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6 February 2015
Lehigh Acres Woman Convicted of Drug ConspiracyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Deena Williams (40, Lehigh Acres) guilty of conspiracy to possess with intent to distribute methylone. She faces a maximum penalty of 20 years in federal prison. Her sentencing hearing is scheduled for May 4, 2015.
Williams was indicted on April 30, 2014.
According to evidence presented at trial, on April 21, 2014, U.S. Customs and Border Protection officials at an international mail facility in New York encountered an International Express Mail Service parcel from the People’s Republic of China. After searching the parcel, they determined that it contained methylone. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations agents made a controlled delivery of the package to a Lehigh Acres address, where Williams accepted the package. She subsequently opened the package and removed the drugs. Further investigation revealed that the package belonged to her brother, Titus Lamar Bellot, who was also charged as part of the same conspiracy. His trial is scheduled to begin on February 9, 2015.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Lead Man Indicted for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lead, South Dakota, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Archie Roberts, age 28, was indicted on December 16, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 4, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Roberts possessing two sawed off shotguns, which were not registered to him, on September 30, 2014, in Lead.
The charge is merely an accusation and Roberts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Lead Police Department. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Roberts was released on bond pending trial. A trial date has been set for April 14, 2015.
Investment Advisor Sentenced to 42 Months in Prison for Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger and Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division St. Paul Field Office Shea Jones today announced the sentence of JOEL WILLIAM CARLSON, 43, of Vadnais Heights, MN, to 42 months in prison. CARLSON pleaded guilty on September 10, 2014, to two counts of tax evasion for tax years 2010 and 2011.
According to his guilty plea and documents filed in court, CARLSON acted as an investment advisor during 2010 and 2011. He deposited client investments, as well as additional funds solicited from his father, into a Trust Financial Group (“TFG”) account, that CARLSON treated as his personal bank account. Instead of investing the funds, CARLSON spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to intentionally misappropriating both client assets and his father’s assets, totaling more than $1.5 million, CARLSON failed to file personal income tax returns for tax years 2010 and 2011.
According to his guilty plea, CARLSON also failed to timely file personal income tax returns for tax years 2005 through 2007. As a result, the IRS filed a federal tax lien against CARLSON for approximately $495,000.
In addition to paying restitution of approximately $1.9 million to the investment fraud victims and his father, CARLSON will also pay approximately $1.2 million in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Tracy L. Perzel prosecuted this case.
This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Division.
Defendant Information: JOEL WILLIAM CARLSON
Vadnais Heights, MN
Convicted: • Attempt to Evade and Defeat Tax, 2 counts
Sentenced: • 42 months in prison
• Ordered to pay approximately $3.1 million in restitutionInternational Terrorism Defendant Sentenced in Manhattan to 25 Years in PrisonRead the Press Release
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York announced that Adel Abdel Bary, aka “Adel Mohammed Abdul Almagid Abdel Bary,” aka “Abbas,” aka “Abu Dia,” aka “Adel” (Bary), was sentenced in Manhattan federal court to 25 years in prison for his conviction on international terrorism charges in connection with Bary’s work on behalf of al Qaeda and the Egyptian Islamic Jihad. Bary was extradited to the United States from the United Kingdom on Oct. 6, 2012. On Sept. 19, 2014, Bary pleaded guilty to a three-count superseding Information charging him with one count of conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, one count of making such a threat, and one count of conspiring to kill U.S. nationals. Bary pleaded guilty before U.S. District Judge Lewis A. Kaplan, who also imposed today’s sentence.
“Adel Abdel Bary was a member of the London cell of the Egyptian Islamic Jihad and worked closely with al Qaeda leadership both before and after the bombings of the U.S Embassies in Kenya and Tanzania in 1998 to disseminate al Qaeda threats against U.S. citizens and interests around the world,” said Assistant Attorney General Carlin. “This sentence holds him accountable for his key role in facilitating the delivery of al Qaeda’s message to extremists around the world encouraging the commission of violent acts against the United States and its citizens. I commend all of the people who worked on this case over many years in order to reach this result.”
“Adel Abdel Bary occupied important positions in Egyptian Islamic Jihad and al Qaeda,” said U.S. Attorney Bharara. “As he admitted at his plea last September, he facilitated communications by Osama bin Laden and other al Qaeda leaders, including publication of the 1998 al Qaeda fatwah to kill Americans, and al Qaeda’s claims of responsibility for the 1998 bombings of two American embassies in Africa. The sentence imposed today reflects the seriousness of Bary’s crimes, his role, and his acceptance of responsibility for them.”
According to the indictment based on which Bary was extradited, the superseding information to which he pleaded, other documents filed in Manhattan federal court, and statements made at Bary’s guilty plea and at today’s sentencing:
In 1997 and 1998, Bary led the London, England, cell of the Egyptian Islamic Jihad (EIJ) organization. EIJ, which was led for years by co-defendant Ayman al Zawahiri, was dedicated to the forceful overthrow of the Egyptian Government and to violent opposition of the United States, in part, for its support of the Government in Egypt. By February 1998, EIJ had effectively merged with al Qaeda and EIJ joined with al Qaeda in targeting American civilians. To that end, in February 1998, indicted co-defendant Usama Bin Laden and Zawahiri endorsed a purported fatwah under the banner of the “International Islamic Front for Jihad on the Jews and Crusaders.” This fatwah stated that Muslims should kill Americans – including civilians – anywhere in the world where they can be found. Then again, on Aug. 4, 1998, EIJ published a statement threatening to retaliate against America for its claimed involvement in the apprehension of EIJ members. A copy of this statement was found in an office used by Bary and his London-based co-conspirators.
While in London, Bary pledged his commitment to pursue the goals of EIJ and to follow the orders of the leadership of the group. Many of the leading members of EIJ became influential members of al Qaeda, including Zawahiri and indicted co-defendant Muhammad Atef, both of whom later sat on the majlis al shura (or consultation council) of al Qaeda. Zawahiri is now the declared leader of al Qaeda.
On Aug. 7, 1998, three days after EIJ published its threat to retaliate against America, al Qaeda operatives bombed the United States Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing 224 people. Bary transmitted, via international telephone calls to the media, the contents of al Qaeda’s claims of responsibility for the Aug. 7, 1998, bombings. These claims of responsibility included threats of future terrorist attacks by al Qaeda and its allies, and were sent from London to media organizations in France, Qatar, and the United Arab Emirates on Aug. 8, 1998 – the day after the embassy bombings.
In August 1998, both before and after the bombings, Bary additionally arranged for messages to be transmitted from members of the media to his co-conspirators, including Bin Laden and Zawahiri, and conveyed messages from his co-conspirators, including Bin Laden and Zawahiri, to members of the media. Bary also used an office in London, which he shared with co-conspirators, to store documents, including the claims of responsibility described above, as well as for other conduct related to the conspiracy to murder U.S. nationals.
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In addition to his prison term, Bary, 54, was ordered to pay restitution in the amount of $33,816,561, including $7,516,561 to victims’ family members for loss of income and $26,300,000 to the United States for property loss.
A co-defendant, Khalid al Fawwaz, aka “Khaled Abdul Rahman Hamad al Fawwaz,” aka “Abu Omar,” aka “Hamad” (Fawwaz), is currently on trial before U.S. District Judge Kaplan. The charges against Fawwaz are merely accusations, and Fawwaz is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin and U.S Attorney Bharara praised the outstanding efforts of the FBI’s New York-based Joint Terrorism Task Force – which principally consists of special agents of the Federal Bureau of Investigation and detectives of the New York City Police Department – as well as the outstanding efforts of the United States Marshals Service, Metropolitan Police Department of London (New Scotland Yard) and the Department of Justice’s Office of International Affairs.
This case is being prosecuted by Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin of the Southern District of New York’s Terrorism and International Narcotics Unit.
International Terrorism Defendant Sentenced in Manhattan Federal Court to 25 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that ADEL ABDEL BARY, a/k/a “Adel Mohammed Abdul Almagid Abdel Bary,” a/k/a “Abbas,” a/k/a “Abu Dia,” a/k/a “Adel” (“BARY”), was sentenced in Manhattan federal court to 25 years in prison for his conviction on international terrorism charges in connection with BARY’s work on behalf of al Qaeda and the Egyptian Islamic Jihad. BARY was extradited to the United States from the United Kingdom on October 6, 2012, 13 years after the United States had sought his extradition. On September 19, 2014, BARY pled guilty to a three-count superseding Information charging him with one count of conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, one count of making such a threat, and one count of conspiring to kill U.S. nationals. BARY pled guilty before United States District Judge Lewis A. Kaplan, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Adel Abdel Bary occupied important positions in Egyptian Islamic Jihad and al Qaeda. As he admitted at his plea last September, he facilitated communications by Osama bin Laden and other al Qaeda leaders, including publication of the 1998 al Qaeda fatwah to kill Americans, and al Qaeda’s claims of responsibility for the 1998 bombings of two American embassies in Africa. The sentence imposed today reflects the seriousness of Bary’s crimes, his role, and his acceptance of responsibility for them.”
Assistant Attorney General John Carlin said: “Adel Abdel Bary was a member of the London cell of the Egyptian Islamic Jihad and worked closely with al Qaeda leadership both before and after the bombings of the U.S Embassies in Kenya and Tanzania in 1998 to disseminate al Qaeda threats against U.S. citizens and interests around the world. This sentence holds him accountable for his key role in facilitating the delivery of al Qaeda’s message to extremists around the world encouraging the commission of violent acts against the United States and its citizens. I commend all of the people who worked on this case over many years in order to reach this result.”
According to the Indictment based on which BARY was extradited, the Superseding Information to which he pled, other documents filed in Manhattan federal court, and statements made at BARY’s guilty plea and at today’s sentencing:
In 1997 and 1998, BARY led the London, England, cell of the Egyptian Islamic Jihad (“EIJ”) organization. EIJ, which was led for years by co-defendant Ayman al Zawahiri, was dedicated to the forceful overthrow of the Egyptian Government and to violent opposition of the United States, in part, for its support of the Government in Egypt. By February 1998, EIJ had effectively merged with al Qaeda, and EIJ joined with al Qaeda in targeting American civilians. To that end, in February 1998, indicted co-defendant Usama Bin Laden, now deceased, and Zawahiri endorsed a purported fatwah under the banner of the “International Islamic Front for Jihad on the Jews and Crusaders.” This fatwah stated that Muslims should kill Americans – including civilians – anywhere in the world where they can be found. Then again, on August 4, 1998, EIJ published a statement threatening to retaliate against America for its claimed involvement in the apprehension of EIJ members. A copy of this statement was found in the London office used by BARY and his London-based co-conspirators.
While in London, BARY pledged his commitment to pursue the goals of EIJ and to follow the orders of the leadership of the group. Many of the leading members of EIJ became influential members of al Qaeda, including Zawahiri and indicted co-defendant Muhammad Atef, both of whom later sat on the majlis al shura (or consultation council) of al Qaeda. Zawahiri is now the declared leader of al Qaeda.
On August 7, 1998, three days after EIJ published its threat to retaliate against America, al Qaeda operatives bombed the United States Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing 224 people. BARY transmitted, via international telephone calls to the media, the contents of al Qaeda’s claims of responsibility for the August 7, 1998, bombings. These claims of responsibility included threats of future terrorist attacks by al Qaeda and its allies, and were sent from London, England, to media organizations in France, Qatar, and the United Arab Emirates on August 8, 1998 – the day after the embassy bombings.
In August 1998, both before and after the bombings, BARY additionally arranged for messages to be transmitted from members of the media to his co-conspirators, including Bin Laden and Zawahiri, and conveyed messages from his co-conspirators, including Bin Laden and Zawahiri, to members of the media. BARY also used an office in London, which he shared with co-conspirators, to store documents, including the claims of responsibility described above, as well as for other conduct related to the conspiracy to murder U.S. nationals.
In addition to his prison term, BARY, 54, was ordered to pay restitution in the amount of $33,816,561.75, including $7,516,561.75 to victims’ family members for loss of income and $26,300,000.00 to the United States for property loss.
