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23 February 2015
650 Attendees Registered for Statewide Anti-Human Trafficking ConferenceRead the Press Release
On February 23, 2015, James L. Santelle, United States Attorney for the Eastern District of Wisconsin announced that more than 650 people have registered for “Not for Sale”: Wisconsin’s Response to Human Trafficking conference that will take place February 24-25, 2015, at the Crowne Plaza Hotel in Milwaukee, WI. Attendees include representatives from law enforcement, non-governmental organizations (NGOs), social service agencies, and medical professionals. The conference is designed to serve as an educational platform for professionals and skilled volunteers working in the area of human trafficking.
The conference will showcase both local and national experts in sex and labor trafficking. A sampling of the national presenters include: Ms. Rachel Lloyd founder of Girls Educational and Mentoring Services (GEMS) of New York; Prof. Bridgette Carr of the University of Michigan Law School, Human Trafficking Clinic; Attorney Katherine Kaufka Walts of Loyola University Chicago, Center for the Human Rights of Children; and Prof. Celia Williamson, University of Toledo, Human Trafficking and Social Justice Institute. The conference will also include presentations by Wisconsin advocates, law enforcement officers and prosecutors.
International trafficking will be discussed by special invited guests from the Office of the Attorney General for Mexico and the Collective Against Trafficking, an organization of 15 Mexican NGOs. Nelly Montealegre Diaz, Special Prosecutor in Charge of Crimes of Violence Against Women and Trafficking together with Mónica Elizabeth Salazar, Director of the Collective Against Trafficking will address the topic of U.S. and Mexican law enforcement working together to combat cross-border trafficking of children.
The conference is sponsored by the City of Milwaukee Health Department-Office of Violence Prevention, Federal Bureau of Investigation, Homeland Security Investigations, Human Trafficking Task Force of Greater Milwaukee, Milwaukee County District Attorney’s Office, Milwaukee Police Department, National Immigrant Justice Center, Sheboygan Police Department, UMOS, Inc. – Latina Resource Center, United States Attorney’s Office, Eastern and Western Districts of Wisconsin, and the Wisconsin Department of Justice.
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20 February 2015
Youngstown Man Sentenced to 10 Years in Prison for Crack DistributionRead the Press Release
A Youngtown man was sentenced to 10 years in prison for narcotics offenses, law enforcement officials said.
Terrence D. Howell, 43, previously pleaded guilty to possession with intent to distribute crack cocaine and maintaining a drug house.
Howell possessed more than 28 grams of crack cocaine on April 30, 2014, with the intent to distribute the drugs. He also used a home on Arch Street in Youngstown to distribute and manufacture crack cocaine from February through April 2014, according to court documents.
“We will continue to work with our partners to lock up those who attempt to flood Youngstown with drugs,” U.S. Attorney Steven M. Dettelbach said.
“I would like to express my appreciation for the dedicated work of the Mahoning Valley Law Enforcement Task Force on this case,” ATF Special Agent in Charge Donald Soranno said. “Cooperative efforts with our law enforcement partners enhance our ability to remove violent criminals from the streets and make our communities safer.”
This case was prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the ATF and the Mahoning Valley Law Enforcement Task Force.
Willoughby Hills Man Sentenced to 16 1/2 Years in Prison for Cocaine Trafficking, Money Laundering and Firearms PossessionRead the Press Release
A Willoughby Hills man was sentenced to 16 1/2 years in prison for supplying multi-kilogram shipments of cocaine to other dealers for distribution in Northeast Ohio, as well as related crimes, law enforcement officials said.
Troy Williams, 44, previously pleaded guilty to conspiracy to possess with intent to distribute cocaine, possession with intent to distribute heroin, being a felon in possession of a firearm and three counts of money laundering.
He was one of 12 people indicted for their roles in the conspiracy, which lasted between 2010 and 2013. All 12 have been found guilty of crimes in U.S. District Court.
Williams supplied Jason and Joseph Phillips with multi-kilogram shipments of cocaine. All the men charged then arranged for or assisted in the redistribution of the cocaine in the Northern District of Ohio and elsewhere, according to court documents.
In April 2013, Williams also possessed heroin that he intended to distribute, as well as a firearm and ammunition, despite previous felony convictions that prohibited him from having a firearm, according to court documents.
Williams laundered approximately $72,730 in drug proceeds at the Horseshoe Cleveland Casino in July and November 2012. He did this by using cash from drug proceeds to purchase casino chips, according to court documents.
“This defendant led a group that dealt cocaine and heroin throughout Cleveland,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “He illegally carried a firearm and tried to launder his dirty drug money in downtown Cleveland. This sentence is well deserved.”
“We have zero tolerance for drug dealers. This sentence sends a clear message to those in the drug business,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “If you put drugs on the streets of Cleveland, we will find you, arrest you and you will go to jail.”
“This joint effort demonstrates that Ohio’s casinos will not be used by drug traffickers to clean their money,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of drug money is as important to drug traffickers as the sale of their illegal drugs. Without these ill-gotten gains, the drug traffickers could not finance their organizations.”
“The Ohio Casino Control Commission takes our mission to ensure the integrity of casino gaming in Ohio seriously, and appreciates the leadership of the US Attorney’s Office and the IRS in this case,” said Matthew Schuler, Executive Director of the Ohio Casino Control Commission. "We will aggressively continue to hold accountable those who would seek to use Ohio’s casinos as a platform for criminal activity.”
Williams will forfeit10 watches, $1,760 in cash as well as a pistol, ammunition and two loaded magazines.
These cases are being prosecuted by Assistant U.S. Attorney Robert F. Corts following an investigation by the Northern Ohio Law Enforcement Task Force, and assistance from the Ohio Casino Control Commission. The NOLETF is a multi-agency task force comprised of investigators from the FBI, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Immigration and Customs Enforcement, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. The HIDTA Program supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Wichita Attorney Among Five Pleading Guilty to Their Roles in Cigarette Trafficking SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Wichita, Kan., attorney is among five defendants who have pleaded guilty in federal court this week to their roles in a multi-million dollar scheme to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
Harry Najim, 67, of Wichita, pleaded guilty before U.S. District Judge Brian C. Wimes to failing to file a Form 8300 related to his representation of a client involved in the scheme, who was actually an undercover federal agent.
William F. Parry, 54, of Irving, N.Y., pleaded guilty today to contraband cigarette trafficking. Philip Christ, 55, of Hamburg, N.Y., pleaded guilty today to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking.
Nicole Sheffler, 37, of Independence, Mo., and Gholamreza “Reza” Tadaiyon, 51, of Weston, Fla., pleaded guilty on Wednesday, Feb. 18, to their roles in the conspiracy.
USA v. Najim
Najim was a lawyer employed by the Adams Jones Law Firm in Wichita. By pleading guilty today, Najim admitted that he provided legal services for an undercover ATF agent from March 2011 through January 2012. The undercover agent sold large quantities of untaxed cigarettes to a group of individuals who transported the contraband cigarettes to retail outlets in the state of New York. Those individuals were engaged in a conspiracy to commit wire fraud and contraband cigarette trafficking.
The undercover agent paid Najim $16,500 for his legal services when they met at the McCormick and Schmick’s restaurant on the Country Club Plaza in Kansas City, Mo., on June 23, 2011. Najim knew federal statutes required the law firm to file a report with the Financial Crimes Enforcement Network upon receipt of more than $10,000 in a single transaction. Najim, however, did not report the $16,500 payment to the law firm, which caused it to fail to file a report.
Najim was also the attorney for co-defendant Craig Sheffler, 45, of Independence, and Sheffler’s business, Cheap Tobacco Wholesale. Sheffler pleaded guilty on Dec. 19, 2014, to participating in the conspiracy to commit wire fraud and contraband cigarette trafficking and forfeited $599,206 to the government.
Sheffler admitted that he made regular purchases of contraband cigarettes from undercover ATF agents. The contraband cigarettes were transported to New York without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. The unstamped, untaxed cigarettes were then sold to smoke shops on the reservations in New York, which sold the contraband cigarettes at a considerable discount and deprived the state of its tax revenue.
According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Sheffler admitted in his plea agreement that the amount of loss exceeded $7 million. Cigarettes were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.
USA v. Sheffler
Nicole Sheffler, the wife of Craig Sheffler, admitted that she collected and transported the money used to purchase the contraband cigarettes from the ATF undercover operation. Nicole Sheffler collected the money from customers of Cheap Tobacco Wholesale and cashed checks at a check cashing business. She delivered the money to the ATF undercover warehouse in Kansas City, Mo., for the cigarette purchases by Cheap Tobacco Wholesale.
USA v. Parry
Parry owns and operates Wolf’s Run, a business that, among other things, operates a gas station, convenience store, and trucking transport business. Parry purchased contraband Marlboro and Newport cigarettes in September and December 2011. Parry admitted that he purchased unstamped cigarettes with the intent that the New York state excise tax would not be pre-collected, thus allowing the cigarettes to be sold at a considerable discount and depriving New York State of its tax revenue. Parry sold those unstamped, untaxed cigarettes at Wolf’s Run and to other smoke shops on the reservations in New York.
Under the terms of today’s plea agreement, Parry must forfeit $459,876, representing the profits he received for his role in the conspiracy, to the government.
USA v. Christ
Christ was the chief executive officer of P.D.C. Consulting, LLC, located in Irving, N.Y. Christ admitted that he brokered sales of contraband cigarettes to Native American businesses located in the state of New York. The tax due and owing to New York State on these cigarette transactions was approximately $2.4 million.
USA v. Tadaiyon
Tadaiyon owns Brand Name Connoisseurs, Corp., a business located in Florida. Neither Tadaiyon nor Brand Name Connoisseurs was a licensed New York tobacco wholesaler authorized to bring cigarettes into the state of New York.
Tadaiyon admitted that he and Sheffler made regular purchases of contraband cigarettes from undercover ATF agents in Kansas City, Mo. They coordinated the cigarette orders from the vendors in New York and assisted in transporting the contraband cigarettes. Tadaiyon received approximately $1,280,000 in gross profit on these transactions.
Under federal statutes, these co-defendants are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Justin Magee, 26, of South Bend, Indiana was sentenced to 37 months imprisonment with 2 years supervised release after pleading guilty to the felony offenses of attempting to damage a motor vehicle by means of fire and being a felon in possession of a firearm. According to documents filed in this case, on June 18, 2014, defendant and an accomplice possessed a container of gasoline and matches. It was their intent to set on fire a truck for another person. They approached that truck with the intent to set it on fire. Both had been paid $600 to do this. As they approached the truck, they were surrounded by law enforcement officers and arrested. Also, On June 5, 2014, Magee was involved with an accomplice in selling a firearm to a confidential informant (CI) working for BATF. They delivered a Star handgun to the CI here in St. Joseph County, Indiana. Magee had been convicted of a felony in St. Joseph County in 2013. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Toni Alexander, 43, of Calumet City, Illinois was sentenced to 1 day time considered served and a $750.00 after pleading guilty to the felony offense of conspiracy to commit mail fraud. According to documents filed in this case on December 18, 2013, the defendant was part of a group who staged automobile accidents in Northwest Indiana and Chicago and subsequently submitted false and fraudulent police reports and insurance claims for property damage. She is the eighth defendant to plead guilty in this case. This case was the result of an investigation by the United States Postal Inspection Service and Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Toi Denise Houston.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Michael Tressler, 40, of Corunna, Indiana pled guilty to the felony offense of sexual exploitation of children. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation and the DeKalb County Sheriff’s Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
- Victor Boyer, 23, of Fort Wayne, Indiana pled guilty to the felony offenses of armed bank robbery and use, carry, brandish and discharge of a firearm during and relation to a crime of violence. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force, Allen County Sheriff’s Department and the Fort Wayne Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Maritza Castaneda, 33, of Colton, California was sentenced to 70 months imprisonment with 1 year supervised release after pleading guilty to the felony offenses of conspiracy to distribute and possession with intent to distribute cocaine. According to documents filed in this case, from on or about November 8, 2010, and continuing to on or about April 13, 2011, in Allen County, Indiana, in the Northern District of Indiana, and elsewhere, Castaneda did knowingly and intentionally conspire, combine, confederate, and agree to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Jarvis Buchanan, 25, of Fort Wayne, Indiana was sentenced to 121months imprisonment with 2 years supervised release after pleading guilty to the felony offenses of conspiracy to distribute and possession with intent to distribute cocaine and cocaine base, commonly known as crack. According to documents filed in this case, from on or about February 10, 2010, and continuing to on or about January 29, 2011, in Allen County, Indiana, in the Northern District of Indiana, and elsewhere, Buchanan did knowingly and intentionally conspire, combine, confederate, and agree to distribute and possess with the intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base, commonly known as “crack”. This case was the result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Florencio Deluna, 33, of Fort Wayne, Indiana was sentenced to 87 months imprisonment with no term of supervised release after pleading guilty to the felony offenses of conspiracy to distribute and possess with intent to distribute a controlled substance. According to documents filed in this case, from on or about November 8, 2010, and continuing to on or about April 13, 2011, in Allen County, Indiana, in the Northern District of Indiana, and elsewhere, Deluna did knowingly and intentionally conspire, combine, confederate, and agree with others to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Two North Jersey Grocery Employees Charged in $1.4 Million Food Stamp FraudRead the Press Release
NEWARK, N.J. – Two Passaic County, New Jersey, men were arrested by federal agents this morning for allegedly conspiring to steal more than $1.4 million dollars from the U.S. Government through a fraudulent food stamps scheme, U.S. Attorney Paul J. Fishman announced.
