Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 14 January 2015
Oakdale Man Pleads Guilty to Armed Robberies of Three Western Pennsylvania BanksRead the Press Release
PITTSBURGH - On Jan. 13, 2015, a resident of Oakdale, Pa., pleaded guilty in federal court to charges of armed bank robbery and using a firearm during a crime of violence, United States Attorney David J. Hickton announced.
John J. Gibson, 35, pleaded guilty to four counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on Nov. 12, 2013, at approximately 12:25 p.m., Gibson and his co-defendant, Daniel Bose, robbed the Community Bank located at 3241 West Roy Furman Highway, in Rogersville, Pa. Both men displayed firearms during the robbery, and $4,335 was taken. On Nov. 27, 2013, at approximately 12:35 p.m., both men robbed the S&T Bank located at 100 South Fourth Street, in Youngwood, Pa., taking $2,750. Finally, on Feb. 10, 2014, at approximately 1:35 p.m., both defendants robbed the First Federal Savings and Loan Association of Greene County located at 101 Locust Avenue Ext., Mount Morris, Pa. On that occasion, the defendants stole $23,667.
Last year, Daniel Bose pleaded guilty to these crimes as well, and he currently is awaiting sentencing.
Judge Schwab scheduled sentencing for Gibson for May 12, 2015, at 9:30 a.m. The law provides for a total sentence of not less than seven years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Barbara K. Doolittle and Troy Rivetti are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Gibson and Bose.
Newport News Man Pleads Guilty to Receiving Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Isaiah Al’Von Holloman, 21, of Newport News, pleaded guilty today to a charge of receiving child pornography.
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. 4:14-cr-68.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael F. Paul, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Tommy Miller.
Holloman was indicted by a federal grand jury on Nov. 19, 2014. According to a statement of facts filed with the plea agreement, law enforcement linked certain file-sharing activity online to Holloman’s residence. Law enforcement agents executed a search warrant on Holloman’s home and seized a hard drive that contained more than 600 images of child pornography. Holloman admitted to downloading images of child pornography and to using a peer-to-peer network to share child pornography files. Holloman also admitted that he used false names to set up accounts to obtain child pornography, and that he possessed hundreds of videos containing child pornography.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.New Orleans Woman Pleads Guilty to Role in Illegal Bail Bonds SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NICOLE CARRIE, age 36, a resident of New Orleans, pled guilty today to a one-count Bill of Information charging her with conspiracy to commit mail fraud.
According to court documents, CARRIE became a licensed bail bondwoman in 2004. CARRIE later permitted her name, license, and contracts with an insurance company to be used to operate an illegal bail bonding business located at 538 S. Broad Street in New Orleans.
U.S. District Judge Stanwood R. Duval, Jr., set sentencing for May 13, 2015. CARRIE faces a maximum sentence of 5 years imprisonment followed by 3 years of supervised release.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter, and the assistance of the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
New Orleans Man Sentenced for Child Pornography ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEREMY SHAWN REASON, age 34, of New Orleans, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Stanwood R. Duval, Jr. sentenced REASON to ten years incarceration, followed by ten years of supervised release and $1,000 in restitution.
According to court documents, REASON knowingly accessed child pornography with the intent to view images depicting the sexual victimization of minors. REASON had been in the custody of the Bureau of Prisons since his previous conviction in 2008 for Possession of Child Pornography. At the time of his arrest in April 2013, REASON was residing at a halfway house.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by special agents from the U. S. Department of Homeland Security, HSI. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
New Haven Narcotics Dealer Sentenced to 8 Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD ANDERSON, also known as “Mayut” and “Porter,” 28, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 96 months of imprisonment, followed by five years of supervised release, for distributing narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. Approximately 100 individuals were convicted of federal charges as a result of the investigation.
On February 6, 2014, a jury found ANDERSON guilty of one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”).
According to the evidence at trial, ANDERSON conspired with Kevin Wilson, also known as “Nature,” to distribute crack cocaine and heroin, primarily in the Dwight/Chapel area of New Haven. The trial evidence also revealed that ANDERSON supplied crack cocaine on multiple occasions to co-defendant Jesus Morales, also known as “Cano,” in deals that were brokered by Wilson. On several occasions, Anderson was intercepted on a wiretap threatening violence against Morales in an effort to collect a drug debt. At times, ANDERSON also obtained quantities of heroin from Wilson.
ANDERSON’s criminal history includes convictions for robbery and narcotics offenses.
ANDERSON has been detained since his arrest on May 17, 2012.
Wilson and Morales pleaded guilty. On September 26, 2013, Morales was sentenced to 63 months of imprisonment. Wilson awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Sentenced to 8 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAROD BROWN, 44, of New Haven, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 96 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a previously convicted felon. On November 14, 2013, a jury found BROWN guilty of the offense.
According to evidence introduced at trial, on April 5, 2011, BROWN fled from New Haven Police after a routine traffic stop. BROWN initially rammed a police car and engaged police in a car chase. He then exited the car and engaged police in a foot chase during which he discarded a loaded 9mm pistol in the yard of a residence on Elm Street. BROWN was apprehended and the firearm was recovered.
BROWN’s criminal history includes convictions for larceny, narcotics and firearms offenses. In 1993, BROWN was sentenced in New Haven federal court to 92 months of imprisonment for possession of a firearm by a previously convicted felon.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BROWN has been detained since his arrest.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jonathan Francis and Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Hampshire Corporation Sentenced on Violation of Arms Export Control ActRead the Press Release
CONCORD, NEW HAMPSHIRE – Netria Corporation, of 37 Industrial Drive, Exeter, NH, was sentenced in United States District Court for the District of New Hampshire for violating the Arms Export Control Act (AECA). On May 14, 2014, charges were filed alleging that Netria exported aircraft parts to Malaysia, specifically two Lockheed Martin Fuel Quantity Indicators, without having first obtained a license from the United States Department of State, as required by federal law, announced United States Attorney John P. Kacavas.
Under the (AECA), the President is authorized to control the export of “defense articles.” Items so designated constitute the United States Munitions List (USML). If an article is covered by the U.S. Munitions List, the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) regulates its export. The DDTC develops and updates the regulations, known as the International Traffic in Arms Regulations, or ITAR.
Under the provisions of the AECA, individuals or organizations must register with the DDTC, and apply for an export license to export defense articles. It is a felony to willfully violate the provisions of the AECA. This includes the requirement that those in the business of exporting defense articles, or in the business of brokering activities with respect to exporting defense articles, must register and obtain a license before exporting defense articles.
As a result of an inquiry by Netria to a Department of Homeland Security undercover storefront, agents from Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HIS) and the Defense Criminal Investigative Service (DCIS) in San Diego, CA began an investigation of Netria. Working with ICE agents in New Hampshire, evidence established that Netria had exported aircraft parts listed on the USML without having obtained a license from the U.S. State Department, in violation of the AECA. Court documents in this case disclose that between July 2007 and October 2009, Netria brokered the sale and export of approximately $2 million worth of aerospace parts, and included in those exports, between September 2008 and April 2009, Netria exported “defense articles,” specifically nine shipments of C-130 parts without a requisite State Department License.
“We will hold to account those who circumvent requirements designed to protect our national security,” said HSI Boston Special Agent in Charge Bruce Foucart. “I would like to congratulate the special agents of HSI and our partners with the Defense Criminal Investigative Service, who work tirelessly every day to pursue those who flout our export control laws and attempt to supply anyone with technology that could threaten our national security.”
On September 30, 2014, Netria pled guilty to the federal charges and admitted that it had exported two Lockheed Martin Fuel Quantity Indicators, which were “defense articles,” without having first obtained a license from the United States Department of State, as required by federal law. United States District Court Judge Landya McCafferty sentenced Netria to one year of probation and ordered the forfeiture of $12,560. This case was investigated by Immigration and Customs Enforcement, Homeland Security Investigations and Defense Criminal Investigative Service, and was prosecuted by Assistant U.S. Attorney Arnold H. Huftalen and Julie Edelstein of the United States Department of Justice, Counterespionage Section, National Security Division.
Nassau County Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Nicholas Mitko Clark (22, Yulee) has pleaded guilty to transporting child pornography. He faces a mandatory minimum sentence of five years, up to 20 years, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in April 2013, Clark used an instant messaging service to chat with an individual in Canada, with whom he exchanged child pornography. During the chat, Clark requested that the individual send him child pornography and advised that he likes children between the ages of and 8 and 13. After receiving an image depicting a young child, Clark responded that he already had that file and requested another one. Clark and the individual proceeded to exchange additional files of child pornography. Through their investigation, law enforcement agents obtained Clark’s cellphone and recovered several additional images of child pornography.
The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Jacksonville Sheriff's Office, with assistance from the Nassau County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Monmouth County, N.J., Man Sentenced to 87 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. - A Wayside, New Jersey, man was sentenced today to 87 months in prison for using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Nathan Brochstein, 41, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of distribution of child pornography. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Brochstein admitted making images and videos depicting child sexual abuse available online via peer-to-peer file sharing software. He also admitted possessing more than 600 images of child sexual abuse on his computer and external hard drive, which were seized from his residence in November 2012. Brochstein acknowledged that the images and videos of child pornography he distributed portrayed sadistic or masochistic conduct or other depictions of violence and included images of a prepubescent minor.
In addition to the prison term, Judge Cooper sentenced Brochstein to serve five years of supervised release.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge John P. Woods, with the investigation leading to today’s sentencing. He also thanked the Ocean Township Police Department and the Monmouth County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
15-014Defense counsel: Robert Weir Esq., Red Bank, New Jersey
Missouri Man Sentenced to Nearly Four Years on Interstate Stalking ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
William McBroom-Stees, 43, of Springfield, Missouri was sentenced yesterday in U.S. District
Court by Chief Judge Nancy Torresen to 46 months in prison and three years of supervised
release for interstate stalking. McBroom-Stees pleaded guilty to the charge on September 23,
2014.Court records reveal between November 9 and November 21, 2013, McBroom-Stees
made threatening telephone calls from Missouri to his ex-girlfriend and mother of his child while
she was driving from Illinois to Rockland, Maine, where she was relocating. In the calls and text
messages, McBroom-Stees threatened to kill and harm her, her immediate family, and others.
On November 13, McBroom-Stees threatened that if she did not return to Missouri by their
child’s birthday, he would “start the worst f***ing bloodbath in America” and dared the police to
come after him. That call was recorded by the victim with the help of a Knox County Sheriff’s
Office detective. Phone records revealed McBroom-Stees placed hundreds of calls and sent
numerous text messages to the victim, many of which were threatening, causing substantial
emotional distress to the victim and her family.
