Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 19 December 2014
Former School Employee Pleads Guilty to Enticing A MinorCharge Involves Series of Facebook MessagesRead the Press Release
WASHINGTON – Joseph A. Morales, 27, a former teacher’s aide at Cardozo Education Campus in the District of Columbia, pled guilty today to enticing a minor in violation of District of Columbia law, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Morales, now of Brooklyn, N.Y., entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Rhonda Reid Winston is to sentence him on Feb. 27, 2015. The charge carries a statutory maximum of five years in prison and a fine of up to $12,500.
According to the government's evidence, between May 2013 and May 2014, Morales engaged in a series of Facebook messaging sessions with a 16-year old student at the high school. During those sessions, Morales was employed as a teacher’s aide and substitute teacher, and had administrative duties at the school. He repeatedly asked the student for images of the student’s penis and asked that the student engage in sexual acts with him.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge McCabe and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
14-283Former Hanover Post Office Employee Charged for Mail TheftRead the Press Release
BOSTON – Amber Lopresti, 28, of Taunton, was indicted for embezzling the U.S. mail and stealing the contents of the U.S. mail while she was an employee of the United States Postal Service in Hanover.
The charging statutes provide a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Rafael Medina, Special Agent In Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; and Hanover Police Chief Walter Sweeney, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Former Employee at Ft. Meade Youth Center Sentenced to 8 Years in Prison for Sexually Abusing a MinorRead the Press Release
U.S. Attorney Warns that “Parents Must Be Relentless About Reading Children’s Text Messages and Checking Their Social Media Accounts
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Anthony Dennis Williams II, age 28, of Severn, Maryland, a former employee at the Fort Meade Youth Center, to eights years in prison, followed by three years of supervised release, for abusive sexual contact, and sexually abusing a minor.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Frank Robey, Director, U.S. Army Criminal Investigation Command (CID), Major Procurement Fraud Unit.“Parents must to be relentless about reading children’s text messages and checking their social media accounts,” said U.S. Attorney Rod J. Rosenstein. “Keep your children’s passwords, read all of their incoming and outgoing messages, and take immediate action if they send or receive inappropriate messages.”
"We are very pleased with today's sentencing and will continue to do everything in our power to see predators like this brought to justice," said Special Agent Ed Collins with the U.S. Army Criminal Investigation Command. "We will continue to aggressively work shoulder to shoulder with our fellow law enforcement agencies to protect our most valuable and precious resource for the future -- our children."
According to his plea agreement, for about eight years prior to 2013, Williams was a counselor at the Fort Meade Child and Youth Services center. Williams also taught a program at the center called Passport to Manhood (P2M) which was a life course for juvenile males attending CYS. In this program, he went on annual overnight trips with some of the youth members.
During the summer of 2013, CID investigators learned that Williams may have had illegal sexual contact with at least one boy he met at the center. The boy’s mother found text messages between her son and Williams referencing sexual acts. When interviewed by officers of the Citrus County, Florida, Sheriff’s Office, and later by CID, the boy said he attended the center while in 7th grade and participated in the P2M programs. One day while at the center, Williams asked the boy to go to the attic of the center to get equipment. Once there, Williams asked the boy to take his clothes off. The boy refused. Williams put the boy’s hands on Williams’ genital area, and Williams then touched the boy’s genital area. Williams was about 25 years old, and the boy 12 years old, during this incident. Williams also sent the boy at least one photo of his exposed genital area.
In October 2013, FBI and CID agents interviewed Williams. Williams identified a second boy with whom he had contact at the center. This additional victim was interviewed, and stated that Williams took him to the center’s attic and solicited oral sex from him. They had oral sex on one occasion in the attic when the victim was in eighth grade. They also had anal sex on another occasion outside of Ft. Meade, when the victim was about 16 years old.
FBI and CID agents canvassed other patrons of the center and friends of Williams. One individual, who had worked with Williams at the center, advised that in years past her children hung out with Williams, and slept over at Williams’ house. The woman’s oldest son reported that some years earlier, when he was in elementary school and spent a night at Williams’ apartment in Odenton, Maryland, he woke in the middle of the night to what he thought was Williams grabbing him in the genital area. During another sleep-over at Williams’ house, the boy said he fell asleep on the floor, and woke up in a bed, and his bottom felt funny.United States Attorney Rod J. Rosenstein praised the FBI and Army CID for their work in the investigation and thanked the Citrus County, Florida Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.
Former Corrections Officer Sentenced for Accepting BribesRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Antoine D. Clark (30, Orlando) to three years and one month in federal prison for receipt of a bribe by a public official. The Court also entered a money judgment against him in the amount of $28,450, which represents the proceeds of the offense. Clark pleaded guilty on September 23, 2014.
According to court documents, Clark was employed as a Corrections Officer at the Coleman Federal Correctional Complex (USP-2) in Sumter County. Based on information from inmates at the facility, agents discovered that Clark had been smuggling tobacco products, alcoholic beverages, cell phones, and pornography into the prison. In exchange for these items, inmates had arranged for Clark to be paid by cash or wire transfers from third parties.
Following his arrest on June 26, 2014, Clark admitted that he had smuggled contraband into the prison in exchange for bribes. He received $28,450.00 in illegal payments, all of which is being forfeited.
This case was investigated by the Department of Justice, Office of the Inspector General. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Consultant to New York Democratic Senate Campaign Committee Sentenced in White Plains Federal Court to Three Years in Prison for Tax and Fraud ConvictionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELVIN LOWE, a former consultant to the New York State Democratic Senate Campaign Committee ("DSCC"), was sentenced today to 36 months in prison for conspiring with New York State Senator John Sampson to defraud the DSCC of $100,000, and for personal income tax offenses. LOWE was convicted by a jury in September 2014. United States District Judge Vincent L. Briccetti imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Melvin Lowe’s corrupt actions were another example of a political figure in New York State putting his own personal greed ahead of the public’s trust. I hope that today’s sentence will send yet another powerful signal to any public official who questions the resolve of this office to root out public corruption.”
According to the Complaint, the Indictment filed in federal court and the evidence presented at trial:
LOWE was retained as a consultant by the DSCC after New York State Senator John Sampson was appointed as the Senate's Democratic Conference Leader following the June 2009 "coup" that temporarily shifted the balance of power in the New York Senate from the Democrats to the Republicans. In early June 2010, Sampson asked LOWE to arrange for a covert payment of $20,000 to Michael Nieves, a Queens-based political operative who had previously worked for former New York State Senator Hiram Monserrate and who had helped engineer the resolution of the Senate coup that had brought Sampson to power. LOWE then arranged for a New Jersey-based political consultant to submit a false invoice to the DSCC for $100,000 in printing services. Sampson approved payment of the invoice and the DSCC sent $100,000 to the New Jersey-based consultant. LOWE instructed the consultant to send $20,000 of the proceeds to Nieves, $75,000 of the proceeds to LOWE's consulting company, and to keep $5,000 for himself. The jury heard evidence that LOWE and Senator Sampson had a close relationship of trust that included LOWE giving Sampson an envelope of cash.
LOWE received more than $2.1 million in consulting income from 2007 to 2012. He reported less than $25,000 in income in each of his federal income tax returns for 2007 through 2009, which he did not file until late 2010. LOWE never filed tax returns for 2010 through 2012. He never made any payments toward his taxes for the years 2000 through 2012.
LOWE also caused a bank to make a false statement to his mortgage lender regarding the balance in his checking account. When the mortgage lender sent LOWE’s bank a Verification of Deposit form to verify LOWE's claim that he had $65,000 in his checking account, LOWE caused the assistant manager to claim that LOWE's account had a balance of more than $80,000. At that time, the balance in LOWE's checking account was $2,156.
In addition to the prison sentence, LOWE, 53, of Manhattan, was sentenced to three years’ supervised release.
Mr. Bharara praised the outstanding investigative work of the Internal Revenue Service - Criminal Investigation and the investigators from the U.S. Attorney's Office for the Southern District of New York.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Perry A. Carbone and James McMahon are in charge of the prosecution.
Former Chief Lending Officer Sentenced for Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Larry Malone, age 59, from Bainbridge, Georgia, was sentenced on December 16, 2014, to serve 48 months imprisonment and pay restitution in the amount of $ 25,540,896 to the Southwest Georgia Farm Credit and its insurers. The sentences were handed down by the Honorable W. Louis Sands, Senior United States District Judge, in Albany, Georgia.Mr. Malone was charged by both the United States Attorney for the Middle District of Georgia and the United States Attorney for Northern District of Florida with conspiracy to commit bank fraud and with accepting bribes and kickbacks. Both cases were consolidated in the Middle District of Georgia and heard by Judge Sands. Mr. Malone entered a guilty plea to the charges on September 22, 2011.
Malone was employed as Chief Lending Officer with Southwest Georgia Farm Credit for over 20 years, and was the Chief Lending Officer at the time of the offenses. From approximately 2001 to 2008, Mr. Malone made fraudulent loans to a variety of borrowers in both the Middle District of Georgia and the Northern District of Florida in the total amount of $25,540,896. Malone received a total of approximately $900,000.00in bribes and kickbacks from these borrowers.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office (478/621-2603).
“After the financial crisis we experienced, no one can legitimately question the importance of pursuing people like Mr. Malone, who commit bank fraud,” said United States Attorney Michael J. Moore.
The case was investigated by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Jim Crane, for the Middle District of Georgia, prosecuted the case.Former Ceo of Bitcoin Exchange Company Sentenced in Manhattan Federal Court to Two Years in Prison for Helping to Sell Nearly $1 Million in Bitcoins for Drug Buys on Silk RoadRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHARLIE SHREM, the former Chief Executive Officer and Compliance Officer of BitInstant, a Bitcoin exchange company, and the former Vice Chairman of the Bitcoin Foundation, was sentenced today to two years in prison for his role in knowingly transmitting nearly $1 million in Bitcoins intended to facilitate drug trafficking on “Silk Road,” a black-market website designed to enable users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement. SHREM pled guilty in September 2014 before U.S. District Judge Jed S. Rakoff, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Charlie Shrem knowingly facilitated the purchase and use of Bitcoins by others to buy illegal drugs on the Silk Road site. He willfully abdicated his duties as compliance officer of BitInstant, putting illegal profit ahead of legal and ethical responsibility. Now Shrem has been made to answer for his crimes.”
According to the allegations contained in the Complaint, the Indictment, the Superseding Information, and statements made in other documents filed in Manhattan federal court and related court proceedings:
From about December 2011 to October 2013, SHREM’s co-defendant, Robert M. Faiella, ran an underground Bitcoin exchange on the Silk Road website, a website that served as a sprawling and anonymous black market bazaar where illegal drugs of virtually every variety were bought and sold regularly by the site’s users. Operating under the username “BTCKing,” Faiella sold Bitcoins – the only form of payment accepted on Silk Road – to users seeking to buy illegal drugs on the site. Upon receiving orders for Bitcoins from Silk Road users, he filled the orders through BitInstant, a company based in New York, New York. BitInstant was designed to enable customers to exchange cash for Bitcoins anonymously, that is, without providing any personal identifying information, and charged a fee for its service. Faiella obtained Bitcoins with BitInstant’s assistance, and then sold the Bitcoins to Silk Road users at a markup.
SHREM was the Chief Executive Officer of BitInstant, and from about August 2011 until about July 2013, when BitInstant ceased operating, he was also its Compliance Officer, in charge of ensuring BitInstant’s compliance with federal and other anti-money laundering (“AML”) laws. SHREM was also the Vice Chairman of the Bitcoin Foundation, a foundation dedicated to promoting the Bitcoin virtual currency system.
SHREM, who allegedly bought drugs on Silk Road himself, was fully aware that Silk Road was a drug-trafficking website, and through his communications with Faiella, SHREM also knew that Faiella was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated Faiella’s business with BitInstant in order to maintain Faiella’s business as a lucrative source of revenue. SHREM knowingly allowed Faiella to use BitInstant’s services to buy Bitcoins for his Silk Road customers; personally processed Faiella’s orders; gave Faiella discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about Faiella’s illicit activity, as he was otherwise required to do in his role as BitInstant’s Compliance Officer; and deliberately helped Faiella circumvent BitInstant’s AML restrictions, even though it was SHREM’s job to enforce them and even though BitInstant had registered with the Treasury Department as a money services business.
Working together, SHREM and Faiella exchanged nearly $1 million in cash for Bitcoins for the benefit of Silk Road users, so that the users could, in turn, make illegal purchases on Silk Road.
