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Friday 16 January 2015
Federal Authorities Arrest 65 Year-Old for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – United States Magistrate Judge Bruce McGiverin authorized a criminal complaint against Carlos Manuel Colón-Velàzquez, a 65-year old resident of Coamo for production of child pornography and attempted production of child pornography, following an investigation lead by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The affidavit alleges that on January 2, 2015, Homeland Security Investigations (HSI), San Juan, Child Exploitation Investigations Group (CEIG) received information from Puerto Rico Police Department (PRPD), Coamo District, regarding a 14-year-old minor male. According to PRPD, a concerned mother of a 14-year old male minor, referred hereinafter as John Doe, discovered messages between John Doe and a Facebook user “Charlie Colon” who was later identified as Carlos Manuel Colón-Velàzquez. In those messages the defendant requested and received sexually explicit images from John Doe. Colón-Velàzquez also sent the minor a video of himself masturbating.
“Unfortunately, sexual abuse of children has become all too common in Puerto Rico,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The USAO for the District of Puerto Rico is committed to taking full advantage of our investigative tools in order to protect our children from sexual predators.”
The case is being prosecuted by Assistant U.S. Attorney Elba Gorbea. If convicted, the defendant faces a mandatory minimum sentence of incarceration of fifteen years.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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.A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
# # #FDA Employee, Former New York City Corrections Officer and Former IRS Employee Charged in Multimillion Dollar Tax Refund ConspiracyRead the Press Release
Three New York residents were indicted in the Eastern District of New York for defrauding the U.S. government by filing false claims for millions in false tax refunds, the Justice Department and Internal Revenue Service (IRS) announced today.
Charged in a 20-count indictment are Rodney Chestnut, of Middle Island, New York, a retired New York City Department of Corrections officer; Clive Henry, a former IRS employee in the business of preparing tax returns and Nafeesah Hines, a former U.S. Food and Drug Administration (FDA) employee, both of Jamaica, New York. Chestnut and Henry were arrested on Jan. 15, and appeared in federal court in Brooklyn, New York.
The defendants are each charged with one count of conspiracy to defraud the United States, 11 counts of assisting preparation of false returns and four counts of filing false tax returns. Hines and Chestnut are each charged with one additional count of filing false tax returns. If convicted, the defendants each face a statutory maximum sentence of five years in prison for conspiracy and a statutory maximum sentence of three years in prison for each false return charged against them. All of the defendants are also subject to fines and mandatory restitution, if convicted.
According to the indictment, between 2008 and 2012, Hines, Chestnut and Henry recruited clients to a scheme using fake IRS Forms 1099-OID (Original Issue Discount) claiming fictitious tax withholdings and were attached to tax returns that falsely claimed refunds of taxes that were never paid to the IRS. Hines used an electronic system to transmit the false Forms 1099-OID to the IRS. The false refund claims listed in the indictment total more than $3.4 million.
According to the indictment, the defendants collected fees based on a percentage the false refunds that they claimed as part of the scheme. The indictment also charges the defendants with filing false income tax returns for themselves pursuant to the scheme.
In 2013, a federal court permanently barred Hines and Chestnut from promoting an alleged tax fraud scheme involving thousands of false tax returns and from preparing tax returns for anyone other than themselves.
The case was investigated by special agents of IRS-Criminal Investigation. Trial attorneys Mark Kotila, Jeffrey McLellan and Erin Pulice of the Justice Department’s Tax Division are prosecuting the case. An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Eureka Brothers Plead Guilty to Growing Marijuana in Shasta-Trinity National Forest and Destroying Public Lands and ResourcesRead the Press Release
SACRAMENTO, Calif. —Isidro Alcazar-Tapia, 25, and Arturo Alcazar-Tapia, 21, both of Eureka, pleaded guilty today to conspiracy to manufacture marijuana and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Isidro and Arturo Alcazar-Tapia conspired to grow more than 20,000 marijuana plants at two sites in the Shasta-Trinity National Forest in Trinity County. The marijuana was packaged for distribution at a house in Eureka. On August 4, 2014, law enforcement executed a search warrant at the defendants’ home in Eureka and found 33 pounds of processed marijuana divided into one pound packages and more than $6,000 in cash. Agents located and destroyed approximately 7,980 marijuana plants at a cultivation site at Big French Creek, and located and destroyed approximately 13,642 marijuana plants at a site at Hobo Gulch Road. The marijuana cultivation caused significant damage to the land and natural resources of the forest that provides habitat for several threatened and endangered animal species.
At the Big French Creek site, agents observed hundreds of holes dug in the dirt containing soluble fertilizer, bags of trash, empty fertilizer bags, propane tanks, and water lines diverting water from a stream into the marijuana garden. Analysts estimate that cleaning the Big French Creek site will cost the U.S. Forest Service more than $4,000. Agents observed similar destruction at the Hobo Gulch Road site. Analysts estimate that cleaning the Hobo Gulch Road site will cost the U.S. Forest Service approximately $13,000.
This case is the product of an investigation by the United States Forest Service, the Humboldt County Drug Task Force, North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Isidro and Arturo Alcazar-Tapia are scheduled to be sentenced by Judge Garland E. Burrell Jr. on April 3, 2015. They face a possible sentence of five to 40 years in prison and a $5 million fine for the conspiracy charge. The sentence for the manufacture of marijuana charge is up to 20 years in prison and a $1 million fine. The sentence for depredation of public lands and resources charge is up to 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Eighth Oxycodone and Heroin Distribution Ring Member Sentenced in Federal CourtRead the Press Release
BOISE – Christopher Deleongurro Snyder, 24, of Boise, Idaho, Wednesday became the latest member of a Treasure Valley oxycodone and heroin distribution ring to be sentenced to federal prison, U.S. Attorney Wendy J. Olson announced. U.S. District Court Judge Edward J. Lodge sentenced Snyder on January 14, 2015, to 87 months in prison followed by five years of supervised release for conspiracy to distribute oxycodone. Judge Lodge also ordered Snyder to complete 200 hours of community service and forfeit $1,000,000 in cash proceeds. Judge Lodge found that Snyder was a manager and supervisor of an extensive criminal organization. Snyder was the eighth defendant sentenced as a result of the dismantling of a large-scale trafficking ring which distributed heroin and tens of thousands of oxycodone pills throughout Boise between 2012 and March of 2014. He pleaded guilty to the charge on September 10, 2014.
Others who have been sentenced are:
- Tyler Goodwin, 28, of Shelton, Washington, was sentenced on November 17, 2014, to 10 months in prison followed by three years of supervised release for distributing oxycodone. He was also ordered to forfeit $3,000 in cash proceeds.
- Jordan Grainger, 24, of Meridian, Idaho, was sentenced on November 24, 2014, to 48 months in prison followed by three years of supervised release for conspiracy to distribute oxycodone and heroin. He was also ordered to forfeit $100,000 in cash proceeds.
- Kevin Daniels, 19, of Boise, Idaho, was sentenced on November 25, 2014, to three years of probation for distributing oxycodone. He was also ordered to forfeit $7,500 in cash proceeds.
- Ellen McDaniel, 44, of Boise, Idaho, was sentenced on November 25, 2014, to 30 months in prison followed by three years of supervised release, and 80 hours of community service for conspiracy to distribute oxycodone. She was also ordered to forfeit $20,000 in cash proceeds.
- Jeffery Manchester Jr., 28, of Renton, Washington, was sentenced on December 18, 2014, to 37 months in prison followed by three years of supervised release, and 100 hours of community service for conspiracy to distribute oxycodone and heroin. He was also ordered to forfeit $32,000 in cash proceeds.
- Jared Hicks, 22, of Caldwell, Idaho, was sentenced on January 13, 2015, to 18 months in prison followed by three years of supervise release, and 100 hours of community service for conspiracy to distribute oxycodone. He was also ordered to forfeit $40,000 in cash proceeds.
- Kekai Wachi, 20, of Boise, Idaho, was sentenced on January 13, 2015, to 21 months in prison followed by three years of supervised release, and 100 hours of community service for conspiracy to distribute oxycodone. She was also ordered to forfeit $60,000 in cash proceeds.
“Prescription drug abuse is a growing and significant community health problem,” said Olson.“Where individuals choose to unlawfully distribute prescription medications and other illegal drugs, we will work closely with all of our law enforcement partners to investigate, prosecute and convict those responsible.”
Of the remaining indicted co-conspirators, Jordan Baptista, 19, of Boise, Idaho, is set for sentencing on March 9, 2015, for conspiracy to distribute oxycodone and heroin. Travis Fraser, 19, of Boise, Idaho, is set for sentencing on April 6, 2015, for conspiracy to distribute oxycodone. James Acarregui, 29, of Boise, Idaho, is set for a change of plea on January 21, 2015, on one count of conspiracy to distribute oxycodone. Austin Serb, 20, of Boise, Idaho, is set for a change of plea on January 27, 2015, on one count of conspiracy to distribute oxycodone. Andrew Colwell, 23, of Boise, Idaho, is set for jury trial on March 10, 2015. Ajellon Dedeaux, 26, of Rancho Cordova, California, is set for jury trial on March 24, 2015.
The case was investigated by the Drug Enforcement Administration and the Boise Police Department as an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF partners include the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s (ICE); Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
The case was initiated and investigated by the Boise Police Department, and the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Dozens of Alleged Members of Sinaloa Cartel Charged; List Includes Kingpin “El Mayo,” His Sons and Other Top LeadersRead the Press Release
Distribution cells are dismantled in Chula Vista,
National City and OceansideCHARGING DOCUMENTS click HERE
SAN DIEGO – Sixty alleged members and associates of the Mexico-based Sinaloa Cartel - including the highest ranking leaders, lieutenants and operators of multiple distribution cells - are charged in 14 indictments unsealed today with trafficking huge quantities of methamphetamine, cocaine, heroin and marijuana to points around the United States.
The indictments mark the conclusion of the third phase of a three-year investigation that, in total, has resulted in charges against 117 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel.
This investigation has also offered one of the most comprehensive views to date of the inner workings of one of the world’s most prolific, violent and powerful drug cartels. Cartel members and associates were targeted for three years in a massive probe involving multiple countries, scores of law enforcement agencies around the United States, a number of federal districts and over 200 court-authorized wiretaps in this district alone.
The primary indictment, unsealed in federal court in San Diego today, targets the alleged leader of the cartel, Ismael Zambada-Garcia, known as “El Mayo,” as well as two of his four sons - Ismael Zambada-Sicairos, known as “Mayito Flaco,” and Ismael Zambada-Imperial, known as “Mayito Gordo.” Zambada-Imperial was arrested by Mexican authorities in November 2014.
Also part of that indictment is Ivan Archivaldo Guzman-Salazar, known as “Chapito,” whose father Joaquín “El Chapo” Guzmàn Loera was the alleged leader of the Sinaloa Cartel along with Mayo and considered the world’s most powerful drug lord until his arrest in Mexico in February 2014.
This case began in late 2011 as an investigation of what was at first believed to be a small-scale drug distribution cell in National City and Chula Vista. The alleged leader of that cell – Jose Luis Iglesias, aka Jose Bautista Samano-Molina – and a number of his associates were indicted in 2012. Iglesias remains a fugitive, but most of his associates have been sentenced.