Jacques Gary Doghram Apelian, 61, of Haledon, New Jersey, and Wael Rabee, 32, of Paterson, New Jersey, were charged by complaint with one count of conspiring to steal monies from the United States. Apelian and Rabee were arrested by agents of the Department of Agriculture, Office of Inspector General and are scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
Apelian and Rabee, employees of Broadway Deli & Grocery in Paterson, are charged in connection with a scheme in which they unlawfully redeemed Supplemental Nutrition Assistance Program (SNAP) benefits (formerly known as food stamps) in exchange for cash or for the purchase of non-food items. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for food stamp benefits. They may not exchange food stamp benefits for cash.
SNAP benefits are loaded onto Electronic Benefits Transfer (EBT) cards. The EBT cards are automatically credited with the appropriate level of food stamp benefits for each SNAP recipient. Benefits are electronically transferred from the U.S. Treasury into a bank account designated by the authorized retailer. Authorized retailers receive training material relating to the rules and regulations of SNAP prior to receiving authorization and are responsible for training employees on the proper acceptance and handling of SNAP benefits. To complete a purchase, a SNAP recipient swipes an EBT card through a point of sale terminal at the authorized retailer and enters a personal identification number. If approved, the recipient’s account is debited for the amount of the purchase and the funds are credited to the authorized retailer’s account.
From October 2011 through December 2014, Broadway was authorized to accept SNAP benefits. Rabee and Apelian allegedly entered fictitious dollar amounts for SNAP EBT transactions, gave recipients a percentage of the transaction’s value in cash and kept the remainder. For example, a recipient might purchase eligible food items worth $5.00. The defendants would swipe the recipient’s EBT card for $95.00, which would be debited from the recipient’s EBT account and credited to Broadway’s bank account. The defendants would then give the recipient a portion of the cash and keep a portion of the proceeds, typically 33 percent of the total amount of SNAP benefits debited from the EBT card (not including the costs of store items that were purchased).
SNAP EBT benefit purchases over $50 are rare in small groceries like Broadway and usually indicate fraud. From January 2013 through December 2013, the total dollar amount of Broadway EBT transactions exceeding $50 was $533,452. From January 2014 through December 2014, the total dollar amount of EBT transactions exceeding $50 was $556,310.
Law enforcement agents uncovered the scheme using a cooperating witness (CW). From October 2012 to December 2014, the CW engaged in approximately fifteen “purchases” at Broadway. During each of these transactions, the CW exchanged SNAP EBT benefits for cash with the defendants, in violation of SNAP rules and regulations.
Based on an analysis EBT transactions, purchases over $50 made at Broadway from October 2011 through December 2014 totaled $1,493,294.
The charge of conspiracy is punishable by a maximum potential penalty of five years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr., in New York; the Paterson Police Department; and Detectives Craig Metz and Iris Reyes of the N.J. Human Services Police for their assistance.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office in Newark.
15-065
Apelian, Jacques Gary Doghram and Rabee, Wael Complaint
Two Long Beach, California, Men Sentenced for Participation in a Sex Trafficking ConspiracyRead the Press Release
Defendants Used Deception, Threats, Violence and Coercion to Compel Young Women into Prostitution in Orange County, California
Roshaun Nakia Porter, 39, was sentenced today by U.S. District Judge Josephine L. Staton to a sentence of 240 months in prison and 10 years of supervised release for his role in a sex trafficking conspiracy, announced the Civil Rights Division and the U.S. Attorney’s Office for the Central District of California. Porter’s co-conspirator, Marquis Monte Horn, 40, was sentenced on Oct. 24, 2014, to serve 78 months in prison and five years of supervised release for his role in the conspiracy. Two other defendants have entered guilty pleas in connection with the case.
The judge ordered Porter to pay $866,244.68 in restitution to 10 victims of the conspiracy.
On July 11, 2014, Porter and Horn each pleaded guilty to one count of conspiring to engage in sex trafficking by force, fraud and coercion. According to documents filed in court and admissions in court in connection with Porter’s guilty plea, between 2010 and April 2012, Porter masterminded a scheme in which he exploited young women, including foreign nationals and U.S. citizens, in his prostitution operation in Orange County, California. Using various deceptive means, including false online personal advertisements and fraudulent promises of legitimate employment, Porter reaped substantial illicit profit by luring his victims into personal relationships with him and, thereafter, compelling them to prostitute and provide him the proceeds from their commercial sex acts. To compel the victims into compliance, Porter used physical violence, psychological abuse, threats to harm the victims’ family members and other coercive means. In connection with his guilty plea, Horn admitted that between December 2010 and April 2012, he conspired to recruit and entice victims into Porter’s prostitution ring.
“The Department of Justice is steadfast in its commitment to prosecuting those who seek to profit from enslaving and exploiting others.” said Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “We will continue our unrelenting work to end the scourge of human trafficking and obtain justice on behalf of victims of these heinous crimes.”
“Porter masterminded a reprehensible sex trafficking enterprise that caused extreme trauma and lasting injury to victims,” said Acting U.S. Attorney Stephanie Yonekura of the Central District of California. “Over the course of nearly two years, Porter victimized young women with flagrant lies, bogus romantic overtures and acts of violence as he forced them to give up their bodies for his profit. This conduct is intolerable and warrants the lengthy sentenced issued today by the court.”
“The defendant recruited unsuspecting victims as sex slaves through fraudulent promises of wealth and a better life,” said Assistant Director in Charge David Bowdich of the FBI Los Angeles Office. “He then held them hostage by imposing physical beatings and issuing death threats while he cashed in on their suffering. The FBI is committed to protecting the civil rights of trafficking victims by identifying violent sexual offenders and pimps operating in our communities, and building federal cases to ensure they go to prison."
This matter was investigated by the FBI. It is being prosecuted by Trial Attorney Daniel Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant U.S. Attorney Sandy Leal of the U.S. Attorney’s Office in the Central District of California.
Twin Brothers from Newport News Sentenced for RobberiesRead the Press Release
NEWPORT NEWS, Va. – Shakeen D. Northcutt, and his twin brother, Rakeen D. Northcutt, both 22, from Newport News, Va., were sentenced today for their individual roles in a conspiracy to commit robberies. Shakeen Northcutt was sentenced to 78 months in prison and Rakeen Northcutt was sentenced to 97 months in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, ATF Special Agent in Charge of the Washington Field Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
The Northcutt brothers were convicted on October 3, 2014, following a four day jury trial. According to court documents, the brothers each committed a separate robbery along with other individuals. During the first robbery, on October 20, 2013, Shakeen Northcutt entered the Osming Buffett in Hampton, through an open back door, fired a shot, and left with $250.00. In the second robbery, on October 28, 2013, Rakeen Northcutt entered the Buckroe Beach Market, also in Hampton, and confronted the owner who was working behind the counter. He fired two shots before running out the door with no proceeds. The victim was not injured.This case was investigated by the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Robert E. Bradenham, II prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr38.Trio Sentenced to Federal Prison for Credit Card FraudRead the Press Release
Orlando, Florida – U.S. Chief District Judge Anne C. Conway yesterday sentenced Ruben Mangual-Aquino (33, Orlando) to 48 months in federal prison for conspiracy to traffic in counterfeit access devices (credit cards), possession of device-making equipment, producing and using counterfeit access devices, possession of 15 or more counterfeit access devices, and aggravated identity theft. Co-defendant Yahima Carballosa (33, Orlando) was sentenced to 51 months in federal prison for the same offenses. A third co-defendant, Bernard Cordero-Perez (27, Kissimmee), was sentenced to 18 months in federal prison for participating in the conspiracy and for possession of device-making equipment. The Court also ordered the defendants to forfeit computer equipment and cell phones that had been used to commit the offenses. In addition, they were ordered to pay $44,629.23 in restitution to the victims of the crimes.
Mangual-Aquino and Carballosa pleaded guilty on October 29, 2014, and Cordero-Perez pleaded guilty on October 15, 2014.
According to court documents, Cordero-Perez worked as a housekeeper at a hotel in Orlando, Florida. Mangual-Aquino gave Cordero a hand-held skimming device to steal hotel guests’ credit card account information. On several separate occasions while at work, Cordero-Perez took guests’ credit cards from purses, wallets and backpacks that he found in their rooms, and then ran those cards through the skimmer. After skimming the guests’ credit card account information, he gave the skimmer to Mangual-Aquino, who downloaded the credit card account information into a computer at his home. Mangual-Aquino and Carbalossa then encoded credit cards with the stolen credit card account information to create counterfeit cards. Mangual-Aquino and Carbalossa used the counterfeit cards to buy gift cards at local area retail stores, and then used the gift cards to purchase merchandise. Mangual-Aquino gave Cordero-Perez fraudulently purchased gift cards as his payment for his participation in the conspiracy.
This case was investigated by the United States Secret Service and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
Three Pasco and Lake County Residents Arrested with Twenty Pounds of MethamphetamineRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest and charge by a federal complaint of Shawn Paul Hendricks (41, Dade City); Vladimir Castaneda (26) and Jose Edgar Gonzalez-Castaneda (45), both of Eustis, Florida, with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. If convicted, each faces a mandatory minimum penalty of 10 years, up to life, in federal prison.
According to the complaint, Hendricks, who was known by law enforcement to be a large-scale methamphetamine trafficker, was arrested in Dade City on Thursday night for fleeing and alluding law enforcement after an attempted traffic stop. Agents subsequently seized marijuana, a gun, and over $50,000 in cash from a Dade City residence where Hendricks lived with his girlfriend. Hendricks admitted to having received 10 to 15 pounds of methamphetamine a week over the past year from a source in Atlanta, Georgia and stated that he was to receive such a shipment the following night. With Hendricks’s cooperation, last night agents arrested Castaneda and Gonzalez-Castaneda at their residences in Eustis, Florida, after they delivered nearly 9 pounds of methamphetamine to Hendricks. In one of the transport vehicles, agents found an additional 11 pounds of methamphetamine. Gonzales-Castaneda admitted that he and Castaneda had picked up the methamphetamine in Atlanta earlier that morning.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Drug Enforcement Administration and the Pasco County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kathy J.M. Peluso.
The National President, Vice President, Warlord and Three Other Members of the Devils Diciples Motorcycle Gang Convicted of Racketeering and Drug-Trafficking ChargesRead the Press Release
After a four-month trial, a federal jury in the Eastern District of Michigan convicted six members of the Devils Diciples Motorcycle Gang today, including the national president, national vice president and national warlord, for their participation in various criminal acts, including violent crimes in aid of racketeering, methamphetamine production and trafficking, illegal firearms offenses, obstruction of justice, illegal gambling and other federal offenses.
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 and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office made the announcement.
“For too many years the Devils Diciples spread fear and violence throughout Michigan and the country,” said Assistant Attorney General Caldwell. “This outlaw motorcycle gang thrived on intimidation and its ability to avoid prosecution – but no longer. Through these convictions, we have decimated the gang and its leadership and helped secure justice for the communities they harmed.”
"These defendants were responsible for violence and trafficking in methamphetamine in Macomb County and across the country,” said U.S. Attorney McQuade. “We are grateful for the work of the investigating agencies and the jury to bring them to justice."
“The defendants in this case perpetrated a broad range of violent criminal activities in support of their illegal enterprise,” said Special Agent in Charge Abbate. “Today’s convictions, which targeted the leadership of this criminal organization, reflect the hard work and dedication of federal, state and local law enforcement, the Department of Justice Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.”