In imposing the sentence, Judge Rakoff remarked: "There's no question that Mr. Shrem, over a period of many months, was knowingly, willfully, and to some extent excitedly, even passionately involved in activity that he knew was a serious violation of the law and that was promoting the evil business of trafficking in drugs."
In addition to the prison sentence, SHREM, 24, of New York, New York, was sentenced to three years of supervised release and was ordered to forfeit $950,000, representing the amount of funds involved in the offense that were intended to promote illegal activity.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement - Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, Office of Foreign Assets Control and the New York Department of Taxation and Finance. Mr. Bharara also thanked the FBI’s New York Field Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Andrew Adams of the Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
SHREM’s co-defendant, Faiella, pled guilty in September 2014, along with SHREM, and is scheduled to be sentenced before Judge Rakoff on January 20, 2015.
Florida Telemarketer Pleads Guilty to Timeshare Resale ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Leandro Velazquez pleaded guilty today to conspiracy to commit mail and wire fraud. The plea was entered at the United States District Court in East St. Louis, Illinois. Sentencing is set for Friday, April 3, 2015 at 10:00 AM, at which time Velazquez faces a term in prison of up to twenty five (25) years, a $250,000 fine and five years’ supervised release.
Facts revealed in Court showed that on February 20, 2014, a grand jury returned a one count indictment charging Velazquez with conspiracy to commit mail fraud and wire fraud in connection with telemarketing. The indictment alleged that Velazquez and others were engaged in an extensive telemarketing scam which operated in Orlando, Florida, that bilked thousands of victims of approximately $6 million dollars, victimizing consumers throughout the United States and Canada. There were victims in seven of the thirty eight (38) counties comprising the Southern District of Illinois.
The criminal indictment alleged that Velazquez was a co-owner of National Solutions and related companies located in Orlando, Florida. The scheme operated under more than a dozen business names including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timesharesales MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International. The indictment alleged that Velazquez’ participation in the scheme began on or about December 5, 2007, and continued through July 13, 2011. The indictment alleged that telemarketers for National Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within a number of days. Despite collecting fees from these victims, these companies were not successful in selling a single timeshare unit, the indictment alleged. Velazquez and his co-conspirators, the indictment alleged, simply pocketed these supposed closing costs.
The Federal Trade Commission investigated the National Solutions businesses and brought a civil complaint in the United States District Court for the Middle District of Florida in Orlando. In that action the FTC seized the offices and records of National Solutions on July 13, 2011, pursuant to Court Order.
This prosecution follows an investigation by the Midwest Region Office of the Federal Trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The prosecution of the case was handled by Assistant U.S. Attorneys Bruce E. Reppert and Michael J. Quinley.
Consumers who believe that they have been the victim of a consumer fraud should call the Federal Trade Commission 1-877-FTC-HELP (1-877-382-4357) or file an online complaint at https://www.ftccomplaintassistant.gov.
Federal Jury Convicts Michigan Man on All Charges for Armed Robbery at AT&T StoreRead the Press Release
PITTSBURGH – Brandon Kennedy, a resident of Inkster, Michigan, was convicted at the conclusion of a federal jury trial of committing an interstate armed robbery, of using and carrying a firearm during and in relation to a crime of violence, and of being a convicted felon in possession of a firearm, United States Attorney David J. Hickton announced today.
The jury convicted Kennedy after a three-day trial that concluded on December 18, 2014, and that was presided over by United States District Judge Nora Barry Fischer. The jury was presented with evidence that Kennedy, on November 26, 2012, traveled from the Detroit, Michigan, area to the AT&T retail store located at 970 Greentree Road, Pittsburgh, Pennsylvania, and robbed the store at gunpoint. Kennedy brandished a loaded .45 caliber Ruger pistol at the store employees during the robbery and after he had already been convicted of a felony crime in a prior case. The robbery resulted in the forcible theft of 12 iPads and 14 iPhones as well as other electronic devices and cash.
Kennedy was previously prosecuted in state court in Michigan for committing an armed robbery at an AT&T retail store in Oakland County, Michigan, in September 2011. Kennedy was acquitted at the conclusion of a state jury trial in March 2012. Kennedy committed the armed robbery at the Pittsburgh AT&T store following the acquittal.
The law provides for a maximum total sentence of at least seven years and up to life in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Green Tree Police Department, the South Rockwood (Michigan) Police Department, and the Inkster (Michigan) Police Department investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Drilling Operator Sentenced for Environmental and Maritime Crimes in AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Noble Drilling (U.S.) LLC was sentenced today for committing eight felony environmental and maritime crimes arising out of its operation of the drill ship Noble Discoverer and the drilling unit Kulluk in violation of federal law in Alaska in 2012. These convictions are the result of a joint investigation between the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency Criminal Investigation Division. The case was prosecuted by the United States Attorney’s Office for the District of Alaska and the Department of Justice’s Environmental Crimes Section.
Noble was sentenced to pay $12.2 million dollars in fines and community service payments and to serve a four year period of probation during which time it must implement a comprehensive Environmental Compliance Plan. In addition, Noble’s parent corporation, Noble Corporation plc, headquartered in London, England, has agreed to implement an Environmental Management System for all Mobile Offshore Drilling Units (MODUs) owned or operated by Noble Corporation plc and its direct and indirect subsidiaries worldwide.Noble Drilling (U.S.) LLC was convicted of five counts of knowingly violating the Act to Prevent Pollution from Ships (APPS), one count of knowing violating the Nonindigenous Aquatic Nuisance Prevention and Control Act, and two counts of willfully violating the Ports and Waterways Safety Act. Seven of these counts are for Noble’s operation of the Noble Discoverer, and one count for the operation of the MODU Kulluk.
At the time of the offenses, the Noble Discoverer was operating under contract with Shell Offshore, Inc. and Shell Development, Ltd. for the purpose of drilling in the arctic in Alaska. During the 2012 drilling season, Noble was the operator and bare boat charterer of the motor vessel Noble Discoverer and the drilling operator of the MODU Kulluk. In 2012, the Kulluk and the Noble Discoverer made several U.S. port calls in Washington and Alaska on their way to the Shell drilling site in the Chukchi Sea off the coast of Alaska. After leaving the drill site, the Kulluk ultimately ran aground off the coast of Unalaska when it broke free from its tow in bad weather, and the Noble Discoverer was dead-ship towed from Dutch Harbor to Seward due to failures with its main engine and other equipment.
A total of $4 million was paid by Noble in the form of community service payments; $2,500,000 will go to the International Arctic Research Center located at the University of Alaska Fairbanks, $1,000,000 will go to the National Fish and Wildlife Foundation, Alaskan Arctic Fund, and $500,000 will go to the Arctic Research Consortium of the United States. All of these funds will be used for research and projects designed to study and/or benefit the Arctic and/or the natural resources or wildlife contained therein near Alaska.
In addition, the Court has ordered that $512,500 of the $8.2 million fine be awarded to a person who provided substantial information leading the conviction of Noble in this case. This award was made under the provisions of the Act to Prevent Pollution from Ships, which provides that the Court may award an amount equal to not more than ½ of the fine imposed for a conviction of that statute to the person giving information leading to conviction. In this case, the United States notified the Court that there was an individual who provided information that resulted in Noble’s conviction on Count 1 of the Information, and requested that the Court award one-half of the fine for that count to this individual.
The APPS award provision serves a valuable law enforcement purpose by encouraging those most likely to know of the illegal conduct to report it and cooperate with law enforcement. Because the discharge of oily waste typically takes place in the middle of the ocean in international waters, the only persons likely to know about the conduct and the falsification of the ORB are the crew members. Absent crew members with firsthand knowledge of the illegal conduct coming forward, APPS violations are otherwise extremely difficult to uncover. The government’s success in detecting the illegal activity and obtaining sufficient evidence to support investigations and prosecutions is dependent upon the willingness of a crew member to step forward. In turn, a crew member must assess the risks associated with coming forward, such as the possibility that the crew member will lose relatively lucrative employment and be blacklisted and barred from working in the marine shipping industry in the future. A substantial monetary award, as provided by APPS, both rewards the crew member for taking those risks and provides an incentive for other crew members to come forward and report illegal conduct on vessels in the future.
Chief Judge Ralph R. Beistline accepted the plea agreement entered into between the parties, and sentenced Noble consistent with that agreement. As special condition of the plea agreement, Judge Beistline ordered that Noble implement the Environmental Compliance Plan, including the third party and independent auditing requirements. Judge Beistline noted that all of us are victims of these crimes, and that we all have to do everything we can as a community to protect the environment.
Ms. Loeffler commended the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency Criminal Investigation Division for the investigation leading to the successful prosecution of this case.Dominican Doctor and Assistant Sentenced for Conspiring to Alter Fingerprints of Criminal AliensRead the Press Release
BOSTON – A Dominican doctor and his assistant were sentenced today for their roles in altering the fingerprints of illegal aliens through a surgical process.
Danilo Ramon Martinez, 61, was sentenced by U.S. District Court Judge Richard G. Stearns to 27 months in prison, three years of supervised release, and a fine of $5,000. Martinez’s assistant, Teresa Araujo Ramirez, 40, was sentenced to 18 months in prison, and three years of supervised release. It is anticipated that, upon completion of their sentences, Martinez and Ramirez will be deported to the Dominican Republic. In December 2013, Ramon Martinez and Araujo Ramirez were indicted for conspiring to harbor illegal aliens by altering their fingerprints and to distribute controlled substances.
Martinez, a licensed medical doctor in the Dominican Republic, performed surgery that altered the fingerprints of aliens illegally in the United States, thereby assisting in the concealment of their true identities and criminal histories. Ramirez charged $4,000 for this service. Araujo Ramirez assisted and supplied pain medications, including Oxycodone and other controlled substances, to the patients following the procedures.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.District Man Sentenced to 14 Years in Prison for 2013 Murder in Southeast WashingtonShot Fired in Confrontation over Defendant’s WeaponRead the Press Release
WASHINGTON – Don Page, 24, of Washington, D.C., has been sentenced to a 14-year prison term for killing a man in June 2013 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Page pled guilty in October 2014, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a sentence within the range of 12 to 15 years. The Honorable Rhonda Reid Winston accepted the plea and sentenced Page on Dec. 18, 2014. Upon completion of his prison term, Page will be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of June 22, 2013, Page and the victim, Quentin White, 28, were each outside in the 3500 block of East Capitol Street SE with their respective groups of friends. A fight ensued when members of the group with Mr. White began chanting, “Free Khari,” a reference to Khari Williams, then 18, who at the time was in custody and awaiting trial for the murder of Angelo Payne. Mr. Payne, 23, was killed on Dec. 30, 2012 in Southeast Washington.
Mr. Payne and Page had been very close friends. Mr. White and Khari Williams were close friends. Page’s friends became involved in a physical altercation with friends of Mr. White. During the fight, Page retrieved a silver revolver and fired one shot into the air. Mr. White approached Page, with his hands up, and told Page to put the gun down and fight like a man. Page then pointed the gun at Mr. White and fired one shot at his chest, killing him. Page then fled in his car. He was arrested nearly two weeks later in Martinsburg, W. Va.
Khari Williams pled guilty in April 2014 to a charge of voluntary manslaughter for the slaying of Angelo Payne. He was sentenced in June 2014 to a 12-year prison term.
In announcing this week’s sentence, U.S. Attorney Machen commended the Metropolitan Police Department for its work on the investigation. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra Joyner and Victim/Witness Advocate Marcia Rinker. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Michelle Bradford, who investigated and indicted the case.
14-282Department of Justice Completes Collaborative Reform Review of Spokane Police Department's Use of Force Policies and PracticesRead the Press Release
COPS Office Releases 42 Findings and Recommendations to Implement Best Practice at the Spokane Police Department
The U.S. Department of Justice Office of Community Oriented Policing Services (COPS) announced today the completion of a Collaborative Reform Review of the Spokane Police Department’s use of force policies and practices. The new report, funded by a grant from the COPS Office’s Collaborative Reform Initiative for Technical Assistance, lists 42 findings and recommendations to address use of force practices, improve tactical policing strategies and build stronger collaborative relationships between local police and the communities they protect.
“The COPS office is confident in the Spokane Police Department’s capability to implement these evidence based recommendations and build on their commitment to building a stronger community,” said Director Ronald Davis of the COPS Office. “We look forward to strengthening the collaborative relationship between the community and law enforcement to ensure that this process remains expansive, transparent and inclusive.”