But it soon became evident that the drugs were being supplied by the Sinaloa Cartel, and the case morphed into a massive multi-national, multi-state probe that has resulted in scores of arrests and seizures from San Diego, Los Angeles, Riverside, San Bernardino and Imperial counties to the big cities of San Francisco, Chicago, New York City and Detroit; the states of Nevada, Texas, South Carolina, Delaware, Pennsylvania, Minnesota, Kentucky, Georgia; and the countries of Mexico, Canada, Colombia, Great Britain, the Philippines, Guatemala and China.
Law enforcement in San Diego has worked hand-in-hand with agents in Chicago to target the upper level leadership of the Sinaloa Cartel. This partnership resulted in the indictment of these leaders in San Diego as well as the indictment of numerous high-level Sinaloa Cartel leaders in Chicago, including Chapo and his son Jesus Alfredo Guzman-Salazar.
On the local front, one of the indictments unsealed today charges alleged members of an Oceanside distribution cell linked to the Sinaloa Cartel which is believed responsible for supplying about one-third of the methamphetamine to the streets of San Diego’s North County.
According to court records, the alleged leader of the cell, Miguel Iram Quiroz-Perez, was indicted along with 13 associates who were responsible for distribution to customers that included documented members of the Deep Valley Bloods and the Deep Valley Crips street gangs.
As part of this investigation, U.S. authorities previously arrested and prosecuted another son of Mayo - Serafin Zambada-Ortiz - who pleaded guilty in the Southern District of California in September 2014 to drug trafficking charges. Zambada Ortiz, a U.S. citizen born in San Diego, pleaded guilty to conspiring to buy more than 100 kilograms of cocaine and more than 1,000 kilograms of marijuana in Sinaloa, then import it into the United States. Zambada Ortiz faces 10 years to life in prison when sentenced on May 22, 2015.
José Rodrigo Aréchiga-Gamboa, commonly referred to by his alias "El Chino Ántrax,” was arrested in the Netherlands and extradited to the United States by Dutch authorities in July 2014. Arechiga-Gamboa is believed to have worked for the Sinaloa Cartel as the leader of a violent enforcement arm of the Sinaloa Cartel called “Los Antrax” and a key lieutenant of Mayo.
Two of the indictments unsealed today also target Alfonso Arzate-Garcia, aka “Aquiles,” the alleged Tijuana Plaza boss for the Sinaloa cartel, and his brother, Rene Arzate-Garcia, aka “La Rana,” alleged to be an enforcer for the cartel in Tijuana who is believed responsible for a significant amount of violence in the Tijuana plaza. Both men are fugitives.
Two alleged high-ranking cartel leaders - Alfonso Limon-Sanchez and Rafael Felix-Nunez - were arrested in separate incidents by Mexican authorities in November 2014.
Limon-Sanchez is alleged to be one of Mayo’s primary cocaine sources of supply. Felix-Nunez is alleged to have been one of Chino Antrax’s chief lieutenants in Los Antrax.
“This extraordinary case is this district’s most significant, comprehensive and large-scale cartel prosecution since the dismantling of the Arellano-Felix drug trafficking organization,” said U.S. Attorney Laura Duffy. “We are going after the Sinaloa Cartel with the same passion, knowing that the drugs and violence peddled by the cartel are destroying lives and tearing the fabric of our communities.”
“The culmination of this investigation is significant not only to the citizens of San Diego, but to citizens of our entire country,” said DEA San Diego Special Agent in Charge William R. Sherman. “DEA has long known that the reach of the Sinaloa Cartel extends beyond the US/Mexico border to locations throughout the world. This investigation targeted the highest ranking members of this powerful cartel, taking them out of commission, seriously impacting their operational structure. DEA and its law enforcement partners will continue to target and investigate this violent and dangerous cartel until its world-wide operations are completely dismantled.”
“San Diego is at the forefront of narco-dollar money laundering, with couriers using bulk cash smuggling, structured bank deposits, and high-end luxury vehicles and airplanes to move their illicit drug proceeds,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “Seizing the dirty cash and assets of these illegal organizations will hit the criminals where it hurts the most--it will deprive them of their profits."
In all, with the conclusion of this third phase, the government has seized more than 652 kilograms of methamphetamine, 1,343 kilograms of cocaine, 12.2 tons of marijuana, 53 kilograms of heroin, 5,500 oxycodone pills and $14.1 million in narcotics proceeds.
According to the main indictment, the alleged leaders of the cartel imported large quantities of cocaine, methamphetamine and other drugs, as well as the chemicals to manufacture methamphetamine, into Mexico from Asia and Central and South American countries including Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, Honduras and Guatemala. The traffickers used various methods to move the drugs, including cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, trucks, automobiles, and private and commercial interstate and foreign carriers, the indictment said.
The indictment alleges that the large quantities of drugs were then smuggled across the international border to San Diego via automobiles, tractor trailers, trucks, fishing vessels and tunnels and stored at various stash houses, safe houses and warehouses in San Diego County. The cocaine, methamphetamine and marijuana were transported and distributed from there to locations throughout the U.S.
According to the indictment, trafficking proceeds were laundered through bulk cash smuggling; structured bank deposits; wire transfers; currency exchange transfers; alternative credit-based systems used to transfer money without the use of wires or other traditional means; goods-based systems in which items, including high end luxury vehicles and airplanes, were purchased in one location and transferred to another location; and other methods by shared networks of money couriers and money launderers associated with the Sinaloa Cartel.
According to the indictment, the government is seeking criminal forfeiture of a number of possessions, including a 1982 Cessna Turbo 210 aircraft, a Lamborghini Murceilago luxury vehicle, and other vehicles and property.
In order to protect their drug distribution activities and evade law enforcement, the traffickers took a number of steps. They obtained guns and other weapons and used intimidation, violence and threats of violence against members of law enforcement, rival drug traffickers and members of their own drug trafficking organization, the indictment said.
DEFENDANTS Case Number: 14CR0658-DMS Ismael Zambada-Garcia, aka Mayo Age: 64Culiacan, Mexico
Ismael Zambada-Imperial aka Mayito Gordo Age: 30Culiacan, Mexico
Ismael Zambada-Sicairos, aka Mayito Flaco Age: 32Culiacan, Mexico
Ivan Archivaldo Guzman-Salazar Age: 31Culiacan, Mexico
FULL LIST OF DEFENDANTS Click HERE
CHARGESContinuing Criminal Enterprise, in violation of Title 21 U.S.C. §§ 848(a) and (b)
Term of custody including a mandatory minimum 20 years and up to life imprisonment, $2 million fine and 5 years supervised release.Ismael Zambada-Garcia is charged as the principal administrator, organizer or leader of the enterprise or is one of several such principal administrators, organizers, or leaders; and the violation involved 300 times the quantity of a substance described in subsection 841(b)(1)(B) (100 grams of heroin, 500 grams of cocaine, 100 kilograms of marijuana or 50 grams of Methamphetamine mixture), which is mandatory life imprisonment.
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Distribute Controlled Substances, in violation of Title 21 U.S.C. §§ 841 and 846
Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.Conspiracy to Commit Money Laundering, in violation of Title 18 U.S.C. §§ 1956 (a)(2)(A) and (h)
Term of custody up to 20 years imprisonment, a fine of the greater of $500,000 or twice the value of the monetary instrument or funds involved and 5 years supervised release. INVESTIGATING AGENCIESDrug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
Internal Revenue Service
Federal Bureau of Investigation
Homeland Security Investigations
United States Attorney’s Office, Northern District of Illinois
Department of Treasury, Office of Foreign Asset Control
Oceanside Police Department
San Bernardino County Sheriff’s Department
National City Police Department
Chula Vista Police Department
San Diego Police Department
San Diego County District Attorney’s Office
San Diego Law Enforcement Coordination Center
Interpol*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Delaware County Defense Contractor Sentenced to 37 Months in Prison for Fraud and ObstructionRead the Press Release
PHILADELPHIA – Kenneth Narzikul, 60, of Media, PA, was sentenced today to 37 months in prison for committing major fraud against the United States, obstructing a federal audit, and making false claims to the government, in connection with defense contracts to manufacture components for military helicopters. U.S. District Court Judge L. Felipe Restrepo also ordered restitution in the amount of $1.2 million, a fine of $7,500, and three years of supervised release to follow the prison term.
The defendant was President and 85% owner of NP Precision, Inc. (NP), a machine tool business located in Folcroft, PA, which is now defunct. NP contracted with Department of Defense component agencies to produce critical hardware components used in military helicopters and other aircraft. At his guilty plea hearing on August 25, 2014, Narzikul admitted that he schemed to fraudulently divert and steal approximately $1.2 million in progress payments that the United States paid NP under two contracts to produce drive shaft couplings for a U.S. Army helicopter Model CH-47, commonly known as the Chinook helicopter. Narzikul further admitted that he made false claims to the government so that NP could continue to receive progress payments on those contracts, when he knew that NP had not earned the progress payments. In addition, Narzikul admitted that he tried to cover up his fraud by lying to government auditors and submitting false documents to them, and directing employees at NP to do the same. Narzikul admitted further that he used the diverted progress payments to pay outstanding obligations on other contracts and pay other personal and business expenses for himself and his family.
The case was investigated by the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigative Command (Army CID), the Defense Criminal Investigative Service (DCIS), and the United States Air Force Office of Special Inspection (Air Force OSI). It was prosecuted by Assistant United States Attorney Mary E. Crawley.
Defendant Sentenced for his Role in $25 Million Tax Fraud and Drug ConspiracyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin Feldis announced today that Samuel Peguero, aka “Niño”, a citizen of the Dominican Republic residing in Alaska, was sentenced to 13 months imprisonment, followed by one year of supervised release, for his role in a $25 million tax fraud and drug conspiracy. In addition to his prison sentence, Peguero was ordered to pay restitution of $19,090.92. Peguero pled guilty to conspiracy to six counts of aiding and abetting false claims of United States citizenship on October 10, 2014.
According to court documents, from 2008 through 2012, Peguero participated in an extensive criminal enterprise led by Joel Santana-Pierna. Joel Santana-Pierna together with his brother Abel Santana-Pierna conspired with others in an effort to import over two kilograms of cocaine into Alaska for distribution. In addition to their cocaine smuggling scheme, the organization conspired to use stolen Puerto Rican identities to file false income tax returns to obtain fraudulent income tax refunds.
Conspirators in the income tax fraud scheme obtained the stolen identities of more than 3,000 individuals, including people’s names and Social Security Numbers. Most of these stolen identities were from citizens of Puerto Rico. The conspirators also stole mail in and around the Anchorage area. The conspirators stored the stolen identities and addresses on laptop computers and paper lists. Using this stolen information, the brothers completed false returns and submitted them to the IRS. Altogether, the United States estimates that the total loss intended by members of the conspiracy exceeded $25 million.
Peguero acted as an interpreter for the conspirators. Peguero aided the Santana-Pierna brothers to submit false applications with the Alaska DMV to obtain fraudulent identification documents. He also helped the conspirators negotiate U.S. Treasury checks at local banks, knowing that the checks bore the forged endorsements of the conspirators.
