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Thursday 11 December 2014
Orville Williams Sentenced to 36 Months in Prison for CarjackingRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Orville Williams, 24, to 36 months in prison for carjacking, United States Attorney Ronald W. Sharpe announced.
Williams was arrested on December 3, 2013 as part of the investigation of carjackings in the area of the Donoe Bypass on St. Thomas. On April 17, 2014, he and co-defendant Troy Normil were charged in an Amended Information with carjacking, robbery, assault and weapons charges. On April 23, 2014, Williams pleaded guilty to carjacking.
In addition to a prison term, Williams was sentenced to three years of supervised release, a $100 special assessment and ordered to pay restitution.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and prosecuted by Assistant U.S. Attorney Nelson L. Jones.
Nicaraguan National Sentenced in Federal Court for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NORWIN CASTELLON-LOPEZ, age 32, a citizen of Nicaragua, was sentenced today after having pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced CASTELLON-LOPEZ to 14 months imprisonment followed by two years of supervised release, and a $100 special assessment.
According to court documents, on or about July 29, 2014, CASTELLON-LOPEZ, reentered the United States after having been previously removed on December 22, 2010.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
New Orleans Woman Charged with Theft of Bank FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GAIL TEAGUE, 48, of New Orleans, was charged today in a Bill of Information with one count of defrauding Ochsner Federal Credit Union.
According to the Bill of Information, from approximately 2000 until approximately May 2013, TEAGUE was employed by Ochsner Federal Credit Union, first as a part-time employee and subsequently as office manager at the credit union. Specifically, in or around January, 2013, TEAGUE created a fictitious loan in the name “William Morris.” This loan was disbursed in the form of an official credit union check made payable to a local automobile dealership. The check was redeposited into the credit union. TEAGUE then withdrew $34,000 cash from the vault. Credit Union auditors interviewed TEAGUE and she signed a hand written confession on May 17, 2013, acknowledging that she stole $34,000.
If convicted, TEAGUE faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release.
The U. S. Attorney’s Office reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this case. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Napoleonville Woman Charged with Making False StatementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHERKISSA JACKSON, 42, of Napoleonville, was charged today in a one-count Indictment with making false statements.
According to the Indictment, JACKSON filed an application with the Department of Homeland Security Federal Emergency Management Agency on September 3, 2008, claiming a loss for a trailer located at 3342 Back Marais Street, Napoleonville, Louisiana. On October 31, 2008, JACKSON received a wire transfer in the amount of $28,800 based on her claim of a loss to the trailer. However, the year before the storm, on January 6, 2007, JACKSON sold the trailer to another party as evidenced by a bill of sale, and thus, did not own the trailer on September 1, 2008. On or about February 23, 2012 in the Eastern District of Louisiana, the defendant JACKSON lied to a special agent of the Office of the Inspector General, Department of Homeland Security, namely, JACKSON told the agent that she owned the trailer at 3342 Back Marais Street, Napoleonville, at the time Hurricane Gustav impacted Napoleonville, when in truth and in fact, she had sold the trailer on January 6, 2007.
If convicted, JACKSON faces a possible maximum sentence of five years imprisonment, and/or a fine of $250,000 and up to three (3) years of supervised release.
The U. S. Attorney’s Office reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this case. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Marrero Woman Sentenced for Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LISA ROBERTS, age 48, of Marrero, was sentenced for theft of government funds.
U.S. District Judge Jane Triche Milazzo sentenced ROBERTS to three years probation and restitution in the amount of $49,339 to the Social Security Administration.
According to court documents, ROBERTS’ sister was receiving social security widow’s benefits before her death. When she died, these benefits should have terminated. However, ROBERTS continued to receive the benefits, which were directly deposited into a bank account accessed by ROBERTS, who converted the funds to her personal use knowing that she was not entitled to receive those benefits.
U.S. Attorney Polite praised the work of the U.S. Social Security Administration- Office of Inspector General in investigating this matter. Assistant United States Attorney Loan “Mimi” Nguyen was in charge of the prosecution.
Many Resident Pleads Guilty to Distribution of MethamphetamineRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a man from Many pleaded guilty Wednesday to distributing methamphetamine.
Marcus Johnson, 37, of Many, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of distribution of methamphetamine. According to evidence presented at the guilty plea, law enforcement agents conducted controlled buys of methamphetamine from Johnson on November 4, 7, and 12 of 2013. Johnson would conduct his methamphetamine sales at various retail stores in Many.
Johnson faces up to 20 years in prison, not less than three years of supervised release, and a $1 million fine.
The DEA and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Mansfield Man Charged with Attempted Bank RobberyRead the Press Release
A federal grand jury returned a two-count indictment charging Joseph A. Smith, Jr., age 25, of Mansfield, with attempted armed bank robbery and brandishing a weapon during and in relation to a crime of violence, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on November 12, 2014, Smith Jr. attempted to rob the Directions Credit Union located at 460 South Diamond Street, Mansfield, Ohio, and brandished a firearm.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Mansfield Police Department and the Federal Bureau of Investigation’s Mansfield Office. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
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.
Manhattan U.S. Attorney Announces Charges Against Doctor and 10 Other Individuals Involved in Illegal Distribution of More Than One Million Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent-in-Charge of the U.S. Drug Enforcement Administration’s New York Division (“DEA”), and William J. Bratton, the Police Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of an Indictment against 11 participants in a massive illegal drug distribution ring involving the prescription painkiller oxycodone. As detailed further below, the distribution ring operated out of purported medical clinics in Manhattan and the Bronx, including the office of MOSHE MIRILISHVILI, a Board certified, state licensed doctor, who alone wrote more than 13,000 medically unnecessary prescriptions for oxycodone in a two-year period, resulting in the unlawful distribution of nearly 1.2 million oxycodone tablets. The scheme also involved drug traffickers who oversaw crews of “patients” sent into the clinics to obtain medically unnecessary oxycodone prescriptions so that the pills could be obtained and resold, and clinic staff who profited by selling access to MIRILISHVILI and the fraudulent prescriptions he wrote.
Nine of the 11 defendants were arrested this morning in connection with the charges unsealed today and are expected to be presented before U.S. Magistrate Judge Kevin N. Fox later this afternoon. Defendants Ganeene Goode and Kevin Frye remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Moshe Mirilishvili violated the oath of his profession and flouted the law to write more than 13,000 medically unnecessary prescriptions for oxycodone. He and his co-defendants, motivated by greed, allegedly conspired to enrich themselves by flooding the illicit market for this highly addictive and dangerous drug.”
DEA Special Agent-in-Charge James C. Hunt said: “As alleged, these defendants are drug dealers playing doctor. They use nicknames, roles and an organizational hierarchy that mimics street drug trafficking crews. Instead of providing legitimate medical examinations or treatment, Dr. Mirilishvili and his office staff allegedly took payments from drug chiefs, drug crews and ‘patients’ in exchange for oxycodone prescriptions used to fuel the spread of opioid abuse throughout New York City.”
NYPD Commissioner William J. Bratton said: “Dr. Mirilishvili not only made millions in illegal profits, he contributed to the growing addiction of oxycodone. Today’s arrests will help prevent more illegally prescribed prescription pain killers from reaching our streets and will hopefully improve quality of life for the residents who live on the same blocks as these pseudo medical facilities. I want to thank the investigators, agents and prosecutors involved in bringing this drug distribution network to justice.”
The following allegations are based on the Indictment unsealed today in Manhattan federal court:
Oxycodone is a highly addictive, prescription-strength narcotic used to treat severe and chronic pain conditions. Every year more than 13 million Americans abuse oxycodone, with the misuse of prescription painkillers such as oxycodone leading to as many as 500,000 annual emergency room visits. Oxycodone prescriptions have enormous cash value to street level drug dealers, who can fill the prescriptions at most pharmacies and resell the resulting pills at vastly inflated rates. Indeed, a single prescription for 90 30-milligram oxycodone pills has an average resale value in New York City of $2,700 or more.
From approximately January 2012 until December 2014, the drug distribution ring operated at various purported medical clinics in Manhattan and the Bronx, including the office of the defendant MOSHE MIRILISHVILI (the “Clinic”), where MIRILISHIVILI, a Board certified, state licensed doctor, wrote thousands of medically unnecessary prescriptions for large quantities of oxycodone in exchange for cash payments. MIRILISHVILI typically charged $200 in cash for “patient visits” that typically involved little, if any, actual examination and almost always resulted in the issuance of a prescription for a large quantity of oxycodone, typically 90 30-milligram tablets.
Virtually none of these “patients” had any medical need for oxycodone, nor any legitimate medical records documenting an ailment for which oxycodone would be prescribed. Instead, most of these individuals were members of “crews” – that is, they were recruited and paid by drug traffickers (the “Crew Chiefs”), to pose as “patients” in order to receive medically unnecessary prescriptions. The Crew Chiefs then obtained these prescriptions and arranged for them to be filled at various pharmacies so that the oxycodone pills thereby obtained could be resold on the streets of New York.
Various Clinic employees participated in and profited from the scheme, charging Crew Chiefs cash fees for scheduling “patient visits” necessary to obtain these oxycodone prescriptions (the “Office Staff”). The Office Staff also profited by creating fake documents such as MRI reports purporting to reflect injuries or urinalysis reports ostensibly documenting that the patient was taking rather than selling the oxycodone, all of which MIRILISHVILI would frequently request in an effort to avoid the attention of law enforcement.
In total, between October 2012 and December 2014, MIRILISHVILI wrote more than 13,000 medically unnecessary prescriptions for oxycodone, comprising nearly 1.2 million oxycodone tablets with a street value of $36,000,000 or more. MIRILISHIVILI collected more than $2.6 million in fees for “doctor visits” during this time period.
To maximize their profits, many of the Crew Chiefs involved in this scheme also sent their “patients” to see other doctors operating out of similar fraudulent medical clinics, including a clinic on Southern Boulevard in the Bronx, New York, and a clinic in Upper Manhattan. Between January 2012 and the present, doctors at these clinics wrote more than 35,000 oxycodone prescriptions, virtually none of them medically necessary, resulting in the unlawful distribution of millions of oxycodone tablets.