A co-defendant, Khalid al Fawwaz, a/k/a “Khaled Abdul Rahman Hamad al Fawwaz,” a/k/a “Abu Omar,” a/k/a “Hamad” (“Fawwaz”), is currently on trial before Judge Kaplan. The charges against Fawwaz are merely accusations, and Fawwaz is presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding efforts of the FBI’s New York-based Joint Terrorism Task Force – which principally consists of special agents of the Federal Bureau of Investigation and detectives of the New York City Police Department – as well as the outstanding efforts of the United States Marshals Service and the Metropolitan Police Department of London (New Scotland Yard). Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
Husband and Wife Who Fled Prior to Trial in Colorado Arrested in the BahamasRead the Press Release
BOTH DEFENDANTS MAKE COURT APPEARANCE IN MIAMI AFTER BEING DEPORTED BY BAHAMIAN GOVERNMENT
DENVER – Donald and Karlien Winberg, of Earth, Texas, appeared in federal court in Miami today after being arrested at Miami International Airport yesterday on charges of bond violations in Colorado, U.S. Attorney John Walsh and FBI Special Agent in Charge Thomas Ravenelle announced. Donald Winberg, age 44, and Karlien Winberg, age 33, were originally detained in the Bahamas after fleeing the United States to avoid trial on conspiracy and wire fraud charges in Colorado. Authorities in the Bahamas had detained the defendants, who were accompanied by their seven children, for failing to have proper identification and travel documents. Bahamian authorities also knew of the federal arrest warrants based on the bond condition violations, which resulted in the Winbergs being deported. The two defendants and their seven children were put on a flight to the United States, landing in Miami, where they were taken into custody by FBI agents.The Winbergs were indicted by a federal grand jury in Denver on April 22, 2014. As their case progressed in U.S. District Court in Denver, Colorado, and as the defendants neared trial, they committed alleged bond violations and later fled, resulting in the issuance of arrest warrants in October 2014.
The Winbergs, beginning in 2010, advertised on the internet that they had hay and corn for sale. Once a potential buyer contacted the defendants, a sale would be negotiated. Defendants claimed to buyers that they owned extensive farmland in Idaho and Texas; that they produced hay, straw, potatoes, and other agricultural crops in substantial quantities; that they shipped large quantities of agricultural products throughout the United States; that they had between 15,000 and 65,000 tons of hay for sale; and that they had trucks to deliver the large quantities of purchased hay or corn to the buyer. The defendants would then take the victims’ money and not deliver the material that was advertised, purchased and promised.
As the case was moving toward trial, the Winbergs fled, at one point staying in the Galveston, Texas area. The defendants purchased a sail boat that they then ran aground not far from the shore. At that time it was believed that they had a large amount of cash. Around that same time, the defendants were the subject of local publicity in the Galveston area. The Winbergs were able to obtain another boat and successfully travelled to the Bahamas. They were arrested without incident on a boat near the Staniel Cay Yacht Club in the Bahamas. The arrest was made by Bahamian authorities after a Louisiana family vacationing in the Bahamas recognized the family from a press story out of Galveston. The defendants failed to provide identification documents, and the Bahamian authorities, knowing about the federal arrest warrants, arrested the two defendants. They were then deported back to the United States, where they were arrested. After the court orders that they be sent to Colorado, the U.S. Marshals Service will be responsible for their transportation. No time table has been set for that transport. Social Services is working to determine what happens to the seven children.
The defendants face one count of conspiracy to commit wire fraud. If convicted of that count, they face not more than 20 years in federal prison, and up to a $250,000 fine. They each face 14 counts of wire fraud and/or aiding and abetting. If convicted of wire fraud, or aiding and abetting, the defendants face not more than 20 years in federal prison, and up to a $250,000 fine per count.
This case was originally investigated by the FBI. The FBI wants to recognize the following agencies that assisted in the search and arrest of the Winbergs: Drug Enforcement Administration, Customs and Border Protection, American Citizen Services at the U.S. Embassy in Nassau, Bahamas, and the Royal Bahamas Police Force.
The defendants are being prosecuted by Assistant U.S. Attorney Patricia Davies. The Justice Department’s Office of International Affairs also provided assistance in this case.
The indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty.
Houston Man Pleads Guilty to Sex Trafficking of a ChildRead the Press Release
ALEXANDRIA, Va. – Michael Anthony Randall, aka “Divine tha Victorious Mack,” 32, previously from Charlottesville, Virginia, and Galveston, Texas, but mostly recently from Houston, Texas, pleaded guilty today to sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.,; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
Randall faces a maximum penalty of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Randall admitted that he was a member of a sex trafficking venture that was sometimes known as, “Horse Block Pimpin’.” The sex trafficking venture operated from at least 2009 to at least 2013. Randall conceded that he used force and coercion to maintain control over victims who were prostituted and to keep them from leaving. He and other members of this venture used force, threats of force, and coercion to prostitute more than 55 women and girls, some of whom were minors.
Randall prostituted victims in several different states, including Virginia, North Carolina, Maryland, New Jersey, New York, Pennsylvania, and Texas. Randall held a supervisory role in the sex trafficking venture, which included recruiting, harboring, and prostituting women and girls, and arranging for the transportation of girls and women who were prostituted. Among other things, he used false promises of a better life, force and coercion to recruit women and keep them prostituting. The victims were required to give nearly all of the prostitution proceeds to Randall and other co-conspirators of Horse Block Pimpin’.
This case was investigated by Homeland Security Investigations and the Fairfax County Police Department, with the assistance of the Stafford County Sheriff’s Office, the Henrico County Police Department, the Spotsylvania County Sheriff’s Office, and the Lynchburg Police Department. Assistant U.S. Attorney Michael J. Frank and Special Assistant U.S. Attorney Kathryn A. Kimball are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-39.Houston Couple Sentenced in Chinese Restaurant Employment ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A Houston husband and wife have been sentenced to federal prison for racketeering violations in connection with an employment referral conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Brian M. Moskowitz, special agent in charge of Homeland Security Investigations in Houston today.
Lina Sun, 55, and Chenglun Ma, 58, both pleaded guilty on June 3, 2014, to RICO conspiracy and were sentenced on Feb. 5, 2015 by U.S. District Judge Thad Heartfield. Sun was sentenced to 18 months in federal prison and Ma received 13 months in federal prison. They were also jointly ordered to submit to forfeiture of a residence located at 8715 Bellaire Blvd. in Houston, $2.2 million money judgment, and forfeiture of $50,000 cash.
According to court documents, Lina Sun and her husband, Chenglun Ma operated the “Hong Li employment agency” in Houston Texas for more than a decade. The principal purpose of the employment agency was the placement of prohibited aliens as food service workers in Chinese/Asian restaurants across the United States. Restaurants securing employees from this scheme have been identified in 20 states, including some as far away as Maine. Some of the most prolific restaurants in the scheme were located in Jefferson County, Texas.
Federal indictments were returned on Nov. 7, 2013, charging 32 individuals with RICO conspiracy and conspiracy to transport, harbor, and encourage and induce aliens to reside in the United States.
This case was investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) offices in: Houston, Dallas, San Antonio and New Orleans; U.S. Customs and Border Protection, Office of Air and Marine; U.S. Marshals Service; and Police Department’s in Houston, Port Author and Beaumont. This case was prosecuted by Assistant U.S. Attorney John Craft.Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE EDGARDO CANALES-MADRID, age 25, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about December 1, 2014, CANALES-MADRID was found in the United States after having been officially deported and removed on or about October 6, 2011.
CANALES-MADRID 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 Carl J. Barbier set sentencing for March 19, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harrison County, WV man guilty of unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Following a three day trial, a jury found convicted felon Joseph Garrett, 50, of Haywood, West Virginia, guilty of unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Garrett was previously convicted of multiple offenses in the Circuit Court of Marion County, West Virginia, including “Breaking and Entering” in 1983, “Sexual Assault in the Third Degree” in 1988, and “Second Degree Murder” in 1998. As a result of these convictions, Garrett is prohibited from possessing firearms.
Evidence presented at trial revealed that in May 2014, Garrett was in unlawful possession of a 12 gauge shotgun in Harrison County, West Virginia.
The jury found Garrett guilty of one count of “Felon in Possession of Firearm,” for which he faces up to 10 years in prison and a fine of up to $250,000.00. The jury also found Garrett guilty of one count of “Possession of a NFA Firearm Not Registered to a Person in the National Firearms Registration and Transfer Record,” for which he faces up to 10 years in prison and a fine of up to $10,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Harrison County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation.U.S. District Judge Irene M. Keeley presided.
Heidelberg Man Sentenced to Prison for Sexual Contact with a MinorRead the Press Release
Jackson, Miss. – Aaron Grant Willis, 25, of Heidelberg, Mississippi, a member of the Mississippi Band of Choctaw Indians, was sentenced on February 5, 2015 by U.S. District Judge Keith Starrett to 18 months in prison followed by 10 years of supervised release for sexual contact with a minor under the age of twelve, announced U.S. Attorney Gregory K. Davis.
Willis was also ordered to pay a $5,000.00 fine and register as a sex offender. The crime occurred on the tribal lands of the Mississippi Band of Choctaw Indians.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
Georgia Couple Arrested in New Mexico on Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Alex Thomas Burns, 24, of Atlanta, Ga., and Riana Latel Cunningham, 22, of Stockebridge, Ga., entered not guilty pleas this morning to a criminal complaint charging them with methamphetamine trafficking charges.
Burns and Cunningham were arrested on Feb. 3, 2015, in Albuquerque, N.M., on a criminal complaint charging them with possession of methamphetamine with intent to distribute. According to the criminal complaint, Burns and Cunningham were arrested after officers allegedly found more than nine kilograms of methamphetamine in their vehicle during a routine traffic stop on Interstate 40 on the west side of Albuquerque. The methamphetamine was found after Burns allegedly consented to have the officer search the vehicle.
If convicted of the charges in the criminal complaint, Burns and Cunningham each face a statutory maximum penalty of not less than ten years and not more than life in prison. Charges in complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Border Enforcement Security Taskforce of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Joel R. Meyers.
Fredericksburg Man Pleads Guilty for Investment Fraud Scheme Related to Quantico Corporate Center at StaffordRead the Press Release
RICHMOND, Va. –James Ashby Moncure, Jr., 42, of Fredericksburg, Virginia, pleaded guilty today to charges of Wire Fraud and Engaging in Unlawful Monetary Transactions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service – Washington Division, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson.Moncure was indicted by a federal grand jury on October 7, 2014. He faces a maximum penalty of 30 years in prison when he is sentenced on May 15, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Moncure agreed that, as a partial owner of Moncure Brothers LLC, he had partnered with The Silver Companies to develop property known as the Quantico Corporate Center at Stafford (QCCS), a business park located in Stafford County, Va., along Interstate 95 and US 1, adjacent to Marine Corps Base Quantico. Beginning prior to January 2010 and continuing through March 2014, Moncure solicited individuals for investment opportunities in exchange for short term promissory notes offering returns ranging from 10 percent up to 25 percent. In connection with those investments, Moncure claimed that the investment funds would be used for acquiring and developing land for the QCCS or another specified property. He also made misrepresentations about how the promised returns would be generated and the security of investment funds.
Instead, Moncure misappropriated a significant amount of investor funds for payment of returns to earlier investors and transfers to investment trading accounts from which he day-traded stocks and options. For the Wire Fraud transaction in Count Four, Moncure admitted receiving $200,000 from investor T.S. on January 28, 2014. The defendant had promised T.S. that the money would be used to expand and enhance the QCCS and to purchase land. In reality, on January 29, 2014, Moncure wire transferred $190,000 of T.S.’s funds to his own Options Express, Inc. trading account, where the money was used for his stock trading activities. He followed the same pattern for the Engaging in Unlawful Monetary Transactions charge in Count Seven. After receiving $800,000 in QCCS investment monies from investor C.C. on June 6, 2013, Moncure transferred those same funds to his Options Express, Inc. trading account on June 7, 2013. He then used C.C.’s funds for his stock trading activities, as opposed to investment into the QCCS.
