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Tuesday 9 December 2014
- Starr County Deputy and Brother Indicted for Drug Trafficking
St. Petersburg Man Sentenced to Nine Years for Child Pornography OffensesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Richard Wayne Johnson (68, St. Petersburg) to nine years in federal prison for transporting and possessing child pornography, followed by a lifetime of supervised release. In addition, the Court ordered Johnson to pay $7,000 in restitution to the victims of the offenses, and imposed a fine of $17,500. Johnson was also ordered to forfeit a desktop computer that had been used to facilitate the offenses.
Johnson pleaded guilty on August 25, 2014.
According to court documents, in April 2014, an undercover agent used a file sharing program to download Internet files containing child pornography. Further investigation traced the host computer back to Johnson. On May 1, 2014, agents executed a federal search warrant at his residence. During that search, and in a later forensic examination, agents found more than 3,600 videos and 476 images depicting child pornography on Johnson’s computer. Some of the child pornography on Johnson’s computer involved toddlers.
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Largo Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Southeastern Connecticut Cocaine Trafficker Pleads GuiltyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PEDRO RIVERA, also known as “Cheito,” 36, of Groton, pleaded guilty today in Hartford federal court to one count of conspiracy to possess with intent to distribute 500 grams or more cocaine.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
According to statements made in court, RIVERA arranged the shipment of cocaine from sources in Puerto Rico to the New London area. RIVERA’s cocaine trafficking operation was assisted by individuals who lived in and around Morovis, Puerto Rico, including his parents, Juan Rivera Ortiz and Ivette Pagan Rodriguez. RIVERA then distributed the cocaine to customers in southeastern Connecticut through a network of associates.
RIVERA is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 3, 2015, at which time he faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. RIVERA has been in custody since his arrest on April 3, 2013.
Rivera Ortiz and Pagan Rodriguez pleaded guilty on November 24, 2014, and await sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Scottsdale Man Sentenced to 18 Months in Prisonfor Standby Letter of Credit SchemeRead the Press Release
PHOENIX – J’Sean Claude Butierries, 51, of Scottsdale, Ariz., was sentenced by U.S. District Judge Neil V. Wake to 18 months of imprisonment, followed by three years of supervised release, on wire fraud and money laundering charges. Butierries pleaded guilty in September to defrauding investors out of hundreds of thousands of dollars by selling fraudulent investments and then using that money to buy expensive cars and other luxury items for himself and family members.
“The very large, short-term gains that Butierries falsely claimed he could produce were unreasonable, and the public should be wary of such claims made by anyone,” said U.S. Attorney John S. Leonardo. “Butierries said he could deliver these gains by trading standby letters of credit, which do not exist, and the United States Attorney’s Office warns the public to stay away from financial predators who make these claims.”
Butierries owned and operated a company called Chenise International, Ltd., through which he offered the investors a 30%-plus return, to be paid within 15 days. Butierries, who was not licensed or registered to sell securities, claimed that he was able to engage in trading in standby letters of credit, an investment vehicle simply does not exist. This type of fraud, sometimes referred to as “prime bank investment fraud,” is marked by false claims of very large, short term gains, claims of “private” trading programs, the use of “standby letters of credit” or “proof of funds” documents, and other promises that use terms and concepts that mimic legitimate banking terms but are not themselves legitimate.
Butierries used the funds to purchase a $195,000 Audi R8 for himself, a $75,000 Audi A730 for his wife, a boat, and several motorcycles. All of the items were seized from Butierries’s home and Butierries agreed to forfeit those items as part of his plea, with funds going to reimburse investors. Butierries was ordered to pay the balance to investors in the form of restitution.
The investigation in this case was conducted by the Phoenix Division of the FBI. The prosecution was handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix. For more information on this type of fraud, with tips on how to avoid falling prey to it, visit the FBI website at www.fbi.gov/scams-safety/fraud or the Department of Treasury website at www.treasury.gov/scams/Prime-Bank-Investment-Fraud.
CASE NUMBER: CR-14-00063-PHX-NVW
RELEASE NUMBER: 2014-072_ButierriesFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Sault Ste. Marie Man Convicted in Federal Court of Sexual Assault and Witness TamperingRead the Press Release
MARQUETTE, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that Lynn Michael LaVictor, 44, of Sault Ste. Marie, Michigan, was convicted on all six counts of a federal indictment charging attempted sexual abuse; two counts of aggravated sexual abuse; assault resulting in serious bodily injury; domestic assault by a habitual offender; and attempted witness tampering. LaVictor had previously pled guilty to the seventh count of the indictment that charged him with contempt of a court order.
The charges arose from an incident on June 27, 2014, in which LaVictor sexually assaulted his then girlfriend in Sault Ste. Marie, Michigan. The victim’s injuries from the assault required her to be transported by ambulance to the hospital, where she underwent surgery later in the day. After his arrest and the placement of a no-contact order, LaVictor repeatedly contacted the victim anyway and attempted to influence her testimony.
The trial was before U.S. District Judge R. Allen Edgar. At sentencing, which is scheduled for May 8, 2015 at 10:00 a.m., LaVictor will face a potential life sentence. The Sault Ste. Marie Tribe of Chippewa Indians Tribal Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Jeff J. Davis and Hannah N. Bobee prosecuted the case.
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Repeat Bank Robber Admits GuiltRead the Press Release
COEUR D’ALENE - Ricky Allen Fisher, 35, most recently of Orlando, Florida, pleaded guilty today in U.S. District Court to bank robbery, U.S. Attorney Wendy J. Olson announced. Fisher pleaded guilty before U.S. District Judge Edward J. Lodge in Coeur d’Alene.
In 2007, Fisher was sentenced to 77 months in prison for bank robbery. In his plea, Fisher admitted that after his release from federal prison on May 6, 2014, he took a bus to Boise, Idaho. He arrived on May 9, 2014, and was taken to Ontario, Oregon, where he robbed a Chase Bank of $1,600. Five days later he entered U.S. Bank in Ontario, Oregon, demanded cash and left with $1,334. On May 16, 2014, Fisher robbed the U.S. Bank in Cottonwood, Idaho, and took $2,324. Fisher was driven to each bank by Jennifer Balfe, 19, who previously pleaded guilty and was sentenced on November 20, 2014,to 27 months in prison and three years of supervised release.
Fisher will be sentenced on March 3, 2015, in Coeur d’Alene, Idaho. Bank Robbery is punishable by up to 20 years in prison, three years supervised release and up to a $250,000 fine. Fisher has also been ordered to pay restitution to each of the banks.
The case was investigated by the Cottonwood Police Department, Lewiston Police Department, Idaho County Sheriff’s Office, Nez Perce County Sheriff’s Office, and the Federal Bureau of Investigation (FBI).
Operators of Atlanta Stores Arraigned for WIC and Snap FraudRead the Press Release
ATLANTA - Rodney Byrd and Reginald Byrd have been arraigned on federal charges of unlawfully purchasing vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (SNAP).
“These defendants are charged with stealing money that was intended to be used to provide nutritious food to low-income mothers and children,” said United States Attorney Sally Quillian Yates. “Our office will continue to pursue those individuals who seek to abuse government assistance programs for their own greed.”
“These defendants sought to benefit financially from their fraudulent activities” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Their actions also resulted in a loss to the government, but more importantly, they are charged with stealing from individuals who depend on the WIC program for assistance.”
According to United States Attorney Yates, the charges, and other information presented in court: Rodney Byrd owned and operated several Atlanta, Ga., metropolitan-area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP. The defendants caused employees to cash checks made out to the employees’ names and used the proceeds to purchase customers’ WIC vouchers and EBT cards.
Rodney Byrd, 39, of Lawrenceville, Ga., and Reginald Byrd, 38, of College Park, Ga., were arraigned before United States Magistrate Judge Janet F. King. Both defendants were indicted by a federal grand jury on November 24, 2014.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Agriculture, Office of the Inspector General, and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Omaha Woman Convicted of Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Shantoria Valentine-Deguenon, age 23 of Omaha, Nebraska, was convicted today after a jury found her guilty of bank robbery. The Honorable Joseph F. Bataillon presided over the trial that was held this week in Federal District Court. Sentencing has been set for March 6, 2014. Ms. Valentine-Deguenon faces 20 years of imprisonment when she is sentenced.