Devils Diciples national President Jeff Garvin Smith, aka “Fat Dog,” 60, of Mt. Clemens, Michigan; National Vice President Paul Anthony Darrah, aka “Pauli,” 50, of Macomb Township, Michigan; and National Warlord Cary Dale Vandiver, aka “Gun Control,” 56, of Sand Mountain, Alabama, were all found guilty by a jury of engaging in a RICO conspiracy, methamphetamine trafficking conspiracy, conspiracy to obstruct justice, violent crimes in aid of racketeering and various substantive charges. Another prominent leader, Vincent John Witort, aka “Holiday,” 64, of Fontana, California, and a methamphetamine cook, Patrick Michael McKeoun, aka “Magoo,” 60, of Birmingham, Alabama, were found guilty of engaging in a RICO conspiracy and methamphetamine trafficking conspiracy. David Randy Drozdowski, aka “D,” 38 of Fair Haven, Michigan, was found guilty by a jury of committing violent crimes in aid of racketeering and being a felon in possession of a firearm. Scott William Sutherland, aka “Scotty Z,” 49, of Redford, Michigan, was acquitted by the jury of various charges, but previously pleaded guilty to being a felon in possession of a firearm. Sentencing hearings will be scheduled at a later date before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.
According to evidence presented at trial, the Devils Diciples (which is intentionally misspelled) is a motorcycle gang with its national headquarters in Clinton Township, Michigan. The Devils Diciples operated regional chapters in cities throughout Michigan, Alabama, Arizona, California, Illinois, Indiana, Ohio and elsewhere, and engaged in criminal activities for financial gain.
Evidence presented at trial demonstrated that membership in the Devils Diciples is based in part on successful completion of a probationary period, followed by formal approval by one or more members or leaders. Members, commonly referred to as “full patched members,” are required to own Harley Davidson motorcycles and are required to follow orders from the gang’s leadership, including orders to assault, threaten and intimidate others, to transport and distribute drugs, to lie to law enforcement and to hide or destroy evidence. Members are also required to follow the Devils Diciples by-laws and attend regular meetings referred to as “church.”
According to evidence presented at trial, Smith was the National President and Darrah was the National Vice President of the gang. In those roles, they were responsible for overall management of the activities of the other Devils Diciples members and chapters, including giving final approval to any activity generally affecting the gang as a whole. Vandiver was the National Warlord – or enforcer – of the gang. With other gang members, the leaders also participated directly in criminal activities both for financial gain on behalf of the Devils Diciples, and to protect the gang and its members.
Specifically, the evidence showed that in late 2007, Smith and Darrah were involved in the shooting of a Devils Diciples member who failed to abide by the gang’s rules. And, in August 2008, Smith violently assaulted the girlfriend of another Devils Diciples member because he believed she disrespected him and the gang.
Additionally, the evidence showed that Smith possessed state and federal law enforcement manuals regarding outlaw motorcycle gangs marked “For Official Use Only” and “Law Enforcement Sensitive,” and numerous documents related to criminal matters involving members of the Devils Diciples, including police reports, search warrants, affidavits, indictments and witness interview transcripts. The evidence showed that the documents were used for the purposes of counter-surveillance and to identify suspected informants.
The other defendants were also full patched members of the gang, who committed several other acts of violence.
For example, in August 2003, Witort and other gang members robbed, kidnapped and attempted to murder members of the gang’s Arizona Chapter for violating the gang’s rules. Inside the Arizona clubhouse, the victims were bound with duct tape and zip ties, and severely beaten with firearms, tasers, knives, and other weapons. The victims were then loaded into the bed of a pick-up truck, driven out into the desert, dumped into ravines, and left to die. The evidence showed that Witort and Smith helped to plan the beatings and that Smith later congratulated one of the participants, telling him in a letter that the Devils Diciples were “all proud of you.”
Additionally, the evidence demonstrated that in 2012, at a bar in Chesterfield Township, Michigan, Drozdowski and another Devils Diciples member assaulted a perceived rival motorcycle gang member for being present in Devils Diciples territory. The victim was knocked unconscious and suffered multiple fractures to his face and jaw. Drozdowski and the other Devils Diciples member then ripped the leather vest off of the unconscious victim.
In addition to the defendants convicted today, 21 members and associates of the Devil’s Diciples have been pleaded guilty to various crimes as result of this investigation. The investigation further resulted in the seizure of more than 60 firearms and more than 6,000 rounds of ammunition and the dismantling of eight methamphetamine manufacturing laboratories across the country.
The case was investigated by the FBI, the Michigan State Police, the Macomb County Sheriff’s Office and the County of Macomb Enforcement Team (COMET), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Office. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
The National President, Vice President, Warlord and Three Other Members of the Devils Diciples Motorcycle Gang Convicted of Racketeering and Drug-Trafficking ChargesRead the Press Release
WASHINGTON – After a four-month trial, a federal jury in the Eastern District of Michigan convicted six members of the Devils Diciples Motorcycle Gang today, including the national president, national vice president and national warlord, for their participation in various criminal acts, including violent crimes in aid of racketeering, methamphetamine production and trafficking, illegal firearms offenses, obstruction of justice, illegal gambling and other federal offenses.
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 and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office made the announcement.
“For too many years the Devils Diciples spread fear and violence throughout Michigan and the country,” said Assistant Attorney General Caldwell. “This outlaw motorcycle gang thrived on intimidation and its ability to avoid prosecution – but no longer. Through these convictions, we have decimated the gang and its leadership and helped secure justice for the communities they harmed.”
"These defendants were responsible for violence and trafficking in methamphetamine in Macomb County and across the country,” said U.S. Attorney McQuade. “We are grateful for the work of the investigating agencies and the jury to bring them to justice."
“The defendants in this case perpetrated a broad range of violent criminal activities in support of their illegal enterprise,” said Special Agent in Charge Abbate. “Today’s convictions, which targeted the leadership of this criminal organization, reflect the hard work and dedication of federal, state and local law enforcement, the Department of Justice Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.”
Devils Diciples national President Jeff Garvin Smith, aka “Fat Dog,” 60, of Mt. Clemens, Michigan; National Vice President Paul Anthony Darrah, aka “Pauli,” 50, of Macomb Township, Michigan; and National Warlord Cary Dale Vandiver, aka “Gun Control,” 56, of Sand Mountain, Alabama, were all found guilty by a jury of engaging in a RICO conspiracy, methamphetamine trafficking conspiracy, conspiracy to obstruct justice, violent crimes in aid of racketeering and various substantive charges. Another prominent leader, Vincent John Witort, aka “Holiday,” 64, of Fontana, California, and a methamphetamine cook, Patrick Michael McKeoun, aka “Magoo,” 60, of Birmingham, Alabama, were found guilty of engaging in a RICO conspiracy and methamphetamine trafficking conspiracy. David Randy Drozdowski, aka “D,” 38 of Fair Haven, Michigan, was found guilty by a jury of committing violent crimes in aid of racketeering and being a felon in possession of a firearm. Scott William Sutherland, aka “Scotty Z,” 49, of Redford, Michigan, was acquitted by the jury of various charges, but previously pleaded guilty to being a felon in possession of a firearm. Sentencing hearings will be scheduled at a later date before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.
According to evidence presented at trial, the Devils Diciples (which is intentionally misspelled) is a motorcycle gang with its national headquarters in Clinton Township, Michigan. The Devils Diciples operated regional chapters in cities throughout Michigan, Alabama, Arizona, California, Illinois, Indiana, Ohio and elsewhere, and engaged in criminal activities for financial gain.
Evidence presented at trial demonstrated that membership in the Devils Diciples is based in part on successful completion of a probationary period, followed by formal approval by one or more members or leaders. Members, commonly referred to as “full patched members,” are required to own Harley Davidson motorcycles and are required to follow orders from the gang’s leadership, including orders to assault, threaten and intimidate others, to transport and distribute drugs, to lie to law enforcement and to hide or destroy evidence. Members are also required to follow the Devils Diciples by-laws and attend regular meetings referred to as “church.”
According to evidence presented at trial, Smith was the National President and Darrah was the National Vice President of the gang. In those roles, they were responsible for overall management of the activities of the other Devils Diciples members and chapters, including giving final approval to any activity generally affecting the gang as a whole. Vandiver was the National Warlord – or enforcer – of the gang. With other gang members, the leaders also participated directly in criminal activities both for financial gain on behalf of the Devils Diciples, and to protect the gang and its members.
Specifically, the evidence showed that in late 2007, Smith and Darrah were involved in the shooting of a Devils Diciples member who failed to abide by the gang’s rules. And, in August 2008, Smith violently assaulted the girlfriend of another Devils Diciples member because he believed she disrespected him and the gang.
Additionally, the evidence showed that Smith possessed state and federal law enforcement manuals regarding outlaw motorcycle gangs marked “For Official Use Only” and “Law Enforcement Sensitive,” and numerous documents related to criminal matters involving members of the Devils Diciples, including police reports, search warrants, affidavits, indictments and witness interview transcripts. The evidence showed that the documents were used for the purposes of counter-surveillance and to identify suspected informants.
The other defendants were also full patched members of the gang, who committed several other acts of violence.
For example, in August 2003, Witort and other gang members robbed, kidnapped and attempted to murder members of the gang’s Arizona Chapter for violating the gang’s rules. Inside the Arizona clubhouse, the victims were bound with duct tape and zip ties, and severely beaten with firearms, tasers, knives, and other weapons. The victims were then loaded into the bed of a pick-up truck, driven out into the desert, dumped into ravines, and left to die. The evidence showed that Witort and Smith helped to plan the beatings and that Smith later congratulated one of the participants, telling him in a letter that the Devils Diciples were “all proud of you.”
Additionally, the evidence demonstrated that in 2012, at a bar in Chesterfield Township, Michigan, Drozdowski and another Devils Diciples member assaulted a perceived rival motorcycle gang member for being present in Devils Diciples territory. The victim was knocked unconscious and suffered multiple fractures to his face and jaw. Drozdowski and the other Devils Diciples member then ripped the leather vest off of the unconscious victim.
In addition to the defendants convicted today, 21 members and associates of the Devil’s Diciples have been pleaded guilty to various crimes as result of this investigation. The investigation further resulted in the seizure of more than 60 firearms and more than 6,000 rounds of ammunition and the dismantling of eight methamphetamine manufacturing laboratories across the country.
The case was investigated by the FBI, the Michigan State Police, the Macomb County Sheriff’s Office and the County of Macomb Enforcement Team (COMET), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Office. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Texas Man Charged with $1 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Texas man has been charged in federal court for his role in a fraud scheme in which a Dallas area hospital paid more than $1 million to purchase an MRI from conspirators who impersonated representatives of Kansas City-based Cerner Corporation.
Albert Davis, 54, of Richardson, Texas, was charged with conspiracy to commit wire fraud in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Feb. 12, 2015. The complaint and affidavit were unsealed and made public today upon Davis’s arrest and initial court appearance in the U.S. District Court in Tyler, Texas, where he remains in federal custody.
The federal criminal complaint alleges that Davis participated in a wire fraud conspiracy with at least six unnamed co-conspirators that began May 1, 2009. Davis allegedly convinced employees of Dallas Medical Center and Prime Health Care (which acquired the hospital during the course of the fraud scheme) that he and his co-conspirators were working with Cerner. As a result, Dallas Medical Center transmitted two wire payments to the conspirators’ bank account totaling $1,061,550.
Dickinson praised Cerner’s swift action in reporting the fraud. “As soon as Cerner employees became aware of this incident, they immediately notified representatives at the hospital and contacted law enforcement to provide information central to the investigation and prosecution of this case,” Dickinson said.
The charge is part of a multi-district investigation based in the Western District of Missouri, which also includes the Northern and Eastern Districts of Texas and the Western District of Arkansas.
According to an affidavit filed in support of the criminal complaint, Davis and his co-conspirators impersonated Cerner employees, physicians, investors and others – both in e-mails and in-person visits. The affidavit alleges that Davis and his co-conspirators created a fake Cerner business entity, opened a fake Cerner bank account, registered a fake Cerner Internet domain, created fake Cerner employee e-mail accounts, leased virtual office space for a fake Cerner address in Kansas City and paid for cellphones with local 816 area code phone numbers. They allegedly created fake Cerner product quotes and fake Cerner invoices.
Davis and his co-conspirators allegedly worked together as a part of several businesses and entities created by Davis and a co-conspirator. Co-conspirators are linked to at least 70 individual business entities registered in Texas, Colorado, Nevada, Wyoming, Washington, Delaware and Florida in which some combination of them are involved. These entities often utilize similar names and addresses, but usually maintain separate business registration and bank accounts.
Raji Kumar, CEO of Dallas Medical Center, told federal agents that she was approached by Davis and a co-conspirator in February 2012. According to the affidavit, they claimed they were partnering with Cerner to sell MRIs. She was told their company, iHeart, had cardiac MRI technology that was a breakthrough in medical science and would change the way patients were diagnosed with cardiac issues. After the initial meeting, the affidavit says, Kumar also met with other co-conspirators.
