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Monday 22 December 2014
Lanham PCP Dealer Sentenced to over 7 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced David Chittams, age 34, of Lanham, Maryland, today to 92 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Chittams’ plea agreement, between December 2012 and January 2013, Chittams conspired with Richard Brown and others to distribute PCP. Specifically, on three occasions between December 18, 2012 and January 16, 2013, Chittams was with Richard Brown when Brown distributed approximately 345 grams (over 12 ounces) of PCP to a cooperating witness, meeting the witness at the Capitol Heights Metro station to conduct the transactions.On January 31, 2013, after observing Chittams entering the residence through the carport, agents executed a search warrant Chittams’ residence. During the search, law enforcement seized a plastic Gatorade bottle containing approximately 502 grams of PCP, starter fluid (which is commonly used as a PCP cutting agent), and a large box of empty bottles frequently utilized for PCP distribution, all of which were found in a shed in the carport. Chittams was arrested.
At least a portion of the PCP that Richard Brown distributed to the cooperating witness was supplied by Chittams. Based on his involvement in the conspiracy, Chittams was responsible for the distribution of between one and three kilograms of PCP.
Richard Brown, age 29, of Lanham, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Adam K. Ake and Arun G. Rao, who prosecuted the case.
Justice Department Settles Immigration-Related Discrimination Claim Against Diversified Business Consulting Group, Inc.Read the Press Release
The Justice Department reached an agreement today with Diversified Business Consulting Group Inc., an information technology staffing agency headquartered in Silver Spring, Maryland. The settlement resolves the department’s claims that Diversified discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation concluded that Diversified’s human resources personnel required non-U.S. citizens, but not U.S. citizens, to present specific types of documents during the employment eligibility verification process to establish their work authority. The INA’s anti-discrimination provision prohibits employers from specifying documents that employees must present during the employment eligibility verification process based on an employee’s citizenship status or national origin.
Under the settlement agreement, Diversified will pay $7,700 in civil penalties to the United States and undergo department-provided training on the anti-discrimination provision of the INA. Diversified’s corporate office and its branches will be subject to departmental monitoring and reporting requirements.
“The Civil Rights Division is committed to protecting work-authorized individuals from discriminatory practices in the employment eligibility verification process,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “We commend Diversified for working cooperatively with the division to resolve this matter.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; document abuse; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral, should contact OSC’s worker hotline for assistance.
Jersey County Man Sentenced for $1.2 Million Dollar Tax Evasion and Unlawful Firearms PossessionRead the Press Release
Follow @SDILNewsA Jersey County resident was sentenced to federal prison for tax evasion and possession of a firearm by a user of controlled substances on December 19, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. David Ray, 55, of Fieldon, Illinois, was sentenced to 37 months in federal prison, a $7,500 fine, $1,272,904.83 in restitution, a $200 special assessment and three years of supervised release. Ray also forfeited a gun collection valued between $75,000-$100,000.
“In stealing from all of us by failing to pay his fair share of taxes, Ray not only ended up forfeiting his gun collection, but he forfeited his privilege to live in his mansion for the much harsher living conditions of federal prison.” noted United States Attorney Wigginton.
Ray waived his right to face a grand jury indictment and pled guilty to charges brought directly by the US Attorney’s Office on July 23, 2013. Documents filed in District Court established that Ray committed tax evasion by using his various businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a US Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. Ray agreed to make full restitution to the IRS as a condition of his guilty plea.
Ray was also convicted for possessing firearms while being a cocaine user. Evidence presented at the plea hearing established that federal agents seized 96 firearms and more than 2,500 rounds of ammunition from Ray’s home when it was searched on February 13, 2012. In addition, agents also seized 110 grams of cocaine from Ray’s home. Ray admitted possessing the firearms as a hunter and gun collector. But he also acknowledged a serious cocaine habit, admitting that he purchased and used 3-5 ounces of cocaine every 2-3 weeks prior to his home being raided. Under federal law, drug users are categorically prohibited from possessing firearms.
Ray was ordered to remain in custody of the United States Marshal pending his transfer to federal prison.
The investigation was conducted by agents from the Internal Revenue Service/Criminal Investigations, the Jersey County Sheriff’s Department, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Jacksonville Man Charged in Federal Court with Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Christopher Shawn Warnock (43, Jacksonville) with receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of five years, up to 20 years, in federal prison and a potential life term of supervision. Warnock was arrested on December 17, 2014, at his Jacksonville residence. He was arraigned today and ordered detained pending further proceedings.
According to the indictment, on or about December 14, 2014, Warnock knowingly received a visual depiction of a minor engaged in sexually explicit conduct over the Internet.
This case was investigated by the Federal Bureau of Investigation offices in Jacksonville and Newark, New Jersey, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
It is another case 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, 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.
Heroin and Methamphetamine Trafficking Enterprise Operating in Lowcountry and Upstate South Carolina Charged in Charleston, SCRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- Bill Nettles, the United States Attorney for the District of South Carolina; John S. Comer, the acting Special Agent in Charge of the Atlanta Division of the Drug Enforcement Administration (“DEA”); Mark Keel, the Chief of the South Carolina Law Enforcement Division (“SLED”); and Gregory Mullen, the Chief of Police for the City of Charleston, SC announce the indictment and arrests of defendants in a drug trafficking enterprise. As specified in unsealed indictments, the defendants allegedly conspired to distribute more than 100 grams heroin and more than 500 grams of methamphetamine in South Carolina and elsewhere.
The listed defendants were arrested, arraigned or are in custody based on the indictment:
Over 6,000 grams of methamphetamine and over 350 grams of heroin were seized in the investigation. Approximately $25,000 in alleged drug proceeds were also seized. The indictment resulted from an Organized Crime Drug Enforcement Task Force investigation involving DEA Charleston Task Force, DEA Greenville Resident Office, SLED, Charleston Police Department, South Carolina Highway Patrol, Spartanburg County Sheriff’s Office, and Anderson County Sheriff’s Office.
"These arrests are the result of extensive coordination and investigation between federal, state and local law enforcement officials. Through their hard work, we have been able to remove significant quantities of drugs from the streets and apprehend a number of individuals involved in bringing those drugs into our district,” said United States Attorney Bill Nettles. The mission of DEA is unwavering--we combat drug traffickers by investigating and prosecuting those who distribute illicit drugs which causes immeasurable damage to our communities. Today's enforcement activity is a perfect example of how the law enforcement community works together to remove such criminals from the streets,” said Acting Special Agent in Charge John S. Comer of the DEA Atlanta Field Division.
The DEA Charleston Task Force is comprised of Special Agents and Task Force Officers from DEA, Berkeley County Sheriff’s Office, Charleston County Sheriff’s Office, Charleston Police Department, Dorchester County Sheriff’s Office, Hampton County Sheriff’s Office, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, South Carolina Law Enforcement Division, and Summerville Police Department.
Prosecution of the investigation is led by Assistant United States Attorney Nick Bianchi of the United States Attorney’s Office in Charleston, SC.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Fresno Man Sentenced for Possession of Stolen MailRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Bee Yang, 31, of Fresno, today to 20 months in prison for unlawful possession of stolen mail, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 5, 2012, Yang was in possession of stolen mail that included stolen checks totaling approximately $36,000 from at least 250 victims. Additionally, Yang was also in possession of items used to steal mail and chemicals that could be used to erase previously written checks so that the payee and amount of a check could be rewritten.
This case was the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Patrick R. Delahunty prosecuted the case.
Fresno Man Pleads Guilty to Possession of Child PornographyRead the Press Release
FRESNO, Calif. — Shane Paul Young, 44, of Fresno, pleaded guilty today to one count of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February 2012 and October 2012, Young possessed more than 600 images of child pornography. Some of the images depicted prepubescent minors, and some were of violence or sadistic or masochistic conduct. He initially told investigators that he did not possess any child pornography, but later he conceded that he had been communicating with registered sex offenders and had saved images of child pornography on several DVDs that he had labeled “Turn in to DOJ.” He explained that he had intended to turn over the material to appropriate people at some time.
Young is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on March 30, 2015. Young faces 10 to 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Young has been in custody as a danger to the community and a flight risk since his initial federal court appearance on April 9, 2013.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office and the Central Valley Internet Crimes Against Children Task Force. Assistant United States Attorney David Gappa is prosecuting the case.
The case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Fort Wayne, Indiana Woman Sentenced for Painkiller 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 – Paulette Sheree Lamb, 25, of Fort Wayne, Indiana, was sentenced today to 41 months in prison for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Mon Valley Drug and Violent Crime Task Force revealed that Lamb was involved in a prescription painkiller trafficking operation. Oxycodone pills would be transported from Detroit, Michigan to Pittsburgh, Pennsylvania and then to Morgantown, West Virginia. In July 2012, Lamb was discovered traveling from Pittsburgh to Morgantown in possession of oxycodone pills. She pled guilty in August 2014 to one count of “Aiding and Abetting in the Possession with Intent to Distribute Oxycodone.”
In another matter, Ranad Jamal Straughter, 26, of Westland, Michigan, and Andrew W. Bolyard, 23, of Morgantown, West Virginia, each pled guilty today to one count of “Aiding and Abetting Possession with Intent to Distribute Oxycodone.” They each face up to 20 years in prison and a fine of up to $1,000,000.00. The defendants each further agreed to forfeit nearly $7,000.00 in U.S. currency.
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government.
U.S. District Judge Irene M. Keeley presided in the Lamb hearing. U.S. Magistrate Judge John S. Kaull presided in the Bolyard and Straugther hearings.
Former Youth Minister Indicted on Child Pornography ChargesRead the Press Release
DALLAS — A former youth minister in Garland, Texas, was indicted by a federal grand jury in Dallas yesterday on child pornography offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Derek Hutter, 37, was charged with one count of attempted production of child pornography and one count of receipt of child pornography. He was arrested on those charges and entered a plea of not guilty before U.S. Magistrate Judge Paul D. Stickney on December 18, 2014.
Hutter worked as a youth minister at the South Garland Baptist Church.
The indictment alleges that on approximately August 14, 2014, Hutter sent an email to Jane Doe #1, a minor girl, requesting she take sexually explicit photos of herself and text them to him. The indictment further alleges that on approximately September 14, 2014, Hutter received images of child pornography on his email account.
