were charged with oxycodone trafficking in a 17-count superseding indictment. In addition to prison sentences, the Defendants face a money judgment of nearly $400,000.00.
In 2014, Defendants investigated by the Task Force were required to forfeit more than $31,000 in U.S. currency, two residences used to distribute controlled substances, two motor vehicles, multiple firearms, and money judgments in excess of $400,000.
“The Mountain Region Drug Task Force had an extremely successful 2014,” commented United States Attorney William J. Ihlenfeld, II. “Enhanced cooperation among law enforcement agencies has proven to be effective, and the Task Force has made it increasingly difficult for drug suppliers from different states to conduct business in North Central West Virginia. In the past year, we have successfully identified and prosecuted drug suppliers from Pennsylvania, Ohio, Georgia, New Jersey, Michigan, Florida and California. We hope that the public will join the fight in 2015 by supplying information to our hotline.”
The Task Force was formed in the fall of 2013 and is comprised of representatives from the U.S. Attorney’s Office, the Drug Enforcement Administration, the U.S. Forest Service, the West Virginia State Police, the Tucker County Sheriff and Prosecuting Attorney’s Offices, the Randolph County Sheriff and Prosecuting Attorney’s Offices, and the Pocahontas County Prosecuting Attorney’s Offices. Task Force investigations are also supported by the United States Postal Inspection Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Task force board members are pleased with the results produced by the unit.
“I believe that the Mountain Region Drug Task Force has been very effective in promoting the sharing of information and utilizing investigative resources for the benefit of all member agencies and jurisdictions,” reflected Randolph County Prosecuting Attorney Michael Parker. “The task force continues to do vital work to combat drug and violent crimes in Randolph, Tucker, and Pocahontas counties and has the full support of the Randolph County Prosecuting Attorney’s Office.”
“The Mountain Region Drug Task Force has brought greater cooperation between all levels of law enforcement,” stated Tucker County Prosecuting Attorney Raymond LaMora, III. “Even though we have not seen an uptick in state prosecutions, the information developed in many Tucker County investigations has led to federal indictments and prosecutions in surrounding counties. Each arrest, and each prosecution in our region, is a benefit to our county as the flow of narcotics begins to trickle less and less into the homes of our communities.”
Individuals with information on drug activity in the region are encouraged to call the Task Force hotline at 304-636-TIPS. Regular updates on the work of the Task Force are available at mountainregiondtf.com and via the official Twitter feed of the United States Attorney’s Office, @NDWVnews.
Mountain City Resident Sentenced for Role in Methamphetamine Manufacturing ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 20, 2015, the last of 42 individuals charged in related methamphetamine manufacturing cases was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge. Tony Jerome Snyder, 37, of Mountain City, Tenn., was sentenced to serve 135 months in federal prison for conspiring to manufacture more than 50 grams of methamphetamine. Upon his release from prison, he will be supervised for five years by U.S. Probation. There is no parole in the federal system.
Snyder and 19 others were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. Twenty-two others were also indicted in related methamphetamine manufacturing cases arising from the same investigation. All have now been sentenced.
The charges stemmed from a lengthy investigation spanning from 2006 to 2013 wherein these individuals conspired to obtain pseudoephedrine and other products needed to manufacture methamphetamine from various sources in the Eastern District of Tennessee, Western District of North Carolina, and Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine was used and distributed throughout the Eastern District of Tennessee.
U.S. Attorney Bill Killian praised the efforts of law enforcement involved in these cases stating, “These cases demonstrate the tremendous impact that collaborative investigations among law enforcement agencies can help to combat methamphetamine production and distribution. Our office has worked hard to help reduce the number of methamphetamine labs in east Tennessee and will continue to aggressively prosecute these cases.”
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Methamphetamine Task Force, Watauga County (North Carolina) Sheriff’s Office, and Drug Enforcement Administration. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represent the United States.
Morgan Hill Engineer Sentenced to 59 Months in Prison for Possessing Child PornographyRead the Press Release
SAN JOSE, CA—Paul Lawrence Vella was sentenced on January 15, 2015, to 59 months in prison for possession of child pornography, announced United States Attorney Melinda Haag, and Tatum King, acting special agent in charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) San Francisco.
On August 4, 2014, Vella pleaded guilty to possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). In pleading guilty, Vella, 60, of Morgan Hill, Calif., admitted that he used his computer to download child pornography through a P2P network and saved those images on hard drives, discs, and other digital medium. Vella also admitted that he knowingly possessed over 600 images of child pornography, including images of prepubescent minors and images portraying sadistic or masochistic conduct. Vella further admitted that law enforcement had identified approximately 86,284 images and 2,162 videos of child pornography, and that the National Center for Missing and Exploited Children identified 915 known child victims from his collection of child pornography. Filed documents and statements in open court confirmed that Vella possessed one of the largest collections of child pornography ever discovered in Silicon Valley, including numerous images and videos depicting the forcible rape of, and other sadistic violence against, very young children.
The Honorable Edward J. Davila, U.S. District Court Judge, handed down the 59 month sentence. Judge Davila also sentenced the defendant to a seven year period of supervised release, ordered him to register as a sex offender, to participate in a sex offender treatment program, and to pay $29,500 in restitution. Vella has been in federal custody since he pleaded guilty on August 4, 2014
Assistant U.S. Attorneys Joseph Fazioli and Daniel Kaleba prosecuted the case with the assistance of Laurie Worthen. The prosecution is a result of an investigation by HSI and the Santa Clara County Sheriff’s Office.
Manhattan U.S. Attorney and FBI Assistant Director Announce Arrest of New York Man for Attempting to Acquire Deadly Toxin, RicinRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that a federal grand jury returned a two-count Indictment against CHENG LE for attempting to acquire and distribute ricin and committing postal fraud. LE was arrested in Manhattan on December 23, 2014, by the FBI. He was presented before the U.S. Magistrate Judge James C. Francis IV on December 24, 2014, and has been detained since his arrest. He is expected to be arraigned on Friday, January 23, 2015, before the United States District Judge Alison J. Nathan.
U.S. Attorney Preet Bharara said: “As alleged, Cheng Le attempted to acquire ricin, a potentially lethal toxin, through the Dark Web so that it could be used for deadly purposes. Thankfully, with the help of our law enforcement partners he was intercepted and must now answer for his alleged crimes.”
Assistant Director-in-Charge George Venizelos said: “In the shadows of the Dark Web, criminals hide behind a veil of anonymity, sniffing out hidden opportunities to buy and sell illegal and potentially dangerous merchandise. As alleged, in this case, activity carried out in the marketplace served as a conduit for Le to obtain ricin. In his desire to acquire this potentially deadly toxin, he picked his own poison and now faces the consequences of the justice system.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court, and the Indictment:
Ricin is a highly potent and potentially fatal toxin with no known antidote. The “Dark Web” is a colloquial name for a number of extensive, sophisticated, and widely used online criminal marketplaces, which allow participants to buy and sell illegal items, including ricin.
In early December 2014, an individual (the “Ricin Buyer”) contacted an FBI online covert employee (the “OCE”) on a particular Dark Web marketplace using an encrypted messaging service. In December of 2014, the Ricin Buyer exchanged a series of messages with the OCE, during which the Ricin Buyer explored the possibility of the OCE supplying the Ricin Buyer with ricin, for the Ricin Buyer to resell to at least one secondary buyer.
The Ricin Buyer’s messages to the OCE included the following:
- “If [the ricin’s] good quality, I’ve already had buyers lining up.”
- “Does ricin have antidote? Last I check there isn’t one, isn’t it?”
- “I probably told you this before, about mixing one and only one toxic pill into a bottle of normal pills. They all look identical. And as the target takes the medicine every day, sooner or later he’d ingest that poisonous pill and die. Even if there is a murder investigation, they won’t find any more toxin. 100% Risk Free.”
- “I’ll be trying out new methods in the future. After all, it is death itself we’re selling here, and the more risk-free, the more efficient we can make it, the better.”
- “Also, besides that one bottle of pills with one poisonous pill in there, can you send some extra loose powder/liquid ricin? I’d like to test something.”
On December 18, 2014, the Ricin Buyer directed the OCE to send a quantity of ricin to a particular postal box in Manhattan (the “Postal Box”). The FBI later determined that the Postal Box belonged to CHENG LE. Later that same day, FBI agents observed LE wear latex gloves while retrieving a package from the Postal Box (the “Package”) and mailing it at a nearby post office (the “Post Office”). Law enforcement officers examined the Package, confirmed that it did not contain any hazardous materials, and determined that LE had listed a fake name as the Package’s return address. A postal employee (the “Postal Employee”) told the FBI that the Postal Employee had seen LE at the Post Office on multiple prior occasions and that LE had worn blue latex gloves on at least some of those occasions.