The investigation was conducted by the Knox County Sheriff’s Office, the Rockland
Police Department and the Federal Bureau of Investigation.Michigan Physician Sentenced to 15 Months in Prison for her Role in a $2.1 Million Medicare Fraud SchemeRead the Press Release
A Michigan physician involved in a $2.1 million home health care fraud scheme was sentenced today to 15 months in prison.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office made the announcement.
Dr. Paula Williamson, 69, of Redford Township, Michigan, was sentenced by U.S. District Judge Paul D. Borman of the Eastern District of Michigan. In addition to her prison term, Williamson was ordered to pay $1,343,261.61 in restitution.
According to her plea agreement, from August 2009 through October 2012, Williamson conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care services that were medically unnecessary and never provided. Williamson also falsified documents that were used to support false and fraudulent claims to Medicare.
According to her admissions, Williamson signed referrals for a home health care agency known as AMB Healthcare Inc. (AMB), which was located in Farmington Hills, Michigan, and owned by a co-conspirator. AMB needed a physician’s referral to bill Medicare for purported home health care services. Williamson admitted that, at the request of her co-conspirators, including the owner of AMB, she falsified medical documentation and certified Medicare beneficiaries as homebound—a requirement for Medicare reimbursement—when, in fact, she had never examined nor even met the beneficiaries, and they were not homebound. AMB used the falsified documents to support fraudulent claims to Medicare for home health care services that were never rendered and not medically necessary.
Between April 2009 and December 2012, Medicare paid AMB approximately $2.1 million for purported home health care services. Of that amount, approximately $1.3 million was based on Williamson’s false home health referrals.
This case was investigated by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. The case was prosecuted by Trial Attorneys Matthew C. Thuesen and Niall M. O’Donnell of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Mexican National Convicted of Transporting Illegal AliensRead the Press Release
LAREDO, Texas – A federal jury has convicted Jaime Gerardo Serrano-Villegas, 28, of Nuevo Laredo, Mexico, of transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. The verdict was returned following a two-day trial and less than two hours of deliberation.
According to testimony, Serrano-Villegas assisted other persons in moving a boat filled with Mexican Nationals across the Rio Grande River, towards Rio Bravo. Witnesses further described Serrano-Villegas acting as a guide and leading a group of six aliens into Rio Bravo. U.S. Border Patrol agents ultimately discovered seven Mexican Nationals who were subsequently detained. Evidence and testimony revealed that Serrano-Villegas admitted to Homeland Security Investigations (HSI) he had acted as a guide in order to make money for his daughter’s dental work.
Serrano-Villegas testified at trial and admitted to illegally entering the United States. However, he denied making any admissions to HSI, acting as a guide or having any involvement in the transportation of undocumented aliens into and through the U.S.
The jury did not believe his claims and found him guilty as charged.
Sentencing will be set at a later date. At that time, Serrano-Villegas faces up to 10 years in federal prison. He will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of U.S. Border Patrol. Assistant U.S. Attorney Christopher A. dos Santos is prosecutingthe case.
Melrose Man Pleads Guilty to Impersonating FBI AgentRead the Press Release
BOSTON – A Melrose man pleaded guilty in U.S. District Court in Boston on Monday to impersonating a federal agent.
Gjerji Pelushi, a/k/a “George Pelushi,” 28, pleaded guilty on Jan. 12 to two counts of impersonation of an officer of the United States. U.S. District Judge Denise J. Casper scheduled sentencing for April 8, 2015.
In 2014, the FBI received information about Pelushi from two victims who, like Pelushi, are originally from Albania. In separate interviews, both victims told agents that they had each paid thousands of dollars to Pelushi to assist them in obtaining a law enforcement job or in dealing with a law enforcement-related problem. One of the victims had a pending state court case which Pelushi promised to get dismissed. The victims paid for Pelushi’s help because he repeatedly told them he worked for the FBI.
During an undercover operation, agents recorded several telephone calls and meetings between Pelushi and the victims. On the recordings, Pelushi referred to himself as an FBI agent, confirmed he had taken thousands of dollars from both victims, and promised to use his connections as an agent to help them. In one meeting, Pelushi claimed to have patrolled this year’s Boston Marathon in plain clothes while armed and that “the Director” had told him and his fellow agents that if they “tell someone to stop and they reach for the bag, shoot them in the head!”
When Pelushi was arrested in August 2014, agents seized, among other items, a fake Harvard diploma and a private investigator manual. Pelushi ultimately admitted to agents that he had taken money from both victims and that he was not in fact an FBI agent.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case was prosecuted by Assistant U.S. Attorney Christopher Pohl of Ortiz’s Organized Crime Strike Force Unit.
Medford Drug Dealer Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
MEDFORD, Ore. - On Monday, January 12, 2015, Senior U.S. District Judge Owen M. Panner sentenced Steven Allen Longbrake, 28, of Medford, Oregon, to 12 1/2 years in federal prison for possession of methamphetamine with intent to distribute. Longbrake had previously pled guilty to that offense on September 15, 2014. After he completes his prison sentence, Longbrake will be on supervised release for five years.
On October 15, 2013, a Central Point Police Officer stopped a vehicle driven by Longbrake. After developing information that there may be drugs in Longbrake’s vechicle police searched it, and discovered approximately four ounces of methamphetamine on Longbrake’s person and in his car. Police also found digital scales and drug packaging in Longbrake’s backpack, and a trash bag full of marijuana plants in the back of the car.
Longbrake is a Federal Career Offender based upon his prior felony convictions for burglary in the first degree, manufacture of a controlled substance, and delivery of a controlled substance. His criminal history additionally includes previous convictions for assault in the fourth degree, strangulation, escape in the third degree, and possession of a controlled substance.
This case was investigated jointly by the Central Point Police Department and the Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Judith R. Harper.
McMechen roofing contractor convicted of fraudRead the Press Release
WHEELING, WEST VIRGINIA – Roofing and general contractor Stephen J. Gretchen, 44, of McMechen, West Virginia, was convicted today of failing to report cash payments to his employees and fraudulently collecting insurance benefits for staged damage to his vehicle, United States Attorney William J. Ihlenfeld, II, announced.
Gretchen admitted today that he knowingly underreported the wages, tips, and other compensation that he paid to his employees. He paid certain employees in cash “off the books.” He filed quarterly tax returns which failed to report these cash payments and failed to withhold certain tax amounts on behalf of his employees. In the second quarter of 2011, Gretchen reported that he paid no wages, tips, or other compensation to his employees. In fact, he had paid approximately $22,880.00 to his employees.
Gretchen owned a 2011 Coachman Freedom Express camping trailer. He admitted today that he paid one of his employees to deliberately and repeatedly crash a dump truck into the trailer, causing damage that totally destroyed the camping trailer for insurance purposes. Gretchen filed a claim with his insurance company, but falsely reported that the damage was caused by a hit-and-run accident. The insurance company sent Gretchen a check for $27,776.85 via FedEx in June 2012.
Gretchen pled guilty today to:
- One count of “Filing a False Form 941, Employees’ Quarterly Federal Tax Return” for which he faces up to three years in prison and a fine of up to $250,000.00, and
- One count of “Mail Fraud” for which he faces up to 20 years in prison and a fine of up to $250,000.00.
“Employers, such as Gretchen, that do not pay employment taxes to the government are not only stealing from the American taxpayers, but could be impacting the future benefits their employees are entitled to for their hard work” stated Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office. “Honest, hardworking citizens should be assured that business owners who are not paying their fair share of taxes will be prosecuted.”
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. The Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, and the West Virginia Offices of the Insurance Commissioner, Fraud Investigation Unit are investigating.
U.S. Magistrate Judge James E. Seibert presided.
Manhattan U.S. Attorney Announces Proposed Settlement Agreement in Landmark Civil RICO ActionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States Attorney’s Office and the International Brotherhood of Teamsters (the “IBT” or the “Union”) have entered into a settlement agreement (the “proposed agreement”) that, if approved by the Court, would replace the Consent Decree currently governing the Union’s affairs. The Consent Decree has been in place since March 1989, following the Government’s filing of a landmark civil lawsuit under the Racketeer Influenced and Corrupt Organizations (“RICO”) Act designed to rid the Union of the corrupting influence of organized crime and put in place an electoral system that would foster democracy within the Union.
Manhattan U.S. Attorney Preet Bharara said: “The proposed settlement agreement seeks to strike the appropriate balance, recognizing the significant progress that has been made in ridding the International Brotherhood of Teamsters of the influence of organized crime and corruption, while providing an avenue for the Union to demonstrate its ability to preserve these gains through its own independent disciplinary and electoral systems. We recognize that, although substantially diminished, the threat posed to the IBT by organized crime and other corrupting influences persists, and the proposed agreement provides for a continuing monitoring role for the Government. We should also recognize, however, that reaching this juncture is a great tribute to the success of the Consent Decree in forging meaningful and positive change in the IBT.”
Among other features, the Consent Decree permanently enjoined all IBT members, officers, employees, and agents from committing acts of racketeering activity or knowingly associating with various organized crime groups or persons otherwise enjoined from participating in union affairs; provided for “one-member, one-vote” direct elections of IBT International Officers, subject to independent oversight; and established a Court-appointed, three-member Independent Review Board (“IRB”) to investigate and prosecute wrongdoing and oversee the IBT’s implementation of disciplinary or trusteeship charges.
The proposed settlement agreement was submitted today to United States District Chief Judge Loretta A. Preska for her approval. The terms of the proposed agreement seek to ensure that the progress made under the Consent Decree’s disciplinary and electoral reform provisions will be preserved while reducing the Government’s oversight role over time. Among other things, the proposed agreement retains the permanent injunction feature of the Consent Decree, enjoining IBT members, officers, employees and agents from engaging in racketeering or knowingly associating with organized crime groups or persons otherwise banned from Union affairs. With regard to its elections, the Union also has agreed to permanently retain the structural reforms of the Consent Decree, including, without limitation, the one-Teamster, one vote direct elections of IBT International Officers, and to the appointment of an independent election supervisor to oversee those elections. During these elections, the Union will fund the direct mailing of candidate campaign materials to Union members. Further, with regard to the IBT’s disciplinary system, the IRB will be phased out during a five-year transition period, and the Union will establish its own independent disciplinary enforcement mechanism through the appointment of disciplinary officers approved by the Government. Following the transition period, the Government may apply to the Court for further equitable relief upon showing that either the IBT’s electoral or disciplinary systems are functioning ineffectively or that there exists systemic corruption or organized crime influence in the Union. Under the terms of the proposed agreement, the Court retains jurisdiction to ensure that the agreement is enforced.
The proposed agreement has been filed with the Court today as part of the parties’ joint motion requesting that the Court approve the agreement, following a three-week comment period and judicial hearing.