On July 28, 2014, Valentine-Deguenon walked into the Wells Fargo branch located at 4725 South 84th Street, Ralston, Nebraska and gave a note to two tellers indicating she had a bomb. She also yelled that she had a bomb and demanded money from the tellers. The tellers gave her money and she fled the bank. A Good Samaritan, who happened to be parked in the bank parking lot, saw Valentine-Deguenon run from the bank, followed her, and tracked her to the Ralston Middle School parking lot where he ordered her to the ground. As that was happening, Ralston police officers arrived on the scene and placed her under arrest. She was found in possession of $1213.00 in U.S. currency taken from the bank.
The case was investigated by the Ralston Police Department and Federal Bureau of Investigation.Norfolk Woman Sentenced to 210 Months in Prison for Her Role in Conspiracy to Produce Child PornographyRead the Press Release
NORFOLK, Va. – Shavonna Lakita Whitfield, 28, of Norfolk, Virginia, was sentenced today to 210 months in prison, followed by lifetime supervised release, for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Clark Settles, Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
Whitfield pleaded guilty on August 26, 2014. According to court documents, Whitfield became involved in the conspiracy when she was contacted by co-conspirator Robert Harold Scott, Jr. under his assumed online identity of “Mike Pyro.” Scott would routinely communicate with women in and around the Tidewater area to set up “sex parties,” where the women would work as prostitutes and Scott would pay them for their services. In reality, Scott would not pay them and, at times, extort the women by threatening to publish sexually explicit videos. In addition to the adult parties, Scott was found to be conspiring with and producing child pornography with five different women, including Whitfield. Law enforcement found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Whitfield complied in return for the promise of money. Specifically, Whitfield produced child pornography with a 3 year old child.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-164.Tweet
Navajo Woman from Farmington Sentenced for Assault ConvictionRead the Press Release
ALBUQUERQUE – Thelda Frank, 42, an enrolled member of the Navajo Nation who resides in Farmington, N.M., was sentenced today to a year of supervised release for her assault conviction.
Frank was arrested in Jan. 2013, based on an indictment charging her with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the indictment, Frank assaulted a man with a knife on July 27, 2011, in a location within the Navajo Indian Reservation.
On Sept. 25, 2013, Frank pleaded guilty to a felony information charging her with assault, and Frank admitted stabbing a man in the abdomen with a knife on July 27, 2011.This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Montgomery County Pair Charged in EBay ScamRead the Press Release
PHILADELPHIA - Kareem Cameron, a/k/a “Shareef Ali,” 49, and Alecia Susan Brown, 38, both of Wyncote, PA, were charged by indictment, unsealed today, in an internet scam involving an online auction site. The defendants, who were arrested today, are each charged with conspiracy to commit mail and wire fraud, one count of mail fraud, and four counts of wire fraud, announced United States Attorney Zane David Memeger.
The indictment alleges that Cameron and Brown conspired to operate an internet scam in which Cameron, through various eBay user names and aliases, offered luxury items, including BMWs and Rolex watches, for sale on the internet auction site. It is further alleged that Cameron did not possess or did not intend to deliver the goods he offered for sale, or the goods were not in the condition he advertised. According to the indictment, Cameron instructed victim buyers to send a payment, via wire transfer, to his bank account or to the account of co-defendant Alecia Brown. After Cameron received payment, he either shipped goods that did not match the description or were inferior in quality to those he advertised for sale, or he shipped nothing at all. The indictment charges that the pair defrauded their victims of approximately $186,439.
If convicted of all charges, the defendants each face a maximum possible sentence of 125 years in prison, a fine of up to $1.75 million, three years of supervised release, and a $700 special assessment.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Member of Multi-State Theft Scheme Sentenced to 28 Months in Prison for Selling Stolen PharmaceuticalsRead the Press Release
NEWARK, N.J. – A Miami, Florida, man was sentenced today to 28 months in prison for his role in a multi-state conspiracy to possess and sell prescription medication taken from a stolen tractor trailer, U.S. Attorney Paul J. Fishman announced.
Martin Lopez, a/k/a “El Negro,” 47, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with conspiracy to possess stolen prescription medicine. Judge Martini imposed the sentenced today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 2, 2009, a full shipment of prescription respiratory medicine manufactured by Dey LLP in Allen, Texas, was stolen on its way to Sandoz Inc. in Mechanicsburg, Pennsylvania. Lopez admitted that from December 2009 through March 2010, he conspired with others to acquire and sell medicine stolen from the shipment.
In early 2010, Lopez spoke with Ernesto Romero-Vidal, a/k/a “Bemba,” 48, of Hallandale, Florida, to identify a potential buyer for the stolen medicine. On March 2, 2010, Lopez arranged to have the medicine delivered to a buyer in New Jersey. Two days later, two other conspirators delivered the stolen goods to the buyer in return for $64,000 in cash, which they split with Lopez.
In addition to the prison term, Judge Martini sentenced Lopez to three years of supervised release and ordered forfeiture of $7,000.
On Dec. 18, 2013, Romero-Vidal was sentenced by Judge Martini to 80 months in prison for his role in the scheme and other federal charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and detectives of the North Bergen Police Department, under the direction of Chief Robert J. Dowd, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Kathleen M. Theurer Esq., Jersey City, N.J.Mclean County Man to Serve Four Years in Prisonfor Operating Unlicensed Internet Bitcoin ExchangeRead the Press Release
Peoria, Ill. – The first defendant prosecuted in the Central District of Illinois for running an unlicensed internet money service business has been sentenced to four years in federal prison, as announced by U.S. Attorney Jim Lewis. Last week, on Dec. 4, Chief U.S. District Judge James E. Shadid sentenced John D. Powell 55, of Normal, Ill., to 48 months in prison for operating an unlicensed Bitcoin exchange on the internet. Powell was also ordered to serve three years of supervised release following his incarceration.
On July 31, 2014, Powell entered an open plea of guilty to two counts of operating an unlicensed money service business. Bitcoin is a cyber-currency that allows individuals to conduct transactions anonymously. According to court documents and statements during court hearings, Powell’s exchange business allowed individuals increased anonymity by exchanging cash anonymously for bitcoin. Investigators found that Powell received more than $3,000,000 from individuals during an 18-month period ending in February 2014, even though he had not registered, as required by law, as a money service business with either the State of Illinois or the United States.Following the sentencing hearing, Powell was remanded to the custody of the U.S. Marshals Service. On Sept. 30, 2014, Powell was arrested, and had been ordered detained pending sentencing after the government filed a petition to revoke Powell’s pretrial release supervision. Powell had been placed under pretrial release supervision with conditions, including that the defendant not use or unlawfully possess illegal drugs. In support of revocation of Powell’s pretrial release, the petition cited four occasions from July 29 to Sept. 11, 2014, when the defendant submitted to testing for a prohibited substance and tested positive for cannabis.
The case was prosecuted by Assistant U.S. Attorney Bradley W. Murphy. The investigation was conducted by the Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service.
# # # #- McAllen Man Sentenced to 10 Years in Prison for Trafficking in Marijuana
Marion County Sheriff’s Department to Receive over $750,000 Forfeited in East Tennessee Drug Trafficking CaseRead the Press Release
Cash and vehicles forfeited totaled $961,413.93
CHATTANOOGA, Tenn. –The Marion County Sheriff’s Department will receive a check in the amount of $751,515.71, which represents the majority of funds forfeited in a marijuana trafficking case prosecuted in U.S. District Court in Chattanooga.Jackie Morrison, 66, Ollie Frizzell, 53, Sammy Nance, 51, all of Whitwell, Tenn., along with Julio Barbosa, Sr., 60, of Laredo, Texas, were charged and convicted of offenses related to the scheme, which operated from 2004 to 2011. The operation was responsible for transporting over 1000 pounds of marijuana from Texas to East Tennessee, where it was distributed.
Morrison was arrested as he was returning from Laredo, Texas to Jasper, Tenn., in November 2011 with 66 pounds of marijuana in his pickup truck. Searches of the truck and residences for Morrison and his coconspirators resulted in the seizure of approximately 86 pounds of marijuana, guns, explosives, drug ledgers, cash, vehicles, and bank accounts.