“This conspiracy to defraud the United States government is the largest in Alaska state history,” according to Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “While Peguero may have played a small role in a big picture, this sentencing today is a stark warning to anyone that would endeavor to provide aid and assistance to criminals.”
“Tax fraud and identity theft are serious crimes that cheat us all. Anyone who commits the crimes, or helps others to commit the crimes, should expect to be arrested and sent to jail,” stated Acting U.S. Attorney Kevin Feldis.
Misael Polanco-Villa, Nicolas Jimenez-Sanchez, Isaac Amparo-Vazquez, Randin Paredes Henriquez, John Doe, a/k/a Japhet Soto Santiago, a/k/a Luis Angel, Wedys Ramirez-Javier, Fatima Aguilar Martinez, Melissa Duran-Muniz, and Hilda Josephine Hernandez McMullen were also indicted as conspirators in Joel Santana-Pierna’s scheme.
The case was jointly prosecuted by Assistant U.S. Attorneys Thomas C. Bradley, James Barkeley, and Stephanie C. Courter of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), the U.S. State Department’s Diplomatic Security Service, and the Drug Enforcement Administration (DEA). Additional assistance was provided by the Tax Division of the United States Department of Justice as well as the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of New York.Couple Pleads Guilty to Mortgage Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Timothy McCabe, 50, and Theresa Morales, 50, of Florida (formerly of Buffalo), pleaded guilty before U.S. District Court Judge Richard J. Arcara, to bank fraud. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendants executed a scheme to obtain mortgages, re-financing, and home equity credit lines, totaling $2,580,000, from various financial institutions. In furtherance of the scheme, McCabe and Morales put together loan applications, which contained materially false information as to defendant Morales’ employment and income, and as to the couple’s intent to reside at the properties as owner/occupants. The loan applications were then submitted to the financial institutions, either directly by the defendants, or through Nickel City Funding, a Western New York mortgage broker.
Relying on the representations in the loan applications, as well as false verifications provided by defendant McCabe, the financial institutions granted the loans, which totaled $2,580,000. The defendants made only minimal payments on the loans, causing the properties to go into foreclosure, and resulting in a loss to the financial institutions in excess of $1,000,000.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and Special Agents of the United States Secret Service , under the direction of Special Agent in Charge C. Todd Laster.
Sentencing is scheduled for April 17, 2015, at 12:30 p.m. before Judge Arcara.
Coos Bay Man Sentenced for StructuringRead the Press Release
EUGENE, Ore. – Roger Paul Villeneuve, 72, of Coos Bay, Oregon was sentenced on Wednesday, January 14, 2015, to thirteen months in prison after pleading guilty to structuring a currency transaction. Villeneuve was given 45 days to self-surrender.
Federal regulations require banks to report currency transactions over $10,000, and willfully structuring a transaction to avoid a currency transaction report is a federal offense punishable by up to five years in prison and a $250,000 fine.
For the past 40 years, Villeneuve has worked as a private consultant and solicited investments for various gold and nickel mining claims located in the United States and Canada. When Villeneuve entered his guilty plea last September, he admitted to Chief U. S. District Court Judge Ann Aiken that in October 2012 he had advised an acquaintance to withdraw $9,950 in the form of a cashier’s check from Northwest Community Credit Union and told the acquaintance to keep the amount under $10,000 to prevent a currency transaction report.
The offense occurred while Villeneuve was serving a probationary sentence from a previous structuring conviction in 2011. In the previous case, he received a sentence of five years of probation. This time, he received prison sentences of seven months for the new offense and six months for the related probation violation, with the sentences to run consecutively.
This case was investigated by the FBI, Internal Revenue Service Criminal Investigation and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.
Cooper Landing Man Living in Illegal Cabin on Forest Service Land Sentenced to 12 Months in Jail for being a Felon in Possession of FirearmsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin Feldis announced today that a Cooper Landing man was sentenced in federal court in Anchorage for being a felon in possession of firearms.
John J. Soper, 57, of Cooper Landing, was sentenced today by United States District Court Judge Timothy M. Burgess, to 12 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, Alaska State Troopers were investigating a series of burglaries and thefts in the Cooper Landing area when they received information that the suspect was an individual living in an illegal cabin built on U.S. Forest Service land outside of Cooper Landing. Following up on the information, a trooper and a Forest Service Ranger found Soper, a convicted felon, living in a cabin he had built illegally on Forest Service land. They also found that he had four firearms in his possession, which he is prohibited from possessing as a felon.
U.S. Attorney Karen L. Loeffler commends the U.S. Forest Service Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alaska State Troopers for the investigation of this case.
Convicted felon pleads guilty to unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Zachary M. Foster, 22, of Triadelphia, West Virginia, was convicted in federal court today for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced today.Foster was convicted in 2011 of the felony offense of “Attempted Burglary” in the Circuit Court of Ohio County, West Virginia. As a result of that conviction, Foster was prohibited from possessing a firearm. In August 2014, officers from the Wheeling Police Department responded to reports of a gunshot fired and discovered Foster in possession of a .38 caliber revolver and a .22 caliber revolver.
Foster pled guilty today to one count of “Prohibited Person in Possession of a Firearm.” He faces up to 10 years in prison and fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation.
U.S. Magistrate Judge James E. Seibert presided.
Connecticut Man Sentenced to over 22 Years for Oxycodone ConspiracyRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced today that
Barry Diaz, 32, of Stamford, Connecticut, was sentenced yesterday in U.S. District Court by
Judge John A. Woodcock, to 22½ years in prison to be followed by 6 years of supervised release
for conspiracy to distribute oxycodone and unlawful use of a telephone. Diaz pleaded guilty to
the charges on December 20, 2013.According to Court documents, Diaz and others acquired oxycodone pills outside of
Maine. Some of these pills were obtained from people in Connecticut who diverted lawfully
issued oxycodone prescriptions. Others were obtained in bulk from California and elsewhere.
The pills were transported to Maine by Diaz or other conspirators working with him and were
given to street level dealers for distribution in Kennebec County and elsewhere. During the
investigation, law enforcement officers seized more than 600 30-mg oxycodone pills from
members of the conspiracy.
According to the evidence presented at the trial of Diaz’s co-defendant, Mark Razo, Diaz
and Razo operated the interstate drug conspiracy while Razo was serving a drug sentence in a
California state prison. Razo used contraband cellular telephones from inside the prison to
arrange transactions, recruit couriers and cause the transport of drugs across the United
States. Diaz was Razo’s point person for distribution of drugs across the country. A four pound
methamphetamine shipment that was seized in Iowa was among the drug shipments orchestrated
by Diaz and Razo.This case was investigated by the U.S. Drug Enforcement Administration, with assistance
from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the
Kennebec County Sheriff’s Office, the Southeast Iowa Drug Task Force, the Wapello County
(Iowa) Sheriff’s Office, investigators from the California Department of Corrections and
Rehabilitation, the Stamford (Connecticut) Police Department, the Augusta (Maine) Police
Department, and the Maine Drug Enforcement Agency. The investigation was part of the
ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership
between federal, state and local law enforcement agencies. The principal mission of the
OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking,
weapons trafficking and money laundering organizations, and those primarily responsible for the
nation’s illegal drug supply.Commonwealth of Pennsylvania to Pay $48.8 Million to Resolve Federal Government's Claims that it Provided Benefits to Ineligible AliensRead the Press Release
The commonwealth of Pennsylvania will pay $48.8 million to resolve the federal government’s claims that it provided benefits to ineligible aliens in violation of federal law, the Justice Department announced today. The benefits at issue were provided under three programs: Medicaid, Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps.
“The Department of Justice will continue to ensure that everyone, including the states, follows the law, but also recognizes the importance of these programs administered by the state that are essential for lower income individuals,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This settlement demonstrates our commitment to protect taxpayer funds and ensure they are used for their intended purposes.”
Under the Personal Responsibility Work Opportunity Act, enacted in 1996, only documented aliens who meet certain low-income requirements and who have been in the country for more than five years may receive non-emergency Medicaid, TANF or SNAP benefits. The law also requires states to verify recipients’ eligibility before providing these means-tested benefits. The United States alleged that, between 2004 and 2010, the commonwealth of Pennsylvania provided Medicaid, TANF and SNAP benefits to ineligible aliens in violation of these restrictions.
“The staff of the civil division in our office has worked closely and diligently with our sister federal agencies, the Pennsylvania Department of Human Services and the Governor’s office to make needed corrections to the operation of programs that are vital to low income families,” said U.S. Attorney Peter J. Smith for the Middle District of Pennsylvania. “At the same time, after lengthy negotiations, a fair and reasonable settlement has been achieved in the best interest of Pennsylvania tax payers.”
“Our agency will continue to work hard to ensure taxpayer-funded benefits are provided only to those eligible to receive them,” said Special Agent in Charge Nick DiGiulio for the Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Philadelphia Regional Office.
“We are pleased that this issue has been resolved,” said Administrator Audrey Rowe of the U.S. Department of Agriculture (USDA)’s Food and Nutrition Service. “We will continue to work with Pennsylvania to ensure that the SNAP program is administered appropriately to benefit only those who are eligible.”
Acting Assistant Attorney General Branda thanked HHS-OIG, USDA’s Office of Inspector General and Food and Nutrition Service, the U.S. Attorney’s Office for the Middle District of Pennsylvania and the Civil Division’s Commercial Litigation Branch, for the collaboration that resulted in the settlement.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Commonwealth of Pennsylvania to Pay $48.8 Million to Resolve Federal Government's Claims That It Provided Benefits to Ineligible AliensRead the Press Release
WASHINGTON – The commonwealth of Pennsylvania will pay $48.8 million to resolve the federal government’s claims that it provided benefits to ineligible aliens in violation of federal law, the Justice Department announced today. The benefits at issue were provided under three programs: Medicaid, Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps.
“The Department of Justice will continue to ensure that everyone, including the states, follows the law, but also recognizes the importance of these programs administered by the state that are essential for lower income individuals,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This settlement demonstrates our commitment to protect taxpayer funds and ensure they are used for their intended purposes.”
Under the Personal Responsibility Work Opportunity Act, enacted in 1996, only documented aliens who meet certain low-income requirements and who have been in the country for more than five years may receive non-emergency Medicaid, TANF or SNAP benefits. The law also requires states to verify recipients’ eligibility before providing these means-tested benefits. The United States alleged that, between 2004 and 2010, the commonwealth of Pennsylvania provided Medicaid, TANF and SNAP benefits to ineligible aliens in violation of these restrictions.
“The staff of the civil division in our office has worked closely and diligently with our sister federal agencies, the Pennsylvania Department of Human Services and the Governor’s office to make needed corrections to the operation of programs that are vital to low income families,” said U.S. Attorney Peter J. Smith for the Middle District of Pennsylvania. “At the same time, after lengthy negotiations, a fair and reasonable settlement has been achieved in the best interest of Pennsylvania tax payers.”
“Our agency will continue to work hard to ensure taxpayer-funded benefits are provided only to those eligible to receive them,” said Special Agent in Charge Nick DiGiulio for the Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Philadelphia Regional Office.