Any written comments that interested persons wish to provide for the Court’s consideration must be received no later than 5:00 p.m. on February 4, 2015. Comments may be sent via email to [email protected], or by first class mail or overnight delivery to:
United States Attorney’s Office, Southern District of New York
AUSA Tara M. La Morte
86 Chambers Street, 3d Floor
New York, New York 10007
A hearing in this matter is scheduled for February 11, 2015, at 11:00 a.m., at 500 Pearl Street, Courtroom 12A, New York, New York 10007.
The proposed settlement agreement and the parties’ joint motion requesting that the Court approve the agreement can be found on the website of the United States Attorney for the Southern District of New York at http://www.justice.gov/usao/nys, and via a link from www.teamster.org.
Assistant United States Attorneys Neil Corwin, Tara M. La Morte, and Jaimie Nawaday are currently in charge of the case.
U.S. v. Teamsters Settlement Agreement
U.S. v. IBT Order regarding comments and hearing
Luzerne County Woman Pleads Guilty to Participating in Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Plymouth woman pleaded guilty today before Senior U.S. District Court Judge James M. Munley to conspiracy to distribute heroin in the Luzerne County area.
According to United States Attorney Peter Smith, the defendant, Megan Fox, age 28, admitted to participating in the drug trafficking conspiracy responsible for distributing large quantities of heroin during February through October 2014.
Fox was indicted along with five other defendants in October 2014, as a result of an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Kingston Police, Plymouth Police, Wilkes-Barre Police, Edwardsville Police, and the Luzerne County District Attorney’s Office.
Judge Munley scheduled sentencing for April 21, 2015. Fox faces up to 20 years in prison and a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa and Luzerne County Assistant District Attorney Jill Matthews who is assigned to this case as a Special Assistant U.S. Attorney.
Lincoln Parish Man Sentenced to 57 Months in Prison for Possession with Intent to Distribute MethRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Ruston man was sentenced to 57 months in prison for bringing methamphetamine into Louisiana for sale.
Gale Allen Schoonover, 55, of Ruston, La., was sentenced by U.S. District Judge Elizabeth E. Foote for one count of possession with intent to distribute methamphetamine. He was also sentenced to three years of supervised release. According to evidence presented at the August 19, 2014 guilty plea, Schoonover was arrested on March 14, 2014 after returning from Dallas, where he had obtained methamphetamine that he intended to sell in Lincoln Parish. Law enforcement agents received information that the defendant was transporting methamphetamine for sale and monitored his whereabouts until the arrest. Schoonover possessed a total of 105.62 grams of pure methamphetamine as well as 1.735 kilograms of marijuana.
The DEA and the Lincoln Parish Narcotics Enforcement Team conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Leader of Major Heroin Trafficking Ring Operating Out of Albuquerque’s Northeast Heights Sentenced to Twenty Years in Federal PrisonRead the Press Release
Bustamante-Conchas Also Ordered to Pay $100,000.00 Fine
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Field Division announced that Miguel Bustamante-Conchas, 39, was sentenced late yesterday afternoon to 20 years in federal prison for his heroin trafficking conviction. He also was ordered to pay a $100,000.00 fine. Bustamante-Conchas is a legal permanent resident from Mexico who resides in Albuquerque, N.M.; he will be deported after completing his prison sentence.
“New Mexico’s opioid addiction and overdose death rates have been at or near the top of the national scale for years,” said U.S. Attorney Damon P. Martinez. “Under our recently announced HOPE Initiative, we will take on this epidemic by focusing our investigative and prosecutorial resources on significant heroin traffickers while supporting expanded treatment options for those struggling with the disease of addiction.”
“The sentencing of Miguel Bustamante-Conchas exemplifies DEA’s relentless commitment to keep dangerous drugs and those who traffic them off of our streets. DEA continues to focus on the drug trafficking organizations that spread this kind of poison in central and northern New Mexico,” said DEA Special Agent in Charge Will Glaspy. “Let this not only be an example, but also a warning to those who think they can go unnoticed. One day we will knock on your door and you too will face the same fate as Bustamante-Conchas.”
Bustamante-Conchas was one of seven men arrested in June 2013 on federal narcotics trafficking charges as a result of a 15-month multi-agency investigation targeting heroin traffickers operating out of Albuquerque’s Northeast Heights, an area that has experienced a growing, wide-spread heroin abuse problem among teens and young adults in recent years. More than 25 pounds of heroin were seized during the course of the investigation.
Two indictments were filed as a result of the investigation. Bustamante-Conchas and four other men were charged in one indictment while two others were charged in a second indictment. The other six defendants entered guilty pleas to heroin trafficking charges while Bustamante-Conchas elected to proceed to trial on a three-count superseding indictment charging him with (1) conspiracy to distribute large quantities of heroin in Bernalillo County, N.M., from Oct. 2012 to June 2013; (2) aiding and abetting the possession of heroin with intent to distribute; and (3) aiding and abetting the use of a firearm in relation to a drug trafficking crime.
Trial of the case began on July 30, 2014. On Aug. 4, 2014, the court dismissed the firearms charge at the conclusion of the United States’ case and submitted the two heroin trafficking charges to the jury. The jury returned a verdict of guilty on the two heroin trafficking charges on Aug. 6, 2014.
The evidence at trial established that Bustamante-Conchas played a leadership role in a major heroin trafficking organization by managing the acquisition, storage and distribution of kilograms of heroin and overseeing the collection of cash proceeds from the sale of heroin. Evidence of Bustamante-Conchas role in the drug trafficking organization was secured from wiretaps on telephones used by his subordinates, evidence seized during a law enforcement operation on June 14, 2013, and evidence seized on June 19, 2013. Evidence obtained on June 14, 2013, included three pounds of heroin, drug ledgers, numerous cellphones and narcotics paraphernalia, which were seized at the residences maintained as stash houses by Bustamante-Conchas and his co-conspirators. An additional 22 pounds of heroin were seized on June 19, 2013 from another of the organization’s stash houses.
Three of Bustamante-Conchas’ four co-defendants pled guilty to participating in a heroin trafficking conspiracy and are serving federal prison sentences. Baltazar Granados, 38, pled guilty on June 17, 2014, and was sentenced to 80 months in prison on Nov. 20, 2014. Ramon Cabrales-Guerra, 23, pled guilty on June 23, 2014, and was sentenced to 46 months in prison on Oct. 10, 2014. Angel Miramontes-Cruz, 23, pled guilty on May 29, 2014, and was sentenced on Oct. 10, 2014, to 24 months in federal prison. All three men are Mexican nationals illegally present in the United States and will be deported after completing their prison sentences.
The fourth co-defendant, Ruben Garcia Miranda, 53, an Albuquerque resident, pled guilty on June 12, 2014, to using a communications device to facilitate a drug trafficking crime. He is scheduled to be sentenced on Jan. 22, 2015.
Joel Nunez-Haros, 43, and Pablo Arturo Felix-Sicairos, 21, also were arrested in June 2013, and charged in a separate indictment with possession of heroin with intent to distribute. Both men pled guilty to the indictment in late June 2014. Nunez-Haros was sentenced to 57 months in prison on Nov. 20, 2014, and Felix-Sicairos was sentenced to 44 months in prison on Oct. 10, 2014. Both men are Mexican nationals illegally present in the United States and will be deported after completing their prison sentences.
These cases were investigated by the Albuquerque office of the DEA, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office and were prosecuted by Assistant U.S. Attorneys Sean J. Sullivan, Nicholas J. Ganjei and Paul Mysliwiec.
The investigation resulting in these cases, which was code-named “Balloon Fiesta” in reference to the multi-colored balloons that heroin often is packaged in for retail distribution, was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting major heroin traffickers like Bustamante-Conchas for investigation and prosecution is a priority of the HOPE Initiative.
Leader of Baltimore Area Drug Trafficking Organization Sentenced to 14 Years in PrisonRead the Press Release
Obtained Kilograms of Cocaine from Arizona and Texas
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Shawn Malone, age 32, of Baltimore, today to 14 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Malone’s plea agreement, beginning in at least 2010 and continuing until June of 2013, Malone, conspired with Travis Gaines, Antoine Bolden, Karl McDonald and others, (collectively the Malone Drug Trafficking Organization (DTO)) to obtain cocaine from sources of supply in Arizona and Texas and distribute the cocaine in the Baltimore area. Malone would have couriers flown or driven to the border to take possession of the cocaine and the couriers would either drive or take commercial buses back to Baltimore with the cocaine. Once in Baltimore, the cocaine would be distributed to wholesale customers, some of whom would convert the cocaine to crack cocaine for street level distribution. After the cocaine was sold, Malone used some of the same couriers to transport the money to pay for the drugs back to the sources of supply.During the Spring of 2013, the DEA intercepted telephone calls and text messages of members of the Malone DTO. During the investigation, law enforcement was able to interdict, in Frederick, Maryland, approximately 1.5 kilograms of cocaine from a courier as she traveled from Arizona to Baltimore by commercial bus. On June 6, 2013, law enforcement executed search warrants at locations in the Baltimore metropolitan area and recovered approximately 250 grams of cocaine, as well as packaged crack cocaine, from the main stash house of the organization.
Malone and other members of this DTO used the proceeds from the cocaine trafficking activities to purchase houses in the Baltimore area. Malone used additional drug proceeds to rehabilitate these houses, and either rent and/or sell the houses in an effort to launder the drug proceeds.
As a result of his participation in the drug conspiracy Malone was responsible for the distribution of between 50 and 150 kilograms of cocaine.Co-conspirators, Travis Gaines, age 34, Karl McDonald, age 30, and Antoine Bolden, age 37, all of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 130 months, 151 months and 84 months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation and thanked Assistant U.S. Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Las Vegas Lawyer/Former U.S. Attorney Sentenced to Prison for Failing to File Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas lawyer who served as the U.S. Attorney for Nevada during the 1970’s, was sentenced today to 18 months in prison, one year of supervised release, and ordered to pay approximately $290,000 in restitution to the IRS for failing to file individual and corporate income tax returns from 2006 to 2010, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Lawrence J. Semenza, II, 72, pleaded guilty in August 2014 to three misdemeanor counts of willful failure to file a tax return, and was sentenced by U.S. District Judge James C. Mahan. Semenza must report to federal prison by April 17, 2015.
“The consequences of failing to file your tax returns can be very serious,” said U.S. Attorney Bogden. “At the end of the day, you are better off filing your return than facing penalties such as wage garnishments, asset seizures, prosecution, and, as in this case, prison time.”
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Eric Johnson and Nicholas D. Dickinson.
“It is especially egregious that a former federal prosecutor should try to skirt his own tax obligations,” said John Collins, Special Agent in Charge of IRS Criminal Investigation for Nevada. “American taxpayers have a right to expect that everyone will be held to the same standard of tax compliance. No one, regardless of current or former position, is above the law.”