After a jury trial, Morrison was found guilty of a conspiracy to distribute 100 kilograms or more of marijuana, possession of marijuana with the intent to distribute, and 28 counts of structuring money to evade currency reporting requirements. He was sentenced to serve 72 months in prison, followed by four years of supervised release. The jury also found that $779,033.23, was forfeitable as money involved in the structuring offenses, and $820.00 and a 2003 Ford F-250 pickup truck were forfeitable as property involved in drug trafficking offenses.
Nance pleaded guilty to three counts of distribution of marijuana. He was sentenced to serve 24 months in prison, followed by four years of supervised release. Nance was acquitted by the jury of the conspiracy to distribute 100 kilograms or more of marijuana. However, the jury forfeited an ATV used by Nance to distribute the marijuana for which he pleaded guilty.
Frizzell pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana. She was sentenced to serve 30 months in prison, followed by four years of supervised release. She also forfeited a 2005 Toyota Tacoma and $159,700.70.
Barbosa pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana and money laundering. He was sentenced to serve 48 months in prison, followed by eight years of supervised release.
Of the total $961,413.93 ordered by the court to be forfeited, $939,553.93 was cash and $21,860.00, was the value of vehicles and an ATV.
U.S. Attorney William C. Killian said, “To ensure that crime doesn’t pay, federal law allows the forfeiture of property used to facilitate crimes and assets obtained through their illegal activity. The U.S. Attorney’s Office for the Eastern District of Tennessee works with our federal and local law enforcement agency partners to identify, seize, and forfeit property in an effective and powerful strategy in the fight against crime as part of the Department of Justice’s asset forfeiture program.”
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Glenn “Andy” Anderson stated, “In keeping with ATF Chattanooga’s Frontline strategy to address and reduce violent crime and protect the public, our partnership with the Marion County Sheriff’s Office has once again proven to be invaluable in concentrating on criminal groups. This investigation has had many phases and still continues. At this juncture, it is with great pleasure to share these proceeds of ill-gotten gains with Sheriff Burnett and his office.”
Marion County Sheriff Ronnie “Bo” Burnett stated, “The Marion County Sheriff’s Office committed personnel to work with ATF Chattanooga seven years ago. During that time the working relationship with the ATF and the U.S. Attorney’s Office has been invaluable. The streets and neighborhoods of Marion County are much safer today because of this strong partnership. This case is one of many successful cases that has been prosecuted as a result of this partnership. The Sheriff’s Office is grateful that this partnership has paid off not only to get criminals off of the streets but to also ensure that the Sheriff’s Office has the needed funding to hire more personnel, conduct training, and obtain updated investigative equipment.”
In addition to the Marion County Sheriff’s Department, the ATF had a significant role in the investigation which led to the subsequent conviction and sentencing of these individuals. Assistant U.S. Attorneys Jay Woods and Gregg Sullivan represented the United States. Assistant U.S. Attorney Anne-Marie Svolto assisted with the forfeiture.
The Department of Justice Asset Forfeiture Program is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The most important objective of the program is strengthening law enforcement efforts to combat crime. Equitable sharing further enhances this law enforcement objective by fostering cooperation among federal, state, and local law enforcement agencies. Any state or local law enforcement agency that directly participates in an investigation or prosecution that results in a federal forfeiture may request an equitable share of the net proceeds of the forfeiture.
(Check Presentation Picture )
Maple Plain Man Sentenced to 150 Months in Prison for Stealing Millions from Mortgage Loan LendersRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ALPHA RASHIDI MSHIHIRI, 39, to 150 months in federal prison for orchestrating a multi-million dollar mortgage fraud conspiracy. MSHIHIRI was convicted, on February 20, 2014, following a seven-day trial, of each count of the indictment against him, including Conspiracy to Commit Bank Fraud, Bank Fraud, Mail Fraud, and Wire Fraud. He was sentenced on December 8, 2014, before Senior Judge David S. Doty in U.S. District Court in Minneapolis.
As proven at trial, between 2007 and 2009, MSHIHIRI, who was once a licensed mortgage broker, and his co-conspirators defrauded a number of lenders for millions of dollars by recruiting straw buyers, falsifying loan applications and other documents, and inflating real estate purchase prices. As part of the conspiracy, straw buyers submitted fraudulent loan applications to mortgage lenders. In some instances, they used stolen identities to fill out loan applications.
In support of fraudulent loan applications, MSHIHIRI and his co-conspirators also created false documents, such as W-2s, paystubs, driver’s licenses, and bank statements, which straw buyers submitted to mortgage lenders to obtain financing. In some instances, the proceeds of the loans were used to pay existing mortgages, financially benefitting MSHIHIRI and others. The scheme also included MSHIHIRI’s involvement in kickbacks to GWP and Pristine Home Loans, companies he owned and operated. Every property purchased through the scheme went into foreclosure, resulting in nearly $2 million in losses to the victim lenders.
This case resulted from an investigation conducted by the Internal Revenue Service-Criminal Investigation, the Minnesota Financial Crimes Task Force, the United States Secret Service, and the U.S. Department of Housing and Urban Development – Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu and David Genrich.
The U.S. Attorney’s Office reminds people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.
Defendant Information:
ALPHA RASHIDI MSHIHIRI, 39
Maple Plain, Minn.
Convicted:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
• Wire Fraud, 2 counts
• Mail Fraud, 1 count
Sentenced:
• 150 months in prison
• Five years supervised releaseLowell Man Sentenced to 30 Years for Producing Child Pornography at a DaycareRead the Press Release
GRAND RAPIDS, MICHIGAN – Travis C. Stiehl, 23, received a sentence today of 30 years in federal prison for producing child pornography at his mother’s daycare facility in Lowell, Michigan. Stiehl pled guilty in August 2014 to one count of producing child pornography of a 4-year-old boy. As part of the plea, the prosecution dismissed seven other counts of producing child pornography of children ages 2 to 14 between 2011 and 2013, and one count of possessing over 2,000 images and video of child pornography that Stiehl received through the internet. As part of the sentence, the judge included a condition of lifetime supervised release and an order that Stiehl undergo a psychological and physiological examination for sexual dangerousness before he can be released from the Bureau of Prisons.
In delivering the maximum possible sentence to Stiehl, Chief United States District Judge Paul L. Maloney said, “I view him as a major threat. A more horrific crime short of death is hard to imagine. Children were dropped off at a daycare facility and were victimized by one of the occupants of the home.” He added, “The victimization and the wreckage here is monumental to multiple families.” Judge Maloney explained that “lives have been shattered by the defendant’s actions,” and no mitigating factors exist to warrant a sentence below the maximum authorized.
“This U.S. Attorney’s Office is working hard to protect the vulnerable and prevent child exploitation,” said U.S. Attorney Patrick Miles. “We are vigorously prosecuting those who create and support the market for child pornography, and they are facing significant prison sentences.”
“This case is particularly disturbing because the defendant had direct access to children,” said Marlon Miller, special agent in charge of HSI Detroit. “But it also illustrates the severe penalties that await those who abuse their positions of trust to engage in this type of depraved activity.”
Stiehl was arrested April 25, 2014, and has been in custody since that time. The families of all the children photographed or videotaped by Stiehl were identified and notified directly by investigators. Families with questions about whether their children were victims are invited to contact Homeland Security Investigations at 616-235-3936, extension 2215.
The charges are the result of an investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Michigan State Police Internet Crimes Against Children. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
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Long Island Man Pleads Guilty in Connection with $5 Million Ponzi SchemeRead the Press Release
Long Island resident Robert Rocco, 49, pleaded guilty today before U.S. District Judge Leonard D. Wexler at the federal courthouse in Central Islip, NY, to wire fraud in connection with a series of fraudulent investment schemes that he created. Rocco faces a maximum penalty of 20 years in prison, a fine of over $250,000, and restitution of up to $3,498,940.13. Sentencing will be scheduled when the Presentence Investigation Report is completed.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For nearly seven years, rather than make sound investment decisions as he had promised, Robert Rocco fleeced friends, neighbors, and colleagues and used their money to fund his own lavish lifestyle. His lies caught up to him and his scheme was revealed. Today, through his plea of guilty, Rocco has finally admitted to his criminal conduct,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation for its work on the investigation.