This case was investigated by FBI’s Fredericksburg Resident Agency, Internal Revenue Service-Criminal Investigations, and U.S. Postal Inspection Service. Assistant U.S. Attorneys Michael Gill and Katherine Martin are prosecuting the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-137.Fourth Circuit Court of Appeals Affirms Michael Juan Smith's Federal ConvictionRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- The United States Attorney’s Office stated today that the Fourth Circuit Court of Appeals issued an unpublished opinion today affirming the federal conviction of Michael Juan Smith, age 22, of Columbia, South Carolina. The written opinion may be found at http://www.ca4.uscourts.gov/opinions/daily-opinions. Smith was sentenced to the maximum sentence of 120 months (10 years) imprisonment for the federal charge of being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Smith pled guilty on February 19, 2014. United States District Judge Joseph F. Anderson, Jr. imposed the maximum sentence on June 20, 2014, which will be followed by three (3) years of federal supervised release.Former Philadelphia Police Officer Pleads Guilty to Extortion SchemeRead the Press Release
PHILADELPHIA - Christopher Saravello, 37, of Philadelphia, PA, pleaded guilty today, to a scheme to extort drugs and money from drug dealers and drug buyers while working as a Philadelphia Police Officer. He was charged with one count of conspiracy to commit Hobbs Act extortion and five counts of Hobbs Act extortion.
Between November 2011 and June 2012, while employed as a Philadelphia Police Officer assigned to the 6th District, Saravello conspired with others to rob drug dealers and drug buyers of cash and Oxycontin and other controlled substances. Saravello’s co-conspirators would alert him to a drug transaction. Saravello would then interrupt the planned drug transaction, identifying himself as a law enforcement officer by approaching the transaction in a marked police vehicle, wearing a police uniform, displaying an official badge and identification, or verbally identifying himself as a police officer. Saravello seized the money or narcotics brought to the transaction by the buyer or seller victim and shared the seized proceeds with his co-conspirators. In doing so, Saravello used his position as a police officer to extort drugs and money from others. The scheme resulted in the illegal taking of more than $9,800 in drug money and quantities of Oxycontin and other narcotics.
U.S. district Court Judge Eduardo Robreno scheduled a sentencing hearing for June 2, 2015. Saravello faces a maximum possible sentence of 120 years in prison, $1.5 million fine, three years of supervised release and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
Former Pharmacist Sentenced for RoleIn Drug Distribution Scheme and Money LaunderingRead the Press Release
A Dearborn pharmacist was sentenced yesterday to six years in prison for conspiracy to illegally distribute prescription pills and money laundering, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Jarod J. Koopman, Internal Revenue Service Criminal Investigation and Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In March 2013, Waleed Yaghmour was charged with 43 others in a health care fraud and drug distribution scheme. The indictment alleged that Sardar Ashrafkhan, Deepak Kumar, John Check and David Vezzossi, who owned home health agencies, provided kickbacks, bribes and other illegal benefits to physicians in exchange for prescriptions for patients with Medicare, Medicaid and private insurance. The prescriptions were for controlled substances including oxycodone (Oxycontin), hydrocodone (Vicodin) and alprazolam (Xanax). Patient recruiters or “marketers” would pay kickbacks and bribes to patients in exchange for the patients’ permitting the pharmacies and physicians to bill their insurers for medications and services that were medically unnecessary and/or never provided. During the conspiracy, prescriptions were presented to the Sav-Mart Pharmacy in Detroit, which was owned and operated by Yaghmour, as well as several other pharmacies.
In his guilty plea, Yaghmour, 48, admitted that he knew that the controlled substances he dispensed for these fraudulent prescriptions had no legitimate medical purposes. Yaghmour has admitted to dispensing at least 1,500 oxycodone 100,000 hydrocodone and 100,000 alprazolam doses as part of the scheme.
Yaghmour received nearly $2 million in cash payments for illegally dispensing the controlled substances. Yaghmour has agreed to forfeit $973,177.87 that was seized from an account that he maintained at HSBC Bank Middle East Limited, Ramallah, Palestine.
“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” McQuade said. “In addition, prescription drug addiction has led to a resurgence in heroin use. Pharmacists who divert prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”
"We entrust physicians and healthcare providers with monitoring, caring, and treating members of our community," said Miller. "When that trust is violated, the integrity of the system is compromised and lives are put at risk. HSI will continue to partner with the law enforcement community to ensure that unscrupulous physicians and healthcare providers are brought to justice"
“The public rightfully expects that doctors and pharmacists will uphold the oath that they take to “do no harm.” When they abuse their professional license for financial gain they put the public at risk, in this case by dispensing highly addictive controlled substances. IRS Criminal Investigation's unique role in these investigations is to follow the money trail in order to disrupt these criminal drug organizations that diminish the quality of life in our communities” said Jarod J. Koopman, Special Agent in Charge, IRS Criminal Investigation.
Many of the defendants charged in the indictment have been convicted by pleas and have been sentenced already. Others are scheduled to be sentenced in the near future.
The case was investigated by special agents from the Internal Revenue Service Criminal Investigation, the U.S. Immigration and Custom’s Enforcement’s Department of Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol Firearms and Explosives, Detroit Police Dept., Portsmouth, Ohio, Police Dept., Scioto County Sheriff’s Office, the Department of Health and Human Services Office of Inspector General, and the Detroit Violent Crimes Task Force and Michigan State Police. The case is being prosecuted by Assistant U.S. Attorneys Terrence R. Haugabook, Michael Martin, and Wayne F. Pratt. They are assisted by Assistant U.S. Attorneys Jonathan Grey and Gjon Juncaj of the Forfeiture Section.Former Official Charged with Stealing Funds from Buffalo Schools; Son Indicted by Grand JuryRead 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 Debbie Buckley, 54, of Niagara Falls, NY, was charged by criminal complaint with theft of government funds. The charge carries a maximum penalty of 10 years and a $250,000 fine.
In addition, Buckley’s son, Hassan El Saddique, who was arrested and charged by criminal complaint on January 13, 2015, has been indicted by a federal grand jury, also on a charge of theft of government funds.
“Those in positions of trust must be held to a higher standard,” said U.S. Attorney Hochul. “This defendant was responsible for disbursing federal funding to children in our community who need it the most. Instead she stands accused of lining her pockets and those of her son with money targeted to assist school kids.”
“Today’s charges allege that Mrs. Buckley knowingly and willfully abused her position of trust to steal funds from the very ones she promised to serve – the children of Buffalo Public Schools. That is completely unacceptable,” said Geoffrey Wood, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Mid-Atlantic Regional Office. “OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
Assistant U.S. Attorneys Kathleen A. Lynch and Stephanie Lamarque, who is handling the case, stated that Debbie Buckley served as Supervisor of Title I, Office of Federal and State Programs for the Buffalo School District. Title I is a federally funded program that provides assistance to school districts with high numbers of children from low income families. In March 2010, Buckley was promoted to Assistant Superintendent of Federal and State Programs.
In June 2009, Buckley met with a representative of the Universal School which moved into the City of Buffalo. During the meeting, Buckley asked for and was provided with blank Universal School letterhead signed by the representative. The defendant indicated the letterhead would be used to include the Universal School with other non-public schools to increase resources available.
According to the complaint, a record obtained during the investigation included an undated letter on Universal School letterhead purportedly written by the school representative. The letter, addressed to Buckley, requested Hassan El Saddique to administer the Title I computer assisted program at the Universal School during the 2009-10 school year. The complaint further states that the school representative did not write or sign the letter, the Universal School did not have a Title I computer assisted program, nor did El Saddique ever work at the school.
While El Saddique did not work at the Universal School, he did work at Bishop Timon High School in Buffalo. El Saddique was told the Title I funding at Timon was obligated so he agreed to volunteer at the school. Subsequently, El Saddique was contracted to assist with a Title I after school program at Timon. According to the complaint, El Saddique submitted invoices to the Buffalo School District for the period of September 8, 2009 through June 30, 2010 when in fact, the regular Title 1 program at Bishop Timon ran November 2, 2009 through the end of May, 2010.
In addition to submitting invoices for days not worked at Timon, El Saddique also submitted invoices for services that were never performed at the Universal School.
According to the complaint, Buckley changed the approval process by which a contractor was paid for Title I services provided in non-public schools. The defendant eliminated the need for a signature from an official at the non-public school. Some of the invoices submitted by El Saddique included the name of an employee of the Universal School where he never actually worked while other invoices contained an illegible signature. In addition, Debbie Buckley’s name appears on three of these invoices that did not contain a signature from a non-public school official. The dates of these invoices coincide with the period during which Buckley was promoted to Assistant Superintendent.
El Saddique received 18 paychecks from the Buffalo School District totaling $15,120. Of those paychecks, 13 were deposited into two union accounts controlled by Buckley for a total of $10,320 and another check was cashed using one of those accounts.
Buckley made an initial appearance this morning before U.S. Magistrate Judge H. Kenneth Schroeder and was released on bond. Hassan El Saddique was arraigned this morning before U.S. Magistrate Judge Hugh B. Scott. He pleaded not guilty and continues to be released on bond. Oral argument on motions is scheduled for June 25, 2015 at 10:00 a.m.
The criminal complaint and indictment are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation and the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent in Charge Geoff Wood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former Medical Technician Sentenced to over One Year in Prison for Accepting Bribes in Exchange for Falsifying Urinalysis Drug TestsRead the Press Release
TULSA, Okla. —A former medical technician was sentenced to 18 months in federal prison for accepting bribes in exchange for submitting fraudulent urinalysis drug tests and to submitting a falsified certification, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
William Ray Allen, 33, of Tulsa, was responsible for collecting urine specimens for random urinalysis drug testing while employed by 12 & 12, Incorporated, a drug treatment facility. Allen admitted to warning those selected for court ordered random drug testing that they were going to be tested. He also substituted his own urine or the urine of others for drug testing and submitted falsified certifications with the substituted urine for analysis. Allen knowingly shipped the fraudulent substituted urine samples via Federal Express to the United States Probation Drug Laboratory. The drug treatment facility is contracted by the United States Probation Office to provide court ordered drug testing and treatment services to persons under supervision.Allen was indicted by a grand jury on September 4, 2014, and pleaded guilty on October 9, 2014, to four counts of honest services mail fraud and three counts of accepting a bribe. Due to a conflict of interest, Allen was sentenced by United States District Court Judge David L. Russell of the Western District of Oklahoma.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joel-lyn A. McCormick on behalf of the United States.
Former Martin County judge pleads guilty in federal court for failing to file income tax returnRead the Press Release
Loogootee attorney failed to pay over $66,000 in taxes from law firm income
PRESS RELEASE
EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today the guilty plea of a Loogootee man who failed to file his federal income tax returns for 2012. Robert Joseph Howell, 51, was found guilty today before U.S. District Chief Judge Richard L. Young.
Howell, operated Howell Law Firm PC in Loogootee, IN, performing legal services for clients. In 2012, the firm had gross receipts of approximately $450,000, including a $300,000 fee he received from a wrongful death insurance settlement.
Howell’s return preparer initially filed an extension for the 2012 tax year which expired in October 2013. When the accounting firm sent Howell an invoice, he chose not to pay the invoice or his owed taxes. He failed to file business or personal returns in 2012, resulting in a tax debt of over $66,000. According to testimony in court, over $265,000 was withdrawn from his personal and business accounts at casinos in Evansville and French Lick.
Howell formerly served as a circuit court judge and prosecutor in Martin County.
Acting United States Attorney Josh Minkler stated, “taxes are a fundamental responsibility we all owe to help maintain infrastructure, schools and public safety services. When someone willfully neglects that responsibility, they will be held accountable.”
This case was investigated by the Internal Revenue Service, Criminal Investigation.
According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, Howell faces up to one year in prison, a fine up to $100,000, and must pay full restitution to the IRS. Sentencing is scheduled for May 11, 2015, in Evansville.
Former Ku Klux Klan Officer Sentenced to 10 Months for Committing Perjury During Cross-Burning InvestigationRead the Press Release
Today, U.S. District Court Judge L. Scott Coogler sentenced Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, to 10 months in prison and three years of supervised release for committing perjury during a grand jury’s investigation into a racially motivated cross-burning.