According to the guilty plea agreement, Semenza operated his law practice in Las Vegas as a subchapter C personal service corporation. For the years 2006 through 2010, Semenza individually had taxable income of approximately $655,000, and the corporation had taxable income of approximately $345,000, but Semenza failed to file individual or corporate income tax returns for those years, and failed to pay the tax due and owing to the IRS, totaling about $290,000.Jacksonville Would-Be Terrorist Sentenced to 20 YearsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S Attorney A. Lee Bentley III for the Middle District of Florida and Special Agent in Charge Michelle S. Klimt of the FBI Jacksonville Division announced that Shelton Thomas Bell, 21, of Jacksonville, Florida, was sentenced to 20 years in federal prison for conspiring and attempting to provide material support to terrorists. U.S. District Judge Timothy J. Corrigan also ordered Bell to a lifetime of supervision following his release from prison. Bell pleaded guilty on March 19, 2014.
"We must be vigilant in investigating and prosecuting United States citizens who seek to travel overseas to assist terrorists," said U.S. Attorney Bentley. "Not only do these individuals present an obvious threat abroad, they could also return to the United States after being radicalized and trained in the use of firearms, explosives, and weapons of mass destruction. Cases such as these remain a top priority for the United States Attorney’s Office and the Department of Justice."
"With our local, state and federal agencies working together through the JTTF, we’re able to detect, deter and defend our nation from these types of threats," said Special Agent in Charge Klimt. "We’re strongest working together and this is a perfect example of success through collaboration."
According to court documents, beginning in May 2012 and continuing through at least July 18, 2012, Bell conspired to train and prepare as a combatant for overseas violent jihad, then travel from Jacksonville to the Middle East for the ultimate purpose of providing the skills to terrorists, including members of Ansar al-Sharia in Yemen. Once overseas, the plan included receiving further training and deadly weapons from Ansar al-Sharia, and then engaging in violent jihad against, and killing, others in Yemen and elsewhere.
In May 2012, Bell recruited a juvenile for the purpose of engaging in violent jihad and inspired him with the teachings of an Al Qaida spokesperson, Anwar al-Awlaki. Bell suggested traveling to Yemen to fight because of al-Awlaki's teachings - that all young people should travel to Yemen to “take up the fight.” Bell and the juvenile subsequently agreed to travel to Israel and then make Hajj. As part of the plan, the conspirators told others, including their parents, that they were traveling overseas to make Hajj, to study, and to get an education. By July 2012, the conspirators began taking actions to train for their unlawful activities by conducting mental training that included watching al-Awlaki videos and looking at images of dead Muslims.
Another part of the training took place on July 4, 2012, when Bell conducted a late-night “jihadi training mission” that involved the destruction of religious statues in a multi-denominational cemetery located in Jacksonville. In preparation for the mission, he dressed in all black clothing, wore tactical gloves, a mask, and wrapped his shoes in black duct tape to avoid leaving footprints. Bell brought a loaded 9 mm pistol with him on the mission to use “in case any kuffar want to cause any trouble.” Other training sessions conducted by Bell included a homemade firing range and impromptu battlefield lessons intended for recording and uploading to the Internet, to be used in the recruitment of others in the “the actions of jihad.” At the conclusion of one training session, Bell placed an American flag on a machete, burned it, and commented that the flag was “burning to the ground by the mujahidin’s hands.” To recruit other youth to travel and join in armed conflict, Bell and the juvenile also planned to take footage of their participation in armed conflict in the Middle East, once they made it there and began fighting.
On Sep. 25, 2012, Bell and the juvenile left Jacksonville and flew to New York, Poland, and Tel Aviv, Israel, where they were detained by Israeli officials and deported to Poland. From there, Bell and the juvenile traveled to Jordan to stay with the juvenile's relatives. While in Jordan, Bell and the juvenile contacted another person to assist in their plan of joining up with Ansar al-Sharia. Bell and the juvenile also bought airline tickets to Oman, believing they would fly to Oman and walk across the border to Yemen and join the armed conflict there. During their overseas travel, Bell and the juvenile took steps to avoid detection by law enforcement.
Ultimately, Bell and the juvenile were deported from Jordan to the United States on Nov. 21, 2012.
This case was investigated by the FBI's Jacksonville Joint Terrorism Task Force (JTTF). The JTTF is a multi-agency task force comprised of full-time personnel from the FBI, U.S. Coast Guard Investigative Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the Jacksonville Sheriff's Office, Florida Highway Patrol, the Florida Department of Law Enforcement, and the Naval Criminal Investigative Service. It was prosecuted by Trial Attorney Mara M. Kohn from the Department of Justice National Security Division’s Counter Terrorism Section and Assistant U.S. Attorney Mac D. Heavener III.
Jacksonville Would-Be Terrorist Sentenced to 20 YearsRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Shelton Thomas Bell (21, Jacksonville) to 20 years in federal prison for conspiring and attempting to provide material support to terrorists. The Court also ordered him to serve a lifetime of supervision following his release from prison. Bell pleaded guilty on March 19, 2014.
According to court documents, beginning in May 2012 and continuing through at least July 18, 2012, Bell conspired to train and prepare as a combatant for overseas violent jihad, then travel from Jacksonville to the Middle East for the ultimate purpose of providing the skills to terrorists, including members of Ansar al-Sharia in Yemen. Once overseas, the plan included receiving further training and deadly weapons from Ansar al-Sharia, and then engaging in violent jihad against, and killing, others in Yemen and elsewhere.
In May 2012, Bell recruited a juvenile for the purpose of engaging in violent jihad and inspired him with the teachings of an Al Qaida spokesperson, Anwar al-Awlaki. Bell suggested traveling to Yemen to fight because of al-Awlaki's teachings - that all young people should travel to Yemen to “take up the fight.” Bell and the juvenile subsequently agreed to travel to Israel and then make Hajj. As part of the plan, the conspirators told others, including their parents, that they were traveling overseas to make Hajj, to study, and to get an education. By July 2012, the conspirators began taking actions to train for their unlawful activities by conducting mental training that included watching al-Awlaki videos and looking at images of dead Muslims.
Another part of the training took place on July 4, 2012, when Bell conducted a late-night “jihadi training mission” that involved the destruction of religious statues in a multi-denominational cemetery located in Jacksonville. In preparation for the mission, he dressed in all black clothing, wore tactical gloves, a mask, and wrapped his shoes in black duct tape to avoid leaving footprints. Bell brought a loaded 9 mm pistol with him on the mission to use “in case any kuffar want to cause any trouble.” Other training sessions conducted by Bell included a homemade firing range and impromptu battlefield lessons intended for recording and uploading to the Internet, to be used in the recruitment of others in the “the actions of jihad.” At the conclusion of one training session, Bell placed an American flag on a machete, burned it, and commented that the flag was “burning to the ground by the mujahidin’s hands.” To recruit other youth to travel and join in armed conflict, Bell and the juvenile also planned to take footage of their participation in armed conflict in the Middle East, once they made it there and began fighting.
On September 25, 2012, Bell and the juvenile left Jacksonville and flew to New York, Poland, and Tel Aviv, Israel, where they were detained by Israeli officials and deported to Poland. From there, Bell and the juvenile traveled to Jordan to stay with the juvenile's relatives. While in Jordan, Bell and the juvenile contacted another person to assist in their plan of joining up with Ansar al-Sharia. Bell and the juvenile also bought airline tickets to Oman, believing they would fly to Oman and walk across the border to Yemen and join the armed conflict there. During their overseas travel, Bell and the juvenile took steps to avoid detection by law enforcement.
Ultimately, Bell and the juvenile were deported from Jordan to the United States on November 21, 2012.
In commenting on this case, United States Attorney A. Lee Bentley, III, stated, “We must be vigilant in investigating and prosecuting United States citizens who seek to travel overseas to assist terrorists. Not only do these individuals present an obvious threat abroad, they could also return to the United States after being radicalized and trained in the use of firearms, explosives, and weapons of mass destruction. Cases such as these remain a top priority for the United States Attorney’s Office and the Department of Justice.”"With our local, state and federal agencies working together through the JTTF, we’re able to detect, deter and defend our nation from these types of threats,” said Michelle S. Klimt, Special Agent in Charge – FBI Jacksonville Division. “We’re strongest working together and this is a perfect example of success through collaboration."
This case was investigated by the FBI's Jacksonville Joint Terrorism Task Force (JTTF). The JTTF is a multi-agency task force comprised of full-time personnel from the FBI, U.S. Coast Guard Investigative Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the Jacksonville Sheriff's Office, Florida Highway Patrol, the Florida Department of Law Enforcement, and the Naval Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Mac D. Heavener, III and Trial Attorney Mara M. Kohn from the Department of Justice National Security Division’s Counter Terrorism Section.
Indiana, Pa., Woman Conspired to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Indiana, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
Tiffany N. White, 26, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2012 to March 8, 2013, White conspired with her co-defendants to possess and distribute 100 grams or more of heroin.
Judge Gibson scheduled sentencing for May 12, 2015, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of White.
Honduran National Sentenced for Unlawful Transfer of Identification DocumentRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CONCEPCION DIAZ, a/k/a “Conchi,” a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for the unlawful transfer of identification document.
U.S. District Judge Jane Triche Milazzo sentenced DIAZ to 8 months imprisonment followed by one year of supervised release, and a $100 special assessment.
According to court documents, on or about January 22, 2014, DIAZ transferred, without lawful authority, a means of identification of another person, to wit, a Social Security card, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Group of Five Admit their Roles in Large-Scale Stolen Identity Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – Five people involved in an extensive scheme to obtain millions of dollars through fraudulently obtained tax refund checks issued by the U.S. Treasury pleaded guilty today in Newark federal court, U.S. Attorney Paul J. Fishman announced.
Julio C. Concepcion 49, of Passaic, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to steal government funds and one count of theft of government funds. Concepcion also pleaded guilty to separate information charging him with one count of conspiracy to commit wire fraud in connection with his involvement in a separate mortgage fraud scheme.
Concepcion’s two sons, Angel Concepcion-Vasquez, 30, and Julio Concepcion-Vasquez, 32, and two other defendants, Jose Zapata, 67, and Romy Quezada, 24, all of Passaic, also pleaded guilty to one count each of conspiracy to steal government funds.
Concerning the Stolen Identity Refund Fraud (SIRF) scheme, according to documents filed in this case and statements made in court:
Members of the conspiracy, from at least October 2009 through May 2013, obtained the personal identifying information, including the names and Social Security numbers, of other individuals, including residents of Puerto Rico. Conspirators filed with the IRS false and fraudulent income tax returns using the stolen identity information, which generated income tax refund checks to which the members of the conspiracy were not entitled. The funds from these refund checks were then routinely transferred between bank accounts controlled by members of the conspiracy. The SIRF scheme resulted in more than $2.5 million in losses to the U.S. Treasury.