According to the affidavit, Cerner generated a real quote to sell an MRI, in partnership with Davis, to Dallas Medical Center. However, Cerner made the decision to not pursue the MRI deal with Davis, which was communicated to Davis in October 2012. According to Kumar, Dallas Medical Center was never told by Davis that Cerner was out of the deal.
Instead, the affidavit says, Dallas Medical Center began receiving e-mails purportedly from Cerner employees. The e-mails had the “@cernerinc” domain (which is not used by Cerner) and provided information and confirmation about the MRI sale.
On Oct. 17, 2012, Davis hosted representatives of Dallas Medical Center and Prime Health Care Services at Plano, Texas, for a site visit to look at their MRI. Davis allegedly introduced Kumar and others to an individual identified as “Senior Physicist Suresh Mitta of Cerner” (actually one of the unnamed co-conspirators) who helped demonstrate the equipment. This individual presented a “Cerner” business card to Kumar.
After the visit, Prime Health Care Services made the decision to purchase a new MRI system, as opposed to upgrading the current system.
On Nov. 5, 2012, Prime Health Care Services agreed to buy the MRI for $1,330,130. Conspirators allegedly provided instructions to wire the funds to a fake Cerner bank account. Conspirators allegedly sent a fraudulent invoice that divided the payment into three separate wire transfers of $508,250, $553,300 and $268,550. The first two payments were made in November and December 2012; the third payment was never made because the fraud was detected.
Kumar asked Davis for references, the affidavit says, and he provided three names. Kumar said she attempted to call the three references provided by Davis; two physicians from Oklahoma told her they were happy with the MRI from Cerner and had no issues. (When interviewed later by federal agents, both doctors said they had not talked with Kumar or anyone from Dallas Medical Center about an MRI.)
Kumar said the installation was never completed, and despite numerous calls, nothing was done. The hospital made the decision to try and involve Cerner directly to help finish the installation and get the MRI working.
A hospital employee called the real Cerner Corporation and left a message for the employee with whom they thought they had been dealing. That employee called him back, however, and stated that the hospital was confused, and that Cerner had not sold them an MRI. According to Kumar, on June 26, 2013, she exchanged calls and e-mails with employees from the real Cerner Corporation who had reviewed the e-mails Dallas Medical Center had received, along with the purported Cerner invoices. Cerner employees quickly identified that these were not authentic Cerner invoices and informed her that the e-mails were not sent from the real Cerner domain.
The affidavit also refers to another instance involving Dallas Medical Center in which Davis allegedly impersonated another company to sell a Cath Lab to the hospital, using the same techniques of registering a fake domain, fake e-mails, and a fake business entity. Prior to the MRI negotiations, the hospital made four payments totaling $491,000 to CIS Cardiovascular. These payments actually were made to a bank account over which Davis was the sole person with signature authority.
Criminal Complaint: Eastern District of Texas
In a separate case, Davis was charged with perjury in a federal criminal complaint filed in the Eastern District of Texas, related to his testimony in a civil trial in that district.
Davis, through his company LBDS Holding Company, LLC, sued a company called ISOL Technology, Inc., and two other firms for breach of contract, trade secrets misappropriation, civil conspiracy, unfair competition, and theft of trade secrets. According to court records, this case went to trial in the spring of 2014 and the jury awarded LBDS a verdict of approximately $25 million.
ISOL subsequently filed an emergency motion for sanctions against Davis’s company. In its motion, ISOL argued that LBDS manufactured and falsified evidence in the trial and committed a fraud upon the court. They asked the court to set aside the verdict.
During the trial, Davis and one of the unnamed co-conspirators both testified at trial about e-mails from the domain cernerinc.com. According to the affidavit, e-mails using the cernerinc.com domain were introduced as exhibits, along with a fake “Cerner Distribution Agreement” that purportedly committed Cerner to purchase 345 MRI systems from Davis.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI.
Texas Cocaine Trafficker Sentenced to More Than 18 Years in Prison and Forfeits More Than $1.2 Million DollarsRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Rolando Pinon (46, San Benito, Texas) to 18 years and 6 months in federal prison for conspiracy to distribute five kilograms or more of cocaine. The Court also ordered him to forfeit more than $1.2 million dollars in property and cash, which were determined to be traceable proceeds of the offense. Pinon pleaded guilty on November 25, 2014.
According to court documents and evidence presented at the sentencing hearing, Pinon had a long-time source for large quantities of cocaine in Matamoros, Mexico. Since 2007, he had used various modes of transportation to move the drugs from Texas to Ocala, and had employed a series of drivers, including Jose Manuel Tovar. The investigation revealed that Pinon had sold in excess of 150 kilograms of cocaine to an Ocala-based customer, who then had sold the drugs to multi-kilogram cocaine dealers in the Marion County area.
On August 29, 2014, the Ocala Police Department conducted a traffic stop of a truck Tovar was driving on his way from Texas. During the stop and ensuing search of the vehicle, officers located a marine-style cooler. Once disassembled, the cooler was found to contain six kilograms of cocaine. DEA agents subsequently arrested Pinon in Texas. Tovar was previously sentenced to six years in federal prison on January 22, 2015.
During the course of the conspiracy, Pinon laundered drug money by amassing rental properties in Texas, placing the properties in various nominee names, and renting them for profit. He also purchased a parcel of property and opened a vehicle sales business known as Elik Motors. Elik Motors bought cars at auction and resold them. As part of the plea agreement, Pinon forfeited the rental properties, Elik Motors, and cash. The total amount of the forfeiture exceeded $1.2 million dollars.
This case is another prosecution in the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Wind Sock. The principal mission of the OCDETF Program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation, with assistance from the Unified Drug Enforcement Strike Team, which is comprised of Narcotics Agents from the Ocala Police Department and Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney A. Tysen Duva.
Tax Fraud Promoters Convicted in Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
SALT LAKE CITY - A Midvale, Utah, man and a Henderson, Nevada, woman were convicted by a jury late Thursday afternoon in the U.S. District Court in Salt Lake City of tax crimes, announced U.S. Attorney Carlie Christensen of the District of Utah and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Gerrit Timmerman, of Midvale, and Carol Jean Sing, of Henderson, were convicted of conspiracy to defraud the United States related to their promotion of a tax fraud scheme.
According to the evidence introduced at trial, between April 23, 2004, and March 5, 2007, Timmerman and Sing conspired to defraud the United States by marketing “corporations sole” as part of their scheme to evade the assessment and payment of federal income taxes. Timmerman and Sing falsely told their clients that corporations sole were exempt from United States income tax laws, had no obligation to file tax returns and had no obligation to apply for tax exempt status. They further claimed that individuals could render their own income non-taxable by assigning it to the corporation sole, could draw a tax-free stipend from their corporation sole, and could render property immune from Internal Revenue Service (IRS) collection activity by transferring property to the corporation sole.
According to evidence presented at trial, Sing used Trioid International Group Inc. as a resident agent for corporations sole and other business entities for their clients. Sing and Timmerman also utilized a website to list the tax benefits of corporations sole and to post articles about the supposed tax benefits of corporations sole. At the same time, Timmerman was actively assisting others in evading their state and federal income tax liabilities, and recommended the corporation sole to his clients as another way to impair the IRS. Both defendants referred customers to one another and paid each other referral fees.
A corporation sole is a form of incorporation allowed by some states, primarily for use by religious leaders to hold title to property. Several states, including Utah in 2004 and Nevada in 2009, have disallowed the creation of new corporations sole. The IRS has publicized the fact that corporations sole have been abused by promoters in Revenue Ruling 2004-27, and even included corporations sole on their “dirty dozen” tax scams in 2004.
“Individuals who enrich themselves by promoting tax avoidance schemes and assist others in evading state and federal taxes are defrauding American taxpayers,” said U.S. Attorney Christensen. “They should expect to be prosecuted and convicted for this conduct, as this verdict demonstrates.”
“Yesterday’s convictions send a clear message that individuals who willfully violate our nation’s tax laws through the promotion of abusive tax schemes and the creation of sham entities will be investigated and prosecuted to the fullest extent of the law,” said Principal Deputy Acting Assistant Attorney General Ciraolo. “The Tax Division is committed to working with its law enforcement partners to disrupt and dismantle these criminal enterprises.”
“Designing tax shelter transactions intended to conceal the true facts from the IRS isn't tax planning; it's criminal activity,” said Special Agent in Charge John G. Collins of IRS-Criminal Investigation in Utah. “This verdict reinforces our commitment to every American taxpayer to identify and prosecute those who devise illegal tax shelters under the guise of religion or charities to assist their clients in evading their tax obligations.”
Sentencing is scheduled for May 20. Sing and Timmerman each face a statutory maximum sentence of five years in prison and a fine of $250,000.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Christensen commended the special agents of IRS–Criminal Investigation who investigated this case, as well as Trial Attorneys Dennis R. Kihm and Andrea A. Kafka of the Tax Division, who are prosecuting the case.
Tax Fraud Promoters Convicted in Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
A Midvale, Utah, man and a Henderson, Nevada, woman were convicted by a jury yesterday in the U.S. District Court in Salt Lake City of tax crimes, announced U.S. Attorney Carlie Christensen of the District of Utah and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Gerrit Timmerman, of Midvale, and Carol Jean Sing, of Henderson, were convicted of conspiracy to defraud the United States related to their promotion of a tax fraud scheme.
According to the evidence introduced at trial, between April 23, 2004, and March 5, 2007, Timmerman and Sing conspired to defraud the United States by marketing “corporations sole” as part of their scheme to evade the assessment and payment of federal income taxes. Timmerman and Sing falsely told their clients that corporations sole were exempt from United States income tax laws, had no obligation to file tax returns and had no obligation to apply for tax exempt status. They further claimed that individuals could render their own income non-taxable by assigning it to the corporation sole, could draw a tax-free stipend from their corporation sole, and could render property immune from Internal Revenue Service (IRS) collection activity by transferring property to the corporation sole.
According to evidence presented at trial, Sing used Trioid International Group Inc. as a resident agent for corporations sole and other business entities for their clients. Sing and Timmerman also utilized a website to list the tax benefits of corporations sole and to post articles about the supposed tax benefits of corporations sole. At the same time, Timmerman was actively assisting others in evading their state and federal income tax liabilities, and recommended the corporation sole to his clients as another way to impair the IRS. Both defendants referred customers to one another and paid each other referral fees.
A corporation sole is a form of incorporation allowed by some states, primarily for use by religious leaders to hold title to property. Several states, including Utah in 2004 and Nevada in 2009, have disallowed the creation of new corporations sole. The IRS has publicized the fact that corporations sole have been abused by promoters in Revenue Ruling 2004-27, and even included corporations sole on their “dirty dozen” tax scams in 2004.
“Individuals who enrich themselves by promoting tax avoidance schemes and assist others in evading state and federal taxes are defrauding American taxpayers,” said U.S. Attorney Christensen. “They should expect to be prosecuted and convicted for this conduct, as yesterday’s verdict demonstrates.”
“Yesterday’s convictions send a clear message that individuals who willfully violate our nation’s tax laws through the promotion of abusive tax schemes and the creation of sham entities will be investigated and prosecuted to the fullest extent of the law,” said Principal Deputy Acting Assistant Attorney General Ciraolo. “The Tax Division is committed to working with its law enforcement partners to disrupt and dismantle these criminal enterprises.”
“Designing tax shelter transactions intended to conceal the true facts from the IRS isn't tax planning; it's criminal activity,” said Special Agent in Charge John G. Collins of IRS-Criminal Investigation in Utah. “Yesterday's verdict reinforces our commitment to every American taxpayer to identify and prosecute those who devise illegal tax shelters under the guise of religion or charities to assist their clients in evading their tax obligations.”
Sentencing is scheduled for May 20. Sing and Timmerman each face a statutory maximum sentence of five years in prison and a fine of $250,000.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Christensen commended the special agents of IRS–Criminal Investigation who investigated this case, as well as Trial Attorneys Dennis R. Kihm and Andrea A. Kafka of the Tax Division, who are prosecuting the case.
Store Owner Sentenced to Prison and Forfeiture of Funds for Federal Food Program FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage store owner was sentenced by U.S. District Court Judge Timothy M. Burgess to 18 months imprisonment, along with forfeiture of over $42,000 in criminal proceeds in connection with a United States Department of Agriculture food aid program fraud scheme which he operated out of his Anchorage store.
In late 2013, Africa and Middle East Market store owner Ayub Yusuf Eprahin, 45, was charged by the federal grand jury with 15 counts of wire fraud and 11 counts of U.S. Department of Agriculture Supplemental Nutrition Assistance Program (SNAP) food aid fraud in connection with the illegal use of food aid debit cards. Eprahin, who plead guilty in 2014, to two counts of wire fraud, contested the overall loss amount of the scheme, claiming it amounted to only $42,000. In day-long and contentious sentencing hearing, Judge Burgess found that Eprahin had defrauded the United States Department of Agriculture of more than $335,000 over a period of 19 months. As part of that finding, Judge Burgess imposed a sentence of 18 months imprisonment, forfeited to the United States more than $42,000 in funds seized from Eprahin, and imposed a term of three years of supervised release.