Rocco, while acting as the president of the Dix Hills Soccer Club, solicited club members and volunteers, friends, and neighbors to invest money in a series of businesses that he formed including, Limestone Capital Services (“Limestone”), Advent Merchant Services, LLC and Advent Equity Partners, LLC, that Rocco claimed would earn high rates of return on investments. Rocco told investors that they would receive returns of up to 18% of their principal investment annually through the companies’ investments in ventures that purportedly included providing loans to finance wholesale cigarette purchases and a credit card processing venture. Rocco solicited and received approximately $5 million in investor money between 2006 and 2013, which was not invested as promised. Instead, he misappropriated the money and solicited money from new investors which he used to pay purported profits to earlier investors, thus concealing the earlier misappropriation. Rocco also sent account statements to investors that falsely showed that investors’ accounts had earned high rates of return. Between January and March 2010, Rocco deposited $66,915 in checks from the soccer club into Limestone and later distributed the proceeds of the checks to early investors in Limestone, leaving the soccer club with no funds to operate. In April 2010, Rocco sought and received donations to allow the club to continue operations.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
ROBERT ROCCO
Age: 49
Dix Hills, New York
E.D.N.Y. Docket No. 13-CR-664 (LDW)
Loan Modification Fraud Ringleader Sentenced to 132 Months in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Jason Vitulano, 39, of Boca Raton, Florida, was sentenced by U.S. District Judge Kenneth Marra to 132 months in prison, to be followed by three years of supervised release. Vitulano was also ordered to pay $5.9 million in restitution. Vitulano previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided. All ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Defendant Jeffrey Taylor is set for sentencing on January 23, 2015 at 10:30 am. The remaining co-defendants received sentences ranging from 21 months to 72 months in prison.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Jason Vitulano was previously charged and pled guilty in federal court in two separate mortgage fraud cases, one in Palm Beach County in which he was sentenced to 63 months in prison (Case No. 09-80156-CR-DMM), and one in Pensacola, Florida in which he was sentenced to 77 months in prison (Case No. 13-CR-61-MCR), to be served consecutively to the Palm Beach case. In sentencing Vitulano on Friday, Judge Marra specifically ordered that the 132-month sentence on the 2013 case run concurrent with the 77-month sentence Vitulano is currently serving.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Kailua-Kona Man Sentenced to 155 Months Imprisonment for Distributing Methamphetamine on the Big IslandRead the Press Release
HONOLULU – Senior United States District Judge Alan C. Kay yesterday sentenced Kali Lotoaiki Laulea, 33, of Kailua-Kona, Hawai’i County, to 155 months imprisonment for three counts of methamphetamine distribution. A federal jury found Laulea guilty of the three charges in August of this year after a five-day trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial showed that Laulea knowingly distributed a total of 484 grams of pure crystal methamphetamine over the course of three drug transactions that Laulea conducted in Kailua-Kona during August 2013.
The investigation that resulted in the charges against Laulea was conducted by the Federal Bureau of Investigation, with the assistance of the Hawaii County Police Department and the Drug Enforcement Administration. Assistant United States Attorneys Andrea Hattan and Mark Inciong handled the prosecution.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of being a felon in possession of a firearm.
Eric M. Wiley, 30, of Kansas City, was found guilty of the charge contained in a May 22, 2014, federal indictment.
On May 11, 2014, Kansas City, Mo., police officers were dispatched to the BP gas station/convenience store at East 39th Street and Hardesty in response to a report of man brandishing a firearm during an argument about his pit bull dog running loose. When Wiley saw the officers approach the convenience store, he let go of the leash attached to his dog and fled on foot. A foot chase ensued. The pursuing officers saw Wiley grab the right side of his waist. Wiley’s jersey was untucked and hung over the waist band of his pants. As Wiley held his right side, the pursuing officers saw that he was holding a bulky item under the shirt.
Wiley fell to the ground. As he was falling, one of the officers saw something fall from his clothing. After Wiley was apprehended and arrested a short distance away from the spot where he fell, officers searched the area and found a loaded Jennings Firearms .380-caliber semi-automatic handgun with the serial number filed off.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wiley has a prior felony conviction for burglary.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the verdict to U.S. District Judge Beth Phillips, ending a trial that began Monday, Dec. 8, 2014.
Under federal statutes, Wiley is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney William L. Meiners and Special Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Investigation into Drug Activity at Northwest Dallas Club Results in Federal Indictments and Arrests of 12 Defendants on Conspiracy and Drug Distribution ChargesRead the Press Release
DALLAS — An investigation that began early this summer by the Dallas Police Department into drug activity at a club in northwest Dallas has resulted in seven federal indictments, which were returned by a federal grand jury last week and unsealed today, charging 15 individuals with conspiracy and drug distribution offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Twelve of the 15 defendants charged federally were arrested at various locations in North Texas, including at and near the club, which is known as Eternal Eden Afterhours, located at the Jaguars Club on Reeder Road. Firearms and drugs were seized during the arrests.
Defendants indicted are listed below; those marked with an “*” are in custody:
*Jose Antonio Canelo, a/k/a “Tony,” 31
*Joshua Lawrence Saddler, a/k/a “Cowboy,” 25
Canelo and Saddler are each charged with one count of conspiracy to distribute a controlled substance. If convicted, the offense carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. This indictment alleges that beginning on approximately August 1, 2014, Canelo and Saddler conspired together and with others to possess with the intent to distribute and to distribute a mixture or substances containing cocaine, a Schedule II controlled substance.
*Hunter Lee Foster, 23
Rosa Aidee Gomez Salinas, a/k/a “Jade,” 21
Foster and Salinas are each charged with one count of conspiracy to distribute a controlled substance. If convicted, the offense carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. This indictment alleges that beginning on approximately August 1, 2014, Foster and Salinas conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of 3,4-methylenedioxy-N-ethylcathinone (ethylone), a positional isomer of butylone, a Schedule I controlled substance.
*Doniel Dominique Hall, 25
*Charles Michael Scott, a/k/a “T Scott,” and “Carlos,” 24
*Debahni Nora Gorandinary, 19
Shelby Jean Hunter Owen, 19
Hall, Scott, Gorandinary and Owen are each charged with two counts of conspiracy to distribute a controlled substance. In addition, Hall is charged with one count of possession with intent to distribute a controlled substance and one count of possessing a firearm in furtherance of a drug trafficking crime. If convicted, conspiracy count one carries a maximum statutory penalty of 20 years in federal prison and a $1 million. Conspiracy count two carries a maximum statutory penalty of 10 years in federal prison and a $500,000 fine. The possession with intent to distribute count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The firearm count carries a maximum statutory penalty of seven years in federal prison and a $250,000 fine. This indictment alleges that beginning on approximately August 1, 2014, the four defendants conspired together and with others to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of ethylone, a positional isomer of butylone, a Schedule I controlled substance and a mixture or substance containing a detectable amount of Alprazolam, a Schedule IV controlled substance. It further alleges that on November 4, 2014, Hall possessed, with intent to distribute, methamphetamine and possessed a firearm in relation to and in furtherance of the drug trafficking crime.
*Jorge Luis Rios, Jr., 31
*Jose Manuel Hernandez, 23
Rios and Hernandez are each charged with one count of conspiracy to distribute a controlled substance. If convicted, each faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Rios and Hernandez conspired together and with each other to possess with intent to distribute and to distribute a mixture of substance containing a detectable amount of cocaine, a Schedule II controlled substance.
*Rachel L. Lucero, 27
Lucero is charged with one count of conspiracy to distribute a controlled substance and one count of possession with intent to distribute a controlled substance. If convicted, the conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million and the possession count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Lucero conspired with others to possess with the intent to distribute methamphetamine, a Schedule II controlled substance. It further alleges that on October 17, 2014, Lucero possessed methamphetamine with the intent to distribute.
India Small, 28
*Karina Shcherb, 22
Small and Shcherb are each charged with one count of conspiracy to distribute heroin. In addition, Small is charged with two, and Shcherb with one, counts of possession with intent to distribute heroin. If convicted on the conspiracy count, each faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Each drug possession count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Small and Shcherb conspired together and with others to distribute heroin. It further alleges that on August 22, 2014 and August 29, 2014, Small possessed heroin with the intent to distribute it. It also alleges that on August 22, 2014, Shcherb possessed heroin with the intent to distribute it.