We are pleased that this issue has been resolved,” said Administrator Audrey Rowe of the U.S. Department of Agriculture (USDA)’s Food and Nutrition Service. “We will continue to work with Pennsylvania to ensure that the SNAP program is administered appropriately to benefit only those who are eligible.”Acting Assistant Attorney General Branda thanked HHS-OIG, USDA’s Office of Inspector General and Food and Nutrition Service, the U.S. Attorney’s Office for the Middle District of Pennsylvania and the Civil Division’s Commercial Litigation Branch, for the collaboration that resulted in the settlement.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Clarkston Man Sentenced to Ten Years in Federal Prison for Possession of Child Pornography ImagesRead the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that George Edward Cupp, age 51, of Clarkson, Washington, was sentenced after having previously pleaded guilty on October 7, 2014 to Possession of Child Pornography Images. United States District Court Judge Stanley Allen Bastian sentenced Cupp to a ten year term of imprisonment and a life term of court supervision after he is released from Federal prison. In addition, Cupp will be required to register as a sex offender.
According to court records, in December of 2013, the National Center for Missing and Exploited Children generated a CyberTipline report indicating that an individual, using a screen/user name of “georgecupp2013” had uploaded images of what appeared to be child pornography to the website Photobucket. Further investigation by the Asotin County Sherriff’s Office and Department of Homeland Security resulted in the execution of a search warrant for Cupp’s desktop computer and cellular phone. A forensic examination of Cupp’s digital devices discovered over 4,000 sexually explicit images, with children ranging from approximately six months of age to 16 years of age.
Michael C. Ormsby said, “I commend the Department of Homeland Security and Asotin County Sherriff’s Office for their outstanding investigation in this case. Prosecuting offenders who are distributing child pornography is a priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Department of Homeland Security and Asotin County Sherriff’s Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.CR-14-0089-SAB-1
Canada Extradites Drug Trafficking Defendant to Colorado for ProsecutionRead the Press Release
DENVER – Hector Armondo Chavez, age 28, who was until today in Canada, was extradited from Canada to Denver, Colorado so he can face drug trafficking charges, U.S. Attorney John Walsh and Drug Enforcement Administration (DEA) Denver Division Special Agent in Charge Barbra Roach announced. Chavez was indicted, along with six others, in 2010 for the importation of cocaine from Mexico. The cocaine was brought to Colorado, where it was then later sent to Canada. The defendant is scheduled to make his initial appearance this afternoon at 2:30 p.m. before U.S. Magistrate Judge Craig B. Shaffer, located on the 4th Floor of the Arraj Federal Courthouse, 901 19th Street.
According to the indictment, Chavez, along with others, conspired to import into the United States from Mexico, and then export from the United States into Canada, cocaine, a Schedule II Controlled Substance. The defendant also faces two counts of using a telephone to facilitate the commission of a drug trafficking felony. If convicted of conspiracy, Chavez faces not less than 10 years, and up to life in federal prison, as well as up to a $4,000,000 fine. If convicted of using a telephone for drug trafficking, Chavez faces not more than 4 years imprisonment, and up to a $250,000 fine, per count, for each of the two counts.
The investigation dates back to when a co-defendant, Calvin Wayne Skidmore, was arrested in 2010 at the Del Bonita Port of Entry by U.S. Customs and Border Protection officers. A search of his vehicle yielded 46 packages of cocaine, equating to 16.5 kilograms, concealed in hidden compartments.
In addition to Chavez, two others named in the indictment remain fugitives. Defendant Javier Batista Cervantes is a Mexican National living in Canada and is pending extradition. Defendant Hernandez-Renteria is deceased. Dionisio Salgado, a U.S. citizen, pled guilty in a related case in federal court in Colorado and was sentenced to serve 10 years in prison. Canadian citizen Calvin Wayne Skidmore pled guilty in a related case in the District of Montana and was also sentenced to 10 years in prison.
“When you face federal drug trafficking charges, you can run to another country, but you can’t hide there forever,” said U.S. Attorney John Walsh. “U.S. law enforcement, working with our international partners, can locate a defendant, as was the case with Defendant Chavez, and file extradition papers, which ultimately results in the person returning to the U.S. to resolve the indictment.”
“The extradition of Hector Armondo Chavez to the United States is an example of a commitment to international cooperation,” said DEA Denver Special Agent in Charge Barbra Roach. “The Drug Enforcement Administration thanks the Alberta Law Enforcement Response Teams (ALERT), Lethbridge Regional Police Service and the Royal Canadian Mounted Police for their assistance in this extradition.”
This case was investigated by the DEA. The Lethbridge Regional Police Service, a part of the Alberta Law Enforcement Response Teams in Canada as well as the Royal Canadian Mounted Police assisted U.S. government authorities. The U.S. Marshals Service assisted in the transportation of Chavez from Canada to Colorado. The Department of Justice’s Office of International Affairs provided assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Michele Korver of the U.S. Attorney’s Office, District of Colorado.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
California Man Sentenced for Insurance Fraud ScamRead the Press Release
RICHMOND, Va. – Joseph Giovanni Santiago, 50, of Los Angeles, California, was sentenced today to 78 months in prison, followed by 3 years of supervised release for engaging in a life insurance scheme involving nearly 1,000 individuals across the country. Santiago was also ordered to pay $1,313,749.07 in restitution to two separate insurance companies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
Santiago pleaded guilty on October 14, 2014 to conspiracy to commit mail fraud. According to court documents, he was the founder of an entity known as Premier Debt Solutions (or “PDS”), which purported to provide faith-based debt restructuring and other services to churches across the country. Santiago also was the founder of 4Him Ministries, which purported to be a non-profit, religious organization.
In pleading guilty, Santiago admitted that he and his conspirators misled insurance companies by falsely representing that PDS employed hundreds of independent contractors for whom PDS intended to obtain employer-funded whole life insurance policies. In fact, none of these individuals were employed by PDS. Rather, Santiago and his conspirators recruited individuals to make false applications for life insurance, posing as PDS employees, so that Santiago and his conspirators could collect the advanced commissions paid for the sale of the policies. In addition, Santiago and his conspirators convinced the policy holders to assign their rights in those policies to 4Him Ministries. The initial plan was to use the advanced commissions from the initial sale of the life insurance policies to make premium payments until they could monetize the policies by selling the policies or securitized interests in the policies to investors.
As a result of this conspiracy, insurance companies ING and Unum Group issued over 800 life insurance policies, each with a face value of $100,000, to supposed PDS employees. The insurance companies mailed these policies to individuals across the country, including individuals within the Eastern District of Virginia. ING and Unum Group also paid these conspirators more than $1.4 million in advance commissions for the sale of these life insurance policies. Ultimately, both insurance companies cancelled all the insurance policies issued to PDS members.
Santiago’s co-conspirator Mark Wayne George pleaded guilty on August 24, 2014
to conspiracy to commit mail fraud, and is scheduled to be sentenced before Judge Hudson on January 29, 2015.This case was investigated by United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant U.S. Attorney Katherine Lee Martin is 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. 3:14cr90.California Man Convicted of Running Multi-Million Dollar Fraud Scheme in KentuckyRead the Press Release
FRANKFORT, KY - Today, a federal jury convicted a California man of running a bogus oil production enterprise in Kentucky that defrauded investors, nationwide, out of millions of dollars.
The jury convicted John G. Westine, Jr., 69, for 26 counts of mail fraud and one count each of conspiracy to launder funds and securities fraud. Westine was acquitted on one mail fraud count. The jury reached its verdict after six and a half hours of deliberations, following nine days of trial.
According to testimony at trial, Westine and others lured money from investors by making false statements regarding an oil production business. The false statements led investors to believe that oil was being produced, when in fact it was not, and led them to believe that the oil companies had been in the oil production business for decades, when in reality they had only been in existence for less than a year.
Additionally, evidence at trial established that Westine had concealed from investors that he had served more than 22 years in federal prison, for a 1992 conviction for a similar fraud scheme in Ohio, and that he was on parole.
According to voluminous testimony and documents presented by prosecutors, Westine and others used aliases and fictitious company names to conceal their true identity from investors and authorities.
In total, Westine and others defrauded approximately 200 investors out of more than $3,000,000.
Westine’s co-defendant and half-brother, Michael Hicks, pleaded guilty to similar charges and testified for the government at trial.
The investigation started when investors submitted complaints to the Kentucky Department of Financial Institutions, Division of Securities.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Dugan Wong, Inspector in Charge of the U. S. Postal Inspection Service; and Charles Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly announced the verdict.
The investigation was conducted by the U.S. Postal Inspection Service and the Kentucky Department of Financial Institutions,Division of Securities.
Assistant U.S. Attorneys Ken Taylor and Neeraj Gupta are prosecuting this case on behalf of the federal government.
Westine faces a maximum prison sentence of 20 years on each mail fraud count and 20 years for both the securities fraud and money laundering offenses. Under federal law, Westine will have to serve at least 85 percent of his prison sentence. The Court will impose a sentence after carefully considering the U.S Sentencing Guidelines and the federal statutes.
California Firm Agrees to Stop Production of Adulterated and Misbranded Dietary Supplements and Unapproved New DrugsRead the Press Release
As a result of a lawsuit filed by the United States, a federal court in California has issued an injunction shutting down Health One Pharmaceuticals Inc., a City of Industry, California, based manufacturer of dietary supplements and unapproved new drugs. The firm and its president, Richard S. Yeh, agreed to shut down and resolve the lawsuit as part of a consent decree. The Justice Department filed the injunction action in the Central District of California at the request of the U.S. Food and Drug Administration (FDA).
The consent decree forbids the company from operating unless and until it takes a number of steps to improve its compliance with federal law. The defendants have represented to the court that they have already ceased operations.
“Protecting the health of American consumers is some of the most important work we do,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We have an unwavering commitment to ensuring that the dietary supplements in this country are safe and have been manufactured in accordance with federal law.”
Based on the results of FDA inspections, the complaint alleged that the defendants violated the Federal Food, Drug and Cosmetic Act by delivering, or causing to be delivered for introduction into interstate commerce, dietary supplements that have been prepared, packed or held under conditions that do not meet current good manufacturing practice regulations. Among other things, the complaint alleged that the defendants failed to meet current good manufacturing practices for dietary supplements by failing to conduct at least one appropriate test or examination to verify the identity of every dietary ingredient prior to using the ingredient. Furthermore, the complaint alleged that the defendants’ dietary supplements were misbranded because their labels do not include all the information required by federal law.
The complaint further alleged that some of the defendants’ products were unapproved new drugs—and therefore cannot be lawfully distributed under federal law—because they were articles intended for use in the cure, mitigation, treatment or prevention of disease and, among other things, are not generally recognized as safe and effective for their intended uses and were not the subjects of new drug applications approved by FDA. Furthermore, the complaint alleged that these drugs were misbranded because it is impossible to provide “adequate directions for use” for an unapproved new drug.
The FDA referred this matter to the Department of Justice. The Civil Division’s Consumer Protection Branch, together with the U.S. Attorney’s Office for the Central District of California, filed this case on behalf of the United States.
The claims alleged in the complaint are allegations only and there has been no determination of liability.
Box Elder Man Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Larceny.
