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Tuesday 6 January 2015
Statesville Man Sentenced to 10-Year Prison Term on Child Pornography ChargesRead the Press Release
STATESVILLE, N.C. – On Monday, January 5, 2014, U.S. District Judge Richard L. Voorhees sentenced Forest Skidmore, Jr., 48, of Statesville, N.C. to 120 months in prison on child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Skidmore was ordered to register as a sex offender and to serve the rest of his life under court supervision after his release from prison.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division and Chief Thomas A. Anderson of the Statesville Police Department.
Skidmore pleaded guilty in July 2014 to one count of possession of child pornography. According to filed documents and statements made in court, from on or about March 2012 to on or about May 2012, law enforcement became aware of Skidmore’s collection of child pornography, which he was downloading from and sharing over the Internet. Court records indicate that law enforcement executed a search warrant at Skidmore’s home and seized his computer. A forensic examination of Skidmore’s computer revealed that he possessed 166 images and 61 videos of children being sexually abused, including images of child pornography victims under the age of five. Court records show that the child pornography in Skidmore’s possession included at least 23 different children already identified by law enforcement as victims of child pornography.
Skidmore has been in custody since entering his guilty plea and will report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and the Statesville Police Department. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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
Statement from Attorney General Holder on the Passing of Former Governor Mario CuomoRead the Press Release
Attorney General Eric Holder released the following statement Tuesday on the passing of former Governor Mario Cuomo. The Attorney General Holder’s travel to New York to attend former Governor Cuomo’s funeral was canceled due to inclement weather.
“With the passing of Mario Cuomo, America has lost a giant and a true statesman – a leader of strength and rare humility; of wit and ceaseless compassion.
“Governor Cuomo was more than a distinguished public servant or a great American success story. Throughout his extraordinary life, he was a tenacious champion for those too often forgotten and too long overlooked. Through his words and his deeds, he gave voice to the voiceless, hope to the hopeless, and strength to all those who felt that they had been left out or left behind. As the son of Italian immigrants – hailing from my own hometown of Queens, New York – he never forgot his roots. He was always in step with the people he served, and with the glorious immigrant tradition that has always made America so great. His life’s work was inflected with sincere concern for all of his fellow citizens – no matter what they looked like or where they happened to be from. And in his own distinctive voice, he consistently challenged us not only to reach for great and untouched heights, but to extend a hand to those unable to make the journey alone.
“For decades, I have admired Governor Cuomo’s unwavering dedication to building an America that’s more fair, more free, and more equitable. I last spoke with him a few months ago, and will always be grateful for the advice and support he offered throughout my career. With his loss, a great progressive flame has gone out. But in the hearts of millions of Americans who heard his message, who knew his story, and who benefited from his passionate service, the fire that he ignited burns on.”
Skin care business charged with selling misbranded, unauthorized medical productsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging a Jefferson County, West Virginia business, its owner, and its president with distributing medical products without the approval of the U.S. Food and Drug Administration, United States Attorney William J. Ihlenfeld, II, announced.
David B. Phillips, 58, of Charles Town, West Virginia, owns and operates Phillips Technologies and Rebuilder Medical Technologies, Inc. in Jefferson County, West Virginia. Bryan Sheldon, 56, also of Charles Town, West Virginia, is the president of Rebuilder Medical Technologies, Inc.
An FDA investigation revealed that Phillips, Sheldon, and their corporate entities were manufacturing and distributing SilverCure Ointment, a product containing colloidal silver for use in treating molluscum, psoriasis and other skin conditions. The FDA has not approved drugs containing colloidal silver due to concerns over its lack of effectiveness and the risk of side effects. Such side effects include argyriais, a condition resulting in blue or gray discoloration of the skin resulting from an accumulation of silver or silver sulfide particles in the skin due to the prolonged intake of silver products.
Phillips represented to the FDA that his businesses would discontinue the production and sale of products containing colloidal silver. However, Phillips and his business continued to sell misbranded and unauthorized products containing silver.
Phillips, Sheldon, and Rebuilder Medical Technologies, Inc. are each charged with:• One count of “Conspiracy to Violate the Laws,” for which they each face five years in prison and a fine of up to $250,000.00.
• Four counts of “Introduction into Interstate Commerce of New Drug without Approval.” They each face up to three years in prison and a fine of up to $500,000.00 (corporation) or $250,000.00 (individuals) on each count.
• Four counts of “Mislabeling/Misbranding a Drug.” They each face up to three years in prison and a fine of up to $500,000.00 (corporation) or $250,000.00 (individuals) on each count.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Sabine Parish Man, Lincoln Parish Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Stephanie A. Finley announced that a Sabine Parish man and a Lincoln Parish man were sentenced Monday for one count of distribution of methamphetamine.
MANY RESIDENT SENTENCED TO 173 MONTHS IN PRISON
SHREVEPORT, La. – Jamal Holland, 28, of Many, La., was sentenced to 173 months by U.S. District Court Judge S. Maurice Hicks Jr. Holland was also sentenced to three years of supervised release. According to evidence presented at the September 9, 2014 guilty plea, law enforcement conducted controlled purchases of methamphetamine from Holland on September 18, 2013 and October 3, 2013. For both occasions, Holland was recorded selling a total of 39 grams of methamphetamine.
The DEA and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
CHOUDRANT MAN SENTENCED TO 10 YEARS IN PRISON
MONROE, La. – Christopher Takewell, 38, of Choudrant, La., was sentenced to 120 months by U.S. District Judge Robert G. James. Takewell was also sentenced to five years of supervised release. According to evidence presented at the September 25, 2014 guilty plea, law enforcement agents conducted a controlled purchase of 104.65 grams of pure methamphetamine in January of 2014 from Takewell at his home. The residence was searched on January 24, 2014, and the $6,250 used in the controlled purchase was recovered.
The DEA-Monroe Field Office, the Lincoln Parish Narcotics Enforcement Team and the Metro Narcotics Unit based in Monroe conducted this investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
“Methamphetamine is a powerful, highly addictive drug that threatens our communities,” Finley stated. “These sentences show our resolve to fight this illegal and dangerous drug activity.”
Roff Woman Sentenced to 36 Months Probation, $12,999 Restitution for Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MARY LOUISE FARRIS, a/k/a Mary Louise Allen, age 42, of Roff, Oklahoma, was sentenced to 3 years of probation and restitution of $12,999.00 for Theft Of Government Funds, in violation of Title 18, United States Code, Section 641.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleged that from on or about February 22, 2012 to on or about December 18, 2012, in the Eastern District of Oklahoma, the Defendant did willfully and knowingly embezzle, steal and convert to her own use, money and things of value from the Social Security Administration, an agency of the United States, which had been paid to Mary Lou Allen, as widow benefits, to which the defendant knew she was not entitled and having a value in excess of $1,000.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Ringleader Sentenced to More Than 20 Years in Prison Lawyer for His Role in Series of Robberies and Attacks in 2012Defendant Armed Himself with Baseball Bat to Accost Two Victims on Same Night; Five Others Convicted of Violent Offenses in OverallRead the Press Release
WASHINGTON – Leon Boyd, 39, the ringleader of a group of six men responsible for a series of armed robberies in 2012, was sentenced today to 20 years and 180 days in prison for robbing a man and attempting to rob a woman in separate incidents on the same night, both while he was armed with a baseball bat, U.S. Attorney Ronald C. Machen Jr. announced.
The attacks took place within just 20 minutes on the night of Aug. 12, 2012. In one attack, Boyd beat and robbed a man who was walking down a street, and in the other, he beat and attempted to rob a woman who was riding a bicycle.
Boyd, of Washington, D.C., was found guilty by a jury in June 2014, following a trial in the Superior Court of the District of Columbia, of armed robbery, assault with intent to rob while armed, and related offenses. He was sentenced by the Honorable Robert I. Richter. The prison time will run consecutively to a 10-year term that Boyd is now serving following his conviction on a related federal charge involving his unlawful possession of ammunition.
This sentencing was the culmination of a two-year investigation by the Metropolitan Police Department (MPD) and U.S. Attorney’s Office of a group of men who committed a series of violent armed robberies over the course of two weekends in August 2012. A total of six men were convicted of robbery and related offenses in the Superior Court of the District of Columbia and the U.S. District Court for the District of Columbia.
“Leon Boyd led a group of young men who viciously beat and robbed vulnerable victims, showing no regard for the injuries they were causing,” said U.S. Attorney Machen. “This sentence of 20 ½ years, on top of another 10-year prison term that Leon Boyd is now serving, will keep this dangerous man off our streets for decades.”
Boyd was found guilty of charges stemming from the first two attacks.
According to the government’s evidence, on Sunday, Aug. 12, 2012, at approximately 11:30 p.m., a 23-year-old man was returning home from a weekend away. As the man walked in the 100 block of 14th Street SE, carrying and wheeling his luggage, Boyd approached him. Armed with a baseball bat, Boyd beat and robbed the victim. A second man, Jon Charles Flowers, joined in the assault. They stole some luggage, cash, and a watch. The two men then fled in a getaway car driven by a third man, Tommy Branch. The victim suffered head injuries.
Boyd, Flowers, and Branch then drove to the vicinity of Cardozo High School in Northwest Washington, where they came upon a second victim at about 11:50 p.m. They spotted a 24-year-old woman who was riding her bicycle in the 100 block of 11th Street NW. Branch parked the car, and the three men got out. Flowers pushed the woman off the bicycle, and Boyd struck her twice in the face with a baseball bat, breaking her nose and eyeglasses. Branch joined in the attack. One of the assailants tried to steal the woman’s backpack, but she fought back ferociously while screaming. Flowers fled on foot and Boyd and Branch fled by car.
Flowers, 27, of Washington, D.C., and Branch, 23, of Fort Washington, Md., pled guilty to charges stemming from the Aug. 12, 2012 attacks. Flowers was sentenced to five years in prison, and Branch was sentenced to a 3 ½-year prison term for these crimes.
A similar set of crimes took place the following weekend.
According to the government’s evidence, shortly after midnight, early in the morning of Aug. 18, 2012, Branch and two other accomplices – Sunny B. Kuti and Michael Moore – saw the victim, Thomas “T.C.” Maslin. Mr. Maslin was walking home and at the edge of a park near Independence and North Carolina Avenues SE. During the ensuing robbery, Mr. Maslin raised his hands and said that all he had was a phone and bank card. As the robbery continued, Kuti struck Mr. Maslin in the side of the head, temporarily stunning him. Moore pushed Mr. Maslin, and Branch struck him in the side of the head with a baseball bat.