*Christopher Chance Valdez, 20
*Bridget Elyse Tolle, 19
Valdez and Tolle are each charged with one count of conspiracy to distribute a controlled substance. If convicted, each defendant faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Valdez and Tolle conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of 25C-NBOMe and 25I- NBOMe, a Schedule I controlled substance, which is commonly known as N-bomb, Smiles, 25I, and 25C.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The Dallas Police Department Narcotics and Homicide Unit investigated.
Assistant U.S. Attorney Phelesa Guy is prosecuting.
International Narcotics Trafficker Extradited from Honduras to United States SentencedRead the Press Release
The first Honduran national extradited to the United States for drug trafficking was sentenced today to serve 20 years in prison, to be followed by five years of supervised release, for his involvement in a conspiracy to distribute cocaine in the United States.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and A.D. Wright, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
U.S. District Court Judge Darrin P. Gayles’ sentencing of Carlos Arnoldo Lobo, a/k/a “Negro,” 39, of, San Pedro Sula, Honduras, was the culmination of a five-year multi-agency investigation into the drug smuggling activities operating near La Ceiba, Honduras. To date, the investigation has resulted in the indictment and conviction of 18 drug traffickers who worked for Lobo. Lobo’s network coordinated the smuggling of cocaine by vessels from Colombia and Ecuador, to Panama and Honduras, then into Guatemala and other countries, including Mexico and the United States. As the owner and operator of several dozen vessels, he controlled drug shipments into and out of the eastern coast of Honduras.
Lobo pled guilty on September 5, 2014, to conspiring to distribute cocaine knowing that the cocaine would be imported into the United States. The conspiracy involved more than 450 kilograms of cocaine during the three years charged in the indictment.
“U.S. Attorney Ferrer stated, “As a result of the extraordinary efforts of U.S. law enforcement working together with our Honduran law enforcement partners, one of the most significant drug traffickers in Central America has been brought to justice. This case serves as an example that there are no borders when it comes to prosecuting international narcotrafficking; we will continue to work with our international law enforcement partners to bring drug traffickers who distribute illegal substances in the United States to justice.”
“Lobo’s arrest and sentence has led to the dismantling of a large scale drug trafficking organization responsible for smuggling hundreds tons of cocaine into our country”, said HIS Special Agent in Charge Erichs. “The arrest and sentence should send a strong message to those responsible for the importation of illegal drugs into the United States that we will not rest until they are brought to justice.”
DEA Acting Special Agent in Charge Wright stated, “The sentencing of Carlos Lobo, one of the biggest cocaine transporters in the international drug trade, is a reminder that justice will be served. The DEA will continue to pursue the highest level of drug traffickers and work with our international and domestic partners to dismantle these criminal enterprises that threaten to bring these dangerous drugs into our borders.”
Carlos Arnoldo Lobo’s sentence is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by HSI in conjunction with the DEA Miami Field Division. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of ICE-HSI and DEA; and thanked the Office of International Affairs of the Department of Justice, ICE-HSI Attaché’s Office in Tegucigalpa, Honduras, and the DEA Attaché’s Office in Tegucigalpa, Honduras, for their significant assistance and support during the arrest and extradition of the defendant.
Mr. Ferrer also commended the efforts of President of the Honduran Republic Juan Orlando Hernàndez Alvarado and other Honduran officials for their cooperation and support during the extradition and prosecution of Carlos Arnoldo Lobo. This case was prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Individual Pleads Guilty for Carjacking That Resulted in MurderRead the Press Release
SAN JUAN, Puerto Rico – Edwin Torres-Osorio, aka “Bebe,” pled guilty yesterday to Count one of the indictment which charged that the defendant, along with three others, aiding and abetting each other, with the intent to cause death and serious bodily harm, did knowingly, willfully and intentionally take a Toyota Matrix that had been transported, shipped or received in interstate and foreign commerce, from the person of José E. Gómez-Saladín, by force, violence and intimidation by striking him in the head, and in perpetration of said offense caused his death, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The sentence recommendation contained in the plea agreement is for 24 to 30 years imprisonment.
On November 29, 2012, Ruben Delgado-Ortiz, Torres-Osorio, Alejandra Berrios-Cotto and Lenisse Aponte-Aponte devised a scheme to rob a victim because Aponte-Aponte did not have enough money to pay her rent. As part of the scheme, Berrios-Cotto and Aponte-Aponte would lure a victim and then Delgado-Ortiz and Torres-Osorio would approach the victim regarding a fictitious debt Aponte-Aponte owed Delgado-Ortiz, in the hopes the victim would satisfy the fictitious debt.
Later that night, the four co-defendants made their way to Padial Street. A blue Toyota Matrix stopped nearby and Aponte-Aponte gave Delgado-Ortiz and Torres-Osorio the signal to approach the car and execute the plan. Delgado-Ortiz and Torres-Osorio entered the car, and Delgado-Ortiz told Aponte-Aponte she had to give him the money she owed him. Delgado-Ortiz had pepper spray in his pocket and used it to simulate the presence of a weapon. The driver, later identified as José E. Gómez-Saladín, eventually drove to an ATM machine where he, accompanied by Delgado-Ortiz, withdrew $400.00 and gave it to Delgado-Ortiz.
The group later drove towards Sabarona and discussed Gomez-Saladín’s fate since he had seen their faces and could identify them. Eventually, the group went to a gas station and purchased gas. Sometime thereafter, Delgado-Ortiz forced Gómez-Saladín to stop driving the car. Delgado-Ortiz then drove the Matrix to an old abandoned prison in Guavate. There, parked the car, and everyone got out. Aponte-Aponte used her cell phone to illuminate the area. Delgado-Ortiz and Berriós-Cotto escorted Gómez-Saladín from the car and told him to kneel. They doused him with gasoline and lit him on fire. Gómez-Saladin began yelling and got up and started to run. He stripped off his pants before tripping on a mound of garbage that was at the scene. Delgado-Ortiz and Berríos-Cotto followed Gómez-Saladin and began hitting him with sticks and tubing they found in the area. They beat Gómez-Saladín until he was barely breathing. The four co-defendants then gathered the sticks and tubing used to beat Gómez-Saladín, placed them in the car, and left the prison in the Matrix. His partially decomposed body was found by authorities several days later where the defendants had left him.
Delgado-Ortiz then drove to another gas station and they purchased more gasoline in order to burn the Toyota Matrix. They then proceeded towards La Macanea Road. There, they exited the car and Torres-Osorio pour gas over the seats and the dashboard. He then set the car on fire. The four co-defendants then left the scene on foot. They stopped at a Shell Gas Station to buy refreshments. They also unsuccessfully attempted to withdraw more money from Gómez-Saladín’s bank account. The co-defendants left the area on foot and went to their respective homes.
Sentencing hearing was scheduled for April 7, 2015. The case is being prosecuted by Assistant U.S. Attorney Julia Meconiates and Senior Litigation Counsel Scott Anderson.
Ruben Delgado-Ortiz pled guilty on October 24, 2014; sentencing is scheduled for February 19, 2015. He faces a sentence of 30 years.
Indictment: Former Bel Aire Police Officers Lied About Purchase of FirearmsRead the Press Release
WICHITA, KAN. – Two former officers of the Bel Aire Police Department were charged Tuesday in a federal indictment alleging that one of them devised a scheme to buy and sell firearms by falsely claiming the firearms were property of the Bel Aire Police Department and would be used for law enforcement purposes, U.S. Attorney Barry Grissom said. The second former officer is accused of trying to cover up the crime.
Nathan A. Mavia, 26, Wichita, Kan., is charged with one count of mail fraud. Mavia was a Bel Aire officer from Feb. 2012 to June 2014.
Robert S. McCaslin, 40, Wichita, Kan., is charged with one count of making false statements during a federal investigation. McCaslin was a Bel Aire Officer from August 2007 to February 2014.