On December 22, 2014, the FBI prepared a mock shipment of ricin (the “Sham Shipment”) that was consistent with the Ricin Buyer’s request to the OCE. The Sham Shipment included both a fake “ricin” tablet concealed in a pill bottle (the “Pill Bottle”), and a quantity of loose fake “ricin” powder. The next day, the Sham Shipment was delivered to the Postal Box. LE, wearing latex gloves, retrieved the Sham Shipment, opened it, and took the contents to his apartment. When FBI agents entered LE’s apartment to arrest LE and to search the apartment, pursuant to a search warrant, they saw the Pill Bottle open in his apartment.
The Indictment charges LE, 21, of New York, New York with one count of attempting to possess a biological toxin for use as a weapon, which carries a maximum sentence of life in prison, and one count of using a fictitious name in furtherance of unlawful business involving the mail, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the outstanding investigative efforts of the FBI, the New York City Police Department (“NYPD”), and the United States Postal Inspection Service (“USPIS”). LE’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, USPIS, and other agencies – and the National Security Division of the U.S. Department of Justice.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v. Cheng Le Indictment
US v. Cheng Le ComplaintLeader of Las Vegas Playboy Bloods Street Gang Sentenced to 23 Years in PrisonRead the Press Release
A leader of the Las Vegas Playboy Bloods street gang was sentenced to 23 years in prison today for engaging in a racketeering conspiracy and possessing crack cocaine with the intent to distribute it, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
Markette Tillman, 31, of Las Vegas, Nevada, pleaded guilty on July 29, 2014, two days into his jury trial, before U.S. District Judge Kent J. Dawson of the District of Nevada.
According to Tillman’s plea agreement and evidence presented at trial, the Bloods is a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the national Bloods gang with local control and operation within the Las Vegas metropolitan area. The Playboy Bloods operate primarily in the Sherman Gardens Annex, a Las Vegas public housing complex commonly called the “Jets.”
Tillman admitted that on Jan. 20, 2004, he aided and abetted the murder of a security guard at the Jets. The guard approached Tillman and several other Playboy Bloods and told them to leave the property. An argument ensued and the guard rode away on his bicycle to get help. One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him.
Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf. Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine over the course of the racketeering conspiracy.
Tillman was the last of 10 gang members charged in the indictment filed in 2008 to be sentenced. The nine other convicted gang members received the following sentences:
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Jacorey Taylor, aka “Mo-B,” 31, was sentenced to life in prison on Oct. 21, 2013, after being convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, engaging in a drug-trafficking conspiracy and possessing crack cocaine with the intent to distribute it.
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Steven Booth, aka “Stevie-P,” 27, was sentenced to 20 years in prison on April 10, 2013, after pleading guilty to engaging in a racketeering conspiracy involving two murders.
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Reginald Dunlap, aka “Bowlie,” 30, was sentenced to 20 years in prison on April 9, 2013, after pleading guilty to engaging in a racketeering conspiracy involving one murder.
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Demichael Burks, aka “Mikey P,” 29, was sentenced to 6 ½ years in prison on Dec. 3, 2010, after pleading guilty to engaging in a racketeering conspiracy.
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Anthony Mabry, aka “Akim Slim,” 43, was sentenced to 14 years in prison on Oct. 20, 2010, after pleading guilty to engaging in a racketeering conspiracy.
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Delvin Ward, aka “D-Luv,” 37, was sentenced to 11 years in prison on Sept. 17, 2010, after pleading guilty to engaging in a racketeering conspiracy.
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Terrence Thomas, aka “Seven,” 40, was sentenced to 10 years in prison on June 16, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.
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Sebastian Wigg, aka “Rock,” 36, was sentenced to five years in prison on March 29, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.
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Fred Nix, aka “June P,” 36, was sentenced to five years in prison on March 29, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.
The case was investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and was prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Nicholas D. Dickinson and Phillip N. Smith Jr. of the District of Nevada.
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Lea County Man Sentenced to Twelve and a Half Years for Violating Federal Firearms LawsRead the Press Release
Little Prosecuted as Part of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Cody Allen Little, 34, of Lovington, N.M., was sentenced today in federal court in Las Cruces, N.M., to 150 months in federal prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Lea County Sheriff Steve Ackerman.
U.S. Attorney Damon P. Martinez said that Little was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“It is an honor to work with our federal partners to take dangerous criminals off our streets,” said 5th Judicial District Attorney Janetta B. Hicks.
“This investigation is an example of the hard work of ATF special agents and the excellent cooperation we have with our law enforcement partners. Because of this cooperation, we were able to seize these stolen firearms and remove them from this prohibited possessor,” said Special Agent in Charge Thomas G. Atteberry. “This sentence sends a clear message that gun crime equals hard time. The success of this investigation is attributed to the excellent undercover work that was conducted and the solid partnership between ATF, our law enforcement partners, and the United States Attorney’s Office.”
Little was arrested on a criminal complaint in June 2012, and subsequently was charged with being a felon in possession of firearms and ammunition and possession of stolen firearms in a superseding indictment. The superseding indictment alleged that Little unlawfully possessed firearms and ammunition, including a stolen assault rifle and a stolen shotgun, on Nov. 1, 2011, in Lea County, N.M. At the time, Little was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 5th Judicial District Court for the State of New Mexico in Lea County: (1) burglary, battery on a peace officer and possession of drug paraphernalia, (2) battery on a peace officer and resisting an officer, and (3) burglary and larceny.
On May 21, 2013, a federal jury found Little guilty on both counts of the superseding indictment. The trial evidence established that on the night of Oct. 24, 2011, the “Southwest Arms,” a gun shop in Lovington owned and operated by a federal firearms licensee (FFL), was burglarized and seven weapons, including several assault rifles, were stolen. Within days, law enforcement authorities and the FFL received tips leading them to focus on Little, who was renting in a converted well-house located on a residential property less than half a mile away from the gun shop, as a potential suspect in the burglary.
On Nov. 1, 2011, officers went to the residential property on which the well-house was located to follow up on the tips. While speaking with an individual at the residence, the officers saw Little walk out of the well-house and away from the area where the officers were standing, and disappear from sight. When an officer walked to the area where Little was last seen, he observed a storage shed with its doors secured in the open position. Glancing into the shed, the officer observed parts of an AR 15 style assault rifle and AR 15 style assault rifles in plain view.
After obtaining a search warrant for the property, officers recovered two firearms and ammunition from the well-house where Little was living. The first firearm, a .308 caliber assault rifle with a loaded 19-round magazine, was found inside a sleeping bag in the well-house. The second, a 12 gauge shotgun, was found under the bed in the well-house. Two shot gun shells were found on a shelf above the bed. Both firearms were among the weapons stolen from the gun shop on Oct. 24, 2011. After confirming that Little was residing in the well-house, the officers arrested Little on state charges on Nov. 2, 2011. The state charges against Little were dismissed after he was arrested on federal charges.
The case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the 5th Judicial District Attorney’s Office, the Lovington Police Department and the Lea County Sheriff’s Department, and was prosecuted by Assistant U.S. Attorneys Marisa A. Lizarraga and Shaheen P. Torgoley.
Key Player in ‘Silk Road 2.0’ Arrested in BellevueRead the Press Release
A Bellevue, Washington resident who assisted in the management of the Silk Road 2.0 website was arrested late last week on a complaint charging him with conspiracy to distribute heroin, methamphetamine, and cocaine, announced Acting United States Attorney Annette L. Hayes. BRIAN RICHARD FARRELL, 26, who used the moniker “DoctorClu” on the Silk Road site came to the attention of Homeland Security Investigations agents last July. Silk Road 2.0 was a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. The investigation of FARRELL resulted in a search warrant that was served earlier this month, and the arrest of FARRELL. He will appear in U.S. District Court in Seattle at 2:00 PM today.
“The arrest of Mr. Farrell is proof that federal law enforcement continues its efforts to root out those who subvert the Internet to set up black markets for illegal goods,” said Acting U.S. Attorney Annette L. Hayes. “Those who attempt to hide their tracks using sophisticated computer networks will be found because of the determined work of law enforcement agencies such as Homeland Security Investigations, the U.S. Postal Inspection Service and the FBI.”
“The coordinated efforts of U.S. and international law enforcement agencies to disrupt anonymous black market websites continues to pay off with this arrest,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “It is one of HSI’s top priorities to shutdown these hidden websites and bring their criminal operators and customers to justice."
According to the criminal complaint, Silk Road 2.0 went online in November 2013 following the government’s seizure of the first Silk Road website and the arrest of its alleged owner and operator, Ross William Ulbricht, a/k/a “Dread Pirate Roberts.” In November 2014, Blake Benthall, a/k/a “Defcon,” the operator of the Silk Road 2.0 site, was arrested in San Francisco. The complaint filed today charges that FARRELL was a key assistant to Benthall in running the site.