According to Assistant U.S. Attorney Steve Skrocki, in November, 2012, Eprahin was the owner of the Africa and Middle East Market and a participant in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the “Food Stamp Program” administered by the United States Department of Agriculture’s Food and Nutritional Service. The program is designed to provide authorized nutritional foods to low-income families. The federal government pays the full cost of the SNAP benefits and also shares with the states some of the administrative costs. Under the SNAP program, authorized recipients are issued a certain amount of benefits each month, which they may use to purchase eligible food items. SNAP recipients typically receive their benefits in the form of a credit on their personal electronic benefit transfer card. The rules of the program prohibit the purchase of items other than food, and the card benefits cannot be redeemed for cash. As a participant in the program, Eprahin received computer issued payments based on unauthorized purchases made by participants from his store.
As part of the scheme Eprahin permitted non-food items and cash to be redeemed from participants in the program on a large scale. In so doing, Eprahin represented to the SNAP program that the benefits were being redeemed to purchase eligible food items when they in fact were not. Instead, Judge Burgess found that the cards were being used like ATM cards with amounts being debited for cash instead of food items required by the program and with some of that cash being wired overseas. Judge Burgess noted that Eprahin’s actions negatively impacted the community, other small businesses and the integrity of a government program designed to help and feed people in need, finding the offense, “very, very serious as hundreds of thousands were misused by not being provided to those it was supposed to help.”
Ms. Loeffler commends the Federal Bureau of Investigation, and United States Department of Agriculture, Office of Inspector General, who administers the SNAP program, for their investigation of this case.
St. Louis Man Sentenced for Drug and Money Laundering ConspiraciesRead the Press Release
A St. Louis man, convicted of Conspiracy to Distribute Methamphetamine and Conspiracy to Commit Money Laundering, was sentenced to 144 months in federal prison on February 20, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Zachary Weil, 36, of St. Louis, MO, received a 144 month sentence for offenses which occurred in St. Clair County, IL and in St. Louis, Mo. Weil had previously pled guilty to those offenses. Following release from imprisonment, Weil will serve a 5 year term of supervised release. Weil was also ordered to pay a $400 fine and a $200 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigations, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and United States Marshals Service. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
St. Charles, Missouri Man Sentenced on Firearm ChargeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Steven L. Carson, 27, of St. Charles, Missouri, was sentenced on Friday, February 20, 2015, to 30 months in federal prison for being a Felon in Possession of a Firearm.
Carson pled guilty to the federal charge on October 15, 2014 in U.S. District Court in East St. Louis, Illinois.
At his change of plea hearing in October, Carson admitted that he had possessed a .40 caliber semi-automatic pistol on May 6, 2012, in Brooklyn, Illinois. Carson was arrested as he was leaving the Pink Slip Topless Club in Brooklyn. Carson also admitted that he had been previously convicted of the felony offense of 1st Degree Burglary in 2005, in state court in St. Louis County, Missouri.
The investigation which resulted in Carson’s arrest and conviction was conducted by special agents of the Federal Bureau of Alcohol, Tobacco and Firearms (ATF).
The case was prosecuted by Assistant United States Attorneys Daniel T. Kapsak and Robert L. Garrison.
Secretary General Presents on Foreign Terrorist Fighters at White House, Visits Interpol WashingtonRead the Press Release
WASHINGTON, DC – On February 19, 2015, newly elected Interpol Secretary General Jürgen Stock visited the Interpol Washington office. While at the agency, Dr. Stock addressed Interpol Washington staff, highlighting the role effective information sharing can play via the world police body’s tools and resources and underscoring that the key to the organization’s strength lies in collaboration with Interpol’s 189 other member countries. Dr. Stock also emphasized the importance of defining Interpol’s core capabilities. After his remarks, the Secretary General toured the office, visiting with analysts in Interpol Washington’s 24/7 Interpol Operations and Command Center (IOCC) and meeting with Interpol Washington’s senior staff.
Prior to his visit at Interpol Washington, the Secretary General presented at a ministerial session during the White House Summit on Countering Violent Extremism. The meeting was organized by the U.S. Department of State and attended by Secretary of State John Kerry, Attorney General Eric Holder and Assistant Attorney General John Carlin. In his address, Dr. Stock underlined the effectiveness of Interpol’s Foreign Terrorist Fighter program to deter the movements of foreign fighters. The program represents the third pillar of President Barack Obama’s National Security Strategy and was lauded as a critical component in the fight against transnational crime in the United Nations’ Security Council Resolution 2178. The program has over 40 participating countries which share information on more than 1,500 suspected and confirmed fighters linked to Syria and Iraq. Foreign fighters may seek to travel with revoked passports, stolen or lost passports, or simply their own valid travel documents. In the first two cases, Interpol’s Stolen and Lost Travel Document database can make this information available at the frontlines. In cases where the individual’s valid passport information has been shared, Interpol global tools will generate hit alarms.
For more information on Secretary General Stock’s trip to Washington, DC, read Interpol’s press release at http://www.interpol.int/News-and-media/News/2015/N2015-015.
Seattle Man who Advertised Illegal Arsenal from Magnolia Apartment Sentenced to PrisonRead the Press Release
A man who sold guns and heroin from the basement apartment of a home in Seattle’s Magnolia neighborhood, was sentenced today in U.S. District Court in Seattle to six years in prison and three years of supervised release, announced Acting United States Attorney Annette L. Hayes. JORGE CARLOS CAMPS, 34, was arrested in May 2014, when law enforcement seized a dozen weapons including a Mac-11 submachine gun and silencer. The home was just a few blocks from a busy playground in a neighborhood park. CAMPS pleaded guilty in November 2014. At sentencing U.S. District Judge Richard A. Jones said CAMPS was dealing in “a dangerous combination of firearms and drugs.”
“This defendant played Russian Roulette with public safety by offering to put high powered firearms into the hands of anyone ready to pay,” said Acting U. S. Attorney Annette L. Hayes. “By ignoring the regulatory requirements that licensed dealers must comply with, Camps became part of the black market that regularly provides guns to convicted felons who often go on to use them to commit further crimes. Our communities should not have to deal with additional murders, assaults and armed robberies because of this defendant’s wrong doing.”
According to records in the case, on April 28, 2014, CAMPS sold heroin and a firearm to a person working with law enforcement. CAMPS sent pictures of various weapons via text message, along with a price list for the guns. He was selling assault rifles, tactical ballistic body armor, military grade ammunition, silencers, and a variety of tactical accessories. CAMPS also possessed, and was willing to sell, various badges and patches from area police departments. CAMPS has a prior felony conviction for violating a domestic violence court order and is prohibited from possessing firearms.
A second defendant, Roger Lee Hiddleston, 44, of Seattle, pleaded guilty in November 2014 and was sentenced to six years in prison for possessing a firearm and supplying heroin to CAMPS. Police stopped Hiddleston’s car after he left the Magnolia home. Inside they found heroin, methamphetamine, drug distribution materials, and $2,225 in currency. In the trunk they recovered a Sig Sauer Model P230 9mm Kurz semi-automatic pistol. Hiddleston is also prohibited from possessing firearms due to a domestic violence order.
The case was investigated by the Seattle Police Department, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Seal Beach Woman Sentenced to Nearly Three Years in Federal Prison for Operating Real Estate Scheme in Orange CountyRead the Press Release
SANTA ANA, California – A Seal Beach woman was sentenced today to 35 months in federal prison for operating a $1.4 million fraud scheme that bilked clients who paid money in response to false promises of ownership in commercial real estate.
Karen Hanover, 48, was sentenced by United States District Judge Josephine Staton, who scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims.
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies – Commercial Investment Education LLC and Kharmic Life Strategies Inc. Hanover pitched her “Fast Track” investment program to investors who attended seminars in Southern California, Dallas and Las Vegas, Nevada.
Victims were induced to invest between $19,000 and $29,000 in the real estate scam. In her pitches, Hanover “falsely represented to the ‘Fast Trackers’ that she would partner with them in real estate deals, they would receive 100 percent returns on their investments, and she would provide a 100 percent refund if they did not obtain a commercial property within a year,” according to court documents that noted these promises were false.
In sentencing papers filed with the court, prosecutors described how some victims invested borrowed money or all of their savings based on Hanover’s purported “guarantees.” When victims demanded the return of their money, Hanover engaged in “bullying and intimidation” – tactics that Judge Staton noted during today’s hearing when she said Hanover caused substantial harm, which was aggravated by threatening victims with jail time if they reported her.
Previously in this investigation, Hanover was found guilty at trial in October 2011 of impersonating an FBI agent for contacting the victims of her fraud scheme, using a telephone number designed to appear to be associated with the FBI and threatening them with arrest if they told others about her fraudulent conduct (for background see: http://www.fbi.gov/losangeles/press-releases/2011/la021011.htm). As a result of this separate case, Hanover was sentenced to six months in prison and ordered to pay a $5,000 fine.
This investigation was conducted by the FBI.
Release No. 15-016
Schuyler Man Charged with Distributing Methamphetamine Facing up to 40 years in PrisonRead the Press Release
United States Attorney Deborah R. Gilg announced the unsealing of a 3 count Indictment charging Jose J. Nevarez, age 43, of Schuyler, Nebraska, with distributing methamphetamine. The maximum possible penalty for the offenses includes not less than 5 years and up to 40 imprisonment, a fine of up to $5 million, a term of supervised release of at least 4 years, and a $100 special assessment.
The Indictment alleges that on 3 separate dates, Nevarez distributed more than 5 grams of actual methamphetamine in Schuyler, Nebraska. Nevares is scheduled for his initial appearance in Federal District Court in Omaha on Monday February 23, 2015.
This case was the result of an investigation by the Nebraska State Patrol.
Rothstein Associate Sentenced in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Frank Preve, 71, of Coral Springs, was sentenced today in Ft. Lauderdale by United States District Judge James I. Cohn to 42 months in prison, to be followed by two years of supervised release. On August 19, 2014, Preve pled guilty to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. In a written factual stipulation filed in connection with his guilty plea, Preve admitted that he worked for a number of companies, referred to as “the Banyon Group,” which solicited lenders and investors into the confidential settlement business being offered by Rothstein. The defendant further admitted that, from on or about July 9, 2009 through October 31, 2009, he defrauded investors by not disclosing that Rothstein had failed to make payments that were due to the Banyon Group, that Rothstein had frozen certain bank accounts that were holding investor funds, that certain paperwork was not being prepared, and that verification of the investments was not taking place, all in violation of a private placement memorandum which had been circulated to potential investors by the Banyon Group. The defendant further admitted that, through these material misrepresentations and omissions, Preve caused more than $20 million to be paid by investors to the Banyon Group.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Roseville Man Sentenced to 84 Months for Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Daniel Harrison McGrath, 60, resident of Roseville, California, was sentenced today by United States District Judge Garland E. Burrell, Jr. to 7 years in prison for possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, during an unrelated investigation, McGrath told investigating officers that he had images of child pornography on his computer. A subsequent search identified more than 3,000 images and videos of child pornography on McGrath’s computer and on multiple CDs created by McGrath. Some of the images showed prepubescent children, sadistic and masochistic conduct, and infants.
This case was the product of an investigation by the City of Roseville Police Department, the Sacramento County Sheriff’s Department, and the Federal Bureau of Investigation. Assistant United States Attorneys Todd A. Pickles and Kyle Reardon prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Rochester, New York - Man was Indicted by a Northern District of New York Grand Jury on One Count of Bank Robbery.Read the Press Release
Robbery of Summit Federal Credit Union in Syracuse Took Place in Broad Daylight
SYRACUSE, NEW YORK
RONALD REID (52) of Rochester, New York, was indicted by a Northern District of New York Grand Jury on one count of bank robbery, announces United States Attorney Richard S. Hartunian.
According to the Indictment, the defendant robbed the Summit Federal Credit Union on Erie Boulevard East in Syracuse on January 26, 2015, by demanding money from a teller. The crime allegedly occurred just before 1:00 pm. If convicted of bank robbery, Reid faces up to twenty years in prison.
The charges and allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Syracuse Police Department. The case is being prosecuted by Assistant United States Attorney Michael F. Perry. Please direct press inquiries to Executive Assistant U.S. Attorney John Duncan at 315-448-0672.