All of the defendants are charged with one count of conspiracy to distribute and possess with intent to distribute oxycodone. This offense carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
A chart containing each defendant’s age and residence information is attached. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Bharara praised the investigative efforts of the Drug Enforcement Administration’s Tactical Diversion Squad (Group TDS-NY), which led this two-year investigation, and thanked the New York State Department of Financial Services and the Hackensack, New Jersey, Police Department for their assistance in the investigation. DEA’s Group TDS-NY consists of agents and officers from the U.S. Drug Enforcement Administration, the New York City Police Department, the Town of Orangetown Police Department, and the Westchester County Police Department. Mr. Bharara also noted that the investigation is ongoing.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Edward B. Diskant and Brooke E. Cucinella are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Mirilishvili, Moshe et al. Indictment
Man Sentenced to 9 Years in Prison for Armed Robbery of Belleville Liquor StoreRead the Press Release
Case is one of many brought as a result of the United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsRoderick Taylor, 23, was sentenced to just over 9 years in prison today on a three-count indictment charging him with Conspiracy to Commit Interference with Commerce by Robbery, Interference with Commerce by Robbery, and Use of a Firearm During a Crime of Violence, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. The Armed Robbery count arises from the federal Hobbs Act, which makes it a crime to obstruct, delay or affect interstate commerce by robbery, and is used by United States Attorney Wigginton as a way to combat armed robbery in the Southern District of Illinois. Following his prison sentence, Taylor will be on federal supervised release for 5 years. Taylor was also ordered to pay restitution in the amount of $10,000. Taylor has been in custody since his arrest on July 12, 2013.
Documents filed in US District Court establish that on July 12, 2013 Taylor went with his two co-defendants, Timothy Collier and Charmonequette Reynolds, to Arena Liquor located at 105 S. Belt E, Belleville, Illinois with the plan to commit a robbery. While Reynolds waited in the car, Taylor and Collier entered Arena Liquor both armed with a firearm. Collier and Taylor pointed the two firearms at the two individuals working in the store and demanded money from the cash registers as well as personal belongings from the victims. Taylor and Collier left the liquor store with a large sum of United States currency and a cell phone belonging to one of the victims. They returned to the getaway vehicle and the three fled from the scene. A witness driving near Arena Liquor noticed Collier and Taylor running from the store and followed them as they ran several blocks to the getaway vehicle. The witness recorded the license plates of Reynolds’ vehicle and gave the number to Belleville Police officers. Reynolds and Taylor were apprehended within hours of the robbery. During a recorded interview with law enforcement, Taylor admitted his involvement in the planning and participation in the armed robbery of Arena Liquor and identified Collier and Reynolds as the other two individuals involved.
This case was investigated by the Belleville Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Main Street Pharmacy Co-Owner Pleads Guilty to Criminal Violation of the Federal Food, Drug, and Cosmetic ActRead the Press Release
Jackson, Tenn. – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, and FDA Commissioner Margaret A. Hamburg, M.D, announced today that Main Street Family Pharmacy, LLC, a compounding pharmacy in Newbern, Tennessee, and the company’s co-owner, David A. Newbaker, each pleaded guilty to a misdemeanor criminal violation of the federal Food, Drug, and Cosmetic Act late last week.
In early 2013, the United States Department of Health and Human Services Food and Drug Administration (“FDA”) began an investigation into adulterated Methylprednisolone Acetate (“MPA”), a steroid used to treat pain in human beings. The FDA is authorized by federal law to enforce the Federal Food, Drug, and Cosmetic Act, which, among other things, ensures that drug products are safe and effective for their intended uses and are not adulterated.
According to the information and statements made in open court, on or about May 22, 2013, the FDA collected samples of MPA from Logan Primary care, a clinic in Herrin, Illinois. Invoices obtained from the clinic revealed the source of the MPA obtained was from Main Street Family Pharmacy, LLC, in Newbern, Tennessee. The FDA’s Denver Laboratory tests indicated the MPA sample contained bacterial contaminants.
Newbaker, a state-licensed pharmacist, was responsible for, and actively directed, Main Street Family Pharmacy, LLC’s drug compounding activities. His duties on February 7, 2013 included oversight of employee training and the quality control of sterile drugs compounded by Main Street.
Chief United States District Judge J. Daniel Breen sentenced Newbaker to 12 months of probation, and ordered Newbaker and Main Street to each pay a fine of $25,000.
The Court also entered a civil consent decree of permanent injunction against Main Street, Newbaker and the company’s other co-owner, Christy R. Newbaker. The consent decree prohibits Main Street and the Newbakers from manufacturing, holding, and distributing drug products until the company comes into compliance with the FD&C Act and its regulations, among other requirements. This action further protects the health of the American public by ensuring that Main Street and the Newbakers comply with the law.
“This prosecution shows there are high standards for pharmacists to meet to protect the public, and serious consequences for those who fail to meet them,” stated U.S. Attorney Stanton. “No one is above the law, including those that wear white lab jackets.”
“Americans expect and deserve safe, high-quality drug products, yet Main Street produced and shipped unapproved drugs that were contaminated, and put patients at risk for serious infection,” said FDA Commissioner Hamburg. “The FDA’s enforcement actions against Main Street and its owners reflect our commitment to using all appropriate authorities to protect the public health.”
The case was investigated by the FDA’s Office of Criminal Investigations. Assistant United States Attorney Matt Wilson represented the United States of America.
Lowell Man Convicted of Aiding and Abetting the Illegal Purchase of FirearmsRead the Press Release
CONCORD, NEW HAMPSHIRE – Lawrence Madsen of Lowell, Massachusetts was convicted, after a jury trial in United States District Court for the District of New Hampshire on six counts of aiding and abetting the illegal purchase of firearms at various southern New Hampshire federally licensed firearms dealers, announced United States Attorney John P. Kacavas.
The case was investigated by Federal Bureau of Alcohol, Tobacco, Firearms and Explosives agents and officers, Dan Futrell, Richard Donahue, Eric Kotchian and Michael Bergeron. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
The trial evidence showed that Madsen, who could not legally buy firearms in Massachusetts, asked his New Hampshire friend, Brett Crawford, to purchase the firearms on his behalf in exchange for a payment of $100 for each gun purchased. In October and November 2013, Crawford purchased eight hand guns on six occasions for Madsen. On each occasion, Madsen was present and identified the guns which he wanted Crawford to buy. When Crawford made the purchases using Madsen's money, Crawford lied on a federal form required for the sale of a firearm by stating that he was purchasing the firearms for himself when, in fact, he was buying them for Madsen. The evidence further established that, following the illegal purchase of these firearms, Madsen sold them on the street in Lowell.Lost City Man Sentenced to 60 Months for Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JERRY WAYNE MORRISON, JR., a/k/a "HOOTIE," age 34, of Lost City, Oklahoma, was sentenced to 60 months imprisonment, followed by 3 years of supervised release for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charge arose from an investigation by the District 27 District Attorney’s Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The defendant was indicted in November, 2013 and pled guilty in July, 2014.
The Indictment alleged that on or about November 30, 2012, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one Taurus, model PT709 Slim, 9mm caliber pistol, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Justice Department Settles Lawsuit Against Equity Transportation Co., Inc. to Enforce Employment Rights of United States Army National Guard MemberRead the Press Release
The United States Justice Department’s Civil Rights Division and U.S. Attorney Patrick Miles Jr. announced today that a settlement has been reached with Equity Transportation Inc. (ETC) resolving claims that ETC violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), by failing to reemploy U.S. Army National Guard Member Johnathan Dunn following his military deployment.
According to documents filed today in the United States District Court for the Western District of Michigan, Dunn is a Sergeant in the United States Army National Guard serving with the 230th Sustainment Brigade DET1 out of Smyrna, Tennessee. In August 2012, Dunn notified his employer, ETC, that he was going to be deployed for one month of active-duty military service in September 2012 with the Army National Guard’s Counter-Drug Taskforce. The department alleges that Dunn served his active-duty and was released honorably after four weeks. Upon his release from active-duty on Sept. 27, 2012, Dunn notified ETC that he was ready to return to work immediately. Instead of promptly re-employing Dunn, ETC advised him that his employment had been terminated while he was on leave because of too many absences from work. The department alleges that not only did ETC fail to reemploy Dunn upon his return from military leave, but that the employer has also failed to reemploy him since that time. Under the terms of the settlement, filed as a consent decree, ETC has agreed to pay $11,000 as back pay and liquidated damages to Dunn.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.
“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustices experienced by Mr. Dunn when they return from military service,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Department of Justice, through its enforcement of USERRA, strongly supports the rights of service members in reclaiming their rightful positions in the workforce after they complete their military service to our country.”
“Members of the United States Army National Guard are often called to make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Miles. “When they are deployed in the service of our country, their employment rights must be protected. Our office and the entire Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice Civil Rights Division and the U.S. Attorney’s Office for the Western District of Michigan, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Justice Department Requires Divestiture of Commercial Air Springs Business in Connection with Continental AG Acquisition of Veyance Technologies, Inc.Read the Press Release
The Department of Justice announced today that it will require the divestiture of the North American commercial vehicle air springs business of Veyance Technologies, Inc. in order for Continental AG to proceed with its proposed $1.8 billion acquisition of Veyance. The department said that, without the divestiture, the proposed acquisition likely would leave just two dominant firms and risk higher prices and decreased service for commercial vehicle air springs customers in North America.
The Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department's competitive concerns alleged in the lawsuit.
“The proposed acquisition would have eliminated one of only three significant suppliers of air springs for commercial vehicles in North America,” said Bill Baer, Assistant Attorney General in charge of the department’s Antitrust Division. “Today’s proposed settlement will ensure competitive marketplaces for both North American commercial vehicle manufacturers and vehicle owners who purchase replacement air springs.” Baer also noted the close cooperation between the department and foreign competition colleagues. “We are pleased to have worked closely with our counterparts in Canada, Brazil and Mexico to coordinate our analyses and the formulation of our respective remedies.”
Commercial vehicle air springs are used in trucks, trailers and buses to provide stability to the suspension system, keep the tires in contact with the road and provide comfort and reduced driver fatigue in cabins and seats.
According to the complaint, the proposed acquisition would have reduced the number of suppliers of air springs to North American commercial vehicle manufacturers from three to two. The creation of a virtual duopoly would have facilitated anticompetitive coordination between the two remaining suppliers and risked price increases and reductions in the quality of service by limiting availability or delivery options to original equipment manufacturers. Similarly, the proposed acquisition would have reduced the number of significant suppliers of replacement air springs to commercial vehicle owners, which likely would have lessened competition in the North American aftermarket for commercial vehicle air springs.