The indictment alleges that in order to buy firearms at reduced prices for personal use or resale Mavia devised a scheme to falsely certify that the firearms would be owned by the Bel Aire Police Department and would be used for law enforcement purposes. The indictment alleges:
- Mavia ordered three rifles from Sig Sauer, falsely certifying that they were being acquired for performing official duties, not for personal use. The order form was accompanied by a letter on police department letterhead, a form signed by the former chief of police in Bel Aire, a copy of Mavias’ police identification card and a cashier’s check. On Nov. 15, 2013, one of the rifles (a Sig Sauer Model 716 Patrol, 762 caliber) was delivered to the Bel Aire Police Department. Two other rifles were delivered to another location.
- On Jan. 29, 2014, the interim police chief in Bel Aire found an FNH, model PS90, 5.7X28 caliber rifle in the department armory. Department policy did not allow officers to carry such a firearm on duty. He contacted FNH and learned that two other PS90 rifles were purchased at the same time. The order for the guns was accompanied by a letter stating that the guns were being ordered for officers’ official duties, not for personal use or resale. The City of Bel Aire sent information to the Kansas Department of Revenue stating that the rifles were tax exempt because they were being purchased for the exclusive of the Bel Aire Police Department.
- On Dec. 20, 2013, McCaslin was interviewed by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Sedgwick County Sheriff’s Office. He stated that he understood the PS90 firearms were purchased for personal use. He said that Mavia and another officer each ordered one. He said he did not know who received the third PS90. During a second interview on Dec. 23, 2013, McCaslin stated the third PS90 possibly was sold to one of his friends. Investigators located a man who purchased a PS90 from a Bel Aire officer for $699. No ATF Form 4473 was completed for the purchase.
- The indictment alleges Mavia paid another officer for one of the PS90 rifles, knowing that the rifle was being purchased by the officer, and that Mavia did not complete the required ATF form. Mavia knew at the time of the purchase that police department policy did not allow officers to carry this type of firearm.
If convicted, Maria faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the mail fraud count; and McCaslin faces a maximum penalty of five years and a fine up to $250,000 on the charge of making a false statement. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sedgwick County Sheriff’s Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE HERNANDEZ-HERNANDEZ, age 35, a citizen of Honduras, was sentenced after having pled guilty to a one-count indictment for illegal reentry of a previously removed alien.
U.S. District Judge Jay C. Zainey sentenced HERNANDEZ-HERNANDEZ to 12 months imprisonment followed by one year of supervised release, and a $100 special assessment.
According to court documents, on or about September 15, 2014, HERNANDEZ-HERNANDEZ, reentered the United States after having been previously removed on July 26, 2013.
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 was in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARLON JOEL PAZ-MENDOZA, age 29, a citizen of Honduras, was sentenced today after having pled guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Judge Jay C. Zainey sentenced PAZ-MENDOZA to time served since having been imprisoned since March 20, 2014, followed by one year of supervised release, and a $100 special assessment.
According to court records, on or about March 20, 2014, PAZ-MENDOZA was found in the United States after having been officially deported and removed on two prior occasions, most recently on or about March 14, 2014.
U.S. Attorney Polite praised the work of Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Harrisburg Man Sentenced for Robbing Old National BankRead the Press Release
Follow @SDILNewsShawn Thomas Gregory, 39, of Harrisburg, Illinois, was sentenced on December 8, 2014, in United States District Court in East St. Louis to a term of 141 months in federal prison for his role in robbing the Harrisburg branch facility of Old National Bank (“ONB”), Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Gregory pled guilty on September 17th to a four-count indictment charging him with conspiracy to commit bank robbery, aiding and abetting a bank robbery, aiding and abetting the use of a firearm during a crime of violence, and being a felon in possession of a firearm.
Evidence introduced in support of Gregory’s guilty plea and sentence showed that Gregory recruited his cousin, codefendant Casey Allan Heflin of Boaz, Kentucky, to assist him in robbing ONB on October 17, 2013. As shown by the bank’s video surveillance system, at approximately 9:09 a.m. on that date, Heflin entered the ONB facility with a loaded .45 caliber/.410 gauge handgun which had been provided to him by Gregory the prior evening. Heflin pointed the firearm at a teller and demanded money. Gregory waited in the parking lot to act as the get-away driver. After obtaining $4197 from the teller, Heflin and Gregory fled Harrisburg. They later divided the money from the robbery and split up. Gregory was arrested later that day in Harrisburg and Heflin was arrested the following day in Cape Girardeau, Missouri.
In addition to the near twelve year prison term, Gregory was ordered to pay $400 in special assessments and $4197 in restitution to ONB. Gregory was placed on a 3 year term of supervised release to follow his incarceration.
Heflin also pled guilty to robbing ONB and was previously sentenced to a term of 100 months in prison and also ordered to pay $4197 in restitution.
Gregory has been held without bond in the custody of United States Marshal since his arrest on federal charges in July 2014. Following sentencing, he was returned to the Marshal’s custody to await designation to a Federal Bureau of Prisons facility.
The federal investigation into the robbery was conducted by the Federal Bureau of Investigation, the Illinois State Police Zone 7 Investigations unit in Carmi, and the United States Attorney’s Office.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Grand Canyon River Runner Sentenced for Dumping Trash in the Colorado RiverRead the Press Release
FLAGSTAFF, Ariz. – On Dec. 1, 2014, Nels Nicholas Niemi, 75, of Haines, Alaska was sentenced by U.S. Magistrate Judge Mark E. Aspey to pay fines totaling $1,500.00, along with court costs of $966.76, and assessments of $20.00 after having been found guilty of dumping refuse into the Colorado River and illegally collecting firewood in violation of his non-commercial private rafting trip permit. The defendant was convicted after a bench trial held on Oct. 29, 2014.
United States Attorney John S. Leonardo said “this prosecution and sentence remind all users of the Colorado River that the rules and regulations designed to protect the ecosystem within the Grand Canyon National Park are important and will be vigorously enforced.”
Evidence at trial showed that Niemi was the trip leader of a 12-day non-commercial rafting trip down the Colorado River through the Grand Canyon National Park. He was apprised by National Park Staff at the outset of his trip of the requirements of his permit including that driftwood could not be collected for fires and, at the end of the trip, the group take with them all refuse, trash and garbage produced. During the course of the river trip, trash was dumped into the Colorado River on a daily basis, either by Niemi or at his direction as the trip leader, and Niemi collected driftwood, which he used to make fires each night
At sentencing, evidence was produced showing that Niemi was employed by a commercial expedition company, which advertised the company’s commitment to the “Leave No Trace Behind” principle. The Court, in imposing the fines, costs and assessments, expressed its concern that Niemi displayed complete disregard for regulations designed to protect the river ecosystem. U.S. Magistrate Judge Aspey noted, “It is clear that you chose to abide by those regulations with which you agreed, and ignored those with which you did not.” The Court noted that such an attitude was particularly dangerous given the thousands of tourists who raft the Colorado River through the Grand Canyon each year.
The investigation in this case was conducted by National Park Service. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Flagstaff.
CASE NUMBER: CR- 3:14-po-04291-MEA
RELEASE NUMBER: 2014-071_ NiemiFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former eBAY Manager Pleads Guilty to Stealing More Than $200,000 in IRS RefundsRead the Press Release
SAN JOSE – Sanjeev Bais pleaded guilty yesterday afternoon to 14 counts of theft of government property, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the plea, between February 2009 and April 2010, Bais and his partner stole $224,792 in IRS refunds by filing false tax returns. Bais, an eBay, Inc. manager at that time, had an email list consisting of employees of San Jose based technology companies. Using that email list, Bais sent an email soliciting tax return preparation services by a Certified Public Accountant named “Raj Malhotra.”
Bais admitted that while operating under the alias “Raj Malhotra,” he asked these victims for personal information, including copies of their driver’s licenses, Forms W-2, Forms 1099 and 1098, and other tax related documents. He also instructed these people to pay for the tax returns by submitting payments to his PayPal account. Bais and his partner prepared tax returns showing false Schedule C business losses, false “Other” losses, and false Schedule A items. Additionally, instead of sending the victims copies of the tax returns filed with the IRS, Bais and his partner sent fake copies that accurately reflected the individual tax liability of the victims. Bais and his partner submitted the tax returns to the IRS using Intuit, Turbo Tax, and by submitting paper tax returns. To further conceal his crimes, Bais and his partner deposited cash into the victims’ real bank accounts in amounts that matched the refunds shown on the fake tax returns that he sent to them. Bais used the fraudulently obtained money to pay his mortgage on a property in Belmont and provided $27,000 to his partner to deposit into an account with the State Bank of India.