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Perry County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
On February 19, 2015, Stephanie A. Ellis, 36, DuQuoin, Ill., pled guilty to a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that the offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Evidence at the plea hearing established that Ellis was involved with others in the manufacture of methamphetamine. Four co-defendants have previously pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing. Two co-defendants have pled not guilty and are awaiting jury trial. Ellis is currently being held without bond pending a June 18, 2015, sentencing hearing.
The offense carries a possible prison term of up to 20 years, to be followed by 3 years’supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Perry County Resident Charged with Methamphetamine ConspiracyRead the Press Release
Jamie M. Trzinski, 28, of DuQuoin, was indicted on February 3, 2015, in a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that the offense occurred between 2012 and December 2014, in Perry, Jackson, and Randolph Franklin Counties. Trzinski made her initial appearance in federal court in Benton on February 19, 2015. At a February 20, 2015, bond hearing, Trzinski was ordered held without bond pending an April 20, 2015, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Perry County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Olin Man Pleads Guilty to Mail Fraud and Using Fire to Commit A Federal FelonyRead the Press Release
A man who submitted a fraudulent insurance claim after deliberately setting fire to his vacant home pled guilty today in federal court in Cedar Rapids.
James Marvin Plower, age 50, from Olin, Iowa, was convicted of one count of mail fraud and one count of using fire to commit a federal felony.
At the plea hearing, Plower admitted that, between about July 2013 and August 2014, he made upon a scheme to defraud his insurance company. Plower admitted that, as part of the scheme, he deliberately set fire to his vacant home in Martelle, Iowa, and then submitted an insurance claim in which he falsely claimed the fire was accidental. Plower also admitted that, as part of the scheme, he caused the insurance company to mail him a check for $66,497.46.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Plower was released on bond pending sentencing. Plower faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, $200 in special assessments, and up to 6 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by Iowa Division of Criminal Investigation, United States Postal Inspection Service, Iowa State Fire Marshal Division, and the Jones County Sheriff’s Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-12-LRR.
Follow us on Twitter @USAO_NDIA.
Notice of SentencingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that there will be a sentencing hearing Monday (February 23, 2015) in United States v. Warren Dominique McDaniel. The hearing will be held at 2:30 pm on Monday, February 23, 2015, before United States District Judge Michelle Childs (Courtroom # 2) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
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North Texas Man Indicted for False Statements While Under OathRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – U.S. Attorney John M. Bales announced today that a former executive has been indicted for making false declarations before court in a civil trade secrets case in the Eastern District of Texas.
Albert Davis, 54, formerly of Richardson, Texas, was arrested on Feb. 19, 2015 in Lewisville, Texas on a federal arrest warrant issued by the Eastern District of Texas and the Western District of Missouri. Davis was recently charged in Missouri for his role in a fraud scheme in which a Dallas-area hospital paid more than $1 million to purchase an MRI machine from Davis and co-conspirators who impersonated representatives of Kansas City-based Cerner Corporation. Davis will have a detention hearing on Feb. 25, 2015.
Davis was indicted on Feb. 19, 2015 in Tyler on three counts of false declaration before court. The indictment alleges that on May 5, 2014, Davis, while under oath as a witness in a case being tried before the U.S. District Court for the Eastern District of Texas entitled, LBDS Holding Company, LLC vs. ISOL Technology, Inc. et al., Docket No. 6:11-CV-428, knowingly made false material declarations.
If convicted, Davis faces up to five years in federal prison for each count.
The investigation leading to the charges was conducted by agents from the Federal Bureau of Investigation and the U.S. Attorney's Office for the Western District of Missouri. Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.
It is important to note that a grand jury indictment is not evidence of guilt.
New Ulm Felon Sentenced to 25 Years in Prison for Illegal Possession of Firearms and AmmunitionRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of BUCK OTTO WHITE a/k/a “TIMOTHY JOSEPH HOFFMAN,” 50, to 300 months in federal prison for illegally possessing stolen firearms and ammunition. WHITE was charged on April 7, 2014, with two counts of possession of firearms and ammunition by a convicted felon and two counts of possession of stolen firearms and ammunition. On April 25, 2014, following a three-day trial, a federal jury found WHITE guilty on all counts. The defendant was sentenced on February 13, 2015, before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
“Buck White is a career felon,” said Assistant U.S. Attorney Bradley Endicott. “As a result of his prior convictions, Mr. White cannot legally possess firearms. He is now facing 25 years in prison for his repeated illegal activity. This conviction would not have been possible without the investigative efforts of the ATF and our local partners in the New Ulm Police Department and Nicollet County Sheriff’s Office.”
As proven at trial, WHITE illegally possessed numerous firearms at a storage unit in Courtland, Minn., which included two rifles and two shotguns, as well as 140 rounds of ammunition. All of the firearms and ammunition were stolen during the course of a residential burglary in a nearby town. WHITE also illegally had a rifle and various stolen ammunition at his home in New Ulm, Minn.
During the pendency of his court proceedings, WHITE was released to a treatment facility and ordered to wear a location monitoring bracelet. The defendant on July 22, 2013, removed the GPS monitoring bracelet, fled the facility, and remained a fugitive until the U.S. Marshals arrested him on January 15, 2014. During the arrest, WHITE attempted to flee, leading officers on a high-speed car chase in a densely populated area of Minneapolis, Minn.
This case resulted from an investigation conducted by the New Ulm Police Department, the Nicollet County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorneys Bradley M. Endicott and John R. Marti.
Defendant Information: BUCK OTTO WHITE, a/k/a “TIMOTHY JOSEPH HOFFMAN,” 50
New Ulm, Minn.
Convicted: • Armed Career Criminal in Possession of Firearm, 1 count
• Armed Career Criminal in Possession of Ammunition, 1 count
• Possession of Stolen Firearms, 1 count
• Possession of Stolen Ammunition, 1 count
Sentenced: • 300 months in prison
• 5 years of supervised releaseNew Smyrna Man Sentenced to Federal Prison for Trafficking in FirearmsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Michael Alvin Carter (61, New Smyrna Beach) to 51 months in federal prison for knowingly selling firearms to a convicted felon and knowingly selling stolen firearms. The Court also ordered him to forfeit the firearms he had sold, specifically a Norinco SKS rifle, a Ruger Mini-14 rifle, a Mossberg 500A shotgun, a Yugo M58/66 7.62 caliber rifle, an H&R shotgun, a Magnum Research Desert Eagle .50 caliber handgun, a Ruger .357 SP101 revolver, and a Smith & Wesson Model 642-2 Lady Smith revolver.
Carter pleaded guilty on November 25, 2014.
According to court documents, in June 2012, Carter sold six firearms to a person that he knew was a convicted felon, but who, unbeknownst to Carter, was working with the FBI. A few weeks later, Carter sold two additional firearms that he knew had been stolen to an FBI undercover officer. During the sentencing hearing, the Court found that Carter had known that firearms he was selling would be used unlawfully by other persons.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
Nebraska “Sovereign Citizen” Sentenced for Obstructing Internal Revenue Service and Filing False Property Liens Against Federal OfficialsRead the Press Release
A La Vista, Nebraska, woman was sentenced today in U.S. District Court for the District of Nebraska in Omaha to serve 36 months in prison and three years of supervised release for tax obstruction, filing a false claim and filing false retaliatory property liens, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Donna Marie Kozak, a former college instructor, was convicted by a jury on Aug. 1, 2014, on all nine counts charged in the superseding indictment. At trial, the evidence showed that in 1997, Kozak stopped filing income tax returns, and from 1997 through 2012, she obstructed the Internal Revenue Service (IRS) by hiding assets, applying for tax-exempt status for a sham entity, filing a false claim for a tax refund, sending harassing correspondence to IRS agents, and filing false liens against an IRS-Criminal Investigation special agent and others.
In about 2009, Kozak joined the “Republic for the united States of America,” a sovereign citizen group, and was the group’s designated “governor of Nebraska.” In 2012 and 2013, Kozak and Georgia resident Randall Due conspired to file false liens in retaliation for the federal criminal tax prosecution and trial convictions of associates David and Bernita Kleensang. In furtherance of the conspiracy, Kozak and Due filed a false lien for $19 million on property located in Boyd County, Nebraska, that was owned by the federal U.S. District Court judge who presided over the Kleensang trial. After Kozak was indicted by a federal grand jury for the criminal tax charges and while on pre-trial release, she filed five more false liens on properties owned by another federal U.S. District Court judge, the U.S. Attorney for the District of Nebraska, two Assistant U.S. Attorneys and an IRS-Criminal Investigation special agent. Due was tried and convicted in the District of Nebraska on related charges on Sept. 4, 2014.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of the FBI and IRS-Criminal Investigation who investigated the case and Trial Attorneys Brian Bailey and Matthew Hoffman of the Tax Division, who prosecuted the case.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Berland Thomas, 44, an enrolled member of the Navajo Nation who resides in Mexican Springs, N.M., pled guilty this morning to a felony information charging him with involuntary manslaughter.
Thomas was arrested on June 9, 2014, on a criminal complaint charging him with murder. According to the complaint, Thomas allegedly killed a Navajo man by beating him with his fists during an alcohol-fueled fight. The fight occurred on June 6, 2014, on the Navajo Indian Reservation in McKinley County, N.M. Thomas was subsequently indicted on June 24, 2014, and charged with second degree murder.
During today’s change of plea hearing, Thomas pled guilty to an involuntary manslaughter charge and admitted assaulting the victim by striking, beating and wounding him. Thomas acknowledged that the victim died as a result of injuries suffered during the assault.
Under the terms of his plea agreement, Thomas will be sentenced to a term of imprisonment in the range of 18 to 24 months followed by a period of supervised release to be determined by the court. Thomas remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
Murphysboro Resident Sentenced for Methamphetamine and Crack Cocaine OffensesRead the Press Release
On February 19, 2015, Harold Lawayne Barron, a/k/a “Wayne,” 51, of Murphysboro, Ill., was sentenced for his involvement in a methamphetamine conspiracy and a crack cocaine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Barron, who had previously pled guilty to the two-count indictment charging conspiracy to manufacture methamphetamine and conspiracy to distribute crack cocaine, was sentenced to 156 months in prison, 3 years’ supervised release, and was fined $400. Evidence at the plea and sentencing hearings established that Barron was involved with Jamie Kay Kelly, a/k/a “Jamie K.” and others in the manufacture of methamphetamine. The methamphetamine offense occurred between August 2012, and October 2013, in Jackson and Perry Counties. Barron was involved with Kelly and Maurice L. Robinson, a/k/a “Ray Ray,” and others in the distribution of crack cocaine. The crack cocaine offense occurred between May 2013, and September 2013, in Jackson County. At sentencing, the district court found that Barron’s offenses involved at least 177 grams of pseudoephedrine and 64 grams of crack cocaine. Kelly and Robinson were previously sentenced to imprisonment terms of 84 months and 87 months, respectively, for their roles in the drug offenses.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Southern Illinois Enforcement Group, Murphysboro Police Department, Illinois State Police, and the Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Muncie man sentenced to 50 years for production of child pornographyRead the Press Release
Indianapolis – Josh J. Minkler, Acting United States Attorney, announced today that a Muncie man was sentenced in federal court for his role in the production and distribution of child pornography. Joel D. Hilton, 42, Muncie, was sentenced to 50 year by U.S. District Judge Tanya Walton Pratt.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Producing and distributing pornography re-victimizes our children every time it is passed from one person to another.”
In July 2014, agents from Homeland Security Investigations (HSI) and the Hamilton County Metro Child Exploitation Task Force (HCMCETF) received information a website that Hilton had access to, was being used to trade child pornography. Investigators examined the photographs and determined from the background, that many of the pictures were taken in Muncie, Indiana. Further investigation determined the victims were sisters, between seven and eight years old and Hilton had produced pornographic images by photographing the victims in sexually explicit activities. He would then post the images to a website to be traded with others in his networking group.
Investigators went to Hilton’s Muncie home to interview him and noticed a tattoo on his hand, similar to those depicted on internet pornographic photos. He was then placed under arrest. Law enforcement also confiscated several electronic devices used to produce and distribute the pornography.
Minkler praised the two investigative agencies, noting the arrest of Hilton was made less than six hours after authorities learned of his identity, saving many more potential victims.
This case was jointly investigated by Homeland Security Investigations and the Hamilton County Metropolitan Child Exploitation Task Force.
“The lengthy prison term in this case is well deserved," said Gary Hartwig, special agent in charge of HSI Chicago. "This individual manipulated and preyed upon vulnerable children for his own twisted sexual gratification. In doing so, he stole their innocence. HSI must and will do everything in our power to protect our children and bring those involved in these despicable crimes to justice.”
Andy Dietz, Director of the HCMCETF said, “This case underscores the value of having well trained investigators working together, and in cooperation across international boundaries focused on a single mission. The safety of our children is paramount and we will work with all of our local, state and federal partners to track down anyone who preys on the innocent.”