An indictment is an accusation by a federal grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the attempted production count is not less than 15 or more than 30 years in federal prison and not less than five or more than 20 years on the receipt count. In addition, each count carries a maximum statutory fine of $250,000 and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS) and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Former Winston County Deputy Pleads Guilty to Extorting Manufacture of MethamphetamineRead the Press Release
BIRMINGHAM -- A former Winston County sheriff's deputy pleaded guilty today in federal court to using his police authority to extort a woman to cook methamphetamine, and to causing her to manufacture and distribute the drug at the home where she lived with a minor child, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
GRADY KEITH CONCORD, 42, of Lynn, entered his guilty pleas before U.S. District Judge Abdul K Kallon to one count of extortion under color of official right, one count of manufacturing methamphetamine and one count of manufacturing and distributing methamphetamine on premises where children are present or reside. The U.S. Attorney's Office filed the charges against Concord in November.
"Sheriff's deputies are supposed to protect people from harm. Instead, this defendant broke the law and coerced a woman into violating the law and manufacturing methamphetamine for him in a way that put lives, including a child's, in danger," Vance said. "Most law enforcement officers serve honorably, but we will prosecute those who break the law."
"We entrust law enforcement officers with certain powers and authority, which they are expected to wield with the utmost integrity," Schwein said. "Mr. Concord's actions breached the public trust and dishonored the badge that he once carried. This case shows that abuse of that power and authority will not be tolerated."
According to his plea, Concord was a Winston County Sheriff's deputy in July 2013 when he approached a woman living in the town of Nauvoo and pressured her to manufacture methamphetamine for him. Concord used the illegal drug and arranged to supply the woman with pseudoephedrine, a necessary ingredient of methamphetamine, in exchange for a portion of the finished product.
Concord disputes the woman's claim that he threatened her with an arrest warrant unless she agreed to the arrangement, but he concedes that because he was a sheriff's deputy, she may have felt that she "had no choice but to accept his offer," he acknowledged in his plea agreement with the government.
On several occasions between July 2013 through June 2014, Concord delivered pseudoephedrine to the woman's home, where she manufactured the methamphetamine, and where he picked up the illegal drug, he acknowledged during his guilty plea today. Concord obtained decongestant pills containing pseudoephedrine from the sheriff's office evidence room, and he and his wife both bought the pills, according to his plea.
Concord acknowledged that he knew the woman had two sons who lived with her, and that one of them was a minor.
He faces a maximum penalty of 20 years in prison and a $250,000 fine on the extortion count and a maximum penalty of 20 years in prison and a $1 million fine on the count of manufacturing methamphetamine. Any sentence imposed for the manufacture of methamphetamine where minors reside or are present must be served consecutively to any other sentence imposed. The maximum penalty for that count is 20 years in prison and a $2 million fine.
As part of Concord's plea agreement, he must surrender all law enforcement certifications and not seek future employment in law enforcement or custodial oversight, including as a correctional or probation officer or bail bondsman.
The FBI, State Bureau of Investigation, agents of the Lauderdale County Drug Task Force assigned to the FBI's Safe Streets Task Force, the Winston/Marion County District Attorney's Office, with the cooperation of the Winston County Sheriff's Office and the Lynn Police Department, investigated the case. Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting the case.
Former Security Contractor CEO Agrees to pay $4.5 Million to Settle Civil ClaimsRead the Press Release
Arlington Man was Mastermind of Disadvantaged Small Business Fraud SchemeALEXANDRIA, VA – Keith Hedman, 55, of Arlington, Virginia, the former chief executive officer of a Virginia-based security contracting firm, Protection Strategies, Inc., (PSI), has agreed to pay $4.5 million to settle civil claims relating to his involvement in a fraudulent scheme to create a front company to obtain contracts through the Small Business Administration’s (SBA) Section 8(a) program. The Section 8(a) program allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the settlement agreement was signed by both parties.
“The civil settlement illustrates the importance of not stopping at a criminal resolution when a defendant has pled guilty to fraud against the government,” said U.S. Attorney Boente.
The settlement resolves civil claims against Hedman relating to the criminal plea entered by him in U.S. v. Hedman, 1:13cr74. According to court records, in or about 2001 Hedman formed PSI, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left PSI in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Security Assistance Corporation (SAC), another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which PSI was no longer qualified. Prior to applying for SAC’s 8(a) status, Hedman selected an employee, Dawn Hamilton, to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and PSI senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, SAC obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman impermissibly exercised ultimate decision-making authority and control over SAC by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In total, the scheme netted SAC more than $31 million in fraudulently obtained contract payments.
As a result of Hedman’s criminal plea, he was sentenced to 72 months in prison, two years of supervised release, and was ordered to forfeit approximately $6.1 million and pay a $15,000 fine.
As part of the civil settlement, Hedman has agreed to pay $4.5 million to resolve allegations under the False Claims Act and other related statutory and common law remedies arising from the fraudulent scheme. The civil claims settled by Hedman and the United States are allegations only. There has been no determination of civil liability.
The resolutions obtained in this matter were the result of a coordinated investigation by the Civil and Criminal Divisions of the U.S. Attorney’s Office for the Eastern District of Virginia, and the Civil Division of the Department of Justice. The civil matter was investigated by Assistant U.S. Attorney Peter Hyun and DOJ Trial Attorney Allison Cendali. The criminal case was prosecuted by Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section.This case was investigated by National Aeronautics and Space Administration, Office of the Inspector General (OIG), the SBA -OIG, Defense Criminal Investigative Service-OIG, General Services Administration-OIG, and Department of Homeland Security-OIG, with assistance from the Defense Contract Audit Agency.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:13-cr-074.Tweet
Former North Liberty Man Sentenced for Federal Methamphetamine ConspiracyRead the Press Release
DAVENPORT, IA – On December 19, 2014, Terry Joe Burns, age 49, formerly of North Liberty, Iowa, was sentenced by United States District Judge John A. Jarvey to 180 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Burns was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning in approximately July 2013 and continuing until about November 14, 2013, Burns conspired with other persons to distribute ice methamphetamine in the North Liberty, Iowa, area. On November 14, 2013, law enforcement intercepted a vehicle occupied by co-defendant Donald Lee Engstrom as it arrived at Burns’ residence near North Liberty. The vehicle contained 333 grams of highly pure ice methamphetamine and $9,255 in U.S. currency. These items belonged to Engstrom, and he was traveling to meet Burns because Engstrom had arranged with Burns to meet with Burns and an acquaintance of his for the purpose of selling that person one-half pound of ice methamphetamine.
Co-defendant Engstrom has pled guilty to conspiracy to distribute methamphetamine and was sentenced by Judge Jarvey in September 2014 to 120 months in prison.
This case was investigated by the Johnson County Drug Task Force, the United States Drug Enforcement Administration, the Iowa Department of Narcotics Enforcement, and the North Liberty, Iowa, and Iowa City, Iowa, Police Departments. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Former Los Angeles Man Sentenced for Federal Heroin ConspiracyRead the Press Release
DAVENPORT, IA – On December 19, 2014, Lennon Hunter, Jr., age 56, formerly of Los Angeles, California, was sentenced by United States District Judge Stephanie M. Rose to 120 months in prison for conspiracy to distribute heroin, announced United States Attorney Nicholas A. Klinefeldt. Hunter was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning in approximately July 2009 and continuing until about September 22, 2012, Hunter conspired with other persons to distribute heroin. On multiple occasions during this period Hunter obtained heroin—ranging in weight from approximately one ounce to one-half kilogram—in Los Angeles, California, and then either sent the heroin via parcel carrier to the Quad Cities area, or provided it to a co-conspirator who utilized rail and bus carriers to transport the heroin to the Quad Cities. Once in the Quad Cities, the heroin was delivered to co-conspirator Curtis Newman, Sr. in Davenport, Iowa, for further distribution. The quantity of heroin distributed by Hunter exceeded 1 kilogram.
Co-conspirator Curtis Newman, Sr. has pled guilty to conspiracy to distribute heroin and is awaiting sentencing.
This case was investigated by the Drug Enforcement Administration, and the Quad Cities Metropolitan Enforcement Group, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Law Firm Partner and her Husband Charged with Defrauding Two Law Firms and the Firms' Client of $5 MillionRead the Press Release
NEWARK, N.J. - A former partner of a prominent New York law firm and her husband were arrested by federal law enforcement officers this morning for allegedly engaging in a conspiracy to obtain millions of dollars through fraudulent activity, U.S. Attorney Paul Fishman announced.
Agents of IRS-Criminal Investigation and the Drug Enforcement Administration, arrested Keila Ravelo, 49, and Melvin Feliz, 50, of Englewood Cliffs, New Jersey, this morning on a complaint charging them with conspiracy to commit wire fraud. They are scheduled to make their initial appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
An investigation conducted jointly by the IRS and DEA revealed that from 2008 through July 2014, Ravelo and Feliz used two companies (Vendor 1 and Vendor 2) to fraudulently obtain money from two New York law firms (Law Firm 1 and Law Firm 2) where Ravelo previously worked. Ravelo worked as a partner at Law Firm 1 from at least 2008 to October 2010. She then joined Law Firm 2 as a partner and worked there from October 2010 to November 2014. Vendor 1 and Vendor 2 purported to provide litigation support services to both of those law firms.
Ravelo and Feliz either created or caused to be created both vendors, including having bank accounts opened in Vendor 1’s and Vendor 2’s names, and controlled those bank accounts. Ravelo and Feliz used Vendor 1 and Vendor 2 to fraudulently obtain money from Law Firm 1, Law Firm 2, and a client of both those firms by submitting invoices to both law firms for work that was not performed. Funds paid to Vendor 1 and Vendor 2 were allegedly used to pay the personal expenses of Ravelo and Feliz or were transferred to a joint account held by them. Checks were issued from accounts controlled by Ravelo and Feliz to certain individuals for allegedly performing litigation support work. Law enforcement officers interviewed some of these individuals, who stated that they never performed any legal or litigation support work for Vendor 1 and/or Vendor 2. Law firm employees who worked with Ravelo on matters allegedly supported by the vendors stated that they reviewed no work product produced by either Vendor 1 or Vendor 2. Individuals who opened the respective bank accounts for Vendor 1 and Vendor 2 said they did so at the request of either Ravelo or Feliz and then signed blank checks, which were given to Ravelo or Feliz.