Bais, 41, of San Jose, was charged on April 17, 2013, with 14 counts of theft of government property and 14 counts of aggravated identity theft. He pleaded guilty to the 14 counts of theft of government property.
Bais’s sentencing hearing is scheduled for March 30, 2015, at 1:30 p.m. before the Honorable Edward J. Davila, United States District Court Judge, in San Jose. The maximum statutory penalty for each count of theft of government property, in violation of 18 U.S.C. § 641, is 10 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Moore is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation the IRS, Criminal Investigation.
Please note, an indictment contains only allegations and, as with all defendant, Sanjeev Bais must be presumed innocent unless and until proven guilty.
Former United Commercial Bank Chief Financial Officer Convicted of Conspiracy to Mislead AuditorsRead the Press Release
SAN FRANCISCO – Craig S. On pleaded guilty today to one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant, announced U.S. Attorney Melinda Haag; Federal Deposit Insurance Corporation, Office of the Inspector General, Special Agent in Charge Wade Walters; Special Inspector General for the Troubled Asset Relief Program Christy Romero; Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Office of the Inspector General, Special Agent in Charge Scott Redington; and FBI Special Agent in Charge David J. Johnson.
On, 62 of Berkeley, Calif., is the former Chief Financial Officer of United Commercial Bank (UCB). UCB was a commercial bank headquartered in San Francisco, Calif., with branch offices throughout the United States as well as in China and Taiwan. Until 2009, its holding company, UCBH Holdings, Inc., was publicly traded on NASDAQ.
On Nov. 6, 2009, UCB was taken over by the Federal Deposit Insurance Corporation (FDIC). According to the Information, the Troubled Asset Relief Program provided approximately $297 million in federal funds to UCB on Nov. 14, 2008, during the 2008 financial crisis.
According to court documents, On, beginning in 2009, together with others, engaged in a conspiracy to deceive UCB’s auditors by manipulating the bank’s books and records in a manner that misrepresented and concealed the bank’s true financial condition and performance and caused the bank to issue materially false and misleading financial statements in violation of 18 U.S.C. § 371. On further admitted that he did not inform UCB’s auditors about approximately $67 million in potential losses from the sale of loans or “notes” held by the bank even though he knew he was required to do so.
The maximum statutory penalty for a conviction for conspiracy, in violation of 18 U.S.C. § 371, is five years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Adam A. Reeves and Robert David Rees are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Denise Oki, Phillip Villanueva, and Bridget Kilkenny. The prosecution is the result of a five year investigation by the FDIC Office of Inspector General, the SIGTARP, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau Office of Inspector General, and the FBI.
Former Union President Sentenced to 22 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - The former president of International Longshoremen’s Association (ILA) was sentenced today to 22 months in prison for conspiring to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from 2008 through 2011, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Three of a second superseding indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
During their guilty plea proceedings, Leonardis – along with Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from approximately 2006 through 2007; and Robert Ruiz, 56, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 and former ILA representative – admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term Judge Cecchi sentenced Leonardis to serve three years of supervised release.
Aulisi and Ruiz previously pleaded guilty before Judge Cecchi to conspiring to extort Christmastime tributes from ILA Local 1235 members. In October 2014, Aulisi and Ruiz were sentenced to 18 months and 20 months in prison, respectively.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-431Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
Former Union President Sentenced to 22 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - The former president of International Longshoremen’s Association (ILA) was sentenced today to 22 months in prison for conspiring to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from 2008 through 2011, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Three of a second superseding indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
During their guilty plea proceedings, Leonardis – along with Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from approximately 2006 through 2007; and Robert Ruiz, 56, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 and former ILA representative – admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term Judge Cecchi sentenced Leonardis to serve three years of supervised release.
Aulisi and Ruiz previously pleaded guilty before Judge Cecchi to conspiring to extort Christmastime tributes from ILA Local 1235 members. In October 2014, Aulisi and Ruiz were sentenced to 18 months and 20 months in prison, respectively.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-431
Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
Former St. Clair Sheriff's Deputy, Inmate Indicted for Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former St. Clair County, Mo., sheriff’s deputy and a former county jail inmate were indicted by a federal grand jury today for their roles in a wire fraud scheme.
Michael E. Mullaney, 52, of Lowry City, Mo., and William E. Parker, 52, of Fort Ritchie, Fla., formerly of Urich, Mo., were charged in an indictment returned by a federal grand jury in Springfield, Mo.
Mullaney was a deputy with the St. Clair County Sheriff’s Department who arrested Parker for first degree burglary on Feb. 20, 2010. While Parker was incarcerated, the indictment says, he and Mullaney devised a scheme to defraud Work Force West Virginia to claim unemployment benefits for Parker to which he was not entitled.
Today’s indictment alleges that Mullaney obtained personal information from Parker in order to make Parker’s claim for unemployment benefits through Work Force West Virginia. Mullaney allegedly completed an Internet form with Parker’s personal information to fraudulently certify Parker’s eligibility for unemployment benefits. Parker was not eligible for unemployment benefits, the indictment says, because he was not available and willing to accept full-time suitable work while he was incarcerated.
As a result of the fraud scheme, the indictment says, Parker received $5,388 on a bank debit card between Feb. 25 and May 10, 2010.
Today’s indictment also contains a forfeiture allegation, which would require Mullaney and Parker to forfeit to the government $5,388, which represents the proceeds obtained from the alleged offense.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the FBI, the Missouri State Highway Patrol, the St. Clair County, Mo., Sheriff’s Department and the Work Force West Virginia Unemployment Compensation Division.
- Former School Teacher Detained Pending Child Pornography Charges
Former Grady Hospital Payroll Director Convicted of Embezzlement SchemeRead the Press Release
ATLANTA - Donald Thomas, the former payroll director for the Grady Memorial Hospital Corporation, has been convicted by a jury for stealing over $480,000 from one of Georgia’s largest hospitals.
“Thomas embezzled from a longstanding public institution that provides medical care to the poor and underserved in the Atlanta area and beyond,” said United States Attorney Sally Quillian Yates. “By its guilty verdict, the jury has held him accountable for stealing from taxpayers and Grady’s patients.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “At a time when health care institutions such as Grady Hospital are under the strain to meet the needs of their community, to include those served by publicly funded programs, the criminal actions of former Grady Hospital Payroll Director Thomas are all that more egregious. The conviction of Thomas should serve as a reminder that the FBI is part of an oversight process involving any and all allegations of thefts from federal health care programs and their related institutions and anyone involved in such activity could find themselves in front of a jury trial on similar charges.”
According to United States Attorney Yates, the charges and other information presented in court: From December 1994 through June 2011, Thomas served as Assistant Controller for Grady Memorial Hospital Corporation (“Grady”). Grady is one of the largest providers of charitable care in the state of Georgia. It relies significantly on federal funding, including Medicare and grants, to provide medical services regardless of ability to pay.
From January 2008 until June 2011, Thomas oversaw payroll for all 5500 Grady employees. He had access to and knowledge of Grady’s payroll system, which he used to falsify additional vacation pay and severance pay for terminated Grady employees. Since the employees had already left Grady, Thomas calculated that it was less likely that his fraud would be detected. After adding the additional compensation to the terminated employees’ payroll records, Thomas then removed their bank account numbers and replaced them with his own. As a result, the fraudulent payments were deposited into his own bank accounts. A total of 134 fraudulent payments were made in this manner.
Additionally, in two instances, Thomas falsified pay and created paper checks for the additional compensation. The checks were made payable to terminated Grady employees; however, Thomas forged the employees’ signatures to endorse the checks, and deposited them into his own bank account.
The scheme was discovered when a terminated employee contacted Grady to inform the payroll staff that her 2011 W-2 tax form showed more compensation than she had actually earned. Further investigation revealed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas. Though Thomas had attempted to cover up his embezzlement by reversing most of the fraudulent changes, in a few instances, he had failed to do so. As a result, additional wages and compensation were added to several employees’ year-end W-2 tax forms.
Over the course of the scheme, Thomas obtained over $480,000 in falsified vacation and severance pay.