Branch and his accomplices took Mr. Maslin’s iPhone, bank card, and keys. They then drove to a gas station in the 1200 block of Pennsylvania Avenue SE, a few blocks away from the robbery scene. Branch tried to use Mr. Maslin’s bank card to buy gasoline, but the card was refused because he did not know the cardholder’s zip code.
Following this attack, Branch, Kuti, and Moore drove to the Barry Farm area of Southeast Washington, where they met a fourth man, Darrin L. Beal. They then set off for the Adams Morgan area of Northwest Washington to commit a second robbery.
At about 3:20 a.m., while Beal remained in the car, Branch, Moore, and Kuti, while armed with a non-functioning BB gun that resembled a real handgun, targeted three victims in an alley off of the 1800 block of 18th Street NW, violently assaulting one victim and taking a cellphone, wallet, and set of keys from another. All three men were captured by MPD officers responding to the report of the robbery.
Mr. Maslin was found, unconscious, by police at about 8:15 a.m. on Aug. 18, 2012, on the front porch of a rowhouse in the 700 block of North Carolina Avenue SE. He had a massive fracture to his skull and bleeding throughout the brain cavity due to the blow from the bat.
As the investigation of the robbery of Mr. Maslin progressed, law enforcement identified Branch, Moore, and Kuti as the three men who committed that attack. Also as a result of the investigation of the assault and robbery of Mr. Maslin, investigators identified Branch, Boyd, and Flowers as the three men who participated in the crimes that took place Aug. 12, 2012.
Branch and Kuti subsequently were found guilty at trial of charges stemming from the attacks on Mr. Maslin and the other victims on Aug. 18, 2012. Branch, was sentenced to 24 ½ years in prison; this sentence runs consecutively to the prison term of 3½ years that he received for the other attacks. Kuti, 19, of Washington, D.C., was sentenced to 10 years in prison.
Moore, 20, of Landover, Md., pled guilty to charges for his role in the crimes of Aug. 18, 2012, and was sentenced to a 4 ½-year prison term.
Beal, 27, of Washington, D.C., pled guilty to conspiracy to commit a crime of violence for his role in the Aug. 18, 2012 crimes. He was sentenced to a 40-month prison term.
In announcing today’s sentence, U.S. Attorney Machen praised the efforts of the patrol officers, crime scene technicians, and detectives of the Metropolitan Police Department, who investigated the case. He also commended the assistance of the Court Services and Offenders Supervision Agency and the Cellular Analysis Survey Team of the FBI.
U.S. Attorney Machen also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Victim/Witness Security Specialists Michael Hailey, Debra Cannon, and David Foster; Victim/Witness Services Coordinator La June Thames; Paralegal Specialists Jeanette Litz and Tameka Garcia; Litigation Technology Specialist Kimberly Smith; and Criminal Investigators Christopher Brophy, Durand Odom, and Derek Starliper. He also acknowledged the work of Assistant U.S. Attorneys Vincent Caputy and Darlene Soltys, who assisted with the investigation and prosecution of Boyd on federal charges; Assistant U.S. Attorneys Suzanne Curt, Katherine Kelly, Patricia Riley, and Peter Taylor, who provided legal research assistance, and Assistant U.S. Attorneys Jocelyn Ballantine and Clare Pozos, who assisted with the Branch and Kuti trials in Superior Court.
Finally, he expressed appreciation for the work of Assistant U.S. Attorney Thomas P. Swanton, who has investigated and prosecuted these cases for more than two years.
15-004Repeat Identity Thief Pleads Guilty to Mail Theft, Access Device Fraud and Aggravated Identity TheftRead the Press Release
A repeat offender with prior convictions for forgery and identity theft pleaded guilty today in U.S. District Court in Seattle, announced Acting U.S. Attorney Annette L. Hayes. BOBBIE DENISE CATTON, 50, pleaded guilty to two counts of possession of stolen mail, one count of access device fraud and one count of aggravated identity theft. When sentenced by U.S. District Judge James L. Robart, CATTON faces a mandatory minimum two years in prison for the aggravated identity theft that will run consecutive to any other prison time imposed on the other charges.
According to records filed in the case, between March of 2013 and January of 2014 CATTON and her cohorts stole large volumes of mail throughout King County from homes and apartment complexes. They used stolen checks, credit and debit card information and identifying documents to commit various types of fraud. When arrested by a King County Sheriff’s Deputy following a traffic stop, CATTON had dozens of credit/debit cards and bank statements in others’ names in her possession, along with financial and identifying information for hundreds of others.
CATTON was previously prosecuted federally in 2002 for identity fraud and was sentenced to 33 months in prison. She has multiple state convictions for, among other things, forgery and possession of stolen property.
The case was investigated by the King County Sheriff’s Office and the U.S. Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Quitman Man Sentenced to 210 Months in Prison for Producing Child PornographyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Quitman man was sentenced Monday to 210 months in prison for producing child pornography.
Christopher Nixon, 22, of Quitman, La., was sentenced by U.S. District Judge Robert G. James for one count of production of child pornography. He was also sentenced to serve 15 years of supervised release and is required to register as a sex offender. According to evidence presented at the September 5, 2014 guilty plea, between February 1, 2012 and March 30, 2012, Nixon produced child pornography using a male under the age of 18. Canadian law enforcement discovered the videos during an unrelated investigation in May of 2013. The videos depicted sex acts between Nixon and an underage male.
“This office will vigorously prosecute those who create, distribute and possess child pornography,” Finley stated. “Sexual abuse, including child pornography, is a growing problem and has devastating consequences for the victimized children. These children suffer additional physical and mental abuse as these images continue to circulate worldwide across the internet for many years, long after they were victims of the initial horrific acts. With this guilty plea, we have stopped the flow of these materials from one producer at the source. I would like to thank all who are involved and dedicated to halting the production of child pornography in this district.”
“This case shows anyone who produces child pornography can and will be held accountable for their criminal actions regardless of where in the world the investigation leads or how much time has passed,” said Raymond R. Parmer Jr., special agent in charge of Homeland Security Investigations-New Orleans. “Sexual abuse scars children for life, and HSI will continue to use all the tools in its arsenal, to include the HSI Operation Predator smartphone app that helped identify and locate Mr. Nixon in this case, to identify the perpetrators of these horrendous acts and seek justice on behalf of their victims.”
Homeland Security Investigations Shreveport, the Louisiana State Police, the Jackson Parish Sheriff’s Office and Canadian law enforcement investigated the case. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.Printing Company Owner Pleads Guilty in Manhattan Federal Court to Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT T. MADISON pled guilty today for his participation in a scheme to pay kickbacks to two executives of a pharmaceutical marketing company in exchange for printing contracts. MADISON pled guilty before U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “Rather than building a true business relationship, Robert Madison built one based on bribery –with everything from private jet travel to cash to payments at a “Gentlemen’s Club” – and deceit by directing the payments to third parties and controlled companies. Because of this, he will now pay over $1.4 million in restitution.”
According to the Indictment previously filed in Manhattan federal court, statements made during MADISON’s guilty plea, and other Court filings:
MADISON was the owner and operator of Creative Press, a printing and direct mail marketing company located in Phoenix, Arizona. MADISON’s company provided printing and direct mailing services to a New Jersey-based pharmaceutical marketing agency (the “Marketing Agency”). MADISON also owned and operated a company called East Coast Vending. From February 2007 through January 2009, ROBERT MADISON engaged in a scheme to commit honest services fraud by paying undisclosed kickbacks to, or for the benefit of, two executives at the Marketing Agency – Michael J. Mitrow and Matthew J. Mitrow – in order to continue the business relationship between the Marketing Agency and MADISON’s company.
MADISON took various steps to conceal from the Marketing Agency the kickback payments, including by causing certain payments to be made through East Coast Vending rather than Creative Press; causing payments to be made to third parties on behalf of Michael Mitrow and Matthew Mitrow rather than directly to them; and routing kickback payments through companies controlled by one of the executives and others.
Among the kickbacks that MADISON paid to or for the benefit of Michael Mitrow and Matthew Mitrow were the following: (i) over $700,000 in private jet travel by the Mitrows and their friends and relatives; (ii) approximately $426,000 to a company owned by one of the executives; (iii) approximately $39,000 in home renovations; (iv) a $19,000 payment to a New York City “Gentlemen’s Club;” and (v) approximately $30,000 in credit card debts.
MADISON, 43, of Henderson, Nevada, pled guilty to one count of conspiracy to commit honest services mail and wire fraud, and faces a maximum sentence of 20 years in prison. As part of his plea agreement with the Government, MADISON agreed to pay restitution of $1.416 million.
Michael Mitrow, 46, of Whitehouse Station, New Jersey, is charged with two counts of conspiracy to commit wire fraud, which each carry a maximum sentence of 20 years in prison, three counts of wire fraud, which each carry a maximum sentence of 20 years in prison, one count of tax evasion, which carries a maximum sentence of five years in prison, and one count of obstructing and impeding the IRS, which carries a maximum sentence of three years in prison.
Matthew Mitrow, 40, of Westfield, New Jersey, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges against Michael Mitrow and Matthew Mitrow are merely accusations, and they are presumed innocent unless and until proven guilty.
North Texas Man Sentenced to 87 Months in Federal Prison for Role in Stolen Identity Refund Fraud (SIRF) ConspiracyRead the Press Release
DALLAS — A North Texas man who pleaded guilty to his role in a stolen identity refund fraud conspiracy was sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Tonderai Sakupwanya was sentenced to 87 months in federal prison and ordered to pay more than $2.6 million in restitution. Sakupwanya, who is in custody, pleaded guilty in May 2014 to one count of theft of public funds.
Co-defendant Reminico Zhangazha, also in custody, pleaded guilty to the same offense and is awaiting sentencing. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could be ordered.
The plea agreements with the government note that the defendants will forfeit the following property seized by law enforcement in May 2012 during the investigation of this case: $10,613 cash seized from Zhangazha’s vehicle; $93,513 cash from Villa Piana Luxury Apartments on Noel Road in Dallas; and $4,500 from a residence on Spring Mountain in Plano, Texas.
According to the factual resumes filed in the case, Zhangazha and Sakupwanya engaged in a scheme to defraud the Internal Revenue Service (IRS) by obtaining stolen tax refunds that were generated by e-filing false and fraudulent income tax returns. They rented private mailboxes in the names of aliases by using forged United Kingdom passports. They then established bank accounts using the alias names and mailing addresses acquired at the private mailboxes. During the course of the scheme, Zhangazha used the aliases of “Martin V. Masters” and “Roy Daniel Black.” Sakupwanya used the aliases of “Webster G. Rice,” “Floyd Robbins,” and “Floyd Roberts,” during the scheme, according to the factual resume.