The two law firms paid Vendor 1 and Vendor 2 more than $5 million. Ravelo, in her capacity as a partner at the law firms, approved many of the payments from the law firms to Vendor 1 and Vendor 2. The couple funneled the majority of the fraudulently obtained funds into their joint bank account and used the funds to pay for their personal expenses and investments, which included $250,000 in payments to a jewelry store.
Both law firms and the client have cooperated with the investigation.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to the defendants or twice the gross loss sustained by the victims.U.S. Attorney Fishman credited special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, New Jersey, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Andrew Kogan, Brian Urbano, Ronnell Wilson and Marion Percell, of the U.S. Attorney’s Office Criminal Division and Assistant U.S. Attorney David Foster of the U.S. Attorney’s Office Special Prosecution’s Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
14-455
Defense counsel:
Ravelo: Aidan O’Connor Esq., Hackensack, N.J., and Steve H. Sadow Esq., Atlanta, Ga.Feliz: Patrick Joyce Esq., New York
Former Investment Advisor Sentenced on Wire Fraud, Tax Evasion ChargesRead the Press Release
ROANOKE, VIRGINIA – A former investment advisor employed by the Roanoke, Va. branch of an unnamed global financial services firm, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on wire fraud and tax evasion charges.
Donna J. Tucker, 58, of Roanoke, Va., previously waived her right to be indicted and pleaded guilty to a two-count Information charging her with one count of wire fraud and one count of tax evasion. Today in District Court, Tucker was sentenced to 60 months of Federal incarceration. In addition, was ordered to pay $976,485 in restitution to victims.
In evidence presented at today’s sentencing by Assistant United States Attorney Daniel P. Bubar and United States Secret Service Special Agent Andrew Beaman, Tucker stole directly from and caused loss to the accounts of two sets of victims. Evidence showed that all of the victims in this case were elderly and one couple was particularly vulnerable, as they are both legally blind. The Court took these factors into consideration and specifically included the recommended sentencing enhancements regarding the vulnerability of these victims and Tucker’s abuse of a position of trust.
According to information presented at previous hearings, Tucker was an investment advisor in Roanoke from 2007 through April 2013. In August 2010, Tucker forged the signature of one of her clients, an elderly couple who held a joint account, in order to obtain a line of credit, supposedly for the clients, through her firm’s banking arm. Tucker took these actions without the knowledge or consent of the victim.
Approximately one year later, on August 4, 2011, Tucker caused to be transmitted a wire transfer of $295,000 from the victim’s account to her own account at a local credit union. These funds were used to benefit Tucker and her family. In addition, Tucker took steps to ensure the victims did not learn of the unauthorized transfer by instructing others at her firm to place the victims in an all-electronic delivery system that would send the victim’s account statements by email. Tucker also made false statements to the victims, other employees at the firm and created false documents in order to carry out the scheme.
Additionally, in calendar year 2011, Tucker reported to the Internal Revenue Service a taxable income of $125,333. The defendant has admitted to knowingly failing to report additional taxable income of at least $340,000, which resulted in an additional tax of at least $115,000 being owed to the United States.
The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the Roanoke City Police Department. Assistant United States Attorney Daniel P. Bubar and Special Assistant United States Attorney Drew Bradylyons prosecuted the case for the United States.
Former Corrections Officer Pleads Guilty to Wire Fraud and Identity Theft ChargesRead the Press Release
Jacksonville, Forida – United States Attorney A. Lee Bentley, III announces that Harold B. Walbey, III (46 Jacksonville) has pleaded guilty to wire fraud and identity theft. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing has not yet been scheduled. Walbey was indicted on December 11, 2013.
According to court documents, from at least in or about 2010 and continuing through about May 2012, Walbey, in his capacity as a correctional officer at the John E. Goode Pre-trial Detention Facility (PTDF), stole the personal identifying information of unknowing inmates that were housed at the facility. As a part of this scheme, Walbey maintained a notebook that contained 49 names, social security numbers, and dates of births of prisoners that were incarcerated at the PTDF. Once this information was stolen, fraudulent debit card accounts and W-2 forms were created in the inmates’ names. A fraudulent tax return was then electronically filed using various online tax software tools such as Turbo Tax. From 2010 through 2012, Walbey filed tax returns in 38 different prisoners’ names, claiming more than $250,000 in fraudulent refunds.
This case was investigated by the Jacksonville Sheriff’s Office, Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Malisa Chokshi.
Federal Inmate Gets 20-Month Sentenced for Possessing Suboxone in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 20 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Ricardo Ramos, 34. The sentence was imposed to run consecutively to the sentence Ramos is currently serving.
According to information presented to the court, on or about April 29, 2014, Ramos was in possession of contraband, namely, a quantity of buprenorphine (suboxone).
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Ramos.
Federal Court Permanently Bars Five Texas Tax Return Preparers from Preparing Returns for OthersRead the Press Release
A federal court in Waco, Texas has permanently barred Patricia Foley aka Sissy Foley; Amanda Smith; April Leann Morgan aka April Leann Ercanbrack; Cassandra Egbert and Joshua Stifle, individually and doing business as Accounting System Services and doing business as A Kind Bookkeeping and Tax Service from preparing tax returns for others, the Justice Department announced today. The five defendants agreed to the stipulated order of permanent injunction, which U.S. District Judge Walter S. Smith Jr. entered on Dec. 19.
The complaint alleges that the defendants prepared income tax returns for their customers that contained false, improper or inflated business expense deductions on Schedule F (Profit or Loss from Farming) on their returns. These activities led to the defendants’ customers filing tax returns that unlawfully understated income and tax liabilities and overstated refunds, according to the suit.
The injunction requires the defendants to turn over to the United States a list of all persons for whom they prepared federal tax returns or claims for a refund for tax years 2009 through 2014. The order granting the injunction further authorizes the United States to monitor the defendants’ compliance with the terms of the order.]\
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Departamento de Justicia Resuelve una Demanda contra Diversified Business Consulting Group, Inc.Read the Press Release
WASHINGTON – El Departamento de Justicia anuncio hoy que llegó a un acuerdo con Diversified Business Consulting Group, Inc., una agencia de empleo con sede en Silver Spring, Maryland. El acuerdo resuelve la alegación del departamento que Diversified discriminó en contra de individuos que no son ciudadanos estadounidenses pero que sí tienen permiso de trabajar, en contra de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento reveló que Diversified requería que personas que no eran ciudadanos estadounidenses presentaran documentos específicos durante el proceso de verificación de elegibilidad de empleo para establecer su autorización de trabajo, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su elección. La provisión antidiscriminatoria de la INA prohíbe a los empleadores que especifiquen los documentos que los trabajadores deben presentar durante el proceso de verificación de elegibilidad de empleo basado en el estatus de ciudadanía u origen nacional del empleado.
Según el acuerdo, Diversified le pagará $7,700 en multas a Los Estados Unidos y se someterá a un adiestramiento proporcionado por el departamento sobre la provisión antidiscriminatoria de la INA. La oficina corporativa de Diversified y sus ramas estarán sujetas a monitoreo del departamento y a requisitos de informacóin.
"La División de Derechos Civiles está comprometida a proteger a las personas autorizadas a trabajar contra prácticas discriminatorias en el proceso de verificación de elegibilidad de empleo," dijo Vanita Gupta Subprocuradora General Interina para la División de Derechos Civiles. "Felicitamos a Diversified por trabajar cooperativamente con la División para resolver este asunto."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración es responsable por hacer cumplir con la provisión antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía u origen nacional durante la contratación, el despido, el reclutamiento o la referencia por comisión; las prácticas injustas de documentación; represalias e intimidación.
Para más información sobre las protecciónes contra la discriminación en el empleo bajo las leyes de inmigración, llame a la línea directa de la OSC para el trabajador, al 1-800-255-7688 (teléfono de texto 1-800-237-2515, para las personas con discapacidades auditivas), o a la línea directa de la OSC para el empleador, al 1-800-255-8155 (teléfono de texto 1-800-237-2515, para las personas con discapacidades auditivas); suscríbase a un seminario por internet gratis en www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico a [email protected]; o visite el sitio del internet de OSC en www.justice.gov/crt/about/osc.
Los solicitantes o empleados que creen que han sido sometidos a: (1) requisitos documentarios diferentes por causa de su estado de ciudadanía, estado de inmigración u origen nacional; o (2) discriminación por causa de su estado de ciudadanía, estado de inmigración u origen nacional, en la contratación, el despido, el reclutamiento o la recomendación por un honorario, deberán comunicarse a la línea directa de la OSC para el trabajador para recibir ayuda.
Easton Hospital Agrees to Pay the Government $662,000 to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - Northampton Hospital Company, LLC and Northampton Hospital Corporation, doing business as Easton Hospital (“Easton Hospital”), have agreed to a $662,000 settlement with the government to resolve allegations of health care fraud arising under the False Claims Act. The United States contends Easton Hospital billed Medicare for procedures performed by Dr. Thomas Walden, including extracorporeal shock wave lithotripsy, cystometrogram, green light laser, and transurethral resection of the prostate. According to the United States, some of these procedures were not performed, were only partially completed, or were medically unnecessary. The settlement was announced today by United States Attorney Zane David Memeger. Easton Hospital denies the allegations.
Easton Hospital provides inpatient and outpatient healthcare services in Easton, Pennsylvania. The hospital’s services include cardiovascular, orthopedic, oncology, maternal, child health, pediatric, physical therapy rehabilitation, and mental health services. In addition, it offers surgical care, emergency care, occupational and speech therapy, wound healing management, imaging, radiology, home health, hospice, and laboratory services. While employed at Easton Hospital, two former employees discovered a Medicare fraud scheme perpetrated at Easton Hospital. In specific, these employees observed urologic procedures and tests performed by Dr. Walden for which the government should not have been billed by Easton Hospital.
The two employees filed a complaint in the Eastern District of Pennsylvania captioned U.S. ex rel. David Kasprzak and David Heaton v. Defendant Northampton Hospital Company LLC d/b/a Easton Hospital and Northampton Hospital Corporation d/b/a Easton Hospital, Civil Action Number 10-6264. This complaint was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam provisions permit private citizens to bring civil actions on behalf of the United States.