Under the terms of the proposed consent decree, Continental must divest Veyance’s North American air springs business, which includes air spring manufacturing and assembly facilities in San Luis Potosi, Mexico; research, development, engineering, and administrative assets in Fairlawn, Ohio; and certain other tangible and intangible assets.
In addition to the department’s competitive concerns relating to commercial vehicle air springs, the department was concerned that the proposed acquisition would reduce competition in the market for automotive air conditioning barrier hose (“barrier hose”), which is used to carry refrigerant in automotive air conditioning systems. Veyance manufactures barrier hose. Continental does not itself manufacture barrier hose, but does manufacture hose assemblies that incorporate barrier hose supplied by a third party. Because Continental had an exclusive supply agreement with the only significant firm that competes with Veyance in the manufacture and sale of barrier hose in North America, the proposed acquisition raised additional competitive concerns. Continental, however, has waived the exclusivity requirement in its supply agreement, so its supplier now may sell air conditioning hose products to any third party.
The department’s Antitrust Division, the Canadian Competition Bureau, the Administrative Council for Economic Defense in Brazil, and the Federal Competition Commission in Mexico cooperated closely throughout the course of their respective investigations.
Continental is a corporation organized and existing under the laws of Germany, with headquarters in Hanover, Germany. Continental is a leading German automotive manufacturing company, specializing in tires, brake systems, and components, and it is one of the world’s largest producers of rubber products. Its annual sales for 2013 were approximately $40 billion. ContiTech North America Inc., of Montvale, New Jersey, is a part of ContiTech AG, a division of Continental. ContiTech North America produces and sells parts, components, and systems, including commercial vehicle air springs, for the automotive engineering industry in North America.
Veyance, incorporated in Delaware, is headquartered in Fairlawn, Ohio. Veyance manufactures engineered rubber products for heavy-duty industrial, automotive, and military applications. Veyance also produces and sells automotive and commercial vehicle parts, including commercial vehicle air springs, in North America. In 2013, Veyance had $2.1 billion in sales.
As required by the Tunney Act, the proposed consent decree, along with the department's competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Johnson Brothers Found Guilty of Conspiracy to Commit FraudRead the Press Release
Fargo – U.S. Attorney Timothy Q. Purdon announced that on December 11, 2014, a Federal Trial Jury found Aaron A. Johnson and Derek M. Johnson, guilty on charges of conspiracy to commit fraud in connection with Federal Crop Insurance and Federal Crop Disaster Programs; making false statements to the United States Department of Agriculture, acting through the Risk Management Agency (RMA); and, making false statements to federal law enforcement authorities. The two brothers farmed potatoes near Northwood, ND from at least as early as 2002 until about January 20, 2010, and thereafter. The guilty verdicts were returned at the conclusion of a two week jury trial.
The brothers’ scheme involved intentionally destroying and damaging potato crops, in order to obtain federal crop insurance indemnities and federal crop
disaster benefits, over a period of years. As part of the scheme, the brothers intentionally poisoned their potato seed during planting. They intentionally destroyed or neglected their growing crops in the field and intentionally destroyed potatoes in storage. The brothers applied concentrated nitrogen fertilizer and septic system products such as Rid-X and Flush to their potato seed prior to planting; they intentionally destroyed their growing potatoes using cultivator equipment; intentionally left potatoes in the field during harvest. They added septic system products such as Rid-X and Flush to water and sprayed it on top of potatoes in storage; purchased and resold unused farm chemicals that were intended to protect the crop but never used; they sprayed water on fields in order to fool neighbors and others into thinking they cared for the crop; they added frozen potatoes to the top of the stored potato pile and used a portable heater to increase warehouse temperatures in order to regulate the rate of potato Soft Rot; they did all of this in advance of filing claims for lost potato production and stored potato crops over a period of years. The brothers and their farming operations received millions of dollars in federal crop insurance indemnities, subsidized crop insurance premiums and federal disaster benefits.The Johnson brothers face up to 30 years in prison and millions of dollars in fines, restitution and criminal forfeiture. The Honorable Chief Judge Ralph R. Erickson has set sentencing hearing and forfeiture hearings for both defendants beginning March 9, 2015, at 1:30 pm in United States District Court in Fargo, ND.
The case was investigated by the United States Department of Agriculture and the Risk Management Agency
Assistant U.S. Attorney Clare Hochhalter and AUSA Nick Chase prosecuted the case.
Jacksonville Man Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Nicodemus Darnell Jefferson (40, Jacksonville) with failing to register as sex offender. If convicted, he faces up to 10 years in federal prison. Jefferson has been in custody since his arrest on September 30, 2014.
According to the indictment, on December 17, 1998, Jefferson was convicted of criminal sexual conduct with a minor in Charleston County, South Carolina. Between March 17, 2014, and September 30, 2014, Jefferson moved from Maryland to Florida. He failed to register in Florida as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Investment Advisor Pleads Guilty to Defrauding Investors for Millions of DollarsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of SEAN MEADOWS, 41, for using his financial planning and asset management firm, Meadows Financial Group (MFG), operated a Ponzi scheme and fraudulently obtained millions of dollars from dozens of victims. The defendant pleaded guilty on December 10, 2014, before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minn., to Mail Fraud, Wire Fraud, and Money Laundering offenses.
According to his guilty plea and documents filed in court, MEADOWS operated MFG, through which he sold insurance and investment products to clients in Minnesota, Indiana, Arizona, and elsewhere. From 2007 until April 2014, MEADOWS successfully solicited a total of at least $10 million from more than 50 clients for a purported investment managed by MFG. The defendant falsely told victims that he would use their funds to purchase bonds, real estate, or other legitimate third-party investments.
MEADOWS lured victims into removing funds from their retirement and other savings accounts by promising high rates of returns – up to 10 percent annually – when, in fact, he did not invest their funds and did not have a legitimate means by which to make interest payments. Instead, MEADOWS used funds from new investors to make interest and/or principal repayments to existing investors.
According to his guilty plea and documents filed in court, MEADOWS used the illicit proceeds of the Ponzi scheme to pay personal expenses, including: making “salary” payments to himself; making payments to his spouse; paying expenses on personal investment properties; paying personal credit card bills; purchasing a vehicle for himself; traveling to Las Vegas; gambling at various casinos and online; and spending more than $100,000 at adult entertainment establishments in Minnesota and Las Vegas.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Langner and Melinda Williams.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau, the United States Postal Inspection Service, and the Internal Revenue Service- Criminal Investigation Division.
Defendant Information:
SEAN MEADOWS, 41
Eden Prairie, Minn.
Convicted:
• Wire Fraud, 7 counts
• Mail Fraud, 3 counts
• Transaction Involving Fraud Proceeds, 1 countHudson County Contractor Indicted on Additional Charges of Paying Bribes to Fire OfficialRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man was indicted today on an additional charge of paying thousands of dollars in bribes to a fire official in exchange for the elimination of outstanding fines and penalties on certain buildings that had fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 48, of West New York, N.J. was also charged by a federal grand jury with two counts of violating the Travel Act. Coca had been arrested May 20, 2014, by special agents of the FBI and charged by complaint with one count of paying bribes to the fire official for the West New York Bureau of Fire Prevention.
According to documents filed in this case and statements made in court:
Coca was the owner of a general contracting company located in West New York. There were two buildings in West New York with outstanding fines for fire code violations – one building had approximately $14,500 in fines and the other had approximately $8,730,000 in fines and penalties.
Coca paid the fire official cash bribes to reduce or eliminate the outstanding fines. For the first building, Coca paid a $2,000 cash bribe to the fire official to eliminate the outstanding $14,500 in fines. For the second building, Coca wrote paid a $5,000 cash bribe to the fire official, in return for the fire official reducing the $8,730,000 in outstanding penalties, thus making the amount due to the West New York Bureau of Fire Prevention only the initial fine amount of $5,000.
The charge is punishable by a maximum potential penalty of ten years in prison and a maximum fine of $250,000 or twice the gain or loss arising out of the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-436Defense counsel: Zak Aljaludi Esq., Union City, N.J.
Coca, Victor Indictment
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE LUIS JOSE LUIS MAYORGA-LEMUS, age 24, a citizen of Honduras, was sentenced yesterday after having pled guilty to a one-count indictment for illegal reentry of a previously removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced MAYORGA-LEMUS to 3 months imprisonment followed by one year of supervised release, and a $100 special assessment.
According to court documents, on or about August 28, 2014, MAYORGA-LEMUS, reentered the United States after having been previously removed on August 3, 2011.
U.S. Attorney Polite praised the work of the ICE Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Hammond Man Indicted for Violations of the Federal Controlled Substances Act and the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RYAN BINNER, age 42, of Hammond, was charged today in a four-count Indictment for violations of the Federal Controlled Substances Act and the Federal Gun Control Act. In Counts One and Two of the Indictment, BINNER was charged with distributing a quantity of methamphetamine. In Count Three, BINNER was charged with possessing with intent to distribute five grams or more of methamphetamine. In Count Four, BINNER was charged with possessing a short-barreled shotgun in furtherance of a drug trafficking crime.
Counts One and Two of the Indictment each carry a maximum term of imprisonment of twenty years, a fine of up to $1,000,000, and a minimum of three years of supervised release following any term of imprisonment. Count Three carries a minimum term of imprisonment of five years and a maximum term of imprisonment of forty years, a fine of up to $5,000,000, and a minimum of four years of supervised release following any term of imprisonment. Court Four carries a minimum term of imprisonment of ten years, a fine of up to $250,000, and a maximum of five years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, with assistance from the Tangipahoa Parish Sheriff’s Office and the Hammond Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Grove City Woman Sentenced in Illegal Alien Case for Failing to File an Income Tax ReturnRead the Press Release
COLUMBUS – Jennifer A. Quintana, 38, of Grove City, Ohio, owner and operator of Quintana Construction, was sentenced to two years of probation, four months of house arrest, 50 hours of community service and was ordered to pay $61,787.32 in restitution to the Internal Revenue Service and a $5,000 fine. The company pleaded guilty and was sentenced for assisting illegal aliens in this country. Jennifer Quintana pleaded guilty to on one count of willfully failing to file a federal income tax return with the IRS. Quintana Construction previously agreed with the government to cease doing business as a labor contracting firm for the construction industry.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Special Agent in Charge James Vanderberg, U.S. Department of Labor, Office of Inspector General, and Special Agent in Charge Marlon Miller, Immigration and Customs Enforcement (ICE) announced the sentences handed down today by U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Quintana Construction, which was operated out of Jennifer Quintana’s residence, is a construction labor contracting business that provided labor for framing assembly and apartment/condominium construction in the greater Columbus, Ohio area. Jennifer Quintana is married to Felix Quintana. Felix Quintana is a citizen of the country of Mexico and is documented to work in the U.S. Felix Quintana organized and supervised the workforce for Quintana Construction and was considered the on-site supervisor.