According to the factual resumes, the Forms 1040 directed the IRS to electronically deposit the refunds into bank accounts the defendants established. Alternatively, the Forms 1040 directed refunds to be issued by a treasury check and mailed to an address under the control of the defendants. The income tax returns also directed refunds to accounts established at a third-party financial services company, such as EPS Financial, that would enable them to issue a check containing the tax refund. These third party checks and the treasury checks were deposited into bank accounts the defendants established. After the checks were deposited, or the tax refunds were electronically deposited, the defendants would withdraw the funds for their own use and benefit. The factual resumes note that the cash, mentioned above, which was seized from the defendants during the investigation, was obtained by them as a result of their scheme.
The case was investigated by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
North Carolina Man Indicted on Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT was indicted for mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to the indictment, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the alleged scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property.
The indictment further alleges that ten or more investors, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, of Cary, North Carolina, was indicted by a federal grand jury on December 10th on one felony count of mail fraud. The indictment remained sealed until the defendant’s arrest, which occurred in North Carolina on December 29, 2014. His first court appearance in the Eastern District of Missouri was earlier today.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.North Carolina Man Indicted on Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT was indicted for mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to the indictment, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the alleged scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property.
The indictment further alleges that ten or more investors, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, of Cary, North Carolina, was indicted by a federal grand jury on December 10th on one felony count of mail fraud. The indictment remained sealed until the defendant’s arrest, which occurred in North Carolina on December 29, 2014. His first court appearance in the Eastern District of Missouri was earlier today.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Non-Indian Physician Employed by Indian Health Services Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Thomas Murray, 61, a non-Indian who resides in Acoma Pueblo, N.M., was arrested yesterday by the FBI on federal child pornography charges. Murray made his initial appearance in federal court earlier today. He remains in custody pending a preliminary hearing and detention hearing, both of which currently are scheduled for tomorrow morning.
Murray is a physician who relocated to New Mexico in Oct. 2014, from Ohio to take a position as a general practitioner with Indian Health Services at the Acoma-Canoncito-Laguna Service Unit located in Acoma Pueblo. Murray is charged in a criminal complaint with transporting, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.According to the criminal complaint, the FBI initiated the federal investigation leading to Murray’s arrest on Dec. 19, 2014, after receiving a report from the New Mexico Attorney General’s Office. The report alleged that investigation by an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Murray’s residential address in Acoma was being used to download and distributing images consistent with child pornography. According to the criminal complaint, the FBI arrested Murray and executed a federal search warrant at his residence on Jan. 5, 2015.
If convicted of the three charges in the criminal complaint, Murray faces a federal prison term of not less than five years and not more than 20 years. Murray also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the New Mexico Attorney General’s Office, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Nigerian Man Convicted of Human Trafficking in Belgium, Arrested in United States; Extradition Proceedings PendingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Edward Eguavoen, 45, of Nigeria, who was convicted in Belgium of human trafficking for the purposes of prostitution, was arrested and held for extradition.“To those who thought that slavery ended centuries ago, this case stands as a stark reminder that human beings are still being stolen and forced into incomprehensible conditions,” said U.S. Attorney Hochul. “Nor do the problems of the world avoid Buffalo. Because of the devastation that human trafficking brings to victims and society, this Office will not hesitate to prosecute any who would engage in this sort of unconscionable crime.”
Assistant U.S Attorney Paul J. Campana, who is handling the case, stated that according to the underlying complaint supporting the arrest, Eguavoen attempted to enter the United States at the Peace Bridge Port of Entry on December 21, 2014 using a Canadian passport under a different name. Subsequent investigation by the Department of Homeland Security determined that the defendant is wanted by Belgian authorities on a 2005 human trafficking conviction.
The Belgian conviction involves the forced inducement of seven Nigerian women for prostitution between July 1999 and November 2002. The victims were brought from Nigeria to Belgium by a criminal organization of which the defendant was a member. Once in Belgium, the victims were given documentation indicating Sierra Leon as their country of origin, and told to file applications for asylum in Belgium.
The victims were then taken and forced into prostitution in brothel houses controlled by the criminal organization. The victims were given “working names” and advertised in magazines and newspapers. The organization running the prostitution business threatened the victims to prevent them from speaking to law enforcement.
Sometime following his 2005 conviction, the defendant fled Belgium. The defendant was subsequently sentenced in absentia in October 2007 to concurrent seven year prison terms. The defendant had apparently been residing in Canada prior to his most recent arrest.
The defendant made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being detained. Eguavoen is due back in court on February 4, 2015 at 10:00 a.m.
The extradition arrest and complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Newton Grove Man Sentenced to 120 MonthsRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced GLEN ALLEN STEWART, JR., 24, of Newton Grove, North Carolina, to 120 months’ imprisonment followed by three years’ supervised release.
On May 13, 2014, a Federal Grand Jury returned a one-count Criminal Indictment charging STEWART with unlawful possession of a firearm and ammunition by a previously convicted felonOn October 16, 2014, following a three-day trial, STEWART was found guilty of the charge.
According to evidence produced at trial, STEWART was stopped by local law enforcement for a traffic violation. STEWART tried to flee during the traffic stop, but was apprehended. During the stop officers found STEWART to be in possession of a loaded Colt, Mark IV, .45 caliber firearm with an extended magazine, an additional magazine, and 58 rounds of ammunition.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Harnett County Sheriff’s Office; and the Dunn Police Department. Assistant United States Attorneys Jane J. Jackson and Erin Blondel handled the prosecution on behalf of the Eastern District of North Carolina.
Newington Man Sentenced to More Than 8 Years in Prison for Orchestrating Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FILIPPOS MILIOS, also known as Filip Milios, 56, of Newington, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 97 months of imprisonment, followed by five years of supervised release, for orchestrating a mortgage fraud scheme that involved dozens of Connecticut properties and resulted in nearly $5.7 million in losses to lenders.
According to court documents and statements made in court, from approximately June 2005 to July 2010, MILIOS and others conspired to defraud banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by MILIOS and others. The conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms and fraudulent down payments in connection with the purchase of more than 50 houses primarily located in Hartford, New Haven and Middlesex counties.
As part of the scheme, MILIOS purchased properties, either in his own name, in a limited liability corporation in which he had an interest, or in the name of a co-conspirator. MILIOS and others then recruited borrowers to purchase these properties. Unbeknownst to the lenders who extended mortgages to the borrowers, MILIOS and his co-conspirators submitted fraudulent documents in connection with the loan applications, including false HUD-1 forms, employment verification letters and rental verification letters.
MILIOS also made the down payments on behalf of the borrowers who were recruited to purchase the properties. Attorney Gabriel Serrano, who served as a closing attorney for most of the fraudulent transactions, often released the seller’s proceeds checks from closing to MILIOS before receiving the down payment, and MILIOS used the seller’s proceeds checks to purchase the down payment check for the same transaction. MILIOS also failed to disclose to mortgage lenders that he paid money to borrowers, mortgage brokers, and recruiters.
MILIOS also engaged in a money laundering conspiracy with Serrano. The conspiracy involved Serrano’s disbursing the fraudulently-obtained loan proceeds to the private lenders who had loaned MILIOS money when he originally purchased the properties.
Lenders lost $5,692,813 as a result of this scheme.
MILIOS was originally charged by criminal complaint in January 2013 and has been detained since March 20, 2014, when his bond was revoked after he made an attempt to flee the country on a shipping container vessel while awaiting trial. On September 15, 2014, he pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.
MILIOS, who is a citizen of Greece, faces immigration proceedings when he is released from prison.
On August 6, 2013, Serrano also pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering. Seven other co-conspirators involved in this scheme have also pleaded guilty. All await sentencing.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the U.S. Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Man Sentenced to Prison for Counterfeit Cash SchemeRead the Press Release
ERIE, Pa. - A former resident of Binghamton, New York, has been sentenced in federal court to 24 months in jail on his conviction of violating federal counterfeiting laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Larry Patterson, 60.
According to information presented to the court, Patterson manufactured counterfeit federal reserve notes by converting one and five dollar notes into $100 notes. Patterson then mailed the notes to a location in Pennsylvania where they were seized by law enforcement.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service and the Pennsylvania State Police for the investigation leading to the successful prosecution of Patterson.
Navy Commander Pleads Guilty to Accepting Cash and Prostitutes in International Bribery SchemeRead the Press Release
U.S. Navy Commander Admits Providing Contractor with Classified Ship Schedules; Becomes Fifth of Seven Defendants to Plead GuiltySAN DIEGO, CA – U.S. Navy Commander Jose Luis Sanchez pleaded guilty to bribery charges in federal court today, admitting that he provided a government contractor with classified ship schedules and other internal U.S. Navy information in exchange for cash, travel and entertainment expenses and the services of prostitutes.
Sanchez, 42, an active duty U.S. Navy Officer stationed in San Diego, is one of seven defendants charged – and the fifth to plead guilty – in the corruption probe involving Glenn Defense Marine Asia (GDMA), a defense contractor based in Singapore that serviced U.S. Navy ships and submarines throughout the Pacific.
Sanchez, the highest-ranking Naval official to plead guilty in the case so far, admitted to bribery and bribery conspiracy before U.S. Magistrate Judge David H. Bartick. A sentencing hearing was scheduled for March 27, 2015, at 9 a.m., before U.S. District Judge Janis L. Sammartino.
“Commander Sanchez lost sight of the Navy’s core values and embraced a lifestyle of greed,” said U.S. Attorney Laura Duffy. “We continue to unearth the full scope of this pernicious fraud and bribery scheme, and we will pursue the evidence, wherever it leads us.”
“Commander Sanchez sold out his command and country for cash bribes, luxury hotel rooms, and the services of prostitutes,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “After today’s guilty plea, instead of free stays at the Shangri-La hotel, Sanchez is facing many nights in federal prison. The Department of Justice’s Criminal Division is committed to prosecuting those who abuse positions of public trust for personal enrichment at the expense of national security and the American taxpayers.”
“During the course of the investigation into the criminal enterprise, investigators have compiled voluminous evidence identifying multiple persons of interest, generating numerous leads, and establishing and corroborating connections,” said Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS). “NCIS and our law enforcement partners are committed to seeing this massive fraud and bribery investigation through to its conclusion, so that those responsible are held accountable.”
“This outcome again sends the message that corruption will be vigorously investigated and prosecuted,” said Deputy Inspector General of Investigations James B. Burch of the Department of Defense, Defense Criminal Investigative Service. “This is an unfortunate example of dishonorable Naval officers who recklessly risked the safety of our troops by trading classified information for cash, extravagant gifts and prostitutes. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed. This investigation should serve as a warning that those who compromise the integrity of the United States will face their day of reckoning. DCIS and our law enforcement partners will pursue these crimes relentlessly.”
