Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 18 December 2014
Illinois Man Sentenced for Obstruction of Justice and Filing False Multi-Billion Dollar Liens Against Federal Judges and Other Government EmployeesRead the Press Release
A Flossmoor, Illinois, man was sentenced to serve 46 months in prison and three years of supervised release by U.S. District Court Judge Michael M. Mihm in the Central District of Illinois for obstruction of justice and filing false retaliatory liens against government officials, the Justice Department’s Tax Division announced today.
Tyree Davis Sr. pleaded guilty on July 18, 2014, to two counts of obstruction of justice and two counts of filing false retaliatory liens. A federal grand jury in Chicago returned an eight count indictment on July 24, 2013, charging Davis with two counts of obstruction of justice and six counts of filing false retaliatory multi-billion dollar liens against government employees.
According to court documents, Davis sent correspondence threatening to arrest two federal judges, including the judge who presided over the 2010 criminal tax trial of LaShawn Littrice. A jury convicted Littrice, who Davis has referred to as his wife, in June 2010, and she was sentenced to serve 42 months in prison. Court documents also establish that Davis filed false retaliatory liens, titled Notice of Claim of Maritime Lien, against the two federal judges. Davis also filed false retaliatory liens against the U.S. Attorney and Clerk of Court for the Northern District of Illinois, and the Assistant U.S. Attorney and the special agent from the Internal Revenue Service-Criminal Investigation who investigated and prosecuted Littrice. Davis filed the liens with the Cook County Recorder’s Office claiming that each individual owed Littrice $100 billion dollars. Davis re-recorded the liens multiple times in order to add real property descriptions, then notified others, including credit bureaus, that he had filed the multi-billion dollar liens.
The case was prosecuted by the Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Matthew J. Kluge of the Tax Division and was investigated by the U.S. Treasury Inspector General for Tax Administration and the FBI.
Houston Investment Manager Sentenced to 56 Months in Prison for Orchestrating $72 Million Ponzi SchemeRead the Press Release
A Houston investment manager was sentenced yesterday to serve 56 months in prison for orchestrating a $72 million investment fraud scheme resulting in approximately $40 million in losses to investors.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Carlie Christensen of the District of Utah, Special Agent in Charge Mary Rook of the FBI’s Salt Lake City Field Office and Special Agent in Charge John Collins of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Las Vegas Field Office made the announcement.
Robert Andres, 63, of Houston, Texas, pleaded guilty on Aug. 22, 2013, to wire fraud. In addition to the prison sentence, U.S. District Judge Robert J. Shelby of the District of Utah ordered Andres to pay more than $3.2 million in restitution.
According to admissions made in connection with his guilty plea, between October 2005 and 2011, Andres recruited investors for Winsome Investment Trust, where he served as the sole manager, attorney and trustee, by misrepresenting Winsome’s assets, asset allocation and the manner in which investor funds were invested. Indeed, between October 2005 and April 2007, Andres raised more than $39 million by disseminating false and misleading balance sheets and representing that he would invest all of the investors’ funds in a trading program or mostly automated trading business.
Also according to Andres’ admissions, he intentionally failed to disclose to potential investors that their money would actually be used to pay earlier investors. In addition, Andres used new investor funds to make purported “profit” payments to earlier investors to create the false impression that Winsome was profitable. During this period, Andres also misappropriated approximately $2.2 million in investor money for personal use, including to pay his hotel bills and living expenses.
This case was investigated by the FBI’s Salt Lake City Field Office and IRS-CI’s Las Vegas Field Office. The Commodity Futures Trading Commission and the Securities and Exchange Commission also provided assistance in the investigation. The case is being prosecuted by Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason R. Burt and Mark Y. Hirata of the District of Utah.
Houston Investment Manager Sentenced to 56 Months in Prison for Orchestrating $72 Million Ponzi SchemeRead the Press Release
SALT LAKE CITY - A Houston investment manager was sentenced late Wednesday afternoon to 56 months in prison for orchestrating a $72 million investment fraud scheme resulting in approximately $40 million in losses to investors. U.S. District Judge Robert J. Shelby imposed the sentence in federal court in Salt Lake City.
Robert Andres, 63, of Houston, Texas, pleaded guilty on Aug. 22, 2013, to wire fraud. In addition to the prison sentence, Judge Robert J. Shelby also ordered Andres to pay more than $3.2 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Carlie Christensen of the District of Utah, Special Agent in Charge Mary Rook of the FBI’s Salt Lake City Field Office and Special Agent in Charge John Collins of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Las Vegas Field Office made the announcement.
According to admissions made in connection with his guilty plea, between October 2005 and 2011, Andres recruited investors for Winsome Investment Trust, where he served as the sole manager, attorney and trustee, by misrepresenting Winsome’s assets, asset allocation and the manner in which investor funds were invested. Indeed, between October 2005 and April 2007, Andres raised more than $39 million by disseminating false and misleading balance sheets and representing that he would invest all of the investors’ funds in a trading program or mostly automated trading business.
Also according to Andres’ admissions, he intentionally failed to disclose to potential investors that their money would actually be used to pay earlier investors. In addition, Andres used new investor funds to make purported “profit” payments to earlier investors to create the false impression that Winsome was profitable. During this period, Andres also misappropriated approximately $2.2 million in investor money for personal use, including hotel bills and living expenses.
This case was investigated by the FBI’s Salt Lake City Field Office and IRS-CI’s Las Vegas Field Office. The Commodity Futures Trading Commission and the Securities and Exchange Commission also provided assistance in the investigation. The case is being prosecuted by Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason R. Burt and Mark Y. Hirata of the District of Utah.
Houma Man Sentenced After Pleading Guilty to Cocaine Possession ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALTON CELESTINE, age 35, of Houma, was sentenced after having pled guilty to two counts of possession with intent to distribute cocaine. CELESTINE pled guilty to one count of possession with intent to distribute twenty-eight grams of cocaine base (“crack”) and one count of possession with intent to distribute twenty-eight grams of crack and a quantity of cocaine hydrochloride.
U.S. District Judge Helen G. Berrigan sentenced CELESTINE to time served after having served 41 months in jail, and 4 years of supervised release.
The plea and sentencing of CELESTINE followed an investigation by the Terrebonne Parish Narcotics Division and the Drug Enforcement Administration who identified CELESTINE as a distributor of cocaine.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Narcotics Division in investigating this matter. Assistant United States Attorney Andre Jones was in charge of the prosecution.
Honduran Nationals Charged with Drug Trafficking Arrived in South Florida after being ExtraditedRead the Press Release
Two Honduran nationals were extradited from Honduras to the United States as a result of their alleged participation in a large-scale drug trafficking organization that operates in the western portion of Honduras. These individuals allegedly knew that the large amounts of cocaine they were trafficking would end up in the United States. They arrived in South Florida this afternoon.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and A.D. Wright, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
On December 3, 2013, the Southern District of Florida charged Miguel Arnulfo Valle-Valle, 43, Luis Alonso Valle-Valle, 45, Gerson Stanley Ortega-Valle, 35, and Digna Asusena Valle-Valle, 48, with conspiring to traffic large amounts of cocaine from Colombia, through Honduras, with the eventual destination being the United States. On July 20, 2014, Digna Asusena Valle-Valle was arrested at Miami International Airport, and is scheduled to commence trial in the Southern District of Florida before U.S. District Judge William P. Dimitrouleas, on February 17, 2015. Miguel Arnulfo Valle-Valle and Luis Alonso Valle-Valle were arrested in Honduras on October 5, 2014.
These defendants have been identified as members of a group known as Los Valles, who use the department of Copan as the base of their operations, but have a strong influence in the area containing San Pedro Sula, located in the department of Cortes. Los Valles consists of several individuals; however, the primary leaders of the organization are the two brothers, Miguel Arnulfo Valle-Valle and Luis Alonso Valle-Valle. On August 20, 2014, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified the Los Valles drug trafficking organization as one of the most prolific Central American narcotics trafficking organizations. OFAC described the group, led by Miguel Arnulfo Valle-Valle, as being responsible for the distribution of tens of thousands of kilograms of cocaine per month directly into the United States. The Los Valles organization employs a combination of brutal violence and public corruption in order to keep a stronghold on their base of operations in Copan.
The charges against the Valle-Valle brothers and the other two Honduran nationals are the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the DEA Miami Field Division. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA and the significant assistance provided by the Office of International Affairs, Criminal Division, U.S. Department of Justice, in the apprehension and extradition of the Valle-Valle brothers. Mr. Ferrer also commended the efforts of President of the Honduran Republic Juan Orlando Hernàndez Alvarado and other Honduran officials for their cooperation and support during the extradition of the Valle-Valle brothers. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
An indictment is only an accusation and each defendant is presumed innocent unless and until proven guilty.
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.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALFREDO VARELA-HERNANDEZ, age 35, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien.
According to the Bill of Information, on or about September 12, 2014, VARELA-HERNANDEZ was found in the United States after having been officially deported and removed on or about December 30, 2013.
ALFREDO VARELA-HERNANDEZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L. Feldman set sentencing for April 22, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Guatemalan National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ISIDRO OROZCO-LOPEZ, age 34, a citizen of Guatemala, was charged today in a one-count Bill of Information with illegal reentry of a removed alien.
According to the bill of information, ISIDRO OROZCO-LOPEZ reentered the United States on or about November 8, 2014, after having been previously removed therefrom on or about November 25, 2013.
If convicted, ISIDRO OROZCO-LOPEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Guatemalan Man Indicted, Charged with Being in the United States After DeportationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Josue Joel Castaneda-Cuyuch, 31, a citizen of Guatemala, has been indicted and charged with being found in the United States after having been previously deported.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that the defendant is an alien previously been deported and removed from the United States in August 2010. According to the indictment, on September 11, 2014, Castaneda-Cuyuch was found in the United States without having obtained the consent of the Attorney General of the United States.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy. Castaneda-Cuyuch pleaded not guilty and is due back in court on June 2, 2015.
The indictment is the culmination of an investigation by the United States Border Patrol, under the direction of under the direction of Patrol Agent in Charge Tom Pocorobba.
Group of Four Philadelphians Charged with Counterfeiting Gift CardsRead the Press Release
Robert Durandis, 24, Donald Charles, 25, Gilbert Pierre-Charles, 22 and Manuel Reyes-Gonzalez, 21, all of Philadelphia, Pennsylvania were charged today by superseding indictment with conspiracy, access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger. The defendants traveled throughout Pennsylvania and other locations and used counterfeit credit, debit and gift cards, encoded with stolen account numbers, to purchase numerous cartons of cigarettes, gift cards and other items.
If convicted, Robert Durandis faces a maximum possible sentence of 84 years in prison and a fine of $3.25 million; Donald Charles faces a maximum possible sentence of 42 years in prison and a fine of $2.25 million; Gilbert Pierre-Charles faces a maximum possible sentence of 69 years in prison and a fine of $3.25 million; and Manuel Reyes-Gonzalez faces a maximum possible sentence of 67 years in prison and a fine of $3 million.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney K.T. Newton
Gretna Man Sentenced for Illegal use of A Social Security NumberRead the Press Release
ANDRES VILLALVA-GUADARRAMA, age 53, a Mexican citizen living in Gretna, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal use of a Social Security Number.
U.S. District Judge Eldon E. Fallon sentenced VILLALVA-GUADARRAMA to time served and a $100 special assessment.
According to court documents, VILLALVA-GUADARRAMA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on an U.S. Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him.
U.S. Attorney Polite praised the work of the Department of Homeland Security/ICE in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Godfrey Man Indicted for Receiving Child PornographyRead the Press Release
Follow @SDILNewsA federal grand jury sitting in East St. Louis has indicted Adam B. Hill, 35, of Godfrey, Illinois, for Receipt of Child Pornography, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The indictment alleges that between July 1, 2013, and July 1, 2014, Hill knowingly received visual depictions containing child pornography using a facility of interstate commerce.
A trial date has not yet been set. If convicted of Receipt of Child Pornography, Hill faces a jail term of not less than five (5) years up to twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An Indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This investigation was conducted by the Madison County Sheriff’s Department and the case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Former Wackenhut Security Officer Indicted for Theft of Public FundsRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a three-count indictment on Dec. 16, 2014, against Sarah Parker, 52, of Dandridge, Tenn., for theft of U.S. Government property and money laundering. Parker appeared in court on Dec. 18, 2014, before U.S. Magistrate Judge C. Clifford Shirley, Jr. and pleaded not guilty to the charges in the indictment. She was released pending trial, which has been set for Feb. 17, 2015, in United States District Court, Knoxville.
The indictment alleges that Parker, who was employed as a Security Protective Officer with Wackenhut Services Inc. at the ETTP facility in Oak Ridge, Tenn., converted $214,022.59 to personal use, in the form of checks that came into her possession as a result of her employment. The indictment further alleges that Parker illegally engaged in financial transactions with those funds, including the purchase of a vehicle for $39,608.97 and payment of $74,327.12 to Bank of America.
If convicted, Parker faces a term of 10 years in prison for each count. The indictment also states that Parker, upon conviction, may be required to forfeit any property that is traceable to the alleged offenses.
This indictment is the result of an investigation by the U.S. Department of Energy, Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Former Rite Aid Vice President and New Jersey Businessman Charged in $14.6 Million Fraud & Kickback SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Corporation Vice President and a New Jersey businessman have been charged in connection with a $14.6 million, surplus inventory sales/kickback scheme.