According to Senior Litigation Counsel Steven D. DeBrota, who prosecuted this case for the government, Hilton has multiple prior convictions for sex crimes and faces lifetime supervised release after serving his sentence.
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 http://www.justice.gov/publications/psc. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Mt. Morris Man Sentenced in Child Pornography CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Patrick Welch, 59, of Mt. Morris, NY, who was convicted of possession of child pornography, receipt of child pornography and distribution of child pornography, was sentenced to 240 months in prison and 10 years supervised release by U.S. District Judge Charles J. Siragusa. Due to a prior conviction, the charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that on May 13, 2013, the Livingston County Sheriff's Office received a lead from the Los Angeles County Sheriff's Office concerning a potential child exploitation case. A Los Angeles County Sheriff's investigator had received a cyber tip from the National Center for Missing and Exploited Children that two individuals appeared to be chatting about and trading child pornography on a certain internet site. Both individuals purported to be teenaged boys.
One of the individuals chatting used the screen name "David D." A search warrant was executed on the provided email account and images of child pornography were found. The internet protocol address for "David D" was registered to Welch's address on Scipio Road in Mt. Morris. After a search warrant was executed at the defendant's residence, a forensic review of one of Welch's computers was conducted and images of child pornography were found.
In 2003, the defendant was convicted in Livingston County of sexual conduct against a child and, following his conviction, he was required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Livingston County Sheriff's Department, under the direction of Sheriff Thomas J. Dougherty, and the Los Angeles County Sheriff's Department, under the direction of John L. Scott.
Milledgeville Couple Found Guilty of Tax FraudRead the Press Release
ATLANTA - Kenneth Horner and his wife Kimberly Horner have been found guilty of tax fraud following a three-day jury trial for skimming more than $1.5 million in cash from their business without disclosing the income.
“This jury recognized the defendants’ handling of cash for what it really was: a ploy to avoid disclosing income and paying taxes,” said Acting U.S. Attorney John Horn.
“In willfully failing to report their total business income to the IRS, the Horners cheated the system and dodged the same basic responsibility that millions of other business owners comply with every year: fairly and honestly reporting their earnings,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Today’s verdict establishes that those who engage in such criminal conduct will be held accountable. The Tax Division is committed to working with its law enforcement partners to identify, investigate and vigorously prosecute these offenders.”
“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Taxpayers deserve our vigilance in the investigation and prosecution of individuals who willfully underreport their income and evade the payment of their fair share of taxes.”
According to Acting United States Attorney Horn, the charges and other information presented in court: Kenneth and Kimberly Horner owned Topcat Towing and Recovery, Inc. (“Topcat Towing”), a towing business in Lithonia, Georgia. Between 2005 and 2008, Topcat Towing had an exclusive contract with DeKalb County, Georgia, for all county car tows needed from the south precinct of the county. Between 2005 and 2008, the defendants skimmed more than $1.5 million in cash receipts from their towing business and deposited those cash receipts into their personal bank account without disclosing the income to their tax return preparer or on corporate and personal tax returns filed with the IRS. The defendants tried to conceal their cash deposits from the government by “structuring” their deposits, which is the act of splitting up cash deposits that exceed $10,000 for the purpose of evading a Currency Transaction Report from being filed.
Most financial institutions, including banks, are generally required to file Currency Transaction Reports (CTRs) for cash transactions that exceed $10,000. CTRs are submitted to the U.S. Department of Treasury. In 2007 and 2008, the defendants used their unreported cash, in part, to build a custom home in Conyers that was appraised at more than $900,000. The defendants owe approximately $400,000 in taxes to the IRS for their unreported income.
The defendants were charged with filing false corporate and personal tax returns for the years 2007 and 2008. They were convicted of all four counts charged.
Sentencing for Kenneth Horner, 58, and Kimberly Horner, 53, both of Milledgeville, Georgia, is scheduled for May 6, 2015, at 10:00 a.m. before U.S. District Judge Timothy C. Batten Sr.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
DOJ Criminal Tax Division Trial Attorney Christopher J. Maietta and Assistant U.S. Attorney Steven D. Grimberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Miami Gardens Resident Convicted in Shooting of Miami Gardens Police OfficerRead the Press Release
On January 11, 2014, what began as a routine response to the scene of a fight at a Miami Gardens apartment complex ended in a dramatic firefight when Randy Thomas, 45, opened fire on a 25-year old police officer with Miami Gardens Police Department. Following a three-day trial, a federal jury convicted defendant Randy Thomas of being a felon in possession of a firearm.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Stephen E. Johnson, Chief, Miami Gardens Police Department, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
Following a call to 911, two police officers with Miami Gardens Police Department responded to the scene of a fight between Thomas and two women at an apartment complex. While one officer diverted his attention to the females, the second officer attended to Thomas, who had begun walking away. The officer testified that he was unaware that Thomas was armed as he casually approached Thomas and asked him to stop. The officer then recounted how Thomas spun around with a pistol in his hand and pointed it at the officer who was just four feet away. The evidence at trial also included a surveillance video that showed Thomas abruptly turning with his arm extended and then chasing after the officer.
A bystander described in chilling detail how the officer stepped back in shock when Thomas pulled a gun from his waistband and began to chase and shoot at the officer. The officer sought safety while retrieving his own firearm. The officer fired several shots at Thomas in an attempt to disarm Thomas. Undeterred, Thomas chased down the officer, and fired several shots at him, striking the officer in the leg and causing him to collapse on the sidewalk. The second officer testified that he witnessed the entire altercation and discharged his own firearm when he saw Thomas chasing and shooting at the officer. Yet another officer, who arrived at the moment of the shooting, testified that she pulled up in a patrol car at the precise moment of the shooting, and saw Thomas standing with his arm extended and shooting at the fallen officer.
Forensic analysis helped link the firearm to Thomas. The officer, who sustained a bullet wound to the thigh and received medical treatment at Ryder Trauma, has since recovered fully from his injuries.
At sentencing, which is currently set for April 24, 2015, at 2:00 p.m., Thomas faces a minimum of 15 years imprisonment and a maximum of a life sentence for his conviction of the federal crime of being a felon in possession of firearm. He also faces prosecution in a state case in which he is charged with attempted murder of a law enforcement officer.
Mr. Ferrer commended the Miami Gardens Police Department for their efforts in the investigation of this case. Mr. Ferrer also thanked the Bureau of Alcohol Tobacco and Firearms for their assistance and cooperation in this matter. This case was prosecuted by Assistant U.S. Attorney Cristina Moreno and Francisco Maderal.
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.
Merritt Island Man Sentenced to More Than Six Years for Possession and Receipt of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced James Otis Liptak (36, Merritt Island) to six years and six months in federal prison for receipt and possession of child pornography. The Court also ordered him to forfeit specific computers and hard drives on which the images of child pornography had been found. Liptak pleaded guilty on October 22, 2014.
According to court documents, on July 25, 2014, a Brevard County Deputy Sheriff and FBI Task Force Agent assigned to the Child Exploitation Task Force determined that someone using a computer with a specific Internet Protocol (IP) address was advertising suspected child pornography through a peer-to-peer file sharing program. Further investigation revealed that the computer was located at a residence in Merritt Island, Florida. Agents subsequently executed a federal search warrant at the house and found computers in Liptak’s bedroom. During an interview with agents, Liptak admitted that he had searched the Internet for the images and movies, and that he had stored them on his computer. A forensic examination of the computer’s hard drives revealed more than 5,000 images and 113 movies of child pornography.
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office Child Exploitation Task Force. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
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
Medical Drug Re-Packager and Company’s Senior Executives Indicted on Fraud Charges and Criminal Violations of the Food, Drug and Cosmetic ActRead the Press Release
Earlier today, a 37-count indictment was unsealed in Brooklyn federal court charging Med Prep Consulting, Inc. (“Med Prep”), a Tinton Falls, New Jersey, medical drug re-packager and processer, together with its president and owner Gerald Tighe and pharmacist-in- charge Stephen Kalinoski, with wire fraud and violations of the Federal Food, Drug and Cosmetic Act (“FDCA”) for introducing adulterated and misbranded drugs into interstate commerce with the intent to defraud and mislead the U.S. Food and Drug Administration (“FDA”) and Med Prep’s customers, who consisted of hospitals and other healthcare providers.1
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Margaret A. Hamburg, M.D., Commissioner of the FDA.
According to the indictment, Med Prep processed numerous drugs, including oncology and dialysis drugs, pain medications, anesthesia drugs, and operating room drugs, in purportedly sterile conditions. In an effort to gain market share, Med Prep repeatedly misrepresented to its healthcare provider customers that it adhered to, and in some areas exceeded, industry standards and laws applicable to sterile drug preparation. In fact, the defendants produced drugs in a facility that fell far short of basic industry standards of cleanliness, creating a risk to the health of already ill patients, and lied to healthcare providers about their failures to comply with basic sterility practices.
“As detailed in the indictment, Med Prep and its two most senior executives engaged in a disturbing pattern of dangerous practices in order to save money and line their pockets,” said U.S. Attorney Lynch. “Instead of working to extend and enhance human lives, the defendants illegally pursued corporate profits while putting at risk the health and safety of vulnerable patients suffering from disease. This indictment should send a strong message to those who would seek to put their bottom line before the health and safety of the public – those we entrust with preparing the medications that save lives must clean up their acts or face prosecution.” In announcing the indictment today, Ms. Lynch gratefully acknowledged the assistance and cooperation of the FDA’s Office of Criminal Investigations; the United States Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the United States Office of Personnel Management, Office of the Inspector General; the Department of Justice, Civil Division, Consumer Protection Branch and Commercial Litigation Branch; the FDA’s Office of the Chief Counsel; the Office of the Attorney General of New Jersey; and the New Jersey Board of Pharmacy.
“The production of unsafe and contaminated drug products poses a serious threat to the health of the American public and cannot be tolerated,” said FDA Commissioner Hamburg. “We continue to use all our authorities and to work with the Department of Justice and the states to ensure such practices are quickly identified and stopped. Americans deserve nothing less.”
According to the indictment, Med Prep halted its production of drug products in the summer of 2013 following an incident in which it had distributed intravenous drugs containing visible mold to a Connecticut hospital. Soon after mold was discovered, the FDA inspected Med Prep’s facility and documented numerous incidents of microbiological contamination in the company’s finished drug products. Notably, the investigators found that the same species of mold present in drugs sent to the Connecticut hospital was also present in Med Prep’s warehouse, where an unsterilized cart was regularly wheeled into a purportedly sterile “cleanroom” in which drugs were prepared by Med Prep employees. FDA investigators also found that Med Prep shipped drug products to healthcare providers in some instances that were mislabeled with incorrect drug strengths and in other instances were labeled as the wrong drugs altogether.
Prior to 2013, the FDA had conducted several inspections of Med Prep’s facilities and repeatedly warned the defendants that their practices and the conditions in their facility were unacceptable. Tighe and Kalinoski both allegedly misrepresented to FDA investigators that Med Prep’s complied with industry standards designed to prevent harm to patients that could result from non-sterility, yet they continued to handle sterile drugs in conditions far below any acceptable industry standards. As early as May 2007, Kalinoski learned that a Med Prep employee responsible for repacking and processing drugs in Med Prep’s “cleanroom” failed to treat an eczema skin condition for approximately five to six months while working in that room. The defendants never disclosed the employee’s skin condition to the FDA, nor did they take steps to prevent the delivery to, or issue a recall from, healthcare providers of any of the drug products with which the employee had come into contact.
If convicted, the individual defendants face maximum prison sentences of 20 years on each wire fraud charge, five years on the charge of conspiracy to violate the FDCA, and three years on each charge of violations of the FDCA.
The government’s case is being prosecuted by Assistant U.S. Attorneys Justin D. Lerer, Ameet B. Kabrawala, and Erin E. Argo.
1 The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
MED PREP CONSULTING, INC.