According to his plea agreement, from April 2008 to April 2013, Sanchez held various logistical positions with the U.S. Navy’s Seventh Fleet in Asia. Sanchez admitted that, beginning in September 2009, he entered into a bribery scheme with Leonard Glenn Francis, the CEO of GDMA, in which Sanchez provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to Francis and used his position and influence within the U.S. Navy to benefit GDMA. In return, Francis gave him things of value such as cash, travel and entertainment expenses, and the services of prostitutes. Sanchez admitted that this bribery scheme continued until September 2013.
In his plea agreement, Sanchez admitted to seven specific instances in which he provided Francis with classified U.S. Navy ship and submarine schedules. He also admitted using his position and influence with the U.S. Navy to benefit GDMA and Francis on various occasions. Further, Sanchez admitted that he tipped Francis off about investigations into GDMA overbillings and briefed Francis on internal U.S. Navy deliberations.
Sanchez further admitted that, in exchange for this information, Francis provided him with cash, entertainment and stays at high-end hotels. For example, in May 2012, Francis paid for Sanchez to stay five nights at the Shangri-La, a luxury hotel in Singapore, and, two months later, Francis paid for Sanchez’s travel from Asia to the United States, at a cost of over $7,500. According to the plea agreement, Francis arranged and paid for the services of prostitutes for Sanchez while Sanchez was in Singapore and elsewhere in Asia.
In addition to Sanchez, two other U.S. Navy officials – former NCIS Special Agent John Beliveau and Petty Officer First Class Dan Layug – have pleaded guilty in this case, as well as former GDMA executives Alex Wisidagama and Edmond Aruffo.
Also today, U.S. Navy Captain-Select (Commander) Michael Vannak Khem Misiewicz, 47, who was previously charged via information, was indicted by a federal grand jury in the Southern District of California on seven additional bribery counts.
According to allegations in the indictment, from at least as early as July 2011 until September 2013, Misiewicz provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to Francis and used his position and influence within the U.S. Navy to advance the interests GDMA. In return Francis allegedly gave him things of value such as cash, travel and entertainment expenses, and the services of prostitutes.
The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California and Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 13-CR-4287 Jose Luis Sanchez Age: 42 San Diego, CA CHARGESConspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
DEFENDANT Case Number: NYA Michael Vannak Khem Misiewicz Age: 47 San Diego, CA CHARGES
Bribery, in violation of 18 U.S.C. § 201Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
INVESTIGATING AGENCIES
Bribery, in violation of 18 U.S.C. § 201Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Multiple Clarksburg, WV residents charged with heroin, cocaine traffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury returned indictments today charging multiple Clarksburg, West Virginia residents with heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Jason Grant, 30, Whitney M. Golden, 25, and Marcus McBride, 24, all of Clarksburg, West Virginia, are alleged to have repeatedly sold heroin near the Monticello Avenue Playground in Clarksburg throughout late 2014.
Grant is charged with:
One count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Four counts of “Distribution of Heroin within 1000’ of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.00 on each count.
One count of “Possession With Intent to Distribute Heroin within 1000’ of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000.00.
One count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” for which he faces between five years and life in prison and a fine of up to $250,000.00.
Golden is charged with:
One count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin,” for which she faces up to 20 years in prison and a fine of up to $1,000,000.00.
One count of “Distribution of Heroin within 1000’ of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000.00.
One count of “Possession With Intent to Distribute Heroin within 1000’ of a Protected Location,” for which she faces between one and forty years in prison and a fine of up to $2,000,000.00.
All three defendants are charged with one count of “Maintaining Drug-Involved Premises – Aiding and Abetting,” for which they each face up to 20 years in prison and a fine of up to $500,000.00.
Douglas Dustin Lish, 29, and Brittany Faith Hurst, 24, both of Clarksburg, West Virginia, allegedly sold heroin and cocaine throughout late 2014.
Both defendants are charged with:
One count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” They each face up to 20 years in prison and a fine of up to $1,000,000.00.
One count of “Possession with Intent to Distribute Heroin.” They each face up to 20 years in prison and a fine of up to $1,000,000.00.
One count of “Maintaining Drug-Involved Premises – Aiding and Abetting,” for which they each face up to 20 years in prison and a fine of up to $500,000.00.
Lish is further charged with:
Three counts of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each count.
One count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” for which he faces between five years and life in prison and a fine of up to $250,000.00.
One count of “Felon in Possession of a Firearm,” for which he faces up to ten years in prison and a fine of up to $250,00.00.
One count of “Distribution of Cocaine,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Al-Teric Garrett, 23, of Clarksburg, West Virginia, was allegedly involved in heroin and cocaine trafficking throughout 2014. He is charged with one count of “Possession with Intent to Distribute Heroin Within 1000 Feet of a Protected Location” and two counts of “Distribution of Cocaine Base Within 1000 Feet of a Protected Location. He faces between one and forty years in prison and a fine of up to $2,000,000.00 on each of the three counts.
The Greater Harrison County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated all of the defendants. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in investigating Lish and Hurst.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Mount Vernon Man Charged in White Plains Federal Court with Threatening to Shoot Police OfficersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JEREMY MOTT on charges of threatening to shoot members of the Police Department of the City of Mount Vernon, New York. The Complaint alleges that MOTT posted messages on Internet social media sites in which he threatened to shoot Mount Vernon police officers and included a digital image depicting the shooting of a police officer.
MOTT was taken into federal custody today. He was presented in White Plains federal court before U.S. Magistrate Judge Lisa Margaret Smith and was released on bond.
U.S. Attorney Preet Bharara stated: “We will not tolerate threats of violence against police officers. Period. Here, as alleged, social media were used for the threat. Law enforcement should not have to wait to see whether a threat will be acted on, so now the defendant will have to answer for his threatening intentions, as charged.”
FBI Assistant Director-in-Charge George Venizelos stated: “As we seen all too often, social media is used as a platform for posting threats against members of the law enforcement community. As alleged, Mott made significant online threats in which he threatened to shoot Mount Vernon police officers. Those who threaten the lives of law enforcement officers through interstate communications will be fully investigated by the FBI and our partners.”
According to allegations in the Complaint unsealed today in White Plains federal court:
MOTT posted messages on Facebook and Instagram, both of which included digital images of an individual discharging a firearm into a police vehicle through the driver’s side window. The Facebook message included the threat, “I SWEAR IF COPS IN MOUNT VERNON THINK THEY CAN FOLLOW THE MADNESS THIS IS HOW THEY GOING TO END UP.” The Instagram message included the threat, “THEY BETTER KEEP THAT CRAZY SHYT AWAY FROM MOUNT VERNON CAUSE ME & MY [N****S] NOT PLAYING NO GAMES WITH THEM PPL ! !”
MOTT, 24, of Mount Vernon, New York, is charged with one count of making interstate threats, which upon conviction carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, Homeland Security Investigations, the City of Yonkers Police Department, the Westchester County Department of Public Safety, and the Westchester County District Attorney’s Office. He also thanked the Police Department of the City of Mount Vernon. He added that the investigation is continuing.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Douglas Zolkind is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mott.complaint.signed
Miami Dock Builder Sentenced for Building Illegal Structures in Navigable WatersRead the Press Release
A Miami dock builder was sentenced to one year probation for building illegal structures in navigable waters.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), and Colonel Alan M. Dodd, U.S. Army Corps of Engineers, made the announcement.
Jose Miguel Calvo, of Miami, Florida, was sentenced for the violation of federal law involving the illegal construction of structures, including docks and piers, in navigable waters of the U.S., in violation of the Rivers and Harbors Act. He was sentenced on one misdemeanor count of knowingly placing and erecting structures, docks, and piers within navigable waters of the U.S., without, or in violation of, valid permit issued by the U.S. Army Corps of Engineers authorizing such conduct.
Pursuant to the terms of the plea agreement, Calvo must file any necessary permit applications for ten Miami-area installations, and complete any corrective action required by the Army Corps of Engineers pursuant to the Rivers and Harbors Act, to include modifications or alterations of the structures, including the payment of mitigation for damage to natural resources.
Mr. Ferrer commended the investigative efforts of EPA’s Criminal Investigation Division and the U.S. Army Corps of Engineers. This case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney and FBI Assistant Director Announce Arrests of Five Defendants in Multimillion-Dollar Corporate Accounting FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of STEVEN KAITZ, LATCHMEE MAHATO, a/k/a “Robbie,” JONATHAN WHEELER, and ZACHARY KAITZ, former executives and employees of a New Jersey-based company that provided in-store displays for retailers (the “Company”), and KATHLEEN SMITH, a former employee of a New York-based sports apparel and footwear retailer that was a major customer of the Company (“Customer-1”), in connection with an elaborate scheme to defraud the Company’s lenders and customers out of millions of dollars. Among other things, the defendants fraudulently inflated the Company’s sales and accounts receivables to secure millions of dollars in loans, and falsely verified to the Company’s lenders and outside auditors false financial information about the Company. The defendants were arrested this morning and are expected to be presented later today in Manhattan federal court before United States Magistrate Judge James L. Cott. The defendants will be arraigned tomorrow at 4:00 p.m. before United States District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants went to elaborate lengths to falsify company accounting data to defraud lenders and customers. To bolster the falsehoods, the defendants allegedly created fake email accounts for fictitious employees of the defrauded customers. Now they will be made to answer for the charged collusion and self-dealing that supplanted honest business practices.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, the defendants concocted a scheme to make millions of dollars and concealed their misdeeds by lying to customers and lenders. Their dishonesty resulted in unjust enrichment at the expense of unsuspecting customers, burdening lenders with bad loans and weakening our financial markets. Those who engage in this type of financial fraud will be identified and held accountable.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:
STEVEN KAITZ, WHEELER, and MAHATO (the “Management Defendants”) were the three owners and principals of the Company, and ZACHARY KAITZ served as the Company’s Vice President of Creative Services. SMITH worked for Customer-1 – one of the Company’s two largest customers – and was the director of a business unit that handled visual displays for Customer-1. From approximately 2012 to May 2014, in order to trick various lenders into lending millions of dollars to the Company, the defendants engaged in a scheme to falsely inflate the Company’s revenue and accounts receivables, and as part of the scheme, made and caused to be made materially false and misleading statements about the Company’s financial condition. To create the false impression of sales, the defendants created phony documents, including fake and falsely inflated purchase orders purporting to reflect sales to the Company’s customers. The defendants also tricked certain of the Company’s customers, including Customer-1, into paying falsely inflated invoices from the Company. For her role in the scheme, SMITH received substantial kickbacks from the Management Defendants that included cash payments, personal family vacations, and home renovations.