According to United States Attorney Peter Smith, Jay Findling, age 54, of Manalapan, New Jersey, is charged in a Criminal Information filed today in the United States District Court in Harrisburg with conspiracy to commit wire fraud. Former Rite Aid Vice President Timothy P. Foster, 65, of Portland, Oregon, is charged in the same criminal information with making false statements to authorities.
The charges are based upon Foster’s and Findling’s alleged nine year conspiracy to defraud Rite Aid, a publicly-owned national drug store chain with its headquarters located in Camp Hill, Pennsylvania, via a surplus inventory sales scheme that took place between 2001 and 2010. As the Vice President for Quality Assurance, Foster’s primary responsibilities at Rite Aid involved the liquidation of surplus Rite Aid inventory across the United States. During the time period in question, Foster worked for Rite Aid in Oregon. According to the criminal information, Findling’s and Foster’s scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts. Findling would then kick back a portion of his profits to Foster.
The scheme allegedly started in 2001 and continued until February of 2010 when Foster resigned from Rite Aid. According to the criminal information, Findling established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.” The account was used by the two conspirators to collect the payments submitted by the real buyers of the surplus Rite Aid inventory. After the payments were received, Findling sent lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers. According to the criminal information, Findling received at least $87.4 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only had to tender $72.8 million of that amount to Rite Aid, leaving Findling approximately $14.6 million in profits from the scheme.
The criminal information also alleges that Foster knowingly and willfully lied when he was interviewed by FBI agents in January 2014 and denied he conspired with Findling to defraud Rite Aid. Foster later recanted his false statements when he was re-interviewed by the FBI in May 2014. During that interview Foster not only admitted he conspired to defraud Rite Aid with Findling, he voluntarily surrendered $2,941,940 in cash kickbacks Findling had paid Foster over the life of the conspiracy.
The Criminal Information was filed pursuant to plea agreements with the two defendants. Both agreements, which are subject to approval by the court, require the defendants to cooperate with the government and to pay restitution to Rite Aid as ordered by the court. Findling’s plea agreement also obligates him to make a $11.6 million lump sum forfeiture payment to the government at the time he enters his guilty plea. No date has been scheduled as yet for the entry of Foster’s or Findling’s guilty plea.
The case was investigated by the Harrisburg Office of the FBI. Both defendants are being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the judge after consideration of the applicable federal sentencing statutes and the federal sentencing guidelines.
Both the false statement and the conspiracy count are punishable by up to 5 years imprisonment and a $250,000 fine. Under the federal sentencing guidelines, the judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Rite Aid Vice President and New Jersey Businessman Charged in $14.6 Million Fraud & Kickback SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Corporation Vice President and a New Jersey businessman have been charged in connection with a $14.6 million dollar, surplus inventory sales/kickback scheme.
According to United States Attorney Peter Smith, Jay Findling, age 54, of Manalapan, New Jersey, is charged in a Criminal Information filed today in the United States District Court in Harrisburg with Conspiracy to commit Wire Fraud. Former Rite Aid Vice President Timothy P. Foster, age 65, of Portland Oregon, is charged in the same Criminal Information with making False Statements to Authorities.
The charges are based upon Foster’s and Findling’s alleged 9 year conspiracy to defraud Rite Aid, a publicly-owned national drug store chain with its headquarters located in Camp Hill, Pennsylvania, via a surplus inventory sales scheme that took place between 2001 and 2010. As the Vice President for Quality Assurance, Foster’s primary responsibilities at Rite Aid involved the liquidation of surplus Rite Aid inventory across the United States. During the time period in question, Foster worked for Rite Aid in Oregon. According to the Criminal Information, Findling’s and Foster’s scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries, LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts. Findling would then kick back a portion of his profits to Foster.
The scheme allegedly started in 2001 and continued until February of 2010 when Foster resigned from Rite Aid. According to the Criminal Information, Findling established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.” The account was used by the two conspirators to collect the payments submitted by the real buyers of the surplus Rite Aid inventory. After the payments were received, Findling sent lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers. According to the Criminal Information Findling received at least $87.4 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only had to tender $72.8 million of that amount to Rite Aid, leaving Findling approximately $14.6 million in profits from the scheme.
The Criminal Information also alleges that Foster knowingly and willfully lied when he was interviewed by FBI agents in January 2014 and denied he conspired with Findling to defraud Rite Aid. Foster Later recanted his false statements when he was re-interviewed by the FBI in May 2014. During that interview Foster not only admitted he conspired to defraud Rite Aid with Findling, he voluntarily surrendered $2,941,940 in cash kickbacks Findling had paid Foster over the life of the conspiracy.
The Criminal Information was filed pursuant to plea agreements with the two defendants. Both agreements, which are subject to approval by the court, require the defendants to cooperate with the government and to pay restitution to Rite Aid as ordered by the court. Findling’s plea agreement also obligates him to make a $11.6 million dollar, lump sum forfeiture payment to the government at the time he enters his guilty plea. No date has been scheduled as yet for the entry of Foster’s or Findling’s guilty plea.
The case was investigated by the Harrisburg Office of the FBI. Both defendants are being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Both the False Statement and the Conspiracy count are punishable by up to 5 years imprisonment and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Former Police Officer Indicted for Multiple Incidents of AssaultRead the Press Release
The Justice Department announced that a federal grand jury in Shreveport, Louisiana, returned an indictment against former Homer Police Department Officer Willie Fred Knowles, 64, charging him with violating the civil rights of multiple individuals during three different incidents, as well as with making false statements to the FBI.
Knowles was charged with one count of willfully depriving a person of her civil rights when he pushed her down and struck her about her face and body, without justification. Knowles is also charged with making false statements to the FBI about this incident. In addition, Knowles is charged with depriving the rights of two other individuals during two separate incidents in which he tased them without justification.
If convicted, Knowles faces a maximum punishment of 10 years imprisonment on the civil rights charges; and five years in prison for making false statements to the FBI.
This case was investigated by the FBI. The case was referred to the FBI by the Louisiana State Police. The case is being prosecuted by Trial Attorney Christine M. Siscaretti from the Justice Department’s Civil Rights Division and Assistant United States Attorney Mary J. Mudrick of the Western District of Louisiana.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Former Non-Profit Director Sentenced for Defrauding Government AgenciesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that MARCIA PETERSON, of Gretna, was sentenced yesterday for defrauding several federal and state agencies.
U.S. District Judge Martin L.C. Feldman sentenced PETERSON to 15 months imprisonment, to be followed by 36 months of supervised release. Additionally, PETERSON was ordered to pay $91,492.41 in restitution.
According to court documents, PETERSON was sentenced after having pled guilty in August to two counts of theft of government funds and one count of wire fraud. PETERSON was the executive director and accountant for CDC 58:12, a non-profit with a stated mission of transforming communities by creating opportunities in housing, education, health, and economic development. From 2011 through 2013, PETERSON improperly withdrew approximately $87,000 in federal grant funds from CDC’s bank account and spent the money on gambling and other personal expenses. Additionally, from August 2012 to December 2012, while working for CDC, PETERSON falsely claimed to the Louisiana Workforce Commission that she was out of work in order to receive $4,199 in unemployment insurance benefits.
U.S. Attorney Polite praised the work of the U.S. Department of Housing and Urban Development - Office of Inspector General, the U.S. Department of Education - Office of Inspector General, the U.S. Department of Labor - Office of Inspector General, and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Former Midamar Operations Manager ChargedRead the Press Release
Philip G. Payne, 50, of Ryan, Iowa, has been charged with one count of conspiracy to make and deliver false certificates and writings; one count of conspiracy to defraud the United States; and one count of conspiracy to commit mail and wire fraud. The charges are contained in an Information filed today in United States District Court in Cedar Rapids.
According to the Information, Payne was the former Operations Manager for Midamar Corporation in Cedar Rapids, Iowa. Midamar was indicted on related charges in the Northern District of Iowa on December 5, 2014.
If convicted on all counts, Payne could be sentenced to eleven years’ imprisonment and fined up to $600,000. A term of supervised release could also be ordered upon conviction on any of the counts.
Payne is scheduled to first appear in court at 4:00 pm on January 5, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General, and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00143-LRR.Former Homer Police Officer Indicted for Civil Rights ViolationsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a grand jury indicted a former Homer Police Officer Wednesday for depriving three people of their civil rights by attacking them and also for lying to FBI agents.
Former Homer Police Officer Willie Fred Knowles, 64, of Homer, was charged with three counts of deprivation of civil rights and one count of lying to a federal agency. According to the indictment, while acting as a police officer, Knowles violated a victim’s civil rights on October 29, 2012 by attacking the victim. He pushed the victim to the floor and struck the victim in the face and body causing bodily injury. He then lied to the FBI on March 1, 2013 about the incident. Knowles told agents that he was attacked and never struck the victim. In two other incidents on January 14, 2012 and July 5, 2012, Knowles deployed his TASER without justification on two victims, which caused physical injury and violated the victims’ civil rights.
Knowles faces 10 years in prison for each civil rights count and five years in prison for lying to a federal agency. He also faces three years of supervised release and a $250,000 fine.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick and Trial Attorney Christine M. Siscaretti from the Justice Department’s Civil Rights Division are prosecuting the case.An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Federal Law Enforcement Agent Pleads Guilty to Theft of Agency's AmmunitionRead the Press Release
A former special agent with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) pleaded guilty today to theft of government property for stealing thousands of rounds of law enforcement ammunition, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Elton Malone of HHS-OIG’s Special Investigations Branch.
Josef A. Riekers, 44, of Rockwall, Texas, pleaded guilty before Chief U.S. District Judge Jorge A. Solis of the Northern District of Texas, who set a sentencing hearing for April 8, 2015.
According to admissions in his plea agreement, Riekers, who had served as a federal law enforcement agent for over 15 years, stole ammunition from the armory at HHS-OIG’s Dallas regional office. Riekers then traded the stolen ammunition on Internet forums for other, non-government-issued ammunition that he used for his own personal benefit.
This case was investigated by HHS-OIG’s Special Investigations Branch, with assistance from the Dallas Police Department’s Criminal Intelligence Unit. The case is being prosecuted by Trial Attorneys Kevin Driscoll and Justin Weitz of the Public Integrity Section.
Former Executive Director of Gallup Housing Authority and Accomplice Sentenced to Federal Prison for Convictions on Fraud and Theft ChargesRead the Press Release
ALBUQUERQUE – The former Executive Director of the Gallup Housing Authority and an accomplice were sentenced this morning to federal prison for their convictions arising out of a scheme to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) of more than $100,000.00.
Danny Garcia, 39, formerly of Gallup, N.M., and now residing in Snowflake, Ariz., was sentenced to 20 months in prison followed by three years of supervised release. His co-defendant, Michael Virruso, 62, of Gallup, N.M., was sentenced to 18 months in prison followed by three years of supervised release. Garcia also was ordered to pay $105,000.00 in restitution, including $75,000.00 that must be paid jointly by Garcia and Virruso.
The sentences were announced by U.S. Attorney Damon P. Martinez, Phyllis Robinson, Special Agent in Charge of Region 6, HUD Office of Inspector General, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Garcia and Virruso were indicted in Aug. 2013, on one count of conspiracy and eight counts of making false claims against the United States. Garcia also was charged with three counts of theft from programs receiving federal funds. According to the indictment, between June 2010 and Oct. 2012, Garcia and Virruso engaged in a scheme to steal federal funds provided by HUD to the Gallup Housing Authority (GHA). HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. HUD oversees and funds programs designed to provide affordable housing for low-income Americans. One such program, the Capital Fund Program (CFP), provides grants to public housing agencies for the purpose of making improvements to public housing developments. GHA is a public housing agency that receives approximately $400,000.00 in CFP grants each year and Garcia was the Executive Director of GHA at the time of the offenses charged in the indictment.
As Executive Director of GHA, Garcia was responsible for selecting contractors to carry out GHA projects, reviewing and approving invoices payable by GHA, and requesting HUD funds to pay for GHA projects. According to the indictment, in summer 2010, Garcia awarded a contract to remove and replace sidewalks in a GHA housing development to a construction company that employed Virruso and appointed Virruso to act as safety inspector. While working on the project, Virruso submitted invoices to GHA for work performed by the company and for which the company received payment. Garcia used GHA funds to pay Virruso’s invoices and then obtained reimbursement from HUD’s CFP. Virruso and Garcia then formed a company together, MCL Construction. Virruso submitted a fraudulent invoice from MCL to Garcia, who approved the invoice for payment from HUD funds, and both men collected a share of the proceeds. Virruso fraudulently received more than $75,000.00 through this scheme. In addition, Garcia embezzled more than $15,000.00 of HUD funds by misusing a GHA debit card.
On July 8, 2014, both men entered guilty pleas to Counts 1 and 9 of the indictment charging them with conspiracy to commit false claims against the United States and false claims against the United States. Garcia also pleaded guilty to Count 10 of the indictment charging him with theft from a program receiving federal funds. In their respective plea agreements, Garcia and Virruso each admitted participating in the unlawful scheme described in the indictment. Garcia also admitted embezzling GHA funds by making personal purchases exceeding $5,000.00 per year using a debit card linked to a GHA bank account.“The sentencing today of Danny Garcia and Michael Virruso should send a strong message to anyone who serves in a position of public trust that abuses for the purpose of personal enrichment will be vigorously investigated to ensure they are brought to justice and debarred from future participation in government programs,” said Phyllis G. Robinson, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development.