“The United States Attorney’s Office for the Eastern District of Pennsylvania places a high priority on criminal and civil enforcement in cases involving health care fraud,” said Memeger. “Health care fraud wastes tax dollars, harms patients, and drives up medical costs for everyone. We encourage our citizens to report potential health care fraud so that we can effectively investigate and prosecute this type of wrongdoing.”
Under the parties’ settlement agreement, Easton Hospital will pay $662,000 to the United States. The two whistleblowing employees will receive a share of the settlement payment.
The case was investigated by the United States Attorney’s Office for the Eastern District of Pennsylvania, the United States Department of Health and Human Services- Office of Inspector General, and the United States Office of Personnel Management-Office of Inspector General. Within the United States Attorney’s Office, the case was handled by Assistant U.S. Attorneys Veronica J. Finkelstein and Joel M. Sweet.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office by calling 215-861-8200.
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106
Dunbar heroin dealer pleads guilty in federal courtRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that William Leon Sales, 37, of Dunbar, West Virginia, pleaded guilty to possession with intent to distribute heroin, in a hearing before U.S. District Judge John T. Copenhaver, Jr., in Charleston.
On July 16, 2014, officers with the Metropolitan Drug Enforcement Network Team (MDENT) located approximately 75 grams of heroin and more than $4,000 in cash at Sales’ home in Dunbar. Sales admitted he intended to distribute the heroin in the Dunbar area.
On July 1, 2014, Sales provided a gram of heroin to a middleman to distribute for $150 to a confidential informant working with MDENT. Sales told the informant he had another half-ounce of heroin in his residence if the informant wished to purchase additional heroin.
Sales faces up to 20 years in federal prison, and is scheduled to be sentenced on March 24, 2015.
MDENT conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
District Man Pleads Guilty to Second-Degree Murder While Armed in Southeast Washington Shooting-Defendant Shot Victims Inside Car in Barry Farm Area-Read the Press Release
WASHINGTON – Donald Dubose, 25, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed stemming from a fatal shooting that took place in 2012 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Dubose pled guilty in the Superior Court of the District of Columbia. He is to be sentenced on Feb. 20, 2015, by the Honorable Jennifer Anderson. The plea, which is contingent on the Court’s approval, calls for a sentence between 15 and 17 years of incarceration.
According to the government’s evidence, on May 12, 2012, at approximately 5:35 a.m., the victim, Michael Smith, 34, and another man left Northwest Washington in a gray Mercedes Benz. They headed towards the Barry Farm community in Southeast Washington. The other man drove while Mr. Smith sat in the front passenger seat. Dubose followed behind them in a black Ford Fusion with the intention of causing physical harm and injury to Mr. Smith and the other man in the Mercedes Benz. At least two of Dubose’s associates were in the car with him.
When they reached Stevens Road SE, in Barry Farm, the other man pulled the Mercedes to the side of the road in the 1100 block of Stevens Road. Dubose stopped the Ford Fusion beside the Mercedes, on the driver’s side of the Mercedes. The individuals in the Ford Fusion shot at Mr. Smith and the other man with multiple guns. Mr. Smith was shot twice in the head and died shortly thereafter. The other man survived the gunfire, but suffered a gunshot wound to his arm. Though injured with a gunshot wound, he attempted to drive the Mercedes away. He crashed the Mercedes into the side of a nearby house across the street. Dubose and the shooters, meanwhile, fled from the shooting in the Ford Fusion, which defendant drove.
In announcing the guilty plea, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Seventh Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, M. Laverne Forrest, Tanya Via and Michael Hailey of the Victim/Witness Assistance Unit; former Paralegal Specialists Fern Rhedrick and Marian Russell; Paralegal Specialist Vanessa Trent-Valentine; Investigative Analyst Zachary McMenamin; Assistant U.S. Attorney Michael Brittin; and former Assistant U.S. Attorney Justin Dillon. He also praised the efforts of Assistant U.S. Attorney Shana L. Fulton, who investigated, indicted, and prosecuted the case.
14-285Defense Contractor Sentenced to 6 Months in Prison for Manufacturing Defective Aircraft Parts and Falsifying Safety RecordsRead the Press Release
PHOENIX – On Dec. 22, 2014, U.S. District Court Judge Diane J. Humetewa sentenced Malcom Robert Markson, 45, of Peoria, Ariz., to six months in prison. Markson previously pleaded guilty to the crimes of fraud involving aircraft parts and obstruction of federal investigation.
U.S. Attorney John S. Leonardo stated, “The U.S. Attorney’s Office is committed to aggressively prosecuting fraud by defense contractors, particularly when that fraud endangers members of our military.”
“Our men and women in combat deserve equipment that meets critical safety and performance requirements,” said Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service (DCIS) Southwest Field Office. “This case demonstrates that the DCIS, along with our law enforcement partners, will aggressively pursue cases where contractors knowingly provide defective equipment that puts the safety of American military service members at risk.”
Hector Sanchez, the Special Agent in Charge of the Air Force Office of Special Investigations, Procurement Fraud Office, Southwest Region, stated: “AFOSI is committed to supporting the warfighter and ensuring that those who unlawfully defraud members of the armed services are held accountable. Successful prosecution of this case exemplifies collaborative efforts between AFOSI, DCIS, and Department of Justice partners in the fight against fraud waste and abuse.”
Markson is the former owner of Action Machine, LLC, a Phoenix-based defense contractor. Between 2009 and 2012, Markson obtained a series of contracts on behalf of Action Machine to manufacture wing pins for the Department of Defense. Wing pins are critical safety parts that are used to secure the wings of F-15 fighter aircraft. The contracts contained detailed design specifications that required Action Machine to use a particular type of hardened steel when manufacturing the wing pins and to subject the wing pins to a particular safety inspection process. Based on these contracts, Markson manufactured and shipped a total of 212 wing pins to the Department of Defense and supplied certification forms verifying that the wing pins met all of the design specifications. In fact, these certifications were false - some of the wing pins were made with the wrong type of steel and some had not been subjected to the required safety testing.
In 2013, the Department of Defense discovered that the wing pins supplied by Action Machine might be defective. (This discovery occurred before any accidents or injuries occurred.) Based on this discovery, auditors were dispatched to Phoenix to interview Markson and inspect Action Machine’s books and records. During this process, Markson supplied auditors with a document that appeared to show that a third-party testing company had conducted all of the necessary safety testing on the wing pins. In fact, this document was a forgery created by Markson.
The investigation in this case was conducted by the Defense Criminal Investigative Service. The prosecution was handled by Dominic Lanza, Assistant U.S. Attorney, District of Arizona.
CASE NUMBERS: CR-14-1152-PHX-DJH
RELEASE NUMBER: 2014-077_MarksonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Davenport Man Sentenced in Federal Court for Possession of Firearm as FelonRead the Press Release
DAVENPORT, IA- On December 19, 2014, Ronnell Monshanique Henderson, age 33, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 100 months imprisonment, after pleading guilty to possession of a firearm as a felon, announced United States Attorney Nicholas A. Klinefeldt. Henderson was also ordered to serve three years of supervised release following his conviction, and to pay $100 towards the Crime Victims Fund.
On March 20, 2014, officers with the Davenport, Iowa, Police Department responded to a report of a burglary in progress. Witnesses were able to provide a description of the subjects involved as well as a description and license plate number of the maroon SUV they left in. Davenport police officers in the area observed a vehicle with occupants that matched this description and conducted a traffic stop.
Henderson stepped out of the vehicle at the request of the officers, and an officer instructed him to turn around and face the vehicle. As Henderson started to turn, he swung his arm back, struck the officer and attempted to run. Two officers were able to catch Henderson and physically placed him on the ground. Henderson continued to physically resist. Henderson kept his hands underneath him and failed to respond to repeated commands to give officers his hands. Officers were finally able to get control of Henderson’s hands. Henderson continued to physically struggle with officers as they searched him. Officers found a loaded black revolver in Henderson’s right front jacket pocket. Both officers sustained injuries as a result of Henderson’s resistance to arrest.
The firearm seized was an Uberti Outlaw 44/40 caliber revolver loaded with five rounds, which had been reported stolen in February 2011. Prior to March 20, 2014, Henderson had been convicted of a robbery, a Class C felony under Iowa law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Davenport, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
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Davenport Man Sentenced in Federal Court for Possession of Child PornographyRead the Press Release
DAVENPORT, IA- On December 19, 2014, Robert Lee Burton, age 49, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 90 months in prison, announced United States Attorney Nicholas A. Klinefeldt. Burton was also ordered to serve five years of supervised release following his imprisonment, and to pay $100 towards the Crime Victims Fund. Burton was also ordered to pay $2800 in restitution to one of the victims involved in this offense.
Based on an investigation involving the Internet Crimes Against Children (ICAC) task force and the Scott County Sheriff’s Office, a search was performed on January 11, 2012, at Burton’s Davenport residence. Multiple hard drives, DVDs, thumb drives and computers were seized and later found to contain images and videos of child pornography. Burton pled guilty on July 1, 2014, and he will be required by state and federal law to register as a sex offender.
This case was investigated by the Internet Crimes Against Children Task Force, the Scott County Sheriff’s Office, the Davenport Police Department and the Clinton County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Child initiative.
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Corry Physician Pleads Guilty to Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Corry, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
William Jay Blazes, 47, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Blazes possessed approximately 7,000 computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for April 6, 2015 at 12:45 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Blazes on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Corry Police Department, the Erie County District Attorney’s Office, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Blazes.
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.justice.gov/psc.
Cleveland, Ohio Man Sentenced for Selling Heroin Near Local PlaygroundRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Jewan Kyle, 26, of Cleveland, Ohio, was sentenced today to 44 months in prison for distributing heroin near a local playground, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Kyle sold heroin near Bloch Playground in Wheeling, West Virginia, in February 2013. Kyle, who has multiple prior felony drug convictions, pled guilty in October 2014 to one count of “Distribution of Heroin Within 1000’ of a Protected Location.”