The COPS office first announced the beginning of the Collaborative Reform Review in February 2013. The scope of the work announced today reviewed the use of force over the last five years, including an analysis of policies, training, investigation and community outreach efforts. Interviews were conducted with 140 area stakeholders, including community members, current and former officers and prosecutors, community organizations and police union officials. The 11-month assessment concluded that police officers in the Spokane Police Department do not routinely and deliberately engage in excessive use of force or deadly force. The report also did not find a biased application of use of force. Other findings and recommendations include the need for improvements in use of force documentation and investigation practices used by the police department. The review also outlined the need to formalize the roles and responsibilities of the ombudsman and the commission members.
“I want to thank the COPS Office for engaging in the collaborative reform process,” said Chief Frank G. Straub of the Spokane Police Department. “I believe the findings and recommendations provide an important road map for us to improve our internal business practices and more importantly better engage with the community we serve. We are fully committed to implementing all of the recommendations within the 18-month timeframe and continuing to serve all members of the Spokane community with dignity, integrity and respect.”
The report was administered as part of the COPS Office’s Collaborative Reform Initiative for Technical Assistance, designed to provide technical assistance to agencies facing significant law enforcement-related issues. Using subject matter experts, interviews and direct observations, as well as conducting extensive research and analysis, the COPS Office assists law enforcement agencies with enhancing and improving their policies and procedures, their operating systems and their professional culture. The COPS Office can issue a series of recommendations and be instrumental in assisting agencies with the implementation of those recommendations.
The report, The Collaborative Reform Model: A Review of Use of Force Policies, Processes, and Practices in the Spokane Police Department, can be found online here.
###
The COPS Office, headed by Director Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
Defense Contractor Agrees to Pay $27.5 Million to Settle Overbilling AllegationsRead the Press Release
Lockheed Martin Integrated Systems (LMIS) has agreed to pay $27.5 million to resolve allegations that it violated the False Claims Act by knowingly overbilling the government for work performed by LMIS employees who lacked required job qualifications.
The settlement was announced today by Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division and U.S. Attorney Paul J. Fishman for the District of New Jersey.
“Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Branda. “The department will ensure that those who do business with the government, and seek taxpayer funds, do so fairly and in accordance with the applicable rules.”
“U.S. forces rely on the goods and services provided by defense contractors, so it is imperative the government be able to rely on those contractors to adhere to the rules,” said U.S. Attorney Fishman. “This settlement should remind all who do business with the government that there is a price to pay for fudging the math.”
LMIS is a subsidiary of Lockheed Martin Inc., which is headquartered in Bethesda, Maryland. The alleged labor mischarging occurred on the Rapid Response (CR2) contract and the Strategic Services Sourcing (S3) contract, both issued by the U.S. Army Communication and Electronics Command (CECOM). CECOM is located at Fort Monmouth, New Jersey, and at the Aberdeen Proving Group in Maryland. The purpose of the CR2 and S3 contracts is to provide rapid access to products and services to be provided to the Army in Iraq and Afghanistan. Individual task orders then are separately negotiated, based on these contracts, to quickly meet the needs of CECOM. LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed to the United States at the rates of more qualified employees. The overbilling allegedly resulted in greater profit for LMIS.
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partners to vigorously pursue alleged violations of the False Claims Act,” said Special Agent in Charge Craig W. Rupert of the DCIS Northeast Field Office. “All contractors doing business with the federal government are expected to abide by the acquisition rules no matter who they are. Investigations of such allegations are necessary to protect American taxpayers and our warfighters.”
This settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the District of New Jersey, the Southern New Jersey Branch of the Defense Contract Audit Agency (DCAA) and the DCAA’s Mid-Atlantic Region's Comprehensive Labor Team and Investigative Support Team, the U.S. Army’s Criminal Investigative Command’s Major Procurement Fraud Unit and the DCIS.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Defense Contractor Agrees to Pay $27.5 Million to Settle Overbilling AllegationsRead the Press Release
NEWARK, N.J. – Lockheed Martin Integrated Systems (LMIS) has agreed to pay $27.5 million to resolve allegations that it violated the False Claims Act by knowingly overbilling the government for work performed by LMIS employees who lacked required job qualifications.
The settlement was announced today by U.S. Attorney Paul J. Fishman for the District of New Jersey and Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.
“U.S. forces rely on the goods and services provided by defense contractors, so it is imperative the government be able to rely on those contractors to adhere to the rules,” said U.S. Attorney Fishman. “This settlement should remind all who do business with the government that there is a price to pay for fudging the math.”
“Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Branda. “The department will ensure that those who do business with the government, and seek taxpayer funds, do so fairly and in accordance with the applicable rules.”
LMIS is a subsidiary of Lockheed Martin Inc., which is headquartered in Bethesda, Maryland. The alleged labor mischarging occurred on the Rapid Response (CR2) contract and the Strategic Services Sourcing (S3) contract, both issued by the U.S. Army Communication and Electronics Command (CECOM). CECOM is located at Fort Monmouth, New Jersey, and at the Aberdeen Proving Group in Maryland. The purpose of the CR2 and S3 contracts is to provide rapid access to products and services to be provided to the Army in Iraq and Afghanistan. Individual task orders then are separately negotiated, based on these contracts, to quickly meet the needs of CECOM. LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed to the United States at the rates of more qualified employees. The overbilling allegedly resulted in greater profit for LMIS.
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partners to vigorously pursue alleged violations of the False Claims Act,” said Special Agent in Charge Craig W. Rupert of the DCIS Northeast Field Office. “All contractors doing business with the federal government are expected to abide by the acquisition rules no matter who they are. Investigations of such allegations are necessary to protect American taxpayers and our warfighters.”
This settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the District of New Jersey, the Southern New Jersey Branch of the Defense Contract Audit Agency (DCAA) and the DCAA’s Mid-Atlantic Region's Comprehensive Labor Team and Investigative Support Team, the U.S. Army’s Criminal Investigative Command’s Major Procurement Fraud Unit and the DCIS.
The District of New Jersey was represented by Senior Litigation Counsel Anthony J. LaBruna Jr. of the U.S. Attorney’s Office Civil Division in Newark.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
14-454
Defendant in Extensive Marriage Fraud Scheme Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. —Sippy Lal, 61, of Sacramento, pleaded guilty today to conspiring to induce aliens to illegally enter the United States for private financial gain, United States Attorney Benjamin B. Wagner announced.
According to court documents, Lal and his co-defendants Mamta Sharma and Rani Singh-Lal were involved in an elaborate immigration-fraud scheme involving foreign nationals from India who paid to enter into sham engagements or marriages with locally recruited U.S. citizens in an effort to legalize their immigration status. The citizens recruited by Lal were paid thousands of dollars to fly to India, meet and take pictures with a purported spouse, and sometimes enter into actual marriages (albeit often using aliases). Thereafter, fraudulent petitions were filed with the United States seeking visas allowing the Indian citizens to enter and reside within the United States. On at least one occasion, after an alien entered on a fraudulent fiancé visa procured through the scheme, Lal paid a U.S. citizen to further participate by entering into a sham marriage with the alien in Sacramento.
Co-defendant Sharma used various aliases to pose as a U.S. citizen in connection with five different petitions filed since 2008, despite the fact that she is not a U.S. citizen and despite the fact that she was married to Lal throughout that time period. Similarly, co-defendant Singh-Lal posed as the petitioner with respect to three different petitions, all filed with slight variations on her true name.
According to Lal’s plea agreement, well over 25 fraudulent petitions were submitted to immigration authorities as a result of the conspiracy, and at least nine Indian nationals entered the United States and were, at least for some period of time, able to avoid detection.
Co-defendants Sharma and Singh-Lal previously entered guilty pleas and were sentenced to terms of imprisonment of 24 months and 27 months, respectively.
Lal is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on March 6, 2015. The plea agreement contemplates a sentence of two years. The actual sentence, however, will be determined at the discretion of the court at the hearing.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Citizenship and Immigration Services – Fraud Detection and National Security Unit, and the California Department of Justice – Bureau of Investigation and Intelligence. Assistant United States Attorneys Michele Beckwith and Philip Ferrari are prosecuting the case.Decatur Man Sentenced to 20 Years in Prison for Sexual Exploitation of A Child,enticement of A Minor and Making Interstate ThreatsRead the Press Release
Springfield, Ill. – A Decatur, Ill., man, Jason E. Cooper, 34, of the 4800 block of Martin Luther King, Jr. Drive, has been ordered to serve 20 years in federal prison for sexual exploitation of a minor, enticement of a minor, and making interstate threats, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sue E. Myerscough sentenced Cooper in federal court in Springfield, Ill. on December 18, 2014. Cooper was ordered to serve 15 years of supervised release following his term of imprisonment, and to register as a sexual predator for the period of his natural life. Cooper was also ordered to forfeit computer material seized as evidence.
Cooper pled guilty on May 8, 2014, to one count each of enticement of a minor, making interstate threats, and sexual exploitation of a minor. According to the factual basis presented by the government at Cooper’s change of plea hearing, in 2013, Cooper used social media and game sites to initiate contact with two different minor females. Cooper then sent graphic sexual texts and emails and threats of violence to the minors and their families if his demands for information and photos of graphic sexual activity were ignored.
Cooper was indicted by a grand jury in April 2013, following his arrest. Cooper has remained in the custody of the U.S. Marshals Service since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorney Elly Peirson. The charges were investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Decatur Police Department.
David Rivera Confirmed by US Senate as United States Attorney for the Middle District of TennesseeRead the Press Release
David Rivera has been confirmed by the United States Senate to serve as the United States Attorney for the Middle District of Tennessee.
President Barack Obama nominated Rivera for this post June 19, 2014. The President said of Rivera that he had proven himself to be not only a top flight attorney but a dedicated public servant. Mr. Obama went on to say that he was grateful for the work already accomplished on behalf of the American people and confident that Rivera will ensure justice will be served during his tenure as United States Attorney.
The Senate confirmed Rivera’s nomination by unanimous consent during an evening session of the Senate on December 16.
David Rivera has been the Acting United States Attorney for the Middle District of Tennessee since April 2013. He has served as an Assistant United States Attorney in the Middle District of Tennessee since 2004, during which time he has held leadership positions including First Assistant United States Attorney, Chief and Deputy Chief of the Criminal Division. From 1999 to 2004, he worked in the United States Attorney’s Office in the District of Puerto Rico, serving as Deputy Chief of the Criminal Division. Mr. Rivera is a highly decorated prosecutor who has received numerous awards and is twice recipient of the Department of Justice’s prestigious Director’s Award for Superior Performance as an Assistant United States Attorney for his work in the investigation and prosecution of public corruption and financial crimes. Mr. Rivera was an Assistant State Attorney in Broward County, Florida and an Assistant District Attorney in Bronx County, New York. Mr. Rivera also served in the United States Air Force and the United States Air National Guard.
DEA Employee Charged in Credit Card Fraud SchemeRead the Press Release
Allegedly Acquired DEA Government Credit Cards Which She Used to Obtain Over $115,000 in Cash
Greenbelt, Maryland – Keenya Meshell Banks, age 41, of Upper Marlboro, Maryland, was charged by criminal complaint with access device fraud, wire fraud and aggravated identity theft, in connection with a scheme to fraudulently obtain and use DEA government credit cards. Ms. Banks was arrested and had her initial appearance on December 18, 2014, in U.S. District Court in Greenbelt. She was released under the supervision of U.S. Pretrial Services.The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael Tompkins of the Department of Justice Office of the Inspector General.
According to the affidavit filed in support of the criminal complaint, Banks worked as a DEA Program Manager in Northern Virginia, and was responsible for the approval and issuance of government credit cards to DEA employees. The affidavit alleges that from June 2010 through October 2014, Banks fraudulently acquired 33 DEA credit cards.Specifically, Banks allegedly submitted applications that included the names and identifying information of individuals who did not work for DEA and therefore were not eligible to receive DEA government credit cards. On at least one occasion, Banks submitted an application that matched a current DEA employee. The employee never received the card and Banks allegedly used the personal information of the employee without the employee’s knowledge or approval. The credit cards were ordered by Banks via email, and the cards were sent to Banks via Federal Express or other mail, based on her certification on the applications.
The criminal complaint alleges that Banks used the cards at Automated Teller Machines in Maryland and Northern Virginia, withdrawing approximately $115,841.74 over the course of the scheme. No payment was ever made to the credit card issuer.