Morris, 47, previously admitted during her plea hearing on June 12, 2014, that she lied to a federal grand jury investigating a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the Exalted Cyclops (president) of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African American neighborhood in Ozark to threaten and intimidate residents. Several witnesses observed and were frightened by the cross, including a young man returning from choir practice as the defendants set the cross ablaze. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the Klan or involved with the KKK at all.
In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross-burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.
Dinkle is currently serving a 24-month sentence imposed on May 15, 2014, for his conviction on hate-crime and obstruction-of-justice charges related to the cross-burning. Smith, Dinkle’s co-conspirator, was sentenced to five years of probation on Aug. 19, 2014.
“Acts that target individuals and communities for violence based on race have no place in our society,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Nor can we tolerate those who lie under oath to obstruct the pursuit of justice.”
“Ms. Morris blatantly lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. "Ms. Morris lied after she swore to the grand jury that she would tell the truth. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them."
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case was prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
Former Ku Klux Klan Officer Sentenced to 10 Months for Committing Perjury During Cross-Burning InvestigationRead the Press Release
Montgomery, Alabama - Today, U.S. District Court Judge L. Scott Coogler sentenced Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, to 10 months in prison and three years of supervised release for committing perjury during a grand jury’s investigation into a racially motivated cross-burning.
Morris, 47, previously admitted during her plea hearing on June 12, 2014, that she lied to a federal grand jury investigating a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the Exalted Cyclops (president) of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African American neighborhood in Ozark to threaten and intimidate residents. Several witnesses observed and were frightened by the cross, including a young man returning from choir practice as the defendants set the cross ablaze. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the Klan or involved with the KKK at all.
In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.
Dinkle is currently serving a 24-month sentence imposed on May 15, 2014, for his conviction on hate-crime and obstruction-of-justice charges related to the cross burning. Smith, Dinkle’s co-conspirator, was sentenced to five years of probation on Aug. 19, 2014.
“Acts that target individuals and communities for violence based on race have no place in our society,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Nor can we tolerate those who lie under oath to obstruct the pursuit of justice.”
“Ms. Morris blatantly lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. "Ms. Morris lied after she swore to the grand jury that she would tell the truth. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them."
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case was prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Executive Pleads Guilty to Defrauding Shipping CompanyRead the Press Release
HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has pleaded guilty to 10 counts of wire fraud in connection with defrauding her company, announced United States Attorney Kenneth Magidson.
As part of her guilty plea, Creel, 43, admitted that from June 2003 through August 2009, she was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. Creel also admitted she had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.
Creel admitted that from at least June 2003 through approximately August 2009, she defrauded Wilhelmsen by embezzling money from the company’s bank accounts. Creel used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own. Specifically, Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors. Creel entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account.
U.S. District Judge Grey Miller, who accepted the guilty plea, has set sentencing for April 17, 2015. At that time, she faces up to 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss on each count, along with forfeiture allegations of more than $4 million.
She was permitted to remain on bond pending that hearing.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Former Douglas County Elementary School Principal Sentenced to Prison for Attempting to Entice A MinorRead the Press Release
ATLANTA - John Harold McGill, the former principal of Mt. Carmel Elementary School in Douglas County, Ga., has been sentenced to ten years in prison for using emails and text messages to attempt to entice a minor to engage in unlawful sexual activity. McGill was arrested on March 2, 2014, and was convicted after a two-day trial in December 2014.
“It is deeply disturbing and disappointing that an elementary school principal would attempt to have sex with a thirteen-year-old girl,” said Acting United States Attorney John Horn. “We will continue to devote every resource possible to protecting children and prosecuting those who prey upon them.”
According to Acting United States Attorney Horn, the charges, and evidence presented in court: On Saturday, March 1, 2014, McGill responded to an Internet advertisement named “casual encounters,” purportedly posted by a mother who was seeking a man to introduce her thirteen-year-old daughter to sexual intercourse. McGill communicated with who he thought was the girl's mother by email and text throughout the evening and into early Sunday morning, March 2, 2014.
With his wife out of town at a conference, McGill put his children to bed, and then drove more than 50 miles from Douglasville, Ga., to Lithonia, Ga. He arrived at the mother's house at 1:45 a.m. with a condom in his pants pocket. But the “mother” was an FBI Task Force Officer, and McGill was arrested.
In addition to sentencing John Harold McGill, 57, of Douglasville, Ga., to ten years in prison, United States District Judge William S. Duffey ordered that McGill remain on supervised release for the rest of his life after his imprisonment ends.This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Cobb County Police Department, and the DeKalb County District Attorney’s Office.
Assistant United States Attorney William G. Traynor prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Army Soldier Sentenced to Life in Prison for Murder of his Five-Year-Old DaughterRead the Press Release
An Army soldier was sentenced to life in prison without the possibility of parole today for murdering his five-year-old daughter, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
Naeem Williams, 34, was sentenced today by U.S. District Judge J. Michael Seabright of the District of Hawaii. On June 27, 2014, a federal jury in Honolulu found Williams guilty of beating his daughter, Talia Williams, to death at the family’s residence on Wheeler Army Airfield in Honolulu.
The jury also convicted Williams of participating, along with his wife, Delilah Williams, in a pattern and practice of assault and torture from December 2004 until July 16, 2005, that resulted in Talia’s death. In addition, Williams was convicted of obstructing justice and making false statements to Army Criminal Investigation Division agents on the night of his arrest in July 2005.
The evidence presented at trial demonstrated that Naeem Williams and his wife beat Talia almost daily. Naeem Williams testified that the abuse was aimed at disciplining his daughter for bathroom accidents and was exacerbated due to frustrations he was experiencing in his marriage. The evidence indicated that the physical abuse included punching Talia repeatedly, commanding her to eat her own feces, depriving her of food, requiring her to do strenuous exercises and then beating her when she was unable to continue, and using duct tape to bind her to a bed post where she was whipped with a belt. In the hours preceding her death, Naeem Williams struck Talia and her head slammed backwards against the floor. Talia then appeared to have a seizure.
Delilah Williams pleaded guilty to first-degree felony murder, agreed to testify against her husband and was sentenced to 20 years in prison.
This case was investigated by the FBI and the Army Criminal Investigation Division, and was prosecuted by Trial Attorney Steven D. Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii.
Former Army Soldier Sentenced to Life in Prison for Murder of his Five-Year-Old DaughterRead the Press Release
WASHINGTON – An Army soldier was sentenced to life in prison without the possibility of parole today for murdering his five-year-old daughter, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
Naeem Williams, 34, was sentenced today by U.S. District Judge J. Michael Seabright of the District of Hawaii. On June 27, 2014, a federal jury in Honolulu found Williams guilty of beating his daughter, Talia Williams, to death at the family’s residence on Wheeler Army Airfield in Honolulu.
The jury also convicted Williams of participating, along with his wife, Delilah Williams, in a pattern and practice of assault and torture from December 2004 until July 16, 2005, that resulted in Talia’s death. In addition, Williams was convicted of obstructing justice and making false statements to Army Criminal Investigation Division agents on the night of his arrest in July 2005.
The evidence presented at trial demonstrated that Naeem Williams and his wife beat Talia almost daily. Naeem Williams testified that the abuse was aimed at disciplining his daughter for bathroom accidents and was exacerbated due to frustrations he was experiencing in his marriage. The evidence indicated that the physical abuse included punching Talia repeatedly, commanding her to eat her own feces, depriving her of food, requiring her to do strenuous exercises and then beating her when she was unable to continue, and using duct tape to bind her to a bed post where she was whipped with a belt. In the hours preceding her death, Naeem Williams struck Talia and her head slammed backwards against the floor. Talia then appeared to have a seizure.
Delilah Williams pleaded guilty to first-degree felony murder, agreed to testify against her husband and was sentenced to 20 years in prison.
This case was investigated by the FBI and the Army Criminal Investigation Division, and was prosecuted by Trial Attorney Steven D. Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii.
Final Two Defendants Plead Guilty in International Counterfeit Currency RingRead the Press Release
All 13 defendants have pleaded guilty in $86 million counterfeiting scheme
ALEXANDRIA, Va. – Ofra Borohov, 45, and Boaz Borohov, 44, a married couple from Tel Aviv, Israel, pleaded guilty today to RICO conspiracy involving multiple acts of counterfeiting of U.S. currency and money structuring.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Joseph P. Clancy, Acting Director of the United States Secret Service, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady.
“This counterfeiting ring used sophisticated techniques to mimic the security and design features of U.S. currency and created over $86 million in counterfeit bills,” said U.S. Attorney Boente. “I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”
“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said Secret Service Acting Director Clancy. “This investigation joins a long list of successful counterfeit suppressions over our 149 year history. We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”
According to court documents filed in this case, the Borohov’s participated in a criminal enterprise that engaged in multiple acts involving counterfeiting of U.S. currency and money structuring. Ofra and Boaz came to the United States from Israel in March 2014 to assist in the production and manufacture of counterfeit $100 notes at a warehouse in Cherry Hill, New Jersey, purchased by Itzhak Loz and Ronin Fakiro, two co-conspirators. Over $2.56 million in counterfeit currency was manufactured at the warehouse where the Borohov’s were arrested on May 28, 2014, when the U.S. Secret Service executed a search warrant there.
All 13 defendants named in the original indictment have pleaded guilty and are awaiting sentencing. The defendants are listed in the indictment in the following order:
Defendant Name & Age
Residence
Arrest Location & Date
Status
Itzhak Loz, 46
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 15, 2015
Ronin Fakiro, 45
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 8, 2015.
Boaz Borohov, 43
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentencing May 22, 2015.
Ofra Borohov, 45
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentencing May 22, 2015.
Arkadiy Bangiyev, 37
Rego Park, New York
Rego Park, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 1, 2015.
Eduard Bangiyev, 39
Forest Hills, New York
Scranton, Pennsylvania
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 1, 2015.
Johnny Elegante Lee, 44
Glen Oaks, New York
Miami, Florida
June 1, 2014Pleaded guilty Sept. 16, 2014. Sentencing on Feb. 20, 2015.
Tarell Lavon Johnson, 26
Lynbrook, New York
Lynbrook, New York
May 28, 2014Pleaded guilty Oct. 23, 2014. Sentencing Feb. 27, 2015.
Craig Johnson, 48
Douglasville, Georgia
Douglasville, Georgia
June 13, 2014Pleaded guilty Oct. 1, 2014. Sentencing Feb. 13, 2015.
Shannon Lamont Smith, 38
Woodstock, Georgia
Atlanta, Georgia
May 28, 2014Pleaded guilty Sept. 26, 2014. Sentencing Feb. 27, 2015.
Fredrick Barrett, 32
Hempstead, New York
Hempstead, New York
May 28, 2014Pleaded guilty Oct. 24, 2014. Sentencing Feb. 27, 2015.
Ramel Epps, 23
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 20, 2014. Sentencing Feb. 20, 2015.
Brattie Guerra, 22
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 3, 2014. Sentencing Feb. 20, 2015.
This case was investigated by the United States Secret Service. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg are prosecuting the case.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
Final Defendants Sentenced in 28-Defendant Investigation of Criminal Activity by North Georgia Motorcycle GangsRead the Press Release
GAINESVILLE, Ga. - Walt Verrill, who was a member of the Black Pistons Motorcycle Club, and Tony Parrott, who was an affiliate of the same motorcycle club, are the last two defendants in a long-term investigation of motorcycle gangs in North Georgia. Both have been sentenced for possessing methamphetamine with intent to distribute.
“These sentencings close a comprehensive investigation into drug trafficking and illegal gun and explosives offenses by members of motorcycle gangs operating in North Georgia,” said Acting United States Attorney John Horn. “The case reflects our commitment to make sure the communities in North Georgia are safe, and prevent gang members involved in drug and gun offenses from establishing a foothold there.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing concludes an extensive investigation by the FBI and its law enforcement partners into criminal activities associated with several biker groups located in the North Georgia region. The FBI is well positioned to conduct and coordinate such investigations and will continue to work with area law enforcement in making sure that North Georgia remains free from such individuals and groups attempting to set up organized criminal enterprises.”