From January 2005 through November 2009, Quintana Construction knowingly used the labor of undocumented illegal aliens to do construction work on various job sites. The investigation revealed that in 2007, 15 undocumented illegal aliens were utilized by Quintana Construction and in 2008, 14 undocumented illegal aliens were used. For each year, the illegal aliens were the primary work force used by Quintana Construction. The undocumented illegal alien employees had no authorization to seek or maintain gainful employment in the U.S.
Jennifer Quintana submitted false forms to the IRS stating that workers were sub-contractors of Quintana Construction with valid taxpayer identification numbers, when in fact she knew they were undocumented illegal alien workers.
In 2007, Jennifer Quintana filed 18 Forms 1099-MISC with the IRS on behalf of Quintana Construction which reported nonemployee compensation paid to sub-contractors. Of these 18 Forms 1099-MISC, 15 were rejected by the IRS for not having matching names and taxpayer identification numbers. In addition, of the 18 Forms 1099-MISC, 10 of them had also been rejected by the IRS in a prior year. Upon acknowledgement of these rejected Forms 1099-MISC and receipt of the IRS Form CP2100, which reports such rejections, Quintana Construction was obligated to begin backup employment tax withholdings for those individuals, reporting such backup withholdings on a Form 945, Annual Return of Withheld Federal Income Tax, and was obligated to pay to the IRS any applicable collected backup withholdings, which Jennifer Quintana failed to do.
For tax year 2008, Quintana Construction, by and through Jennifer Quintana, paid wages in the form of non-employee compensation to her employees totaling $220,669.00, which was subject to backup withholding of federal income taxes totaling $61,787.32.
"Business owners who use undocumented workers create an unfair business advantage over there competitors, especially by not withholding and remitting income taxes to the Internal Revenue Service," said Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation by IRS, the Department of Labor, and ICE, and Senior Litigation Counsel Douglas W. Squires, who is representing the United States in this case.
Grand Marais Investment Advisor Sentenced to 60 Months in Prison for $5.7 Million Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MICHAEL ROBERT DRILLING, 47, to 60 months in federal prison for devising and executing a multi- million dollar investment fraud scheme. DRILLING pleaded guilty on April 17, 2014, to one count of securities fraud. He was sentenced on December 10, 2014, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis.
According to the defendant’s guilty plea and documents filed in court, from May 2009 through March 2014, DRILLING, defrauded 13 investment advisory clients for more than $5.7 million. Through his company, Financial Advisory Partners LLC, DRILLING developed personal relationships with these clients and convinced them to entrust to him the management of their investment funds. In order to conceal the theft, DRILLING created phony accounts for each of his clients using a financial planning website, eMoneyAdvisor.com, that made it appear as if investment funds had been placed in real investment vehicles.
In total, DRILLING stole more than $5.7 million in investment funds from thirteen of his clients. He lied to his clients, telling them that their money was placed in a larger pool of funds that could be managed more efficiently. Instead, DRILLING used the stolen funds for his own personal and business expenses. DRILLING also lost millions of dollars at casinos.
This case resulted from an investigation conducted by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Timothy C. Rank.
Defendant Information:
MICHAEL ROBERT DRILLING, 47
Grand Marais, Minn.
Convicted:
• Securities Fraud, 1 count
Sentenced:
• 60 months in prison
• Restitution in the amount of $5,778,877.88Fort Hall Women Pleads Guilty to Assault on Federal OfficerRead the Press Release
POCATELLO - Caitlin Eagle, 24, of Fort Hall, Idaho, pleaded guilty yesterday in United States District Court to assaulting a federal officer, U.S. Attorney Wendy J. Olson announced.
On February 18, 2014, Fort Hall police were dispatched to an area in Fort Hall after a report of shots fired. The caller said the persons involved were dressed in black and were running from the area. The responding officer arrived in the area and saw a person in a black coat. The officer tried to talk with the person, but she continued walking away from the officer. The person, later identified as Eagle, gave the officer a false name and was uncooperative. The officer smelled a strong odor of an alcoholic beverage on her person, a violation of Fort Hall tribal law, and the officer attempted to arrest her. As the officer tried to handcuff her, she became combative and struck the officer in the face several times. The officer was able to handcuff Eagle and with the help of another officer was able to get Eagle into the police car. The injured officer was treated at the hospital for abrasions on his cheek and nose.
An assault on a Fort Hall police officer is punished as an assault on a federal officer under federal law. The charge of assault on a federal officer is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Eagle is scheduled to be sentenced on March 11, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Former Usps Employee Sentenced to 3 Years in Federal Prison for Trafficking Drugs He Stole from the MailRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWARD HOGAN, 38, of Waterbury, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 36 months of imprisonment, followed by three years of supervised release, for trafficking cocaine and marijuana that he stole from the U.S. Mail.
This matter stems from a federal investigation into the use of the mails to transport narcotics from Puerto Rico to the greater Waterbury area.
According to court documents and statements made in court, Edward Hogan was employed by the U.S. Postal Service as a supervisor of customer service assigned to the Plaza Station Post Office in Waterbury. From approximately January 2012 to August 2013, Hogan used his position with the U.S. Postal Service to profile packages that he believed contained illegal drugs by making note of the originating address, destination address, size of the package and value of the postage. Upon identifying a package that he suspected contained narcotics, he would steal the package from the mail and bring it to his residence or the residence of his brother, Justin Hogan, where they would open the package and extract the drugs. Edward Hogan would then reseal the empty package and deliver it to the destination.
The brothers distributed the stolen drugs to third parties for profit.
Through this scheme, Edward and Justin Hogan stole and then sold more than 100 pounds of marijuana and two kilograms of cocaine.
On November 9, 2013, law enforcement surveilled Edward Hogan as he intercepted a package containing approximately two kilograms of cocaine that was delivered to the Waterbury Main Post Office on Grand Street. He then transported the parcel to his residence. Justin Hogan arrived at the residence a short time later and opened the package in Edward Hogan’s presence.
On August 7, 2014, Edward Hogan pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of embezzlement of mail by a U.S. Postal Employee.
On the same date, Justin Hogan pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of receipt of stolen mail matter. On December 4, 2014, he was sentenced to 24 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the U.S. Postal Service – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Seguin Businessman Pleads Guilty to Accepting SNAP Benefits for Prohibited ItemsRead the Press Release
In San Antonio today, the former owner of J.M. Food Mart in Seguin, Texas, admitted to collecting approximately $275,000 from a scheme to trade Supplemental Nutrition Assistance Program (SNAP) benefits for ineligible items announced United States Attorney Robert Pitman.
Appearing before United States Magistrate Judge John Primomo this morning, 55-year-old Aijaz Aslam pleaded guilty to one count of wire fraud. By pleading guilty, Aslam admitted that from November 2009 until May 2013, he conducted materially fraudulent transactions by selling ineligible items such as alcohol and tobacco products to SNAP beneficiaries using their Lone Star Cards at the point of sale. Aslam also admitted that he fraudulently traded SNAP benefits for cash while generally charging SNAP beneficiaries up to double the amount of cash received.
Aslam faces up to 20 years in federal prison. He is currently on bond pending sentencing scheduled for March 2, 2015, before United Stated District Judge David A. Ezra.
This case was investigated by the U.S. Department of Agriculture (USDA). Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.Former Radio Host John Balyo Sentenced to 40 Years in Federal Prison for Child ExploitationRead the Press Release
GRAND RAPIDS, MICHIGAN – Former local radio host John Balyo, 35, of Grand Rapids, was sentenced to 40 years in federal prison today for producing and possessing child pornography. Balyo pled guilty to the charges in July 2014 and, as part of the plea, agreed to cooperate fully with law enforcement in this investigation and the investigation into Ronald Moser. Moser pled guilty in August 2014 to producing and possessing child pornography and is scheduled for sentencing later this month. Balyo’s sentence included a lifetime of supervised release after prison. He will also have to pay $8,500 in restitution to the victims, who the judge recognized will be haunted by Balyo’s actions forever. In delivering the sentence, United States District Judge Robert Holmes Bell stressed the need for a “stern and certain judicial censure” for the “repulsive acts” Balyo committed.
Balyo met Moser online in November 2013, and the two immediately started emailing about a shared sexual interest in young boys. Balyo arranged to meet Moser and a 12-year-old boy three times in April and May 2014 in Kalamazoo and Battle Creek hotels. Balyo showed Moser other child pornography that he produced to prove that he was not a police officer. Balyo rented the rooms and brought a bondage kit containing zip ties, handcuffs, duct tape, rope, and rubber gloves. He also brought his professional grade photography equipment that he used for wedding photography. Balyo and Moser sexually assaulted and photographed the boy on all three occasions. Balyo gave the child a couple hundred dollars for his “modeling career.”
Moser was arrested in early June, through which investigators learned of Balyo. Balyo was arrested on June 20, 2014, while hosting a music festival in Gaylord, Michigan, with his radio station. That same day, Homeland Security Investigations (HSI) and Michigan State Police executed a search warrant at Balyo’s residence and searched his storage unit. Inside the storage unit, investigators found the bondage kit; video cameras; thumb drives; and various news clippings about missing children, children’s obituaries, and child pornography laws. Balyo gave his computer to a friend to hold onto shortly after Moser was arrested, and the friend turned it in to police upon learning of Balyo’s arrest. The computer contained multiple photographs of child pornography, including the ones from the Kalamazoo hotel room.
Balyo was convicted in Calhoun County of Criminal Sexual Conduct, First Degree, and was sentenced to 25-50 years in state prison. It is expected that he will serve his federal and state sentences simultaneously.