Banks faces a maximum sentence of 10 years in prison for access device fraud; 20 years in prison for wire fraud; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Department of Justice Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom, and Trial Attorneys Justin Weitz and Richard B. Evans from the U.S. Department of Justice, Public Integrity Section, who are prosecuting the case.
Court Authorizes Internal Revenue Service to Issue Summonses for Records Relating to U.S. Taxpayers Who Used Services of Sovereign Management & Legal Ltd. to Conceal Offshore Accounts, Assets or EntitiesRead the Press Release
Deputy Assistant Attorney General David Hubbert for the Justice Department’s Tax Division Civil Trial Matters, U.S. Attorney Preet Bharara for the Southern District of New York, Commissioner John Koskinen of the Internal Revenue Service (IRS), and Special Agent in Charge Anthony D. Williams of the Drug Enforcement Administration’s (DEA) Los Angeles Field Division announced that U.S. District Judge Vernon S. Broderick entered an order yesterday authorizing the IRS to issue summonses requiring Federal Express Corporation, doing business as FedEx Express, FedEx Ground Package System Inc., aka FedEx Ground, DHL Express (DHL), United Parcel Service Inc. (UPS), Western Union Financial Services Inc., the Federal Reserve Bank of New York (the FRBNY), Clearing House Payments Company LLC, and HSBC Bank USA National Association (HSBC USA) to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by using the services of Sovereign Management & Legal Ltd. (Sovereign) to establish, maintain or conceal foreign accounts, assets and entities.
In this action, the court granted the IRS permission to serve what are known as “John Doe” summonses on FedEx Express, FedEx Ground, DHL, UPS, Western Union, the FRBNY, Clearing House and HSBC USA. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses direct these eight entities to produce records that will assist the IRS in identifying U.S. taxpayers who, from 2005 through 2013, used Sovereign’s services to establish, maintain, operate or control any foreign financial account or other assets; any foreign corporation, company, trust, foundation or other legal entity; or any foreign or domestic financial account in the name of such foreign entity.
“This summons action is but the latest step in the Department of Justice’s efforts to identify and hold fully accountable U.S. taxpayers who have sidestepped their tax obligations by hiding money overseas,” said Deputy Assistant Attorney General Hubbert. “The world is getting smaller for tax cheats, and we will work with our partners at the IRS to vigorously enforce the nation’s tax laws against those who seek to avoid paying their fair share.”
“This action demonstrates our Office’s commitment to pursuing tax evaders who use offshore service providers to avoid their U.S. tax obligations,” said U.S. Attorney Bharara. “By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who conceal their foreign assets in order to dodge their legal responsibility to pay taxes.”
“The IRS remains committed to continuing our priority efforts to stop offshore tax evasion wherever it is found,” said Commissioner Koskinen. “We have made tremendous progress in this area, working cooperatively with other agencies. The John Doe summons remains an important tool in our efforts to find international tax evaders and those who help them.”
“The DEA has a longstanding commitment to sharing information with our federal, state, and local partners,” said Special Agent in Charge Anthony D. Williams. “Issuance of these summonses exemplifies how outstanding investigative results can be derived from a culture of interagency cooperation.”
According to the allegations set forth in the documents filed in support of the petition, and other information in the public record:
Sovereign is a multi-jurisdictional offshore services provider that offers clients, among other things, the formation and administration of anonymous corporations and foundations in Panama as well as offshore entities. Related services provided by Sovereign include the maintenance and operation of offshore structures, mail forwarding, the availability of virtual offices, re-invoicing, and the provision of professional managers who appoint themselves directors of the client’s entity while the client maintains ultimate control over the assets.
As a result of a DEA investigation of online narcotics trafficking known as Operation Adam Bomb, the IRS learned that Sovereign was involved in assisting U.S. clients evade their taxes. During the IRS investigation that led to today’s action, one taxpayer, making a voluntary disclosure of tax non-compliance to avoid prosecution, reported that Sovereign helped the taxpayer form an anonymous corporation in Panama that the taxpayer used to control assets without appearing to own them.
The IRS investigation also determined that Sovereign uses Federal Express, UPS and DHL to correspond with U.S. clients, and Western Union to transmit funds to and from clients in the United States. In addition, the IRS learned that the wire services operated by the FRBNY and Clearing House, and the U.S. correspondent bank accounts that HSBC USA holds for Sovereign’s banks in Panama and Hong Kong, are likely to have records of financial transactions between Sovereign and its clients in the United States. By obtaining information from these entities through John Doe summonses, the IRS expects to be able to identify Sovereign’s U.S. clients who may be avoiding or evading taxes.
Federal law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
* * *
This case is being handled by the U.S. Attorney’s Office for the Southern District of New York Tax and Bankruptcy Unit. Assistant U.S. Attorney Joseph N. Cordaro is in charge of the case.
Court Authorizes IRS to Issue Summonses for Records Relating to U.S. Taxpayers Who Used Services of Sovereign Management & Legal, Ltd., to Conceal Offshore Accounts, Assets, or EntitiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, David Hubbert, the Deputy Assistant Attorney General for Civil Trial Matters in the Department of Justice’s Tax Division, John Koskinen, the Commissioner of the Internal Revenue Service (“IRS”), and Anthony D. Williams, the Special Agent in Charge of the Drug Enforcement Administration’s Los Angeles Field Division (“DEA”), announced that U.S. District Judge Vernon S. Broderick signed an order yesterday in Manhattan federal court authorizing the IRS to issue summonses requiring Federal Express Corporation a/k/a FedEx Express (“FedEx Express”); FedEx Ground Package System, Inc., a/k/a FedEx Ground (“FedEx Ground”); DHL Express (“DHL”); United Parcel Service, Inc. (“UPS”); Western Union Financial Services, Inc. (“Western Union”); the Federal Reserve Bank of New York (the “FRBNY”); Clearing House Payments Company LLC (“Clearing House”); and HSBC Bank USA, National Association (“HSBC USA”), to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by using the services of SOVEREIGN MANAGEMENT & LEGAL, LTD. (“Sovereign”), to establish, maintain, or conceal foreign accounts, assets, and entities.
In this action, the Court granted the IRS permission to serve what are known as “John Doe” summonses on FedEx Express, FedEx Ground, DHL, UPS, Western Union, the FRBNY, Clearing House, and HSBC USA. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses direct these eight entities to produce records that will assist the IRS in identifying U.S. taxpayers who, from the years 2005 through 2013, used Sovereign’s services to establish, maintain, operate, or control any foreign financial account or other assets; any foreign corporation, company, trust, foundation or other legal entity; or any foreign or domestic financial account in the name of such foreign entity.
Manhattan U.S. Attorney Preet Bharara said: “This action demonstrates our Office’s commitment to pursuing tax evaders who use offshore service providers to avoid their U.S. tax obligations. By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who conceal their foreign assets in order to dodge their legal responsibility to pay taxes.”
Deputy Assistant Attorney General David Hubbert said: “This summons action is but the latest step in the Department of Justice’s efforts to identify and hold fully accountable U.S. taxpayers who have sidestepped their tax obligations by hiding money overseas. The world is getting smaller for tax cheats, and we will work with our partners at the IRS to vigorously enforce the nation’s tax laws against those who seek to avoid paying their fair share.”
IRS Commissioner John Koskinen said: “The IRS remains committed to continuing our priority efforts to stop offshore tax evasion wherever it is found. We have made tremendous progress in this area, working cooperatively with other agencies. The John Doe summons remains an important tool in our efforts to find international tax evaders and those who help them.”
DEA Special Agent in Charge Anthony D. Williams said: “The DEA has a longstanding commitment to sharing information with our federal, state, and local partners. Issuance of these summonses exemplifies how outstanding investigative results can be derived from a culture of interagency cooperation.”
According to the allegations set forth in the documents filed in support of the petition, and other information in the public record:
Sovereign is a multi-jurisdictional offshore services provider that offers clients, among other things, the formation and administration of anonymous corporations and foundations in Panama as well as offshore entities. Related services provided by Sovereign include the maintenance and operation of offshore structures, mail forwarding, the availability of virtual offices, re-invoicing, and the provision of professional managers who appoint themselves directors of the client’s entity while the client maintains ultimate control over the assets.
As a result of a DEA investigation of online narcotics trafficking known as OPERATION ADAM BOMB, the IRS learned that Sovereign was involved in assisting U.S. clients with tax evasion. During the IRS’s investigation of Sovereign’s conduct, one taxpayer, making a voluntary disclosure of tax non-compliance to avoid prosecution, reported that Sovereign helped the taxpayer form an anonymous corporation in Panama that the taxpayer used to control assets without appearing to own them.
The IRS investigation also determined that Sovereign uses Federal Express, UPS, and DHL to correspond with U.S. clients, and Western Union to transmit funds to and from clients in the U.S. In addition, the IRS learned that the wire services operated by the FRBNY and Clearing House, and the U.S. correspondent bank accounts that HSBC USA holds for Sovereign’s banks in Panama and Hong Kong, are likely to have records of financial transactions between Sovereign and its clients in the U.S. By obtaining information from these entities through John Doe summonses, the IRS expects to be able to identify Sovereign’s U.S. clients who may be avoiding or evading taxes.
Federal law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
This case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant United States Attorney Joseph N. Cordaro is in charge of the case.
Sovereign Management John Doe Summonses Order
Coos Bay Company, its Owner and Four Employees Plead Guilty to Fraud on Defense ContractsRead the Press Release
PORTLAND, Ore. — A Coos Bay business, its owner, and four employees were sentenced by the Honorable Michael J. Mosman in federal court on December 12, 2014 for their roles in a conspiracy to defraud the United States by supplying knock-off vehicle and aviation parts to the United States Department of Defense (DOD).
Harold Ray Bettencourt II, 60, of Coos Bay, Oregon and the owner of Kustom Products, Inc.(KPI), was sentenced to 45 months in custody. His sons were also sentenced to prison terms: Nicholas Ryan Bettencourt, 32, was sentenced to 27 month in prison; Bo Bettencourt, 34, was sentenced to a term of 25 months; and Peter Tracy Bettencourt, 28, was sentenced to 12 months in custody. KPI’s office manager, Margo Antoinette Densmore, 43, also of Coos Bay, Oregon, was sentenced to a 12 month prison term. The business, KPI, was sentenced to pay a fine of $150,000. All of the defendants were ordered to pay restitution to the military in the amount of $5,000,000.
The United States Attorney charged that KPI, Bettencourt, and the others conspired to commit wire fraud, money laundering, and trafficking in counterfeit goods and services. As part of the plea, the defendants agreed to forfeit all proceeds traceable to the fraud, including $365,503.26 in funds from 20 bank accounts, eight vehicles, one boat, two boat trailers, two jet skis, and three all-terrain vehicles.
U.S. Attorney, Amanda Marshall, expressed satisfaction with the outcome. “Prison sentences for these defendants are entirely appropriate. They put their own greed before the safety of military personnel. They promised to provide our troops with quality equipment then substituted knock-off parts solely to line their own pockets,” Marshall stated. “The United States will not hesitate to prosecute those who cheat the government, especially when the lives of our service members are at stake.”
The defendants’ scheme, as laid out in Court during the three-day sentencing hearing, related to the defendants’ actions while contracting to provide supplies to the Department of Defense (DOD) from approximately 2006 through 2010. The DOD sought equipment, supplies, and services that were filled through purchase orders awarded to DOD contractors, including KPI. Some of these products were identified as critical application items, meaning that they were items essential to weapons systems performance or operation, or to preserve the life and safety of military personnel. The contracts were awarded through a web-based posting of contract solicitations. Each contained the specific details about the items to be procured, including the requirements related to the specific part desired by Original Equipment Manufacturer (OEM) part number and by approved OEM vendor, whether the part was a critical application, and whether the part was required to be manufactured in the United States. In solicitations for specific products, the contractor was required to supply the “exact product” and to certify that fact by stating that the bid was “without exception.” The solicitation made clear that submitting alternate products could result in criminal and civil penalties.