According to Acting United States Attorney Horn, the charges and other information presented in court: Beginning in mid-2010, the FBI conducted a long-term undercover investigation in north Georgia into allegations that members of the Outlaw Motorcycle Club, the Black Pistons Motorcycle Club, and other motorcycle clubs were engaged in various forms of criminal activity, including drug distribution and illegal firearms and explosives offenses. An undercover agent posed as a drug dealer from Florida who was looking to expand his drug dealing into North Georgia. He was introduced to members of the motorcycle clubs by a club member who was working as an informant for the FBI.
The undercover agent conducted actual and ruse drug deals in which he either bought methamphetamine from motorcycle club members or recruited club members to assist him in moving what they were led to believe were significant quantities of methamphetamine or cocaine from North Georgia to Tennessee. The undercover agent also obtained firearms from convicted felons and engaged two defendants in discussions about making an unregistered explosive device for him.
The investigation also took a side route into the Hispanic SUR-13 gang, which was operating in Hall County, Ga. A second informant introduced SUR-13 gang members and affiliates to the undercover agent, and they then moved what they were led to believe were significant quantities of cocaine through Hall County, Ga., to Tennessee. The undercover agent also conducted illegal firearms transactions with SUR-13 gang members.
In mid-July 2012, the FBI learned that members of the Outlaw Motorcycle Club suspected that one of the FBI’s informants was working for the FBI. The undercover investigation was terminated at that time. On August 16, 2012, 22 defendants were arrested on drug, firearms, and obstruction of justice charges. Six other defendants were arrested later. Since then, 20 defendants have pleaded guilty to various charges, two defendants were convicted after jury trials, and five defendants were acquitted at trial. One defendant, David Rizo-Troncoso, absconded after he was released on bond. Rizo-Troncoso remains a fugitive.
- Verrill, 50, of Sautee Nacoochee, Ga., has been sentenced by United States District Judge Richard W. Story to three years, four months in prison to be followed by four years of supervised release. Verrill was convicted on these charges on July 23, 2013, after he pleaded guilty.
- Parrott, 38, of Ellijay, Ga., has been sentenced to two years, four months in prison to be followed by four years of supervised release. Parrott was convicted on these charges on October 30, 2013, after he pleaded guilty.
- Winfred Turner, 63, from Watkinsville, Ga., was convicted at trial of conspiring to aid and abet and aiding and abetting the possession with intent to distribute cocaine. Turner was sentenced to five years in prison.
- Bobby McGlothlin, 50, of Murrayville, Ga., was convicted at trial of selling a firearm to a convicted felon with knowledge that the buyer had a felony conviction. McGlothlin was sentenced to four months in prison.
- Howard Haney, 44, Alpharetta, Ga., pleaded guilty to possession of methamphetamine with intent to distribute. Haney was sentenced to ten years in prison.
- Larry Samples, 45, of Hall County, Ga., pleaded guilty to conspiring to possess methamphetamine with intent to distribute and possession of a firearm during a drug trafficking crime. Samples was sentenced to ten years in prison.
- Dawen Lloyd, 50, of Winterville, Ga., pleaded guilty possession of a firearm during a drug trafficking crime. Lloyd was sentenced to five years in prison.
- James Brown, 43, of Danielsville, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Brown was sentenced to two years in prison.
- Denny Riley, 38, of Avonmore, Penn., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Riley was sentenced to one year and six months in prison.
- George Jordan, 48, of Hall County, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Brown was sentenced to three years and six months in prison.
- Davey Honeycutt, 47, Gainesville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute. Honeycutt was sentenced to five years in prison.
- Phillip Honeycutt, 48, of Gainesville, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Honeycutt was sentenced to one year and six months in prison.
- Tom Coley, 60, Danielsville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute. Coley was sentenced to three years and one month in prison.
- Brandon Musser, 29, Gainesville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute. Musser was sentenced to two years and four months in prison.
- Josue Guerrero, 22, of Gainesville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute. Guerrero was sentenced to five years in prison.
- Jesse Castillo, 23, from Gainesville, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Castillo was sentenced to one year and six months in prison.
- Reynol Castrejon, 33, of Gainesville, Ga., pleaded guilty to conspiring to possess methamphetamine with intent to distribute. Castrejon was sentenced to five years and six months in prison.
- Dan Redding, 28, of Justin, Texas, pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Redding was sentenced to one year and six months in prison.
- Franscisco Montano, 28, of Gainesville, Ga., pleaded guilty to conspiring to sell a firearm to a convicted felon. Montano was sentenced to five years in prison.
- Juan Pablo Hurtado, 26, of Gainesville, Ga., pleaded guilty to possessing a firearm with an obliterated serial number. Hurtado was sentenced to one year and six months in prison.
- Raymond Sellers pleaded guilty to conspiring to make and transfer a destructive device. Sellers was sentenced to two years and nine months in prison.
- George Norwood pleaded guilty to conspiring to make and transfer a destructive device. Norwood was sentenced to two years in prison.
The investigation was conducted by the FBI with assistance from the North Georgia Major Offenders Task Force and the Georgia Bureau of Investigation.
Assistant United States Attorneys William L. McKinnon, Jr. and Sally B. Molloy prosecuted these cases.
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 Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao/gan/.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the February 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Gustavo Ambriz-Vargas. Alien in the United States After Deportation. Gustavo Ambriz-Vargas, 35, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2014 near Calexico, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jose Ambriz-Vargas. Alien in the United States After Deportation. Jose Ambriz-Vargas, 28, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2011 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Kathleen Suzanne Chance. Theft of Government Property. Chance, 38, of Tulsa, is charged with stealing more than $1,000 in Social Security from March 2010 to December 2013. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Social Security Administration-Office of Inspector General is the investigating agency.
Winston Avery Covington. Felon in Possession of a Firearm and Ammunition. Covington, 32, of Tulsa, is charged with possessing a 9mm caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.
Douglas Nick Dooley. Possession of Methamphetamine with Intent to Distribute and Felon in Possession of a Firearm. Dooley, 45, of Afton, Oklahoma, is charged with possessing methamphetamine with intent to distribute. In addition, Dooley is charged with possessing a .22 caliber revolver after prior felony convictions. If convicted, the statutory maximum penalty for possession with intent to distribute methamphetamine is 20 years in prison and a $1,000,000 fine. If convicted, the statutory maximum penalty for a felon in possession of a firearm is 10 years in prison and a $250,000 fine. Upon conviction, the defendant faces forfeiture of the firearm. The Bureau of Indian Affairs is the investigating agency.
Jamaal Everett Gardenhire. Felon in Possession of Firearm and Ammunition. Gardenhire, 31, of Tulsa, is charged with possessing a .357 Magnum caliber revolver and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. Upon conviction, the defendant faces forfeiture of the firearm and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Aide Hernandez-Saenz. Alien in the United States After Deportation. Hernandez-Saenz, 41, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in September 2009 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Aldo Linares-Torres. Alien Illegally in the United States in Possession of a Firearm and Ammunition and Unlawful User of Controlled Substance in Possession of a Firearm and Ammunition. Linares-Torres, 34, is charged with possessing a .38 Special caliber revolver and ammunition while being unlawfully in the United States. In addition, the defendant is charged with possessing a firearm and ammunition while being an unlawful user of a controlled substance. If convicted, the charges carry the statutory maximum penalty of 10 years in prison and a $250,000 fine. Upon conviction, the defendant faces forfeiture of the firearm and ammunition. United States Immigration and Customs Enforcement is the investigating agency.
Armondo Nunes-Flores. Alien in the United States After Deportation. Nunes-Flores, 40, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in February 2009 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Christopher M. Rohrbach. Failure to Register as a Sex Offender. Rohrbach, 33, of Watts, Oklahoma, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act after a 2007 conviction. If convicted, the maximum statutory penalty would be 10 years in prison and a $250,000 fine. The U.S. Marshals Service is the investigative agency.
Felipe Romero-Ramirez. Alien in the United States After Deportation. Romero-Ramirez, 43, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in July 2003 near Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Kristina Renea Smith. Assault Resulting in Serious Bodily Injury in Indian Country and Assault in Indian Country by Striking, Beating, and Wounding. Smith, 26, of Salisaw, Oklahoma, a non-Indian, is charged with assaulting an Indian woman resulting in serious bodily injury on November 15, 2014 at the Hard Rock Casino. In addition, the defendant is charged with a misdemeanor for assaulting another Indian woman during the same incident. If convicted, the statutory maximum penalty for assault resulting in serious bodily injury in Indian Country is 10 years in prison and a $250,000 fine. If convicted of the misdemeanor, the statutory maximum penalty is one year and a $100,000 fine. The FBI and the Cherokee Nation Marshal Service are the investigating agencies.
Sabrina Nicole Stubbs. Theft from Indian Lands in Excess of $1,000. Stubbs, 29, of Jenks, Oklahoma, a non-Indian, is charged with stealing over $1,000 worth of personal property belonging to an Indian man. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The FBI and the Cherokee Nation Marshal Service are the investigating agencies.
Timothy Jason Sumner. Failure to Register as a Sex Offender. Sumner, 30, of Joplin, Missouri, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act after a prior sex offense conviction. If convicted, the maximum statutory penalty would be 10 years in prison and a $250,000 fine. The U.S. Marshals Service is the investigative agency.
Keenan Dancell Verner. Possession of Methamphetamine with Intent to Distribute. Verner, 31, of Tulsa, is charged with possessing with the intent to distribute 50 grams or more of methamphetamine. If convicted, the statutory minimum penalty is five years in prison and the maximum penalty is 40 years and a $5,000,000 fine. The Tulsa Police Department is the investigating agency.
Juan Villalobos-Jimenez. Alien in the United States After Deportation. Villalobos-Jimenez, 21, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in February 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Federal Court Bars Two Managers of Florida Tax Preparation Stores from Owning a Tax Return Preparation Business and Preparing Tax Returns for OthersRead the Press Release
A federal court in Orlando, Florida, has permanently barred two managers of tax preparation stores in Florida from preparing tax returns for others and from owning or operating a tax return preparation business, the Justice Department announced today.
The civil injunction order, to which Jehoakim Victor and Lauri Rodriguez agreed, was signed by Chief Judge Anne C. Conway of the U.S. District Court for the Middle District of Florida.
The United States filed its civil injunction complaint in September 2014 against Kerny Pierre-Louis, Rodriguez and Victor. Rodriguez and Victor managed and supervised employees at LBS Tax Services stores, which were owned by Pierre-Louis. According to the complaint, both Rodriguez and Victor were paid, in part, based on a percentage of the gross tax preparation fees that the locations charged its customers. The government alleged that they, and return preparers they supervised, prepared fraudulent federal tax returns on which they falsely claimed the earned-income credit and bogus education credits, report improper filing statuses, inflated federal income tax withholdings and fabricated business expenses.
The lawsuit against Pierre-Louis, Rodriguez and Victor is one of eight suits filed by the United States in Florida against Walner Gachette, the founder and franchisor of LBS Tax Services, and numerous other LBS franchisees and managers. The other cases, as well as the claims against Pierre-Louis in this case, remain pending.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Former Hattiesburg Public Works General Manager Pleads Guilty to Federal Kickback SchemeRead the Press Release
Hattiesburg, Miss. - John T. "Tim" Pittman, 54, a former Public Works General Manager for the City of Hattiesburg, pled guilty today in U.S. District Court to conspiracy involving a kickback scheme which defrauded the U.S. Department of Agriculture, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, and Acting Special Agent in Charge Patrick Munday with the USDA Office of Inspector General.
Pittman’s father, T.L. Pittman, Jr., owns multiple apartment complexes throughout the State of Mississippi which were financed through the USDA. T.L. Pittman, Jr., through his company Century Management, Inc., hired a contractor to do work for one of his USDA-financed apartment complexes with the agreement that the contractor would kick back part of the contract to T.L. Pittman, Jr. Century Management then awarded various contracts to the contractor, who kicked back money to T.L. Pittman, Jr. and his son, John T. "Tim" Pittman for the awarding of such contracts.
Pittman will be sentenced by U.S. District Court Judge Keith Starrett on May 18, 2015, at 1:45 p.m. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the USDA Office of Inspector General. Assistant U.S. Attorney Mike Hurst is prosecuting the case.