“Silk Road 2.0” was one of the most extensive, sophisticated, and widely used criminal marketplaces on the Internet. The website operated on the “Tor” network, a network of computers on the Internet, located around the world, designed to ‘anonymize’ or conceal the true IP addresses of computers that used the network and thereby the identities of the network’s users. Since its launch in November 2013, Silk Road 2.0 was used by thousands of drug dealers and other vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to buyers throughout the world, as well as to launder millions of dollars generated by these unlawful transactions. As of September 2014, Silk Road 2.0 was generating sales of at least approximately $8 million per month and had approximately 150,000 active users.
FARRELL was one of the small staff of online administrators and forum moderators who assisted Blake Benthall with the day-to-day operation of the website. Benthall and this small staff controlled and oversaw all aspects of Silk Road 2.0, including, among other things: the computer infrastructure and programming code underlying the website; the terms of service and commission rates imposed on vendors and customers of the website; and the massive profits generated from the operation of the illegal business. The complaint alleges that FARRELL, operating under the moniker “DoctorClu,” was involved in activities such as approving new staff and vendors for the website, and organizing a denial of service attack on a competitor. When the search warrant was served at FARRELL’s Bellevue home, agents seized $35,000 in cash as well as silver bullion and various types of drug paraphernalia.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Seattle-Tacoma Border Enforcement Security Task Force (BEST Seattle), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Postal Inspection Service (USPIS), and the FBI. The case is being prosecuted by Assistant United States Attorney Thomas Woods.
BEST Seattle is comprised of members from HSI; U.S. Customs and Border Protection's Office of Field Operations; the U.S. Secret Service; the U.S. Coast Guard Investigative Service; the USPIS; and the Seattle and Port of Seattle police department. BEST Seattle investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.
Kentucky woman sentenced for arranging drug buysRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Tonda Click, 58, of Ashland, Kentucky, was sentenced to five years of federal probation.
Click pleaded guilty in September 2014, to using a telephone to facilitate a drug crime. On Dec. 26, 2013, Click made a series of calls to a known dealer to arrange the sale of cocaine to a third party.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The case was investigated by the Drug Enforcement Agency, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department. Assistant United States Attorney Greg McVey was in charge of the prosecution.
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Justice Department and the City of Albuquerque Jointly Select Independent Monitor to Oversee Police ReformsRead the Press Release
The Justice Department announced today that, jointly with the city of Albuquerque, it is notifying the District Court of the selection of Dr. James R. Ginger—a nationally recognized expert on police reform and organizational change—as the independent monitor of the settlement agreement entered into by the department and the city of Albuquerque to reform the Albuquerque Police Department (APD). Ginger and his team will be responsible for independently assessing the full implementation of the settlement agreement; reporting on the status of compliance to the court, the parties and the community; assisting the parties in resolving compliance challenges that may emerge; and providing technical guidance as needed to the APD.
Ginger has successfully overseen similar court-enforceable agreements aimed at increasing community trust and implementing sustainable police reforms. He has first-hand experience in ensuring critical reform across the country and a proven record of timely implementing reform. He was appointed as independent monitor over the first consent decree ever obtained by the Justice Department in Pittsburgh, Pennsylvania, as part of its enforcement of civil rights laws aimed at ensuring constitutional and effective policing. He worked closely with the parties and the Pittsburgh Bureau of Police to implement comprehensive reforms, designed to address excessive use of force, false arrests, improper searches and seizures, failures in the disciplinary system and inadequate first-line supervision. He was also appointed as monitor over the consent decree involving the New Jersey State Police and its efforts to eradicate discriminatory policing practices. Ginger has been a leader in developing monitoring technologies and methodologies used in evaluating compliance with federal consent decrees. Ginger has also worked with law enforcement agencies in New York, Ohio, Texas, Florida, Georgia, Alabama, Indiana and others. He is currently the Chief Executive Officer of Public Management Resources Inc. (PMR) and is responsible for strategic planning, marketing, budgeting and management.
Before founding PMR, Ginger worked as an Associate Professor of Criminal Justice, Executive Director for the Center of Justice Policy, Deputy Director of the Police Foundation and Director of the Southern Police Institute. Ginger was credited with planning, developing and implementing a nationwide technical assistance and training project for the United States Bureau of Justice Assistance and developing nation-wide programs as part of the Southern Police Institute.
The monitoring team led by Ginger includes experts who have proven experience in assessing reform similar to those contained in the settlement agreement with Albuquerque. The members of the monitoring team will include, among others, G. Patrick Gallagher, President of the Gallagher-Westfall Group; Dan Giaquinto, legal specialist and partner at Kern, Augustine, Conroy, & Schoppman, P.C.; Phil Coyne, Principal of Coyne Enterprise Solutions LLC; Mary Kealoha, Vice-President of the Gallagher-Westfall Group; Albert Preik, former Training Director for the Pittsburgh Bureau of Police; Peter Sarna, nationally recognized expert in police training and use of force; and Dave Torres, former Commandant of the New Jersey State Police training academy.
“We thank all of the individuals and firms that submitted letters of interest to serve as monitor and for their many accomplishments,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The decision to select the most qualified candidate from among the field was not an easy one, and we thank the community and other stakeholders for their input on this critical step of the implementation process.”
“Dr. Ginger’s proven success with police departments and criminal justice systems in the United States will assist in promoting compliance with critical structural and systemic reforms that are necessary to restoring public confidence and achieving effective and constitutional policing in Albuquerque,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are pleased to have worked collaboratively with the City to select Dr. Ginger, who we believe is uniquely positioned to assess and report on the Albuquerque Police Department’s reform efforts.”
Ginger’s application materials can be found here.
A copy of the complaint, the final agreement can be found at www.justice.gov/crt/about/spl.
Justice Department and the City of Albuquerque Jointly Select Independent Monitor to Oversee Police ReformsRead the Press Release
ALBUQUERQUE – The Justice Department announced today that, jointly with the city of Albuquerque, it is notifying the District Court of the selection of Dr. James R. Ginger – a nationally recognized expert on police reform and organizational change – as the independent monitor of the settlement agreement entered into by the department and the city of Albuquerque to reform the Albuquerque Police Department (APD). Ginger and his team will be responsible for independently assessing the full implementation of the settlement agreement; reporting on the status of compliance to the court, the parties and the community; assisting the parties in resolving compliance challenges that may emerge; and providing technical guidance as needed to the APD.
Ginger has successfully overseen similar court-enforceable agreements aimed at increasing community trust and implementing sustainable police reforms. He has first-hand experience in ensuring critical reform across the country and a proven record of timely implementing reform. He was appointed as independent monitor over the first consent decree ever obtained by the Justice Department in Pittsburgh, Pennsylvania, as part of its enforcement of civil rights laws aimed at ensuring constitutional and effective policing. He worked closely with the parties and the Pittsburgh Bureau of Police to implement comprehensive reforms, designed to address excessive use of force, false arrests, improper searches and seizures, failures in the disciplinary system and inadequate first-line supervision. He was also appointed as monitor over the consent decree involving the New Jersey State Police and its efforts to eradicate discriminatory policing practices. Ginger has been a leader in developing monitoring technologies and methodologies used in evaluating compliance with federal consent decrees. Ginger has also worked with law enforcement agencies in New York, Ohio, Texas, Florida, Georgia, Alabama, Indiana and others. He is currently the Chief Executive Officer of Public Management Resources Inc. (PMR) and is responsible for strategic planning, marketing, budgeting and management.
Before founding PMR, Ginger worked as an Associate Professor of Criminal Justice, Executive Director for the Center of Justice Policy, Deputy Director of the Police Foundation and Director of the Southern Police Institute. Ginger was credited with planning, developing and implementing a nationwide technical assistance and training project for the United States Bureau of Justice Assistance and developing nation-wide programs as part of the Southern Police Institute.
The monitoring team led by Ginger includes experts who have proven experience in assessing reform similar to those contained in the settlement agreement with Albuquerque. The members of the monitoring team will include, among others, G. Patrick Gallagher, President of the Gallagher-Westfall Group; Dan Giaquinto, legal specialist and partner at Kern, Augustine, Conroy, & Schoppman, P.C.; Phil Coyne, Principal of Coyne Enterprise Solutions LLC; Mary Kealoha, Vice-President of the Gallagher-Westfall Group; Albert Preik, former Training Director for the Pittsburgh Bureau of Police; Peter Sarna, nationally recognized expert in police training and use of force; and Dave Torres, former Commandant of the New Jersey State Police training academy.
“We thank all of the individuals and firms that submitted letters of interest to serve as monitor and for their many accomplishments,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The decision to select the most qualified candidate from among the field was not an easy one, and we thank the community and other stakeholders for their input on this critical step of the implementation process.”
“Dr. Ginger’s proven success with police departments and criminal justice systems in the United States will assist in promoting compliance with critical structural and systemic reforms that are necessary to restoring public confidence and achieving effective and constitutional policing in Albuquerque,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are pleased to have worked collaboratively with the City to select Dr. Ginger, who we believe is uniquely positioned to assess and report on the Albuquerque Police Department’s reform efforts.”