Juan Crawford, age 24, was indicted on October 21, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 9, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to one year in custody and/or a $100,000 fine, one year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Crawford stealing wallets, cash, personal items, and debit and credit cards from unlocked lockers at the men’s gym on Ellsworth Air Force Base on December 9, 2013.
The charge is merely an accusation and Crawford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Air Force Security Police. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Crawford was released on bond pending trial. A trial date has not been set.
Attorney General Prohibits Federal Agency Adoptions of Assets Seized by State and Local Law Enforcement Agencies Except Where Needed to Protect Public SafetyRead the Press Release
Today, Attorney General Eric Holder issued an order setting forth a new policy prohibiting federal agency forfeiture, or “adoptions,” of assets seized by state and local law enforcement agencies, with a limited public safety exception. A federally adopted forfeiture – or “adoption” for short – occurs when a state or local law enforcement agency seizes property pursuant to state law and requests that a federal agency take the seized asset and forfeit it under federal law. The U.S. Department of the Treasury, which has its own forfeiture program, is issuing a policy consistent with the Attorney General’s order and that policy will apply to all participants of the Treasury forfeiture program, administered by the Treasury Executive Office for Asset Forfeiture.
“With this new policy, effective immediately, the Justice Department is taking an important step to prohibit federal agency adoptions of state and local seizures, except for public safety reasons,” said Attorney General Holder. “This is the first step in a comprehensive review that we have launched of the federal asset forfeiture program. Asset forfeiture remains a critical law enforcement tool when used appropriately – providing unique means to go after criminal and even terrorist organizations. This new policy will ensure that these authorities can continue to be used to take the profit out of crime and return assets to victims, while safeguarding civil liberties.”
The Attorney General ordered that federal agency adoption of property seized by state or local law enforcement under state law be prohibited, except for property that directly relates to public safety concerns, including firearms, ammunition, explosives and property associated with child pornography. The prohibition on federal agency adoption includes, but is not limited to, seizures by state or local law enforcement of vehicles, valuables, cash and other monetary instruments. This order is effective immediately and applies to all Justice Department attorneys and components, and all participants in the Department of Justice Asset Forfeiture Program. The new policy will ensure that adoption is employed only to protect public safety, and does not extend to seizures where state and local jurisdictions can more appropriately act under their own laws.
Both the Justice and Treasury Departments regularly review their asset forfeiture programs to ensure that federal asset forfeiture authorities are used carefully and effectively to take the profit out of crime, combat organized crime groups, and enable victim compensation, while ensuring that laws are followed, civil liberties are protected, and our constitutional system is strengthened. Since 2000, the Justice Department has returned approximately $4 billion in forfeited funds to victims of federal crime. Both departments will be part of the Law Enforcement Equipment Working Group, which will provide recommendations to the President regarding actions that can be taken to improve programs, like asset forfeiture, that help local law enforcement obtain equipment.
The Justice Department’s policy permitting federal agencies to adopt seizures dates from the inception of the Asset Forfeiture Program in the 1980s. The Treasury Department’s adoption policy has been part of its Asset Forfeiture Program since its inception in 1993. At the time that these policies were implemented, few states had forfeiture statutes analogous to the federal asset forfeiture laws. Consequently, when state and local law enforcement agencies seized criminal proceeds and property used to commit crimes, they often lacked the legal authority to forfeit the seized items. Turning seized assets over to federal law enforcement agencies for adoption was a way to keep those assets from being returned to criminals. Today, however, every state has either criminal or civil forfeiture laws, making the federal adoption process less necessary. Indeed, adoptions currently constitute a very small slice of the federal asset forfeiture program. Over the last six years, adoptions accounted for roughly three percent of the value of forfeitures in the Department of Justice Asset Forfeiture Program.
The new policy applies only to adoptions, not to seizures resulting from joint operations involving both federal and state authorities, or to seizures pursuant to warrants issued by federal courts. The policy does not limit the ability of state and local agencies to pursue the forfeiture of assets pursuant to their respective state laws. Law enforcement agencies working on joint task forces are required to follow the 2015 Guidance for Federal Law Enforcement Agencies Regarding the Use of Race, Ethnicity, Gender, National Origin, Religion, Sexual Orientation or Gender Identity.
Attorney General Holder Statement on Supreme Court Decision to Hear Same-Sex Marriage CasesRead the Press Release
Attorney General Eric Holder released the following statement after the U.S. Supreme Court agreed to hear four cases on same-sex marriage equality:
“After the Justice Department's decision not to defend the constitutionality of Section 3 of the Defense of Marriage Act, the Supreme Court sent a powerful message that Americans in same-sex marriages are entitled to equal protection and equal treatment under the law. This landmark decision marked a historic step toward equality for all American families.
“The Supreme Court has announced that it will soon hear several cases raising core questions concerning the constitutionality of same-sex marriages. As these cases proceed, the Department of Justice will remain committed to ensuring that the benefits of marriage are available as broadly as possible. And we will keep striving to secure equal treatment for all members of society—regardless of sexual orientation.
“As such, we expect to file a ‘friend of the court’ brief in these cases that will urge the Supreme Court to make marriage equality a reality for all Americans. It is time for our nation to take another critical step forward to ensure the fundamental equality of all Americans—no matter who they are, where they come from, or whom they love.”
Arlington Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
Produced and possessed images of minors met on the Internet
ALEXANDRIA, Va. – Patrick Joseph Friedel, 29, of Arlington, Virginia, pleaded guilty today to production and possession of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Edwin C. Roessler, Jr., Chief of Police, Fairfax County Police Department made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
Friedel was originally indicted by a federal grand jury on November 20, 2014. Friedel faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when he is sentenced on April 24, 2015. The maximum statutory sentence is prescribed by Congress. It is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Friedel acknowledged meeting five underage teenagers over the Internet and exchanging sexually explicit images with them. In this pattern of activity, Friedel used persuasion, including sending depictions of minors engaged in sexually explicit conduct, and coercion, including threats to post images online and tell parents. On three occasions, Friedel picked up one of the minors and engaged in sexual activity with her. He took pictures and videos of this activity, which according to the plea agreement, included sadistic or masochistic conduct or other depictions of violence.
This case was investigated by Homeland Security Investigations and the Fairfax County Police Department with the assistance of the Northern Virginia/DC Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Matthew Gardner and Tracy Doherty-McCormick 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. 1:14-cr-383.
Alleged Fraud Scheme Aimed to Secure Bailout FundsRead the Press Release
PHILADELPHIA - An indictment was unsealedFriday charging Brian Hartline, 50, of Collegeville, Pennsylvania, and Barry Bekkedam, 47, of Hobe Sound, Florida, in a fraud conspiracy involving NOVA Bank,where Hartline served as President and Chief Executive Officer and Bekkedam had served as Board Chairman. The alleged scheme involved the Troubled Asset Relief Program (TARP) and was devised in an attempt to defraud the government of more than $13 million. The defendants are each charged with conspiracy to defraud the United States, TARP fraud, two counts of false statements to the federal government, and bank fraud. Bekkedam is additionally charged with two counts of wire fraud.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, Special Inspector General for the Troubled Asset Relief Program Christy Romero, and Pennsylvania Department of Banking Secretary of Banking and Securities Glenn E. Moyer.
Bekkedam and Hartline, with others, formed NOVA Bank in 2002. Bekkedam also owned and operated a financial advisory company, Ballamor Capital Management, and allegedly advised Ballamor clients to invest in NOVA. But in 2008, NOVA faced risk of failure because of bad loans and investments. Its investors were at risk of losing their investments. In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million in taxpayer bank bailout funds through the U.S. Department of the Treasury TARP. In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raise $15 million in additional, private capital. The bank was ultimately unable to raiseprivate capital, did not receive TARP funds, and in October 2012, the bank failed and was closed by state and federal banking regulators.
According to the indictment, Bekkedam and Hartline devised a scheme in which NOVA would loan money to G.L., a Florida businessman, for G.L. to transfer to NOVA’s parent company so it would appear as though the bank had new capital from an outside investor. On June 30, 2009, NOVA wired $5 million to G.L.’s bank account in Florida and, approximately two hours later, G.L. wired $5 million to an account used for investments in NOVA Financial Holdings, Inc. It is further alleged that in October and December 2009, Bekkedam and Hartline convinced two others to make similar “investments” using loans from NOVA, in efforts to make NOVA appear more financially sound than it actually was. The defendants also allegedlytold and directed employees to tell the U.S. Department of Treasury that NOVA had raised new capital when it had not. According to the indictment, the defendants concealed the true purpose of the loan to G.L. and falsely stated the purposes of the other two loans.
If convicted, defendant Bekkedam faces a statutory maximum sentence of 115 years imprisonment, a $4,750,000 fine, five years supervised release, and a $700 special assessment. Hartline faces a statutory maximum sentence of 55 years imprisonment, a $2,750,000 fine, five years supervised release, and a $500 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service Criminal Inestigaton, the Federal Deposit Insurance Corporation Office of Inspector General, the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. It is being prosecuted by Assistant United States Attorney David Ignall.
In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million in taxpayer bank bailout funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raise $15 million in additional, private capital. The bank was ultimately unable to raise private capital, did not receive TARP funds, and in October 2012, the bank failed and was closed by state and federal banking regulators.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albion Man Sentenced to 12 Months in Prison for Defrauding the Social Security Administration of more than $48,000Read the Press Release
Roger Dale Young Lied About His Income and Resources
So That He Would Receive a Larger Disability Check Each MonthGRAND RAPIDS, MICHIGAN – Roger Dale Young, 55, of Albion, Michigan, was sentenced to 12 months in federal prison today for committing Social Security fraud. He was also ordered to pay restitution to the Social Security Administration. U.S. District Judge Janet T. Neff imposed the sentence.
Young, who had been receiving Supplemental Security Income disability benefits, pled guilty in September 2014 to lying about his assets and other financial resources in order to increase the amount of his monthly disability check. Young’s fraud occurred over the course of nearly 11 years and cost taxpayers more than $48,000.U.S. Attorney Patrick A. Miles, Jr., said, “Protecting taxpayers is one of our primary missions. We will continue to vigorously prosecute those who defraud federal agencies like the Social Security Administration.”
The case was investigated by the Social Security Administration’s Office of Inspector General, the Albion, Michigan Police Department, and the Calhoun County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Clay Stiffler.
Albion Man Sentenced to 12 Months in Prison for Defrauding the Social Security Administration of More than $48,000Read the Press Release
Roger Dale Young Lied About His Income and Resources So That He Would Receive a Larger Disability Check Each Month
GRAND RAPIDS, MICHIGAN – Roger Dale Young, 55, of Albion, Michigan, was sentenced to 12 months in federal prison today for committing Social Security fraud. He was also ordered to pay restitution to the Social Security Administration. U.S. District Judge Janet T. Neff imposed the sentence.
Young, who had been receiving Supplemental Security Income disability benefits, pled guilty in September 2014 to lying about his assets and other financial resources in order to increase the amount of his monthly disability check. Young’s fraud occurred over the course of nearly 11 years and cost taxpayers more than $48,000.
U.S. Attorney Patrick A. Miles, Jr., said, “Protecting taxpayers is one of our primary missions. We will continue to vigorously prosecute those who defraud federal agencies like the Social Security Administration.”