United States Attorney Ihlenfeld prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Civilian Navy Employee Found Guilty of Obstruction and False Statement after Jury TrialRead the Press Release
WASHINGTON – A federal jury today returned a guilty verdict against a civilian employee of the U.S. Navy posted at the Capodichino Navy Base near Naples, Italy, for obstructing an investigation and making false statements, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Nicholas A. Klinefeldt of the Southern District of Iowa.
Steven William Ashton, 41, with a last known U.S. residence in Davenport, Iowa, was found guilty after a nine-day jury trial of creating false documents to obstruct the Naval Criminal Investigative Service (NCIS) investigation into Ashton’s private consulting business called BlackGrid Consulting LLC. The jury also found Ashton guilty of making false statements about his tour of duty in order to obtain federal benefits and access to military bases worldwide.
The evidence at trial showed that the NCIS was investigating Ashton for conflicts of interest and using inside government information to advance his business. When Ashton learned about the investigation, he created fraudulent documentation purporting to show that he had fully disclosed his business to Navy authorities and received approval. At Ashton’s direction, his defense counsel unwittingly submitted those false documents to the prosecutors and gave other false explanations to the Justice Department.
According to the evidence presented at trial, from April 2004 to March 2013, Ashton was employed by the Navy as the North Atlantic Treaty Organization and Host Nation Programs Manager for the regions of Europe, Africa and Southwest Asia, responsible for managing contracts and agreements among the Navy and other countries to support the United States’ military efforts.
He was found not guilty on charges of theft of government funds for obtaining housing benefits, called Living Quarters Assistance, to which he was not entitled, and of obstructing that investigation.
This case was investigated by the NCIS and the Air Force Office of Special Investigations. The case is being prosecuted by Director of Procurement Fraud Litigation Catherine Votaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clifford Cronk of the Southern District of Iowa.
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Change of Plea Hearing Scheduled January 8, 2015 at 12:30pm for Defendant John HarderRead the Press Release
A hearing before Judge Michael Simon is scheduled on January 8, 2015, 12:30 PM at Mark O Hatfield Courthouse, Courtroom 13B, for the case which involves defendant Jon Harder. The purpose of this hearing is for the defendant to enter a plea of guilty.
Jon Harder is scheduled to plead guilty to one count of mail fraud and one count of money laundering. The prosecutors would like to meet with victims to describe the entry of plea and the sentencing process. The meeting will take place at the U.S. Attorney's Office, Suite 600, at 10:30am.
Cedar Rapids Man to Federal Prison for Selling OVer $85,000 Worth of MarijuanaRead the Press Release
A man who sold expensive “high-grade” marijuana in the Cedar Rapids area will spend 9 months in federal prison.
Tyler Scheer, 26, from Cedar Rapids, Iowa received the prison term after an August 18, 2014 guilty plea to Conspiracy to Distribute Marijuana.
At a prior guilty plea hearing, Scheer admitted he agreed with others to sell marijuana in the Cedar Rapids area from August 2012 through April 2013. According to information disclosed in court and in court documents, Scheer sold or possessed with intent to sell over 11 kilograms (over 24 pounds) of marijuana over the course of the conspiracy. Valued at approximately $3,450 per pound, Scheer sold over $85,000 worth of this high-grade marijuana.
Scheer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Scheer was sentenced to 9 months’ imprisonment and fined $3,000. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Scheer was released on the bond previously set and is to surrender to the Bureau of Prisons on a future date.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by was investigated by the Drug Enforcement Administration (DEA) Task Force as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice. The DEA Task Force consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; the Clinton Police Department; the Iowa Division of Narcotics Enforcement; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sixth Judicial District Department of Correctional Services; and the Iowa National Guard.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/ login.pl. The case file number is CR 14-82.
Canadian Man Sentenced to Seven Years in Prison for Swindling Elderly Victims in $8 Million Telemarketing Scam from the PhilippinesRead the Press Release
CHICAGO — A Canadian man who cooperated with U.S. law enforcement and voluntarily traveled from the Philippines to face federal prosecution was sentenced to seven years in prison for swindling 168 elderly victims nationwide of approximately $8 million in a telemarketing fraud scheme, federal law enforcement officials announced today.
The defendant, AUSTIN ETCHES, 56, “was up to his eyeballs” in the “heinous” crime, U.S. District Judge Thomas Durkin said in imposing the sentence on Friday in Federal Court. Etches, who has remained in federal custody since he voluntarily traveled to the United States in June 2013, was also ordered to pay restitution totaling approximately $8 million.
Etches, who last resided in Toronto before Manila, pleaded guilty to mail fraud in June of this year and cooperated in the investigation, which has resulted in pending charges against two alleged co-schemers, who are believed to be outside the United States.
Citing letters to the judge from widows and retirees who were among the victims, Assistant U.S. Attorney Rachel Cannon argued in a sentencing memo, “Many of the victims were at the most vulnerable point of their lives, between their advanced ages, the death of their spouses, and their or their spouse’s health issues, not to mention their need for income.”
According to court documents, Etches and two co-schemers operated a series of companies through telemarketing call centers located in and around Manila. Between 2008 and 2012, they raised more than $8 million by fraudulently selling phony certificates of deposit and non-existent real estate investments to American senior citizens. They made false statements about the risks of the investments, the expected and actual rates of return, and the ways in which investors’ funds would be used. They provided investors with fraudulent account statements purporting to show that investments had increased in value, knowing that they had misappropriated the funds and the investments were worthless.
One elderly victim attended Etches’ sentencing with her son, who spoke on her behalf. He noted that his mother was an emigrant from Yugoslavia, and his parents had worked their entire lives in factory jobs. They managed to save $161,000, all of which Etches and others stole. The son described how the schemers hounded his mother with repeated phone calls, and they stopped calling her only when her son intervened.
In late 2013, related federal fraud charges were filed in Chicago against JONATHAN PAPA, 42, who is believed to be in the Philippines, and METHSIRI PALLIYAGURU, 56, who was formerly in the Philippines and is now believed to be in Canada. The charges are not evidence of guilt and they are presumed innocent.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The FBI’s Los Angeles office and the U.S. Securities and Exchange Commission assisted in the investigation.
California Man Sentenced for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fontana, California, man convicted of Possession of an Unregistered Firearm was sentenced on December 16, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gregorio Aguirre, age 26, was sentenced to 24 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Aguirre pled guilty to the charge on August 22, 2014. The charge related to Aguirre knowingly being in possession of an unregistered, sawed-off Remington .22 caliber rifle when he was pulled over by the South Dakota Highway Patrol on April 12, 2014.
This case was investigated by the Unified Narcotics Enforcement Team, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Aguirre was immediately turned over to the custody of the U.S. Marshals Service.
California Man Sentenced for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fontana, California, man convicted of Possession of an Unregistered Firearm was sentenced on December 16, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gregorio Aguirre, age 26, was sentenced to 24 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Aguirre pled guilty to the charge on August 22, 2014. The charge related to Aguirre knowingly being in possession of an unregistered, sawed-off Remington .22 caliber rifle when he was pulled over by the South Dakota Highway Patrol on April 12, 2014.
This case was investigated by the Unified Narcotics Enforcement Team, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Aguirre was immediately turned over to the custody of the U.S. Marshals Service.
Buffalo Woman Sentenced for Bank FraudRead 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 Nichole Dean, 27, of Buffalo, NY, who was convicted of bank fraud, was sentenced to time served and two years supervised release by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $7,612.73 in restitution.Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant was part of a conspiracy to defraud local area banks by participating in a scheme sometimes referred to as “Check Kiting.” Dean would open bank accounts and deposit large checks to the accounts. The deposited checks were written on accounts that had insufficient funds or on accounts that had been closed. Before the banks could determine that the checks were not supported by any funds, the defendant withdrew smaller amounts from the accounts. Although Dean made away with $7,612.73, the amount of the intended loss was more than $36,000.
Co-conspirators Carlique Deberry, Sade Heath and Sayonara Heath have all been convicted of similar charges.
The sentencing is the culmination of an investigation by the United States Secret Service, under the direction of Acting Special Agent in Charge Michael Adelizzio.
Buffalo Woman Arrested, Charged with FraudRead 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 Kalah O. Bishop, 25, of Buffalo, NY, was arrested and charged by criminal complaint with fraud in connection with the use of access devices. The charge carries a maximum penalty of 15 years in prison, and a fine of $250,000.Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendant participated in a scheme involving the filing of fraudulent Federal income tax returns via the internet with the Internal Revenue Service. According to the complaint, approximately 49 fraudulent returns were filed for the tax year 2013 with requested refunds totaling more than $200,000.
The complaint further states that the IRS issued refunds to prepaid debit cards in the names of numerous individuals. Bishop subsequently used the cards to make cash withdrawals at local automated teller machines.
Bishop made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and was released.
The criminal complaint is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
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.
Buffalo Man Sentenced on Drug ChargesRead 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 John J. Myers, 41, of Buffalo, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to 60 months in prison by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on November 15, 2012, law enforcement officers executed a search warrant at the defendant’s residence in the City of Buffalo. During the search, officers recovered 241 grams of crack cocaine.
The plea was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
Buffalo Man Pleads Guilty to Cocaine ChargeRead 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 Charles Palmer, Sr., 51, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine before Chief U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between November 2010 and June 2011, the defendant conspired with others to distribute cocaine in the City of Buffalo. On May 20, 2011, June 2, 2011 and June 7, 2011, Palmer sold cocaine to a confidential source working with the Federal Bureau of Investigation.
Charles Palmer, Jr. has been convicted of possession with intent to distribute, and to distribute, marijuana and will be sentenced in April 2015.
The plea is the culmination of an investigation by the Federal Bureau of Investigation.
Sentencing is scheduled for April 22, 2015 at 10:00 a.m. before Judge Skretny.
Buffalo Man Indicted on Sex Trafficking ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a three-count indictment charging Anthony Thompson, a/k/a Fresh Tone, 34, of Buffalo, NY, with sex trafficking by force, fraud, or coercion and sex trafficking of a minor. The charges carry a maximum penalty of life in prison, and a fine of $250,000.Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that according to the indictment, Thompson is accused of the sex trafficking of two adults and one minor, between November 2012 and September 2014. The indictment further states that the defendant used force, fraud, or coercion to cause the victims to engage in commercial sex acts and would receive financial benefit from the commercial sex acts in which the victims engaged.