“Individuals who prey upon children and create sexually graphic images come from all walks of life, but they will be found and prosecuted. The U.S. Attorney’s Office in West Michigan and our state and federal partners are dedicated to protecting children. Predators should know that taking a single illegal picture exploiting a child means at least 15 years in a federal prison. They could also forfeit the computers, cameras, and even the houses that are used to sexually exploit children. We are committed to securing restitution for the victims to pay for the cost of medical care, counseling, and potential loss of income,” said U.S. Attorney Patrick Miles, Jr.
“Today’s significant sentencing marks an end to a case that tore at the very fabric of this community,” said Marlon Miller, Special Agent in Charge, HSI Detroit. “While no amount of jail time can adequately punish individuals involved in this type of depraved activity, my sincere hope is that the conclusion of this case can begin the healing process for all of those affected.”
The investigation was conducted by HSI, in cooperation with the Michigan State Police ICAC, Battle Creek Police Department, Kalamazoo Department of Public Safety, and Kent County Sheriff’s Department. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the federal case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
END
Former Insurance Company Employee to Serve Two Years in Prison and Pay over $168,000 in Restitution for Forging Checks and Filing False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – CARLA JO MIRES, of Oklahoma City, was sentenced today by United States District Judge Joe Heaton to serve 24 months in federal prison for embezzling money from her employer by forging checks and for filing a false tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Mires was also ordered to pay $168,386.89 in restitution to the IRS and the victims of her embezzlement scheme.
Mires worked for Union Mutual Insurance Company in the accounting office. She was charged with forging a check from Union Mutual that went to Mires’ personal account. Mires also filed a false tax return for 2008 by failing to report as income the money she had embezzled from her employer. Mires was charged by information on August 14, 2014. She pled guilty on September 3, 2014, and agreed to pay restitution to the IRS and for all the losses sustained by the victims relates to her embezzlement scheme. At the sentencing hearing, Judge Heaton ordered Mires to serve three years of supervised release after she completes her 24-month prison term. She was ordered to report to the Bureau of Prisons on January 13, 2015, to begin serving her prison sentence.
This case is the result of a joint investigation conducted by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Travis D. Smith.
- Former High School Teacher Sentenced for Possession Child Pornography
Former Glen Burnie Man Indicted on Robbery and Gun Charges in Connection with the August Robbery of an Exxon Gas StationRead the Press Release
Store Employee Shot and Killed During the Robbery
Baltimore, Maryland - A federal grand jury today has indicted Robin Tyrone Smith, age 26, formerly of Glen Burnie, Maryland, on robbery and gun charges related to the armed robbery of an Exxon Station convenience store on August 7, 2014.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Anne Colt Leitess.
“Partnerships led to this indictment, and we will continue to work together to hold accountable anyone who participated in this heinous act,” said Anne Arundel County Police Chief Timothy J. Altomare. “Hopefully, this sends a strong message to bad guys out there that we will form partnerships and utilize whatever resources are necessary to ensure that we bring about justice.”
According to the indictment and court documents the Exxon Station convenience store located at 7898 Ridge Road in Hanover, Maryland was robbed on August 7, 2014. The robber, who was captured on video surveillance, was armed with a gun and shot the store clerk during the robbery. The store clerk died at the scene. The indictment alleges that Smith is the person who committed the robbery of the Exxon and shot the employee.
According to court documents, investigators learned that the day before the Exxon robbery, a burglary occurred at an apartment located across the street from Smith’s residence. Items taken during the burglary included a .45 caliber Springfield Armory XD 45 firearm, .45 caliber hollow point ammunition, an X-box gaming system and games for the system. A review of the Exxon video established that the gun used in the robbery was the same model as was stolen in the apartment burglary the day before. Some of the stolen X-box games were pawned at a store located in the Arundel Mills Mall by an individual providing a Maryland State Identification card in the name of Robin Tyrone Smith. Video surveillance from the store shows a male wearing the same clothing as the person who committed the Exxon robbery. The investigation is continuing.
Smith faces a maximum sentence of 20 years in prison for the robbery; and life in prison for brandishing and discharging a firearm during a crime of violence. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled. Smith remains detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, and Anne Arundel State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Florida Man Sentenced to 37 Months in Prison for $433,000 FraudRead the Press Release
SAN FRANCISCO – Yesterday, Leigh Farrington Fiske was sentenced to 37 months in prison and ordered to pay restitution for a fraud scheme he perpetrated against small business owners and others seeking lines of credit around the nation, announced United States Attorney Melinda Haag, Special Inspector General for the Troubled Asset Relief Program Christy Romero, and FBI Special Agent in Charge David J. Johnson.
Fiske pleaded guilty on June 11, 2014. According to the Plea Agreement, Fiske and his partner, Michael Ramdat, operated a business referred to as “Corporate Funding Solutions.” The purported purpose of this business was to obtain credit lines for customers in exchange for a fee. Fiske’s role was to solicit customers, which he generally did over the Internet and by word of mouth. In reality, neither Fiske nor Ramdat ever intended to provide any services to their customers. Instead, they accepted approximately $433,000 from approximately 30 victims and never helped any of these victims obtain credit. Fiske admitted that he kept $102,000 of these payments for himself, and that he passed the remainder on to Ramdat.
Fiske, 51, of Tampa, Fla., was indicted by a federal grand jury on Nov. 21, 2013, on five counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy, in violation of 18 U.S.C. § 1349. Fiske pleaded guilty to all of the wire fraud counts. Pursuant to the Plea Agreement, the government dismissed the conspiracy charge at sentencing.
The sentence was handed down by the Honorable Edward M. Chen, United States District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release and restitution. The defendant will begin serving the sentence on March 31, 2015. Ramdat is scheduled to be sentenced on Dec. 17, 2014 before Judge Chen.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Jessica Meegan. The prosecution is the result of an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI.
Festus Man Found Guilty of Mailing Threatening CommunicationsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that William J. Mabie, 56, of Festus, Missouri, was found guilty today in federal district court in East St. Louis of three counts of Mailing Threatening Communications.
The Indictment in the case alleged that Mabie, who had been previously convicted of similar crimes in the Eastern District of Missouri, mailed three threatening letters to persons within the Southern District of Illinois. Mabie wrote two of the threatening letters in 2012 while he was incarcerated at the U.S. Penitentiary in Lompoc, California; he wrote the third threatening letter while he was incarcerated at the U.S. Penitentiary in Florence, Colorado.
Sentencing has been set for April 3, 2015, at 9:00 A.M. before Chief Judge Michael J. Reagan. The maximum penalties that can be imposed for each count of the Indictment are up to five years in prison, a $250,000 fine, or both, and three years’ supervised release.
The case was prosecuted by Assistant U.S. Attorney Stephen Clark and Special Assistant United States Attorney Jonathan Drucker. The case was investigated by the United States Postal Service.
Eleven People Charged in Takedown of Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Federal, state and local law enforcement authorities arrested eight people this morning in connection with a ring that allegedly trafficked heroin, powder cocaine and crack cocaine in the Atlantic City area, U.S. Attorney Paul J. Fishman announced.
In pre-dawn raids, agents and officers of the FBI, Drug Enforcement Administration, the Atlantic County Prosecutor’s Office, N.J. State Police and Atlantic City Police Department arrested eight people, seven of whom were charged by indictment with drug trafficking conspiracy; one of those defendants, Toye Tutis, is also charged with one count of money laundering along with Jazmin S. Vega, who is charged only with a single count of money laundering.
A ninth defendant is already in custody on other charges in Pennsylvania and two more defendants are being sought in California.
The defendants arrested in New Jersey today are scheduled to make their initial court appearance this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants are allegedly members of a drug trafficking organization that dealt in large quantities of heroin, powder cocaine, and crack cocaine in and around Atlantic City. All but one of the defendants (see chart below) are charged with a single count of conspiracy to distribute more than five kilograms of cocaine, more than 280 grams of crack cocaine, and more than one kilogram of heroin.
The conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry Wright, with the investigation leading to today’s arrests.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Name
Age
Residence
42
Pleasantville, New Jersey
Kareem A. Taylor
39
Atlantic City, New Jersey
Ivan Joel Cuellar-Naranjo*
28
Los Angeles, California
Francisco Alberto Rascon-Muracami
21
Lancaster County Prison, Pennsylvania
Phillip C. Horton*
49
Inglewood, California
Tozine N. Tiller
40
Absecon, New Jersey
Talib N. Tiller
32
Pleasantville
Kabaka Atiba
43
Atlantic City
Ronald D. Byrd
49
Pleasantville
John Wellman
39
Atlantic City
Jazmin S. Vega
40
Pleasantville
*Not in custody
14-435
Tutis, Toye et al., Indictment
Eleven People Charged in Takedown of Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Federal, state and local law enforcement authorities arrested eight people this morning in connection with a ring that allegedly trafficked heroin, powder cocaine and crack cocaine in the Atlantic City area, U.S. Attorney Paul J. Fishman announced.
In pre-dawn raids, agents and officers of the FBI, Drug Enforcement Administration, the Atlantic County Prosecutor’s Office, N.J. State Police and Atlantic City Police Department arrested eight people, seven of whom were charged by indictment with drug trafficking conspiracy; one of those defendants, Toye Tutis, is also charged with one count of money laundering along with Jazmin S. Vega, who is charged only with a single count of money laundering.
A ninth defendant is already in custody on other charges in Pennsylvania and two more defendants are being sought in California.
The defendants arrested in New Jersey today are scheduled to make their initial court appearance this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants are allegedly members of a drug trafficking organization that dealt in large quantities of heroin, powder cocaine, and crack cocaine in and around Atlantic City. All but one of the defendants (see chart below) are charged with a single count of conspiracy to distribute more than five kilograms of cocaine, more than 280 grams of crack cocaine, and more than one kilogram of heroin.
The conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry Wright, with the investigation leading to today’s arrests.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Name
Age
Residence
42
Pleasantville, New Jersey
Kareem A. Taylor
39
Atlantic City, New Jersey
Ivan Joel Cuellar-Naranjo*
28
Los Angeles, California
Francisco Alberto Rascon-Muracami
21
Lancaster County Prison, Pennsylvania
Phillip C. Horton*
49
Inglewood, California
Tozine N. Tiller
40
Absecon, New Jersey
Talib N. Tiller
32
Pleasantville
Kabaka Atiba
43
Atlantic City
Ronald D. Byrd
49
Pleasantville
John Wellman
39
Atlantic City
Jazmin S. Vega
40
Pleasantville
*Not in custody
14-435
Tutis, Toye et al., Indictment
East Liverpool Pair Face Crack Cocaine ChargesRead the Press Release
A federal grand jury returned a one-count indictment charging John N. Lockett III, age 38, and Kaylee Marie Lockett, age 25, both of East Liverpool, Ohio, with conspiracy to possess with intent to distribute and distribution of at least 280 grams of cocaine base, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that beginning at least as early as November 2013 and continuing through December 2013, John N. Lockett III and Kaylee Marie Locket conspired to possess and distribute cocaine base.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
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.
December Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 11 indictments charging 15 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Antonio Bertucci, age 23, of Macy, Nebraska, is charged in a three-count Indictment. Counts I and II of the Indictment charge the defendant with domestic assault by a habitual offender on or about October 13, 2014 and on or about October 2, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges Bertucci with interstate domestic violence on or about August 2, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment
* Angel G. Casarrubias, 21, of Lincoln, is charged in a two-count Indictment. Counts I and II of the Indictment charge the defendant with distribution of 50 grams or more of methamphetamine on or about November 4, 2014 and on or about November 19, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment for each count.
* Andrew Jose Espinoza, age 43, and Nicole Renee Contreras, a/k/a Nicole Renee Svoboda, age 48, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine between on or about January 1, 2010, to on or about October 16, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Espinoza and Contreras with possession with intent to distribute 50 grams or more of a mixture of methamphetamine on or about October 16, 2014. The maximum possible penalty if convicted if 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment should be forfeited to the United States.
* Juan C. Garcia Hernandez, age 28, of Omaha, is charged with illegal reentry into the United States on or about November 18, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Dale Delmar Hess, age 61, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography from on or about September 11, 2010, and continuing to on or about July 22, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Hess with possession of child pornography on or about July 23, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Kevin M. Lee, age 37, is charged in a two-count indictment. Count I of the Indictment charges the defendant with bank robbery of American National Bank, 1412 Harney Street, Omaha, Nebraska, on or about November 17, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Lee with bank robbery of U.S. Bank, 222 S. 72nd Street, Omaha, Nebraska, on or about November 18, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Felizardo Martines-Reyes, age 36, of Omaha, is charged with illegal reentry into the United States on or about November 21, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Myron Plummer, age 51, of Mentor, Ohio, is charged in a two-count Indictment. Count I of the Indictment alleges that on or about August 6, 2014, the defendant falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Plummer with using a means of identification of another person during and in relation to a felony violation on or about August 6, 2014. The maximum possible penalty if convicted is mandatory 2 year imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Shane Seizys, age 22, Emmanuel Chaplain, age 24, Thomas Jones-Ross, age 22, and Dilang Dat, age 21, all of Omaha, Nebraska are charged with a number of crimes arising out of a series of robberies that occurred in Omaha this summer. On June 16, 2014, Subway at 10814 Cottonwood Lane and Kentucky Fried Chicken located at 4385 Dodge Street were robbed. Seizys is charged with robbing both of those locations and is additionally charged with brandishing a firearm during the Kentucky Fried Chicken robbery. On June 19, 2014, Jiffy Lube at 5819 Maple Street, Jensen Tire and Auto at 4901 L Street and Jiffy Lube at 1221 S. 120th Street were all robbed. Seizys and Chaplain are both charged with each of those robberies. Additionally, they are each charged with brandishing a firearm during the Jensen Tire and Auto and 120th Street Jiffy Lube robberies. On June 23, 2014, Subway at 5005 Center Street and O’Reilly Auto Parts at 3620 North 72nd Street were robbed. Seizys and Chaplain are charged with robbing and brandishing a firearm at Subway and also charged with robbing O’Reilly Auto Parts. The Kum & Go located at 1010 South 154th Street was also robbed on June 23, 2014. Seizys, Chaplain and Jones-Ross are each charged with robbing that store and brandishing a firearm during that robbery. On July 16, 2014, Game Stop located at 9959 Redick Circle and Kentucky Fried Chicken located at 7601 North 30th Street were robbed. Seizys, Chaplain and Dat are each charged with both of those robberies. Seizys, Chaplain and Jones-Ross are also each charged with one count of felon in possession of a firearm. The maximum possible penalty on each robbery is 20 years imprisonment. The brandishing of a firearm carries a minimum term of 7 years to life imprisonment in addition to each robbery. Each additional brandishing conviction carries a minimum term of 25 years imprisonment to life. There is a maximum 10 years imprisonment for a felon in possession of a firearm conviction. Each robbery and firearm charge carries a $250,000 fine, 3 year term of supervised release and $100 special assessment.
* Alberto Tristan-Castillo, age 45, of Omaha, is charged with illegal reentry into the United States on or about November 19, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Thomas White, Jr., age 31, of Winnebago, is charged with assaulting, resisting, and interfering with a federal officer on or about October 17, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.Connecticut Man Charged in Manhattan Federal Court with Misappropriation of over $1 Million from Investors in Commodity PoolRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced the arrest of RYAN TOMAZIN, a founder and managing partner of R2 Capital Group LLC (“R2 Capital”), in connection with the unsealing of a two-count Indictment charging TOMAZIN with defrauding investors and misappropriating investment funds. Beginning in late 2009, TOMAZIN solicited over one million dollars from investors for investment in a commodity pool. From late 2009 through December 2014, TOMAZIN defrauded investors by disseminating, or causing others to disseminate, documents containing false representations regarding how assets in the commodity pool would be managed, and by falsely informing investors that their investments were increasing in value when, in fact, their investments had declined in value precipitously. As a further part of the scheme, TOMAZIN and other principals at R2 Capital caused over $850,000 of investors’ funds to be withdrawn from bank accounts associated with the commodity pool, and directed to bank accounts held in TOMAZIN’s and other principals’ own names or those of their respective holding companies for no legitimate purpose.
TOMAZIN was arrested by the FBI this morning at his residence in Connecticut, and will be presented in federal court in the Southern District of New York this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ryan Tomazin misled investors about the commodity pool he ran, and then misappropriated their money. With today’s arrest, he will now be brought to justice for this fraud.”
FBI Assistant Director-in-Charge George Venizelos said: “Once again we see greed and unethical behavior by those we trust with our investments. As alleged in the indictment, Mr. TOMAZIN defrauded investors, misappropriated their investment funds for his own personal benefit and then made false representations to cover his unethical scheme. Today’s arrest is another example of our continued commitment to work with our partners to expose and prosecute such criminal activity.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
R2 Capital began operations as an investment firm in 2008. In late 2009, R2 Capital created a commodity pool, R2 Capital Partners I L.P. (the “Commercial Pool”) and began to solicit investors, eventually raising approximately $2.2 million. In early 2010, R2 Capital engaged in trading on behalf of the Commercial Pool, but experienced significant losses and ceased all trading activity in or about July 2011. By August 2011, there was less than $5,000 remaining in bank accounts associated with the Commercial Pool.
In early 2010, TOMAZIN solicited a potential investor in the Commercial Pool (“Investment Fund-1”) and provided Investment Fund-1 with documentation that stated, among other things, that R2 Capital would receive a management fee limited to 50% of the profits earned by the Commercial Pool. Investment Fund-1 invested over $1 million in the Commercial Pool. From June 2010 to July 2011, the Commercial Pool experienced significant net losses. In July 2011, all trading activity in the Commercial Pool ceased. Nonetheless, between August 2011 and March 2013, TOMAZIN caused false “Trading Statements” to be sent to Investment Fund-1 reflecting false purported monthly trading profits and inaccurate trade balances. Furthermore, contrary to prior representations that R2 Capital’s management fee would be limited to 50% of profits earned, TOMAZIN and other principals at R2 Capital caused approximately $850,000 to be withdrawn from bank accounts associated with the Commercial Pool for their own personal benefit.
TOMAZIN, 39, of Stamford, Connecticut, is charged in the Indictment with securities fraud (Count One) and commodities fraud (Count Two). The securities fraud charge carries a maximum term of 20 years in prison and the commodities fraud charge carries a maximum term of 10 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
In a separate action, the United States Commodities Futures Trading Commission (“CFTC”) previously sued TOMAZIN, two others, and R2 Capital, in an action filed in United States District Court for the District of Colorado.
Mr. Bharara praised the investigative work of the FBI. He also thanked the CFTC for its assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Harry Chernoff and Aimee Hector are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ryan Tomazin Indictment
Columbus Pharmacist Charged with Health Care FraudRead the Press Release
COLUMBUS, OHIO – A federal grand jury has charged Maria Mascio, 59, of Columbus, Ohio, with 46 counts related to health care fraud in an indictment returned today in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John A. Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Antoinette V. Henry, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Metro Washington Field Office, Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy announced the indictment returned today.
According to court records, Mascio was a licensed pharmacist in the State of Ohio and owner of Family Medical Pharmacy and Vision Systems, both located in Columbus, Ohio. Mascio was charged with one count of conspiracy to commit health care fraud, one count of health care fraud scheme, 37 counts of health care false statements, one count of conspiracy to defraud the United States, four counts of aggravated identity theft and one count of tampering with a witness.
The indictment alleges that from on or about January 1, 2003 and continuing through on or about January 31, 2013, Mascio schemed to defraud Medicare, Ohio Medicaid, Ohio Bureau of Workers’ Compensation and private insurers. She allegedly billed for sample drugs that could not be legally sold and also billed for medications that had not been dispensed. It is alleged that Mascio also knowingly and unlawfully used the identification of another person to bill for medication.