U.S. Attorney Damon P. Martinez commended Region 6, HUD Office of Inspector General and the Albuquerque Division of the FBI, who investigated the case, and Assistant U.S. Attorney Jeremy Peña, who prosecuted the case.
Former Defense Department Employee Sentenced to 40 Months in Prison for $2.5 Million Health Care FraudRead the Press Release
Jonathan M. Hargett, a former civilian employee of the Department of Defense, was sentenced today to serve 40 months in prison on a charge of health care fraud stemming from a scheme in which he collected over $2.2 million after submitting fraudulent claims for federal health care benefits.
The sentencing was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Robert E. Craig Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); Gregg Hirstein, Special Agent in Charge of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Central Field Office of Investigations; and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
Hargett, 42, formerly of Germany, pleaded guilty on Sept. 8, 2014, in the U.S. District Court for the District of Columbia. He was indicted in October 2013, extradited from Germany, and returned to the United States in July 2014. He was sentenced by the Honorable Senior Judge Paul L. Friedman. Upon completion of his prison term, Hargett will be placed on three years of supervised release. The plea agreement also calls for Hargett to pay over $2.2 million in restitution to the United States. He also is subject to a forfeiture money judgment in the same amount. The government has seized more than $704,000 from Hargett’s bank accounts, and German authorities have seized or frozen over $500,000.
“Jonathan Hargett is headed to prison because he ripped off more than $2 million from the American taxpayer,” said U.S. Attorney Machen. “His bogus medical claims drained resources from a program designed to serve wounded veterans. Defending the integrity of federal health care programs is a top priority because it protects the funds needed to provide medical services to our veterans and other deserving citizens.”
“Protecting the integrity of the Department of Defense's programs and resources, to include health care funding, is of critical importance to the Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Craig. “When government personnel display a blatant disregard for the law and intentionally divert taxpayer money to enrich themselves, DCIS and our law enforcement partners will aggressively investigate, work to ensure prosecution to the fullest extent possible, and seek to recover all available funds so they may be returned to proper use.”
“The purpose of the Federal Employees Health Benefits Program is to provide for the health and well-being of federal employees, retirees, and their families,” said Inspector General McFarland of the OPM. “Through his unscrupulous actions, Mr. Hargett not only stole from enrollees and the American taxpayers, he also violated their trust. We are all gratified to see that he will be held accountable.”
“The VA's Foreign Medical Program is extremely important to veterans who need medical care while residing or traveling abroad,” said Special Agent in Charge Hirstein. “Today's sentencing reaffirms the VA Office of Inspector General's commitment to bring to justice those who steal from such programs which promote the health and well-being of our nation's deserving veterans.”
“We applaud Mr. Hargett's sentencing and are pleased that he has been brought to justice for fraud and stealing from the American taxpayer,” said Director Robey. “We cannot emphasize enough that if you attempt to steal and commit fraud against the DOD and U.S. Army, you will be caught and brought to justice. Mr. Hargett is a prime example.”
According to a statement of offense submitted to the Court at the time of the guilty plea, Hargett worked from 1996 through 2012 in various positions as a civilian employee for the Department of Defense in Germany. From January 2011 through May 2012, he was an intelligence analyst stationed in Heidelberg. Previously, he had served in the U.S. Army from 1992 to 1996.
As a federal employee stationed overseas, Hargett was enrolled since 2002 in the Foreign Service Benefit Plan (FSBP), a health care benefit program. Because of his service in the Army, he also was eligible for health care coverage from the U.S. Department of Veterans Affairs. For veterans working or residing abroad, the VA provides this coverage through its Foreign Medical Program (VA-FMP).
From January 2007 through April 2012, according to the statement of offense, Hargett carried out a scheme to submit fraudulent claims and invoices to the FSBP and the VA-FMP. The claims falsely represented that Hargett bought prescription medications and other pharmaceutical items from a pharmacy in Germany. They also falsely represented that he had received and paid for various health care items and services from a doctor in Germany. Hargett also created and submitted forged invoices and other fraudulent paperwork, and admitted creating many of the false invoices on his government computer at the U.S. Army base in Heidelberg, Germany.
All told, Hargett submitted more than $2.5 million in false claims to the two government health care programs, for items and services Hargett never received and never paid for. As a result, Hargett wrongfully obtained more than $2.2 million, including about $943,519 from the FSBP and $1,261,512 from the VA-FMP.
This case was investigated by the Defense Criminal Investigative Service, the Office of the Inspector General for the Office of Personnel Management, the Office of the Inspector General for the Department of Veterans Affairs, and the U.S. Army Criminal Investigation Command. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division; the Department of Defense; U.S. Army Europe (USAREUR) Legal Office; former Assistant U.S. Attorney Courtney G. Saleski; Paralegal Specialist Donna Galindo, and former Paralegal Specialist Nicole Wattelet.
The case was prosecuted by Assistant U.S. Attorneys Ted Radway and Peter Lallas, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Assistant U.S. Attorney Diane Lucas, of the office’s Asset Forfeiture and Money Laundering Section.
Former Defense Department Employee Sentenced to 40 Months in Prison for $2.5 Million Health Care Fraud-Veteran Admits Submitting Fraudulent Claims for Medical Expenses-Read the Press Release
WASHINGTON – Jonathan M. Hargett, a former civilian employee of the Department of Defense, was sentenced today to 40 months in prison on a charge of health care fraud stemming from a scheme in which he collected over $2.2 million after submitting fraudulent claims for federal health care benefits.
The sentencing was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); Gregg Hirstein, Special Agent in Charge of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Central Field Office of Investigations; and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
Hargett, 42, formerly of Germany, pled guilty on Sept. 8, 2014, in the U.S. District Court for the District of Columbia. He was indicted in October 2013, extradited from Germany, and returned to the United States in July 2014. He was sentenced by the Honorable Senior Judge Paul L. Friedman. Upon completion of his prison term, Hargett will be placed on three years of supervised release. The plea agreement also calls for Hargett to pay over $2.2 million in restitution to the United States. He also is subject to a forfeiture money judgment in the same amount. The government has seized more than $704,000 from Hargett’s bank accounts, and German authorities have seized or frozen over $500,000.
“Jonathan Hargett is headed to prison because he ripped off more than $2 million from the American taxpayer,” said U.S. Attorney Machen. “His bogus medical claims drained resources from a program designed to serve wounded veterans. Defending the integrity of federal health care programs is a top priority because it protects the funds needed to provide medical services to our veterans and other deserving citizens.”
“Protecting the integrity of the Department of Defense's programs and resources, to include health care funding, is of critical importance to the Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Craig. “When government personnel display a blatant disregard for the law and intentionally divert taxpayer money to enrich themselves, DCIS and our law enforcement partners will aggressively investigate, work to ensure prosecution to the fullest extent possible, and seek to recover all available funds so they may be returned to proper use.”
“The purpose of the Federal Employees Health Benefits Program is to provide for the health and well-being of Federal employees, retirees, and their families,” said Inspector General McFarland of the OPM. “Through his unscrupulous actions, Mr. Hargett not only stole from enrollees and the American taxpayers, he also violated their trust. We are all gratified to see that he will be held accountable.”
“The VA's Foreign Medical Program is extremely important to veterans who need medical care while residing or traveling abroad,” said Special Agent in Charge Hirstein. “Today's sentencing reaffirms the VA Office of Inspector General's commitment to bring to justice those who steal from such programs which promote the health and well-being of our nation's deserving veterans.”
We applaud Mr. Hargett's sentencing and are pleased that he has been brought to justice for fraud and stealing from the American taxpayer,” said Director Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “We cannot emphasize enough that if you attempt to steal and commit fraud against the DOD and U.S. Army, you will be caught and brought to justice. Mr. Hargett is a prime example.”
According to a statement of offense submitted to the Court at the time of the guilty plea, Hargett worked from 1996 through 2012 in various positions as a civilian employee for the Department of Defense in Germany. From January 2011 through May 2012, he was an intelligence analyst stationed in Heidelberg. Previously, he had served in the U.S. Army from 1992 to 1996.
As a federal employee stationed overseas, Hargett was enrolled since 2002 in the Foreign Service Benefit Plan (FSBP), a health care benefit program. Because of his service in the Army, he also was eligible for health care coverage from the U.S. Department of Veterans Affairs. For veterans working or residing abroad, the VA provides this coverage through its Foreign Medical Program (VA-FMP).
From January 2007 through April 2012, according to the statement of offense, Hargett carried out a scheme to submit fraudulent claims and invoices to the FSBP and the VA-FMP. The claims falsely represented that Hargett bought prescription medications and other pharmaceutical items from a pharmacy in Germany. They also falsely represented that he had received and paid for various health care items and services from a doctor in Germany. Hargett also created and submitted forged invoices and other fraudulent paperwork, and admitted creating many of the false invoices on his government computer at the U.S. Army base in Heidelberg, Germany.
All told, Hargett submitted more than $2.5 million in false claims to the two government health care programs, for items and services Hargett never received and never paid for. As a result, Hargett wrongfully obtained more than $2.2 million, including about $943,519 from the FSBP and $1,261,512 from the VA-FMP.
This case was investigated by the Defense Criminal Investigative Service, the Office of the Inspector General for the Office of Personnel Management, the Office of the Inspector General for the Department of Veterans Affairs, and the U.S. Army Criminal Investigation Command. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division; the Department of Defense; U.S. Army Europe (USAREUR) Legal Office; former Assistant U.S. Attorney Courtney G. Saleski; Paralegal Specialist Donna Galindo, and former Paralegal Specialist Nicole Wattelet.
The case was prosecuted by Assistant U.S. Attorneys Ted Radway and Peter Lallas, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Assistant U.S. Attorney Diane Lucas, of the office’s Asset Forfeiture and Money Laundering Section.
14-279Former College Bookstore Director Pleads Guilty to Fraud and False Tax Return ChargesRead the Press Release
A former director of the Clarke University bookstore in Dubuque, Iowa, who used a fictitious book supply company to falsely bill the University for more than $300,000.00, pled guilty today in federal court in Cedar Rapids.
James Spaulding, age thirty-five, from Longmont, Colorado, was convicted of one count of mail fraud and two counts of filing false tax returns.
In a plea agreement, Spaulding admitted he was the director of the Clarke University Bookstore between 2011 and 2012. Spaulding and his friend, T.D., created a fictitious corporation called RVP Wholesale Books (“RVP”), then caused RVP to issue false invoices to Clarke University purporting to show that RVP supplied the Clarke University bookstore with books. In truth, RVP never supplied the Clarke University bookstore with any books. Spaulding and T.D. split the proceeds of the fraud, totaling more than $302,000.00. Spaulding filed false tax returns for 2011 and 2012 in which he failed to disclose the illegal proceeds he obtained from the fraud. Spaulding later lied to a federal grand jury in Cedar Rapids, Iowa, by claiming RVP supplied the Clarke University bookstore with books.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Spaulding was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Spaulding faces a possible maximum sentence of twenty-six years’ imprisonment, a $750,000 fine, $300 in special assessments, seven years of supervised release following any imprisonment, and must pay the costs of prosecution.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service-Criminal Investigation and the Dubuque Police Department. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-1022.
Former Beaumont Physician Sentenced for Health Care Fraud ViolationRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 75-year-old Beaumont doctor has been sentenced to federal prison for health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Q. A. Webb, Jr., now living in Houston, pleaded guilty on July 23, 2014 to conspiracy to commit health care fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, from January 2008 to December 2011, Webb, while he owned, operated and managed Beaumont Medical Clinic on Eastex Freeway in Beaumont, conspired with his office manager to have unlicensed individuals treat patients and then bill health care providers as if Webb had personally provided the services. To execute the scheme, Webb would allow unlicensed staff to prescribe controlled substances to patients when he was not on the premises and allowed his office manager to distribute the controlled substances directly to patients. Investigators have determined that the total amount of loss in this case for which Webb is responsible is $328,238.41. Programs suffering losses as a result of this scheme are Medicare, Medicaid, Blue Cross Blue Shield, and Aetna. Webb was indicted by a federal grand jury on Dec. 5, 2013.
This case was investigated by the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services, Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration. This case was prosecuted by Special Assistant U.S. Attorney Catherine Levacy Cockrell.
Former Bank of the West Employee Arraigned on Federal Embezzlement and Identity Theft ChargesRead the Press Release
Defendant Charged with Embezzling Money from Bank of the West,
Two Indian Tribal Organizations and Several Individual Account HoldersALBUQUERQUE – Angela Giddings, 37, of Albuquerque, N.M., was arraigned this morning on a 22-count indictment charging her with embezzlement by a bank employee, embezzlement from Indian tribal organizations, and aggravated identity theft. Giddings entered a not guilty plea during today’s arraignment hearing and was released on conditions of release and pretrial services supervision pending trial, which has yet to be scheduled.
The indictment charges Giddings with 12 counts of embezzlement by a bank employee; six counts of embezzlement from Indian tribal organizations; and four counts of aggravated identity theft. The indictment alleges that Giddings committed these crimes in Bernalillo County, N.M., between Feb. 2, 2013, and July 18, 2014. At the time, Giddings was employed as a customer services manager for Bank of the West.