The defendant was arraigned on December 19, 2014. Thompson pleaded not guilty before U.S. Magistrate Judge H. Kenneth Schroeder and is being held pending a detention hearing on December 29 at 10:30 a.m.
The Indictment is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Cheektowaga Police Department, under the direction of Chief David Zack.
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.
Bridgeport Man Sentenced to Two Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHNATHAN REYES, also known as “Whitey,” 24, of Bridgeport, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 24 months of imprisonment, followed by two years of supervised release, for illegally possessing a firearm.
This matter stems from an FBI Bridgeport Safe Streets Task Force into narcotics trafficking activity and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. On December 18, 2013, a federal grand jury returned an 18-count indictment charging 14 individuals, including Ronell Hanks, also known as “Biz” and “Ace,” with various narcotics and firearms offenses.
When Hanks was arrested on December 5, 2013, task force officers seized from him an Apple iPad that contained numerous videos, including three that depicted both Hanks and REYES at the Bridgeport Shooting Range firing a long gun and a handgun. The investigation revealed that the videos were recorded on February 27, 2013.
In February 2007, REYES was convicted in state court of first degree burglary, reckless endangerment, risk of injury and possessing a pistol without having a permit. For these offenses he was sentenced to eight years of imprisonment, execution suspended after four years, and three years of probation.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
REYES has been detained since his arrest on May 1, 2014. On September 30, 2014, he pleaded guilty to one count possession of a firearm by a previously convicted felon.
Hanks has pleaded guilty and awaits sentencing.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, Norwalk Police Department, Trumbull Police Department and Connecticut State Police Statewide Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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[email protected]Bloomfield Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
Defendant Prosecuted as Part of Federal Initiative to Address
the Epidemic Incidence of Violence Against Native WomenALBUQUERQUE – Jasper Fernandez, 40, an enrolled member of the Navajo Nation who resides in Bloomfield, N.M., entered a guilty plea this morning to a felony information charging him with involuntary manslaughter. Under the terms of his plea agreement, Fernandez will be sentenced to a prison term within the range of 37 and 46 months followed by a term of supervised release to be determined by the court.
Fernandez was arrested on Feb. 22, 2012, on a criminal complaint charging him with the Nov. 4, 2011, murder of a 36-year-old Navajo woman on the Navajo Indian Reservation.During today’s plea hearing, Fernandez admitted that he killed the victim while defending himself from a physical assault by the victim. According to the plea agreement, Fernandez and the victim were both intoxicated when the victim began kicking and punching Fernandez because he criticized her. Fernandez, who lost a tooth as a result of the assault, pushed the victim away too hard and caused her to hit her head against the door pillar of a vehicle and die. Fernandez acknowledged that instead of seeking medical attention for the victim or contacting the police, he attempted to conceal his crime by burying the victim’s remains.
Fernandez remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque and Farmington offices of the FBI, the Navajo Nation Department of Public Safety and San Juan County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Bank Leumi Admits to Assisting U.S. Taxpayers in Hiding Assets in Offshore Bank AccountsRead the Press Release
A major Israeli international bank admitted that it conspired to aid and assist U.S. taxpayers to prepare and present false tax returns to the Internal Revenue Service (IRS) by hiding income and assets in offshore bank accounts in Israel and elsewhere around the world. A deferred prosecution agreement between the Bank Leumi Group and the Department of Justice was filed today in the Central District of California that defers prosecution on a criminal information charging the bank with conspiracy to aid and assist in the preparation and presentation of false tax returns and other documents to the Internal Revenue Service. This unprecedented agreement marks the first time an Israeli bank has admitted to such criminal conduct which spanned over a 10 year period and included an array of services and products designed to keep U.S. taxpayer accounts concealed at Bank Leumi Group’s locations in Israel, Switzerland, Luxembourg and the United States.
The Bank Leumi Group’s parent company is Bank Leumi le-Israel, B.M. Bank Leumi le-Israel is one of Israel’s largest banks, with subsidiaries in seven countries and more than 13,000 employees. Other subsidiary banks entering into this deferred prosecution agreement include The Bank Leumi le-Israel Trust Company Ltd., the oldest and largest of all bank trust companies in Israel; Leumi Private Bank S.A., a Switzerland-based subsidiary; Bank Leumi (Luxembourg) S.A., a Luxembourg-based subsidiary; and Bank Leumi USA, a FDIC-insured, full-service commercial bank with offices in California, Florida, Illinois and New York.
According to documents filed in the case, to account for their criminal conduct, Bank Leumi Group will pay the United States a total of $270 million. Of this total payment, $157 million represents a penalty for U.S. taxpayer accounts held at Leumi Private Bank in Switzerland. This $157 million penalty is consistent with the department’s Swiss Bank Program, which permits certain Swiss Banks to avoid prosecution by making a full and complete disclosure of their U.S. taxpayer-held accounts and paying substantial penalties. The agreement further provides that Bank Leumi Luxembourg and Leumi Private Bank will cease to provide banking and investment services for all accounts held or beneficially owned by U.S. taxpayers.
“The Bank Leumi Group recognized that the writing is on the wall for offshore banking, and cooperating with the government’s investigation was the only way to proceed,” said Deputy Attorney General James M. Cole. “This deferred prosecution agreement demonstrates both that the Justice Department will hold financial institutions accountable for their crimes, and that we will be fair in recognizing extraordinary cooperation.”
According to the filed statement of facts, from at least 2000 until early 2011, the Bank Leumi Group took affirmative and extensive steps to assist U.S. clients in concealing their assets offshore, including:
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surreptiously sending private bankers from Israel and elsewhere around the world to the United States to meet secretly with U.S. clients at hotels, parks and coffee shops to discuss their offshore account activity;
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assisting U.S. clients in using nominee corporate entities created in Belize and other foreign jurisdictions to hide their undeclared accounts by concealing the U.S. client as the true beneficial owner of the account;
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using the Bank Leumi le-Israel Trust Company as a nominee account holder for U.S. clients with accounts in Israel to conceal the U.S. client as the true beneficial owner of the account;
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maintaining U.S. clients’ undeclared offshore accounts under assumed names or numbered accounts to conceal the U.S. client as the true beneficial owner of the account;
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providing hold mail services so that correspondence and other account information would not go directly to the U.S. client to make it more difficult to connect the client to the secret offshore account;
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extending loans to U.S. clients from Bank Leumi USA that were collateralized by the assets in those clients’ offshore accounts, so that the clients could leverage their offshore assets to obtain and use capital in the United States while keeping their foreign accounts secret and undetected from the U.S. government; and
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after the department’s investigation into UBS and other Swiss banks’ criminal conduct in aiding U.S. taxpayers to evade their taxes became public, the Bank Leumi Group opened and maintained accounts for U.S. taxpayers who left UBS and other Swiss banks due to the investigation in an effort to continue to avoid detection by the U.S. government.
“The Bank Leumi Group’s admission of guilt to knowingly conspiring to assist U.S. taxpayers in filing false income tax returns and other documents with the Internal Revenue Service (IRS) represents the Department of Justice’s next step in its worldwide efforts to hold banks and other financial institutions responsible for their criminal conduct,” said the Tax Division’s Acting Deputy Assistant Attorney General Larry J. Wszalek. “Those institutions that have engaged, or continue to engage, in conduct similar to that of Bank Leumi Group are well advised that the Tax Division will continue to extend its global reach in enforcing this nation’s criminal tax laws.”
According to documents filed in the case, as part of its agreement with the department, the Bank Leumi Group provided the names of more than 1,500 of its U.S. account holders. As part of the agreement, the Bank Leumi Group will continue to disclose information to the government regarding its cross-border business and provide testimony and information regarding other investigations.
“There are many provisions of federal law that can benefit taxpayers, but maintaining secret offshore accounts to conceal assets is not a legal method of lowering one’s tax liability,” said Acting U.S. Attorney Stephanie Yonekura for the Central District of California. “Any financial institution – no matter where it operates – will be held accountable if it helps U.S. residents dodge their tax responsibilities. This agreement with Leumi Bank is the latest notice to American taxpayers who might flout the law that we can and will uncover your hidden assets.”
“Today’s deferred prosecution announcement against Leumi Bank is yet another historical event in the international tax arena,” said Commissioner John Koskinen of the IRS. “IRS will not tolerate the use of offshore accounts to illegally escape paying taxes and we will continue to focus on this priority area.”
“This case shows that banks who promote the use of offshore tax schemes against the United States will be held accountable and face substantial fines and penalties,” said Chief Richard Weber of IRS-Criminal Investigation. “This investigation involved untangling a complex web of financial transactions where Bank Leumi assisted U.S. taxpayers in concealing undeclared bank accounts. As the premier financial investigators in the world, and the only law enforcement agency to investigate tax cases, our special agents will continue to investigate banks and individuals who violate the U.S. tax laws no matter where they reside.”
This case was prosecuted by Trial Attorneys Christopher S. Strauss, Ellen M. Quattrucci and Dennis R. Kihm for the Tax Division. The Tax Division expressed gratitude to Assistant U.S. Attorney Sandra R. Brown and the U.S. Attorney’s Office for the Central District of California for their invaluable assistance in the investigation and prosecution of this case. The case was investigated by IRS-Criminal Investigation.
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Attorney General Holder Statement on President Obama's Intent to Nominate US Attorney Sally Yates to be Deputy Attorney GeneralRead the Press Release
WASHINGTON—Attorney General Eric Holder released the following statement Monday in response to President Obama’s announcement of his intent to nominate Sally Yates, the U.S. Attorney for the Northern District of Georgia, to serve as the next Deputy Attorney General, succeeding James M. Cole:
"I congratulate Sally Yates on her forthcoming nomination as Deputy Attorney General -- an important and demanding office in which she will most certainly excel.
"Over the years, I have come to know, admire, and rely on Sally as an essential leader of the U.S. Attorney community. As a longtime career prosecutor, she has handled a wide range of complex and high-profile cases with remarkable skill and poise.
"Sally's leadership in combating public corruption has rightfully earned the accolades of her colleagues at every level of law enforcement. Her successful prosecution of Eric Rudolph for the Centennial Olympic Park bombing cemented her sterling reputation as a tough, and extremely talented, attorney. And her distinguished tenure as U.S. Attorney, and service as vice chair of the Attorney General's Advisory Committee, have been marked by indelible contributions in advancing the Justice Department's Smart on Crime initiative and other important policies.