KPI, acting through the individual defendants, lied to the DOD in order to secure what the government found to include 750 fraudulent contracts with a value in excess of $10,000,000 and used wire communications in interstate and foreign commerce to carry out the scheme. In addition, the defendants knowingly engaged in approximately $8,000,000 in monetary transactions in amounts greater than $10,000 derived from the wire fraud scheme. Finally, in some contracts, the defendants supplied counterfeit Freightliner parts and shipped some parts on pallets that falsely contained the logo and heat treatment certification stamp of Timber Products Inspection, Inc. In essence, the defendants bid to supply a specific OEM part from an approved vendor at a price consistent with an OEM part, but instead knowingly provided a knock-off part from an unapproved vendor that cost them significantly less. This allowed them to under-bid the competition, and generated substantial profits for KPI and the individual defendants.
To highlight one contract, the United States set out the defendants’ actions related to the provision of aviation locknuts. In 2008, KPI was awarded contracts to supply aviation locknuts to the DOD, which were used to secure the blades to the main rotary assembly of the Kiowa Helicopter. The locknuts were flight critical and of proprietary design to be acquired from only two approved manufacturers, SPS or Bristol Industries. Rather than obtain the locknuts from one of the approved sources, Nicholas Bettencourt contacted Coloc Manufacturing in Texas and arranged with them to make and deliver thousands of non-conforming locknuts for fulfillment of the contract. Coloc was unaware that the parts they were contracted to manufacture were proprietary and were to be used in a flight-critical military application. In August 2008, the defective locknuts were detected throughout the military supply chain, which triggered the issuance of a DOD-wide safety alert, a worldwide inspection of all aircraft and stockpiles. After DOD notified KPI about the defective parts, Nicholas Bettencourt provided the DOD officials with false information in an attempt to cover up the acquisition of the defective locknuts.
KPI was also contacted by a DOD inspector, who requested KPI officials provide a written response as to the cause of the deficiency. KPI provided the DOD with a false explanation as to why the locknuts were not in compliance with the contract requirements, explaining that the parts were pulled from the wrong storage bin. Even after the defendants were notified of the deficiency, instead of replacing the defective parts with authentic parts from the approved manufacturers, they went back to Coloc and directed them to re-machine another batch of non-conforming locknuts to more closely resemble the authentic part. The additional defective locknuts were shipped to the DOD, all with complete disregard for the contract specifications on this critical application and the potential for catastrophic failure to the helicopter and injury or death to the occupants as a result.
Again, when the second batch of defective locknuts was detected in the supply chain, DOD officials requested acquisition records from KPI. In response, Nicholas Bettencourt, in conjunction with Margo Densmore, created false records that reflected that the correct parts were ordered by KPI and supplied to the military. Several more requests for records were made by DOD officials, and in response to these requests, Harold Bettencourt II provided the DOD with falsified records and false explanations as to the origin of the defective locknuts. KPI, through Margo Densmore, altered purchase orders to indicate that the correct parts were ordered, and produced those altered documents to DOD officials and investigators. Harold Bettencourt II also provided DOD officials with these false purchase orders and provided DOD officials with a price quote from a parts dealer for authentic conforming parts that KPI never actually ordered. Harold Bettencourt II obtained this quote for the purpose of deceiving the DOD into believing that the correct parts had been ordered.
The United States alleged that these actions by the defendants compromised the integrity of the aviation supply chain and put service members in harm's way by knowingly placing defective and unsafe aviation components into the supply chain and attempting to conceal their actions by falsifying records, and misleading DOD officials and investigators with false statements and information.
Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service, Western Field Office said, “We are extremely pleased at this outcome, which yet again sends the message that fraud and corruption will be vigorously investigated and prosecuted. This is an unfortunate example of a corrupt contractor who recklessly risked the safety of our troops by selling counterfeit and defective parts, including flight critical parts, to the Department of Defense. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed. This investigation should serve as a warning for those intent on defrauding the U.S. military and American public that the Defense Criminal Investigative Service (DCIS) and our law enforcement partners will pursue these crimes relentlessly.”
Those with information relating to fraud, corruption or waste in government contracting should contact the DoD Hotline at www.dodig.mil/hotline or should call (800) 424-9098.
Financial fraud is a serious crime and it deserves serious punishment, but the real impact of Kustom Product’s actions could have been disastrous,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “We are proud to have worked beside our law enforcement partners in this effort to protect our military personnel.”
“While our warfighters were in Iraq and Afghanistan putting their lives on the line and depending on the Bettencourts’ counterfeit parts, the defendants were in Oregon ripping off taxpayers and enjoying the proceeds of their multimillion dollar scam,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations in Seattle, which oversees Oregon investigations. “These prison sentences should make clear, those who violate the public’s trust will be held accountable for their actions.”
“The financial cost of this fraud – more than $10 million – is significant, but the human cost could have been much higher,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “The counterfeit hardware that Kustom Products passed off as real could have led to catastrophic failures of trucks and helicopters used by our military. This case shows that we – with many partners at the Departments of Defense and Homeland Security as well as the IRS – will not allow anyone to make what they believe to be an easy buck on the backs of our service members.”
The case was investigated by the Department of Defense/Office of Inspector General/Defense Criminal Investigative Service, the Army Criminal Investigative Division Major Procurement Fraud Unit, the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Scott Erik Asphaug.
Comments of United States Attorney General Eric Holder Regarding the Resignation of U.S. Attorney Tristram CoffinRead the Press Release
“During more than five years as United States Attorney for Vermont, Tris Coffin has been an exemplary leader, a committed public servant, and a tireless advocate for the cause of justice.
“Over the course of an illustrious career dedicated to his clients, to the citizens of Vermont, and to the American people – including twelve distinguished years as an Assistant United States Attorney in the Office he returned to lead in 2009 – Tris has demonstrated not only exceptional skill in litigation spanning the entire federal docket, but also consummate judgment. He has played an instrumental role in driving important national policy changes, including commonsense sentencing reforms under the Department's Smart on Crime initiative. And he has been at the forefront of efforts to combat the scourge of opioid addiction, both in Vermont and far beyond.
“Tris Coffin personifies the high standards of integrity and professional excellence that define the very best of this country’s public servants. I will always be grateful for his years of distinguished service. Although I will miss his leadership and wisdom, I thank him for his tireless work and wish him all the best in the next step of his remarkable career.”
Clovis Man Convicted for Trafficking Child PornographyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii today found Todd Douglas Udall, 49, of Clovis, guilty of one count of attempted and actual distribution and receipt of child pornography, United States Attorney Benjamin B. Wagner announced. The guilty verdict came at the conclusion of a trial before Judge Ishii that began earlier this week.
According to a criminal complaint, Udall came to the attention of the Clovis Police Department when a 13-year-old girl disclosed that Udall had been sending her sexually themed electronic text messages. He sent messages to her cellphone and communicated with her through Facebook. Investigators obtained a warrant to search Udall’s residence, and they located a laptop computer, a desktop computer, and an external hard drive. When those items were reviewed, investigators discovered that Udall had been engaging in sexually explicit chat communications with dozens of people, many purporting to be minors, at various locations in and outside of the United States. Many of the chats discussed the receipt and distribution of images of child pornography as well as the desire to engage in sexual activities with children. Judge Ishii found, based on evidence introduced at the trial, that Udall had received and distributed numerous images of child pornography on dates from as early as February 2007 until just prior to the seizure of his computers on September 23, 2009. Udall has been in federal custody since his initial appearance in federal court on July 21, 2010, as both a danger to the community and a flight risk.
The court has scheduled a sentencing hearing for March 16, 2015, at 10:00 a.m. Udall faces a minimum prison term of five years with a maximum term of 20 years as well as a potential $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.
This case was the result of an investigation by the Clovis Police Department. Assistant United States Attorneys David Gappa and Megan Richards prosecuted 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.Civilian Navy Employee Found Guilty of Obstruction and False Statements After Jury TrialRead the Press Release
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.
Citizen of Guatemala Sentenced to 51 Months in Prison for Illegally Reentering the U.S.Read the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAVIER MORENO, 27, a citizen of Guatemala who recently resided in Willimantic, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 51 months of imprisonment for illegally reentering the United States after being deported, and for violating the conditions of his supervised release that followed a previous term of imprisonment for illegal reentry.
According to court documents and statements made in court, on October 15, 2005, MORENO was arrested in Connecticut on state charges that included assault. On May 26, 2006, he was deported from the U.S. to Guatemala. MORENO reentered the U.S. and, on December 29, 2006, was arrested in Windham. Subsequent to his arrest, MORENO was convicted in state court of assault in the second degree, and also violation of probation. On September 28, 2007, he again was removed to Guatemala.
MORENO reentered the U.S. and, on September 15, 2008, was convicted of criminal impersonation and operation under the influence. On June 12, 2009, MORENO was convicted of assault in the third degree and failure to appear in the first degree, and was sentenced to one year of incarceration. MORENO also was convicted of violation of probation stemming from a prior conviction. MORENO remained in custody from September 8, 2008, until January 29, 2010.
MORENO was charged with illegal reentry, pleaded guilty and, on May 7, 2010, was sentenced by Judge Eginton to 24 months and three years of supervised release. He completed his federal sentence on December 16, 2011, and was deported to Guatemala for the third time on January 18, 2012.
In January 2014, MORENO again illegally reentered the U.S. On April 25, 2014, he was charged in state court with interfering with an officer and resisting arrest for leading Willimantic Police officers on a foot pursuit following a motor vehicle stop four days earlier.
MORENO has been detained since his arrest. On September 24, 2014, he pleaded guilty to reentry of a removed alien.
Judge Eginton sentenced MORENO to 33 months of imprisonment for illegal reentry, and a consecutive 18-month prison term for violating the terms of his supervised release from his previous conviction.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Brooklyn Man, Melvin George, Sentenced to 60 Months in Jail for Distributing Heroin and Crack Cocaine in Rutland, VermontRead the Press Release
Tristram J. Coffin, the United States Attorney for the District of Vermont, stated that Melvin George, 27, of Brooklyn, New York was sentenced yesterday by J. Garvan Murtha, United States District Judge, to 60 months in jail for conspiring to distribute heroin and cocaine base between September of 2012 and February, 2013 in the Rutland, Vermont area.
According to Court records, Melvin George, known as “Cliff,” was working with other individuals – some of whom he recruited from Brooklyn, New York – to transport controlled substances to Vermont. Then, he set up meetings with his drug customers by cell phone but sent other individuals, including his codefendants, Tony Eldien and Junior Brooks, to deliver the drugs and to obtain the drug proceeds. The Southern Vermont Drug Task Force, with the assistance of a confidential informant, made six purchases of cocaine base or heroin from George’s associates. The purchases occurred in Castleton, Rutland, and West Rutland. When George was arrested on February 20, 2013, law enforcement found Drug Task Force currency on his person from a drug sale conducted by George that same day.
George was indicted by a federal grand jury on September 11, 2013 and appeared in U.S. District Court on November 7, 2013 for an arraignment. He was detained in prison pending trial. George pled guilty on July 31, 2014 to Count 1 of the Indictment charging him with conspiracy to distribute heroin and cocaine base.
The case was investigated by the Southern Vermont Drug Task Force. The United States Attorney, Tristram J. Coffin, commends the Drug Task Force for their work in this matter. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Melvin George was represented by David McColgin of the Office of the Federal Public Defender.Brooklyn Man, Junior Brooks, Sentenced to 46 Months in Jail for Distributing Heroin and Crack Cocaine in Rutland, VermontRead the Press Release
Tristram J. Coffin, the United States Attorney for the District of Vermont, stated that Junior Brooks, 26, of Brooklyn, New York was sentenced yesterday by J. Garvan Murtha, United States District Judge, to 46 months in jail less credit for 23 months of time served in New York State for a related drug offense. Thus, Brooks will serve 23 months in jail on this federal conviction for conspiracy to distribute heroin and cocaine base. Brooks was also sentenced to a term of supervised release of 3 years once he completes his prison term.
According to Court records, Junior Brooks, known as “Lite,” was working with Melvin George, also sentenced to 60 months in jail today, to distribute crack cocaine and heroin in the Rutland, Vermont area. Brooks acted as a drug courier and transported controlled substances from Brooklyn to Vermont. Once in Vermont, he sold the drugs to Melvin George’s drug customers. The Southern Vermont Drug Task Force, with the assistance of a confidential informant, made two purchases of controlled substances directly from Brooks at locations in Rutland, Vermont.
Brooks was indicted by a federal grand jury on September 11, 2013 and appeared in U.S. District Court on November 26, 2013 for an arraignment. He was detained in prison pending trial. Brooks pled guilty on July 31, 2014 to Count 1 of the Indictment charging him with conspiracy to distribute heroin and cocaine base.