The case was investigated by the Social Security Administration’s Office of Inspector General, the Albion, Michigan Police Department, and the Calhoun County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Clay Stiffler.
Thursday 15 January 2015
Yah-Ta-Hay Man Sentenced to Sixty-Six Months in Federal Prison for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Allen Harragarra, 34, a member of the Navajo Nation who resides in Yah-Ta-Hay, N.M., was sentenced today to 66 months in federal prison for his voluntary manslaughter conviction. Harragarra will be on supervised release for three years after completing his prison sentence. He also was ordered to pay $2,689.41 in restitution to cover the victim’s funeral expenses.
Harragarra was arrested in Dec. 2013, on a complaint alleging that he killed a Navajo man on Dec. 2, 2013, on the grounds of a school in Tohatchi, N.M., which is located within the Navajo Indian Reservation. According to the complaint, Harragarra stabbed the victim in the neck during a physical altercation.
On July 22, 2014, Harragarra pled guilty to a voluntary manslaughter charge and admitted killing the victim on Dec. 2, 2013, by stabbing him in the neck. In his plea agreement, Harragarra admitted stabbing the victim once in the neck while acting out of fear and in the heat of passion. He acknowledged that his actions resulted in the unlawful death of the victim.
The case was investigated by the Albuquerque and Gallup offices of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney David Adams.
Wyoming Man Sentenced to 3 Years in Prison for Stealing Forest Service ExplosivesRead the Press Release
BILLINGS – A Wheatland, Wyoming man who stole 688 pounds of explosives from the U.S. Forest Service has been sentenced to 36 months in prison followed by 3 years supervised release. Budd Nesius, 33, was sentenced by U.S. District Judge Susan Waters after pleading guilty to possession of stolen explosives. In addition, Nesius was ordered to pay restitution to the U.S. Forest Service in the amount of $1,234.65.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government told the court that in April 2013 in Red Lodge, the defendant knowingly possessed approximately 500 pounds of stolen explosive materials. While looking for a place to camp, Nesius drove down a dirt road and arrived in the area of a U.S. Forest Service (“USFS”) bunker which contained explosives. This explosives magazine/bunker is located several miles west of Red Lodge on USFS property. Nesius saw signs in the immediate vicinity warning of the explosives.
Shortly before dark, Nesius cut the locks with a pair of bolt cutters and loaded approximately 10 boxes of explosives into the back of his truck. This amounted to more than 500 pounds of explosives. The following morning Nesius transported the stolen explosives from Red Lodge to his hometown of Wheatland, Wyoming.
The investigation led agents to find boxes of explosives marked with USFS stickers abandoned by Wheatland reservoir. . An examination of the serial numbers on the recovered explosives determined that these were in fact the same stolen explosives taken from the USFS in Red Lodge, Montana.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Woodbury County Felon Involved with Drugs and Guns Gets Sentence of Eleven Years in Federal PrisonRead the Press Release
Contact: Steve Young
A Sioux City man was sentenced January 13, 2015, to more than eleven years in federal prison for conspiring to distribute methamphetamine, and for illegal possession of a firearm.
Nicholas Howard Juarez, age 31, from Sioux City, received his prison term after a May 21, 2014, guilty plea to conspiracy to distribute methamphetamine, and to being a felon in possession of a firearm. Juarez was convicted in 2004 in Dakota County Nebraska District Court for a felony offense, which precluded him from lawfully possessing firearms.
Information provided by the United States at the sentencing and change of plea hearing showed Juarez’s involvement during the Spring of 2013 through January 14, 2014 in a conspiracy that distributed at least 35 grams of actual (pure) methamphetamine. Juarez possessed multiple pounds of marijuana and methamphetamine as well as several firearms. On January 18, 2014, officers arrested Juarez, and during the arrest, seized three small baggies of methamphetamine from the defendant’s shirt pocket. That same day, a search warrant was executed at the defendant’s residence, and a stolen shotgun and several other firearms and ammunition were seized.
Juarez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Juarez was sentenced to 135 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Juarez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, which consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa Police Department; Bureau of Immigration and Customs Enforcement; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and the Woodbury County Attorney’s Office..
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4008.
Winter Garden Man Pleads Guilty to Defrauding FEMARead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Keith A. Greenwood (49, Winter Garden) today pleaded guilty to wire fraud. He faces a maximum penalty of 30 years in federal prison. The sentencing hearing is scheduled for April 20, 2015.
According to the plea agreement, in the aftermath of Hurricane Sandy, the Federal Emergency Management Agency (FEMA) began providing disaster assistance to individuals whose primary residences had been damaged by the hurricane. In November 2012, days after Hurricane Sandy struck New York City, Greenwood submitted an application for disaster assistance. In his paperwork, he falsely represented to FEMA that a property in Brooklyn, New York was his primary residence. The Brooklyn property was a building that Greenwood owned and rented to tenants. His true primary residence was in Winter Garden, Florida. Because his primary residence was not impacted by the hurricane, Greenwood was not entitled to the $17,385.73 in disaster assistance payments that FEMA awarded him based on his misrepresentations. On January 10, 2013, as part of an attempt to obtain another $5,000 in disaster assistance from FEMA, Greenwood faxed fake work receipts to FEMA that purported to be for repair work performed on the Brooklyn property. Ultimately, Greenwood admitted to investigators that he intentionally had told FEMA that the Brooklyn property was his primary residence, when he knew that his primary residence was in Florida.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the FEMA Fraud Prevention and Investigation Branch. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Wilkes-barre Man Sentenced to 5 Years in Federal Prison for Possessing Firearm in Connection with Drug TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Wilkes-Barre man was sentenced to five years in prison today by Senior U.S. District Court Judge Edwin M. Kosik for possessing a firearm in furtherance of a drug trafficking felony.
According to United States Attorney Peter Smith, the defendant, Tristan Somers, previously pleaded guilty to committing the crime in Wilkes-Barre during May 2014.
Somers was indicted by a federal grand jury on June 3, 2014, following an investigation by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Wilkes-Barre Police, and Kingston Police.
Judge Kosik ordered Somers to be placed on two years of supervised release following his prison sentence, and pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Wellpinit Man Sentenced to Federal Prison for Violent Domestic AssaultRead the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Gabriel Joseph Andrew, age 28, of Wellpinit, Washington, was sentenced today after having previously pleaded guilty on September 4, 2014 to one count of Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner in Indian Country. United States District Court Judge Stanley A. Bastian sentenced Andrew to a 39-month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on March 18, 2014, Andrew assaulted his long-time girlfriend. The victim was punched and kicked by Andrew, resulting in numerous injuries including a large gash on the victim’s forehead.
Michael C. Ormsby stated, “Domestic violence continues to be a problem around the country. I commend the Spokane Tribal Police Department and the FBI for their leadership in addressing this problem and for their outstanding professional partnership exemplified by the successful investigation and prosecution of this matter. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting domestic violence assaults that occur within areas under federal jurisdiction, including the Indian reservations in the District.
This investigation was conducted by the Spokane Tribal Police Department and the FBI. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-14-0085-SAB
United States Settles with Lehigh County Landlord over Section 8 Rent Subsidy PaymentsRead the Press Release
PHILADELPHIA - The United States Attorney's Office announced today that Bellante Properties, of Lehigh County, PA, and its owners Vincent Fantozzi and Bernard Fantozzi, will pay the government $19,120 to resolve allegations surrounding federally-funded rental assistance payments it received. According to a civil complaint, Bellante Properties received rent subsidy payments from the Lehigh County Housing Authority while unlawfully requiring a tenant to pay supplemental rental payments disguised as trash removal fees.
The lawsuit was filed by Karen Schware, in the United States District Court for the Eastern District of Pennsylvania, under the whistleblower provisions of the False Claims Act. The False Claims Act allows private citizens to bring civil actions on behalf of the United States and to share in any recovery.
The Section 8 housing assistance program is designed to provide affordable housing to low-income families. According to the government’s complaint, between July 2007 and September 2013, Bellante Properties received payments from the Lehigh County Housing Authority under the Section 8 rent assistance program. In addition to receiving federally-funded Section 8 rent assistance payments, and approved rent payments from the tenant, the government alleges that Bellante Properties also unlawfully required the tenant to provide supplemental rent payments that had not been approved by the Lehigh County Housing Authority. The unlawful supplemental payments were disguised as trash removal fees. The parties have agreed to settle the dispute for a payment by the defendants of $19,120 to the United States. Bellante Properties and its principals, Vincent Fantozzi and Bernard Fantozzi, are also barred for three years from participation in HUD’s Section 8 program. As a whistleblower, Schware will receive a share of the settlement proceeds. Bellante Properties will also pay Schware’s legal fees.
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Department of Housing and Urban Development Office of Inspector General. The case was handled by Assistant U.S. Attorney Joel M. Sweet.
U.S. Attorney Barry Grissom to Speak on Martin Luther King Day in ManhattanRead the Press Release
TOPEKA, KAN. - U.S. Attorney Barry Grissom will speak on Martin Luther King Day in Manhattan.
Grissom will be the featured speaker for the Martin Luther King Prayer Breakfast. The event is set for 8 a.m. Jan. 19 at the Four Points Sheraton, 530 Richards Drive in Manhattan.
“Dr. King helped to bring about our nation’s greatest civil rights legislation, the Civil Rights Act of 1964 and the Voting Rights Act of 1965,” Grissom said. “As he always said, we’ve come a long way – and we still have a long way to go.”
Grissom was appointed by the president and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.
Two Men Sentenced for Roles in Conspiracy to Conduct Fraudulent Credit Card Transactions at North Texas Sam’s ClubsRead the Press Release
DALLAS — Two men who conspired together to use counterfeit credit cards to make hundreds of thousands of dollars of purchases at various Sam’s Club store locations in North Texas and Missouri, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Yesterday, Leonel Martiatu, 29, was sentenced by U.S. District Judge Barbara M. G. Lynn to serve a total of 72 months in federal prison. Martiatu pleaded guilty in August 2014 to one count of conspiracy to commit access device fraud and one count of aggravated identity theft.
Co-conspirator Alian Gamboa, 20, who pleaded guilty to the same offenses, was sentenced last month by Judge Lynn to serve a total of 60 months in federal prison.
In addition, Judge Lynn ordered that Martiatu and Gamboa pay, jointly and severally, $340,497 in restitution. Both defendants have been in custody since their arrest in March on a related federal criminal complaint. Both have ties to Miami, Florida, according to detention orders entered in the case.
According to plea documents filed, from January 17, 2014, to approximately March 4, 2014, Martiatu and Gamboa conspired together and used counterfeit access devices encoded with credit card numbers – issued to others – to make purchases at Sam’s Club locations in and near Dallas and elsewhere, including Missouri. Together, the two obtained a total of $340,497 of things of value, affected interstate commerce, and acted with the intent to defraud the persons to whom the credit cards were issued.
According to the complaint filed in the case, on March 3, 2014, the defendants were located at a motel on N. Central Expressway in Dallas. The following day, a federal search warrant was executed at their room in the motel, and numerous items purchased from Sam’s Clubs were located.