Ginger’s application materials can be found here.
The complaint, the final agreement, and other information regarding this matter can be found at http://www.justice.gov/usao/nm/APD.html and www.justice.gov/crt/about/spl.
Jury Convicts Three Gang Members and A Former El Paso County Juvenile Probation Officer of Federal Sex Trafficking ChargesRead the Press Release
In El Paso, a federal jury convicted four Folk Nation/Gangster Disciples members, one of whom was a former juvenile probation officer, of federal sex trafficking charges announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On Friday, jurors returned guilty verdicts against gang members Deion Lockhart, age 26, Richard Gray, age 25, and Emmanual Lockhart, age 24, and Timothy McCullouch, Jr. a 29-year-old former El Paso County juvenile probation officer of one count of conspiracy to commit sex trafficking of persons. Jurors also convicted: Deion Lockhart of one count of sex trafficking by force, fraud and coercion and one count of aiding and abetting sex trafficking of children; Richard Gray, one count of sex trafficking by force, fraud and coercion, one count of sex trafficking of children and one count of transportation for prostitution; and, Timothy McCullouch, one count of sex trafficking of children.
Testimony during trial revealed that between May 2012 and March 2013, the defendants were involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang. The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and, in Colorado.
Each defendant faces up to life in federal prison. Sentencing is scheduled for April 2015, before U.S. District Judge Philip R. Martinez.
Two fellow gang members and co-defendants pleaded guilty prior to trial. In May of last year, Tai Von Lynch and Brandon Shapiro pleaded guilty to conspiracy to commit sex trafficking of persons. On October 28, 2014, Lynch was sentenced to 15 years in federal prison followed by five years of supervised release and ordered to pay a $2,500 fine. Shapiro, who remains in custody, is awaiting sentencing scheduled for February. He faces an agreed sentence of five years in federal prison.
In a separate, but related matter, Folk Nation/Gangster Disciples members Kiry Hakeem Nalls, age 25, and Grant Rutledge, age 25, were sentenced to federal prison for their roles in a forced prostitution scheme. In April 2014, Nalls was sentenced to ten years in federal prison followed by five years of supervised release and fined $2,500 after pleading guilty to one count of forced labor. In March 2014, Rutlege was sentenced to ten months in federal prison followed by five years of supervised release and fined $500 after pleading guilty to one count of misprision of felony.
These task force investigations were conducted by the ACTeam (Anti-Trafficking Coordination Team) comprised of personnel from Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), U.S. Department of Labor and the United States Attorney’s Office together with the El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“This verdict is a major victory for HSI and its law enforcement partners within the ACTeam,” said HSI Special Agent in Charge Waldemar Rodriguez. “HSI plans to employ its ample authority, resources and resolve to investigate human trafficking activity in our community, identify and rescue victims, and bring traffickers to justice."
“The FBI has a zero tolerance on Human Trafficking and all traffickers, whether gang members or government employees, and will be aggressively pursued and held accountable,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these cases on behalf of the Government.
Jamaican National Sentenced for Illegal Re-Entry and Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Carl Spencer, a/k/a Carl Spence, a/k/a Barrington Antonio Stewart, a/k/a Clyde Crenshaw, 51, of Kingston, Jamaica national, who was convicted by a federal jury of illegal re-entry and aggravated identity theft, was sentenced to 66 months in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney John J. Field, who handled the case, stated that Spencer was previously deported and removed in 2006 after being prosecuted and convicted of drug crimes. On November 9, 2012, the defendant was found by agents with Immigration and Customs Enforcement. When stopped by agents, Spencer presented a fake Georgia driver’s license in the name of Clyde Crenshaw, a United States citizen and resident of the NYC area.
The verdict is the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Ironworkers Business Manager Convicted in Racketeering ConspiracyRead the Press Release
PHILADELPHIA – Joseph Dougherty, 73, of Philadelphia, former Secretary/Business Manager of Local 401, was found guilty today, by a federal jury, of racketeering conspiracy and other charges connected to a dozen members of Ironworkers Local 401. The jury returned guilty verdicts on the counts of RICO conspiracy, malicious damage to property by means of fire, use of fire to commit a felony, attempted malicious damage to property by means of fire, and conspiracy to damage to property by means of fire. The 11 co-defendants in the case pleaded guilty. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for April 29, 2015.
The indictment details incidents in which the defendants threatened or assaulted contractors or their employees, and damaged construction equipment and job sites as part of a concerted effort to force contractors to hire and pay Local 401 workers, even when those workers performed no function.
The defendants had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members. The business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. The defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.”
At sentencing, Dougherty faces a mandatory minimum term of 15 years in prison up to a statutory maximum of 110 years.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Howes Man Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Howes, South Dakota, man has been indicted by a federal grand jury for Larceny.
Leland Logg, age 38, was indicted on January 13, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 15, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or between April 7, 2014, and June 20, 2014, Logg took and carried away, with the intent to steal and purloin, money, funds, and assets, which were the personal property of Dakota Oyate Challenge Basketball Tournament, and had a value of more than $1,000.
The charge is merely an accusation and Logg is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Logg was released on bond pending trial. A trial date has not been set.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDUIN ALEXANDER BETANCOURTH-SALGADO, age 27, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Jay C. Zainey sentenced BETANCOURTH-SALGADO to two months imprisonment followed by one year of supervised release, and a $100 special assessment. Following his incarceration, BETANCOURTH-SALGADO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about November 10, 2014, BETANCOURTH-SALGADO was encountered by agents of the Immigration and Customs Enforcement outside the Jefferson Parish Juvenile Court. ICE agents interviewed BETANCOURTH-SALGADO regarding his immigration status and he admitted to agents that he had illegally reentered the United States after having been deported. An ICE records check confirmed that BETANCOURTH-SALGADO was in fact a citizen of Honduras who had been deported from the United States on April 15, 2011. ICE agents arrested BETANCOURTH-SALGADO and placed an immigration hold on him.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Harrold Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Harrold, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Lonnie Patrick Big Eagle, age 38, was indicted on January 13, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 9, 2014, and August 10, 2014, Big Eagle committed a domestic assault upon his common law wife, causing substantial bodily injury. At the time of the assault, Big Eagle had a final conviction, on at least two separate prior occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The charge is merely an accusation and Big Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Division. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Big Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Grand Prairie, Texas, Real Estate Investor Sentenced to Federal Prison for Conspiring to Commit Wire FraudRead the Press Release
FORT WORTH, Texas — A local real estate investor, who operated Steelman Homes, was sentenced today for his role in a wire fraud conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Calvin Richard Ford, 45, most recently of Grand Prairie, Texas, was sentenced today by U.S. District Judge Terry R. Means to 37 months in federal prison and ordered to pay $433,849 in restitution to Fannie Mae and Freddie Mac. Ford pleaded guilty on June 18, 2014, to an Information charging one count of conspiracy to commit wire fraud. He must surrender to the Bureau of Prisons on February 9, 2015.
Ford admitted that he conspired to defraud Colorado Federal Savings Bank. According to documents filed in the case, Ford encouraged people to buy homes as investments, and he told these potential investors that he would arrange to have the homes they purchased rented and would make all of the necessary mortgage payments from the rental proceeds.
Ford purchased the homes and then sold them to investors at an inflated price. To ensure these investors could qualify for the loans they needed to purchase the homes from him, Ford gave them money from the sales proceeds that they could use as a down payment. This arrangement was intended to deceive lenders into believing the investors had sufficient assets to make a down payment. The arrangement, however, was not disclosed on the HUD-1 forms or loan applications.
After selling the homes to investors, Ford often failed to find renters and did not pay the mortgages as promised. Consequently, the mortgages went unpaid and homes went into foreclosure. Ford sold more than 80 properties to investors during the course of the scheme.
The Federal Housing Finance Agency – Office of Inspector General and the FBI investigated.
Golden Grove Corrections Officer Pleads Guilty to Providing Prison ContrabandRead the Press Release
St. Croix, USVI – Former Virgin Islands Bureau of Corrections (BOC) officer Marcel Scotland pleaded guilty Friday in District Court on St. Croix to providing prison contraband, announced United States Attorney Ronald W. Sharpe and Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito S. Guarino.
According to the plea agreement filed with the court, on January 31, 2014, Scotland appeared for work at the Golden Grove Correctional Facility on St. Croix where he was employed as a corrections officer. As he entered the Golden Grove facility, he was asked topresent his bag for a search by a BOC official. When the official took possession of Scotland's bag, Scotland fled. A search of the bag revealed multiple cigarette lighters, rolling papers, cookies, multiple dime baggies, and a bag of marijuana. The BOC official called the Virgin Islands Police (VIPD), and VIPD notified the DEA. Scotland subsequently surrendered and told the DEA that he brought the items for an inmate but was unaware that drugs were present.
“It is a violation of federal and local law to introduce, or attempt to introduce, contraband into a prison or detention facility,” U.S. Attorney Sharpe said.