Tinton Falls, New Jersey
GERALD TIGHE
Age: 57
West Long Branch, New Jersey
STEPHEN KALINOSKI
Age: 51
Middletown, New Jersey
Maryland Man Sentenced for Sexual Exploitation of a Child in TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 27-year-old California, Maryland man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Felix Alexandro Pinto, Jr., pleaded guilty on Oct. 10, 2014, to transporting a minor with intent to engage in criminal sexual activity and was sentenced to 144 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on May 25, 2011, Pinto was pulled over for a traffic violation in Harrison County, Mississippi. During the stop, the deputy noticed the passengers, a male and female, appeared extremely nervous. Pinto advised the deputy that he had driven from Maryland to Houston and was returning to Maryland. The vehicle had been rented by Pinto in Maryland at 8:00 am the day before, approximately 30 hours before the traffic stop. While interviewing the female passenger, the deputy learned she was a 14-year-old runaway from Liberty County, Texas. As she was being transported back to Texas, the girl reported that Pinto had sexually assaulted her. This was confirmed by a sexual assault nurse’s examination (SANE) in Beaumont, Texas. Further investigation revealed Pinto met the girl through a social media website. They communicated by the internet and cellular telephone networks for about two months before Pinto drove to Liberty County and picked the girl up from school on May 25, 2011. During this time, Pinto sent the girl sexually explicit photos of himself and asked her to send similar photos of herself to him. At one point the girl asked Pinto if her only being 14 years old would be a problem and he replied it would not. A forensic examination of the girl’s cell phone confirmed the conversations and photos.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Harrison County, Mississippi, Sheriff’s Office, and Liberty County, Texas, Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.Manassas Man Pleads Guilty to Heroin TraffickingRead the Press Release
ALEXANDRIA, Va. – On the eve of trial, Bryan Christopher Samuel, 38, of Manassas, Virginia, pleaded guilty last night to conspiracy to distribute 700 grams or more of heroin and possession of a firearm in furtherance of a drug trafficking crime.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR351.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
Samuel was most recently indicted by a federal grand jury on December 16, 2014. He faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the statement of facts filed along with the plea agreement, Samuel obtained distribution quantities of heroin from various sources of supply around the D.C. metro area as well as the I-95 corridor. Typically, Samuel and his co-conspirators would repackage the larger quantities of heroin purchased into individual user amounts, which they would then sell throughout Prince William County, Virginia. In addition, Samuel possessed a firearm, which he used for protection once he began buying and selling larger quantities of narcotics as well as during the robbery of a perceived rival drug dealer.
This case was investigated by the FBI’s Washington Field Office with assistance from the Manassas City Police Department. Special Assistant United States Attorneys John Taddei and Elizabeth Eriksen, and Assistant U.S. Attorney Zach Terwilliger are prosecuting the case.Man Responsible for Placing Explosive Type Device at Colorado Springs Building ArrestedRead the Press Release
Click here for a copy of the Criminal Complaint and Affidavit charging Thaddeus Murphy
DENVER – Thaddeus Cheyenne Murphy, age 44, of Colorado Springs, Colorado, was arrested late yesterday on charges of arson and being a felon in possession of firearms, the U.S. Attorney’s Office, the FBI, ATF and Colorado Springs Police Department announced. Murphy is believed responsible for placing a device at 603 South El Paso Street in Colorado Springs. Murphy is scheduled to appear before U.S. Magistrate Judge Michael E. Hegarty at 2:00 p.m. this afternoon in the Arraj Federal Courthouse, 901 19th Street, where he will be advised of his rights and the charges pending against him. A detention hearing and preliminary hearing will be scheduled for a date to be set next week.
According to an affidavit in support of a Criminal Complaint, on January 6, 2015 at 10:48 am the Colorado Springs Police department received reports of an explosion at a building located at 603 South El Paso Street in Colorado Springs. Police officers responded, as did their bomb squad. Further, soon thereafter federal agents from the FBI and the ATF jointly responded to the scene to work with the police department in conducting the investigation. The device was a road flare and pipe bomb near a container of gasoline. The device was lit, causing an explosion. The gasoline did not ignite. The building and sidewalk were charred as a result of this device.
Multiple interviews were done by law enforcement of witnesses who noticed a specific type of truck and an individual fleeing the scene. Extensive investigation done by law enforcement eventually lead to the identification of a truck that closely matched the description of the truck fleeing the scene. Also, the person driving the truck generally resembled the sketch drawn by the Colorado Springs Police Department. After determining the individual’s identity, and developing probable cause that the owner of the truck, Thaddeus Murphy, was the likely person responsible for the device, federal agents working with the U.S. Attorney’s Office obtained a search warrant of the target’s home. While executing the warrant, agents and officers found seven firearms, and devices similar to the one used at the building. Murphy has prior felony convictions, which made it illegal for him to possess the firearms. Also during the search, Murphy was interviewed by federal law enforcement where he stated that the target of his criminal actions was not the NAACP, but that he had a different motive. The investigation continues regarding the motive for the attack. The residents of Colorado Springs, and the occupants of the building in question, can rest assured that the person who allegedly placed the device is now in custody.
Murphy is charged with one count of arson of a building. If convicted on that count, he faces not less than 5 years, and up to a $250,000 fine. He also faces one count of being a felon in possession of firearms. If convicted on that count, he faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case is being jointly investigated by the FBI, ATF and the Colorado Springs Police Department with support from the El Paso County Sheriff’s Office.
The defendant is being prosecuted by Assistant U.S. Attorneys Gregory Holloway and Beth Gibson.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury.
The charges in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Lummi Tribal Couple Sentenced to Prison for Dealing Heroin, Meth and Crack CocaineRead the Press Release
Two members of the Lummi Indian Tribe were sentenced today in U.S. District Court in Seattle to prison terms for conspiracy to distribute controlled substances, including heroin and methamphetamine, announced Acting U.S. Attorney Annette L. Hayes. TANYA JEFFERSON, 45, was sentenced to 18 months in prison, and her husband JOHN JEFFERSON, 37, was sentenced to 46 months in prison. Both were charged federally in August 2014, following an undercover investigation by the Lummi Police Department and the FBI. In November 2014, both entered guilty pleas admitting that on five different occasions in April 2013, the JEFFERSONs sold heroin or methamphetamine to a person working with law enforcement. At sentencing U.S. District Judge Richard A. Jones said, “Every time you sell drugs you impact someone’s life…. Anytime you introduce those drugs in your tribe, you don’t know what type of tailspin of addiction you have introduced.”
“Heroin and methamphetamine trafficking has no place in any of our communities, least of all on tribal lands,” said Acting U.S. Attorney Annette L. Hayes. “Heroin abuse is a growing problem in Western Washington and beyond, with an alarming increase in overdose deaths, especially among people under thirty. Last week I convened a heroin summit to focus community resources on battling what has become a growing epidemic of opioid abuse. I commend the work of our Tribal partners, the Lummi, to lead in the effort to prevent heroin use and overdose deaths.”
In partnership with Lummi public health agencies, Lummi Nation police officers are some of the first in Western Washington to be trained to recognize the symptoms of heroin or opioid prescription drug overdose and administer naloxone, an opioid blocker to help prevent needless overdose deaths in the community. In the first ten months of the program, officers have successfully administered naloxone in eleven overdose situations and saved lives that otherwise would have been lost.
JOHN JEFFERSON has a lengthy criminal history with 59 adult convictions for a range of offenses, including assault and battery, aggravated theft, violation of no-contact orders, and resisting arrest. His most recent conviction is for domestic violence against his wife, and in that case he attacked her to prevent her from calling the police. He also failed to complete his domestic violence treatment sessions. TANYA JEFFERSON has prior convictions for drug dealing and forgery. She is now barred by the tribe from the Lummi reservation because of her drug dealing.
The case was investigated by the Lummi Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Jerrod Patterson.
Long Beach Man Who Ran Sex Trafficking Ring That Prostituted Young Women Sentenced to 20 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Long Beach man was sentenced this morning to 20 years in federal prison for running a sex trafficking operation that victimized young women who he forced to work as prostitutes.
Roshaun Nakia Porter, 39, was sentenced today by U.S. District Judge Josephine L. Staton to a sentence of 240 months in prison, which will be followed by 10 years of supervised release.
In addition to the prison term, Judge Staton ordered Porter to pay $866,244 in restitution to 10 victims.
“Porter was the mastermind of a criminal enterprise who compelled numerous vulnerable women to surrender their bodies for considerable profit and personal sexual gratification,” federal prosecutors wrote in a sentencing memorandum filed with the court. “Porter’s callous and calculated conduct robbed his victims of their freedom, dignity and the proceeds of the illicit activities he compelled them to perform. For a period of almost two years, Porter engaged in calculated profiteering by enslaving and prostituting his victims.”
Porter pleaded guilty in July 2014 to conspiracy to engage in sex trafficking by force, fraud and coercion.
Porter’s co-defendant and protégé in the operation – Marquis Monte Horn, 40, also of Long Beach – was sentenced in October by Judge Staton to 78 months in prison after he pleaded guilty to conspiracy to engage in sex trafficking. Judge Staton also ordered Horn to pay $69,719 in restitution to one victim of the sex trafficking operation.
“Porter masterminded a reprehensible sex trafficking enterprise that caused extreme trauma and lasting injury to victims,” said Acting United States Attorney Stephanie Yonekura. “Over the course of nearly two years, Porter victimized young women with flagrant lies, bogus romantic overtures and acts of violence as he forced them to give up their bodies for his profit. This conduct is intolerable and warrants the lengthy sentence issued today by the court.”
David Bowdich, the Assistant Director in Charge of the FBI's Los Angeles Field Office, stated: “The defendant recruited unsuspecting victims as sex slaves through fraudulent promises of wealth and a better life. He then held them hostage by imposing physical beatings and issuing death threats while he cashed in on their suffering. The FBI is committed to protecting the civil rights of trafficking victims by identifying violent sexual offenders and pimps operating in our communities, and building federal cases to ensure they go to prison."
According to court documents and admissions in court, between 2010 and April 2012, Porter masterminded a scheme in which he exploited young women, including foreign nationals and U.S. citizens, by prostituting them in Orange County. Using various deceptive means – including false online personal advertisements posted on www.craigslist.com, www.modelmayhem.com and www.seekingarrangements.com – and fraudulent promises of legitimate employment, Porter reaped substantial illicit profits by luring his victims into personal relationships with him and, thereafter, compelling them to prostitute and provide him the proceeds from their commercial sex acts. To compel the victims into compliance, Porter used physical violence, psychological abuse, threats to harm the victims’ family members and other coercive means.
Horn admitted that between December 2010 and April 2012, he conspired to recruit and entice victims into Porter’s prostitution ring.
“The Department of Justice is steadfast in its commitment to prosecuting those who seek to profit from enslaving and exploiting others.” said Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “We will continue our unrelenting work to end the scourge of human trafficking and obtain justice on behalf of victims of these heinous crimes.”
Two other defendants pleaded guilty in connection with this case and are scheduled to be sentenced in the coming weeks.
This matter was investigated by the Federal Bureau of Investigation.
The case was prosecuted by the United States Attorney’s Office for the Central District of California and United States Department of Justice, Civil Rights Division, Human Trafficking Prosecution Unit.
Local Immigration Lawyer Arrested on Federal ChargesRead the Press Release
DALLAS — A Dallas attorney was arrested this morning on felony charges, outlined in a federal indictment returned by a grand jury earlier this week and unsealed today, stemming from her work in representing aliens, that is, non-U.S. citizens, before the U.S. Department of Homeland Security (DHS), U.S. Citizen and Immigration Service (USCIS), announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Sherin Thawer, 45, was arrested by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at her residence in Coppell, Texas. She made her initial appearance today before U.S. Magistrate Judge Stickney, who released her on conditions.
The seven-count indictment charges Thawer with one count of conspiracy to commit fraud in connection with immigration documents; one count of mail fraud; one count of transfer or use of the means of identification of another person; and four counts of aggravated identity theft.
According to the indictment, Thawer represented aliens before USCIS when they were applying for various types of visas to enter or remain in the U.S., including through obtaining U Nonimmigrant Status, also known as a U-Visa. To be eligible for a U-Visa, the alien must have been a victim of a certain crime, suffered mental or physical abuse as a result of the crime, and helped law enforcement in the investigation and/or prosecution of the crime. In addition to the U-Visa application, applicants are to submit a Law Enforcement Certification form completed and signed by the certifying official for the law enforcement agency that investigated and/or prosecuted the crime for which the alien was a victim.
The indictment alleges that beginning in approximately March 2012 and continuing until September 2014, Thawer submitted fraudulently completed and forged Law Enforcement Certification forms to USCIS to obtain U-Visas for the aliens she represented. These Law Enforcement Certification forms, containing the names and badge numbers of police officers, were completed without the knowledge or authorization of the police officers, and the signatures purporting to be those of the named officers were forged.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for the conspiracy charge is ten years in federal prison and a $250,000 fine. The statutory maximum for the transfer or use of the means of identification of another person charge is fifteen years in federal prison and a $250,000 fine, per count. The statutory maximum penalty for the mail fraud count is 20 years in federal prison and a $250,000 fine. Each of the aggravated identity theft counts carries a statutory penalty of a mandatory two years in federal prison and a $250,000 fine.
ICE HSI, the Irving Police Department, and USCIS are investigating. Special Assistant U.S. Attorney Dan Gividen and Assistant U.S. Attorney Aaron Wiley are prosecuting.