Dubuque Man Pleads Guilty to Wire Fraud and Filing False Tax ReturnsRead the Press Release
Contact: Steve Young
A former Controller of a Dubuque company, who embezzled more $340,000 from the company, pled guilty today to one count of wire fraud and one count of filing false tax returns.
In a plea agreement, Michael Schute, age 50, from Dubuque, Iowa, admitted he embezzled the money from the company between 2008 until he was fired in April 2013. Schute embezzled the money by writing checks on the company bank account to pay personal credit cards and other bills. Schute then concealed this conduct by falsifying the company books to make it appear the funds were expended on company debts. When filing his tax returns for the tax years 2008 through 2013, Schute falsely concealed the funds he received from the embezzlement for his own personal use. Illegal income is taxable.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Schute remains free on bond pending sentencing. Schute faces a possible maximum sentence of 23 years’ imprisonment, a $500,000 fine, or twice the amount of funds embezzled, $200 in special assessments, and up to four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service and the Dubuque Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-cr-1003-LRR.
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District Man Sentenced to Nearly 13 Years in Prison for Stabbing and Assaulting VictimsDefendant Stabbed One Victim in Dark Alley, Later Lunged at Officer with KnifeRead the Press Release
WASHINGTON - Nathaniel Cousart, 53, of Washington, D.C., has been sentenced to 12 years and seven months in prison on charges stemming from a stabbing and assault in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Cousart was found guilty by a jury on Sept. 10, 2014, in the Superior Court of the District of Columbia, of aggravated assault while armed, assault with a dangerous weapon, and carrying a dangerous weapon. He was sentenced on Feb. 5, 2015 by the Honorable Patricia A. Broderick. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Sept. 13, 2013, at about 7:30 p.m., Cousart followed a man he knew into a dark alley off the 1500 block of North Capitol Street NW and stabbed him four times in the back, neck and shoulder area while demanding the victim’s property. The stabbing caused extreme pain, and lasting damage to the victim’s nerves and shoulders. The victim escaped and ran away while the defendant pursued him.
The victim eventually collapsed on the steps of an apartment building, where Special Police Officers working at the building came to assist. One officer called out to Cousart, who turned to flee. The officer gave chase, and Cousart turned and went towards the officer with his knife drawn. When the officer drew his service weapon, Cousart fled again, this time ditching the knife into a sewer drain. The Metropolitan Police Department (MPD) responded, and with the help of the D.C. Water and Sewer Authority, recovered the knife and other evidence.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Todd McClelland and Assistant U.S. Attorneys James Petkun and Nihar Mohanty. Finally, he expressed appreciation for the work of Assistant U.S. Attorney John Marston, of the Felony Major Crimes Trial Section, who prosecuted the matter.
15-016District Man Found Guilty of Felony ChargesRead the Press Release
For Shooting at Special Police Officer
-Defendant Threatened Victim, Left, and Returned to Fire at HimWASHINGTON – Jerrell Jackson, 29, of Washington, D.C., has been found guilty by a jury of numerous charges stemming from an incident in which he threatened and subsequently shot at a Special Police Officer, U.S. Attorney Ronald C. Machen Jr. announced today.
Jackson was found guilty on Feb. 4, 2015, in the Superior Court of the District of Columbia, of a total of eight counts, including assault on a police officer while armed, assault with a dangerous weapon, threats, and various firearms offenses. He is to be sentenced on April 3, 2015 by the Honorable Todd E. Edelman.
According to the government’s evidence, on July 27, 2014, at about 5:10 p.m., Jackson was involved in a verbal dispute with another man in the courtyard area of the Benning Courts Apartment Complex in the 1700 block of Benning Road NE. The victim, who was working as a Special Police Officer at the apartment complex, called for back-up assistance to clear the area and avoid an impending physical altercation. Jackson then accused the victim of being scared. When the victim denied being scared, Jackson threatened him by saying words to the effect of, “Oh, you’re not scared? Be here when I get back.”
Jackson left the apartment courtyard on foot. Approximately 15 minutes later, he returned on a bicycle and fired one shot at the victim, who was not injured. Jackson then fled the scene on the bicycle and was arrested pursuant to an arrest warrant on Aug. 4, 2014.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond, Victim/Witness Advocate Jennifer Clark, Information Technology Specialist Anisha Bhatia, and Assistant U.S. Attorneys Jennifer Kerkhoff and Michael Truscott. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Christine Macey, of the Felony Major Crimes Trial Section, who prosecuted the matter.
15-015District Court Enters Permanent Injunction Against Oregon Company and Executive to Stop Distribution of Unapproved New Drugs and Adulterated ProductsRead the Press Release
The U.S. District Court for the District of Oregon entered a permanent injunction against James G. Cole Inc., of Hood River, Oregon, its president James G. Cole and its former general manager Julie D. Graves to prevent the distribution of unapproved and misbranded drugs and adulterated dietary supplements, the Department of Justice announced today.
The company manufactures various products that have been distributed under the name “Maxam Nutraceutics.” The department filed a complaint in the U.S. District Court for the District of Oregon, at the request of the U.S. Food and Drug Administration (FDA), alleging that the company’s dietary supplements are manufactured under conditions that are inadequate to ensure the quality of its products and that its products are unapproved and misbranded drugs. Pursuant to the permanent injunction entered by the court on Feb. 5, the defendants are prevented from distributing the company’s products until the defendants comply with the requirements set forth in the court’s order.
U.S. District Court Judge Michael H. Simon held that the company’s Maxam products are unapproved new drugs under the federal Food, Drug, and Cosmetic Act (FDCA). The court based its decision in part on the company’s claims that the products could treat autism, Alzheimer’s, HIV and Fibromyalgia, among other diseases.
“The American public needs to have confidence that products promoted for the treatment of disease are safe and effective,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The failure of manufacturers of dietary supplements to have procedures in place to ensure the quality and identity of all ingredients that go into their products poses a serious risk to public health.”
The court also held that the company’s products were misbranded drugs because the products failed to bear adequate directions for use for the purposes for which the drugs were intended – in the case of the company’s products, to treat diseases such as autism. The court noted that such directions for use, including dosages, warnings and side effects, must be premised on clinical data derived from scientifically controlled investigation, and that the defendants had “conducted no controlled studies and collected no clinical data” regarding their products.
The court also found that the company’s products were adulterated dietary supplements because they were not produced in compliance with federal good manufacturing practice regulations. Under the FDCA, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. A series of inspections of the company’s manufacturing facility, conducted by the FDA beginning in 2012, revealed, among other things, that the defendants did not have specifications for the ingredients in their products and did not conduct appropriate tests on incoming shipments of components used in the manufacture of their products to determine the identity, strength, purity and composition of each component. The court found that the state of the defendants’ manufacturing practices was such that the defendants have “no idea what goes into their products.”
The permanent injunction prohibits the defendants from manufacturing or distributing their products unless and until they take a number of steps to come into compliance with federal law, including obtaining FDA approval of their drug products or working with an expert to remove all claims from their product labels, promotional materials and websites that evidence an intended use for their products as drugs, and coming into full compliance with good manufacturing practice regulations.
“Along with our partners at the FDA, we are committed to protecting our citizens from threats to their health and safety,” said U.S. Attorney Amanda Marshall of the District of Oregon. “Everyone who deals in products that affect people’s health must comply with federal law.”
The government was represented by Trial Attorney Ann Entwistle of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Sonia Nath and Associate Chief Counsel for Enforcement Son Nguyen of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division. Assistance was also provided by the U.S. Attorney’s Office for the District of Oregon.
Delta Blues Drug Kingpin Sentenced to Life Plus 10 Years ImprisonmentRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Demetrius Colbert, age 39, of Marianna, was sentenced to life imprisonment plus ten years in prison for his leadership of a drug conspiracy and for firearms violations, including assault on a federal officer. On June 6, 2014, Colbert was convicted following a one-week jury trial of the following offenses in the Superseding Indictment in Case No. 4:11CR00210-1:
Count One – Conspiracy to Distribute and to Possess with Intent to Distribute Cocaine and Crack Cocaine, 21 U.S.C. § 846
Count Four – Use of a Telephone in Furtherance of a Drug Trafficking Crime, 21 U.S.C. § 843(b)
Count Five – Use of a Telephone in Furtherance of a Drug Trafficking Crime, 21 U.S.C. § 843(b)
Count Twenty-One – Felon in Possession of a Firearm, 18 U.S.C. § 922(g)(1)
Count Twenty-Two – Assault of a Federal Officer, 18 U.S.C. § 111
Count Twenty-Three – Discharging a Firearm in Connection with a Drug Trafficking Crime and a Federal Crime of Violence, 18 U.S.C. § 924(c)
At the Sentencing Hearing on February 5, 2015, U.S. District Court Judge James M. Moody Jr. found that Colbert was responsible for trafficking at least 200 kilograms of cocaine and at least 21 kilograms of crack cocaine during the conspiracy period of January 2010 to October 2011. Judge Moody also found that Colbert was and organizer and leader of the drug conspiracy. Judge Moody further found that Colbert committed his offense as part of a pattern of conduct engaged in as a livelihood. Judge Moody applied an enhancement to Colbert’s advisory sentencing guideline range to reflect that Colbert caused serious bodily injury to a federal law enforcement officer when Colbert fired at agents serving a search warrant at his home in Marianna on October 11, 2011. Judge Moody then sentenced Colbert to life imprisonment plus ten years. As a result of Colbert’s convictions, he forfeited the following property seized from his home and vehicles on October 11, 2011: $424,519 in U.S. currency and jewelry valued at $32,750.
“Every day there are unsung heroes who put their lives on the line to protect and safeguard the citizens of Arkansas,” stated Thyer. “These valiant men and women in law enforcement are dedicated to keeping our cities and towns safe for all to enjoy. Now, because of the efforts of these heroes, Demetrius Colbert, a man with total disregard for the lives of others, including law enforcement, has learned the price to pay for his indifference is spending the rest of his life in prison.”
“Demetrius Colbert is a parasite whose contributions to our community include drugs and violence,” stated David T. Resch, Special Agent in Charge at the Federal Bureau of Investigation in Little Rock, “We appreciate the U.S. Attorney’s steadfast pursuit of justice. Arkansas is a better place with Demetrius Colbert in federal prison.”
The charges stemmed from multiple Organized Crime and Drug Enforcement Task Force (OCDETF) investigations collectively referred to as “Operation Delta Blues,” which focused on public corruption, drug trafficking, and unlawful firearms activities in the Helena-West Helena and Marianna, Arkansas, areas. The United States Attorney’s Office utilized sixteen court-authorized wiretaps over the course of Operation Delta Blues. Approximately 800 federal, state, and local law enforcement personnel participated in the October 11, 2011 arrests.
The Colbert case was investigated by the FBI, the Drug Enforcement Administration, and the Arkansas State Police. It was prosecuted by Assistant United States Attorneys Julie Peters, Benecia Moore, and Michael Gordon.
The sole remaining defendant from the original Delta Blues cases, Milton Johnson, is currently set for trial before Judge Moody in Case No. 4:11CR00209 JM on February 17, 2015.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Complaint Unsealed Charging Two with Making Terrorist HoaxRead the Press Release
Oklahoma City, Oklahoma – Today, Sanford C. Coats, United States Attorney for the Western District of Oklahoma, and Jim Finch, FBI Special Agent in Charge, announced that a criminal complaint was unsealed this afternoon charging ISRAA JAFAR ALI, 19, from Oklahoma City, and SAJJAD HUSSEIN AL FEHAIDAH, 23, from Saudi Arabia, with making a false report of a purported suicide bomber targeting an unspecified Christian church near the University of Central Oklahoma (UCO) campus in Edmond, Oklahoma.
According to the complaint, on September 19, 2014, Ms. Ali made a 911 call to the Edmond Police Department using the cell phone of her boyfriend, Mr. Al Fenaidah. During that call, Ms. Ali reported that a terrorist act may occur in Edmond. Specifically, according to the complaint, Ms. Ali identified an international student who she claimed to have overheard talking about committing a suicide bombing by strapping on a vest with nails that would explode and kill people at an unspecified Christian church near the UCO campus. According to the complaint, Mr. Al Fenaidah assisted Ms. Ali by allowing her to use his cell phone to make the false report and by looking up biographical information about the student who was wrongfully accused of making the threat.