“As Deputy Attorney General, Sally will play a critical role in leading the Department of Justice, building on our Smart on Crime reforms, and expanding on the record of achievement we have established during the last six years. I know her tenure will be defined by the same standard of excellence that has guided her throughout her career, and I am proud to join President Obama in congratulating her, once again, on her planned nomination."
Anchorage Woman Indicted for Making False Tax Claims Against the GovernmentRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Pepe Anetipa, 58, was indicted on 28 counts of making false, fictitious, and fraudulent claims against the government. According to the indictment, for tax year 2011, Pepe Anetipa filed falsified tax returns claiming total refunds of at least $202,859.00. Anetipa was arrested in Washington State on December 2, 2014, and arraigned in federal court in Anchorage, on December 18, 2014. She pleaded not guilty. Trial is set for February 9, 2015.
According to the Indictment, Anetipa moved from American Samoa to Anchorage, Alaska, in approximately July 2011. Anetipa obtained a State of Alaska business license on February 6, 2012, for Triple-H Tax and Services. Citizens of the United States Territory of American Samoa are issued social security numbers by the Social Security Administration; however, they are not required to file tax returns with the Internal Revenue Service if all of their income was derived from sources in American Samoa.
Allegedly, Anetipa used wage information and tax withholding reported to residents of American Samoa on a “Form W-2AS American Samoa Wage and Tax Statement” and transferred the information to a regular “Form W-2 Wage and Tax Statement”. Anetipa also changed the addresses on the Forms W-2 to be either Texas or Alaska addresses instead of the Pago Pago, American Samoa addresses. The altered Forms W-2 gave the tax returns the false appearance that the income was earned in the United States rather than America Samoa and that federal tax withholding was paid into the U.S. system. Anetipa then submitted the altered Forms W-2 with tax returns she prepared. Anetipa submitted these false tax returns knowing that none of the individuals who had tax returns prepared by Anetipa earned wages outside of America Samoa. The refund claims were materially false because, in fact, no federal taxes had been withheld, no credits were due, and therefore no refund was due and owing.
An indictment is merely an accusation of charges and the defendant is presumed innocent until proven guilty. The defendant is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. Making false claims against the government carries a sentence of up to five years for each false return.
The case is being prosecuted by Assistant U.S. Attorney Thomas Bradley of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
Alstom Pleads Guilty and Agrees to Pay $772 Million Criminal Penalty to Resolve Foreign Bribery ChargesRead the Press Release
Alstom S.A. (Alstom), a French power and transportation company, pleaded guilty today and agreed to pay a $772,290,000 fine to resolve charges related to a widespread scheme involving tens of millions of dollars in bribes in countries around the world, including Indonesia, Saudi Arabia, Egypt and the Bahamas.
Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Michael J. Gustafson of the District of Connecticut and FBI Executive Assistant Director Robert Anderson Jr. made the announcement.
“Alstom’s corruption scheme was sustained over more than a decade and across several continents,” said Deputy Attorney General Cole. “It was astounding in its breadth, its brazenness and its worldwide consequences. And it is both my expectation – and my intention – that the comprehensive resolution we are announcing today will send an unmistakable message to other companies around the world: that this Department of Justice will be relentless in rooting out and punishing corruption to the fullest extent of the law, no matter how sweeping its scale or how daunting its prosecution.”
“This case is emblematic of how the Department of Justice will investigate and prosecute FCPA cases – and other corporate crimes,” said Assistant Attorney General Caldwell. “We encourage companies to maintain robust compliance programs, to voluntarily disclose and eradicate misconduct when it is detected, and to cooperate in the government’s investigation. But we will not wait for companies to act responsibly. With cooperation or without it, the department will identify criminal activity at corporations and investigate the conduct ourselves, using all of our resources, employing every law enforcement tool, and considering all possible actions, including charges against both corporations and individuals.”
“Today’s historic resolution is an important reminder that our moral and legal mandate to stamp out corruption does not stop at any border, whether city, state or national,” said First Assistant U.S. Attorney Gustafson. “A significant part of this illicit work was unfortunately carried out from Alstom Power’s offices in Windsor, Connecticut. I am hopeful that this resolution, and in particular the deferred prosecution agreement with Alstom Power, will provide the company an opportunity to reshape its culture and restore its place as a respected corporate citizen.”
“This investigation spanned years and crossed continents, as agents from the FBI Washington and New Haven field offices conducted interviews and collected evidence in every corner of the globe,” said FBI Executive Assistant Director Anderson. “The record dollar amount of the fine is a clear deterrent to companies who would engage in foreign bribery, but an even better deterrent is that we are sending executives who commit these crimes to prison.”
Alstom pleaded guilty to a two-count criminal information filed today in the U.S. District Court for the District of Connecticut, charging the company with violating the Foreign Corrupt Practices Act (FCPA) by falsifying its books and records and failing to implement adequate internal controls. Alstom admitted its criminal conduct and agreed to pay a criminal penalty of $772,290,000. U.S. District Judge Janet B. Arterton of the District of Connecticut scheduled a sentencing hearing for June 23, 2015 at 3pm.
In addition, Alstom Network Schweiz AG, formerly Alstom Prom (Alstom Prom), Alstom’s Swiss subsidiary, pleaded guilty to a criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Alstom Power Inc. (Alstom Power) and Alstom Grid Inc. (Alstom Grid), two U.S. subsidiaries, both entered into deferred prosecution agreements, admitting that they conspired to violate the anti-bribery provisions of the FCPA. Alstom Power is headquartered in Windsor, Connecticut, and Alstom Grid, formerly Alstom T&D, was headquartered in New Jersey.
According to the companies’ admissions, Alstom, Alstom Prom, Alstom Power and Alstom Grid, through various executives and employees, paid bribes to government officials and falsified books and records in connection with power, grid and transportation projects for state-owned entities around the world, including in Indonesia, Egypt, Saudi Arabia, the Bahamas and Taiwan. In Indonesia, for example, Alstom, Alstom Prom, and Alstom Power paid bribes to government officials – including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara, the state-owned electricity company in Indonesia – in exchange for assistance in securing several contracts to provide power-related services valued at approximately $375 million. In total, Alstom paid more than $75 million to secure $4 billion in projects around the world, with a profit to the company of approximately $300 million.
Alstom and its subsidiaries also attempted to conceal the bribery scheme by retaining consultants purportedly to provide consulting services on behalf of the companies, but who actually served as conduits for corrupt payments to the government officials. Internal Alstom documents refer to some of the consultants in code, including “Mr. Geneva,” “Mr. Paris,” “London,” “Quiet Man” and “Old Friend.”
The plea agreement cites many factors considered by the department in reaching the appropriate resolution, including: Alstom’s failure to voluntarily disclose the misconduct even though it was aware of related misconduct at a U.S. subsidiary that previously resolved corruption charges with the department in connection with a power project in Italy; Alstom’s refusal to fully cooperate with the department’s investigation for several years; the breadth of the companies’ misconduct, which spanned many years, occurred in countries around the globe and in several business lines, and involved sophisticated schemes to bribe high-level government officials; Alstom’s lack of an effective compliance and ethics program at the time of the conduct; and Alstom’s prior criminal misconduct, including conduct that led to resolutions with various other governments and the World Bank.
After the department publicly charged several Alstom executives, however, Alstom began providing thorough cooperation, including assisting the department’s prosecution of other companies and individuals.
To date, the department has announced charges against five individuals, including four corporate executives of Alstom and its subsidiaries, for alleged corrupt conduct involving Alstom. Frederic Pierucci, Alstom’s former vice president of global boiler sales, pleaded guilty on July 29, 2013, to conspiring to violate the FCPA and a charge of violating the FCPA for his role in the Indonesia bribery scheme. David Rothschild, Alstom Power’s former vice president of regional sales, pleaded guilty on Nov. 2, 2012, to conspiracy to violate the FCPA. William Pomponi, Alstom Power’s former vice president of regional sales, pleaded guilty on July 17, 2014, to conspiracy to violate the FCPA. Lawrence Hoskins, Alstom’s former senior vice president for the Asia region, was charged in a second superseding indictment on July 30, 2013, and is pending trial in the District of Connecticut in June 2015. The charges against Hoskins are merely allegations, and he is presumed innocent unless and until proven guilty. The high-ranking member of Indonesian Parliament was also convicted in Indonesia of accepting bribes from Alstom, and is currently serving a three-year term of imprisonment.
In connection with a corrupt scheme in Egypt, Asem Elgawhary, the general manager of an entity working on behalf of the Egyptian Electricity Holding Company, a state-owned electricity company, pleaded guilty on Dec. 4, 2014, in federal court in the District of Maryland to mail fraud, conspiring to launder money, and tax fraud for accepting kickbacks from Alstom and other companies. In his plea agreement, Elgawhary agreed to serve 42 months in prison and forfeit approximately $5.2 million in proceeds.
This case is being investigated by the FBI’s Washington Field Office, with assistance from the FBI’s Meriden, Connecticut Resident Agency, and the FBI’s Newark and Baltimore Divisions. The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission), the Office of the Attorney General in Switzerland, the Serious Fraud Office in the United Kingdom, as well as authorities in Germany, Italy, Singapore, Saudi Arabia, Cyprus and Taiwan.
The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut, together with Assistant U.S. Attorney Zach Intrater of the District of New Jersey on the investigation of Alstom Grid and Assistant U.S. Attorney David I. Salem of the District of Maryland on the investigation of Asem Elgawhary. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Sunday 21 December 2014
Rigoberto Schmidt of Grand Island IndictedRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned a five-count indictment against Rigoberto Schmidt, 22, of Grand Island. The Indictment charges Schmidt with four counts of selling a firearm to a felon resulting from two incidents in April, 2014, and two incidents in May, 2014. The fifth count charges Schmidt with the sale of a stolen firearm from an incident in May, 2014.
The maximum possible penalty for each charge if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment for each count.
Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Harvey Fuller and Christina Doyle of Grand Island IndictedRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned a two-count indictment against Harvey Fuller, 48, and Christina Doyle, 47, both of Grand Island. The Indictment charges Fuller and Doyle with one count each of distribution of methamphetamine in March, 2014.
Fuller faces a maximum possible penalty if convicted of 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment for each count.
Doyle faces a maximum possible penalty if convicted of 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment for each count.
Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Grand Island Man Sentenced to 262 Months Imprisonment for Drug TraffickingRead the Press Release
United States Attorney Deborah R. Gilg announced that Fernando Martinez, 26 years old, was sentenced on December 18, 2014, to serve 262 months imprisonment, and 5 years of supervised release after his prison sentence is complete, by the Honorable Richard G. Kopf, Senior United States District Court Judge. An indictment filed in May of 2014 charged Martinez with possessing 50 grams or more of methamphetamine, with the intent to distribute. Martinez pleaded guilty to that charge on August 28, 2014.
Evidence at the sentencing hearing showed that Martinez was a member of a street gang known as the “East Side Locos” in Grand Island. An investigator with the Grand Island Police Department, and who is also a member of the Central Nebraska Drug and Safe Streets Task Force, testified that Martinez is known to use the moniker “Silent.” The Court received into evidence copies of two music videos produced by members of the East Side Locos gang. The videos credited “Silent” as performing some of the songs. The lyrics in the songs promoted drugs, violence and gang membership. The investigator also testified about an incident where Martinez was previously convicted for unlawful discharge of a firearm for a drive-by-shooting incident which occurred in Grand Island in March of 2007. The house targeted in that drive-by-shooting was the home of two rival gang members.
This case was investigated by the Grand Island Police Department, and the Central Nebraska Drug and Safe Streets Task Force.
Saturday 20 December 2014
Attorney General Holder Statement on Assassination of Two New York City Police Officers in Line of DutyRead the Press Release
Attorney General Eric Holder released the following statement Saturday regarding the fatal shootings of two New York City police officers:
“I condemn this afternoon's senseless shooting of two New York City police officers in the strongest possible terms. This was an unspeakable act of barbarism, and I was deeply saddened to hear of the loss of these two brave officers in the line of duty.
“On behalf of all those who serve in the United States Department of Justice, I want to express my heartfelt condolences to the officers' loved ones and colleagues. I will make available all of the resources of the Department to aid the NYPD in investigating this tragedy.
"This cowardly attack underscores the dangers that are routinely faced by those who protect and serve their fellow citizens. As a nation we must not forget this as we discuss the events of the recent past. These courageous men and women routinely incur tremendous personal risks, and place their lives on the line each and every day, in order to preserve public safety. We are forever in their debt.
"Our nation must always honor the valor -- and the sacrifices -- of all law enforcement officers with a steadfast commitment to keeping them safe. This means forging closer bonds between officers and the communities they serve, so that public safety is not a cause that is served by a courageous few, but a promise that's fulfilled by police officials and citizens working side by side."
Friday 19 December 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Steven M. McCloughan, 56, of Elkhart, Indiana was sentenced to 126 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of transportation of child pornography. According to documents filed in this case, on or about July 4, 2013, McCloughan possessed a computer onto which he had downloaded from the internet numerous images and videos that depicted minors engaged in sexually explicit conduct (“child pornography”). McCloughan also admitted emailing a short video file that depicted sadistic conduct. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
- John D. Burke, of Mishawaka, Indiana was sentenced to 79 months imprisonment with 15 years supervised release after pleading guilty to the felony offense of possession of child pornography. According to documents filed in this case, on January 30, 2014, Burke possessed a computer onto which he had downloaded numerous images and videos that depicted minors engaged in sexually explicit conduct (“child pornography”). He knew the images were child pornography as defined by 18 U.S.C. 2256, which defines child pornography as a depiction which “involves the use of a minor engaging in sexually explicit conduct.” Burke also admitted that some of these depictions were of prepubescent minors or minors who had not attained the age of 12 years, and that some images depicted sadistic conduct. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
- Jeremy L. Hall, 38, of Warsaw, Indiana was sentenced to 97 months imprisonment with 15 years supervised release after pleading guilty to the felony offense of distribution of child pornography. According to documents filed in this case, on February 27, 2014, Hall possessed a computer onto which he had downloaded numerous images and videos that depicted minors engaged in sexually explicit conduct (“child pornography”). He knew the images were child pornography as defined by 18 U.S.C. 2256, which defines child pornography as a depiction which “involves the use of a minor engaging in sexually explicit conduct.” Hall also admitted that some of the images and videos were depictions of prepubescent minors or minors who had not attained the age of 12 years, and that some images depicted sadistic conduct. This case was the result of an investigation by the Federal Bureau of Investigation This case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
- Carlis Young, 36, of Indianapolis, Indiana was sentenced to 37 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of being an unlawful user of a controlled substance in possession of a firearm. According to documents filed in this case, on April 22, 2014, Young was arrested for domestic violence against his girlfriend. Before he was taken to jail, Young stated the apartment was his and denied consent to search. His girlfriend, however, gave consent to search. Inside the apartment, which smelled of burning marijuana, a loaded .22 caliber revolver was found within reach of the couch officers had Young sit. A shotgun was also found in the closet of Young and his girlfriend’s bedroom, in addition to marijuana, crack cocaine and cocaine. Young admitted that the drugs were his and that the he was a regular cocaine user. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jesse M. Barrett.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Creekside at Meadowbrook, LLC and Creekside at Meadowbrook West, LLC, two Indiana corporations with properties located in Lowell, Indiana, were ordered to authorize the release of assets totaling $189,953.24 dollars to the U.S. Department of Housing and Urban Development as restitution, as well as pay a special assessment of $800, after pleading guilty to submitting false statements to HUD. According to documents filed in this case, between March 2009 and continuing through March 2010, the defendants submitted materially false and fraudulent statements to HUD in that the submissions inflated their financial status in order to obtain a HUD mortgage. This case was the result of an investigation the U.S. Department of Housing and Urban Development-Office of Inspector General. This case was prosecuted by Assistant United States Attorney Toi Denise Houston.
- Tambra Ducker, 26, of Indianapolis, Indiana was sentenced to three (3) years probation after pleading guilty to the felony offense of possession with intent to distribute heroin. According to documents filed in this case, Ducker was one of the passengers in a vehicle stopped by the Jasper County Sheriff’s Department on February 25, 2013. Ducker consented to a search of her purse and officers found 150 grams of heroin which she admitted belonged to her. This case was the result of an investigation by the DEA. This case was prosecuted by Assistant United States Attorney Jennifer Chang.
- Jamol Hardin, 41, of Columbus, Ohio was sentenced to probation for 3 years after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on April 9, 2009, Harding, having been convicted of a crime punishable by a term of imprisonment exceeding one year, knowingly possessed, in and affecting commerce, a firearm. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
- Jeremy Lamar Lloyd, 23, of Gary, Indiana was sentenced to 46 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on July 21, 2011, Lloyd knowingly possessed, in and affecting commerce, a .25 caliber semi-automatic pistol after previously having been convicted of a crime punishable by imprisonment exceeding one year. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
- John Lytle, 37, of Gary, IN was sentenced to 100 months imprisonment with 3 years of supervised release after pleading guilty to the felony offenses of being a felon in possession of a firearm and distribution of cocaine base. According to documents filed in the cases, in May of 2013, an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives revealed that Lytle was selling both cocaine base and firearms within Gary, Indiana. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
- Carey Ray, 31, of Chicago, Illinois was sentenced to 320 months’ imprisonment followed by 15 years of supervised release after being found guilty at trial of the felony offense of transporting a minor child across state lines with intent to engage in criminal sexual activity. According to documents filed in the case, on October 8, 2012, Carey Ray picked up a child he knew to be 14 years old and transported her from Hammond, Indiana to a hotel in Lansing, Illinois. Once there, Carey Ray provided the minor child with alcohol and marijuana. Thereafter, Carey Ray made a sexual advance and, when rebuffed, forcibly committed a sex act on the child. This case was the result of an investigation by the Federal Bureau of Investigation and the Lansing Police Department. This case was prosecuted by Assistant United States Attorneys Jill Koster and Joshua Kolar.
- David Alan Resnick, 35, of Port St. Lucie, Florida was sentenced, following his convictions at trial of the federal felony offenses of transporting a minor under age 12 across state lines with intent to engage in a sexual (Count 1) of the indictment, transporting child pornography across state lines (Count 2), brandishing a firearm in furtherance of a crime of violence ( that violent crime being the act alleged in Count 1 of the indictment) (Count 3) and possessing a firearm despite a prior felony conviction (Count 4). Resnick was sentenced to life in prison on Count 1, twenty (20) years of incarceration on Count 2, seven (7) years of incarceration on Count 3 and ten (10) years of incarceration on Count 4, with the sentences on Counts 1, 2 and 4 to run concurrently and the sentence on Count 3 to run consecutively, for a combined total prison sentence of life plus seven years. If released from prison, Resnick will also have to serve a 15 year term of supervised release, during which time he will be required to register as a sex offender. According to documents filed in this case, in the summer of 2008, Resnick, who was employed as a commercial truck driver, took the 9 year-old victim from Indiana to various states on a two-week road trip. During the trip, Resnick showed the victim child pornography featuring other prepubescent children and forced the minor to engage in sexual acts. At one point when Defendant, a previously convicted felon, was pulled over by police for failing to stop at a truck weigh station, he brandished a firearm and pointed it at the child victim’s head, threatening to kill the child if he disclosed the sexual abuse. The child did not speak to police and the trip continued. A second child victim testified at trial that he was later invited to attend an overnight pool party with Resnick at a local Indiana hotel and he awoke to find Resnick fondling his genitals. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Jill R. Koster and Thomas M. McGrath.
- Percy Spurlock, 60, of Gary, Indiana was sentenced to 151 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of possession with intent to distribute crack cocaine. According to documents filed in this case, a federal search warrant was executed at Spurlock’s residence located at in the 1900 block of Central Drive, Gary, Indiana on October 4, 2012. Agents recovered five (5) firearms, crack cocaine, and drug paraphernalia from the residence. This case was the result of an investigation by the Federal Bureau of Investigation GRIT task force. This case was prosecuted by Assistant United States Attorney Jennifer Chang.