According to the indictment, Giddings embezzled funds entrusted to the bank by withdrawing and transferring funds from the accounts of customers without authorization and for her own use. The indictment alleges that Giddings’ allegedly unlawful withdraws and transfers ranged from $15,000.00 to $60,000.00. It also alleges that the victims of Giddings’ criminal conduct included the To’hajilee Community School Board and the Cañoncito Band of Navajos. The aggravated identity theft charges allege that Giddings used the names, addresses, and personal identifiers of individuals to commit felony offenses.
If convicted, Giddings faces a statutory maximum penalty of 30 years in prison on each of the 12 embezzlement by a bank employee charges; a statutory maximum penalty of five years in prison on each of the six embezzlement from an Indian tribal organization charges; and a mandatory two-year term of imprisonment on each of the four identity theft charges that must be served consecutive to any sentence imposed on the embezzlement charges. The indictment also includes forfeiture provisions that seek forfeiture to the United States of money and property constituting, or derived from, the proceeds of Giddings’ alleged criminal activity.
Charges in indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Office of Inspector General of the Federal Deposit Insurance Corporation, and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
Florida Man Guilty in Mortgage Relief ScamRead the Press Release
Earlier today, a criminal information was filed charging Jonathan L. Herbert, of Lighthouse Point, Florida, with wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The information charged Herbert, 36, with conducting a home loan modification scam that targeted individuals who were having difficulties making their mortgage payments. During a hearing this afternoon before United States District Judge David R. Herndon, Herbert pleaded guilty to the fraud charge contained in the criminal information.
According to the information, Herbert conducted his fraud scheme from a strip mall office located in Fort Lauderdale, Florida. Herbert usually contacted his victims through unsolicited telephone calls, introducing himself as a “federal loan officer” with the “Federal Debt Commission,” the “Federal Mortgage Marketplace,” or the “Federal Assistance Program.” Herbert used these names and titles in order to deceive the victims into believing that his fraudulent program was operated and approved by the federal government. Herbert told his victims that they qualified for a loan modification because of financial hardship or some type of illegal conduct engaged in by their lenders.
The information further charges that, after the initial phone calls, Herbert mailed letters to the victims who expressed interest in his bogus loan modification programs. These letters congratulated the victims on their acceptance into the program, quoted a new monthly mortgage payment rate, and directed the victims to begin sending their monthly mortgage payments to one of two addresses located in Washington D.C. The Washington D.C. addresses were for mailboxes which Herbert had rented at UPS Stores. Pursuant to forwarding orders Herbert put in place with these UPS stores, the victims’ payments were then re-routed to Herbert in Florida.
According to the information, Herbert did not apply any of the money he received from the victims to reduce their home loan debt. Instead, he used the money he received from the victims for his own personal expenses and to continue his fraudulent operation. The total amount of losses sustained by the victims as a result of Herbert’s fraud scheme is approximately $750,000.
One of Herbert’s victims resides in Troy, Illinois. The information charges that during a telephone call in September 2013, Herbert falsely told this victim that the Federal Debt Commission had selected her to benefit from a new federal mortgage assistance program instituted by President Obama.
“The criminal conduct involved in this case is truly despicable,” said United States Attorney Wigginton. “Herbert preyed upon people who were already vulnerable due to financial hardship. By pretending that he was acting on behalf of the government and calling to help them, he stole their money and made their situations worse. The United States Attorney’s Office for Southern Illinois will aggressively prosecute individuals who commit these types of frauds.”
“Herbert was convicted today of operating a nationwide mortgage modification fraud scheme that he falsely claimed was affiliated with federal housing aid programs, including Home Affordable Modification Program (HAMP),” said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “Fraud perpetrated at the expense of struggling homeowners and under the guise of HAMP or other TARP program is reprehensible, and SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of these crimes.”
Herbert’s sentencing hearing has been scheduled for March 27, 2015, at 11:00 AM, at the Federal Courthouse in East St. Louis, Illinois. Wire fraud that involves telemarketing and victimizes persons over the age of 55 is punishable by up to 30 years’ imprisonment, and/or a $250,000 fine, and up to five years of supervised release. Herbert’s actual sentence will be determined by the court and will be guided by the advisory federal Sentencing Guidelines. After his plea, Herbert was taken into custody and will be held without bond awaiting sentencing.
In July of this year, the Federal Trade Commission (“FTC”) took legal action to shut down Herbert’s business. The FTC has cooperated with, and provided assistance to, the United States Attorney’s Office, the USPIS, and SIGTARP.
The investigation is being conducted by the United States Postal Inspection Service (“USPIS”) and the Treasury Department’s Special Inspector for the Troubled Asset Relief Program (“SIGTARP”). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Florida Man Guilty in Mortgage Relief ScamRead the Press Release
Follow @SDILNewsEarlier today, a criminal information was filed charging Jonathan L. Herbert, of Lighthouse Point, Florida, with wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The information charged Herbert, 36, with conducting a home loan modification scam that targeted individuals who were having difficulties making their mortgage payments. During a hearing this afternoon before United States District Judge David R. Herndon, Herbert pled guilty to the fraud charge contained in the criminal information.
According to the information, Herbert conducted his fraud scheme from a strip mall office located in Fort Lauderdale, Florida. Herbert usually contacted his victims through unsolicited telephone calls, introducing himself as a “federal loan officer” with the “Federal Debt Commission,” the “Federal Mortgage Marketplace,” or the “Federal Assistance Program.” Herbert used these names and titles in order to deceive the victims into believing that his fraudulent program was operated and approved by the federal government. Herbert told his victims that they qualified for a loan modification because of financial hardship or some type of illegal conduct engaged in by their lenders.
The information further charges that, after the initial phone calls, Herbert mailed letters to the victims who expressed interest in his bogus loan modification programs. These letters congratulated the victims on their acceptance into the program, quoted a new monthly mortgage payment rate, and directed the victims to begin sending their monthly mortgage payments to one of two addresses located in Washington D.C. The Washington D.C. addresses were for mailboxes which Herbert had rented at UPS Stores. Pursuant to forwarding orders Herbert put in place with these UPS stores, the victims’ payments were then re-routed to Herbert in Florida.
According to the information, Herbert did not apply any of the money he received from the victims to reduce their home loan debt. Instead, he used the money he received from the victims for his own personal expenses and to continue his fraudulent operation. The total amount of losses sustained by the victims as a result of Herbert’s fraud scheme is approximately $750,000.
One of Herbert’s victims resides in Troy, Illinois. The information charges that during a telephone call in September 2013, Herbert falsely told this victim that the Federal Debt Commission had selected her to benefit from a new federal mortgage assistance program instituted by President Obama.
In commenting on today’s conviction, United States Attorney Wigginton stated: “The criminal conduct involved in this case is truly despicable. Herbert preyed upon people who were already vulnerable due to financial hardship. By pretending that he was acting on behalf of the government and calling to help them, he stole their money and made their situations worse. The United States Attorney’s Office for Southern Illinois will aggressively prosecute individuals who commit these types of frauds.”
“Herbert was convicted today of operating a nationwide mortgage modification fraud scheme that he falsely claimed was affiliated with federal housing aid programs, including Home Affordable Modification Program (HAMP),” said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “Fraud perpetrated at the expense of struggling homeowners and under the guise of HAMP or other TARP program is reprehensible, and SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of these crimes.”
Herbert’s sentencing hearing has been scheduled for March 27, 2015, at 11:00 AM, at the Federal Courthouse in East St. Louis, Illinois. Wire fraud which involves telemarketing and victimizes persons over the age of 55 is punishable by up to 30 years’ imprisonment, and/or a $250,000 fine, and up to five years of supervised release. Herbert’s actual sentence will be determined by the court and will be guided by the advisory federal Sentencing Guidelines. After his plea, Herbert was taken into custody and will be held without bond awaiting sentencing.
In July of this year, the Federal Trade Commission (“FTC”) took legal action to shut down Herbert’s business. The FTC has cooperated with, and provided assistance to, the United States Attorney’s Office, the USPIS, and SIGTARP.
The investigation is being conducted by the United States Postal Inspection Service (“USPIS”) and the Treasury Department’s Special Inspector for the Troubled Asset Relief Program (“SIGTARP”). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Five Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed yesterday in U.S. District Court in Harrisburg against five illegal aliens.
According to United States Attorney Peter Smith, Delfino Garcia-Arroyo, age 38, was charged in a one-count indictment by a federal grand jury in Harrisburg alleging that Garcia-Arroyo, a Mexican citizen, who was previously arrested and deported from the United States on February 14, 2012, reentered the United States unlawfully and was found in Dauphin County, Pennsylvania.
If convicted, Garcia-Arroyo faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Luis Torres-Escalantes, age 31, was charged in a one-count indictment by a federal grand jury alleging that Torres-Escalantes, a Mexican citizen, who was previously arrested and deported from the United States on November 5, 2012, reentered the United States unlawfully and found in York County, Pennsylvania.
If convicted, Torres-Escalantes faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
Nicolas Antonio Huc-Moo, age 34, was charged in a one-count indictment by a federal grand jury alleging that Huc-Moo, a Guatemalan citizen, who was previously arrested and deported from the United States on August 27, 2008, reentered the United States unlawfully and was found in York County, Pennsylvania.
If convicted, Huc-Moo faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
Alfredo Hernandez-Sanchez, age 24, was charged in a one-count indictment by a federal grand jury alleging that Hernandez-Sanchez, a Mexican citizen, who was previously arrested and deported from the United States on April 14, 2011, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.
If convicted, Hernandez-Sanchez faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Cresencio Vazquez-Munoz, age 30, was charged in a one-count indictment by a federal grand jury alleging that Vazquez-Munoz, a Mexican citizen, who was previously arrested and deported from the United States on December 17, 2012, reentered the United States unlawfully and was found in Dauphin County, Pennsylvania.
If convicted, Vazquez-Munoz faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Five Employees, Including the Former President of Premier Links, Inc. Charged with Alleged $9 Million Microcap Stock FraudRead the Press Release
New York residents Margaret Amatulli, Frederick Anderson, Darnell Jackson, and Nicholas Spinelli were arrested today on charges that they engaged in a wire and mail fraud conspiracy to steal over nine million dollars from over 300 investors. A fifth charged defendant, Christopher Damon, is being sought for arrest by the Federal Bureau of Investigation. The five defendants worked at Premier Links, Inc., a Staten Island-based company that operated as an unregistered broker-dealer between 2006 and 2012. As alleged in the criminal complaint unsealed today in federal court in Brooklyn, the defendants targeted elderly investors to steal their money through a fraudulent microcap stock scheme and then used the investors’ money for personal expenses. To date, investigators have identified at least $9.3 million in investor losses from the scheme. If convicted, each defendant faces up to 20 years’ imprisonment, as well as a fine equal to double the investors’ losses, and mandatory restitution to the victims.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, the defendants conned elderly investors to steal their savings to fund their own personal expenses. Now, their day of reckoning has arrived. We are committed to protecting the investing public from the acts of fraudsters,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
FBI Assistant Director-in-Charge Venizelos stated, “What was intended as a get-rich-quick scheme was, in fact, a cowardly plan to deceive some of society’s most vulnerable victims, luring them into a false sense of security by promising unrealistic returns on their investments. Unlike those arrested today, the FBI and our partners intend to keep the promises we make to those who invest their faith in us. Those who employ schemes to capitalize on the pain and suffering of others will most certainly be brought to justice.”
According to the complaint unsealed this morning, Premier Links operated from a Staten Island office purportedly to sell stock to investors. However, the defendants and others at Premier Links were never registered as broker-dealers with the Securities and Exchange Commission. Instead, Premier Links operated as a “boiler room,” using “cold callers” and other means to entice victims into investing their money in securities with promises of outsized returns. The defendants located their victims by using a printed list, which one of the defendants referred to as “the suckers list.” Once the victims wired or mailed money to Premier Links, the defendants and other co-conspirators typically stole the funds for their personal use. Bank records show that the defendants converted the investors’ money into cash through over 900 ATM and teller withdrawals. They also wrote checks to themselves and made purchases at Bloomingdales, the Gap, Macy’s, various restaurants, gas stations, and Party City, among other places.
Three defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann at the federal courthouse in Brooklyn. Darnell Jackson is expected to be presented before a United States Magistrate Judge in the Northern District of New York later today for removal proceedings to the Eastern District of New York.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Jack Dennehy.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants:
MARGARET AMATULLI
Age: 45
Brooklyn, New York
FREDERICK ANDERSON
Age: 28
Far Rockaway, New York
CHRISTOPHER DAMON
Age: 45
Queens, New York
DARNELL JACKSON
Age: 48
Hudson, New York
NICHOLAS SPINELLI
Age: 30
Staten Island, New York
E.D.N.Y. Docket No. 2014 M 1082
Five Defendants Charged in Fraudulent Life Insurance Policies SchemeRead the Press Release
SAN FRANCISCO – Behnam Halali, Ernesto Magat, Kraig Jilge, Karen Gagarin, and Alomkone Soundara, a/k/a Alex Soundara, were charged in an indictment unsealed yesterday in federal court in connection with a scheme involving fraudulent life insurance policies while each was employed at the American Income Life Insurance Company (AIL), announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth, and Commissioner Dave Jones of the California Department of Insurance.