A sentencing date has been set for May 20, 2015. Scotland faces up to five years in prison and a fine of up to $250,000.00.
The case was investigated by the DEA and VIPD. It was prosecuted by Assistant U.S. Attorney Alphonso Andrews.
Georgia Men Sentenced for Recruiting Local Homeless Men in Check Cashing RingRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shrerod Terry, age 37, and Akram H. Muhammad, age 37, both of Atlanta, Georgia, were sentenced today in federal court in Greenville, for conspiracy to negotiate counterfeit checks, a violation of Title 18, United States Code, Section 371. Senior United States District Judge Henry M. Herlong of Greenville imposed a 15-month sentence for Terry and a 24-month sentence for Muhammad. He ordered the men to pay over $23,000 in restitution.
Evidence from the change of plea hearing established that Terry and Muhammad traveled from Atlanta, Georgia, to Greenville. The men went to “Tent City,” a known location in Greenville for homeless people. Terry and Muhammad proceeded to recruit homeless people to cash counterfeit checks for them. Terry and Muhammad would provide the homeless recruits with clean clothes, a place to wash up, and then would take them to various banks to negotiate the counterfeit checks. The activities of the duo were first discovered by deputies with the Greenville County Sheriff’s Office when conducting a traffic stop. A K-9 alerted on the vehicle and a small quantity of marijuana was discovered during a search. While looking for additional drugs, deputies discovered counterfeit checks and called Inspectors from the U.S. Postal Inspection Service for assistance. Law enforcement estimates that Terry and Muhammad used homeless people to cash $23,159.56 in counterfeit checks before they were apprehended.
The case was investigated by deputies of the Greenville County Sheriff’s Office and agents of the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Fourth Laguna Pueblo Member Sentenced for Assault Conviction Arising Out of Drive-By Shooting of Acoma Pueblo HomeRead the Press Release
ALBUQUERQUE – Andrea Carrillo, 22, a member of the Laguna Pueblo, N.M., was sentenced this afternoon in federal court to 21 months in federal prison followed by two years of supervised release for her assault conviction arising out of the drive-by shooting of an Acoma Pueblo home.
Carrillo is the last of four members of Laguna Pueblo to be sentenced in this case. Her three co-defendants three were sentenced in Dec. 2014, based on guilty pleas to assault charges. Preston Chino, 22, and Cameron Joseph Kasero, 21, were each sentenced on Dec. 2, 2014, to 96 months in federal prison followed by three years of supervised release. Joseph Edward Lucero, 25, was sentenced on Dec. 9, 2014, to 74 months in federal prison followed by two years of supervised release.
The four co-defendants were indicted on assault and firearms offenses in July 2013. The indictment alleged that the quartet assaulted two men and a woman on Dec. 9, 2012, by discharging firearms at a residence located in Acoma Pueblo in Cibola County, N.M.Chino pled guilty on Aug. 27, 2014, and admitted aiding Kasero and Lucero in assaulting the victims by providing them with shotguns and ammunition. He also admitted driving them to the victims’ Acoma Pueblo home where they discharged the shotguns multiple times in the direction of the residence. Kasero pled guilty on Sept. 2, 2014, and admitted assaulting the victims by discharging a shotgun at a residence while it was occupied by the victims. Lucero pled guilty on Sept. 9, 2014, and admitted repeatedly discharging a weapon at the victims’ residence.
Carrillo pled guilty on Sept. 2, 2014, and admitted aiding the assault on the victims by providing her co-defendants with directions to the residence while knowing that they intended to commit an assault at that location.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, the Acoma Pueblo Tribal Police Department and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Four Men Plead Guilty in International Counterfeit Currency ConspiracyRead the Press Release
ALEXANDRIA, Va. – Itzhak Loz, 47, and Ronen Fakiro, 47, both of Rishon Le Zion, Israel, along with brothers Arkadiy Bangiyev, age 37, of Rego Park, New York, and Eduard Bangiyev, age 39 of Forest Hills, New York, have all pleaded guilty to RICO conspiracy involving multiple acts of counterfeiting of U.S. currency and money structuring.
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. 1:14CR206.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Joseph Clancy, Acting Director of the United States Secret Service, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady.
According to court documents filed in this case, Loz, Fakiro, and the Bangiyev brothers participated in a criminal enterprise that engaged in multiple acts involving counterfeiting of U.S. currency and money structuring. From 2004 through 2014, the Bangiyevs distributed counterfeit high-quality $50 and $100 federal reserve notes that were manufactured in Israel and the United States by Itzhak Loz and others through the off-set printing process. Beginning around January 2014, Fakiro and Loz imported into the United States from Canada and Israel numerous printing presses and machines. They shipped this printing equipment to a warehouse they purchased in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes. At the New Jersey warehouse, Fakiro and Loz manufactured over $2.56 million worth of counterfeit $100 notes. In addition, Fakiro and Loz were in the process of counterfeiting the $100 note released in October 2013 at the New Jersey warehouse, including certain security features for the $100 note, including watermarks, security thread simulations and blue 3-D ribbons. In May 2014, the U.S. Secret Service seized approximately $2.56 million worth of counterfeit $100 notes from a storage unit leased by Loz in New York. According to the United States Secret Service, over $86 million in counterfeit U.S. currency linked to this organization have been passed or seized by law enforcement globally since 1999.
Loz, Fakiro and the Bangiyev brothers were indicted by a federal grand jury on August 7, 2014. Loz will be sentenced on May 15, 2015. Fakiro will be sentenced on May 8, 2015. The Bangiyevs will be sentenced on May 1, 2015. All four face a maximum penalty of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Secret Service. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon L. Kromberg are prosecuting the case on behalf of the United States.Tweet
Fort Worth Chiropractor Sentenced in Heath Care Fraud CaseRead the Press Release
FORT WORTH, Texas — The owner/operator of a chiropractic clinic in Fort Worth, Texas, was sentenced this morning on a federal felony conviction stemming from her submission of false reimbursement claims to Medicare and Medicaid, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Melva Mitchell, 35, of Fort Worth, a licensed chiropractor, was sentenced by U.S. District Judge Reed C. O’Connor to 12 months and one day in federal prison and ordered to pay $126,048 in restitution to Medicare and Medicaid for making false statements relating to health care matters. Mitchell operated Best Choice Chiropractic and Wellness Center on Oakland Boulevard in Fort Worth. She must surrender to the Bureau of Prisons on February 24, 2015.
According to documents filed in the case, Mitchell submitted claims for reimbursement to Medicare and Medicaid for chiropractic services that were not performed. She obtained the Medicare and Medicaid provider information for other individuals who were licensed Occupational Therapists, and used those persons’ provider information to obtain payments from Medicare and Medicaid for occupational therapy services that were not provided or were not provided by requisitely licensed individuals. Mitchell paid one of the individuals whose provider information she used a portion of the Medicare and Medicaid reimbursements she received.
As one example of her false statements, Mitchell submitted claims to Medicare and Medicaid indicating that she performed 25 separate chiropractic manipulations in her office from March 8, 2011 to March 10, 2011. These claims were false and fraudulent because she was on vacation in Puerto Rico at the time.
The U.S. Department of Health and Human Services – Office of Inspector General, FBI, and Texas Attorney General’s Medicaid Fraud Control Unit investigated. Special Assistant U.S. Attorney Douglas Brasher prosecuted.
Fort Thompson Man Indicted on Drug ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance.
Christopher Spider, age 35, was indicted on January 13, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that commencing on or about September 1, 2014, and continuing through December 29, 2014, Spider knowingly and intentionally combined, conspired, confederated and agreed with others to distribute and possess with intent to distribute a controlled substance. The Indictment also alleges that on or about December 29, 2014, Spider knowingly and intentionally possessed with intent to distribute a detectable amount of methamphetamine.
The charges are merely accusations and Spider is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Spider was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Vice President at Harrisburg Area Community College Sentenced to Fifteen Months for Wire FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today in Harrisburg that Nancy Rockey, age 55, of Harrisburg was sentenced by Chief U.S. District Court Judge Christopher C. Conner to 15 months in prison for wire fraud.
According to United States Attorney Peter Smith, Rockey was employed by Harrisburg Area Community College (HACC) from 1980 until her resignation in February 2012. At the time of her resignation, Rockey was Vice-President of the Harrisburg campus and Vice-President of College and Community Development.
In October 2013, Rockey was charged with using a credit card issued by HACC, to make online purchases of Target gift cards which she then used to purchase non-work-related items for herself, her family, and her friends. Rockey then created bogus invoices, later submitted to the HACC Finance Office, to conceal the unauthorized purchases.
Rockey is charged with purchasing approximately $228,000 worth of gift cards with her HACC credit card.
The investigation was conducted by the FBI and the Dauphin County Criminal Investigations Division. The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz.