The U.S. Secret Service investigated. Special Assistant U.S. Attorney Danial Gividen prosecuted.
Two Fresno Men Charged with Being Felons in Possession of A FirearmRead the Press Release
FRESNO, Calif. — Today, a federal grand jury in Fresno indicted two defendants in separate cases with being felons in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
The cases were brought as part of the Project Safe Neighborhoods (PSN) federal initiative. PSN brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
According to the first indictment, police officers conducted a probation search of an apartment in Fresno where Alan Anthonee Amey, 23, was residing after receiving a report that Amey had two guns and was threating to shoot the reporting party. Officers found a loaded Glock 23 .40‑caliber semi-automatic handgun and a loaded Ruger P95 9mm handgun. Amey is prohibited from possessing a firearm after being convicted in Fresno County of domestic violence in 2010 and 2011. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
The second indictment alleges that on December 6, 2014, Ernie Michael Rodriguez, 39, of Fresno, was stopped by officers when he failed to stop at a stop sign. Officers searched the vehicle and found an AA Arms, model AP9, 9mm firearm. The firearm had a high capacity magazine that contained 26 rounds of live ammunition. The vehicle had been reported stolen the previous day. Rodriguez is prohibited from possessing a firearm. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges against defendants are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the product of investigations by the Fresno Police Department.Tulsa Man Sentenced to 9 Years for Bank RobberyRead the Press Release
TULSA, Okla.—United States District Chief Judge Gregory K. Frizzell sentenced Aaron Joseph Rock, 24, of Tulsa, to serve 110 months in prison today for robbing a bank in Sand Springs, U.S. Attorney Danny C. Williams Sr. announced.
On June 14, 2014, Rock entered BancFirst in Sand Springs and presented a bank teller with a bank withdrawal slip on which was written the message, “Give me your money, I have a gun.” Rock then stole $1,232 from the bank.
Rock was indicted on August 5, 2014. United States Judge Frizzell also ordered Rock to pay $1,232 in restitution to the bank.
The case was investigated by the FBI and the Sand Springs Police Department. Assistant U.S. Attorneys R. Trent Shores and Clinton J. Johnson prosecuted on behalf of the United States.
U.S. v. Aaron Joseph Rock
Traffickers with Ties to Mexican Drug Cartel Sentenced to PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven today sentenced Mario Manzur Reyes (31, Tampa) and Santos Rene Herrera-Cruz (50, Tampa) for conspiring to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Reyes was sentenced to five years and ten months in federal prison. Herrera-Cruz was sentenced to ten years’ imprisonment. Both pleaded guilty in September 2014.
According to court documents, Reyes oversaw the delivery of more than 16 pounds of highly pure methamphetamine from Laredo, Texas to the Tampa area. The methamphetamine had a street value of at least $250,000. Reyes, who was affiliated with a drug cartel operating out of Michoacán, Mexico, arranged for the drugs to be picked up on March 10, 2014, by one of his customers at a truck stop on U.S. 301. The customer, in turn, hired Herrera-Cruz to take possession of the shipment for him.
“Trafficking methamphetamine is a serious offense and a danger to our communities,” said Susan L. McCormick, special agent in charge of Homeland Security Investigations Tampa. “HSI, together with our federal, state and local law enforcement partners, is committed to combating the menace posed by illegal substances.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Three Toledo Residents Indicted for Forging Will to Fraudulently Obtain $2.2 MillionRead the Press Release
A 59-count federal indictment was unsealed today charging three Toledo residents for their roles in a conspiracy in which they are accused of forging a will to fraudulently gain control of an estate worth approximately $2.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Susan M. Pioch, 58; Margaret L. McKnight, 40, and Kurt L. Mallory, 51. They each face one count of conspiracy to commit bank fraud and mail fraud, 21 counts of bank fraud, seven counts of mail fraud and one count of aggravated identity theft. Pioch, McKnight and Mallory each face additional counts of money laundering. McKnight faces an additional count of structuring cash withdrawals, three tax counts and seven counts of causing a financial institution to fail to file a required report.
“This group lied, cheated and stole millions of dollars that had been amassed over a lifetime,” Dettelbach said.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Martin E. Fewlas executed a will in 1993 devising his entire estate to his brother. If his brother did not survive Fewlas, the estate was to go to his nephew and then his great-nephew, identified in the indictment as JRM.
Fewlas owned the duplex located at 2557 Broadway Street in Toledo. He lived in the lower half and for approximately 10 years, McKnight and Mallory lived together in the upper half, according to the indictment.
Fewlas died on Aug. 28, 2010, leaving an estate worth approximately $2.2 million. On Sept. 2, 2010, McKnight, Mallory and Pioch – an attorney who had previously done legal work for McKnight and Mallory forged a will in Fewlas’ name. The forged will was drafted by Pioch and named McKnight as the executor and sole devisee of Fewlas’ assets. Pioch filed the forged will with the Lucas County Probate Court on or around Sept. 2, 2010. McKnight identified herself as executor of the estate and Pioch identified herself as attorney for the executor in probate court documents, according to the indictment.
By filing the forged will and concealing its fraudulent nature, Pioch, McKnight and Mallory succeeded in obtaining Probate Court authority to take possession of Fewlas’ assets. After obtaining those assets, they disbursed the assets to themselves for their own enrichment, according to the indictment.
Pioch, McKnight and Mallory used those assets to purchase, among other things, a used car dealership, a 2000 Discovery motorhome for $55,036, a classic 1972 Chevrolet El Camino for $17,000, a 2010 Kia Soul SUV for $21,338, as well as property. They also withdrew more than $500,000 in cash for Fewlas’ estate proceeds, according to the indictment.
JRM, Fewlas’ great nephew and the sole remaining devisee from the 1993 will, received nothing, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and James V. Moroney following an investigation by the Internal Revenue Service – Criminal Investigations and the Toledo Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Plead Guilty in Federal Court, 4th to Stand Trial in Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – Gbabia Kollie, 27, of Johnson City, Tenn., has pleaded guilty in federal court in Providence to participating in an alleged scheme to burn a multi-tenement building at 31-33 Ida Street in Providence in November 2013, in an alleged arson-for-profit scheme. Kollie has been detained in federal custody since December 5, 2013, when he was removed from an outbound international flight leaving Atlanta for Liberia and arrested by ATF agents.
Appearing on Wednesday before U.S. District Court Chief Judge William E. Smith, Kollie pleaded guilty to one count each of conspiracy to commit arson and arson. He faces statutory penalties totaling between 5 and 40 years in federal prison and a fine of up to $500,000 when he is sentenced on April 3, 2015.
Two co-conspirators, Abraham Kerkula, 21, of Pawtucket and Nakele Freeman, 21, of Providence, previously pleaded guilty to one count each of conspiracy to commit arson and arson. Kerkula is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on March 27, 2015. A sentencing hearing has not yet been scheduled for Nakele Freeman. Both are detained in federal custody.
A fourth defendant in this matter, Kormahyah Karmue, 39, of, Providence, owner of the Ida Street property allegedly targeted to be burned, is awaiting trial on charges of conspiracy to commit arson, arson, wire fraud, mail fraud and theft of U.S. government funds. It is alleged in a federal indictment returned in May 2014, that Karmue masterminded the scheme in order to collect insurance payments. He has pleaded not guilty to the charges and is detained in federal custody.
The guilty pleas are announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Providence Public Safety Commissioner Steven M. Paré.
At the time of his guilty plea, Kollie admitted to the court that he enlisted the assistance of Nakele Freeman to participate in the alleged conspiracy. At the time of their guilty pleas, Freeman and Kerkula admitted that late in the evening of November 1 and in the early morning hours of November 2, 2013, Freeman asked Kerkula to give him a ride to a location where he was going to set fire to a building for “a lot of money.”
After traveling together to purchase 5-gallon gasoline storage containers and gasoline, Freeman and Kerkula traveled to the targeted property where Freeman removed the gasoline from the vehicle and entered the building. Freeman admitted to the court that he entered a vacant third floor apartment and spread the gasoline, and a fire ignited. He fled the building and met Kerkula at a designated location on a nearby side street.
According to court documents and information presented to the court, it is alleged that Kollie arranged with Freeman to set fire to the building in return for a payment of a portion of the expected insurance settlement. It is alleged that Kollie had several telephone conversations with Freeman while Freeman and Kerkula were in the vehicle en route to the Ida Street property.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The investigation was conducted by ATF, the Providence Fire Department Arson Squad and the Providence Police Department Detective Bureau.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Three More Sent to Federal Prison for Roles in Large Scale Marijuana ConspiracyRead the Press Release
Contact: Steve Young
Three men are headed to federal prison for their roles in a marijuana trafficking organization that brought large amounts of high-priced marijuana from Colorado and California to Iowa.
Jesse Tolen, Shannon Ehlts, and Corey Marx all pled guilty to conspiracy to distribute marijuana and were sentenced today in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Tolen had also pled guilty to conspiracy to commit money laundering.
- Tolen, 36, from Castella, California, was sentenced to 24 months’ imprisonment and will report to the Bureau of Prisons on a later date.
- Ehlts, 38, from Lowden, Iowa, was sentenced to nine months’ imprisonment and will report to the Bureau of Prisons on a later date.
- Marx, 29, from Cedar Rapids, Iowa, was sentenced to eight months’ imprisonment followed by a two month period of home detention. Marx is being held in the United States Marshal’s custody until he can be transported to a federal prison
All three must also serve three-year terms of supervised release after their prison terms. There is no parole in the federal system.
Tolen, Ehlts, and Marx were the last of twelve people to be sentenced in the conspiracy. Sentences for the twelve ranged from probation to 46 months’ imprisonment. The organization was dismantled through a DEA investigation that involved court-authorized wiretaps on multiple cellular phones.
The cases were prosecuted by Assistant United States Attorneys Justin Lightfoot and Matthew Cole, and investigated by the Drug Enforcement Administration (DEA) Task Force as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice. The DEA Task Force consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement..
Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file numbers for the twelve sentenced defendants are as follows: Mark Swanson 14-CR-66; Nels Nelson 14-CR-6; Chad Straub 14-CR-20; Robert and Brenda Leonard 14-CR-37; Tolen 14-CR-39; Matthew Fritz 14-CR-78; Ehlts 14-CR-79; Tyler Scheer 14-CR-82; Marx 14-CR-85; James Allen 14-CR-86; and Cory Kintzel 14-CR-92
- Tolen, 36, from Castella, California, was sentenced to 24 months’ imprisonment and will report to the Bureau of Prisons on a later date.