According to the indictment, the defendants participated in a scheme involving the submission of applications for life insurance policies on behalf of people who did not know that a policy was applied for or issued in their name and/or did not want a life insurance policy. The defendants then shared the commissions and bonuses issued by AIL in connection with the fraudulent policies. The indictment alleges that the defendants paid recruiters to find people willing to take medical exams in exchange for approximately $100, and then took the personal information associated with those people and submitted applications for life insurance in their names, in many cases without the individuals’ knowledge. The defendants also allegedly paid people to participate in a fictitious survey of a medical exam company, and took the personal information associated with those people and submitted applications for life insurance, in many cases without the individuals’ knowledge. In some cases, the defendants allegedly created phony driver’s licenses so that they and their co-conspirators could take medical exams purporting to be the applicants. The defendants opened hundreds of bank accounts to fund the premiums on the fraudulent policies, and typically paid one to four months of premiums before letting the policies lapse, according to the Indictment. The defendants and their co-conspirators also returned verification calls to AIL purporting to be the applicants on the fraudulent applications from telephones set up exclusively for the fraudulent scheme. In an effort to avoid detection, the defendants listed addresses of gas stations and apartment complexes on many of the fraudulent applications, and fabricated the names of the beneficiaries of the policies.
Halali, 29, of San Jose; Magat, 32, of Hayward; Jilge, 30, San Jose; Gagarin, 29, of San Jose; and Soundara, 33, of Oakland, are charged with conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349; substantive wire fraud counts, in violation of Title 18, United States, Code, Section 1343; and aggravated identity theft, in violation of Title 18, United States Code, § 1028A(a)(1). Halali, Magat, and Jilge are also charged with money laundering, in violation of Title 18, United States Code, § 1957.
The maximum statutory penalties for conspiracy to commit wire fraud and for wire fraud charges in violation of 18 U.S.C. §§ 1349 and 1343 are a prison term of 20 years, and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for aggravated identity theft in violation of 18 U.S.C. § 1028A is a mandatory prison sentence of 2 years. The maximum statutory penalties for money laundering in violation of 18 U.S.C. § 1957 is a prison term of 10 years, and a fine of $250,000 or twice the value of the criminally derived property.
All of the defendants appeared before Magistrate Judge Laurel Beeler for their initial appearances yesterday morning, and the case has been assigned to the Honorable Susan Illston, United States District Judge. The defendants are scheduled to have a follow-up appearance before Judge Beeler for ID of counsel and to finalize the defendants bail conditions tomorrow, Dec.19, 2014, at 9:30 a.m. All five defendants are also scheduled to appear before Judge Illston on Jan. 23, 2015, at 11:00 a.m.
Kim A. Berger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Bridget Kilkenney. This prosecution is the result of an investigation by the FBI, the IRS, Criminal Investigation Division, and the California Department of Insurance.
Please note that an indictment contains only allegations. As with all defendants, Behnam Halali, Ernesto Magat, Kraig Jilge, Karen Gagarin, and Alomkone Soundara, must be presumed innocent unless and until they are proven guilty.
Federal Charges Filed in Two Separate Hash Oil ExplosionsRead the Press Release
PORTLAND, Ore. – Federal prosecutors charged three people in connection with two separate explosions tied to the illegal and dangerous practice of extracting hash oil from marijuana, announced U.S. Attorney S. Amanda Marshall.
“Manufacturing hash oil poses a significant risk to families, neighbors and the general public and is illegal under federal law,” said U.S. Attorney Marshall. “An explosion and fire caused by hash oil production at a Portland apartment complex and a Tigard 76 gas station could have caused serious injuries to unaware bystanders. We will not allow this dangerous conduct to endanger the public.”
Hash oil is produced by extracting the cannabinoids from plant material with a solvent. The explosions are caused by the chemical extraction process in which butane gas is used to extract the tetrahydrocannabinol or THC from the marijuana plant. During the extraction process, the gas can quickly fill an enclosed space, and be ignited by something as ordinary as a pilot light, a spark from an electrical outlet, or someone lighting a cigarette or joint.
Two people were charged in connection with an explosion and fire at a Tigard, Oregon 76 gas station on November 23, 2014. Police and Fire were called to the 76 station at 10775 SW Greenburg Road, in response to an explosion in the bathroom of the gas station. Jose Rios-Soto and Dennis Tapia-Garcia are charged with endangering human life while manufacturing controlled substances, and manufacturing hash oil.
One person was charged in connection with an explosion and fire at a Portland apartment complex on December 8, 2014. Police were called to a disturbance at the complex and found damage from an explosion. The explosion occurred when the defendant lit a cigarette while using butane gas to manufacturing hash oil. The explosion was severe enough to blow out an exterior wall one to two feet. Edwin Stacy is charged with endangering human life while manufacturing controlled substances, and manufacturing hash oil.
“These incidents present a very real danger to the public. In our most recent case one man suffered serious burns and several people were displaced from their homes because of damage created by the explosion,” said Portland Fire Investigator Rick McGraw.
Endangering human life while manufacturing controlled substances is punishable by up to ten years in prison and three years of supervised release, and manufacturing hash oil is punishable by up to five years in prison and three years of supervised release.
The charges in the indictment are only allegations and a person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
These two cases were investigated by Tigard Police Department, Tualatin Valley Fire & Rescue, Portland Police Bureau and Portland Fire & Rescue. Assistant U.S. Attorneys Pamala Holsinger and Scott Kerin are handling the prosecution.
Fairport Woman Sentenced for Lying to Federal InvestigatorsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ann Marie Laurini, 48, of Fairport, N.Y., who was convicted of making false statements to Special Agents of the Internal Revenue Service, was sentenced to one year probation by U.S. District Judge Frank P. Geraci.Assistant U.S. Attorney John J. Field, who handled the case, stated that Laurini repeatedly lied to IRS agents in connection with an investigation of Kenneth Griffin and others into financial fraud and money-laundering crimes. The defendant was employed by Griffin from March 2006 to May 2008, and engaged in acts that furthered the financial fraud. Laurini was interviewed by federal agents on several occasions concerning her knowledge and involvement in the fraud and during those interviews she falsely stated that she had not engaged in various acts of deception in furtherance of the fraud. The investigation ultimately resulted in charges against Kenneth Griffin, Brian Campbell, and two others, all of whom have been convicted.
The sentencing is the culmination of an investigation by the Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Eight Members of Mexican Drug Trafficking Organization Operating in Atlanta Sentenced to Federal PrisonRead the Press Release
ATLANTA, GA – Eight drug traffickers have been sentenced to federal prison for conspiracy to possess with the intent to distribute methamphetamine.
“These defendants thought that their drug trafficking operations would go unnoticed in Clayton County neighborhoods,” said United States Attorney Sally Quillian Yates. “They were wrong. Due to the outstanding efforts of DEA agents and their local law enforcement partners, these traffickers are off our streets and headed to federal prison.”
“The success of this investigation is a tribute to the strong local, state, and federal partnerships that demonstrate our combined impact on targeting and dismantling those methamphetamine trafficking organizations that peddle poison to our neighborhoods,” said John S. Comer, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division.
According to United States Attorney Yates, the charges and other information presented in court: In or about 2012, Candido Ortuno Alvear, who was on parole in Texas for a cocaine trafficking offense, moved to the Atlanta, Ga. area to set up a methamphetamine manufacturing and distribution organization. Alvear recruited his then 19-year-old son, Victor Ortuno-Penaloza, brother-in-law Vicente Arana Galvan, cousin Tomas Sanchez Juarez, and associate Pablo Maldonado Penalosa to carry out the day-to-day operations of the organization. The organization rented several “stash houses” in Clayton County, Ga., which were used to manufacture, store, package, and distribute large quantities of methamphetamine, including homes on Needle Drive in Forest Park, Ga., and on Maple Avenue in Morrow, Ga. Alonso Alfonso Rivera, who resided in a home on Brian Court in Forest Park, served as a methamphetamine distributor for the organization.
On January 18, 2013, agents observed Maldonado Penalosa meet with Robert Dale Penland at the Maple Avenue residence in Morrow, to provide Penland with a quantity of methamphetamine. After Penland departed the residence, law enforcement conducted a traffic stop of Penland on Interstate 75 in Henry County, Ga., and located approximately 10 pounds of “ice” methamphetamine under the back passenger seat. Penland was traveling in the vehicle with his wife and ten-month-old grandson, who had in fact accompanied Penland into the garage of the Maple Avenue residence earlier that day.
Several days later, on January 22, 2013, Maldonado provided Octavio Cruz Albar with a quantity of methamphetamine outside of the Maple Avenue residence. Law enforcement conducted a traffic stop of Albar, who was traveling in a taxi, and located approximately two pounds of “ice” methamphetamine inside a shoebox where Albar had been seated. The investigation revealed that Juarez had manufactured the seized “ice” methamphetamine in the Needle Drive residence in Forest Park, in coordination with Alvear, Ortuno-Penaloza, and Galvan.
Later that evening, agents executed federal search warrants at the Maple Avenue and Needle Drive residences, and located methamphetamine and methamphetamine processing materials inside both houses. Agents also executed a search warrant at Rivera’s Brian Court residence, in Forest Park arrested Rivera, and located a 9mm Beretta 92FS handgun under a couch cushion. Agents arrested Juarez and Ortuno-Penaloza in a nearby motel and Galvan, Alvear, and Maldonado in a residence on Kennesaw Drive in Forest Park.
- Candido Ortuno Alvear, 40, of Forest Park, Ga., was sentenced to 21 years and ten months in prison, to be followed by five years of supervised release.
- Victor Ortuno-Penaloza, 21, of Forest Park, Ga., was sentenced to nine years and eight months in prison, to be followed by five years of supervised release.
- Vicente Arana Galvan, 44, of Morrow, Ga., was sentenced to ten years and eight months in prison, to be followed by five years of supervised release.
- Tomas Sanchez Juarez, 27, of Forest Park, Ga., was sentenced to twelve years and seven months in prison, to be followed by five years of supervised release.
- Pablo Maldonado Penalosa, 30, of Forest Park, Ga., was sentenced to nine years in prison to be followed by three years of supervised release.
- Octavio Cruz Albar, 29, of Atlanta, Ga., was sentenced to six years and six months in prison to be followed by three years of supervised release.
- Robert Dale Penland, 55, of Asheville, NC., was sentenced to eight years and five months in prison, to be followed by five years of supervised release.
- Alonso Alfonso Rivera, 31, of Forest Park, Ga., was sentenced to ten years in prison, to be followed by five years of supervised release. In addition to the methamphetamine conspiracy charge, Rivera was sentenced on the charge of possession of a firearm by an alien illegally and unlawfully in the United States.
All defendants were convicted of the above charges upon their pleas of guilty last year. They were sentenced by United States District Judge Amy Totenberg.
This case was investigated by DEA Special Agents and Task Force Officers with valuable assistance provided by the Bureau of Alcohol Tobacco and Firearms, Internal Revenue Service, Federal Bureau of Investigation, Georgia Bureau of Investigation, MCS (Marietta Cobb Smyrna) Narcotics Unit, Flint Circuit Drug Task Force, Georgia State Patrol, Clayton County Sheriff’s Office, Henry County Sheriff’s Office, and Henry County Police Department.
Assistant United States Attorney Michael Herskowitz prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney's Public Information Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Downtown Sioux City Developer Pleads Guilty to Violation of Clean Air ActRead the Press Release
A man who purchased the old YMCA building in 2009, learned it contained asbestos, and knowingly mishandled the asbestos during the demolition and renovation of the building pled guilty on December 17, 2014, in federal court in Sioux City.
Larry Wolf, age 54 from Dakota City, Nebraska, was convicted of one count of violating the work practice standards of the Clean Air Act by failing to thoroughly inspect the old YMCA (which he knew contained some asbestos) to ascertain the amount of asbestos, and whether that amount was sufficient to subject the demolition project to regulation.
At the plea hearing, Wolf admitted he learned the building contained asbestos and regulated asbestos-containing material when he, within six months of his purchase of the building in the summer of 2009, was told the building contained asbestos and regulated asbestos-containing material by the building's former custodian (who actually showed Wolf around the building while telling him about the asbestos). Wolf also admitted that on or about September 21, 2010, representatives of an environmental remediation and demolition firm provided him with an asbestos abatement estimate of $171, 792.00 for asbestos removal and related activities.
Wolf also admitted that despite knowing the old YMCA contained asbestos and regulated asbestos-containing material, from about July 1, 2009, until about March 31, 2011, Wolf himself, and others at his direction, violated the Clean Air Act Work-Practice Standards by demolishing, renovating, removing, disposing of and/or disturbing asbestos and regulated asbestos-containing material from the old YMCA. For example, during the above-referenced time period, defendant Larry Wolf sold copper, brass, aluminum, and other metals from the old YMCA after he had removed regulated asbestos-containing material wrappings from the metals. Defendant Larry Wolf boasted he made $80,000.00 or more from the old YMCA this way.
In addition Wolf admitted that in the summer of 2010, when asked by one of his employees if the building was safe to work in, he said the building had been abated for asbestos, when he knew it had not been abated for asbestos.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Wolf remains free on bond previously set; pending sentencing. Wolf faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to 3 years of supervised release following any imprisonment.
The case was investigated by the United States Environmental Protection Agency and the Iowa Department of Natural Resources and is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4055.District Man Sentenced to 16 Years in Prison for Shooting That Seriously Wounded Eight-Year-Old GirlGunfire Followed Attempted Robbery in Middle of Afternoon at Southeast Washington Apartment BuildingRead the Press Release
WASHINGTON – Karie Brown, 20, of Washington, D.C., was sentenced today to 16 years in prison for a shooting outside an apartment building in Southeast Washington that seriously wounded an eight-year-old girl, U.S. Attorney Ronald C. Machen Jr. announced.