Former Technology Director for City of LenexaRead the Press Release
KANSAS CITY, KAN. - The former technology director for the City of Lenexa was sentenced to a year and a day in federal prison for wire fraud, U.S. Attorney Barry Grissom said. The defendant also was ordered to pay more than $103,000 in restitution.
Andrew L. Davey, 44, Overland Park, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred from 2010 to 2012 while he was the director of technology for the City of Lenexa. After he left the city to take another job, city officials discovered he had purchased numerous electronic devices, such as iPads, computers, digital cameras and televisions which he gave to friends, traded for other merchandise or services, or sold on eBay and kept the proceeds.
For instance, he gave iPads to members of his church, and traded an iPad to another city employee for wheels and tires. The other employee was not aware the iPad belonged to the city. He gave his mother a 50-inch television and iPad that were purchased with city funds. He told her the equipment was obsolete and the city no longer needed it.
Grissom commended the Lenexa Police Department, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Store Owner Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Charles Fitzgerald, 39, of Rochester, NY, pleaded guilty before U.S. District Court Judge Frank P. Geraci, Jr. to possession of a controlled substance with intent to distribute. The charge carries a maximum penalty of 30 years in prison, a fine of $2,000,000 or both.Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that the defendant admitted that on July 25, 2012, he possessed with intent to distribute various synthetic controlled substances and synthetic controlled substance analogues at both his residence in Rochester and at one of the stores that he owned, the 420 Emporium located in Batavia, NY. As part of the plea agreement, Fitzgerald will forfeit $771,109 in United States currency that was seized during the execution of a search warrant at his residence at 221 West Hills Estates on July 25, 2012.
Three employees of Fitzgerald’s, who worked at the 420 Emporium stores located in Batavia and Henrietta, NY, have also been convicted in this case and are awaiting sentencing.
“This case demonstrates how by working together, the community and law enforcement can improve the quality of life for all,” said U.S. Attorney Hochul. “In this case, a rash of emergency room visits due to overdoses of synthetic drugs was brought to our attention by concerned members of the community, including the media. Law enforcement immediately engaged, and within several months, was able to execute search warrants throughout Western New York and make arrests of those selling such illegal and highly dangerous substances. With this conviction, we are able to report that the entire investigation was a success.”
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson
Sentencing is scheduled for April 15, 2015, at 3:00 p.m. before Judge Geraci.
Former Plymouth Finance Director Arrested; Charged with Embezzling More Than $800kRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. BERTNAGEL, 41, of Thomaston, was arrested today on a federal criminal complaint charging him with embezzling more than $800,000 from the Town of Plymouth.
BERTNAGEL was arrested this morning at his residence. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $250,000 bond.
According to the criminal complaint, from July 2014 to October 2014, BERTNAGEL was employed as the Finance Director for the Town of Plymouth. For approximately six years prior to that time he was a part-time employee in the Town’s Finance Department. From approximately October 2011 through October 2014, it is alleged that BERTNAGEL issued 207 checks totaling approximately $808,030 from the Town’s payroll account to himself. BERTNAGEL used the embezzled funds to make mortgage payments, pay credit card bills, fund home improvement projects and purchase more than $100,000 in coins, stamps and other collectibles. He also converted more than $182,000 of the stolen funds by way of cashed checks, ATM withdrawals and money orders.
The complaint also alleges that BERTNAGEL did not file a tax return with the Internal Revenue Service for the 2011 tax year and, although he did file tax returns for the 2012 and 2013 tax years, he failed to report any of his embezzled income.
Since 2011, Plymouth has received approximately $450,000 in grant awards from the U.S. Department of Health and Human Services.
The criminal complaint charges BERTNAGEL with theft from a local government receiving federal funds, which carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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[email protected]Former Mayor Charged with Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead the Press Release
A former mayor of Dunkirk, New York, was indicted today for engaging in a scheme to defraud his mayoral campaign and supporters by stealing campaign contributions for his personal benefit, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Hochul Jr. of the Western District of New York.
Richard L. Frey, 83, of Dunkirk, New York, was charged today in a 13-count indictment with 12 counts of wire fraud and one count of making a false statement to the FBI.
According to the indictment, from January 2003 through June 2012, Frey allegedly solicited and received several campaign contributions from area businesses and businesspeople and then, instead of depositing the donations into his campaign accounts, either cashed the checks for his personal use or deposited the checks into his personal bank accounts. The indictment further alleges that Frey concealed the existence of these campaign contributions by not reporting or disclosing them on his campaign disclosure reports, as was required of local candidates for public office. When asked about the scheme, Frey allegedly provided false information to the FBI.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Buffalo Field Office and the U.S. Housing and Urban Development Office of Inspector General. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John E. Rogowski of the Western District of New York.
Former Houston Banker Heads to Prison for Bank FraudRead the Press Release
HOUSTON – Carlos Lavin Ibarra, 34, of Houston, has been sentenced to federal prison following his conviction on one count of bank fraud, announced United States Attorney Kenneth Magidson. Ibarra pleaded guilty July 9, 2014.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, stated that the idea that a banker takes money out of someone else's account without authority must be sanctioned and handed Ibarra a sentence of 33 months in federal prison to be immediately followed by five years of supervised release. Defendant was not ordered to pay a fine. He was further ordered to pay $779,000 in restitution.
Ibarra worked at JP Morgan Chase Bank in Houston. He admitted that while employed there, he purchased or caused to be purchased $779,000 in cashier’s checks on accounts owned by a person from Nigeria. This person was deceased at the time of the defendant’s actions and Chase was not advised of his death. The defendant admitted he acted fraudulently and without authority.
The cashier’s checks were all made payable to “Ben Leasing.” Ibarra admitted he caused another individual to obtain a certificate of operation under the assumed name of Ben Leasing from the County Clerk of Harris County and open a bank account in that name. However, that person refused to accept the cashier’s checks and Ibarra then re-deposited the checks at Chase. He further caused eight more cashier’s checks to be purchased in various amounts, payable to different individuals with whom Ibarra had a relationship. Three of these checks were subsequently exchanged for identical Chase cashier’s checks. All of the Chase cashier’s checks were deposited into different bank accounts in Houston.Ibarra 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 case was investigated by the Secret Service and is being prosecuted by Assistant U.S. AttorneyFormer Dunkirk Mayor Charged with Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead 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 a federal grand jury has returned a 13-count indictment charging former City of Dunkirk Mayor Richard L. Frey, 83, of Dunkirk, NY, with engaging in a scheme to defraud his mayoral campaign and his supporters by stealing campaign contributions for his personal benefit. Frey is charged with 12 counts of wire fraud and one count of making a false statement to the FBI. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John E. Rogowski and Department of Justice Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section, who are handling the case, state that according to the indictment, from at least January 2003 through June 2012, Frey solicited and received several large campaign contributions from a number of area businesses and businesspeople. Instead of depositing the donations into his campaign accounts, the defendant either cashed the checks for his personal use or deposited the checks into his personal bank accounts. The indictment further alleges that the defendant concealed the existence of these larger campaign contributions by not reporting or disclosing them on his campaign disclosure reports, as was required of local candidates for public office. It is further alleged that Frey provided false information to the FBI when asked about the scheme.
The indictment is the culmination of an investigation by Federal Bureau of Investigation and the U.S. Housing and Urban Development Office of Inspector General.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former 32 Year FBI Employee and His Wife Sentenced to Prison for Bank FraudRead the Press Release
SAN FRANCISCO – A former 32 year FBI employee and his wife were sentenced on January 14, 2015, to 90 days in prison plus six months location monitoring and 200 hours of community service for bank fraud, announced United States Attorney Melinda Haag.
Charles Espinel, 61, and Jeannette Espinel, 59, of both Daly City, (the Espinels) were both originally charged in a Criminal Information on June 3, 2014, with one count of Bank Fraud, in violation of 18 United States Code Section 1344. The Espinels both pleaded guilty to the information on July 24, 2014.
The Espinels both admitted in their separate plea agreements that, beginning in 2006 and continuing through 2010, the two of them defrauded First California Bank and Wells Fargo Bank in connection with mortgage loans they obtained to purchase a $750,000 rental property in Daly City, and a $600,000 rental property in San Bruno. The Espinels admitted that they purchased these rental properties by jointly submitting to banks in June 2006 and April 2007 fraudulent mortgage loan applications in which they knowingly overstated their incomes and falsely claimed that it was their intention to occupy the rental properties as their primary residence. The Espinels also admitted that they subsequently obtained favorable modifications to these loans through fraud, including submitting false Individual Income Tax Returns which they had altered. The Espinels both admitted in their plea agreements that the total loss from their bank fraud was over $83,000.