The defendants took elaborate steps to keep the scheme afloat and prevent the Company’s lenders and outside auditors from discovering the fraud. For example, STEVEN KAITZ, WHEELER, and MAHATO created fake email accounts purporting to belong to fictitious employees of Customer-1 and “Customer-2” (a multinational designer and manufacturer of athletic footwear, clothing, and accessories, with U.S. headquarters in Portland, Oregon). To do so, the defendants used domain names that were very similar to the actual domain names used by Customer-1 and Customer-2. These defendants operated the fake email accounts themselves, pretending to be employees of Customer-1 and Customer-2, and then used those fake email accounts to “verify” false information about the Company’s financial condition, including its sales and accounts receivables, to the Company’s lenders and outside auditors. Further, at the Management Defendants’ direction, and in exchange for kickbacks, SMITH also falsely “verified” to the Company’s lenders certain financial information concerning the Company, including the amounts of money that Customer-1 supposedly owed the Company, even though SMITH knew those amounts were false. SMITH also caused Customer-1 to pay invoices from the Company that she knew were falsely inflated.
As another example of the steps taken to keep their scheme afloat, STEVEN KAITZ, WHEELER, and MAHATO utilized shell companies to engage in “round-trip” transactions to create the false appearance that customers were paying the Company’s phony outstanding receivables. ZACHARY KAITZ, who was skilled in graphic design, helped carry out the fraud by creating fraudulent documentation, such as fake invoices, purchase orders, and bills of lading, to support the false representations to the lenders about the Company’s business.
STEVEN KAITZ, WHEELER, and MAHATO misappropriated approximately $2.8 million of the loan proceeds for their own personal use, to pay for homes and luxury cars, private school tuition, and personal credit card bills, as well as kickbacks to SMITH.
As of May 2014, when the Company’s lenders terminated their lending relationships with the Company after discovering the fraud, the Company had approximately $18.6 million in loans outstanding.
STEVEN KAITZ and ZACHARY KAITZ are also charged in a separate mortgage fraud scheme based on their creation of fake documents that STEVEN KAITZ used to secure a mortgage for a vacation home in Martha’s Vineyard, Massachusetts.
STEVEN KAITZ, 56, of Jersey City, New Jersey, is charged with one count of conspiracy to commit bank fraud and wire fraud, and two counts of bank fraud, each of which carries a maximum sentence of 30 years in prison; and one count of conspiracy to commit honest services wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years.
LATCHMEE MAHATO, a/k/a “Robbie, 49, of Jamaica, Queens, is charged with one count of conspiracy to commit bank fraud and wire fraud, and one count of bank fraud, each of which carries a maximum term of 30 years; and one count of conspiracy to commit honest services wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years.
JONATHAN WHEELER, 46, of Southport, Connecticut, is charged with one count of conspiracy to commit bank fraud and wire fraud, and one count of bank fraud, each of which carries a maximum term of 30 years; and one count of conspiracy to commit honest services wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years.
KATHLEEN SMITH, 49, of South Plainfield, New Jersey, is charged with one count of conspiracy to commit bank fraud and wire fraud, and one count of bank fraud, each of which carries a maximum term of 30 years; and one count of conspiracy to commit honest services wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years.
ZACHARY KAITZ, 31, of Brooklyn, New York, is charged with one count of conspiracy to commit bank fraud and wire fraud, and two counts of bank fraud, each of which carries a maximum sentence of 30 years; and one count of wire fraud, which carries a maximum sentence of 20 years.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Rosemary Nidiry are in charge of the prosecution.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Steven Kaitz, et al. Indictment
Man Sentenced to Prison for Harboring Illegal AlienRead the Press Release
Contact: Steve Young
A Texas man who harbored an illegal alien was sentenced today to nine months in federal prison.
Roman Sanchez, age 33, from Mission, Texas, received the prison term after a September 18, 2014, guilty plea to one count of harboring, encouraging, and inducing an alien to reside in the United States.
In a plea agreement, Sanchez admitted that in March and April 2014 he recruited a Mexican citizen to work and reside in the United States in violation of the law. Knowing that this person was not authorized to live or work in the United States, Sanchez employed him to build and tear down grain bins in Texas and Iowa.
Sanchez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Sanchez was sentenced to nine months’ imprisonment and fined $2,000. A special assessment of $100 was imposed, he was ordered to make $500 in restitution, and pay $2,000 in legal fees. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Sanchez was released on the bond previously set and is to surrender to the United States Marshal on January 26, 2015.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Homeland Security Investigations; the Fayette County Sheriff’s Office, the Winneshiek County Sheriff’s Office, the Bremer County Sheriff’s Office, and the Iowa Department of Transportation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2038.
Luzerne County Man Sentenced to 72 Months in Prison for Conspiracy to Commit Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gregory Boone, age 30, Pittston, Pennsylvania, was sentenced today by Senior U.S. District Court Judge Edwin M. Kosik to 72 months in prison for conspiring with others to recruit, harbor, and transport minor females to engage in commercial sex acts for money during the summer of 2013 in Luzerne and Dauphin counties.
According to United States Attorney Peter Smith, Boone previously admitted to participating in a scheme to use minor females to engage in prostitution. Boone and his co-conspirators used cell phones to produce and transmit photographs of the females which were posted on a website to facilitate prostitution activities in motels in Luzerne County and in the Harrisburg area of Pennsylvania.
Boone was indicted by a federal grand jury in December 2013, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Pittston Police, and the Luzerne County District Attorney’s Office.
Judge Kosik also ordered Boone to serve a life term of supervised release following his prison sentence. Boone will also have to register as a sex offender and comply with sex offender registration, notification, and association requirements.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a
nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Lakewood Man Faces Child Pornography ChargesRead the Press Release
William S. Burnett, 59, of Lakewood, Ohio, was charged last week with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about October 28, 2012, through on or about September 20, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Burnett knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on October 22, 2014, Burnett possessed a computer hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Judge Sentences Felon to 41 Months in Prison for Illegal Gun PossessionRead the Press Release
ERIE, Pa. - A former resident of Lancaster, Pennsylvania pleaded guilty and was sentenced in federal court to 41 months in jail on his conviction of violating federal guns laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Nicholas Alexander Reynolds, 23.
According to information presented to the court, on or about December 19, 2013, Reynolds possessed a firearm while being a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service and the Titusville Police Department for the investigation leading to the successful prosecution of Reynolds.
Greenville Man Sentenced for Selling CocaineRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced CECIL VANN GILBERT, 31,of Greenville, North Carolina, to 188 months in prison and 3 years of supervised release for three counts of distribution of cocaine and one count of possession with the intent to distribute cocaine and aiding and abetting. GILBERT previously pled guilty to these charges on October 16, 2014.
Between May 14, 2014, and May 27, 2014, the Greenville Regional Drug Task Force used an informant to buy cocaine from GILBERT on four occasions. On July 2, 2014, officers planned to arrest GILBERT. Officers attempted to stop a car in which GILBERT was riding; however, the driver, Alex Stancil, refused to stop and drove at a high rate of speed on and around Kristin Drive in Greenville. An officer deployed “stop strips” which deflated the car’s tires and the car wrecked into a tree. GILBERT and the driver, Alex Stancil, were arrested. Officers found 13.88 grams of cocaine and .33 grams of marijuana in the car.
GILBERT received an enhanced punishment as a career offender based on his two prior state convictions for discharging a weapon into occupied property.
The investigation of this case was conducted by the Greenville Regional Drug Task Force. The Greenville Regional Drug task force is comprised of officers from the Pitt County Sheriff’s Office, Greenville Police Department, North Carolina State Bureau of Investigations, Farmville Police Department, East Carolina University Police Department and the Winterville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Frederick Man Admits to Fraudulently Accessing His Former Employer’s Computer SystemRead the Press Release
Fraudulently Copied Personal Information on Over 11,000 Clients
Baltimore, Maryland – Alexander Afonso, age 40, of Frederick, Maryland, pleaded guilty yesterday to identity theft.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, Afonso worked as an IT manager/systems administrator at Service Coordination, Inc. (SCI), a non-profit corporation principally located in Frederick, for approximately three months. SCI provides case management services to Marylanders with intellectual and developmental disabilities. SCI terminated Afonso’s employment on October 13, 2013, and informed Afonso that his authorization to access SCI’s computers systems had been revoked.
However, beginning on October 17, 2013, Afonso repeatedly accessed the computer systems of SCI remotely through the Internet, without authorization from SCI. Alfonso used the username and password of a current SCI employee who was on disability leave at the time. Afonso obtained information concerning the computer network of SCI, and copied personal identifying information data on 11,238 SCI clients, which he emailed from the current employee’s account to himself.
As a result of Afonso’s conduct, SCI spent $38,672 to retain forensic examiners to respond to the breach of its systems and restore the security of its systems. SCI also incurred $12,473 in printing and mailing required breach notifications to all affected clients. SCI has also been required to offer identity theft protection to all its affected clients, and has spent $63,712 for protection services accepted by affected clients. Finally, SCI also incurred significant costs in employee and executive team time which was redirected from SCI work to respond to the breach.
The total loss attributed to the fraudulent scheme is between $70,000 and $120,000.
Afonso faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Marvin J. Garbis scheduled sentencing for March 23, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney P. Michael Cunningham and Special Assistant U.S. Attorney Anthony V. Teelucksingh, who are prosecuting the case.
Four Siblings Sentenced to Prison Terms for Carrying Out Two Robberies in D.C. and Maryland-Crimes Took Place Within 36-Hour Period in May 2014-Read the Press Release
WASHINGTON – Three brothers and their sister, all from Washington, D.C., were sentenced today to prison terms for a pair of robberies that took place within a 36-hour period of a convenience store in Montgomery County, Md. and a bank in the District of Columbia.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The brothers – Alex Alexander, Alvin Alexander and Allante Alexander - pled guilty in October 2014 in the U.S. District Court for the District of Columbia to one count of conspiracy to interfere with interstate commerce by robbery and one count of bank robbery. Their sister – Allesha Alexander – pled guilty in October 2014 to one count of conspiracy to interfere with interstate commerce by robbery and one count of acting as an accessory to bank robbery.
The Honorable Senior Judge Paul L. Friedman sentenced Alex Alexander, 22, to 36 months in prison; Alvin Alexander, 24, to 39 months; Allante Alexander, 20, to 36 months, and Allesha Alexander, 25, to 20 months. Upon completion of their prison terms, they will be placed on three years of supervised release. The judge also ordered them to pay $958 in restitution.