The case was investigated by the Southern Vermont Drug Task Force. The United States Attorney, Tristram J. Coffin, commends the Drug Task Force for its work in this matter. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Junior Brooks was represented by Attorney Wayne Young.Beloit Wisconsin Woman Sentenced for Mail FraudRead the Press Release
ROCKFORD — A former shipping manager for American Extrusion International (“AEI”), of South Beloit, Ill., was sentenced today by U.S. District Judge Frederick J. Kapala for mail fraud. REVA K. VERA, 58, of Beloit, Wis., who pled guilty to the charge on Sept. 11, 2014, was sentenced to 29 months in federal prison, to be followed by 3 years of supervised release. In addition, Judge Kapala ordered Vera to pay $352,803.23 in restitution to AEI.
According to the plea agreement, Vera, as the shipping manager, was responsible for authorizing payments to vendors who provided shipping services to AEI. As stated in the plea agreement, Vera created two fraudulent companies, Total Quality Logistics (“TQL”) and Val Tech, Inc., and from May 4, 2012 to Oct. 9, 2013, defrauded AEI out of at least $352,803.23. During that time period, Vera created fictitious invoices from Val Tech, Inc. and TQL for shipping services that those companies had purportedly performed for AEI when in fact, Val Tech, Inc. and TQL provided no such shipping services for AEI. According to the plea agreement, Vera submitted the fictitious invoices to AEI’s accounts payable department causing checks to be issued by AEI payable to Val Tech, Inc. or TQL in the amount of the invoice. The plea agreement further states that after AEI’s accounts payable department generated the checks for the fictitious invoices submitted by Vera, AEI mailed the checks payable to Val Tech, Inc. to an address of Vera’s relative in Beloit, Wis., and the checks payable to TQL to a post office box in Loves Park, Ill. belonging to Vera. According to the plea agreement, as part of the scheme to defraud AEI, Vera obtained $85,993 in checks from AEI payable to Val Tech, Inc., and $266,810.23 in checks from AEI payable to TQL that she either cashed or deposited into her personal bank account. Vera used the money for her personal benefit.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The South Beloit Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Bank Robber Sentenced to 10 Years in Federal PrisonRead the Press Release
Orlando, FL – Senior U.S. District Judge G. Kendall Sharp has sentenced Duwane Edward Gilmore (27, Mount Dora) to 10 years in federal prison for two counts of bank robbery. The Court also ordered Gilmore to forfeit $4,273.75, the traceable proceeds of the offenses.
According to court documents, on June 4, 2014, Gilmore robbed a Chase Bank in Apopka and obtained $3,273.75. The following week, he robbed a Chase Bank in Sanford and obtained approximately $1,000. Gilmore pleaded guilty to both robberies on September 16, 2014. He received an enhanced penalty as a result of his previous felony convictions for drug offenses and other violent crimes.
This case was investigated by Federal Bureau of Investigation, the Seminole County Sheriff’s Office, the Apopka Police Department, and the Mount Dora Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Baltimore Man Sentenced to Eleven Years in Prison for Child Sex TraffickingRead the Press Release
BOSTON – A Baltimore man was sentenced today to 138 months in prison in connection with the sex trafficking of a 15-year-old girl.
Justin Richardson, 22, of Baltimore, Maryland was sentenced by U.S. District Judge Nathaniel M. Gorton to 138 months in prison and five years of supervised release. In August 2014, Richardson pleaded guilty to recruiting and transporting a minor to engage in prostitution. On Dec. 15, 2014, codefendant, Mark Pinnock, of Boston, was sentenced to eight years in prison, and a second codefendant, Martin Pinkney, also of Baltimore, will be sentenced on Dec. 22, 2014.
In late December 2013, officers responded to an emergency call from a Cambridge hotel, where they found the 15-year old victim and Pinnock. The minor stated that Richardson and Pinkney had arranged for her to travel by bus from Baltimore to Boston. Pictures were taken of her in both Baltimore and Boston and used to post ads soliciting prostitution on the websites backpage.com and Craigslist. While in Boston, the minor victim engaged in sex for a fee at the direction of Pinnock at two local hotels.United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Cambridge Police Commissioner Robert C. Haas, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Seth Kosto and Carlos López, both members of Ortiz’s Civil Rights Enforcement Team. The U.S. Attorney’s Office also wishes to thank the Middlesex County District Attorney Marian C. Ryan’s Office for its participation in the investigation.
The enforcement of federal civil rights laws is a high priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team in 2010, the Office has substantially increased its efforts in civil and criminal civil rights enforcement actions. In the last four years, the Office has charged an increasing number of defendants with sex trafficking and other criminal civil rights violations.
Attorney General Holder Announces U.S. Adult Correctional System Population Has Dropped to Lowest Level in Nearly a DecadeRead the Press Release
In New Video, Attorney General Hails Finding as ‘Significant Milestone’ That Shows Crime and Incarceration Levels Can Be Reduced at Same Time
Attorney General Eric Holder announced today that the number of persons under the supervision of adult correctional systems in the United States has fallen to its lowest level since 2003. This finding is highlighted in a study to be released today by the Bureau of Justice Statistics.
According to the study, an estimated 6,899,000 persons were under the supervision of adult correctional systems at year end 2013, down from 6,940,500 at year end 2012. The decrease of 41,500 offenders in 2013 resulted in the number of persons under correctional supervision falling below 6.9 million for the first time since 2003.
The Attorney General called the drop a “significant milestone.”
“While we clearly have much more work to do, it is my hope that we are witnessing the start of an overall trend that will continue – and accelerate – as our reform efforts take full effect,” the Attorney General said. “As I have said many times, we cannot incarcerate our way to becoming a safer nation. That’s why we need to focus on commonsense sentencing reforms and on proven, evidence-based solutions like diversion programs for those convicted of low-level, nonviolent offenses.”
The complete text of the Attorney General’s video message is below:
“The Department of Justice is dedicated to ensuring that America’s criminal justice system is as fair, as efficient, and as effective as possible. That’s why, in August of 2013, I launched the “Smart on Crime” Initiative – a targeted effort to enhance the way we charge, sentence, and release individuals in order to end this country’s overreliance on incarceration and to promote efforts that give people the tools they need to return to their communities and lead better and more productive lives.
“In the six years since President Obama took office, we have made important progress in fighting crime and advancing our long-term criminal justice efforts. In fact, during this Administration, overall crime has decreased by over 15 percent, while overall incarceration has decreased by nearly 9 percent – the first time these two critical markers have declined together in more than 40 years. And just two months ago, I was able to report that over the past year, the federal prison population declined by roughly 5,000 inmates – the first decrease we’ve seen in many decades.
“Today, I can announce that the number of persons supervised by U.S. adult correctional systems – in prison or jail, or on probation or parole – fell below 6.9 million individuals at the end of 2013. This drop leaves the United States with the smallest population under the authority of adult correctional supervision in nearly a decade.
“This is a significant milestone. It is highlighted in a study to be released by the Bureau of Justice Statistics. And while we clearly have much more work to do, it is my hope that we are witnessing the start of an overall trend that will continue – and accelerate – as our reform efforts take full effect.
“As I have said many times, we cannot incarcerate our way to becoming a safer nation. That’s why we need to focus on commonsense sentencing reforms and on proven, evidence-based solutions like diversion programs for those convicted of low-level, nonviolent offenses. We are seeing this approach take root in states across the country, as more and more governors and legislatures recognize that incarceration must be used to punish, deter, and rehabilitate—not merely to warehouse and forget. And here in Washington, D.C., I am proud to work with leaders in Congress from both parties to advance this vital conversation and bring about a paradigm shift in the way our nation approaches criminal justice.
“Of course, I recognize that these are challenging issues, and the changes we seek will not occur overnight. But I am dedicated – and the Department of Justice is committed – to an ongoing effort that strengthens our criminal justice system; lives up to our founding ideals; and builds the safer, more just society that all Americans deserve.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Albany Oregon Man Sentenced to 60 Months in Federal Prison for $5 Million Securities FraudRead the Press Release
EUGENE, Ore. –U.S. District Court Judge Ann Aiken sentenced Joseph Anthony LaCoste, 50, of Albany, Oregon, to 60 months in prison and ordered him to pay $1.6 million in restitution for securities fraud violations. LaCoste, the former chief executive officer of Willamette Development Services (WDS), a real estate development company based in Albany, Oregon, had previously pleaded guilty to conspiracy to commit securities fraud for his conduct associated with WDS.
According to court documents, LaCoste, a former high school teacher and coach, lured individuals to invest with him and WDS be telling a series of lies: he lied about his educational background; he lied about the financial condition of WDS; he lied about the rate of return on the investments; and he lied about the nature and use of the investments. LaCoste also failed to inform his investors that he had been fired from U.S. Bank for dishonest and unethical conduct and that he had previously filed for bankruptcy. Based on his misrepresentations, LaCoste, between 2006 and 2008, duped more than 50 people to invest more than $5.2 million with him and WDS.
In reality, WDS and its alleged real estate projects were undercapitalized, and the projects were not progressing. To avoid detection and to further the scheme, LaCoste and others commingled investor money and transferred investor money between various projects and businesses to make it appear as if the projects were on schedule and the company was profitable. In 2008, LaCoste’s scheme collapsed. At that time, he had failed to complete a single project, and the investors lost their money.
After his WDS scheme collapsed, LaCoste engaged in a new scheme to induce four property owners in Washington to transfer ownership of their property to his control by falsely representing that he had the experience and skills to develop their property into a profitable real estate venture. Similar to his WDS investors, LaCoste falsely promised these property owners a huge return and failed to tell them that he had been fired from U.S. Bank for dishonest and unethical conduct and that he had previously filed for bankruptcy. In the end, this scheme also collapsed, and the property owners lost more than $150,000.
LaCoste’s codefendants, Angela McCoy and Anthony Tuomi, are scheduled to be sentenced on January 28, 2015, at 1:30 pm before the Honorable Thomas M. Coffin.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Oregon Division of Finance and Corporate Securities.
Alabama Medical Clerk Sentenced to Prison Tax Refund Fraud Scheme that Involved U.S. Postal Service EmployeeRead the Press Release
Montgomery, Alabama - A Prattville, Alabama woman was sentenced yesterday to serve 70 months in prison for her involvement in a stolen identity tax refund fraud (SIRF) scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division.
Sasha Webb, 26, was also ordered to serve three years of supervised release following her prison sentence and to pay $528,823 in restitution.
According to court documents and court proceedings in this and related cases, Webb worked as a medical records clerk at an Alabama Department of Corrections facility in Elmore County, Alabama, where she had access to the means of identification of inmates from databases maintained by the Alabama Department of Corrections. On several occasions in 2009 and 2010, Webb stole identities from those databases and sold them to Harvey James and his sister, Jacqueline Slaton, for the purpose of filing false tax returns.
Between 2010 and 2012, James and Slaton used those stolen identities to file false federal and state tax returns. James and Slaton directed some of the false refunds to be sent to either prepaid debit cards or issued via check. James’s brother-in-law, Gregory Slaton, recruited Vernon Harrison, a U.S. Postal Service employee, to the scheme. James directed prepaid debit cards and state tax refund checks to be mailed to addresses that Harrison provided from his postal route. Harrison collected the debit cards and checks and provided them to Gregory Slaton who in turn gave them to James and Jacqueline Slaton. In total, James and Slaton filed more than 1,000 federal and state income tax returns that claimed more than $1 million in fraudulent tax refunds.
On Oct. 31, 2013, Harrison was sentenced to serve 111 months in prison. James was sentenced on April 29, 2014, to serve 110 months in prison and Jacqueline Slaton was sentenced on Oct. 23, 2012, to serve 70 months in prison. Gregory Slaton was sentenced on Oct. 28, 2014, to serve 70 months in prison.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Jason H. Poole and Michael C. Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at the division website at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761718 South Florida Residents Sentenced for Their Role in Accessing AT&T and Verizon Subscriber Accounts with Stolen Personal Identifying Information to Purchase iPhonesRead the Press Release
Eighteen South Florida residents were sentenced in connection with their role in a scheme that used fraudulently obtained personal identifying information (PII) of AT&T and Verizon mobile telephone plan subscribers to purchase iPhones as a discounted rate. Three of the individuals sentenced stole the PII from their respective employers, including Verizon.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, United States Secret Service (USSS), and J.D. Patterson, Jr., Director, Miami-Dade Police Department (MDPD), made the announcement.