Brown pled guilty in October 2014, in the Superior Court of the District of Columbia, to charges of aggravated assault while armed; assault with intent to rob while armed, and unlawful possession of a firearm by a convicted felon. The plea, which was contingent upon the Court’s approval, called for a sentence of 14 ½ to 21 ½ years in prison. The Honorable Rhonda Reid Winston accepted the plea and sentenced Brown today. Upon completion of his prison term, Brown will be placed on five years of supervised release.
A co-defendant, Nathaniel Patten, 22, also of Washington, D.C., pled guilty in November 2014 to charges of assault with intent to commit robbery while armed and unlawful possession of a firearm by a convicted felon. He is to be sentenced March 5, 2015.
“An innocent eight-year-old girl, playing in the snow on a day off from school, was struck by a bullet of a man trying to rob a marijuana dealer,” said U.S. Attorney Machen. “She was nearly killed by the reckless actions of violent men with no regard for the safety of others. We only hope that this sentence brings some comfort and closure to this little girl, her family, and our community.”
According to the government’s evidence, Brown and Patten decided on the afternoon of Friday, Feb. 14, 2014 to rob an individual they believed sold marijuana. Brown and Patten were armed with a .22-caliber Ruger semi-automatic pistol, which Brown was carrying. The men headed to the 1200 block of Valley Avenue SE, an area they knew that the individual had frequented.
Brown and Patten pretended to be waiting to gain access to a locked apartment building on the block. The eight-year-old girl – who was going outside to play in the snow - held the door open for them. Brown and Patten then followed the individual who they were targeting into the building as he went upstairs. They then attempted to rob him and gain access to an apartment that he was about to enter. The individual escaped and ran downstairs. Brown shot once at the individual while inside the building and then fired multiple shots at him outside.
The shots missed the individual, but hit the girl in the torso.
The bullet that hit the child struck inches from her heart. It caused severe bleeding, and she was rushed to an emergency room and placed in critical care. She required immediate surgery and could have died but for the timely intervention of medical assistance.
According to the government’s evidence, Brown and Patten fled together, not stopping to provide any assistance to their young victim, and Brown discarded the firearm, which was found by the Metropolitan Police Department (MPD). The defendants were both found and arrested soon after the shooting in the 3500 block of Wheeler Road SE. After his arrest, Brown gave an interview to law enforcement and admitted that he had attempted to rob the individual and that he shot at that person outside the building.
The firearms charge stemmed from the fact that Brown had previously been convicted of a charge of conspiracy to commit robbery, in an unrelated case.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Muyiwa Bamiduro; Paralegal Specialist Theresa Nelson; Victim/Witness Advocate Jennifer Clark, and Victim/Witness Security Specialist Tanya Via. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Tejpal S. Chawla and Kendra Briggs, who investigated and prosecuted the case.
14-278District Heights Woman Pleads Guilty in Scheme to use Counterfeit Checks to Buy Store Merchandise and Gift CardsRead the Press Release
Conspirators Presented Over 1,400 Counterfeit Checks to Target Stores in Over Two Years, Resulting in a Loss of at Least $485,000
Greenbelt, Maryland – Ebony Nicole Ruffin, age 28, of District Heights, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud Target Corporation.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to her plea, from September 2011 to November 2013, Ruffin, Nichelle Rogers, Sheree Brown and others conspired to use counterfeit personal checks and false identifications to fraudulently obtain Visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina. Ruffin and her co-conspirators presented over 1,400 counterfeit checks at Target stores as payments for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.
Ruffin used the Visa gift cards to buy items from Target for herself, and to buy merchandise from other retailers, such as Nordstrom, and later returning the merchandise for cash.
Ruffin faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Deborah K. Chasanow scheduled her sentencing for March 23, 2015, at 3:00 p.m.
Sheree Lanet Brown, age 35, and Nichelle Nicole Rogers, age 28, both of Washington, D.C., previously pleaded guilty to their participation in the scheme and are scheduled to be sentenced on April 24 and March 23, 2015, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Thomas P. Windom, who are prosecuting the case.
Department of Justice Takes Legal Action to Address Pattern and Practice of Excessive Force and Violence at NYC Jails on Rikers Island that Violates the Constitutional Rights of Young Male InmatesRead the Press Release
Attorney General Eric Holder, Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division and U.S. Attorney Preet Bharara for the Southern District of New York announced today that the United States has taken legal action to ensure that critically important reforms are put in place to address conduct at Rikers Island that has violated the constitutional rights of New York City’s youngest inmates, who are between the ages of 16 and 18 (“young inmates”). Specifically, the Department of Justice has filed a motion seeking the court’s permission to join and become a plaintiff in a pending class action lawsuit against New York City, Nunez v. City of New York (the “Nunez Action”), which alleges that the Department of Correction (“DOC”) has engaged in a pattern and practice of using unnecessary and excessive force against inmates. The department has taken this legal step as part of its ongoing effort to ensure that DOC implements all needed institutional reforms promptly, and that these reforms are lasting, verifiable and enforceable through the judicial process.
"With this filing, the Department of Justice is taking an important step to ensure the safety and constitutional rights of young people incarcerated at Rikers Island," said Attorney General Holder. "We've seen alarming evidence of unnecessary and excessive use of force against juveniles, as well as a systemic failure to protect them from violence and deeply troubling -- and potentially scarring -- use of solitary confinement. This action allows the Justice Department to seek necessary reforms to remedy these unlawful conditions, to ensure fair treatment, and to provide all incarcerated young people with the protections, and opportunities to build better futures, that they deserve."
“Today we are taking legal action to ensure that critically important reforms are put in place to address the culture of violence and overuse of punitive segregation at Rikers Island that has violated the constitutional rights of New York City’s youngest inmates,” said Acting Assistant Attorney General Gupta. “We stand ready to work with the city to remedy these deeply disturbing conditions for the safety of confined youth, remedies that will ultimately also promote public safety and the safety of correctional officers.”
“Sometimes it’s the case that bureaucracy can get in the way of reform-minded thinking and comprehensive cultural change,” said U.S. Attorney Bharara. “We hope that won’t be the case here. We welcome the aspirations articulated by Commissioner Ponte but we hope those aspirations will find concrete expression in the form of permanent, enforceable, and verifiable terms in a court-approved settlement agreement. The devil, as they say, is in the details and we have come to the conclusion that joining the pending case as a formal party is the best and most efficient way to get those details done. That is why we are now taking the steps necessary to carry out our responsibility under the law. Given the longstanding sad state of affairs at Rikers Island, our impatience is more than understandable. As I’ve said before, one way or another, we will get enduring and enforceable reform at Rikers Island.”
On August 4, 2014, the department issued a report that concluded that “a deep-seated culture of violence is pervasive throughout the adolescent facilities at Rikers, and DOC staff routinely use force not as a last resort, but instead as a means to control the adolescent population and punish disorderly or disrespectful behavior.” The report urged the city to adopt and implement over 70 specific remedial measures. Although DOC’s new leadership has taken some positive steps in response to the report with respect to the 16 and 17-year old population, including reducing the inmate-to-staff ratio, developing new programming, and moving towards eliminating the use of punitive segregation, much more needs to be done.
The department’s proposed 36-page complaint-in-intervention (“complaint”), filed today along with a motion to intervene in the Nunez action, alleges that the city has engaged in a pattern and practice of violating the constitutional rights of young inmates, and that the city’s deliberate indifference to these constitutional rights has caused these inmates serious physical, psychological, and emotional harm. Like the August 4, 2014, report, the complaint focuses on use of force by staff, inmate-on-inmate violence, and the use of punitive segregation.
Specifically, the complaint alleges:
-
Staff use force against young inmates with alarming frequency.In Fiscal Year 2014, there were 553 reported staff use of force incidents involving young inmates at the Robert D.Davoren Center (“RNDC”) and the Eric M.Taylor Center (“EMTC”), the two facilities that housed most young inmates.These incidents resulted in 1,088 injuries.
-
Inmate-on-inmate fights and assaults are pervasive in large part because inmates are inadequately supervised by inexperienced and poorly trained officers.In Fiscal Year 2014, there were 657 reported inmate-on-inmate fights involving young inmates at RNDC and EMTC.
-
Staff use of force and inmate-on-inmate fights and assaults have resulted in an alarming number of serious injuries to young inmates, including broken jaws, broken orbital bones, broken noses, long bone fractures, and lacerations requiring stitches.
-
Staff frequently punch, strike, or kick young inmates in the head or facial area.
-
Force is used as a means to punish young inmates, and staff unnecessarily continue to use force against inmates who already have been restrained.
-
Force is used in response to inmate verbal taunts and insults.
-
Specialized response teams, including probe and cell extraction teams, use excessive force.
-
Staff regularly tell inmates to “stop resisting,” even though the inmate has been completely subdued, to justify the use of force.
-
Use of excessive force is common in areas outside video surveillance coverage.DOC recently transferred many 18-year old inmates to housing units that have no video surveillance at all.
The complaint further alleges that, notwithstanding a long and troubled history of pervasive use of force against inmates at Rikers, the city has for years failed to address systemic deficiencies, including:
-
Failure to ensure that use of force is accurately reported, and allowing a powerful code of silence to persist.
-
Failure to conduct thorough and comprehensive investigations into use of force incidents.
-
Failure to appropriately discipline staff for using excessive and unnecessary force.
-
Failure to ensure that inmates are adequately supervised.
-
Failure to implement an adequate age-appropriate classification system.
-
Failure to provide staff with effective training on the proper use of force and how to appropriately manage youth.
In addition, the complaint asserts that the city has engaged in a pattern and practice of placing young inmates in punitive segregation at an alarming rate and for excessive periods of time.
Since issuing its report in August, the U.S. Attorney’s Office has had several meetings with the city’s Law Department regarding the U.S. Attorney’s Office proposed remedial measures. Some of these discussions have included attorneys representing the Nunez plaintiffs, who have been engaging in settlement discussions with the city for several months. However, thus far, although there has been some constructive dialogue, the city has been unwilling to commit to an enforceable agreement including the type of reforms and oversight that are necessary to fully address the long-standing problems at Rikers and safeguard the constitutional rights of inmates.
U.S. Attorney Bharara thanked the Board of Correction for its continuing assistance in connection with this matter.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Emily E. Daughtry are in charge of the case.
-
Department of Justice Takes Legal Action to Address Pattern and Practice of Excessive Force and Violence at Rikers Island Jails That Violates the Constitutional Rights of Young Male InmatesRead the Press Release
Eric Holder, the Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York, and Vanita Gupta, the Acting Assistant Attorney General for Civil Rights for the Department of Justice, announced today that the United States has taken legal action to ensure that critically important reforms are put in place to address conduct at Rikers Island that has violated the constitutional rights of New York City’s youngest inmates, who are between the ages of 16 and 18 (“Young Inmates”). Specifically, the Department of Justice has filed a motion seeking the Court’s permission to join and become a plaintiff in a pending class action lawsuit against New York City, Nunez v. City of New York (the “Nunez Action”), which alleges that the Department of Correction (“DOC”) has engaged in a pattern and practice of using unnecessary and excessive force against inmates. The Department has taken this legal step as part of its ongoing effort to ensure that DOC implements all needed institutional reforms promptly, and that these reforms are lasting, verifiable, and enforceable through the judicial process.
Attorney General Eric Holder said: “With this filing, the Department of Justice is taking an important step to ensure the safety and constitutional rights of young people incarcerated at Rikers Island. We’ve seen alarming evidence of unnecessary and excessive use of force against juveniles, as well as a systemic failure to protect them from violence and deeply troubling -- and potentially scarring -- use of solitary confinement. This action allows the Justice Department to seek necessary reforms to remedy these unlawful conditions, to ensure fair treatment, and to provide all incarcerated young people with the protections, and opportunities to build better futures, that they deserve.”
Manhattan U.S. Attorney Preet Bharara said: “Sometimes it’s the case that bureaucracy can get in the way of reform-minded thinking and comprehensive cultural change. We hope that won’t be the case here. We welcome the aspirations articulated by Commissioner Ponte but we hope those aspirations will find concrete expression in the form of permanent, enforceable, and verifiable terms in a court-approved settlement agreement. The devil, as they say, is in the details and we have come to the conclusion that joining the pending case as a formal party is the best and most efficient way to get those details done. That is why we are now taking the steps necessary to carry out our responsibility under the law. Given the longstanding sad state of affairs at Rikers Island, our impatience is more than understandable. As I’ve said before, one way or another, we will get enduring and enforceable reform at Rikers Island.”
Acting Assistant Attorney General Vanita Gupta said: “Today we are taking legal action to ensure that critically important reforms are put in place to address the culture of violence and overuse of punitive segregation at Rikers Island that has violated the constitutional rights of New York City’s youngest inmates. We stand ready to work with the City to remedy these deeply disturbing conditions for the safety of confined youth, remedies that will ultimately also promote public safety and the safety of correctional officers.”
On August 4, 2014, the Department issued a report that concluded that “a deep-seated culture of violence is pervasive throughout the adolescent facilities at Rikers, and DOC staff routinely use force not as a last resort, but instead as a means to control the adolescent population and punish disorderly or disrespectful behavior.” The report urged the City to adopt and implement over 70 specific remedial measures. Although DOC’s new leadership has taken some positive steps in response to the report with respect to the 16- and 17-year-old population, including reducing the inmate-to-staff ratio, developing new programming, and moving toward eliminating the use of punitive segregation, much more needs to be done.