According to the government’s evidence, the Alexander brothers entered the Colombo Bank, in the 1300 block of 9th Street NW, at approximately noon on May 12, 2014. After leaving the bank, they decided that they were going to return at some point to rob it.
On May 13, 2014, and continuing into May 14, 2014, according to the government’s evidence, the Alexander brothers and their sister were riding around the District of Columbia, in the sister’s vehicle, when they decided they were going to rob a convenience store located at a gas station in the 8300 block of Colesville Road in Silver Spring, Md.
When the four siblings arrived at the convenience store at approximately 2:55 a.m. on May 14, 2014, they entered the establishment and robbed the attendant of about $158 before fleeing the scene and returning to the District of Columbia.
On May 15, 2014, at approximately 10:30 a.m., the Alexander brothers returned to the Colombo Bank on 9th Street NW, in their sister’s vehicle. According to the government’s evidence, the three brothers entered the bank while their sister waited inside her vehicle. The brothers robbed the teller of approximately $800 before fleeing to the waiting vehicle. In fleeing the scene, they dropped the money.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of Legal Assistant Candice Sisco, Paralegal Specialist Starla Stolk, and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney David B. Kent, who prosecuted the case.
15-005Four Men Plead Guilty to the Armed Robbery of Armored Truck EmployeesRead the Press Release
Stole Over $79,000 and Attempted to Murder a Witness Who Called 911
Greenbelt, Maryland – Four men have pleaded guilty to the armed robbery of employees who were transporting money in an armored truck, and to brandishing a firearm during a crime of violence. Antonio Lamar Cooper, age 27, of Washington, D.C.; Maurice Lorenzo Foreman, age 22, of Oxon Hill, Maryland; and Eugene Robert Watkins, age 22, of Washington, D.C., pleaded guilty late yesterday, the day before they were scheduled to go to trial. Co-defendant Juwan Armarni Watkins, age 21, of Washington, D.C. pleaded guilty on December 29, 2014.The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to their plea agreements and court documents, on January 15, 2014 the defendants drove a stolen vehicle to a restaurant on Allentown Road in Morningside, Maryland. Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun. Another defendant pointed his gun at the second employee’s head and took his gun as well. The defendants, all or some of whom were wearing masks and brandishing firearms, robbed the employees of $72,106.54 in cash, $4,028.81 in checks, and personal property.
During their escape, a citizen who witnessed the robbery followed the defendants from the scene of the robbery, and called 911 while in pursuit. The defendants realized that the witness was following them and shot at the witness, hitting the windshield and body of the witness’ vehicle several times. During that shooting, the witness was struck in the face by glass and/or bullet fragments.
According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee. With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.The defendants face a maximum sentence of 20 years in prison for interfering with interstate commerce by robbery; and a mandatory minimum of 10 years in prison, consecutive to any other sentence, and up to life in prison for using a firearm during the robbery. U.S. District Judge George Jarrod Hazel has scheduled sentencing for Cooper on March 16, 2015, at 9:30 a.m., for J. Watkins on March 20, 2015 at 1:30 p.m., for E. Watkins on April 28, 2015, and for Foreman on April 29, 2015, both at 9:30 a.m. All of the defendants remain detained.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner, Michael T. Packard and William D. Moomau, who are prosecuting the case.
Fort Myers Man Sentenced on Federal Child Pornography ChargesRead the Press Release
Fort Myers, Florida - United States District Judge John E. Steele has sentenced John J. Hanlon, Jr. (22, Ft. Myers) to seven years in federal prison, followed by ten years of supervised release, for distributing and possessing child pornography. He pleaded guilty to the charges in October 2014.
According to court documents, between June 12, 2013, and July 14, 2013, Hanlon distributed videos depicting child pornography to an undercover FBI task force agent using an Internet peer-to-peer network. A federal search warrant was obtained for Hanlon’s residence and all of his electronic media-related items were seized. Forensic analyses of the seized items revealed more than 800 images and videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Resident Agency. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Virginia Governor Sentenced to Two Years in Prison for Public Corruption SchemeRead the Press Release
The former Virginia Governor Robert F. McDonnell, 60, of Glen Allen, Virginia, was sentenced today to two years in prison for soliciting and obtaining payments, loans, gifts and other items from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., Star Scientific’s then chief executive officer, in violation of federal public corruption laws.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office, Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) and Virginia State Police Superintendent Colonel W. Steven Flaherty made the announcement. Senior U.S. District Judge James R. Spencer of the Eastern District of Virginia imposed the sentence.
Robert McDonnell and his wife, Maureen McDonnell, were convicted following a jury trial of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was also convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted of two counts of honest services wire fraud counts and four counts of obtaining property under color of official right. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of eight of 13 counts.
“Robert McDonnell corrupted the most powerful office in Virginia and fractured the public’s trust,” said Assistant Attorney General Caldwell. “Taking bribes in exchange for official actions is not politics as usual – it is an insidious crime that strikes at the heart of public service and will not be tolerated.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific and Jonnie R. Williams Sr. The McDonnells obtained these items in exchange for the former governor performing official actions to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to evidence presented at trial, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous items. As part of the scheme, Robert McDonnell arranged meetings for Williams with Virginia government officials, hosted and attended events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors, contacted other Virginia government officials to encourage Virginia state research universities to initiate studies of Star’s products, and promoted Star’s products and facilitated its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing gifts and loans through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Maureen McDonnell is scheduled to be sentenced on Feb. 20, 2015.
The case was investigated by the FBI, IRS-CI and the Virginia State Police, and is being prosecuted by Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber and Ryan S. Faulconer of the Eastern District of Virginia.
Former Virginia Governor Sentenced to Two Years in Prison for Public Corruption SchemeRead the Press Release
RICHMOND, Va. – Former Virginia Governor Robert F. McDonnell, 60, of Glen Allen, Virginia, was sentenced today to two years in prison, followed by two years of supervised release, for soliciting and obtaining payments, loans, gifts and other items from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., Star Scientific’s then chief executive officer, in violation of federal public corruption laws.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer.
Robert McDonnell and his wife, Maureen McDonnell, were convicted following a jury trial of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was also convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted of two counts of honest-services wire fraud and four counts of obtaining property under color of official right. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of eight of 13 counts.
“As Governor of the Commonwealth of Virginia, Robert McDonnell violated the public’s trust and tarnished the highest office in state government,” said U.S. Attorney Boente. “This investigation, prosecution and sentence will help restore and maintain the high integrity of the governor’s office, while affirming our commitment to prosecuting public officials who commit crimes.”
“Robert McDonnell corrupted the most powerful office in Virginia and fractured the public’s trust,” said Assistant Attorney General Caldwell. “Taking bribes in exchange for official actions is not politics as usual—it is an insidious crime that strikes at the heart of public service and will not be tolerated.”
“This case was always about dishonesty and corruption,” said Special Agent in Charge Lee. “Today’s sentence illustrates that plainly. As I’ve said before, public corruption is the FBI’s highest criminal investigative priority and we will respond to any credible allegation of a public official subverting the public’s trust for their personal gain. I hope the court’s action today brings closure to Virginia’s concerned citizens and gives them reassurance that no one is above the law.
“Public officials hold positions of trust in the eyes of the public. Former Governor Robert McDonnell broke that trust when he used his government office for personal gain and today he is being held accountable for his criminal conduct,” said Richard Weber, Chief, IRS-Criminal Investigation. “IRS-CI will continue to investigate public corruption to ensure everyone plays by the same rules—regardless of job or elected position held.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific and Jonnie R. Williams Sr. The McDonnells obtained these items in exchange for the former governor performing official actions to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to evidence presented at trial, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous items. As part of the scheme, Robert McDonnell arranged meetings for Williams with Virginia government officials, hosted and attended events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors, contacted other Virginia government officials to encourage Virginia state research universities to initiate studies of Star’s products, and promoted Star’s products and facilitated its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing gifts and loans through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Maureen McDonnell is scheduled to be sentenced on February 20, 2015.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia, and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-12.
Former Toyoda Gosei Executive Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
A former executive of Japan-based Toyoda Gosei Co. Ltd. has agreed to plead guilty and to serve one year and one day in a U.S. prison for his role in a conspiracy to fix prices and rig bids of automotive hoses installed in cars sold in the United States, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Northern District of Ohio in Toledo against Makoto Horie, a Japanese national. According to the charge, Horie along with co-conspirators, conspired to fix the prices of certain automotive hoses sold to Toyota Motor Corp. and certain of its subsidiaries, affiliates and suppliers, in the United States. According to the charge, Horie participated in the conspiracy from at least as early as March 2007 until at least September 2010. In addition to the prison term, Horie has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“The charge today once again demonstrates the Antitrust Division’s vigorous commitment to holding individuals accountable for engaging in anticompetitive conduct,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division’s ongoing investigation has resulted in more than two dozen executives serving prison time for their participation in illegal conspiracies involving auto parts.”
Toyoda Gosei manufactures and sells a variety of automotive parts, including certain automotive hoses. On Sept. 29, 2014, the Department of Justice announced that Toyoda Gosei had agreed to plead guilty and pay a $26 million criminal fine for its role in this conspiracy and another conspiracy involving automotive airbags and steering wheels.
Horie, a Japanese national, was employed at Toyoda Gosei North America, in Troy, Michigan, a subsidiary of Toyoda Gosei, as Vice President of Sales between March 2007 and December 2007, and as Senior Vice President of Sales between January 2008 and January 2010; and was employed at Toyoda Gosei in Japan as a sales general manager between February 2010 and September 2010.
To date, 49 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of over $2.4 billion in fines.
Horie is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, Lima Resident Agency with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 1-216-522-1400.
Former Topeka Man Pleads Guilty to Social Security FraudRead the Press Release
KANSAS CITY, KAN. – A former Topeka man pleaded guilty Tuesday to Social Security fraud, U.S. Attorney Barry Grissom said.
Brian David White, 43, who now lives in Kansas City, Mo., pleaded guilty to one count of Social Security fraud. In his plea, he admitted that the Social Security Administration paid more than $88,800 in disability benefits after he returned to work and failed to report it to the SSA.
In 2002, the SSA approved White’s application for disability benefits based on an inflammatory arthritis condition that made him unable to work. While receiving benefits, he attended Washburn University in Topeka and obtained a degree in radiologic technology. After earning his degree, he worked as a technician at Holton Community Hospital in Holton, Kan. Later, he began working full-time for the University of Kansas Medical Center in Kansas City, Kan. He admitted that he intentionally failed to report this work activity to the SSA so that he could obtain disability payments he was no longer entitled to receive.