Based on the 911 call and report, the FBI’s Joint Terrorism Task Force vigorously investigated the threat until it was determined that it was, in fact, a hoax.
Mr. Al Fenaidah was arrested yesterday and appeared in U.S. District Court this afternoon in Oklahoma City. He was ordered detained until a detention/preliminary hearing on Monday, February 9, 2015, at 1:30: p.m.
Ms. Ali was arrested today in Nashville, Tennessee, and appeared in U.S. District Court in Nashville. She was ordered to appear in U.S. District Court in Oklahoma City on February 20, 2015.
If convicted, each defendant faces up to five years in prison and a $250,000 fine. Reference is made to the criminal complaint and affidavit for further information. The public is reminded this is simply a charge and both defendants are presumed innocent unless and until they are convicted in court.
The FBI and United States Attorney’s Office would like to thank the Edmond Police Department and the following members of the FBI Joint Terrorism Task Force who assisted in the investigation: the Oklahoma City Police Department, the Oklahoma Highway Patrol, the United States Secret Service, and the Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Ed Kumiega.
Cleveland Man Indicted for Preparing and Filing False Tax ReturnsRead the Press Release
A 33-count federal indictment was filed charging a Cleveland man with preparing dozens of false tax returns and falsely claiming more than $133,000 in refunds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.
Sean Houston, 46, was indicted on one count of conspiracy to defraud the government and 32 counts of making false, fictitious or fraudulent claims.
Nikita Griffin, 39, of Atlanta, was also indicted on one count of conspiracy to defraud the government.
“As we enter tax season, this indictment should serve as a reminder to those who would file fraudulent tax returns and claim money to which they aren’t entitled,” Dettelbach said.
“Law-abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal taxes,” Enstrom said. “We will continue to partner with the U.S. Attorney’s Office and investigate the criminals who engage in such brazen and fraudulent conduct.”
In 2010, Houston prepared false tax returns, listing fictitious wages and income-tax withholdings when he knew no wages had been earned and no taxes withheld. The returns also claimed “making work pay” tax credits to which they were not entitled, according to the indictment.
Houston also sent the filed tax returns to the Santa Barbara Bank and Trust in San Diego in order to obtain refund anticipation loans, from which he took preparation fees. In the course of the scheme, Houston claimed refunds totaling $133,612 and obtained preparation fees totaling $9,605, according to the indictment.
Houston solicited Griffin to negotiate refund checks generated by the scheme. Griffing deposited three checks into a bank account he controlled and helped third parties negotiate additional checks, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by IRS-CI.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cedar Rapids Man Pleads Guilty to Attempting to Obstruct Forfeiture ProceedingsRead the Press Release
Contact: Steve Young
A man who was convicted of multiple fraud, aggravated identity theft, and tax charges in 2013, pled guilty today to attempting to obstruct the federal government’s efforts to forfeit his real property to be used as restitution for his fraud victims.
Randy Beltramea, age 50, from Cedar Rapids, Iowa, pled guilty to four counts of attempting to obstruct justice.
At the plea hearing, Beltramea admitted he attempted to impede and hinder the federal government’s efforts to forfeit a real estate development, the proceeds from which were to be used to pay restitution to the victims of his fraud. Beltramea pled guilty to all four counts of the indictment. The indictment alleged that Beltramea owned a housing development project near Mt. Vernon, Iowa, called Castlerock Estates, which consisted of approximately 80 acres of land, part of which had been plotted into separate lots with road and utility access.
In 2013, Beltramea was indicted by a federal grand jury, which charged him with a number of offenses including fraud charges related to obtaining money from people under false pretenses and using the funds for, among other things, funding the Castlerock development. The indictment gave notice that the United States intended to forfeit, among other property, all of the real property constituting the Castlerock development. In October 2013, Beltramea pled guilty to eight of the sixteen counts of the indictment. In December 2013, the court entered a preliminary order of forfeiture on the real property constituting the development.
Unbeknownst to the United States or the court, while the indictment and forfeiture proceedings were pending against Beltramea he sold two lots in the development for approximately $160,000. He also filed a mortgage, in his mother’s name, on the remaining lots claiming the property had been pledged as collateral for a loan from his mother in excess of $300,000. This conduct was intended to impede the government’s ability to forfeit the Castlerock development and use the proceeds to pay the victims of his fraudulent conduct.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Beltramea remains in custody pending sentencing. Beltramea faces a possible maximum sentence of 80 years’ imprisonment, a $1 million fine, $400 in special assessments, and up to 12 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-0095-LRR.
Carbondale Man Indicted for Making Threats Against Social Security Administration EmployeeRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Steven Vizcarrondo, 22, of Carbondale, Illinois, was indicted by a federal grand jury on February 5, 2015, on a federal charge stemming from a murder threat directed toward a Social Security Administration employee in Carbondale, Illinois, on January 27, 2015. A conviction on this charge of Influencing Federal Official by Threat carries maximum penalties of ten years in federal prison, three years supervised release, a $250,000 fine and a $100 special assessment.
Authorities arrested Vizcarrondo in Carbondale on February 5, 2015. The United States District Court for the Southern District of Illinois in Benton ordered that Vizcarrondo be held without bond pending his trial, which has yet to be set.
An indictment is a formal charge against a defendant. 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 investigated by the Federal Protective Service and the Social Security Administration, Office of the Inspector General. Assistance was provided by the Carbondale Police Department. The case is being prosecuted by Special Assistant United States Attorney John C. Constance.
Canadian Man Sentenced to 262 Months in Prison for $130 Million Ponzi SchemeRead the Press Release
SAN FRANCISCO – On February 4, 2015, William Wise was sentenced to 262 months in prison for a Ponzi scheme he perpetrated against over 1,200 victims who were seeking safe investments in certificates of deposit (CDs), announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Wise pleaded guilty on September 12, 2012. According to the Plea Agreement, Wise operated a scheme from at least as early as 1999 until approximately 2009 to sell CDs issued by three entities—Millennium Bank, United Trust of Switzerland, and Sterling Bank and Trust. Millennium Bank was a bank licensed in St. Vincent and the Grenadines, and was represented to be a wholly-owned subsidiary of United Trust of Switzerland, which was purportedly a private financial services company in Switzerland.
CDs were sold primarily out of offices established by Wise in Napa, Calif., and Raleigh, North Carolina, and staffed by various salespeople overseen by Wise. CD purchasers were told that Sterling Bank and Trust was an international private bank managed and administered in Switzerland. Millennium Bank, United Trust of Switzerland, and Sterling Bank and Trust were all controlled by Wise, though he enlisted others to aid him in selling CDs to his victims.
The CDs issued by Millennium Bank, United Trust of Switzerland, and Sterling Bank and Trust all promised CD purchasers safe investments with guaranteed rates of return—sometimes over 16%—that were allegedly based on overseas investments. In fact, CD purchasers’ funds were not used for overseas investments that generated the promised returns. The funds were instead primarily used to enrich Wise and to make interest payments to earlier CD purchasers. According to the Plea Agreement, Wise caused the sale of more than $129.5 million worth of fraudulent CDs from 2004 to 2009, causing investors to suffer actual losses of more than $75 million. He spent approximately $50 million himself, purchasing, among other things, a private plane and a luxury property in St. Vincent and the Grenadines.
Wise, 64, previously of Raleigh, North Carolina, was indicted by a federal grand jury on February 21, 2012, with one count of conspiracy, in violation of 18 U.S.C. § 1349; twelve counts of mail fraud, in violation of 18 U.S.C. § 1341; three counts of wire fraud, in violation of 18 U.S.C. § 1343; and one count of money laundering, in violation of 1957. Wise was also charged in a separate indictment originating the Eastern District of North Carolina with one count of tax evasion, in violation of 26 U.S.C. § 7201. Wise pleaded guilty to all counts.
The sentence was handed down by the Honorable Edward M. Chen, U.S. District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release, and scheduled a hearing for April 22, 2015, at 2:30 pm, to determine a restitution amount. The defendant is in custody and will begin serving the sentence immediately.
Benjamin Kingsley and Robin Harris are the Assistant U.S. Attorneys in the Northern District of California who are prosecuting the case, with the assistance of Beth Margen and Jessica Meegan. Assistant U.S. Attorney Evan Rikhye handled the charge that originated in the Eastern District of North Carolina. The prosecution is the result of a joint investigation with the IRS-Criminal Investigation and the Federal Bureau of Investigation.
California Woman Arrested on Federal Heroin and Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Graciela Meraz, 38, of Chula Vista, Calif., entered a not guilty plea this morning in federal court in Albuquerque, N.M., to a criminal complaint charging her with heroin and methamphetamine trafficking offenses. Meraz remains in custody pending trial which has yet to be scheduled.
Meraz was arrested on Feb. 4, 2015, and was charged with possession of heroin and methamphetamine with intent to distribute. According to court documents Meraz was arrested by DEA agents at the Greyhound Bus Station in Albuquerque after a consensual search of her baggage revealed that she was carrying more than a kilogram of heroin and more than four kilograms of methamphetamine.
If convicted on the charges in the criminal complaint, Meraz faces a maximum statutory sentence of not less than ten years and not more than life in prison. Charges in criminal complaints are merely accusation, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Nicholas J. Ganjei is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
California Meth Supplier Found Guilty in U.S. District CourtRead the Press Release
A federal jury in Billings convicted Mario Albert Villegas, a 32 year-old resident of Los Angeles, California, of Conspiracy to Possess Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. § 846, and Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. § 841(a)(1) and 18 U.S.C. § 2. U.S. District Judge Susan Watters set Villegas’s sentencing for June 11, 2015.
Prosecutors presented evidence that in September of 2013, agents from the Federal Bureau of Investigation, Internal Revenue Service, Montana Division of Criminal Investigations, Department of Homeland Security and Eastern Montana HIDTA in Billings, Montana began investigating a drug trafficking organization headed by Casey Fleming and Jason Neel responsible for shipping methamphetamine from California to the Billings and Roundup, Montana areas. Fleming was a Taft, California, resident and Neel was incarcerated at the California State Prison in Corcoran, California, where he continued to run the organization from behind bars. Initially, agents introduced an undercover agent into the organization who made controlled purchases of methamphetamine from Fleming and other distributors in Montana. Between January 23, 2014, and March 22, 2014, the Court authorized the interception and recording of conversations from the phones of Fleming, Neel, and another co-conspirator. During the course of the wiretap investigation, agents intercepted numerous calls between Fleming and Neel in which they detailed their plans to obtain methamphetamine from sources of supply in California and have it shipped to Montana.
During the trial, the government introduced numerous conversations between Fleming and Villegas in which Villegas planned to sell methamphetamine to Fleming. The evidence established that Villegas sold Fleming one pound of methamphetamine to Fleming in December of 2013 and Villegas arranged for a drug courier to provide Fleming with two pounds of methamphetamine at a McDonald’s in Taft, California on January 23, 2014. The evidence showed that Villegas also had a drug courier provide Fleming with one pound of methamphetamine at the Camarillo Outlets in Camarillo, California.
Prosecutors presented evidence that Fleming had other sources ship the methamphetamine through the mail to a residence in Roundup. Once the methamphetamine arrived in Roundup, Fleming instructed distributors in Montana to sell the methamphetamine and deposit the proceeds of the sale of methamphetamine into his bank account. Fleming described that the methamphetamine he purchased from Villegas was “fronted,” that is, Fleming first obtained the methamphetamine from Villegas and then paid Villegas the full amount he owed with the proceeds of the sale of the meth. Several co-conspirators from both California and Montana testified at trial and explained their role in the shipment of methamphetamine from California to Montana. Fleming and other co-conspirators in California identified Villegas as the main source of supply for the organization’s methamphetamine from December of 2013 through February of 2014. The government also called several agents and law enforcement officers from Montana and California who surveilled and monitored the narcotics transactions.