Charles Espinel in his plea agreement further admitted that from May 1979 until February 2012, he worked as a Support Services Technician in the San Francisco Division of the FBI. Espinel’s professional responsibilities as a FBI Support Services Technician included records and file management technical support, telecommunications and investigative automation support, office management support, and operations security support. As an FBI employee with Top Secret clearance as well as access to sensitive information, Espinel was required annually to file a security financial disclosure form (SFDF) disclosing certain financial information (including listing all assets and liabilities). Espinel knew that his FBI supervisors and the FBI Security Division/Internal Security Section would review the financial information on his SFDFs to assess whether he had personal financial problems that might threaten his continued suitability for a Top Secret security clearance. Espinel admitted that he knew that lying on his SFDFs about his bank accounts and owned real estate would be significant issues of concern for FBI management. Espinel admitted in his plea agreement that in 2007, 2008, 2009, and 2010, he knowingly submitted SFDFs in which he made several false statements and material omissions. Espinel admitted that he knowingly failed to disclose on those SFDFs his wife’s income, and failed to disclose the real estate properties he owned or the rental income he was receiving from those properties.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge. In addition to 90 days in prison, Judge Breyer also ordered both of the Espinels to serve a three year term of supervised release which will include six months location monitoring and 200 hours of community service, and also to pay $83,326.50 in restitution. Jeannette Espinel will begin serving her sentence on March 2, 2015. Charles Espinel will begin serving his sentence on September 8, 2015.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the United States Department of Justice Office of the Inspector General.
Florida Man Pleads Guilty to Role in Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 20, 2015, Lev M. Derbaremdiker, 30, of Delray Beach, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Derbaremdiker was a telemarketer at C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). Working out of an office building in West Palm Beach, Florida, PTS targeted owners of timeshares throughout the United States. In various court filings related to the PTS scam, the overall scam bilked some $14.5 million from over 7,000 consumers throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for May 11, 2015, at 1:30 p.m. Derbaremdiker will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Ex-CEO of McAllen-Based Trucking Company Convicted in $26 Million Fraud SchemeRead the Press Release
HOUSTON – Sergio Lagos, 45, has been convicted of conspiracy to commit wire fraud and six counts of wire fraud, announced U.S. Attorney Kenneth Magidson. Lagos was the former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry. Aurelio “Jim” Aleman and Oscar Barbosa, former chief operations officer and former controller for the company, respectively, previously pleaded guilty to conspiracy to commit wire fraud on Sept. 16, 2013.
According to records, Aleman and Lagos entered into a financing agreement with GE Capital Corporation (GECC) under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV justified advances on the line of credit by submitting “borrowing base certificates” to GECC.
Lagos admitted that from March 2008 through the end of January 2010, he joined in a scheme to defraud and swindle GECC, a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. At the plea hearing, Lagos admitted he schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos and his co-defendants misrepresented USADV’s true operating performance and financial results to include the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
Lagos signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise have been permitted. Lagos perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos also admitted to submitting false financial statements to auditors and GECC.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company.
The government alleges the estimated loss to GECC is more than $26 million. U.S. District Judge Kenneth M. Hoyt, who accepted the guilty plea today, will make a final determination of that loss at the time Lagos is sentenced. At that time, he also faces up 20 years in federal prison and a possible $250,000 fine. The hearing has been scheduled for April 13, 2015.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant U.S. Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
Estill Man Sentenced to Prison for Identity Theft Tax FraudRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Angel Masdeu, age 52, of Estill, SC was sentenced in federal court in Charleston, South Carolina, for aggravated identify theft, a violation of Title 18, United States Code, Section 1028A. United States District Judge Richard M. Gergel of Charleston sentenced Masdeu to 24 months imprisonment and one year of supervised release.
Evidence presented in this case established that Masdeu stole the identifying information of individuals, and using this stolen identifying information, he filed fraudulent tax returns that claimed false tax refunds. After a thorough investigation, the IRS determined that Masdeu’s identify theft caused more than $260,000 in loss to the United States Treasury due to fraudulent tax refunds.
“Investigating refund fraud and identity theft is a top priority of IRS Criminal Investigation,” said IRS-CI Special Agent in Charge Thomas J. Holloman III. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those considering similar conduct. Law enforcement and the US Attorney’s Office will vigorously pursue these crimes and will hold those accountable who would defraud the government.”
The case was investigated by agents of the IRS-Criminal Investigative Division. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.El Departameno de Justicia y la Ciudad de Albuquerque Conjutamente Selecionan a un Monitor Independiente Para Supervisar las Reformas PolicialesRead the Press Release
ALBUQUERQUE – El Departamento de Justicia anunció hoy que conjuntamente con la Ciudad de Albuquerque, ha presentado ante el Tribunal de Distrito de los Estados Unidos, el nombramiento del Dr. James R. Ginger, experto reconocido a nivel nacional en reforma policial y cambio administrativo, como monitor independiente del acuerdo de resolución logrado entre el Departamento y la Ciudad para reformar al Departamento de Policía de Albuquerque (APD, sus siglas en inglés). El Dr. Ginger y su equipo tendràn la responsabilidad de evaluar, de manera independiente, la implementación completa del acuerdo de resolución, así como de reportar sobre el estatus de su cumplimiento al tribunal, a las partes y a la comunidad; ayudar a las partes a resolver retos que se presenten en su cumplimiento y a dar orientación técnica a APD, según sea necesaria.
El Dr. Ginger ha supervisado exitosamente acuerdos similares, ejecutables ante el tribunal, que han tenido como fin aumentar la confianza comunitaria e implementar reformas policiales sostenibles. El Dr. Ginger posee experiencia de primera mano en asegurar reformas críticas en todo el país, y un récord comprobado de implementación en un tiempo óptimo. El Dr. Ginger fue nombrado monitor independiente del primer decreto por consentimiento logrado por el Departamento de Justicia en Pittsburgh, Pennsylvania, el cual tenía como meta hacer cumplir leyes de derechos civiles cuyo fin es asegurar principios policiales constitucionales y efectivos. Trabajó en estrecha colaboración con las Partes y la Agencia de Policía de Pittsburgh para implementar reformas completas, diseñadas para enfrentar el uso de fuerza excesivo, arrestos falsos, registros e incautaciones inapropiadas, fallas en el sistema disciplinario y supervisión inmediata inadecuada. También fue nombrado monitor del decreto por consentimiento que tuvo que ver con la Policía Estatal de Nueva Jersey y con los esfuerzos de la misma para erradicar pràcticas policiales discriminatorias. El Dr. Ginger ha sido líder en el desarrollo de técnicas de monitoreo y metodologías utilizadas para evaluar el cumplimiento de decretos federales de consentimiento. El Dr. Ginger ha trabajado con agencias de policía en Nueva York, Ohio, Texas, Florida, Georgia, Alabama, Indiana y otros. Actualmente es presidente de Public Management Resources, Inc. (Administración de Recursos Públicos (PMR, sus siglas en inglés) y es responsable de planeación estratégica, mercadeo, presupuesto y administración.Antes de formar PMR, el Dr. Ginger trabajó como Profesor Adjunto de Justicia Criminal, Director Ejecutivo del Center for Justice Policy (Centro de Políticas para la Justicia), Subdirector de Police Foundation (Fundación de Policía) y Director del Southern Police Institute (Instituto Sureño de Policía). Al Dr. Ginger se le acredita la planeación, el desarrollo e implementación de un proyecto a nivel nacional de ayuda técnica y entrenamiento para el Bureau of Justice Assistance (Oficina de Asistencia para la Justicia) del Departamento, y con haber desarrollado programas nacionales como parte del Southern Police Institute (Instituto Sureño de Policía).
El equipo de monitoreo encabezado por el Dr. Ginger incluye expertos quienes han demostrado conocimientos en evaluar reformas similares a las contenidas en el acuerdo de resolución de Albuquerque. Los miembros del equipo de monitoreo incluiràn entre otros a, G. Patrick Gallagher, Presidente del Grupo Gallagher-Westfall; Dan Giaquinto, especialista legal y socio de Kern, Augustine, Conroy & Schoppman, P.C.; Phil Coyne, Director de Coyne Enterprise Solutions LLC; Mary Kealoha, Vicepresidente del Grupo Gallagher-Westfall; Albert Preik, Ex Director de entrenamiento de la Oficina de Policía de Pittsburgh; Peter Sarna, experto reconocido nacionalmente como entrenador de policía en el uso de fuerza y Dave Torres, Ex Comandante de la academia de entrenamiento de la Policía Estatal de Nueva Jersey.
“Le damos las gracias a todos los individuos y firmas que sometieron cartas de interés para servir como monitores y por sus innumerables logros”, dijo Vanita Gupta, Procuradora General Interina de la División de Derechos Civiles. “La decisión de seleccionar al candidato mejor calificado de entre todos, no fue fàcil y le damos las gracias a la comunidad y a otros interesados por su aportación en este paso crítico en el proceso de implementación”.