Julio C. Concepcion admitted to obtaining these fraudulent refund checks and recruiting others to open bank accounts and deposit the checks, sometimes providing them with false identification in order to do so. Angel Concepcion-Vasquez, Julio Concepcion-Vasquez, Quezada and Zapata each admitted to opening bank accounts into which these fraudulently obtained refund checks were deposited.
Concerning the mortgage fraud information, according to filed documents and statement made in court:
From January 2008 through March 2010, Concepcion conspired with others to commit wire fraud, specifically mortgage fraud. Once a conspirator purchased properties in New Jersey. Concepcion and others caused people to purchase the homes and receive mortgages for the homes either by using false identification documents or without the intent to live in the homes or pay off the mortgages.
Concepcion and others were able to cause parties to issue mortgages for the properties in reliance on fraudulent documents and material misrepresentations. The Federal Housing Administration (FHA) insured some of these mortgages.
As a result of these actions, the FHA and parties who approved the mortgages have lost more than $2.5 million.
The conspiracy to steal government funds charge is punishable by a maximum penalty of five years in prison. The theft of government funds charge is punishable by a maximum potential penalty of 10 years in prison. The conspiracy to commit wire fraud charge is punishable by a maximum penalty of 20 years in prison. All charges are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense. Sentencings for all defendants are scheduled for May 7, 2015.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the U.S. Secret Service, under the direction of Assistant Special Agent in Charge Carl Agnelli; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigations leading to today’s pleas.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the Economic Crimes Unit and Cari Fais and Melissa Wangenheim of the General Crimes Unit.
14-015
Defense counsel:
Julio Cesar Concepcion: Genesis Peduto Esq. North Bergen, N.J.
Julio Concepcion-Vasquez: David Fromkin Esq., Wallington, N.J.
Angel Concepcion-Vasquez: Anthony Fusco Jr. Esq., Passaic, N.J.
Romy Quezada: Stephen Dratch Esq., Livingston, N.J.
Jose Zapata: Elizabeth Smith Esq., Mendham, N.J.Four Indicted on Charges of Violating Federal Drug, Fraud and Money Laundering LawsRead the Press Release
PITTSBURGH - Three residents of India and one resident of Morocco have been charged in a second superseding indictment by a federal grand jury in Pittsburgh on charges of violating federal prescription drug, narcotic, fraud and money laundering laws, United States Attorney David J. Hickton announced today.
The 24-count second superseding indictment named Javed Sunesra, 37, Zuned Sunesra, 35, and Bismilla Sunesra, 60, all of Mumbai, India, and Samir Taslimant, 37, of Casablanca, Morocco.
According to the second superseding indictment, from November 2005 to April 2014, defendants Javed Sunesra, Zuned Sunesra, Bismilla Sunesra and Samir Taslimant, operated pharmacy websites based out of India called emedoutlet.com, shopeastwest.com, and superdrugsaver.com, amongst others. From these websites, the Sunesras, aided and abetted by others, including Taslimant, who ran an affiliate website called iwantmeds.com, conspired to distribute unapproved and misbranded prescription drugs into the United States without a prescription. These prescription drugs included “standard” prescription drugs such as Viagra and Accutane, as well as Schedule IV and V controlled substances such as Soma and Darvocet.
In addition, the Sunesras, acting together with co-defendant Taimur Khan, who has already pled guilty and is due to be sentenced, deceived customers of emedoutlet.com by claiming that the drugs sold were FDA approved and were similar to drugs sold in the United States when in fact that was not true. Further, Khan and the Sunesras set up a fake “gift card” company called “mygiftcard.biz” to process credit cards for customers. The purpose of this fake company was to convince credit card processors that emedoutlet.com and its affiliate websites were selling gift cards instead of illegal medications. Defendants Samir Taslimant, Javed Sunesra, and Zuned Sunesra are alleged to have laundered the money by funneling the proceeds of these drug sales from the United States to Canada, and then on to bank accounts in the Republic of Mauritius, Dubai, and Morocco.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or twice the pecuniary gain of the defendants, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Defendant Zuned Sunesra is currently being held without bond, while the government is commencing extradition proceedings against the remaining defendants.
Assistant United States Attorneys Eric S. Rosen and Conor Lamb are prosecuting this case on behalf of the government.
The Food and Drug Administration and the Internal Revenue Service – Criminal Investigation conducted the investigation leading to the second superseding indictment in this case. A second superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Washington County Police Chief Resentenced to 7 Years and 3 MonthsRead the Press Release
PITTSBURGH- A former resident of Washington, Pa., has been sentenced in federal court to 87 months imprisonment, 3 years supervised release and no fine or restitution on his conviction of Hobbs Act violations, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Donald Abraham Solomon, 59.
According to information presented to the court, Solomon was the Chief of Police of East Washington Borough, Pa. He received payments from a purported drug dealer, who was an undercover FBI agent, to protect drug shipments and to purchase law enforcement restricted police equipment.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Solomon.
Former Philadelphia Traffic Court Judge Sentenced to 20 Month Prison TermRead the Press Release
PHILADELPHIA – Michael Lowry, 59, of Philadelphia, PA, was sentenced today to 20 months in prison for lying to a grand jury in connection with a ticket fixing scheme at the former Philadelphia Traffic Court. Lowry was a sitting traffic court judge at the time. In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered one year of supervised release and ordered Lowry to perform 100 hours of community service.
Lowry and co-defendants Robert Mulgrew and Thomasine Tynes were convicted at trial, on July 23, 2014, of committing perjury before a federal grand jury.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise Wolf and Anthony Wzorek.
Former Machesney Park Man Pleads Guilty to Concealment of Assets from A Bankruptcy TrusteeRead the Press Release
ROCKFORD — A former Machesney Park, Ill. man pleaded guilty today before U.S. District Judge Frederick J. Kapala to the concealment of assets from a Bankruptcy Trustee. ROBERT J. YONKEE, JR., 55, now of Lake Geneva, Wis., filed a Chapter 7 Bankruptcy Petition on Sept. 15, 2008, and by signing a Declaration verified his Petition, all his Schedules, and a Statement of Financial Affairs under penalty of perjury. According to the written plea agreement, from Sept. 15, 2008 through at least May 8, 2009, Yonkee fraudulently concealed property from the bankruptcy trustee, including his ownership interest in: a business that sold auto parts, automobiles, and motorcycles; the United States Super Truck Racing Series; Bobby Yonkee Racing; as well as other inventory, merchandise, capital, vehicles, and motorcycles.
Yonkee faces a maximum penalty of 5 years’ imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Yonkee is set for April 2, 2015, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-In-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Former Honolulu Police Officer Sentenced to Prison for Extortion Scheme Against Local BusinessRead the Press Release
HONOLULU – United States District Judge Derrick K. Watson today sentenced Roddy Takao Tsunezumi, age 38, a former Honolulu Police Department (HPD) officer, to 33 months in prison. Tsunezumi pled guilty in July 2014 to interfering with commerce by threats in an extortion scheme aimed at a local Honolulu business.
Florence T. Nakakuni, U.S. Attorney for the District of Hawaii, said that according to information produced to the court, Tsunezumi joined with codefendant Jeremy Javillo to extort $15,000 from a local Honolulu business by attempting to convince the owners that they would be kidnapped and/or robbed if they did not hire a protection business offered by Javillo. The owners of the business had reported an apparent legitimate threat they received to Tsunezuni in his role as an HPD officer. Instead of properly investigating or referring the threat through normal police channels, Tsunezumi arranged for one of the owners to meet with his associate, Javillo, who Tsunezumi told them could arrange protection for them. In order to coerce the owners to employ this protection service, a series of threatening text messages were then sent anonymously to the business owners.
Javillo, who also pled guilty, is expected to be sentenced tomorrow by Judge Watson.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Former Buffalo Police Officer Sentenced for Operating A Large Scale Marijuana Grow OperationRead 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 Jorge Melendez, 44, of Buffalo, NY, who was convicted of conspiracy to manufacture more than 100 marijuana plants, was sentenced to 60 months in prison by Chief U.S. District Judge William Skretny. The defendant was also ordered to pay a money judgement totalling $300,000, and forfeit a Suburban vehicle, a Harley Davidson motorcycle, a 36 foot speed boat, and seven firearms.
“For all those who take an oath to uphold the law, there is nothing more egregious than to flout that sacred promise and become a criminal,” said U.S. Attorney Hochul. “This defendant – while wearing the uniform of a police officer – served as a drug dealer for two years. The defendant’s actions have now cost him his liberty and property. They have not, however, reduced the high regard we have for those officers who continue to perform an outstanding job keeping all of us safe.”
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that on May 31, 2012, Melendez, along with co-defendants Jason Elardo and Robert Osika, were arrested after a long term investigation into a large scale marijuana grow operation at three locations. Specifically, Melendez and Elardo maintained a marijuana grow operation at a warehouse located at 2157 South Park Ave. in Buffalo. During the course of an investigation into the cultivation and distribution of marijuana, law enforcement officers installed hidden surveillance equipment on the second floor of the South Park Ave. warehouse where a grow operation was located. A review of surveillance video showed Melendez and Elardo tending to over 100 marijuana plants.
Prior to installing cameras inside the warehouse, officers monitored the outside of the building, also using surveillance cameras. Melendez was observed arriving in a Buffalo Police patrol car, while on duty, and entering and exiting the location. The defendant worked in the Buffalo Police Department's "D" District, however the warehouse is located in the "A" District.
The outside surveillance cameras also observed Elardo entering the warehouse on a daily basis to tend to the marijuana grow operation. In addition, officers obtained credit card information indicating that Elardo purchased equipment used to sustain an indoor, hydroponic marijuana grow operation. The equipment included a dehumidifier and filters.
At one point during the investigation, officers observed a police badge and credentials belonging to Melendez inside the warehouse. Melendez claimed to have previously lost the badge and identification.
On May 31, 2012, two additional locations were found to contain grow operations. A warehouse located at 1372 Clinton Street in Buffalo and a residence located at 76 West Woodside, both owned by Jason and third co-defendant Gale Elardo, were found to contain a marijuana grow operation. The residence also was found to contain marijuana packaged for sale and two firearms.
Defendants Osika and Gale Elardo have been convicted and are awaiting sentenced. Jason Elardo is deceased.
The sentencing is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Michael Cerretto, the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department under the direction of Commission Daniel Derenda.
Federal Grand Jury Indicts Providence Resident on 26 Counts of Trafficking Heroin and Crack CocaineRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence returned a twenty-six count indictment today charging Robert L. Wilkins, 23, of Providence, with twelve counts of distribution of heroin, twelve counts of distribution of cocaine base (crack cocaine), and one count each of conspiracy to distribute cocaine base and conspiracy to distribute heroin, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
Wilkins was arrested by members of the FBI’s Safe Streets Violent Gang Task Force and Providence Police on January 8, 2014, following a high-speed car chase and brief foot chase in Providence. Wilkins was allegedly a passenger in a vehicle that allegedly rammed a federal agent’s vehicle in an effort to flee law enforcement. The driver of the vehicle is being sought.