Sentencing is set for April 6. He faces a maximum penalty of 5 years in federal prison, a fine up to $250,000 and restitution. Grissom commended the office of Inspector General for the Social Security Administration and Special Assistant U.S. Attorney Trey Alford for their work on the case.
Former Owner and President of Pennsylvania Consulting Companies Charged with Foreign BriberyRead the Press Release
The former owner and President of Chestnut Consulting Group Inc. and Chestnut Consulting Group Co. (generally referred to as the “Chestnut Group”) was indicted by a federal grand jury today for his alleged participation in a scheme to pay bribes to a foreign official in violation of the Foreign Corrupt Practices Act (FCPA) and the Travel Act, and to launder proceeds of those crimes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division made the announcement.
“We are committed to combating foreign corruption, across the globe and across all industries, through enforcement actions and prosecutions of companies and the individuals who run those companies,” said Assistant Attorney General Caldwell. “As alleged, in this case, the owner and chief executive of a Pennsylvania financial consulting firm secured hundreds of millions of dollars in business by bribing a European banking official. He now faces an indictment for corruption in federal court. Bribery of foreign officials undermines the public trust in government and fair competition in business. The charges returned today reflect the clear message that we will root out corruption and prosecute individuals who violate the Foreign Corrupt Practices Act.”
“We will aggressively investigate and prosecute individuals in our district who use corrupt means like bribery to influence foreign officials,” said U.S. Attorney Memeger. “Our criminal statutes in this arena must be enforced to ensure fair dealing in a competitive global marketplace where foreign officials often hold significant decision-making authority. The alleged conduct here was particularly reprehensible because it undermined the legitimacy of a process designed to support businesses for the citizens of developing nations.”
“This is a great example of the FBI’s ability to successfully coordinate with our international law enforcement partners to tackle corruption,” said Special Agent in Charge Hanko. “Bribery – foreign or domestic – cripples the notion of fair competition in the marketplace.”
Dmitrij Harder, 42, of Huntingdon Valley, Pennsylvania, the former owner and president of the Chestnut Group, was charged with one count of conspiracy to violate the FCPA and Travel Act, five counts of violating the FCPA, five counts of violating the Travel Act, one count of conspiracy to commit international money laundering, and two counts of money laundering.
According to allegations in the indictment, the European Bank for Reconstruction and Development (EBRD) was a multilateral development bank headquartered in London, England, and was owned by over 60 sovereign nations. Among other things, the EBRD provided financing for development projects in emerging economies, primarily in Eastern Europe.
According to allegations in the indictment, Harder and others paid bribes for the benefit of a senior official at the EBRD in exchange for influencing the official’s actions on applications for financing submitted by the Chestnut Group’s clients and for directing business to the Chestnut Group. The EBRD ultimately approved applications for financing from two of the Chestnut Group’s corporate clients; the first resulted in the EBRD providing an $85 million investment and a 90 million Euro loan, while the second resulted in a $40 million investment and a $60 million convertible loan. The Chestnut Group allegedly earned approximately $8 million in “success fees” as a result of the EBRD’s approval of these two applications.
The indictment alleges that Harder made five payments totaling more than $3.5 million to the sister of the EBRD official, in part as an effort to conceal the bribes. These payments were allegedly made for purported consulting and other services provided to the Chestnut Group by the official’s sister, when in fact she provided no such services. Harder also allegedly participated in creating fake documents to justify these payments.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Philadelphia Division. The Criminal Division’s Office of International Affairs also provided assistance.
The case is being prosecuted by Assistant Chief Leo R. Tsao of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michelle Morgan of the Eastern District of Pennsylvania.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Owner of Bucks County Financial Consulting Firm Charged with Bribing Foreign OfficialRead the Press Release
PHILADELPHIA - Dmitrij Harder, 42, of Huntingdon Valley, PA, was charged today by indictment with violating the Foreign Corrupt Practices Act and money laundering. Harder is the former owner and President of Chestnut Consulting Group, Inc. (“Chestnut”), a financial consulting firm that was located in Southampton, Pennsylvania.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
The indictment alleges that Harder participated in a scheme to pay bribes to a foreign government official and then laundered the proceeds of those crimes. Between 2007 and 2009, Harder allegedly paid approximately $3.5 million in bribes to corruptly influence a foreign official’s actions on applications submitted by clients of his and of the Chestnut Group, and to corruptly influence the foreign official to direct business to him, the Chestnut Group, and others.
The European Bank for Reconstruction and Development (“EBRD”) was a multilateral development bank headquartered in London, England, and was owned by over 60 sovereign nations. Among other things, the EBRD provided debt and equity financing for development projects in emerging economies, primarily in Eastern Europe. According to the indictment, Harder knew a senior banker at the EBRD from prior business dealings. The senior banker was responsible for leading the review of the applications for loans and equity investments, and also set the terms and conditions for that financing. Harder allegedly paid bribes to the senior banker in order to gain a favorable outcome in the review of applications for financing submitted by his clients. According to the indictment, the EBRD ultimately approved applications for financing from two of Chestnut’s corporate clients: an $85 million equity investment with a 90 million Euro loan; and a $40 million equity investment with a $60 million convertible loan. Chestnut allegedly earned approximately $8 million in “success fees” as a result of the EBRD’s approval of these two applications.
It is further alleged that the defendant made five payments, totaling more than $3.5 million, to the sister of the official at the EBRD in an effort to conceal the bribes. These alleged payments were made purportedly for consulting and other services provided to Chestnut by the official’s sister, when, in fact, she did not provide such services. According to the indictment, the defendant also participated in the creation of fake documents in an attempt to justify these payments to the official’s sister.
“We will aggressively investigate and prosecute individuals in our district who use corrupt means like bribery to influence foreign officials,” said Memeger. “Our criminal statutes in this arena must be enforced to ensure fair dealing in a competitive global marketplace where foreign officials often hold significant decision-making authority. The alleged conduct here was particularly reprehensible because it undermined the legitimacy of a process designed to support businesses for the citizens of developing nations.”
“This is a great example of the FBI’s ability to successfully coordinate with our international law enforcement partners to tackle corruption,” said Special Agent-in-Charge Hanko. “Bribery – foreign or domestic – cripples the notion of fair competition in the marketplace.”
“We are committed to combating foreign corruption, across the globe and across all industries, through enforcement actions and prosecutions of companies and the individuals who run those companies,” said Assistant Attorney General Caldwell. “As alleged, in this case, the owner and chief executive of a Pennsylvania financial consulting firm secured hundreds of millions of dollars in business by bribing a European banking official. He now faces an indictment for corruption in federal court. Bribery of foreign officials undermines the public trust in government and fair competition in business. The charges returned today reflect the clear message that we will root out corruption and prosecute individuals who violate the Foreign Corrupt Practices Act.”
Harder is charged with one count of conspiracy to violate the Foreign Corrupt Practices Act and Travel Act, five counts of violating the Foreign Corrupt Practices Act, five counts of violating the Travel Act, one count of conspiracy to commit international money laundering, and two counts of international money laundering. He faces a maximum possible statutory sentence of 190 years in prison, fines of up to $1.75 million, twice the value of the property involved in the transaction, or twice the value gained or lost.
The case is being investigated by the FBI’s Philadelphia Division. Significant assistance was also provided by the Criminal Division’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorney Michelle Morgan of the Eastern District of Pennsylvania and Assistant Chief Leo R. Tsao of the Criminal Division’s Fraud Section.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
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Former Midamar Operations Manager Pleads GuiltyRead the Press Release
Contact: Steve Young
Philip G. Payne, 50, of Ryan, Iowa, pleaded guilty today to one count of conspiracy to make and deliver false certificates and writings. Prosecution would be deferred on two additional counts pursuant to an agreement yet to be approved by the court. Payne entered his plea of guilty in United States District Court in Cedar Rapids.
According to facts admitted by Payne today, between about April 2007 and December 2009, employees of Midamar Corporation of Cedar Rapids, Iowa, knowingly and without authorization, removed USDA marks of inspection from meat products and replaced them with marks of inspection from facilities other than where the meat was slaughtered. This was done at the direction, and with the knowledge and approval, of Midamar’s owners and managers. Further, false USDA export documents, health certificates, and Halal export certificates were generated for at least 22 shipments of beef during the same period. These and other actions were taken with the intent to make the beef eligible for import into countries that would otherwise not have accepted the beef shipments.
Payne, the former Operations Manager for Midamar also admitted as part of his plea agreement that, as demand for Halal beef supplied by Midamar grew, Midamar supplemented its sales of purported Halal beef with kosher beef slaughtered by rabbis, without any participation or oversight by a Muslim slaughterman.
Payne could be sentenced up to one year imprisonment and fined up to $100,000. A term of supervised release of up to one year could be ordered following any term of imprisonment.
The case is being prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy Vavricek, and was investigated by the Department of Agriculture Office of Inspector General, and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00143-LRR. ph Two.
Former Macy Residents Sentenced for Copyright InfringementRead the Press Release
United States Attorney Deborah R. Gilg announced that Carroll Webster, III, age 21, and Kayla Parker, age 22, of Wanblee, South Dakota, were sentenced for their convictions of copyright infringement. Senior United States District Court Judge Lyle E. Strom sentenced Webster and Parker to 5 years’ probation. While on probation, Webster and Parker will each have to perform 150 hours of community service and they will each have to pay $500 in restitution.
Webster and Parker resided together on the Omaha Indian Reservation during 2012 and 2013. From March of 2012 through May 6, 2013, Webster and Parker obtained pirated copies of copyrighted motion pictures which they reproduced and sold to persons on the Omaha Indian Reservation without the consent of the copyright holders. The investigation revealed that Webster and Parker sold approximately 600 DVDs during this time period.
This case was investigated by the Federal Bureau of Investigation.
Former Civilian Employee at McConnell AFB Sentenced for Theft of Public FundsRead the Press Release
WICHITA, KAN. – A former civilian employee at McConnell Air Force Base was sentenced Tuesday to three years federal probation for embezzling more than $50,000 in public funds, U.S. Attorney Barry Grissom said. In addition, she was ordered to pay approximately $53,000 in restitution.
Deidra N. Sanders, 44, Wichita, Kan., pleaded guilty to one count of theft of government money. In her plea, she admitted the crime occurred between March 2013 and April 2014 while she worked as a deputy dispersing officer for the U.S. Air Force at McConnell. In her position, she had access to the Defense Finance and Accounting Service Fund. She stole a total of $54,348 from the fund.