The Department’s proposed 36-page Complaint-in-Intervention (“Complaint”), filed today along with a motion to intervene in the Nunez Action, alleges that the City has engaged in a pattern and practice of violating the constitutional rights of Young Inmates, and that the City’s deliberate indifference to these constitutional rights has caused these inmates serious physical, psychological, and emotional harm. Like the August 4, 2014, report, the Complaint focuses on use of force by staff, inmate-on-inmate violence, and the use of punitive segregation.
Specifically, the Complaint alleges:
- Staff use force against Young Inmates with alarming frequency. In Fiscal Year 2014, there were 553 reported staff use of force incidents involving Young Inmates at the Robert D. Davoren Center (“RNDC”) and the Eric M. Taylor Center (“EMTC”), the two facilities that housed most Young Inmates. These incidents resulted in 1,088 injuries.
- Inmate-on-inmate fights and assaults are pervasive in large part because inmates are inadequately supervised by inexperienced and poorly trained officers. In Fiscal Year 2014, there were 657 reported inmate-on-inmate fights involving Young Inmates at RNDC and EMTC.
- Staff use of force and inmate-on-inmate fights and assaults have resulted in an alarming number of serious injuries to Young Inmates, including broken jaws, broken orbital bones, broken noses, long bone fractures, and lacerations requiring stitches.
- Staff frequently punch, strike, or kick Young Inmates in the head or facial area.
- Force is used as a means to punish Young Inmates, and staff unnecessarily continue to use force against inmates who already have been restrained.
- Force is used in response to inmate verbal taunts and insults.
- Specialized response teams, including probe and cell extraction teams, use excessive force.
- Staff regularly tell inmates to “stop resisting,” even though the inmate has been completely subdued, to justify the use of force.
- Use of excessive force is common in areas outside video surveillance coverage. DOC recently transferred many 18-year-old inmates to housing units that have no video surveillance at all.
The Complaint further alleges that, notwithstanding a long and troubled history of pervasive use of force against inmates at Rikers, the City has for years failed to address systemic deficiencies, including:
- Failure to ensure that use of force is accurately reported, and allowing a powerful code of silence to persist.
- Failure to conduct thorough and comprehensive investigations into use of force incidents.
- Failure to appropriately discipline staff for using excessive and unnecessary force.
- Failure to ensure that inmates are adequately supervised.
- Failure to implement an adequate age-appropriate classification system.
- Failure to provide staff with effective training on the proper use of force and how to appropriately manage youth.
In addition, the Complaint asserts that the City has engaged in a pattern and practice of placing Young Inmates in punitive segregation at an alarming rate and for excessive periods of time.
Since issuing its report in August, the U.S. Attorney’s Office has had several meetings with the City’s Law Department regarding the U.S. Attorney’s Office’s proposed remedial measures. Some of these discussions have included attorneys representing the Nunez plaintiffs, who have been engaging in settlement discussions with the City for several months. However, thus far, although there has been some constructive dialogue, the City has been unwilling to commit to an enforceable agreement including the type of reforms and oversight that are necessary to fully address the long-standing problems at Rikers and safeguard the constitutional rights of inmates.
Mr. Bharara thanked the Board of Correction for its continuing assistance in connection with this matter.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Emily E. Daughtry are in charge of the case.
Nunez v. City of NY, et al. U.S. Motion to Intervene Notice of Motion
Nunez v. City of NY, et al. US Motion to Intervene Memorandum of Law
Nunez v. City of NY, et al. US Complaint-In-Intervention
Nunez v. City of NY, et al. U.S. Complaint-in-Intervention Exhibit ADanbury Man Sentenced to More Than 10 Years in Federal Prison for Trafficking Oxycodone and CocaineRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DEMETRIOS PAPADAKOS, also known as “Jimmy,” 67, of Danbury, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 121 months of imprisonment, followed by four years of supervised release, for heading a Fairfield County narcotics trafficking ring.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County. Sixteen individuals were charged and convicted as a result of this investigation.
According to court documents and statements made in court, PAPADAKOS and Alfred Catino, also of Danbury, were long-time associates who headed the narcotics trafficking ring. The investigation revealed that PAPADAKOS facilitated the purchase and distribution of more than 6,800 oxycodone 30mg pills and more than a kilogram of cocaine. PAPADAKOS traveled to Florida to purchase wholesale quantities of oxycodone and traveled to New York to acquire oxycodone and cocaine, received prescriptions for oxycodone from a corrupt doctor to whom he had loaned a large sum of money, and obtained oxycodone from a co-defendant who had obtained pills from people with legitimate prescriptions in exchange for cash.
PAPADAKOS has been detained since arrest on May 8, 2012. On June 23, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine, oxycodone and marijuana.
PAPADAKOS’ criminal history spans approximately 40 years and includes six federal felony convictions, one state felony conviction and multiple misdemeanor convictions, most of which are related to drug trafficking.
Catino has pleaded guilty and awaits sentencing.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Criminal Charges Filed Against U.S. Citizen in Connection with a Multi-Million Dollar International Cyber Counterfeiting Scheme Based in UgandaRead the Press Release
U.S. Attorney David J. Hickton for the Western District of Pennsylvania and U.S. Secret Service Special Agent in Charge Eric P. Zahren of the Pittsburgh Field Office today announced the filing of a criminal complaint in Pittsburgh charging a U.S. citizen with leading an international counterfeit currency operation headquartered in the Republic of Uganda.
Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 27, a U.S. citizen currently residing in Kampala, Uganda, was charged with conspiracy and counterfeiting acts committed outside of the U.S. When he lived in the United States, he mainly resided in Texas and Colorado.
“This complicated, international cyber counterfeiting conspiracy was broken as a result of expert investigation by the Secret Service and a total commitment of all cooperating law enforcement to reject the premise that criminals committing cybercrimes in the U.S. – but who reside outside our borders – cannot be reached,” stated U.S. Attorney Hickton. “We will hold cyber criminals accountable and bring them to justice no matter where they reside.”
“This investigation involves the manufacture of counterfeit U.S. currency, which has been the Secret Service’s core mission since 1865,” said Special Agent in Charge Zahren. “Add to that the modern elements of an international counterfeiting conspiracy utilizing new-age, cyber technology, and it represents the full evolution and unique investigative capabilities of today’s Secret Service.”
As detailed in the affidavit in support of the criminal complaint, in December 2013, the Secret Service began investigating the passing of counterfeit Federal Reserve Notes (FRNs), believed to be manufactured in Uganda, at Pittsburgh-area retail stores and businesses. Agents determined that an individual identified as J.G. had passed these notes and was renting a postal box at The UPS Store on Pittsburgh’s South Side. On Feb 19, 2014, law enforcement learned that J.G. received three packages addressed from Beyond Computers, located in Kampala, Uganda. Agents executing a search warrant on the packages found $7,000 in counterfeit $100, $50 and $20 FRNs located in two hidden compartments within the packaging envelopes. A fingerprint on a document inside one of the packages was identified as belonging to Ryan Andrew Gustafson.
The Secret Service subsequently worked with Ugandan authorities to identify the source of the counterfeit FRNs. Their efforts led to A.B., who admitted to sending the packages, explaining that an American named “Jack Farrel,” and another person, provided him the counterfeit notes to ship. Based on information provided by A.B., the Secret Service used facial recognition to identify Jack Farrel as Ryan Andrew Gustafson.
According to the affidavit, J.G. met “Willy Clock” on an online criminal forum called Tor Carding Forum. Through private messaging, J.G. and Clock discussed counterfeit currency and J.G. agreed to purchase counterfeit FRNs.
In January 2014, Clock told J.G. that he had established his own online forum called Community-X, a website dedicated to the selling of counterfeit reserve notes. The forum requires a username and password to access the site, and individuals must be invited and approved by Clock to become members. Secret Service used an undercover operative to communicate with Clock through the website, to purchase additional counterfeit $100 FRNs, and to become a re-shipper of counterfeit notes.
In November 2014, the Secret Service executed a search warrant at the residence of another re-shipper, who had been an active member of Community-X. This person cooperated and provided information that a forum member had traveled to Uganda and brought back more than $300,000 in counterfeit notes.
The Secret Service, working with Ugandan authorities, engaged yet another confidential informant, in Uganda, who had knowledge of Jack Farrel and his counterfeiting operations. On Dec. 11 2014, this confidential informant called Farrel to arrange to purchase counterfeit FRNs. The informant met Farrel’s associate and made the buy. Two trusted sources followed the associate back to Farrel’s home and reported the location to the Secret Service who turned it over to the Uganda Special Investigations Unit. Their search of Farrel’s residence netted two million Ugandan shillings from the buy; $180,420 in counterfeit FRNs; counterfeit Euros, Indian Rupees, Ugandan Shillings, Congo Francs, and Ghana Cedis; computers and printers; inks and ink jet cartridges; paper cutters; glue sticks; “Give a Child Hope Today” pamphlets with counterfeit FRNs in between glued together pages; and a pair of “Anon Hands.” Anon Hands are life-like rubber molds that fit like gloves over the user’s hands and are meant to conceal the wearer’s fingerprints. As noted above Farrel has been identified as Gustafson. Evidence collected at the scene also allowed investigators to identify Gustafson as Willy Clock.
Gustafson was charged by Ugandan authorities on Dec. 16 with conspiracy, possession of counterfeit, selling/dealing in counterfeit, and unlawful possession of ammunition. He was brought before the court that day to be informed about the charges; he also is being represented by counsel in Uganda.
U.S. Secret Service estimates $1.8 million in counterfeit FRNs have been seized and passed in Uganda. The total amount of Ugandan-made counterfeit FRNs seized or passed domestically was approximately $270,000. This amount was limited due to early detection by the Secret Service.
U.S. law provides for a maximum total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the Directorate of Public Prosecution, the Criminal Investigations and Intelligence Department, the Special Investigations and Intelligence Unit, and Stanbic Bank in Uganda; various domestic and foreign Secret Service Field Offices, including the Rome, Italy, Field Office and the Criminal Investigative Division in Washington, D.C.; the U.S. State Department; the U.S. Postal Inspection Service; the Federal Bureau of Investigation; Homeland Security Investigations; U.S. Customs and Border Protection and the National Cyber-Forensics & Training Alliance.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
A criminal complaint contains charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Criminal Charges Filed Against U.S. Citizen in Connection with A Multi-Million Dollar International Cyber Counterfeiting Scheme Based in UgandaRead the Press Release
PITTSBURGH – U.S. Attorney for the Western District of Pennsylvania David J. Hickton and U.S. Secret Service Special Agent in Charge Eric P. Zahren today announced the filing of a criminal complaint in Pittsburgh charging a U.S. citizen with leading an international counterfeit currency operation headquartered in the Republic of Uganda.
Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 27, a U.S. citizen currently residing in Kampala, Uganda, was charged with conspiracy and counterfeiting acts committed outside of the U.S. When he lived in the United States, he mainly resided in Texas and Colorado.
“This complicated, international cyber counterfeiting conspiracy was broken as a result of expert investigation by the Secret Service and a total commitment of all cooperating law enforcement to reject the premise that criminals committing cybercrimes in the U.S. – but who reside outside our borders – cannot be reached,” stated U.S. Attorney Hickton. “We will hold cyber criminals accountable and bring them to justice no matter where they reside.”
“This investigation involves the manufacture of counterfeit U.S. currency, which has been the Secret Service’s core mission since 1865,” said Special Agent in Charge Zahren of the Pittsburgh Field Office. “Add to that the modern elements of an international counterfeiting conspiracy utilizing new-age, cyber technology, and it represents the full evolution and unique investigative capabilities of today’s Secret Service.”
As detailed in the affidavit in support of the criminal complaint, in December 2013, the Secret Service began investigating the passing of counterfeit Federal Reserve Notes (FRNs), believed to be manufactured in Uganda, at Pittsburgh-area retail stores and businesses. Agents determined that an individual identified as J.G. had passed these notes and was renting a postal box at The UPS Store on Pittsburgh’s South Side. On Feb 19, 2014, law enforcement learned that J.G. received three packages addressed from Beyond Computers, located in Kampala, Uganda. Agents executing a search warrant on the packages found $7,000 in counterfeit $100, $50 and $20 FRNs located in two hidden compartments within the packaging envelopes. A fingerprint on a document inside one of the packages was identified as belonging to Ryan Andrew Gustafson.
The Secret Service subsequently worked with Ugandan authorities to identify the source of the counterfeit FRNs. Their efforts led to A.B., who admitted to sending the packages, explaining that an American named “Jack Farrel”, and another person, provided him the counterfeit notes to ship. Based on information provided by A.B., the Secret Service used facial recognition to identify Jack Farrel as Ryan Andrew Gustafson.
According to the affidavit, J.G. met “Willy Clock” on an online criminal forum called Tor Carding Forum. Through private messaging, J.G. and Clock discussed counterfeit currency and J.G. agreed to purchase counterfeit FRNs.
In January 2014, Clock told J.G. that he had established his own online forum called Community-X, a website dedicated to the selling of counterfeit reserve notes. The forum requires a username and password to access the site, and individuals must be invited and approved by Clock to become members. Secret Service used an undercover operative to communicate with Clock through the website, to purchase additional counterfeit $100 FRNs, and to become a re-shipper of counterfeit notes.