According to court documents and information presented to the court, since July 2014, the FBI Safe Streets Task Force has been investigating the alleged drug trafficking activities of Wilkins and his co-conspirators. It is alleged that twelve controlled purchases of heroin and twelve controlled purchases of crack cocaine were made from the defendant while he was under the surveillance of law enforcement.
According to court documents, the twelve alleged controlled purchases of crack cocaine from Wilkins ranged from approximately .6 grams to 1.5 grams and totaled about 11.5 grams. The twelve alleged controlled purchases of heroin from Wilkins ranged from .3 grams to 1.6 grams and totaled approximately 12.2 grams.
The investigation is continuing.
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.
Wilkins has been detained in federal custody since his arrest on January 8, 2014. He was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond following an initial appearance in federal court on a criminal complaint charging him with 12 counts of distribution of cocaine and 12 counts of distribution of heroin.
Conspiracy to distribute heroin, conspiracy to distribute cocaine base, distribution of heroin and distribution of cocaine base are each punishable by statutory penalties of up to 20 years imprisonment; $1,000,000 fine; and supervised release up to life with a mandatory minimum term of 3 years.
The case is being prosecuted by Assistant U.S. Attorneys Ly T. Chin and Paul F. Daly, Jr.
###
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]Father and Son Pharmacists Sentenced on Drug ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced R. Wayne Murphy, age 63, and J. Kevin Murphy, age 36, father and son pharmacists from Boston, Georgia, were today sentenced by the Honorable Hugh Lawson, United States District Judge in Valdosta, Georgia. Wayne Murphy was sentenced to 36 months imprisonment and ordered to pay a $10,000 fine for introducing adulterated and misbranded drugs into interstate commerce. Kevin Murphy was sentenced to serve 18 months in prison for possession with intent to distribute hydrocodone. They also agreed to forfeit $403,496.63 in illegal proceeds.The investigation in this case revealed two criminal schemes had taken place at Boston Pharmacy in Boston, Georgia, where the Murphys were pharmacists. In the first scheme, Wayne Murphy obtained prescription drugs such as Advair, Crestor and Plavix in Costa Rica, smuggled them into the United States, repackaged them in Boston Pharmacy bottles with preexisting labels, and sold them to his customers for a profit.
“As a pharmacist, Wayne Murphy occupied a unique position of trust in his community,” said U.S. Attorney Michael Moore. “Instead of honoring that trust, Wayne Murphy defrauded his customers and put them at risk for simple gain. He will now pay the price for that choice.”
In the second scheme, Kevin Murphy legally purchased large quantities of controlled substances, including hydrocodone and Xanax, from wholesale drug companies and then sold them illegally to drug dealers at a steep profit. From May through November 2009, Kevin Murphy admitted the amount of illegal drugs attributable to him was 57,393 hydrocodone pills and 4,000 Xanax pills.
“Instead of providing drugs to people with prescriptions, Kevin Murphy sold them to a drug dealer for resale on the streets,” said U.S. Attorney Michael Moore. “If you sell drugs illegally in the Middle District of Georgia, wearing a lab coat will not save you from justice.”
In being sentenced to prison, the father and son join two other individuals who previously pled guilty to felonies arising from the criminal conduct at Boston Pharmacy. On June 10, 2014, Arnolfo Capistran pled guilty to possession with intent to distribute Xanax as his role in Kevin Murphy’s scheme to resell controlled substances. Karen Dunlap, another former pharmacist at Boston Pharmacy, pled guilty to misprision of a felony on May 5, 2014.
“Due to the diligence of the U.S. Attorney’s Office, a complicated case involving multiple local, state and federal agencies has been brought to fruition,” said C. Richard Allen, Director of the Georgia Drugs and Narcotics Agency. “These convictions should send a message across both Georgia and Florida that just because you have a pharmacy license, you do not have the right to unlawfully sell prescription drugs of any kind.”
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation, the Georgia Drugs and Narcotics Agency, the Thomas County Narcotics and Vice Division, and the U.S. Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-621-2603.
Ellington Man Admits Stealing Firearm, Selling It to Heroin DealerRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUSTIN ASHLINE, 24, of Ellington, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, in late April or early May 2014, ASHLINE stole a Ruger .357 caliber handgun from his employer’s truck, traveled to Hartford and sold the gun to his heroin dealer in exchange for approximately 20 baggies of heroin and between $70 and $100 in cash. On May 23, 2014, law enforcement officers located and seized the handgun when they executed a search warrant at the Hartford residence of the heroin dealer.
ASHLINE has been detained in federal custody since his arrest on June 20, 2014.
ASHLINE has four prior felony convictions, including one for sale of narcotics and one for first degree larceny. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill scheduled sentencing for April 7, 2015, at which time ASHLINE faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Connecticut State Police and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]East Liverpool Woman Accused of $860,000 Bank FraudRead the Press Release
A federal grand jury returned a one-count indictment charging Mary Jo Schmidbauer, age 67, of East Liverpool, Ohio, with bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that from on or about August 14, 2007, through on or about September 9, 2013, Schmidbauer knowingly devised a scheme to obtain money under the custody and control of Home Savings and Loan, East Liverpool, Ohio, a financial institution insured by the FDIC, by means of materially false and fraudulent pretenses and representations.
It was part of the scheme and artifice that Mary Jo Schmidbauer, while employed by Home Savings and Loan, obtained permission from J.M. to manage money that J.M. deposited into accounts maintained by Home Savings and Loan. After retiring from her position, Schmidbauer obtained a power of attorney from J.M. to continue managing the accounts maintained by Home Savings and Loan, according to the indictment.
It was further part of the scheme and artifice that Schmidbauer withdrew cash from J.M.’s accounts for Schmidbauer’s own personal use. It was further part of the scheme and artifice that Schmidbauer transferred money from J.M.’s accounts into Schmidbauer’s accounts. Schmidbauer then withdrew that money for her own personal use, according to the indictment.
On or about August 14, 2007, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $3,000 in cash from J.M.’s account for Schmidbauer’s own personal use. Schmidbauer withdrew this money while employed by Home Savings and Loan and without J.M.’s consent.
On or about September 9, 2013, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $100,415.81 from J.M.’s accounts and transferred the money into Schmidbauer’s accounts for her own personal use. Schmidbauer transferred this money by misrepresenting the scope of her authority under J.M.’s power of attorney, according to the indictment.
As a result of the scheme and artifice described above, Schmidbauer obtained approximately $860,000 from J.M.’s accounts, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the St. Clair Township Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
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.
Disbarred Attorney Pleads Guilty to Bank FraudRead the Press Release
BOSTON – A Marblehead man pleaded guilty today to tax and bank fraud violations, primarily for recording fraudulent federal tax lien releases on properties he owned in Marblehead and Edgartown.
John C. McBride, 65, pleaded guilty before U.S. District Chief Judge Patti B. Saris to endeavoring to obstruct and impede the due administrations of the Internal Revenue laws and bank fraud. McBride, who was indicted in June 2013, is scheduled to be sentenced on April 28, 2015.
In early 2008, McBride, a now-disbarred criminal defense lawyer, recorded six fraudulent federal tax lien releases against his Marblehead home, in order to obtain a $288,000 loan secured by that property and deprive the IRS of its nearly $700,000 secured interest. McBride prepared the releases himself, without the knowledge or authorization of the IRS, and forged the signatures of IRS officials on them. In March 2008, McBride attempted, unsuccessfully, to record two similar fraudulent tax lien releases against a second home he owned in Edgartown, on Martha’s Vineyard. In 2011, McBride attempted to obtain a $387,000 reverse mortgage loan from Bank of America, which was to have been secured by his Edgartown property. In connection with that loan application, McBride falsely told the bank that there were no liens on the Edgartown property and that he was not then in bankruptcy. In fact, there were substantial liens on the property and McBride’s bankruptcy case, which he had filed in 2009, was still ongoing. In furtherance of his effort to obtain the bank loan, McBride prepared and recorded a fraudulent and unauthorized discharge of mortgage which purported to discharge a more than $700,000 existing mortgage on his Edgartown property. Bank of America discovered that the discharge was fraudulent before the loan closed, and no funds were disbursed to McBride.
The charge of bank fraud provides a sentence of no greater than 30 years in prison and three years of supervised release. The charge of endeavoring to obstruct and impede the due administrations of the Internal Revenue laws is three years in prison and one year of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Robert E. O’Malley, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Office of Investigations, New York Field Office (TIGTA); Vincent B. Lisi, Special Agent Charge of Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Daly City Woman Charged with Embezzling from Her EmployerRead the Press Release
SAN FRANCISCO –Catherine O’Shea was arraigned today on charges of embezzling approximately $240,000 from her employer to pay her personal credit card bills, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
A federal grand jury in San Francisco indicted Catherine O’Shea, 42, on January 6, 2015 on five counts of wire fraud, in violation of 18 U.S.C. § 1343. According to the Indictment, shortly after her employer, identified in the Indictment as C.J., gave her on line access to his business bank accounts to pay business-related expenses, O’Shea began using her employer’s business checking account and business line of credit to pay her personal credit card bills. To cover up her use of her employer’s money, O’Shea made false entries in the accounting records of the business, falsely claiming that the money had been used to pay for office rent or office supplies.
O’Shea made her initial appearance in federal court in San Francisco today before the Honorable Jacqueline Scott Corley, U.S. Magistrate Court Judge. She was released on a $50,000 unsecured bond and ordered to return on January 16, 2015, for a further detention hearing before the Honorable Jacqueline Scott Corley. O’Shea is also scheduled to appear on January 20, 2015, for an initial appearance before the Honorable Edward M. Chen, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud, O’Shea faces a maximum sentence of 20 years imprisonment for each violation of 18 U.S.C. § 1343, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Denise Marie Barton is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Costa Rican Charged with Facilitating the Illegal Shipping of Pills from India to the U.S.Read the Press Release
PITTSBURGH - A resident of Costa Rica has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, misbranded drugs, conspiracy to import controlled substances and smuggling, United States Attorney David J. Hickton announced today.
The 14-count indictment, which was returned on Jan. 13, named Daniel Fernando Sanchez, 39, of Costa Rica, as the sole defendant.
According to the indictment, Sanchez facilitated the Internet sale of misbranded drugs through reshippers in Pittsburgh, Pa., and Houston, Texas, who took delivery of Schedule IV nonnarcotics and non-controlled pain relief and erectile dysfunction drugs manufactured in India and, after repackaging, mailed them to thousands of customers throughout the United States. The customers were falsely led to believe that the drugs were “FDA approved,” that the erectile dysfunction drugs were genuine Viagra and Cialis, and that it was legitimate to distribute such drugs without prescriptions.