Between August 2012 and July 2013, Alexander Nicholas Katsabanis, Jr., 23, Dimitris Nicholas Katsabanis, 25, and Christian Fernando Dume, 32, each of Miami, secured and caused co-conspirators, including Daniel Allen Limbacher, 31, Yurien Martinez Gallardo, 34, and Jade Amber Garcia, 27, all of Miami, to secure the PII of mobile telephone plan subscribers, including subscribers with AT&T and Verizon. In particular, Gallardo, who worked for Verizon, Limbacher, who worked for Cellular Sales, and Garcia, who worked for Baptist Hospital, stole from their respective employers PII that was used to facilitate the fraudulent scheme. The customers’ PII included the customer’s name, mobile telephone number, date of birth, and last four digits of such customer’s Social Security Number.
After obtaining the PII, A. Katsabanis, D. Katsabanis, Dume, and their co-conspirators, called, or caused others to call, AT&T and Verizon, and used the unlawfully acquired PII, to add additional users on the existing, legitimate customer accounts without the customer’s knowledge or authorization. These individuals also used the PII to purchase iPhones at a discounted price of approximately $200.00, which discount was only available to customers and their authorized users. The retail price for each iPhone ranged from $550.00 to $649.00.
A. Katsabanis, D. Katsabanis, Dume, and others, also recruited various individuals to serve as “runners.” These “runners” were added as purported “authorized users” on the existing, legitimate accounts of AT&T and Verizon subscribers, and also purchased iPhones at discounted prices. The purchases were made in the Southern District of Florida, as well as, other locations in Florida, California, and Nevada. Christine Eliz Marrero, 24, Dietter Navarro, 32, Keilyn Nicole Gonzalez, 21, Felix Marino Garcia Custodio, 32, Desiree Marie Basanta, 29, Jonathan Gabriel Gonzalez, 24, Dominga Ivett Guerrero, 50, Melissa Rivas, 25, Johan Alvarez, 20, Gustavo Andres Jimenez, 26, Javier Osvaldo Labrador, 26, each of Miami, Florida, Mirelys Reyes, 19, of Hialeah, Florida, Yasael Aquit, 29, now of Tampa, Florida, together with Garcia and Limbacher served as “runners” for the above-described fraudulent scheme. The runners would deliver their purchases to A. Katsabanis, D. Katsabanis, Dume, and others, and were paid approximately $100.00, for each fraudulently acquired iPhone.
During the course of the scheme, approximately 860 Verizon customer accounts were fraudulently accessed in order to purchase approximately 1,200 iPhones at a discounted price. As a result of the scheme, Verizon incurred a loss of more than $400,000 based on the difference between the retail price of the iPhone and the discounted price allowed to its subscribers.
Judge Scola imposed the following sentences:
D. Katsabanis was sentenced 60 months imprisonment; A. Katsabanis Jr. was sentenced to 48 months imprisonment; Dume was sentenced to 78 months imprisonment; Navarro was sentenced to 15 months imprisonment; Limbacher was sentenced to 12 months and one day imprisonment; Marrero was sentenced to two years of probation; Labrador was sentenced to six months imprisonment; K. Gonzalez was sentenced to 20 days imprisonment and two years of probation; Custodio was sentenced to eight months imprisonment; Basanta was sentenced to one year of probation; J. Gonzalez was sentenced to two months imprisonment and two years of probation; Rivas was sentenced to one year of probation; Guerrero was sentenced to two years of probation; Alvarez was sentenced to 10 days imprisonment and two years of probation; Jimenez was sentenced to 30 days imprisonment and two years of probation; Reyes was sentenced to two years of probation; Aquit was sentenced to one year of probation and four months home confinement; and Gallardo was sentenced to four months imprisonment, to be followed by four months of home confinement.
Garcia is scheduled to be sentenced on January 21, 2015, at 8:30 a.m., before Judge Scola.
Noel Sebastian Cisneros, 23, of Homestead, Florida, who was charged with wire fraud and aggravated identity theft for his role in this scheme as an alleged runner, is scheduled to commence trial before Judge Scola, on March 9, 2015, at 9:00 a.m.
Mr. Ferrer commended the investigative efforts of the USSS and MDPD Economic Crimes Bureau. The case is being prosecuted by Assistant U.S. Attorney Sarah J. Schall.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Thursday 18 December 2014
Woman Sentenced for Stealing Grandmother's Retirement BenefitsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Vanessa Scott-Washington, 45, of Leesburg, Georgia, was sentenced on December 17, 2014 to serve 6 months in prison and pay restitution for making false statements to the Railroad Retirement Board. The sentence was handed down by Senior U.S. District Court Judge W. Louis Sands in Albany, Georgia.Ms. Scott-Washington entered a plea of guilty to the charge on August 13, 2014. As a part of her plea agreement, she admitted that on June 27, 2009, she signed a substitution of payee form with the Railroad Retirement Board (RRB) on her grandmother’s retirement benefits agreeing to use the RRB annuity for the benefit of her grandmother and to notify RRB promptly if her grandmother died.
Her grandmother died in May 2010 but Ms. Scott-Washington deceived the RRB into believing that she was still living in order to continue receiving her benefits. Even after the Social Security Administration notified the RRB of her grandmother’s death, Ms. Scott-Washington made a number of calls and sent an e-mail claiming that her grandmother was still alive.
Ms. Scott-Washington also admitted to causing a fraudulent letter, drafted on Bank of America letterhead, to be sent to the RRB stating that her grandmother had been seen in the bank that day and was identified by two forms of identification. The RRB re-commenced the benefits to Ms. Scott-Washington. In all, the RRB paid a total of $13,679 in benefits to her between June 1, 2010 and February 1, 2011.
“When you try to profit by committing fraud, you should keep looking over your shoulder because you are going to get caught,” said U.S. Attorney Michael Moore.
The case was investigated by agents with the Railroad Retirement Board. Assistant United States Attorney Jim Crane prosecuted the case for the Government. Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Wichita Man Pleads Guilty in Armed RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Thursday to robbing a drug store in east Wichita, U.S. Attorney Barry Grissom said.
Ryan B. Schmidt, 34, Wichita, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that on Sept. 4, 2014, he entered Gessler’s Drug Store at 4817 E. Douglas in Wichita, brandished a gun and told an employee to give him prescription drugs. He fled the store with seven bottles of hydrocodone and three bottles of promethazine in a plastic bag.
Schmidt was involved in a high speed chase with police before hitting a utility pole and another vehicle and coming to a stop.
Sentencing is set for March 9. Both parties have agreed to recommend to the judge a sentence between 14 and 25 years in federal prison.
Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Wichita Man Pleads Guilty in Armed RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Thursday to robbing a drug store in east Wichita, U.S. Attorney Barry Grissom said.
Ryan B. Schmidt, 34, Wichita, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that on Sept. 4, 2014, he entered Gessler’s Drug Store at 4817 E. Douglas in Wichita, brandished a gun and told an employee to give him prescription drugs. He fled the store with seven bottles of hydrocodone and three bottles of promethazine in a plastic bag.
Schmidt was involved in a high speed chase with police before hitting a utility pole and another vehicle and coming to a stop.
Sentencing is set for March 9. Both parties have agreed to recommend to the judge a sentence between 14 and 25 years in federal prison.
Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Tygart Valley Inmate Convicted of Threatening the PresidentRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Robert Dale Tasker, 44, an inmate at the Tygart Valley Regional Jail in Belington, West Virginia, was convicted in federal court today for threatening the President, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the United States Secret Service revealed that in December 2013, while incarcerated at the Tygart Valley Regional Jail, Tasker wrote a letter threatening to kill the President of the United States.
Tasker pled guilty today to one count of “Threats Against the President of the United States.” He faces up to five years in prison and fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Two Plea Guilty to the Unlawful Employment of AliensRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHNNIE SANTANGELO, III, age 29, of Tangipahoa Parish, and OBER FARFAN BRAVO, age 34, an undocumented alien living in Tangipahoa Parish, pled guilty today to a one-count Bill of Information charging them with a pattern and practice of unlawfully employing aliens.
According to court documents, SANTANGELO and BRAVO knowingly and unlawfully engaged in a pattern and practice of hiring aliens for employment, knowing that said aliens were unauthorized to work in the United States.
SANTANGELO and BRAVO each face a maximum term of six months incarceration and/or a fine of $3,000 for each unauthorized alien or twice the gross loss to any person. U.S. District Judge Jay C. Zainey set sentencing for March 17, 2015.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Two New Haven Men Involved in Gang-related Drug Ring Are SentencedRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two New Haven men were sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport for their involvement in a gang-related narcotics distribution ring. KENNETH STURDIVANT, also known as “Slay,” 29, was sentenced to 120 months of imprisonment and five years of supervised release, and JAROD AARON, 31, was sentenced to 60 months of imprisonment and four years of supervised release.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department that was initiated in the wake of repeated shootings and other violence between members of the Bloods and members of the Grape Street Crips in the Hill section of New Haven. The investigation resulted in the arrests of members of both the Bloods and the Grape Street Crips.
STURDIVANT and AARON were associates of Donald Ogman, who has been identified in court proceedings as a leader of the Grape Street Crips. STURDIVANT, also a member of the Crips, and AARON distributed crack cocaine with Ogman in and around New Haven.
On March 10, 2014, STURDIVANT pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”). On March 21, 2014, AARON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base. STURDIVANT and AARON are both previously convicted felons.
A total of 20 individuals were charged as a result of this investigation, and all have pleaded guilty. Ogman awaits sentencing.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Members of Drug Trafficking Organization Admit Conspiring to Sell Heroin in South JerseyRead the Press Release
TRENTON, N.J. – Two members of a large-scale drug trafficking organization have admitted conspiring to distribute hundreds of grams of heroin throughout Monmouth and Ocean counties, U.S. Attorney Paul J. Fishman announced.
Valerie Resendes, 27, of Beachwood, New Jersey, and Rashawn Ramos, 37, of Perth Amboy, New Jersey, both pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court. Resendes pleaded guilty today to an information charging her with one count of conspiring to distribute heroin. On Dec. 16, 2014, Ramos pleaded guilty to an information charging him with one count of conspiring to distribute 100 grams or more of heroin and 500 grams or more of cocaine.In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Of those 21 individuals, 10 have pleaded guilty.
According to documents filed in this case and statements made in court:
Resendes admitted that between February 2013 and March 2014, she conspired with Young and others to distribute heroin in Ocean and Monmouth counties. During this time, Resendes possessed and sold more than 400 grams of heroin.
Ramos admitted that from November 2013 through March 2014, he received numerous packages of heroin and cocaine at his residence in Perth Amboy. The packages were sent from California via the U.S. Mail. Ramos later transferred the packages to another conspirator, who distributed the narcotics to others in New Jersey, including members of the Britt-Young DTO. Altogether, Ramos received at least 1,000 grams of heroin and 1,500 grams of cocaine.
The narcotics conspiracy charge to which Resendes pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. The narcotics conspiracy charge to which Ramos pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5 million fine. Sentencing for Resendes and Ramos is set for March 10, 2015, and March 24, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Aaron T. Ford; officers of the Brick Township Police Department, under the direction of Chief Nils R. Bergquist: and officers of the Toms River Police Department, under the direction of Chief Mitchell Little, with the investigation leading to today’s guilty pleas. He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives, under the direction of Acting Special Agent in Charge George Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of acting Prosecutor Christopher J. Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, for their work on the investigation. He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, Long Branch and Freehold police departments for their roles in the case.
14-451
Defense Counsel:
Ramos: Anthony Simonetti Esq., Hightstown, New Jersey
Resendes: Lawrence G. Welle Esq., Wall, New JerseyResendes, Valerie Information
Ramos, Rashawn InformationTwo Florida Women Plead Guilty to Bank Fraud and Aggravated Identity Theft for Check Cashing SchemeRead the Press Release
BOISE – Jennifer A. Gallagher, 31, of Margate, Florida, and Danielle M. Cook, 28, of Pembrooke Pines, Florida, both pleaded guilty today in United States District Court to one count of bank fraud and one count of aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Sentencing for both defendants is set for March 9, 2015, before U.S. District Judge Edward J. Lodge.
Cook and Gallagher were indicted in October 2014, for bank fraud and aggravated identity theft. According to the plea agreements, Cook and Gallagher admitted that, between August 9th and 13th, 2014, they traveled to the District of Idaho to participate in a scheme to defraud financial institutions by cashing stolen checks. In particular, Cook and Gallagher admitted to obtaining stolen checks and driver's licenses, altering their appearances, including by the use of wigs, such that they would closely resemble the photographs on the stolen driver's licenses, then cashing the stolen checks through the far lane of numerous banks in the Treasure Valley. At least twelve such checks were cashed by Cook and Gallagher.