Three Mexican Brothers Plead Guilty to Sex Trafficking and Sex Trafficking ConspiracyRead the Press Release
Earlier this week and today, in federal court in Brooklyn, New York, three brothers pled guilty to sex trafficking charges. The defendants, who are Mexican nationals, transported Mexican females from Mexico to the United States illegally, forcing them to work as prostitutes in New York City and elsewhere. At the time of sentencing, defendants Jorge Estrada-Tepal and Ricardo Estrada-Tepal, who pled guilty to sex trafficking conspiracy and sex trafficking involving force, fraud and coercion, face a mandatory term of imprisonment of 15 years, with a maximum possible sentence of up to life in prison. Defendant Victor Leonel Estrada-Tepal, who pled guilty to sex trafficking conspiracy and sex trafficking of a minor, faces a mandatory term of imprisonment of ten years, with a maximum possible sentence of up to life in prison. The defendants were arrested in January 2014. These guilty pleas are the latest in the Office’s comprehensive anti-trafficking program, which has to date indicted over 55 defendants in sex trafficking cases and rescued over 115 victims, including over 25 minors.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
“The defendants are classic predators: they targeted women and a young girl in Mexico, and pushed them into a life of sexual slavery in Mexico and the United States. As our trafficking cases have repeatedly shown, we will not relent against those who choose to subject victims to modern-day slavery in an effort to line their own pockets,” stated United States Attorney Lynch. Ms. Lynch thanked the Mexican authorities and other entities that assisted with the investigation and successful prosecution of this case.
“These men preyed on innocent women, luring them into the United States under false pretenses and then cruelly enslaving them to satisfy their own greed in a ruthless prostitution scheme,” said HSI Special Agent-in-Charge Hayes. “Prosecuting human traffickers and rescuing human trafficking victims is a priority of this office and the Department of Homeland Security. These guilty pleas highlight that commitment and serve as a warning to other predators that law enforcement at all levels is determined to dismantle these heartless human trafficking organizations.”
As set forth in court documents, and discussed during the guilty plea proceedings, the sex trafficking involved at least four victims, and the defendants used various methods to force these women to work in prostitution, ranging from threats of violence, assault and psychological coercion. One minor victim, identified at the guilty plea proceedings as Jane Doe 4, was under the age of 18 when she was trafficked to the United States. During the guilty plea held today, defendant Jorge Estrada-Tepal admitted that, starting in 2007, he and his brothers entered into a conspiracy to transport women from Mexico to Queens to engage in prostitution, and that threats of force were used against the victims. Likewise, yesterday, Ricardo Estrada-Tepal admitted that he and his brothers brought women from Mexico to the United States, where they were forced to work in prostitution, and that he and his brothers did not tell the women the “real truth about why they were coming to the United States.” On Tuesday, defendant Victor Leonel Estrada-Tepal admitted that he agreed with his brothers to force women to work in prostitution, including his wife, Jane Doe 4, who was 17 years old at the time, who he brought from Mexico to Queens to have her engage in prostitution.
Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the Procuraduría General de la República (PGR), the Secretaría de Seguridad Pública (SSP), Procuraduría Social de Atención a las Víctimas de Delitos (PROVICTIMA), and non-governmental partners in the United States and Mexico in a Bilateral Human Trafficking Enforcement Initiative. Through this Initiative, the United States and Mexico have worked together to bring high-impact prosecutions under both U.S. and Mexican law to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, prosecute human traffickers, rescue human trafficking victims, and reunite victims with their families. Other significant bilateral cases have been prosecuted in Atlanta, Georgia, and Miami, Florida.
The government’s case was prosecuted by Assistant United States Attorneys Taryn A. Merkl and Melody Wells.
The Defendants:
RICARDO ESTRADA-TEPAL
Age: 33
Queens, NY
VICTOR LEONEL ESTRADA-TEPAL
Age: 29
Queens, NY
JORGE ESTRADA-TEPAL
Age: 37
Queens, NY
E.D.N.Y. Docket No. CR-14-105 (MKB)
- This release has been removed
Tarrant County Woman Sentenced to 27 Months in Federal Prison for Theft of Government FundsRead the Press Release
DALLAS — A Keller, Texas, woman who continued to collect a family member’s Social Security retirement insurance benefits even after that family member died, was sentenced this afternoon, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jeani Mulligan, 43, was sentenced by U.S. District Judge Jane J. Boyle to serve 27 months in federal prison. Mulligan, who pleaded guilty in September 2014 to one count of theft of government funds, must also pay a total of $124,825 in restitution. At the conclusion of the hearing, Judge Boyle remanded Mulligan into federal custody.
According to documents filed in the case, Mulligan admitted that she received approximately $124,825 in Social Security benefits to which she was not entitled. Specifically, from approximately December 30, 2000, to February 2013, Mulligan received Title II Retirement Insurance benefits paid to her mother-in-law, to which she knew she was not entitled. Mulligan continued to receive these funds after her mother-in-law died on December 30, 2000.
The case was investigated by the Social Security Administration’s Office of the Inspector General. Special Assistant U.S. Attorney Nicole Dana prosecuted.
Suspected Alien Smuggler and Four Others IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned five (5) indictments arising from an investigation into the transportation of illegal aliens through the Middle District of Louisiana.
Raul Vega, age 60, of Homestead, Florida, was charged in a criminal complaint filed on December 11, 2014, with transporting illegal aliens within the United States for commercial or private financial gain. On December 17, 2014, a federal grand jury returned an indictment charging Vega with the same offense. According to the indictment, on December 10, 2014, the defendant was driving a vehicle on Interstate 12 in Baton Rouge containing a total of ten (10) illegal aliens, including four (4) individuals who allegedly had previously been deported from the United States. Those four individuals – David Raymundo-Matom, Antonio Pedro-Lorenzo, Jose Ramirez-Arroyo, and Gabriel Salgado-Lozano – were also indicted by the grand jury on December 17, and each stands charged with illegal re-entry into the U.S. by a previously-deported alien.
This matter is being investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). This matter is being prosecuted by Assistant U.S. Attorney Jessica M.P. Thornhill.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Streetsboro Man Indicted on Child Pornography ChargesRead the Press Release
A federal indictment was unsealed that charges a Streetsboro man with with two counts related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland Office.
Ronald Flick, 46, was charged with one count of receiving and distributing visual depictions of minors engaged in sexually explicit conduct and one count of possessing computers, hard drives and compact discs containing child pornography.
The case is being prosecuted by Assistant United States Attorney Michael Sullivan following an investigation by the Federal Bureau of Investigation, the Ohio Bureau of Criminal Investigation and the Streetsboro Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stockton Man Pleads Guilty to Illegally Selling FirearmsRead the Press Release
SACRAMENTO, Calif. —Donovan Torres, 21, of Stockton, pleaded guilty today to illegally selling firearms, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 15, 2014, Donovan Torres participated in the illegal sale of three firearms to an undercover special agent working with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Then, on January 31, 2014, Torres sold the agent a Masterpiece Arms MPA30, 9mm pistol for $1,350. And on February 13, 2014, Torres met with a second undercover ATF agent and sold him an Izhmash Saiga, .223‑caliber rifle for $1,600. These illegal gun sales all took place inside a residence in Stockton. Torres did not have a federal license to sell firearms.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Donovan Torres is scheduled to be sentenced by United States District Judge Morrison C. England Jr. April 9, 2015. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
State Inmate Sentenced on Conviction of Forging A Federal Judge’s SignatureRead the Press Release
PITTSBURGH – An inmate at SCI-Houtzdale, located in Houtzdale, Pennsylvania, pleaded guilty and was sentenced in federal court in Pittsburgh on a charge of forging a judge’s signature, United States Attorney David J. Hickton announced today.
Michael J. Kramer, 31, formerly of New Kensington, Pa., and currently serving a sentence for a state parole violation at SCI Houtzdale, pleaded guilty and was sentenced to six months’ incarceration, followed by three years of supervised release, on one count before United States District Judge Arthur J. Schwab.
According to information provided to the Court, on April 4, 2014, a Records Specialist at SCI Houtzdale contacted the United States Marshals’ Office with concerns that the institution may have received a falsified “Order of Court” in which it was written that “Michael J. Kramer’s guilty plea be and as the same is VACATED.” The document was present in Kramer’s transport file. Kramer had recently been returned to Houtzdale from SCI Pittsburgh, and this folder would have returned to Houtzdale with him.
At the time, Kramer was in state custody serving a parole violation and was due to be released from state custody in August 2014. A federal detainer followed him, however, because he also had pleaded guilty and was awaiting sentencing in federal court in Pittsburgh on charges of armed bank robbery, possession of a firearm by a convicted felon, and using a firearm in relation to a crime of violence. The Records Specialist at Houtzdale believed the Court Order purportedly vacating Kramer’s conviction was a fraudulent document because she did not observe a court seal, the order contained two different fonts, the order did not contain an original signature, and the order was folded six ways, as though someone had placed it in his pocket.
The Marshals reviewed Kramer’s bank robbery court docket online and confirmed that no such order was actually filed dismissing his conviction. The Marshals also traveled to Houtzdale to interview Kramer, and Kramer confessed to the Marshals that he created this fake Court Order in the law library at the prison.
Last month, Kramer was sentenced by the Honorable David S. Cercone to 20 years (240 months) in prison, followed by five years of supervised release, on his armed bank robbery and firearms conviction. Judge Schwab ordered that the six-month sentence for the forgery conviction should run concurrently with the robbery and firearms conviction
Assistant United States Attorneys Barbara K. Doolittle, Troy Rivetti, and Conor Lamb prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Borough of Coraopolis Police Department, and the United States Marshals’ Service for the investigation leading to the successful prosecution of Michael J. Kramer.
State Employee Pleads Guilty to Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL CARTER, 51, of New Haven, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of tax evasion.
This matter stems from an Internal Revenue Service investigation into high income State of Connecticut employees who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain state employees submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.
According to court documents and statements made in court, CARTER has been employed by the Connecticut Department of Mental Health and Addiction Services, working as a nurse at the Connecticut Valley Hospital in Middletown since 2005. CARTER submitted a false Form W-4 to the state indicating that he had 99 exemptions and was exempt from tax withholding. As a result, no money was withheld from his wages. During the 2010 through 2012 tax years, CARTER paid no federal income taxes on more than $282,000 in income he received, resulting in a federal tax loss of $53,344.
Judge Thompson scheduled sentencing for April 14, 2015, at which time CARTER faces a maximum term of imprisonment of five years and a fine of up to $250,000. He also is required to pay back taxes, plus interest and penalties.
CARTER was charged by indictment on April 9, 2014, and is currently released on bond.
This ongoing investigating is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]South Florida Man Sentenced for Oxycodone Distribution and Identity TheftRead the Press Release
BOSTON – A Miami man operating throughout South Florida was sentenced on Jan. 9, 2015, for his role in an oxycodone distribution conspiracy involving thousands of oxycodone pills and stolen identities of Puerto Rican residents.
Jose Perez, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to 46 months in prison and three years of supervised release. In April 2014, Perez pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone, distribution of oxycodone, and identity theft.
In February 2011, a federal investigation into the oxycodone distribution organization operated by Perez in Florida and several co-conspirators in the Boston area revealed that from at least 2011 through January 2013, Perez sold large quantities of oxycodone pills to co-conspirators in Massachusetts and Rhode Island who distributed the oxycodone pills in Massachusetts. Beginning in November 2011, Perez initiated an identity theft and tax refund scheme where he sold hundreds of legitimate names, dates of birth, and Social Security numbers of Puerto Rican residents to an undercover federal agent, intending that the identities be used to fraudulently obtain tax refunds. Over the last several years, increasing numbers of drug dealers have diversified their operations to include lucrative identity theft and tax fraud schemes.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Christophe F. Bator of Ortiz’s Drug Task Force Unit.