Conspiracy to commit health care fraud is a crime punishable by up to 10 years in prison. Health care fraud scheme is a crime punishable by up to 10 years in prison. Each count of health care false statements is punishable by up to 5 years imprisonment. Conspiracy to defraud the United States is punishable by up to 5 years in prison. Each count of aggravated identity theft includes a mandatory sentence of 2 years imprisonment and tampering with a witness is punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the investigation of this case by the FBI, Health and Human Services Office of the Inspector General, Ohio Medicaid Fraud Control Unit, Ohio State Board of Pharmacy and FDA, and Assistant U.S. Attorney Ken Affeldt, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Man Sentenced for Role in Cocaine Distribution RingRead the Press Release
COLUMBUS, OHIO – Stephen A. Cagle, 46, of Columbus, Ohio, was sentenced in U.S. District Court to 36 months in prison for distributing cocaine and money laundering.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Columbus Police Chief Kim Jacobs and Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, on or about January 1, 2010 through September 21, 2011, Cagle, along with several others, was part of a large scale narcotics organization involved in importing, manufacturing and distributing cocaine throughout Central and Northern Ohio, Penn. and Texas.
Specifically, Cagle was responsible for distributing multiple kilograms of cocaine that was being transported into Ohio from Texas. The defendant was also involved in operating an unlicensed money transmitting business, often transporting several hundreds of thousands of dollars from Ohio to Texas.
While executing a search warrant at Cagle’s residence on September 21, 2011, investigators discovered more than 5 kilograms of cocaine, several firearms, more than $142,000 in cash and several vehicles.Cagle pleaded guilty on May 21, 2014 to conspiracy to distribute a controlled substance and money laundering.
He was ordered to forfeit $142,020 in cash and $10,000 in lieu of a vehicle seized on his property, as well as at least 13 firearms.
“All financial transactions leave a trail and we have the unique expertise to follow those leads,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only is a criminal going to jail for his crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”
U.S. Attorney Stewart commended the cooperative investigation by the DEA, IRS-Criminal Investigation, Columbus Division of Police, and ATF, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.Columbus Man Pleads Guilty to Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jose Valladolid, 44, of Columbus, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to being a felon in possession of firearms under a plea agreement with the U.S. Attorney’s Office.
Valladolid was arrested on Aug. 6, 2014, at the Columbus International Port of Entry in Luna County, N.M., for being a felon in possession of firearms, and attempting to export those firearms out of the United States. U.S. Customs and Border Protection Officers at the Columbus Port of Entry together with U.S. Border Patrol Agents assisting them with vehicle inspections arrested Valladolid after they found two firearms in his vehicle. At the time, Valladolid was prohibited from possessing firearms because he previously had been convicted of a marijuana trafficking crime.
Valladolid was indicted in Nov. 2014, on a two-count indictment charging him with being a felon in possession of a firearm, and fraudulently attempting to smuggle two rifles out of the United States.
During today’s proceedings, Valladolid pled guilty to Count 1 of the indictment and admitted possessing the firearms discovered in his vehicle on Aug. 6, 2014. He also admitted that he was prohibited from possessing the firearms because he was a convicted felon.
Valladolid has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Valladolid faces a statutory maximum penalty of ten years in federal prison.
This case was investigated by the Deming office of Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, the Las Cruces office of the Bureau of Alcohol, Tobacco and Firearms and Explosives, and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock E. Taylor of the Las Cruces branch office of the U.S. Attorney’s Office is prosecuting this case.
Charleston man sentenced to 17 years for illegal possession of a firearmRead the Press Release
Charleston, W.Va. – A Charleston, West Virginia felon who illegally possessed a firearm was sentenced today to 17 years in federal prison, U.S. Attorney Booth Goodwin announced. On August 27, 2014, a jury found Diarra Jermaine Boddy, 44, guilty of being a felon in possession of a firearm. Today’s sentence was handed down by United States District Court Judge John T. Copenhaver, Jr.
On September 10, 2013, Boddy was stopped by a Charleston Police Department officer on Veazey Street in Charleston, after he threw a loaded .44 caliber revolver from the care he was driving. Boddy had previously been convicted of several felonies including third offense domestic battery and three prior drug offenses. Boddy was sentenced as an Armed Career Criminal which provided for a mandatory minimum sentence of 15 years.
The investigation was conducted by the Charleston Police Department. Assistant United States AttorneysJoshua Hanks and Haley Bunn handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
California Woman Sentenced to Prison for Credit Card SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jocelyn Wilson, age 22, formerly of Carmichael, California, was sentenced yesterday by United States District Court Judge Robert D. Mariani to serve 33 months in prison on the charges of access device fraud and conspiracy to defraud the United States.
According to United States Attorney Peter Smith, Wilson along with co-defendant Francis Nevarez used a stolen credit card and a fraudulent Texas driver’s license to obtain cash advances, goods and services from financial institutions and businesses throughout Pennsylvania in 2013.
Nevarez was sentenced by Judge Mariani on November 21, 2014 to serve 36 months imprisonment and ordered to make restitution in the amount of $206,296.
The investigation was conducted by the United States Secret Service. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
California Operator of myRedBook.com Website Pleads Guilty to Facilitating ProstitutionRead the Press Release
A California man pleaded guilty today in connection with his operation of the myRedBook.com website to facilitate prostitution. This represents the first federal conviction of a website operator for facilitation of prostitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) San Francisco Office made the announcement.
Eric Omuro, also known as “Red,” 53, of Mountain View, California, pleaded guilty today before U.S. District Judge William H. Orrick of the Northern District of California to using a facility of interstate commerce with the intent to facilitate prostitution. His co-defendant, Annemarie Lanoce, 40, of Rocklin, California, pleaded guilty on Nov. 20, 2014, for assisting Omuro with the operation of the myRedBook.com website. Omuro’s sentencing hearing is set for March 26, 2015, and Lanoce’s sentencing hearing is set for March 19, 2015.
As part of the plea agreement, Omuro admitted that from April 2010 until June 25, 2014, he owned, managed, and operated a website known as myRedBook.com, which was previously known as sfredbook.com. Omuro admitted that the website hosted advertisements posted by prostitutes containing explicit photos, graphic descriptions of sexual services offered, and rates for the sexual services. The advertisements were searchable by geographic location, including cities throughout California, other U.S. states, and Canada.
Omuro admitted that members of his website and prostitutes typically used acronyms for sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. While prostitutes could post advertisements for free, myRedBook.com offered additional options for a fee. For example, prostitutes could pay a fee to have their advertisement featured more prominently on the website. Similarly, customers could access myRedBook.com for free. If a customer purchased a membership, however, the customer obtained early and enhanced access to prostitute reviews, enhanced prostitute review search options, and access to additional VIP forums, among other things.
As part of the plea agreement, Omuro agreed to the forfeiture of the domain names sfRedBook.com and myRedBook.com and more than $1.28 million in cash and property as proceeds and other property involved in his unlawful activity.
Omuro was arrested on June 25, 2014, on a warrant issued following his indictment.
This case was investigated by the FBI’s San Francisco Field Office, the IRS-CI, and the Oakland Police Department. The case is being prosecuted by the Criminal Division’s Child Exploitation and Obscenity Section and U.S. Attorney’s Office for the Northern District of California. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.
Buffalo Man Sentenced for Violating Supervised ReleaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Terry Finn, 51, of Buffalo, NY, who was convicted of violating a condition of his supervised release, was sentenced to nine months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on August 27, 2008, the defendant was sentenced by Judge Arcara to 52 months in prison and five years supervised release persuasion of a minor to travel in interstate commerce to engage in sexual activity. Finn met a 16 year old online and persuaded her to travel from Vermont to Brocton, NY to meet him and engage in sexual activity. As a condition of supervised release, the defendant was ordered to enroll, attend and participate in mental health intervention specifically designed for the treatment of sexual offenders as approved by U.S. Probation.
The defendant began serving the term of supervised release on February 7, 2012. In March of 2014, Finn was referred to Mid-Erie Counseling for sex offender treatment. On September 4, 2014, the defendant was terminated from Mid-Erie’s program for failing to inform the treatment team or his probation officer that he was engaged in a romantic relationship with a woman who had a five year old child. Specifically, Finn failed to disclose this information during a session on September 3, 2014, when he attended a group therapy session at Mid-Erie.
The sentencing is the culmination of an investigation on the part of United States Probation Service, under the direction of Chief US Probation Officer Anthony M. San Giacomo.
Buckhannon, WV Man Convicted of Witness TamperingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Tobias Lynn Bennett, 41, of Buckhannon, West Virginia, was convicted in federal court on witness tampering charges, United States Attorney William J. Ihlenfeld, II announced today.
An investigation by the West Virginia State Police revealed that, while incarcerated at the Tygart Valley Regional Jail in Belington, West Virginia, Bennett discouraged two potential witnesses from testifying at a fellow inmate’s sentencing hearing.
Bennett pled guilty to one count of “Witness Tampering – Aiding and Abetting.” He faces up to 20 years in prison and fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew Cogar is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Bradenton Man Indicted for Federal Arson and Firearm OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Henry Blain Howard (47, Bradenton) with arson, possessing an unregistered destructive device, possessing a firearm in furtherance of a crime of violence, and possessing a firearm and ammunition as a convicted felon. If convicted on all counts, Howard faces a mandatory minimum term of 50 years in federal prison.
According to the indictment, on June 20, 2014, Howard knowingly possessed a destructive device that had not been registered to him in the National Firearms Registration and Transfer Record. Further, he used the device in furtherance of the arson of two vehicles.
Additionally, on October 7, 2014, during a search of Howard’s home, investigators recovered two rifles and several rounds of ammunition. At the time of the search, Howard was a convicted felon and, therefore, was prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the Florida State Fire Marshal’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Bourbonnais Tax Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
Peoria, Ill. – Sentencing is scheduled on April 10, 2015, for a Bourbonnais, Ill., man convicted yesterday of three counts of filing a false tax return and nine counts of aiding and abetting the preparation of false tax returns. A jury deliberated for approximately five hours on Dec. 10, before returning 12 guilty verdicts against Robert J. DeAngelo, 63.
From 2007 to 2010, DeAngelo provided tax services from his home office, on St. Pauls Drive, Bourbonnais, that included the preparation and filing of tax returns for hundreds of clients. During the trial, which began on Monday, Dec. 8, the government presented evidence to establish that for the 2008, 2009, and 2010 tax years, DeAngelo falsely underreported his tax business’s gross receipts and inflated its expenses. Despite receiving tens of thousands of dollars in income during this time, DeAngelo paid no federal income tax for those years, and in fact, claimed an earned income credit. For tax years 2008, 2009, and 2010, DeAngelo failed to pay more than $30,000 in federal income taxes that were due and owing. During this time period, DeAngelo also created false employee business expense deductions, namely unreimbursed business mileage, for his tax return clients, without their knowledge. The false income tax returns provided larger refunds for DeAngelo’s clients and resulted in an overall tax loss of more than $50,000.