Grissom commended the U.S. Air Force and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Attorney Sentenced to over Four Years' Imprisonment for Defrauding Her ClientsRead the Press Release
Contact: Steve Young
A former attorney who defrauded fourteen former clients was sentenced today to more than four years in federal prison.
Susan Hense, 54, from Cedar Rapids, Iowa, received the prison term after an October 20, 2014, guilty plea to one count of wire fraud.
In a plea agreement, Hense admitted that she knowingly made up a scheme to defraud the clients of her law firm, Hense Law PLC, and to obtain money from her clients under false pretenses and promises. Hense admitted that she falsely represented to her clients that money belonging to them would be held in trust on their behalf in a bank account when, in fact, Hense intended to steal at least a portion of the clients’ money. Hense further admitted that over a three year period, she stole and misappropriated at least $837,011.31 in client funds. Hense has since been disbarred and can no longer practice law in Iowa.
Hense was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hense was sentenced to 51 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $860,396.41 in restitution the victims of her fraud. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hense was released on conditions of release previously set and is to surrender to the United States Marshal on January 20, 2015.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00109.
Federal Inmate Sentenced to Two Years for Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Margarito Morales-Oliva, age 35, formerly of Mexico, was sentenced by U.S. District Court Judge Richard P. Conaboy to 24 months in prison for possessing a sharpened weapon commonly referred to as a “shank.”
According to the United States Attorney Peter Smith, Morales-Oliva was charged in August of 2014 and pleaded guilty in October of 2014. The sentence imposed today is to be served after the expiration of the sentence he is currently serving.
The case was investigated by the FBI and the Special Investigation Section at the United States Penitentiary federal prison in Waymart, Pennsylvania. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following:
Florence Woman Indicted for Bank Fraud
Tamara Leigh Taylor, of Florence, South Carolina was charged with Bank Fraud in a 1-count indictment. The maximum penalty Taylor could receive is 30 years. The case was investigated by agents of the Secret Service and is assigned to Assistant United States Attorney William E. Day, II of the Columbia office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Fayetteville Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced ANDREW DAVID OWENS, 59, from Fayetteville, North Carolina, to 41 months’ imprisonment followed by 20 years’ supervised release.
On March 21, 2013, a Federal Grand Jury returned a Criminal Indictment charging OWENS with failing to register as a sex offenderOn September 2, 2014, OWENS pled guilty to the charge.
According to the investigation, OWENS was convicted of sexual offenses involving minors in 1992 and required to register as a sex offender for the remainder of his life. Upon release from the North Carolina Department of Public Safety on January 18, 2012, OWENS had stated that he planned to reside in Salt Lake City, Utah. However, as of February 20, 2012, he had not registered in either Utah or North Carolina. A warrant was issued for his arrest based on his failure to register as a sex offender.
In September, 2012, OWENS was arrested in Bethel, Pennsylvania and subsequently transported back to North Carolina to face the charge of failure to register as a sex offender.
The criminal investigation of this case was conducted by the United States Marshals Service Violent Fugitive Task Force and the Cumberland County Sheriff’s Office. Assistant United States Attorney Ethan Ontjes handled the prosecution on behalf of the Eastern District of North Carolina.
Erie Man Pleads Guilty to Federal Gun ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal gun laws, United States Attorney David J. Hickton announced today.
Gerald Szymanowski, 66, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about June 19, 2014, Szymanowski possessed approximately 38 unregistered firearms, including machineguns, silencers and destructive devices not registered to him in the National Firearms Registration and Transfer record and manufactured approximately 372 devices of varying sizes containing explosive materials.
Judge Cercone scheduled sentencing for May 11, 2015 at 2:15 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Szymanowski on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Szymanowski.
Elmira Man Sentenced for Selling and Importing Synthetic DrugsRead 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 Ronald Tuttle, 44, of Elmira, NY, who was convicted of conspiracies to import and distribute narcotics, and importation and attempted possession of a narcotic following a jury trial, was sentenced to 97 months in prison by U.S. District Court Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Jennifer M. Noto and Douglas E. Gregory, who handled the case, stated that the defendant imported hundreds of grams of MDPV, a synthetic drug similar to methamphetamine, over the internet from China between November 2011 and February 7, 2013. Tuttle used Western Union to send money orders to China to pay for the drugs. Once the defendant received the imported drugs, he then distributed the MDPV to others for resale. Tuttle, who testified at trial in September 2014, claimed that he was importing and selling the weight-loss supplement Sensa. During sentencing Judge Geraci called the defendant’s trial testimony “incredible.”
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
El Paso Couple Sentenced to Federal Prison for Inducing Foreign or Interstate Travel for ProstitutionRead the Press Release
In El Paso today, 45-year-old Maria Blake (aka “Jessica”, “Yvonne”) and her 45–year-old husband, Ronald, were sentenced to 30 months and six months in federal prison respectively inducing foreign or interstate travel for prostitution announced Acting United States Attorney Richard L. Durbin, Acting Homeland Security Investigations (HSI) Special Agent in Charge Tom Hernandez and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
In addition to the prison terms, United States District Judge Kathleen Cardone ordered that Maria Blake pay a $1,000 fine and be placed under supervised release for a period of ten years after completing her prison term. Judge Cardone also ordered that Ronald Blake pay a $500 fine, remain under home confinement for six months and be placed under supervised release for a period of ten years after completing his prison term. Furthermore, Judge Cardone ordered that the defendants’ residence located in the 2400 block of Tierra Nueva in El Paso be forfeited to the Government as it was used to facilitate their prostitution scheme.
In October 2014, both defendants pleaded guilty to one count of aiding and abetting coercion and enticement. By pleading guilty, the Blakes admitted that from July 2011 until January 2013, they ran a prostitution service whereby they knowingly persuaded, or attempted to persuade, approximately five females to travel from Juarez to El Paso to engage in sexual activity for financial gain.
The Blakes were arrested based on an investigation initiated by the El Paso Anti-trafficking Coordination Team (ACT Team). The ACT Team is a human trafficking task force composed of members from the FBI, HSI and the Department of Labor.
“The ACT Team is an effective and efficient law enforcement force multiplier by which we can identify, arrest and prosecute criminals involved in luring and prostituting young women,” said Acting HSI SAC Hernandez. “Criminal networks that may have operated in our region and gone undetected before are on our radar now.”
Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
East Hartford Resident Charged with Setting Fire to Middletown Restaurant to Collect Insurance ProceedsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in Hartford has returned an indictment charging JOHN A. BARILE, 51, of East Hartford, with one count of conspiracy, one count of arson, and two counts of mail fraud. The indictment was returned on December 30, 2014, and BARILE was arrested at his home last night.
The indictment alleges that BARILE and others conspired to set fire to Enzo’s Restaurant and Lounge, a restaurant that he jointly owned that was located on Main Street in Middletown, in order to collect the insurance proceeds. Shortly after midnight on January 10, 2010, BARILE ignited the fire, left the restaurant and locked the doors, leaving the other owner inside. After the fire, BARILE sought payment from an insurance company for losses suffered as a result of the fire, and concealed his role in the fire from the insurance company and law enforcement. The insurance company ultimately paid approximately $165,000 to BARILE to settle the insurance claims related to the fire.
The other owner who was in the restaurant at the time of the fire was rescued by the Middletown Fire Department.
At his arraignment today before U.S. Magistrate Judge Donna F. Martinez in Hartford, BARILE entered a plea of not guilty and was ordered detained pending a hearing scheduled for January 9, 2014.
If convicted of arson, BARILE faces a mandatory minimum term of imprisonment of seven years and a maximum term of imprisonment of 40 years. The mail fraud charges carry a maximum term of imprisonment of 20 years on each count, and the conspiracy charge carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Middletown Police Department and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Neeraj N. Patel.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Dallas County Man Sentenced to 108 Months in Federal Prison for Role in Staged Accident Fraud SchemeRead the Press Release
DALLAS — Leroy Nelson, 61, of DeSoto, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 108 months in federal prison and ordered to pay $4,973,046 in restitution for his role in a staged accident fraud scheme, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Nelson pleaded guilty in March 2014 to one count of mail fraud and one count of engaging in illegal monetary transactions. According to the plea agreement in the case, Nelson agreed to forfeit several vehicles, a motor home, a boat and trailer and real estate in Duncanville and Cooper, Texas.
According to the factual resume filed in the case, beginning in 2005 and continuing through 2012, Nelson engaged in a scheme to defraud automobile insurance companies by fabricating and submitting false and fraudulent claims for damage to technical equipment damaged in fictitious road accidents.
As part of the scheme, Nelson promised cash payments to individuals he recruited for them to falsely report to their automobile insurance company that, while driving, they inadvertently damaged a piece of equipment. Typically, the individual would falsely report that while driving, he or she had either rear-ended a trailer pulling equipment, or swerved to avoid something in the road and collided with equipment on the side of the road. Nelson would instruct the individual on how to make the telephone call to the insurance company.
Nelson then prepared and submitted the claims for property damage in the name of a “DBA” he created. The claim would include a photo of the equipment and a fictitious repair estimate that Nelson prepared. The damaged equipment was described as very technical in nature, such as: a “Remote Aircraft Landing Marker,” a “chemical Pipeline Examiner” or a “Seismographic Probe.” . The claimed repair expenses would usually be from $16,000 to $19,000.
Nelson opened private mailboxes in states including Minnesota, Missouri, Washington, Arizona, Connecticut and Louisiana to receive the insurance checks. The mailboxes were opened under an assumed business name that Nelson used as the owner of the damaged equipment in the claims. Nelson also used the addresses of two warehouses on Explorer Street in Dallas, and directed that mail received at the private mailboxes be forwarded to one of those two addresses.
The cumulative total of the insurance claims prepared and submitted to insurance companies by Nelson from 2005 to 2012 totaled approximately $5 million.
This investigation was brought to the attention of federal law enforcement by the National Insurance Crime Bureau (NICB) and Farmers Insurance Group, Special Investigations. The FBI, Internal Revenue Service Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Christopher Stokes prosecuted.
Crownpoint Man Sentenced to Ten Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Elban Al Johnson, 34, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced this morning to ten years in federal prison followed by five years of supervised release for his child sexual abuse conviction. Johnson will be required to register as a sex offender when he completes his prison sentence.
Johnson was arrested in March 2013, on a criminal complaint charging him with sexually assaulting an 11-year-old Indian child in Crownpoint, N.M., which is located within the Navajo Indian Reservation, in Nov. 2012. According to court filings, the child victim was in Johnson’s care when Johnson committed the crime.On Aug. 27, Johnson pleaded guilty to a felony information charging him with abusive sexual contact. At his plea hearing, Johnson admitted sexually assaulting the child victim on Nov. 5, 2012.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.