Broward County Residents Plead Guilty to Accessory After the Fact in Violent Armed Carjacking Spree and HomicideRead the Press Release
Two Broward County residents pled guilty to one count of accessory after the fact for their respective roles in assisting carjacker evade law enforcement.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
According to the criminal information and statements made in court, between December 2, 2014 and December 3, 2014, Tequilla Ingram, 33, and Jonathan Marion, 23, both of Ft. Lauderdale, Florida, assisted Gregory Moore with evading law enforcement after he committed a violent armed carjacking spree and a homicide.
On December 2, 2014, Gregory Moore, 35, of Ft. Lauderdale, Florida, carjacked numerous vehicles in order to get to his former girlfriend’s place of employment in Hallandale Beach, Florida. Once he arrived in Hallandale Beach and located his former girlfriend inside of her vehicle, Moore opened fire striking her multiple times and killing her passenger. Moore committed several additional carjackings to flee the scene and was eventually apprehended by the FBI in West Palm Beach on December 3, 2014.
Gregory Moore was charged by indictment and is currently set for trial April 6, 2015 before U.S. District Court Judge Kenneth Marra in West Palm Beach, Florida.
Knowing that Moore had committed these crimes, Ingram picked Moore up in her vehicle, provided him with a safe haven, and checked Moore into a hotel room the night of December 2, 2014 using a false name. Ingram returned to retrieve Moore on December 3, 2014 and further assisted him in evading law enforcement until Moore was ultimately arrested. Ingram pled guilty today before U.S. District Judge Beth Bloom, and is scheduled to be sentenced on April 24, 2015, at 10:30 a.m.
Knowing that Moore had committed these crimes, Marion provided Moore with use of a cellular phone and safe haven for several hours while law enforcement conducted a massive manhunt. Marion pled guilty on January 27, 2015 before U.S. District Judge James Cohn, and is scheduled to be sentenced on April 24, 2015, at 9:00 a.m.
At sentencing, Ingram and Moore face up to 15 years in prison on the accessory after the fact count.
Mr. Ferrer commended the investigated efforts of the FBI South Florida Violent Crimes Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Broward Sherriff’s Office, Hallandale Beach Police Department, Florida Highway Patrol, West Palm Beach Police Department and Lauderhill Police Department. The case is being prosecuted by Assistant U.S. Attorney Jodi Anton.
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.
Brothers with Springfield, Joplin, Webb City Businesses Plead Guilty to $6.7 Million K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two brothers who owned businesses in Springfield, Joplin and Webb City, Mo., pleaded guilty in federal court today to their roles in a $6.7 million conspiracy that involved the distribution of approximately 2,253 kilograms of synthetic marijuana, commonly referred to as K2.
Jeremy W. Elliott, 42, of Rogers, Ark., and his brother, Travis L. Elliott, 38, of Springfield, Mo., pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to conspiracy to commit mail fraud.
Travis Elliott was the registered agent of “A Head of Our Times, LLC.,” which ran a retail store in Springfield. He employed a manager and others at this store. Jeremy Elliott was the owner of “Mr. Nice Guy,” which operated retail locations in Joplin and Webb City.
Both Travis and Jeremy Elliott admitted they engaged in a conspiracy between Oct. 29, 2009, and Nov. 6, 2012, to distribute (via FedEx) Kryp2nite products, which were falsely labeled as “incense” and “not for human consumption,” but in reality contained synthetic marijuana that was intended for human consumption as a drug. Conspirators manufactured and distributed K2 to retail outlets in Springfield, Joplin, Webb City and elsewhere through a Springfield business, ThirdEye, Inc.
Joplin police officers seized Kryp2nite products from the “Mr. Nice Guy” store in Joplin on two occasions, including a seizure of 21.7 kilograms of synthetic marijuana on May 7, 2012.
Law enforcement officers also executed a search warrant at the “Mr. Nice Guy” store in Webb City on May 7, 2012. Records seized during the execution of the search warrant indicated that during the month of March 2012, the Webb City store sold $205,675 in inventory. Records indicated that during April 2012 the store sold $146,204 in inventory. Approximately 10.7 kilograms of synthetic marijuana was seized.
An employee at the Webb City location told officers that she knew people were ingesting the synthetic marijuana products she sold to them. She stated that employees were instructed not to sell synthetic marijuana to customers who overtly spoke of ingesting these products. This employee also admitted to smoking these products to get high.
Springfield police officers made undercover purchases of K2 from “A Head of Our Times” in Springfield. On June 12, 2012, police officers executed a search warrant at the business and seized approximately two kilograms of Kryp2nite, as well as records documenting the purchase and delivery of synthetic marijuana.
Officers observed signage in the store that read, “Incense, Sachets and Potpourri Blends are not for human consumption!” and “Talk of smoking it or otherwise using it illegally will result in the loss of the sale and you may be asked to leave. Thank you! @.” The products labeled as incense were located in proximity to smoking devices such as bongs and vaporizers.
Both Travis and Jeremy Elliott received shipments of Kryp2nite products from ThirdEye, a Springfield business owned by co-defendants Douglas K. Franklin, 56, and his son, Brandon D. Franklin, 28, both of Springfield, who also have pleaded guilty to their roles in the mail fraud conspiracy. Douglas and Brandon Franklin also pleaded guilty to participating in a money-laundering conspiracy related to conducting financial transactions involving the proceeds of unlawful activity, which were designed to conceal or disguise the nature, location, source, ownership and control of the proceeds.
Charges against Douglas Franklin’s daughter, Caitlyn E. Franklin, 26, of Springfield, were dismissed following a pre-trial diversion agreement. Co-defendant DeWayne T. Barnhart, 38, of Joplin, who managed the Webb City store, pleaded guilty to receiving and distributing misbranded drugs and was sentenced to a term of probation.
Under federal statutes, Travis and Jeremy Elliott are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These convictions are the result of a large-scale investigation by local, state and federal law enforcement agencies into the distribution of K2, the slang term for synthetic marijuana products. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the FDA Office of Criminal Investigations, IRS-Criminal Investigation, the Jasper County Drug Task Force, the Jasper County, Mo., Sheriff’s Department, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the South Central Drug Task Force, the Missouri State Highway Patrol, the Springfield, Mo., Police Department, the Newton County, Mo., Sheriff’s Department and the Greene County, Mo., Prosecuting Attorney’s Office.
Bradley County Man Sentenced to 262 Months for Aiding and Abetting the Distribution of MethamphetamineRead the Press Release
CHATTANOOGA, Tenn. – Timothy Joe Swallows, 39, of Cleveland, Tenn., was sentenced on Feb. 6, 2015, by the Honorable Curtis L. Collier, U.S. District Judge, to serve 262 months in prison. Swallows pleaded guilty in July 2014 to a federal indictment charging him with, among other things, aiding and abetting the possession with intent to distribute 50 grams or more of methamphetamine (actual).
According to the information on file with the U.S. District Court, on June 17, 2012, Timothy Swallows was taken into custody after a routine traffic stop in Bradley County revealed he was driving on a revoked license. The passenger in the vehicle, Amber Flowers, was also taken into custody on an outstanding warrant for her arrest. During the stop, two large bags of methamphetamine were recovered from Flowers. A subsequent search of the vehicle revealed syringes, digital scales, seven cell phones, cut straws, and $1,404 in cash. The amount of methamphetamine seized totaled 84.7 grams with a 94.3% purity level. Swallows stated he was helping Flowers sell the methamphetamine that was seized following the traffic stop. Flowers previously pleaded guilty to the same offense and was sentenced to serve 77 months in prison.
Swallows was classified as a “career offender” under federal law because he had four prior drug trafficking convictions, including three separate convictions for distributing methamphetamine in Bradley County, Tennessee within the last 10 years. His federal sentence reflected his prior state convictions and the risk of harm his conduct posed to society. Judge Collier recommended that Swallows participate in a drug treatment program while he is in prison.
The indictment and subsequent conviction of Swallows was the result of an investigation conducted by the Drug Enforcement Administration and Bradley County Sheriff’s Office. Assistant U.S. Attorney Michael D. Porter represented the United States.
Bloomfield Post Office Robber Gets Prison SentenceRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 35 months imprisonment, followed by three years supervised release, and restitution in the amount of $569 on his conviction of robbing a U.S. Post Office, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Joseph R. Filbert, 52.
According to information presented to the court, Dec. 14, 2011, Filbert robbed a U.S. Postal clerk at the Bloomfield Post Office of $569 in U.S. Currency, by flashing what appeared to be a gun and demanding money. Still photos from the Post Office surveillance camera, together with video from a surveillance camera at a nearby business, enabled Postal Inspectors to obtain positive identification of both the car Filbert was operating and of Filbert. Execution of a search warrant resulted in the recovery of the shoes Filbert is believed to have worn in the Post Office robbery.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Filbert.
Banker Pleads Guilty to EmbezzlementRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANCES CARRINGTON, age 70, a resident of Ponchatoula, pled guilty today to a one-count Bill of Information for bank larceny.
According to court documents, CARRINGTON, who was employed as a branch operations officer at First Guaranty Bank in Ponchatoula, attempted to steal nearly $65,000, belonging to and in the care, custody, and control of First Guaranty Bank, a bank whose deposits are insured by the Federal Deposit Insurance Corporation.
CARRINGTON faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing for May 14, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Jon Maestri is in charge of the prosecution.
Attorney General Holder Statement on the 2015 National Security StrategyRead the Press Release
Attorney General Eric Holder released the following statement today on President Obama’s 2015 National Security Strategy:
“With the 2015 National Security Strategy, President Obama has laid out a credible and timely vision of strong and sustainable American leadership on a global scale. This strategy is predicated on strength, both at home and around the world, and founded on the timeless values the American people have always held sacred. In concert with our global partners – through patience, persistence, and a clear sense of purpose – this strategy will drive our efforts to confront threats, to reduce risks, and to advance our core interests of security, prosperity, and a rules-based international order.”
Asst. Bank Branch Manager Sentenced to Prison for Embezzling FundsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 6 months’ imprisonment with three years of supervised release on her conviction of bank embezzlement, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Diana Phillips, 41.
According to information presented to the court, Phillips was an Assistant Branch Manager and Head Teller at First National Bank. Over a period of roughly three years from 2008-2011, Phillips embezzled approximately $120,000 from the bank by processing fictitious general ledger transactions, making it appear in bank records as though she was processing refunds to bank customers. The defendant then deposited the funds into an account owned by a family member and later transferred the money from the family member's account into accounts controlled by her and/or her husband.
Prior to imposing sentence, Judge Conti stated that the defendant’s embezzlement extended over a long period of time and was methodical and continuous.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Phillips.
Allentown Man Sentenced to More Than 24 Years for Sex TraffickingRead the Press Release
PHILADELPHIA - Deshawn King, 35, of Allentown, PA, was sentenced today to years 293 months in prison for running a sex trafficking operation, incorporating heroin as a means of punishing and controlling the victims. King pleaded guilty on January 10, 2014 to conspiracy to commit sex trafficking of women by force, fraud, and coercion; two counts of sex trafficking by force, fraud, or coercion; and two counts of attempted sex trafficking by force, fraud, and coercion. King’s co-defendant, Daniel Blount, also pleaded guilty and was sentenced on July 15, 2014 to 20 years in prison.
Between October 2012 and April 2013, King and Blount recruited and enticed heroin-addicted women to perform commercial sex acts at their direction by promising a continuous supply of money and heroin. The defendants used the website “backpage.com” to post sexually explicit photos of the women in advertising them for commercial sex acts. “Johns” (men wanting to have sex with the recruited women) called the telephone number posted in the ad and met the women at hotels designated and paid for by the defendants. King and Blount provided heroin to the women as a means of control or withheld the heroin as a form of punishment, causing the women to suffer withdrawal; used physical force, including a taser, and threats of force against the women to cause or attempt to cause them to continue performing commercial sex acts; and received and kept all the proceeds generated by the women engaging in commercial sex acts. The defendants also threatened to kill at least two of the victims and took turns raping at least one of the victims.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered 15 years of supervised release, a $1,000 fine and a $500 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from the Allentown Police Department and the Office of the Lehigh County District Attorney. It was prosecuted by Assistant United States Attorney Sherri A. Stephan.