Following the jury’s return of the guilty verdicts, U.S. District Judge Michael M. Mihm allowed DeAngelo to remain on release under conditions of bond pending sentencing. Judge Mihm scheduled sentencing for DeAngelo on all charges for April 10, 2015.The maximum statutory penalty for each count of filing a false tax return and aiding and abetting the preparation of a false tax return is three years in prison, a fine of up to $100,000, plus the costs of prosecution.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by Internal Revenue Service Criminal Investigation.
Alleged Gang Members and Associates Indicted in Cross-Country Sex Trafficking ConspiracyRead the Press Release
Read the indictment - Click HERE Presentation slides - Click HERESAN DIEGO – Twenty-two alleged gang members and associates are charged in a federal grand jury indictment with participating in a racketeering conspiracy involving the cross-country sex trafficking of underage girls, including many who were recruited from East County middle and high schools.
Early this morning detectives and agents from the San Diego County Sheriff’s Department, Homeland Security Investigations and the FBI, with assistance from other agencies, made 15 arrests and served 11 search warrants here and in Hemet, California; Tucson, Arizona, and Austin, Texas. Just one defendant remained at large at midday; seven were already in state custody. Some of the local defendants are scheduled to make their first court appearances tomorrow at 10:30 a.m. before U.S. Magistrate Judge Ruben Brooks.
The indictment, unsealed today, alleges that the defendants are associated with a relatively new gang formed in 2008 called “Tycoons,” which, until this morning, operated a nationwide prostitution enterprise primarily from its base in Lemon Grove and Spring Valley.
According to the indictment and other court documents, the enterprise was also involved in other crimes such as attempted murder, assaults, drug trafficking, robberies, residential and commercial burglaries, and beatings, intimidation and threats of violence against female victims, witnesses in criminal cases and members of the community.
Over the course of the two-year investigation, law enforcement identified approximately 100 girls and young women - as young as 12 years old, up to the mid-twenties - who were manipulated with promises of a lavish lifestyle or were forced through threats or actual violence to work as prostitutes for the enterprise, according to a search warrant.
Many of them were recruited on school campuses in East County by pimps and experienced, high-ranking prostitutes, the warrant said. During the course of the conspiracy, the girls and women were transported from San Diego County to customers in California and beyond – to Texas, Arizona, Kansas, Michigan, Nevada and elsewhere, the indictment said.
The defendants allegedly used a number of methods to manipulate the recruits, including false promises of a luxurious lifestyle, intimidation, and actual or threatened violence. Court records indicate that the alleged pimps regularly furnished drugs and alcohol to lower the recruited prostitute’s inhibitions and increase her productivity.
“Victims of sex trafficking are young, just getting started in life,” said U.S. Attorney Laura Duffy. “They have hopes and dreams of being loved and having beautiful lives ahead of them. Gang members are exploiting these dreams and stealing the souls of children. They are crushing them with false promises that lead to physical and emotional abuse and sexual slavery.”
The ranks of “Tycoons” are mostly made up of documented gang members from gangs all over the county, including the West Coast Crips, Neighborhood Crips, Lincoln Park, Skyline Piru (Eastside Piru), O’Farrell Park, 5/9 Brims, Emerald Hills and Linda Vista Crips. These gang members have a sort of dual membership in Tycoons. Within Tycoons, there are cliques known as PGF, for Playgirl Fantasy; Tycoon/Additup; and BYB, or Break Your Bitch.
According to court documents, members of Tycoons are akin to a crime family, where all members work together committing various crimes for the purpose of making money. The indictment alleges that the defendants took on different responsibilities within the criminal enterprise. Some managed prostitutes and transported them all over the country. Some forcefully coerced the girls and young women into prostitution and maintained their obedience and loyalty through acts of violence. Some handled the money. Some placed advertisements to generate business or booked motel rooms in which acts of prostitution took place; and others distributed drugs and committed other crimes.
For that reason, the defendants are charged with racketeering conspiracy—the statute traditionally used for organized-crime syndicates and mobsters. But as criminal street gangs such as these join forces and become more sophisticated and prolific in their illicit business pursuits, this statute is an effective tool to address all aspects of the criminal conduct.
This is the third time the U.S. attorney’s office here has used the racketeering statute to charge large numbers of gang members with operating a criminal enterprise that included drugs, human trafficking, and violence. In the first case, 39 Oceanside gang members and associates were charged with racketeering, and, to date, 35 have pleaded guilty. The second involved gangs in North Park; that case is pending, with three guilty pleas so far.
The investigation began as a result of information provided by members of the East County community who saw troubling signs and reported them. Duffy said she is encouraged that community members came together to address this problem.
“They did not look the other way,” Duffy said. “They saw signs of trouble, and they reported it. As a result, girls and young women exploited in this case have been extended a path from misery to safety, and we have started on a path to end this criminal enterprise.”
“This investigation was initiated through the vigilance of parents and school resource officers," commented Sheriff Bill Gore. “Local, state, and federal law enforcement will always collaborate and bring to bear all resources available, when the safety of our youth is at stake. I'm very proud of the work done today, and during the entire course of this matter.”
“This investigation pulls back the curtain on a growing threat involving sexual exploitation occurring in plain sight,” said Joe Garcia, interim special agent in charge for HSI in San Diego. “As part of the Department of Homeland Security’s Blue Campaign, HSI agents are committed to combating human trafficking in collaboration with our law enforcement partners. In doing so, we need the public’s assistance in reporting suspicious activity, which is even more critical when the targets involve our local area teenagers.”
“Exploiting and harming America's children through sex trafficking is a serious crime with detrimental effects to the victims and our communities,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI will continue to collaborate with our law enforcement partners in cases like this and our Operation Cross Country initiative where we have rescued over 3,600 children from the grips of sex traffickers and hold them accountable.”
DEFENDANTS Case Number: 14cr33537-BAS James Terelle King Age: 23 Michael Dean Richardson Age: 21 Andrew Damon Richardson Age: 22 Brian Keith Scott Age: 22 Alondre Shamil Dickerson Age: 20 Anthony Robert Dennison Age: 22 Keyon Renta Gill Age: 30 Donavyn Keith Dove Age: 21 Ryan Mcintoch Izumi Age: 22 William Henry Mitchell Age: 23 Jordan Renee Mitchell Age: 21 David Michael Stokes Age: 21 Christian Darwin Wilcox Age: 21 Marquis Dominique Davis Age: 21 Cortes Tizzaro Prater Age: 23 Emmanuel Gumataotao Farol Age: 20 Donald Mickey Stokes Age: 21 *Wiley Junius Greeno Age: 23 Deija Renee Lamb Age: 19 Joseph Benjamin Taylor Age: 21 Frank Gibson III Age: 20 Christal Marie Torres Age: 24 *fugitive CHARGESConspiracy to Commit RICO in violation of Title 18, U.S.C. 1962(d); Maximum Penalties: Life in prison, $250,000 fine, up to life of supervised release.
INVESTIGATING AGENCIESSan Diego County Sheriff’s Department
Immigration and Customs Enforcement, Homeland Security Investigations
Federal Bureau of Investigation*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Alien Sentenced for Illegal Re-entry near PlattsburghRead the Press Release
Had Been Previously Removed Three Times
ALBANY, NEW YORK – Esequiel Perez-Lopez, 34 years old of Mexico, was sentenced today to serve 11 months in prison, followed by two years of supervised release by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Norman Lague, Champlain Border Patrol. In August, Perez-Lopez pled guilty to illegally reentering the United States after he had previously been removed, a felony under federal law. Following the completion of the term of his imprisonment, the Department of Homeland Security will process Perez-Lopez for removal from the United States to Mexico.
In August 2014, Perez-Lopez was arrested by Border Patrol Agents in a restaurant parking lot in Plattsburgh, New York. Perez-Lopez had been previously removed to Mexico three times, most recently in November 2012 after his conviction in the District of New Hampshire for illegally entering the United States after removal.
The case was investigated by the United States Border Patrol, Champlain, NY and prosecuted by Assistant United States Attorney Edward P. Grogan.
Alien Sentenced for Illegal Re-entry in HogansbergRead the Press Release
Had Been Removed in June 2014
ALBANY, NEW YORK – Elyn Francisco Figuereo-Minyette, 27 years old and a citizen of Spain, was sentenced today to term of “time served” (45 days), by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Wade A. Laughman, Massena Border Patrol. In November, Figuereo-Minyette pled guilty to illegally reentering the United States following removal, a felony under federal law. Judge Suddaby remanded Figuereo-Minyette, following today’s sentencing, to the custody of the Department of Homeland Security for removal proceedings.
In October 2014, Figuereo-Minyette was arrested by Border Patrol Agents on New York State Route 37 in Fort Covington, New York. Figuereo-Minyette had illegally crossed the border at a remote location on the St. Regis Akwesasne reservation and was picked up by a waiting car shortly before he was stopped and arrested by Border Patrol. Figuereo-Minyette had been previously removed to Spain on June 9, 2014.
The case was investigated by the United States Border Patrol, Massena, NY and prosecuted by Assistant United States Attorney Edward P. Grogan
Alien Sentenced for Illegal Re-Entry near ChamplainRead the Press Release
Had Been Removed in 2005
ALBANY, NEW YORK – Alexis Fuentes, 40 years old of the Dominican Republic, was sentenced today to serve 41 months in prison by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Norman Lague, Champlain Border Patrol. In August, Fuentes pled guilty to illegally reentering the United States after he had previously been removed, a felony under federal law. Following the completion of the term of his imprisonment, the Department of Homeland Security will process Fuentes for removal from the United States to the Dominican Republic.
In June 2014, Fuentes was arrested by Border Patrol Agents on New York State Route 11 in Champlain, New York. Fuentes had illegally crossed the border at a remote location and was picked up by a waiting car shortly before he was stopped and arrested by Border Patrol. Fuentes had been previously removed to the Dominican Republic in May 2005. Fuentes was ordered removed after he was convicted in Berks County, Pennsylvania of an aggravated felony, possession with intent to deliver a controlled substance.
The case was investigated by the United States Border Patrol, Champlain, NY and prosecuted by Assistant United States Attorney Edward P. Grogan.