The law provides for a maximum total sentence of 20 years in prison on each of the mail fraud counts, three years in prison on each of the misbranded drug counts, five years in prison on the importation conspiracy count, and 20 years in prison on the smuggling count; as well as a $250,000 fine on each of the 14 counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service - Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cleveland Woman Indicted on Tax ChargesRead the Press Release
A federal grand jury returned a 10-count indictment charging Nakesha M. Taylor, age 35, of Cleveland, with making false, fictitious, or fraudulent claims with the Internal Revenue Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Taylor publicly offered her services as a tax preparer using the name “Kesha Tax Service.” In January and February 2010, she carried out a scheme to enrich herself by obtaining portions of fraudulently inflated tax refunds from tax returns Taylor prepared and filed from her home on behalf of individual taxpayers.
The indictment charges that Taylor inflated the refunds without the taxpayers’ knowledge, resulting in false claims totaling approximately $101,405.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Michael L. Collyer, following an investigation by the Internal Revenue Service, Criminal Investigation.
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.
Cincinnati-Area Man Arrested for Plot to Attack U.S. Government OfficersRead the Press Release
Assistant Attorney General for National Security John P. Carlin and Acting Special Agent in Charge John A. Barrios of the Cincinnati Division of the FBI announced today that the Joint Terrorism Task Force has arrested a Cincinnati-area man for a plot to attack the U.S. Capitol and kill government officials. Acting Special Agent in Charge Barrios noted that the public was not in danger during this investigation.
Christopher Lee Cornell, 20, of Green Township, Ohio, was charged in a criminal complaint with attempting to kill officers and employees of the United States and possession of a firearm in furtherance of a crime of violence.
Cornell was taken into custody today by the FBI Joint Terrorism Task Force (JTTF). The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, United States Immigrations and Customs Enforcement, United States Secret Service, West Chester Police Department and the Xenia Police Department.
The department would also like to acknowledge the Cincinnati Police Department, Colerain Police Department, Green Township Police Department and the U.S. Capitol Police for the cooperation and assistance they provided during this investigation.
The criminal complaint was filed today before a U.S. District Court Magistrate Judge. The public is reminded that criminal complaints contain only allegations of criminal misconduct and that defendants are presumed to be innocent unless proven guilty in a court of law.
Charleston Doctors and Medical Clinic Settle Allegations of FraudRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
Dr. Baron S. Nason, Robert T. Hamilton and Nason Medical
Settle Allegations of Fraud for $1,021,778.26
1 Submitted claims to Medicare and TRICARE for services that were provided by physician assistants, as though the services were provided by physicians. Both Medicare and TRICARE pay 85% of the physician fee schedules for services provided by mid-level providers like physician assistants; 2 Submitted claims to Medicare, Medicaid and TRICARE for testing that was not medically indicated including laboratory tests and potentially harmful CT scans; 3 Submitted claims for radiological services provided by a radiology technician who did not hold a current South Carolina license; and 4 Submitted claims for Tetanus Immunoglobulin when Tetanus Toxoid was given which is considerably less expensive;
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, settled claims of health care fraud with Nason Medical, out of Charleston, South Carolina, and two of its owners, Dr. Baron S. Nason and Robert T. Hamilton. The United States contended that Nason Medical submitted numerous false claims to Medicare, Medicaid and TRICARE. Specifically, the United States contended that Nason Medical:
The investigation began with the filing of whistleblower lawsuits, called qui tams, under the False Claims Act. The suits were filed by former employees of Nason Medical. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 18% of the funds of the settlement, or $183,920.08, plus they are entitled to their costs and attorney fees. One whistleblower claimed he was terminated for his actions taken to stop the fraudulent billing. If that is true, he is entitled to recover for his personal damages as well.
Mr. Nettles said, ?Health care fraud is a very high priority in this office. We have shifted our office resources by trebling the number of attorneys dedicated to address civil fraud cases. This case is particularly egregious because it involves allegations of profiting by exposing patients to unnecessary radiation in the CT scans.?
“Being a health care provider in Federal health care programs such as Medicare and Medicaid is a privilege, not a right. When health care providers order medically unnecessary procedures such as CT scans and submit other improper claims just to boost profits, they threaten both the health of their patients and the financial integrity of the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (OIG). “In an effort to ensure Nason Medical’s egregious billing history is not its future, the company agreed to a rigorous 5-year Corporate Integrity Agreement (CIA) we crafted to hold them accountable.”
Under this CIA, except for X-rays, Nason Medical also agreed to remove all its imaging equipment (including CT scans) and to provide medical services only appropriate for an Urgent Care Center. To that end, Nason Medical may not present or advertise itself out as providing any medical services for emergencies. Nason Medical is required to take down its Emergency signage and to stop advertising for emergency services. And, to ensure its compliance with federal healthcare programs and this CIA, Nason Medical, among other requirements, must engage the services of an independent monitor, chosen by OIG.
This case was investigated by agents from U.S. Health and Human Resources Office of Inspector General, Defense Criminal Investigative Service and the Federal Bureau Investigation.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].Casamero Lake Man Sentenced to Twelve Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Arthur L. Ganadonegro, 24, was sentenced this afternoon to 144 months in federal prison followed by a lifetime of supervised release for his aggravated child sexual abuse conviction. Ganadonegro also will be required to register as a sex offender.
Ganadonegro, an enrolled member of the Navajo Nation who resides in Casamero Lake, N.M., was arrested in March 2014, on a criminal complaint alleging that he sexually abused two Acoma Pueblo children when they were less than 12 years of age. Ganadonegro subsequently was charged in a four-count indictment with two counts of aggravated sexual abuse and two counts of abusive sexual contact. The indictment alleged that Ganadonegro sexually abused one of the victims between Sept. 2013 and Nov. 2013, on the Navajo Indian Reservation in McKinley County, N.M. It further alleged that Ganadonegro sexually abused the other victim between April 2008 and Dec. 2008, in a location within Acoma Pueblo in Cibola County, N.M.
On Oct. 7, 2014, Ganadonegro pled guilty to a felony information charging him with aggravated sexual abuse and admitted that between April 2008 and Dec. 2008, he engaged in a sexual act with a child under the age of 12 years. He also acknowledged committing the crime in Acoma Pueblo.This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Acoma Tribal Police Department.
The case was prosecuted by Assistant U.S. Attorney Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Beaumont, Texas, Attorney Sentenced to 12 Months in Prison for Tax ViolationRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Beaumont attorney was sentenced to 12 months in prison for failing to file his federal income tax return.
Craig J. Schexnaider, 63, of Beaumont, Texas, was sentenced by U.S. Magistrate Judge Zack Hawthorn for one count of failing to file an income tax return. He was also ordered to pay a $5,000 fine and serve one year of supervised release. He must also pay his tax liability of $98,805.57 to the U.S. Treasury. The court set a surrender date of February 11, 2015. According to evidence presented at the April 14, 2014 guilty plea, Schexnaider, an attorney licensed to practice law in the State of Texas, had gross income in calendar year 2008 of approximately $140,000, an amount in excess of the $3,500 minimum that triggered the requirement to file a federal income tax return. And, even after he requested a six-month extension for the filing of his 2008 federal individual income tax return and the Department of the Treasury approved his request and granted an extension until October 15, 2009, Schexnaider willfully failed to file his 2008 federal individual income return by October 15, 2009 as required by law.
The sentencing resulted from a Bill of Information that was filed in November 2013 charging Schexnaider with four counts of failing to file income tax returns when he had the following in gross income: $73,920 in 2007; $143,797 in 2008; $110,669 in 2009; and $43,740 in 2010. The government dismissed the remaining counts after sentencing.
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted this recusal case from the Eastern District of Texas.
Beaumont, Texas, Attorney Sentenced to 12 Months in Prison for Tax ViolationRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Beaumont attorney was sentenced to 12 months in prison for failing to file his federal income tax return.
Craig J. Schexnaider, 63, of Beaumont, Texas, was sentenced by U.S. Magistrate Judge Zack Hawthorn for one count of failing to file an income tax return. He was also ordered to pay a $5,000 fine and serve one year of supervised release. He must also pay his tax liability of $98,805.57 to the U.S. Treasury. The court set a surrender date of February 11, 2015. According to evidence presented at the April 14, 2014 guilty plea, Schexnaider, an attorney licensed to practice law in the State of Texas, had gross income in calendar year 2008 of approximately $140,000, an amount in excess of the $3,500 minimum that triggered the requirement to file a federal income tax return. And, even after he requested a six-month extension for the filing of his 2008 federal individual income tax return and the Department of the Treasury approved his request and granted an extension until October 15, 2009, Schexnaider willfully failed to file his 2008 federal individual income return by October 15, 2009 as required by law.
The sentencing resulted from a Bill of Information that was filed in November 2013 charging Schexnaider with four counts of failing to file income tax returns when he had the following in gross income: $73,920 in 2007; $143,797 in 2008; $110,669 in 2009; and $43,740 in 2010. The government dismissed the remaining counts after sentencing.
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted this recusal case from the Eastern District of Texas.Banker Sentenced to Prison for Making Material False StatementsRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced MATTHEW MARKS WESTBROOKS, 34, of Lexington, South Carolina, to serve ten months in federal prison, followed by a three-year term of supervised release. Judge Howard also ordered WESTBROOKS to pay restitution in the amount of $286,816, which was comprised of $70,493 in losses owed to Credit Suisse Securities, $80,543 in losses owed to Novastar Mortgage, and $135,780 in losses owed to M&T Bank.
The Criminal Information to which WESTBROOKS pled guilty charged that during times material to the case, WESTBROOKS was employed as a mortgage originator in the Eastern District of North Carolina. WESTBROOKS was separately, but simultaneously, engaged with others in the business of buying and selling properties for profit. In his work as a mortgage originator, WESTBROOKS received a commission whenever he successfully assisted a borrower to obtain a mortgage loan. WESTBROOKS did not receive a commission if the mortgage loan was not approved by the lender, and if the associated real estate transaction did not close.
The Criminal Information further charged that as a mortgage originator, WESTBROOKS was responsible for, among other things, typing borrower loan qualifications and other information into software used by his employer to electronically transmit loan application information from North Carolina to banks and lenders located in various other states. The Loan Application Software was also used to generate a physical or electronic copy of a Uniform Residential Loan Application, or Form 1003, containing borrower loan application information. Form 1003 required the borrower to identify, among other things, the source of any down-payment funds. Form 1003 contained a warning that “misrepresentation(s) of the information contained in this application may result in . . . criminal penalties, including, but not limited to, fines or imprisonment. . .”