In November 2014, the Secret Service executed a search warrant at the residence of another re-shipper, who had been an active member of Community-X. This person cooperated and provided information that a forum member had traveled to Uganda and brought back more than $300,000 in counterfeit notes.
The Secret Service, working with Ugandan authorities, engaged yet another confidential informant, in Uganda, who had knowledge of Jack Farrel and his counterfeiting operations. On Dec. 11 2014, this confidential informant called Farrel to arrange to purchase counterfeit FRNs. The informant met Farrel’s associate and made the buy. Two trusted sources followed the associate back to Farrel’s home and reported the location to the Secret Service who turned it over to the Uganda Special Investigations Unit. Their search of Farrel’s residence netted two million Ugandan shillings from the buy; $180,420 in counterfeit FRNs; counterfeit Euros, Indian Rupees, Ugandan Shillings, Congo Francs, and Ghana Cedis; computers and printers; inks and ink jet cartridges; paper cutters; glue sticks; “Give a Child Hope Today” pamphlets with counterfeit FRNs in between glued together pages; and a pair of “Anon Hands”. Anon Hands are life-like rubber molds that fit like gloves over the user’s hands and are meant to conceal the wearer’s fingerprints. As noted above Farrel has been identified as Gustafson. Evidence collected at the scene also allowed investigators to identify Gustafson as Willy Clock.
Gustafson was charged by Ugandan authorities on Dec. 16 with conspiracy, possession of counterfeit, selling/dealing in counterfeit, and unlawful possession of ammunition. He was brought before the court that day to be informed about the charges; he also is being represented by counsel in Uganda.
U.S. Secret Service estimates $1.8 million in counterfeit FRNs have been seized and passed in Uganda. The total amount of Ugandan-made counterfeit FRNs seized or passed domestically was approximately $270,000. This amount was limited due to early detection by the Secret Service.
U.S. law provides for a maximum total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the Directorate of Public Prosecution, the Criminal Investigations and Intelligence Department, the Special Investigations and Intelligence Unit, and Stanbic Bank in Uganda; various domestic and foreign Secret Service Field Offices, including the Rome, Italy, Field Office and the Criminal Investigative Division in Washington, D.C.; the U.S. State Department; the U.S. Postal Inspection Service; the Federal Bureau of Investigation; Homeland Security Investigations; U.S. Customs and Border Protection and the National Cyber-Forensics & Training Alliance.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
A criminal complaint contains charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Collin County Man Sentenced for Sherman Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 47-year-old McKinney, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Elijah El-Jihad pleaded guilty on May 29, 2014 to bank robbery and was sentenced to 96 months in federal prison on Dec. 17, 2014 by U.S. District Judge Marcia Crone.According to information presented in court, on Mar. 31, 2014, El-Jihad entered the Woodforest National Bank located in the Kroger supermarket at 1820 Loy Lake Road in Sherman, Texas, and presented the teller with a note demanding money. El-Jihad fled the bank with approximately $800.00. He was seen entering his vehicle by witnesses after he exited the supermarket. El-Jihad was arrested in McKinney, Texas on Apr. 1, 2014 and admitted to robbing the bank. A federal grand jury returned an indictment on Apr. 9, 2014, charging El-Jihad with bank robbery.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney William R. Tatum.
Chicago Travel Agent Arrested on Federal Fraud Charge for Allegedly Swindling Muslim Pilgrims of Hajj Travel PackagesRead the Press Release
CHICAGO — A Chicago travel agent was arrested today on a federal fraud charge for allegedly cheating at least 50 customers of approximately $525,000 by misrepresenting his ability to sell travel packages for the Hajj that included the visa required to enter Saudi Arabia.
The defendant, RASHID MINHAS, 42, of Chicago, was charged with mail fraud in a criminal complaint that was filed yesterday in U.S. District Court and unsealed this morning following his arrest. He was scheduled to appear at 1:30 p.m. today before U.S. Magistrate Judge Sheila Finnegan in Federal Court.
Minhas was arrested without incident by FBI agents at his residence on the north side of Chicago. Agents also executed a federal search warrant at his business, Light Star Hajj Group, located at 5801 Northwest Hwy., Chicago. Minhas previously operated a travel agency in Chicago called City Travel & Tours.
According to the complaint affidavit, between March and November 2014, Minhas falsely represented that Hajj travel packages for September and October of this year included required Saudi Arabia entry visas. Minhas allegedly knew that Light Star Hajj was not authorized by Saudi Arabia to obtain visas and that he did not intend to obtain the required Hajj visas. He sold travel deals to at least 50 customers and deposited approximately $525,000 he collected into Light Star’s bank accounts, and then commingled those funds with other deposits and used the money to make partial refunds to customers, to transfer funds to Pakistan, and to pay personal expenses, the complaint alleges.
The affidavit describes the Hajj as an annual Islamic pilgrimage to Mecca, Saudi Arabia. The Hajj is a mandatory religious duty for Muslims, and must be carried out at least once in a lifetime by all adult Muslims who are physically and financially capable of undertaking the journey. This year, the Hajj pilgrimage was from Oct. 2-7, and each year, approximately two million pilgrims attend the Hajj.
The complaint states that agents reviewed Light Star’s bank records and determined that approximately $525,000 was deposited this year from the sale of Hajj travel packages. An additional $586,000 was deposited from other sources, including the sale of Umrah travel packages, cash deposits and transfers. Agents determined that approximately $745,000 was spent on expenditures that were not related to Hajj travel packages, including $159,000 in checks to cash, $339,000 in transfers to individuals in Pakistan, approximately $49,000 in checks to Minhas’ former wife, and other expenses.
The arrest and charges were 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.
Mail fraud carries a maximum sentence of 20 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorneys Kenneth E. Yeadon and Kathryn Malizia.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Chattanooga Man Sentenced to 200 Months for Possession of A Firearm by A FelonRead the Press Release
CHATTANOOGA, Tenn.-- Terrell Buford, 27, of Chattanooga, Tenn., was sentenced to serve 200 months in prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Upon his release from prison Buford will be subject to supervised release by the U.S. Probation Office for three years. There is no parole in the federal system.
In March 2014, law enforcement found Buford in possession of a firearm while executing a narcotics search warrant at his place of business. In May 2014, he pleaded guilty to being a felon in possession of a firearm. Buford’s prior felony charges included multiple counts of aggravated robbery and aggravated burglary, as well as aggravated assault and possession of cocaine for resale.
Law enforcement agencies participating in the investigation included the Rhea County Sheriff’s Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Meredith J. Edwards represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Centralia Man Indicted on Federal Charges for Burglarizing Gun DealerRead the Press Release
Follow @SDILNewsA Centralia resident charged by criminal complaint on December 3, 2014, was indicted by a federal grand jury on Tuesday, December 16, 2014, for burglarizing a Federal Firearms Licensee (FFL), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dakota R. Moss, 19, faces four felony charges for his role in burglarizing the Buchheit of Centralia Farm and Home Supply Store and stealing thirty nine (39) guns. The charges against Moss in the indictment are the same as those originally brought in the criminal complaint. Moss’ accomplice was not identified because that person is a juvenile under federal law.
The complaint affidavit previously filed in the district court stated that on November 29, 2014, the Buchheit of Centralia Farm and Home Supply Store was burglarized and thirty nine (39) firearms were stolen, along with at least one thousand rounds of ammunition. The burglary was accomplished using a full size pickup truck, which was stolen from the Centralia, Illinois High School. The suspects utilized the stolen truck to ram the locked security gate to make entry onto Buchheit’s parking lot, where the suspects then broke out store windows to make entry into the store. The surveillance video established that the initial burglary occurred at approximately 2:40 am. However, the video evidence revealed that the two suspects left the scene and returned to steal additional firearms and ammunition on two occasions - thereby making a total of three separate entries into the FFL between 2:40 am and 4:00 am.
The complaint affidavit said that Moss and his juvenile accomplice were armed while inside of Buchheit’s and intended to shoot anyone who interrupted the burglary – including police. The complaint alleged that Moss and his accomplice stole the firearms in order to sell the guns; and that Ferguson, Missouri was among the planned potential destinations for the weapons. The affidavit also states that the two planned on participating in the looting of businesses in the Ferguson, Missouri area, however the plan did not materialize.
Centralia Police and agents from the ATF identified the suspects soon after the burglary and have recovered 37 of the 39 stolen guns as of this date. Anyone with knowledge of the remaining stolen firearms or the ammunition is encouraged to call law enforcement.
US Attorney Stephen R. Wigginton credited the law enforcement response when he stated, “The ATF and the Centralia police department are to be commended for having already recovered 37 of the stolen firearms. They have kept those guns out of the hands of criminals.” US Attorney Wigginton also praised the cooperation from Clinton County State’s Attorney John Hudspeth noting, “The State’s Attorney has been a valuable partner in this investigation. He personally ensured that these two suspects remained in custody while the federal investigation was ongoing. We look forward to continuing this joint investigation to ensure that everyone who participated in the crime is prosecuted to the fullest extent of the law.”
The indictment charges Moss with stealing firearms from a FFL, possession of stolen firearms, being a felon in possession of firearms, and with carry and use of a firearm during a crime of violence. The first three charges are all punishable by not more than 10 years in federal prison, a $250,000 fine, and not more than 5 years supervised release. Carry and use of a firearm during a crime of violence carries an additional mandatory consecutive sentence of not less than 5 years. However, as in any case, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia Police Department, along with the Clinton County State’s Attorney’s office. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Cedar Rapids Man Charged with Fraud and Identity TheftRead the Press Release
Terry L. Gantt, 28, of Cedar Rapids, Iowa, has been charged with one count of aggravated identity theft and one count of wire fraud. The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.
The Indictment alleges that, between October 2012 and February 2013, Gantt used the identities of other individuals to apply for credit cards without their permission.If convicted on all charges, Gantt faces a mandatory minimum sentence of 2 years’ imprisonment and a possible maximum sentence of 22 years’ imprisonment. He could also be fined up to $500,000, and a term of supervised release could be ordered upon conviction of any of the counts.
Gantt appeared today in federal court in Cedar Rapids and was released on bond. Gantt’s trial is set for the two-week period beginning February 17.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Jacob Schunk and was investigated by the United States Postal Inspection Service and the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 1:14-cr-00142.
Carbondale Resident Sentenced for Crack Cocaine OffenseRead the Press Release
Follow @SDILNewsOn December 16, 2014, Johnathan T. Buck, a/k/a “Buffalo,” 40, of Carbondale, Illinois, was sentenced on a federal crack cocaine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Buck, who had previously pled guilty to a one-count indictment, charging conspiracy to distribute crack cocaine, was sentenced to 120 months in federal prison, to be followed by three years’ supervised release, and fined $200.00. The offense occurred between 2013 and March 2014, in Jackson County. Evidence at the plea and sentencing hearings established that Buck was involved with co-defendant Maurice Christian, a/k/a “Reece,” and others in the distribution of crack cocaine in Carbondale. Buck and his associates were transporting crack cocaine from northern Illinois to Carbondale for distribution. On multiple occasions, Buck sold crack cocaine to a confidential source working for law enforcement. At sentencing, the district court found that Buck was responsible for 638 grams of crack cocaine. Buck’s sentence was enhanced because he possessed a firearm during his participation in the crack cocaine offense. Christian has pled guilty to his role in the conspiracy and is awaiting sentencing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Carbondale Police Department, and Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Carbondale Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsOn December 16, 2014, Travis D. Bailey, 30, was sentenced for a federal firearm violation, United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Bailey, who had previously pled guilty to a one-count indictment, charging Unlawful Possession of a Firearm by a Felon, was sentenced to 84 months in prison, to be followed by three years of supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that, on March 7, 2014, Carbondale police officers executed a search warrant at Bailey’s Carbondale residence. In Bailey’s backpack, officers located approximately three pounds of marihuana and a stolen firearm. At the residence, officers also located additional marihuana, packaged for distribution, along with digital scales, drug packaging materials, and United States currency. At the time of the March 2014 offense, Bailey had three prior felony marihuana convictions and was prohibited from possessing firearms.
The investigation was conducted by the Carbondale Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Canadian Man Pleads Guilty to Making False StatementsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Christian Dean Reid, 39, a citizen of Canada, pleaded guilty before U.S. District Court Judge Richard J. Arcara to making false statements. The charge carries a maximum sentence of five years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on October 12, 2014, Reid, a native of England, told an officer of the U.S. Customs and Border Protection that he had not previously been arrested, even though the defendant knew this statement was false. Reid was arrested and convicted of a drug trafficking offense which affects his admissibility into the United States.
The plea is the culmination of an investigation on the part of the United States Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
Sentencing is scheduled for March 18, 2014, at 1:00 p.m. before Judge Arcara.
Canadian Man Pleads Guilty to Making False StatementsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Christian Dean Reid, 39, a citizen of Canada, pleaded guilty before U.S. District Court Judge Richard J. Arcara to making false statements. The charge carries a maximum sentence of five years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on October 12, 2014, Reid, a native of England, told an officer of the U.S. Customs and Border Protection that he had not previously been arrested, even though the defendant knew this statement was false. Reid was arrested and convicted of a drug trafficking offense which affects his admissibility into the United States.
The plea is the culmination of an investigation on the part of the United States Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
Sentencing is scheduled for March 18, 2014, at 1:00 p.m. before Judge Arcara.