“El éxito demostrado por el Dr. Ginger con departamentos de policía y sistemas de justicia criminal en los Estados Unidos, ayudarà a promover el cumplimiento de la estructura crítica y las reformas sistémicas que son necesarias para reestablecer la confianza del público, y lograr pràcticas policiales constitucionales y efectivas en Albuquerque” dijo Damon Martínez, Procurador Federal de los Estados Unidos por el Estado de Nuevo México. “Nos complace haber trabajado en colaboración con la Ciudad para seleccionar al Dr. Ginger, quien creemos està en una posición única para ayudar y reportar sobre los esfuerzos de reforma del Departamento de Policía de Albuquerque”.
Los documentos de la solicitud del Dr. Ginger se pueden encontrar aqui.
Copia de la demanda y del acuerdo final se pueden encontrar en http://www.justice.gov/usao/nm/APD.html y www.justice.gov/crt/about/spl.
Eagle Butte Man Indicted on Drug ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Michael Scott Hearon, age 46, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 14, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between June 22, 2013, and February 3, 2014, Hearon knowingly and intentionally combined, conspired, confederated and agreed with others to distribute and possess with intent to distribute methamphetamine, a Schedule II controlled substance. The Indictment also alleges that Hearon, on June 22, 2013, and October 18, 2013, knowingly and intentionally distributed and possessed with intent to distribute methamphetamine and marijuana.
The charges are merely accusations and Hearon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Bureau of Indian Affairs. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Hearon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Kenny Fiddler, age 34, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 15, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 23, 2014, Fiddler unlawfully assaulted a male victim with a knife with the intent to do bodily harm.
The charge is merely an accusation and Fiddler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Fiddler was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for February 24, 2015.
Deputy Assistant Attorney General Sung-Hee Suh Speaks at the PLI’s 14th Annual Institute on Securities Regulation in Europe: Implications for U.S. Law on EU PracticeRead the Press Release
Remarks As Prepared for Delivery
Thank you, Rob, for that kind introduction. I am honored to be invited to speak on this panel with esteemed colleagues from the SEC, FCA, SFO, and the private sector.
As brief background, I am a Deputy Assistant Attorney General in the Department of Justice’s Criminal Division. I oversee several sections, but most relevant to my remarks today is the Fraud Section, which has principal responsibility for the prosecution of complex securities and other white-collar matters for the Criminal Division.
I would like to speak briefly this morning about the Criminal Division’s white-collar criminal enforcement priorities now and in the coming year.
We are focused on fighting corruption, cyber crime, and financial fraud, all of which present unique dangers to American citizens, as well as individuals overseas.
We are prioritizing the fight against financial fraud of all stripes—particularly at publicly traded corporations and large financial institutions—and we will follow the evidence of fraud wherever it leads, be that within or outside U.S. borders.
The prosecution of individuals—including corporate executives—for criminal wrongdoing continues to be a high priority for the department. That is not to say that we will be looking to charge individuals to the exclusion of corporations.
However, corporations do not act criminally, but for the actions of individuals. And, the Criminal Division intends to prosecute those individuals, whether they are sitting on a sales desk or in a corporate suite.
It is within this framework that we are also seeking to reshape the conversation about corporate cooperation to some extent.
Corporations too often overlook a key consideration that the department has long expressed in our Principles of Federal Prosecution, which guide our prosecutorial decisions: That is a corporation’s willingness to cooperate in the investigation of its culpable executives.
Of course, corporations—like individuals—are not required to cooperate. A corporation may make a business or strategic decision not to cooperate. However, if a corporation does elect to cooperate with the department, it should be mindful of the fact that the department does not view voluntary disclosure as true cooperation, if the company avoids identifying the individuals who are criminally responsible for the corporate misconduct.
Even the identification of culpable individuals is not true cooperation, if the company intentionally fails to locate and provide facts and evidence at their disposal that implicate those individuals. The Criminal Division will be looking long and hard at corporations who purport to cooperate, but fail to provide timely and full information about the criminal misconduct of their executives.
In the past year, the Criminal Division has demonstrated its continued commitment to the prosecution of individual wrongdoers in the corporate context. I will highlight a few examples.
On the FCPA front, since 2009, we have convicted 50 individuals in FCPA and FCPA-related cases, and resolved criminal cases against 59 companies with penalties and forfeiture of almost $4 billion. Within the last two years alone, we have charged, resolved by plea, or unsealed cases against 26 individuals, and 14 corporations have resolved FCPA violations with combined penalties and forfeiture of more than $1.6 billion.
As just one example, the department unsealed charges against the former co-CEOs and general counsel of PetroTiger Ltd., a BVI oil and gas company with offices in New Jersey, for allegedly paying bribes to an official in Colombia in exchange for assistance in securing approval for an oil services contract worth $39 million.
The general counsel and one of the CEOs already pleaded guilty to bribery and fraud charges, and the other former CEO is headed for trial.
This case was brought to the attention of the department through voluntary disclosure by PetroTiger, which cooperated with the department’s investigation. Notably, no charges of any kind were filed against PetroTiger.
An example on the flip side is the Alstom case, an FCPA investigation stemming from a widespread scheme involving tens of millions of dollars in bribes spanning the globe, including Indonesia, Saudi Arabia, Egypt, and the Bahamas.
When the Criminal Division learned of the misconduct and launched an investigation, Alstom opted not to cooperate at the outset. What ensued was an extensive multi-tool investigation involving recordings, interviews, subpoenas, MLAT requests, the use of cooperating witnesses, and more.
As of today, four individual Alstom executives have been charged; three of them have pleaded guilty; Alstom’s consortium partner, Marubeni, was charged and pleaded guilty; and Alstom pleaded guilty and agreed to pay a record $772 million fine. And that only accounts for the charges in the United States.
As I have said, we want corporations to cooperate, and will provide appropriate incentives. But, we will not rely exclusively upon corporate cooperation to make our cases against the individual wrongdoers.
On the securities and commodities fraud front, protecting the integrity of our global financial markets continues to be a priority for the Criminal Division. Our investigations into the manipulation of the LIBOR and FX at global financial institutions have received substantial publicity.
So far, five banks have resolved the LIBOR investigation with the department, paying more than $1.2 billion to the department alone. And 11 individuals have been charged, two of whom have pleaded guilty. And again, that only accounts for the charges in the United States. We expect both the LIBOR and FX investigations to continue to develop, both against the financial institutions themselves, as well as culpable individual executives.
To do these complex, international investigations, we are increasingly coordinating with domestic and foreign regulators and law enforcement counterparts, some of whom are on this panel today.
In working with our foreign counterparts, we have developed growing sophistication and experience in a variety of areas, including analyzing foreign data privacy laws and corporations’ claims that overseas documents cannot be provided to investigators in the United States.
We are also building and relying upon on our relationships with our foreign counterparts to gather evidence, locate individuals overseas, conduct parallel investigations of similar conduct, and, when appropriate, coordinate the timing and scope of resolutions.
Yes, just as we are coordinating our investigations, we are likewise willing to coordinate our resolutions, including accounting for the corporate monetary penalties paid in other jurisdictions when appropriate.
This is all to say that you should expect to see these meaningful, multinational investigations and prosecutions of corporations and individuals to continue.
With that, I am looking forward to hearing the remarks of my fellow panelists and discussing these important issues with you in more detail.
Defendant Sentenced for Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was sentenced today to three years of probation and ordered to pay more than $750,000 in restitution for role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever prosecuted, U.S. Attorney Paul J. Fishman announced.
Luis Martinez, 49, of Matthews, N.C., previously pleaded guilty before U.S. District Judge Claire C. Cecchi, to an information charging him with conspiracy to defraud the United States and theft of government property. The conspiracy caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds and resulted in losses to the United States of more than $12 million.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud that results in over $2 billion in losses annually to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico;
- SIRF participants complete Individual Income Tax Return 1040 Forms using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 form are entitled to tax refunds – when in fact, the various tax withholdings indicated have not been paid and no refunds are due;
- SIRF perpetrators direct the U.S. Treasury Department to issue the refunds through checks to locations they control or can access, in various ways;
- SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value. The buyers then cash the checks at banks or check cashing businesses or deposit them into bank accounts.
Federal law enforcement agencies, recognizing that SIRF was a serious problem, created a multi-agency task force in New Jersey comprised of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations has revealed that starting as early as 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme. The scheme has caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with losses to the U.S. Treasury of more than approximately $12 million.
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fake 1040s, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted them, law enforcement officers learned just a handful of IP addresses created many of the fraudulent forms that led to the issuance of tax refund checks.
Martinez and the other members of the conspiracy then gained control of checks, sometimes bribing mail carriers to intercept checks and deliver them to other members of the conspiracy.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently-applied for refund checks before they were delivered to members of the conspiracy.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie Kelokates; the U.S. Secret Service, under the direction of Acting Special Agent In Charge Carl Agnelli; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation leading to today’s sentencing.
In addition to the three-year term of probation, Judge Cecchi ordered Martinez to pay $753,041 in restitution and fined him $10,000.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman, Mala Ahuja Harker, Lakshmi Srinavasan Herman, and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
15-023
Defense counsel: Barry Goldberg Esq., New York