The Criminal Information further alleged that as a mortgage originator, WESTBROOKS was required by his employer on each transaction to communicate with the borrower regarding the borrower’s obligations at closing, including the requirement to bring to the closing cash due from the borrower under the terms of the loan. Specifically, WESTBROOKS was required to obtain a copy of the HUD-1 Settlement Statement (“HUD-1”) from the closing attorney. The HUD-1 showed, among other things, the remaining balance of the “Borrower’s Obligation,” or cash due from the borrower at closing. WESTBROOKS was obligated to review the HUD-1s and confer with the borrower regarding the Borrower’s Obligation, as set forth in the HUD-1.
The banks and lenders did not permit the seller, the mortgage originator, or a third party to the transaction to “front” or pay the Borrower’s Obligation on behalf of the borrower. The borrower was obligated to bring to closing the amounts identified on the HUD-1 in satisfaction of the Borrower’s Obligation. Moreover, the HUD-1 contained a warning that providing false statements on the HUD-1 could result in a prosecution under Title 18, United States Code, Section 1001.
The Criminal Information specifically alleged that on or about February 14, 2007, WESTBROOKS falsified a loan application and HUD-1 Settlement statement which reflected that the borrower supplied down-payment funds when, in fact, the defendant had supplied the funds on behalf of the borrower.
At the sentencing hearing held today, WESTBROOKS’s attorneys argued, among other things, that WESTBROOKS should not receive a sentence of imprisonment because he has already been rehabilitated since the time of the offense. The Government noted that in his capacity as a mortgage originator, WESTBROOKS had made false statements on 13 loans across 9 different lenders, resulting in fraudulent mortgage proceeds exceeding $1.9 Million. The Government argued that prison, rather than probation, was appropriate to punish the defendant and deter others from engaging in similar conduct. Ultimately, the Court ordered the defendant to serve 10 months in prison.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Bank Robbery Defendants SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that DAVID McARTHUR KING, 24, of New Bern, THOMAS LEE CUTHBERTSON, JR., 24, of Vanceboro, and KHIRY TERREL JONES, 24, of Oriental, were each sentenced resulting from their earlier guilty pleas to bank robbery and firearms charges. The charges stem from the December 2, 2013 robbery of First Citizens Bank in Oriental, and the November 22, 2013 robbery of TD Bank in Easley, South Carolina.
On December 10, 2014, Senior U.S. District Judge Malcolm J. Howard sentenced KING TO 20 years in prison for his plea to two counts of armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and a single count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), all for his role in both robberies. On January 13, 2015, Judge Howard sentenced JONES to 8 years in prison for armed bank robbery, for his role as the getaway driver in the First Citizens robbery. On January 14, 2015, Judge Howard sentenced CUTHBERTSON to 17 years in prison for armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and a single count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), all for his role in both robberies. KING, JONES AND CUTHBERTSON were each ordered to be supervised for 5 years following release. KING was ordered to pay restitution in the amount of $61,539.50, which includes $3,000.00 from an additional robbery. JONES was ordered to pay $33,797.00 in restitution. CUTHBERTSON was ordered to pay $58,521.50 in restitution.
Investigation of this case was conducted by the Federal Bureau of Investigation, the New Bern Police Department, the Pamlico County Sheriff’s Office, the Oriental Police Department, and the North Carolina State Bureau of Investigation. Assistant United States Attorney John Bennett is prosecuting the case.
Auction House and Corp. President Plead Guilty to Wildlife Smuggling ConspiracyRead the Press Release
Auction House Agrees to Ban of Wildlife Sales and $1.5 Million Fine After Getting Caught Illegally Selling Endangered Black Rhino Horn, Elephant Ivory and Coral
Elite Estate Buyers Inc., dba Elite Decorative Arts, an auction house located in Boynton Beach, Florida, and the company’s President and owner, Christopher Hayes, pleaded guilty today in U.S. District Court in Miami to an illegal wildlife trafficking and smuggling conspiracy in which rhinoceros horns and objects made from rhino horn, elephant ivory, and coral, that were smuggled from the United States to China.
The guilty plea was announced today by U.S. Attorney Wifredo Ferrer for the Southern District of Florida, Assistant Attorney General John C. Cruden of the Environment and Natural Resources Division of the Department of Justice, and Director Dan Ashe of the U.S. Fish and Wildlife Service (FWS). The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS Office of Law Enforcement in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to a Texas resident involved in smuggling the horns to China. Two more rhino horns were purchased by an undercover FWS special agent. Another undercover agent with the FWS consigned two horns for auction.
As part of today’s plea agreement, Hayes and Elite have admitted to being part of a far reaching felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork.
“Not only did Hayes and his company illegally profit from obtaining rhinoceros horns and elephant ivory, but his greed and indifference contributed to the senseless slaughter of these animals,” said U.S. Attorney Wifredo A. Ferrer. “Trafficking in endangered and threatened species is illegal. Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife.”
“In pleading guilty this auction house is admitting that it played a key role in the supply chain of rhino horn and elephant ivory to wildlife smugglers and foreign markets. Auction houses and art galleries should be especially mindful of abiding by the laws designed to prevent the extinction of these species rather than devoting their expertise to help smugglers evade the law,” said Assistant Attorney General Cruden. “This prosecution is the result of a sophisticated and long-ranging investigation into every aspect of the illegal wildlife trade and we will hold all law violators fully accountable for their actions.”
“As this guilty plea demonstrates, ivory and rhino horn trafficking is not just a problem for other countries to solve. The ongoing slaughter of rhinos and elephants in Africa is driven by rising consumer demand and United States citizens like Christopher Hayes are intimately involved in illegal trade both here and abroad,” said FWS Director Dan Ashe. “We will continue to work with international law enforcement agencies and the international community to apprehend and bring to justice those whose callous disregard threatens the survival of the world’s wildlife heritage.”
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory, and coral an antiques dealer in Canadian who they then directed to a local shipper that agreed to mail the items in Canada without required permits. The defendants also admitted to selling raw rhinoceros horns, which they believed were from a black rhinoceros, to a person in Texas.
Hayes, 55, of Wellington, Florida, will be sentenced by Judge Daniel Hurley on date to be determined. The maximum penalty is five years in prison and a maximum fine of $500,000 for Elite and $250,000 for Hayes, or up to twice the gross gain. Elite has agreed to pay a $1.5 million fine and to no longer engage in the receipt, consignment, or sale, of endangered or protected wildlife or items containing endangered or protected wildlife, including items containing rhinoceros horn, elephant ivory and red coral.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the Department of Justice’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald and Trial Attorney Gary N. Donner of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Auction House and Company’s President Plead Guilty to Wildlife Smuggling ConspiracyRead the Press Release
Elite Estate Buyers Inc., doing business as Elite Decorative Arts, an auction house located in Boynton Beach, Florida, and the company’s president and owner, Christopher Hayes, pleaded guilty today in U.S. District Court in Miami to an illegal wildlife trafficking and smuggling conspiracy in which the auction house sold rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the United States to China.
The guilty plea was announced today by Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Director Dan Ashe of the U.S. Fish and Wildlife Service (FWS). The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS’ Office of Law Enforcement in coordination with the Department of Justice to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to a Texas resident involved in smuggling the horns to China. Two more rhino horns were purchased by an undercover FWS special agent. Another undercover agent with the FWS consigned two horns for auction.
As part of today’s plea agreement, Hayes and Elite have admitted to being part of a far reaching felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce, and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork.
“In pleading guilty this auction house is admitting that it played a key role in the supply chain of rhino horn and elephant ivory to wildlife smugglers and foreign markets,” said Assistant Attorney General Cruden. “Auction houses and art galleries should be especially mindful of abiding by the laws designed to prevent the extinction of these species rather than devoting their expertise to help smugglers evade the law. This prosecution is the result of a sophisticated and long-ranging investigation into every aspect of the illegal wildlife trade and we will hold all law violators fully accountable for their actions.”
“Not only did Hayes and his company illegally profit from obtaining rhinoceros horns and elephant ivory, but his greed and indifference contributed to the senseless slaughter of these animals,” said U.S. Attorney Ferrer. “Trafficking in endangered and threatened species is illegal. Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife.”
“As this guilty plea demonstrates, ivory and rhino horn trafficking is not just a problem for other countries to solve,” said Director Ashe. “The ongoing slaughter of rhinos and elephants in Africa is driven by rising consumer demand and United States citizens like Christopher Hayes are intimately involved in illegal trade both here and abroad. We will continue to work with international law enforcement agencies and the international community to apprehend and bring to justice those whose callous disregard threatens the survival of the world’s wildlife heritage.”
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory and coral to an antiques dealer in Canada, who they then directed to a local shipper that agreed to mail the items in Canada without required permits. The defendants also admitted to selling raw rhinoceros horns, which they believed were from a black rhinoceros, to a person in Texas.
Hayes, 55, of Wellington, Florida, will be sentenced by Judge Daniel T. K. Hurley on a date yet to be determined. The maximum penalty is five years in prison and a maximum fine of $500,000 for Elite and $250,000 for Hayes, or up to twice the gross gain. Elite has agreed to pay a $1.5 million fine and to no longer engage in the receipt, consignment or sale of endangered or protected wildlife, or items containing endangered or protected wildlife, including items containing rhinoceros horn, elephant ivory and red coral.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the Environment and Natural Resources Division’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald for the Southern District of Florida and Trial Attorney Gary N. Donner of the Environmental Crimes Section.
Attorney General Holder Announces Updates to Justice Department Media GuidelinesRead the Press Release
WASHINGTON –Attorney General Eric Holder announced today expanded revisions to the Justice Department’s policy regarding obtaining information from, or records of, members of the news media.
The updated policy was announced via a memo by Attorney General Holder to all Justice Department employees.
“These revised guidelines strike an appropriate balance between law enforcement’s need to protect the American people, and the news media’s role in ensuring the free flow of information,” Attorney General Holder said. “This updated policy is in part the result of the good-faith dialogue the department has engaged in with news industry representatives over the last several months. These discussions have been very constructive and I am grateful to the members of the media who have worked with us throughout this process.”
Attorney General Holder first ordered a review of the department’s media guidelines in 2013. He then announced initial revisions to those guidelines in February of last year. The latest revisions arose following comments from federal prosecutors and other interested parties, including news media representatives. These meetings with news media representatives included the inaugural convening of the Attorney General’s News Media Dialogue Group in May 2014.
Among the new revisions announced today, the Attorney General has directed that the guidelines eliminate the use of the word “ordinary” when describing newsgathering activities affected by the policy. The revisions also serve to expand high-level review by the Attorney General for the use of certain law enforcement tools, such as subpoenas and applications for warrants, where the information sought from a member of the news media relates to newsgathering activities.
The updates announced today will revise existing department regulations, and the U.S. Attorney’s Manual will be updated to reflect the changes and provide further guidance to prosecutors as well.
A copy of the Attorney General’s memorandum accompanying the revised guidelines is attached.