Bank Fraud is punishable by up to 30 years imprisonment, a $1,000,000 fine, a term of supervised release of not more than five years, and a $100 special assessment. Aggravated Identity Theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100.
The case was investigated by the FBI, the Ada County Sheriff's Office, the Meridian Police Department, and the Boise Police Department.
Toledo Man Indicted for Heroin ConspiracyRead the Press Release
A six-count federal indictment was filed charging a Toledo man with conspiracy to possess with intent to distribute a kilogram of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lee T. Turner, 29, was indicted on one count of conspiracy to possess with intent to distribute at least one kilogram of heroin, two counts of possession with intent to distribute heroin, two counts of operating a drug house and one count of being a felon in possession of a firearm.
“This defendant used firearms and homes in Toledo neighborhoods in his business the way others might use computers and calculators,” Dettelbach said. “He made his living dealing large amounts of heroin and now must face the consequences.”
“I would personally like to thank the Detectives and Agents from the Toledo Metro Drug Task Force for their hard work on this case,” said Toledo Police Chief William Moton. “The arrest of drug traffickers like Mr. Turner is an important piece in our strategy to significantly reduce the amount of heroin being sold in the Toledo area.”
Turner conspired to with others from November 2103 through Nov. 20, 2014 to possess heroin. Turner used 2830 Powhattan Parkway and 707 Phillips Avenue, both in Toledo, for the unlawful purpose of storing and distributing heroin, according to the indictment.
On Nov. 20, 2014, Turner possessed approximately 1,077 grams of heroin and a 9 mm pistol, despite previous convictions for bank robbery, robbery, kidnapping and other felony convictions, according to court documents.
Prosecutors are seeking to forfeit the two Toledo properties, as well as a 2009 Mercedes, a 1991 Chevrolet and a 2002 Mini Cooper, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Alyssa Sterling following an investigation by the Toledo Metro Drug Task Force, which is made up of representatives from the Toledo Police Department, Federal Bureau of Investigation, Lucas County Sheriff’s Office and other law enforcement agencies.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Men Indicted by A Federal Grand Jury for Conspiracy to Distribute over 10 Pounds of HeroinRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Julio Perez, 32; Rafael Legorreta, 34, both of Bakersfield; and Francisco Rivera, 29 of Palmdale, charging them with conspiracy to distribute heroin and possession with intent to distribute heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 2, 2014, law enforcement officers conducted an authorized search of Perez’s home, and found Perez, Legorreta, and Rivera in the locked basement of the residence with approximately 12 lbs. of heroin, packaging material, zip lock bags, digital scales, metal strainers, a blender, drug paraphernalia, and other items.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office Gang Suppression Unit. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Individuals Indicted in Federal Feeding Program ConspiracyRead the Press Release
LITTLE ROCK – A former and one current Arkansas Department of Human Services (DHS) employee and one feeding program sponsor have been indicted for their roles in a conspiracy to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced unsealing of an indictment and the arrest Thursday morning of Gladys Elise King, age 34, of England; Tonique D. Hatton, age 37 of North Little Rock; and Jacqueline D. Mills, age 39 of Helena on a 76-count Indictment.
The Indictment, returned by a Federal Grand Jury on December 11, 2014, charges Hatton, King, and Mills with conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds. Additionally, Mills is charged with wire fraud, paying bribes, and engaging in money laundering. King and Hatton are also charged with accepting bribes.
According to the indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by DHS. Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Tonique Hatton and Gladys King worked for DHS, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Mills operated as a sponsor for feeding program. Hatton and King were responsible for approving Mills’ programs at various times.
The indictment alleges that Mills made bribe payments to DHS employees Hatton and King. In exchange for those bribes, Mills would submit inflated numbers of meals purportedly served from her sites. Hatton and King would provide protection from DHS scrutiny.
“As alleged in the Indictment, these three individuals and others were literally stealing money that was supposed to be used to feed poor and hungry children,” stated Thyer. “While I am pleased that we were able to uncover and prosecute this behavior, I am at the same time sickened that it could happen at all.”
“The Secret Service is committed to aggressively investigating those associated with this type of financially motivated crime,” stated Special Agent in Charge Brian Marr. “To steal from the mouths of hungry children in this state is unacceptable.”
“This crime directly targeted funds designated to feed disadvantaged children in Arkansas,” stated David T. Resch, Special Agent in Charge of the Little Rock FBI. “The partnership of the IRS, USDA, USSS and the FBI are committed to investigating and prosecuting these crimes to the fullest extent of the law.”
Special Agent in Charge Mary L. Lewis, Southwest Region of the United States Department of Agriculture – Office of the Inspector General stated, “I want to thank the U.S. Attorney’s Office, OIG special agents, and our investigative partners for their hard work on this investigation. When the integrity of nutrition programs for needy children is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”
“These programs are designed to ensure financially disadvantaged children are provided with good nutritious meals throughout the year, they are not designed to enrich the program administrators,” stated Christopher A. Henry, Special Agent in Charge of the IRS- Criminal Investigation Nashville Field Office. “Individuals who engage in this type of fraud to line their own pockets with public funds should know they will not go undetected and will be held accountable.”
The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture – Office of the Inspector General, and United States Marshals Service. Assisting with the arrests this morning were deputies from the Lonoke County Sheriff’s Office and officers and detectives from the North Little Rock Police Department. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Three Indicted in Conspiracy to Distribute Oxycodone Through Fraudulent PrescriptionsRead the Press Release
BOSTON – Three individuals were charged today in U.S. District Court in Boston with distributing oxycodone via false prescriptions.
Leslie Credle, a/k/a Chanel, 48, of Jamaica Plain; William Ford, a/k/a Billy, 33, of Winthrop; and Lisette Carrasquillo, a/k/a Jacqueline, 37, of Allston were indicted on conspiracy to possess oxycodone with intent to distribute and conspiracy to obtain possession of oxycodone by misrepresentation, fraud, forgery, deception, or subterfuge. On June 30, 2014, the defendants were originally charged by criminal complaint at which time Credle and Ford were arrested and have since been held in custody. Carrasquillo was arrested on July 1, 2014 and was released on bond and pre-trial conditions.
According to court documents, beginning in November 2013, DEA investigators detected the diversion of a large amount of Oxycodone pills through fraudulent prescriptions filled at various pharmacies in eastern Massachusetts. Through the investigation, law enforcement discovered that Credle forged multiple prescriptions, after which Ford, Carrasquillo, and others passed the created prescriptions for Oxycodone at Boston-area pharmacies.
For Credle, the charging statute provides a sentence of no greater than 30 years in prison, a lifetime of supervised release, and a fine $2 million. For Ford and Carrasquillo, the charging statute provides a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. The case was investigated by the DEA, Massachusetts State Police, Billerica Police Department, Boston Police Department, Dedham Police Department, Quincy Police Department, and Waltham Police Department; and in coordination with the Norfolk County District Attorney’s Office and the Suffolk County District Attorney’s Office. The case is being prosecuted by Michael I. Yoon of Ortiz’s Organized Crime Drug Enforcement Task Force.The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Colorado River Indian Tribes (crit) Tribal Members Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX – On Dec. 17, 2014, Aaron Keith Drennan, 21, of Parker, Ariz., was sentenced by Judge Roslyn O. Silver to 57 months in prison, followed by three years of supervised release. Drennan previously pleaded guilty to robbery.
On Dec. 15, 2014, co-defendant, Mickey Roy Anderson, Sr., 26, of Parker, Ariz. was sentenced by U.S. District Judge Roslyn O. Silverto 60 months in prison, followed by three years of supervised release, and co-defendant Joshua Ryan Mike, Sr., 22, of Parker, Ariz., was sentenced to 60 months in prison to run consecutive to the 21-month sentence imposed in CR-14-0758-PHX-ROS. Co-defendants Anderson and Mike also previously pleaded guilty to robbery. Mike also pleaded guilty to assault resulting in serious bodily injury in another case before U.S. District Judge Roslyn O. Silver.
According to court documents, on March 9, 2014, Drennan, Anderson, and Mike were being housed as inmates in a community cell at the Colorado River Indian Tribes Adult Detention Center. The victim, a detention officer at the facility, opened their cell door to drop off laundry and was assaulted by Mike. As Mike assaulted the detention officer, Drennan and Anderson took the victim’s cell phone and the keys to the detention facility, and all three subsequently fled from the facility.
According to the plea agreement in Mike’s assault case, on March 1, 2014, Mike assaulted another inmate at the La Paz County Jail by striking him repeatedly in the face causing the victim to sustain serious bodily injury, which included fractures to the cheekbones and jaw.
The investigation in these cases was conducted by the Federal Bureau of Investigation, the Colorado River Indian Tribes Police Department, and the La Paz County Sheriff’s Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.CASE NUMBERS: CR-14-0370-PHX-ROS and CR-14-0758-PHX-ROS
RELEASE NUMBER: 2014-076_Drennan et al.For 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.Texas Business Executive Sentenced to Prison for Illegally Selling Oxycodone on Silk RoadRead the Press Release
Orlando, FL – Senior U.S. District Judge G. Kendall Sharp has sentenced Matthew Jones, a/k/a “Caligirl,” “Dynamite2k,” “Dynamite,” “Tyler Zeddai,” and “Mateo Jones” (44, Dallas, Texas) to five years and ten months in federal prison for illegally distributing controlled substances. He pleaded guilty on August 26, 2014.
According to court documents, while Jones was working as the Chief Technology Officer for a software consulting company in Dallas, he operated as the vendor “Caligirl” on the Silk Road drug marketplace. Silk Road operated as an online criminal marketplace designed to enable its users to buy and sell drugs and other illegal goods and services anonymously, outside the reach of law enforcement.
Between April 10, 2013, and September 9, 2013, Caligirl’s Silk Road account completed 685 finalized sales of controlled substances. Beginning on July 11, 2013, through March 20, 2014, Drug Enforcement Administration agents purchased and seized more than 400 Oxycodone tablets and more than 900 Hydrocodone tablets from Jones. Jones shipped the drugs from Texas to Central Florida. His sales placed him in the top 5% of all Silk Road vendors.
Authorities arrested Jones while he was travelling back to the United States from Colombia. At the time of his arrest, he was in possession of approximately 8,500 Oxycodone pills. Simultaneous with his arrest, agents executed a federal search warrant at his Texas residence, where they recovered approximately $75,000 in cash and seized a variety of controlled substances, including Oxycodone, Hydrocodone, MDMA, Methamphetamine, Cocaine, and Hashish. A drug lab was also located in the residence.
In addition to operating on Silk Road, Jones conducted his illicit drug trafficking business utilizing an encrypted and anonymized peer-to-peer program.
This case was investigated by the Drug Enforcement Administration’s Orlando District Office, with assistance from the United States Postal Inspection Service in Dallas, Texas. It was prosecuted by Assistant United States Attorney David Haas.
Ten Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering ConspiracyRead the Press Release
Final 10 of 36 Convicted and Sentenced
Ten Aryan Brotherhood of Texas (ABT) gang members and associates were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Today, Michael Richard Lamphere, 56, of Houston, Texas, Glen Ray Millican Jr., 41, of Houston, Texas, and Rebecca Johnson Cropp, 46, of Dallas, Texas, were sentenced to serve respective terms of 240 months, 120 months and 36 months in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas. Earlier this week, William David Maynard, 44, of Houston, Texas, Sammy Keith Shipman, 32, of Houston, Texas, Chad Ray Folmsbee, 32, of Houston, Texas, David Orlando Roberts, 36, of Houston, Texas, Justin Christopher Northrup, 29, of Houston, Texas, Tammy Melissa Wall, 45, of Otto, North Carolina, and Benjamin Troy Johnson, 43, of Corpus Christi, Texas, were each sentenced to serve respective terms of 262 months, 188 months, 140 months, 135 months, 130 months, 72 months and 36 months in federal prison.
According to information presented in court, the 10 defendants were admitted members and associates of the ABT, a powerful race-based organization that operates inside and outside of state and federal prisons throughout Texas and the United States. Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.
In order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The defendants sentenced this week represent the final 10 of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.
This Organized Crime Drug Enforcement Task Force case was investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case was prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.