The jury convicted Thomas, 55, of Atlanta, Ga., of six counts of theft from an organization receiving federal funds and six counts of wire fraud related to the fraudulent direct deposit payments. He was also convicted of two counts of bank fraud related to the forged checks. Sentencing is scheduled for February 25, 2015, at 10:30 a.m. before United States District Judge Charles A. Pannell, Jr.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Shanya Dingle and G. Scott Hulsey are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Freedom Industries executive released on bondRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced that former Freedom Industries executive Gary Southern was arrested Monday, December 8, 2014, in the Middle District of Florida. He made his initial court appearance today at 1:00 p.m. before United States Magistrate Judge Carol Mirando in Ft. Myers, Florida. Southern was released on a $100,000 unsecured bond, with his travel restricted to the Middle District of Florida and the Southern District of West Virginia. He was also required to surrender his passport and lawful permanent resident card. Southern’s next court appearance is set for December 18, 2014, at 2:00 p.m., for a preliminary hearing in front of U.S. Magistrate Judge Dwane Tinsley at the Robert C. Byrd United States Courthouse in Charleston, West Virginia. Southern’s arrest comes as a result of a criminal complaint filed Monday, December 8, 2014, in the Southern District of West Virginia, charging him with bankruptcy fraud, lying in a bankruptcy case and committing wire fraud by filing false documents in a bankruptcy case.
Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former FBI Agent Sentenced for Falsifying Background Check InformationRead the Press Release
Former FBI agent and Fort Lauderdale resident was sentenced today for falsifying background check interviews that he performed for potential employees of government entities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jay H. Donly, Acting Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), made the announcement.
John McDonough, 69, of Fort Lauderdale, Florida, was sentenced by U.S. District Judge Robert N. Scola, Jr., to two years of probation and ten days of intermittent confinement in prison. On August 19, 2014, John McDonough pled guilty to one count of knowingly falsifying records in federal investigations, in violation of Title 18, United States Code, Section 1519. McDonough, a former FBI agent, worked as an independent contractor performing background check investigations for potential employees of government entities. During a quality control check, it was discovered that McDonough had falsified background check interviews for potential employees of Customs and Border Protection.
Mr. Ferrer commended the investigative efforts of DHS-OIG and the assistance provided by the Department of Justice Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Connecticut Resident Charged with Attempting to Travel to China with Stolen U.S. Military Program DocumentsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that YU LONG, 36, formerly of New Haven, Conn., has been arrested and charged with attempting to travel to China with sensitive proprietary documents that set forth detailed equations and test results used in the development of technologically advanced titanium for U.S. military aircraft. The documents were taken from a Connecticut defense contractor where LONG had been employed.
LONG was arrested on a federal criminal complaint on November 7, 2014 at a residence in Ithaca, N.Y., after he had attempted, two days earlier, to fly to China from Newark Liberty International Airport in New Jersey, in the possession of the sensitive, proprietary material. LONG initially appeared in federal court in Syracuse, N.Y., on November 8 and 10, 2014, where he was ordered detained pending his transport to Connecticut to face the charges.
LONG appeared this morning before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, Conn., who ordered the criminal complaint to be unsealed and LONG to remain in custody.
As alleged in the complaint affidavit and in statements made in court, LONG holds Chinese citizenship and is a lawful permanent resident of the U.S. From approximately August 2008 to May 2014, LONG worked as a Senior Engineer / Scientist at a research and development center for a major defense contractor in Connecticut (“Company A”). Both during and after his employment there, LONG traveled to the People’s Republic of China. Most recently, on August 19, 2014, LONG returned to the U.S. from China through John F. Kennedy International Airport in New York and, during a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, LONG was found in the possession of $10,000.00 in undeclared U.S. cash, registration documents for a new corporation being set up in China, and a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application materials highlighted certain of LONG’s work history and experiences that he claimed to have obtained while employed at Company A, including work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.
According to the criminal complaint and statements made in court, on November 5, 2014, LONG boarded a flight from Ithaca to Newark Liberty International Airport, with a final destination of China. During LONG’s layover in Newark, CBP officers inspected LONG’s checked baggage and discovered that it contained, among other things, sensitive, proprietary and export controlled documents from another major defense contractor, located outside the state of Connecticut (“Company B”). Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Company A and Company B, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to stringent restrictions on further dissemination. Company B reviewed the Company B documents found in LONG’s possession at Newark Liberty Airport and confirmed that it provided the documents to Company A as part of the consortium. Company B further confirmed that LONG was never an employee of Company B. A review of Company A computer records indicated that LONG had printed the documents while employed at Company A. The documents bore warnings that they contained sensitive, proprietary and export controlled material, which could not be copied or communicated to a third party. Moreover, since 1989, the U.S. has imposed a prohibition upon the export to China of all U.S. defense articles and associated technical data as a result of the conduct in June 1989 at Tiananmen Square by the military of the People’s Republic of China.
The complaint charges LONG with transporting, transmitting and transferring in interstate or foreign commerce goods obtained by theft, conversion, or fraud. The charge carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being led by the Federal Bureau of Investigation in New Haven in coordination with Homeland Security Investigations in New Haven and Newark. U.S. Attorney Daly also thanked the Federal Bureau of Investigation in Ithaca, Syracuse and Newark, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.
This case is being prosecuted by Assistant U.S. Attorneys Stephen Reynolds and Krishna Patel of the District of Connecticut, and Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES).
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Greenville, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Abbeville County Resident Indicted for Distribution of Child Pornography
Kenneth Mark Brooks, age 53, of Donalds, South Carolina, was charged in a 2-count Indictment with distributing child pornography. The penalty Brooks could receive for each count is not less than five (5) years and not more than twenty (20) years imprisonment and a maximum fine of $250,000.00. This case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Foreign Nationals Charged with Illegal Re-entry
Celerino Santaana-Soriano and Andres Francisco were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Individual Indicted for Failure to Register as a Sex Offender
Billy Owens Orsini was charged in a 1-count Indictment with failure to register as a sex offender, a violation of Title 18, United States Code, Section 2250. The maximum penalty he could receive is ten years imprisonment. The case was investigated by agents of the United States Marshals Service and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Greenville Resident Charged with Making Counterfeit Money
Lowman Leon Jamison, II, age 27, of Greenville, South Carolina, was charged in a 3-Count Indictment with making and selling counterfeit U.S. currency, a violation of Title 18, United States Code, Sections 471 and 473. The maximum penalty he could receive is twenty years imprisonment. The case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Dry Prong Man Pleads Guilty to Damaging Archaeological Site in Kisatchie ForestRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Dry Prong man pleaded guilty Monday to illegally excavating a protected archaeological site in the Kisatchie National Forest.
Robert Edgar Miles Jr., 44, of Dry Prong, La., pleaded guilty before U.S. Magistrate Judge James D. Kirk to one count of unauthorized excavation, removal, damage, and alteration of archaeological resources. According to evidence presented at the guilty plea, U.S. Forest Service officers and archaeologists found a protected archaeological site, which was used as a campsite by native peoples from 2000 B.C. to 700 A.D., in the Kisatchie National Forest that had been heavily excavated leaving deep holes throughout the site. During the one-year investigation, officers captured images of Miles digging at the site in 2013 and later recovered multiple artifacts from the defendant.
Miles faces one year in prison, one year of supervised release and a $10,000 fine. Sentencing was set for March 5, 2015.
The U.S. Forest Service conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.Dexter Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Michael
Thompson, 27, of Dexter, Maine, pled guilty today in U.S. District Court in Bangor to robbing a
Rite Aid pharmacy in Guilford, Maine.According to court records, on March 10, 2012, Thompson entered the Rite Aid
pharmacy wearing a bandana, hood, sunglasses and gloves. He jumped over the pharmacy
counter, brandished a large hunting style knife and demanded narcotics. A pharmacist opened
the locker containing narcotics and Thompson filled his back pack with more than $500 worth of
drugs.
The defendant faces up to 20 years in prison and a fine of up to $250,000. He will be
sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Piscataquis County Sheriff’s Office, the Maine
State Police, the Federal Bureau of Investigation and the Somerset County Sheriff’s Office.Department of Justice Launches New Digital ServicesRead the Press Release
Today the U.S. Department of Justice is announcing the launch of two new digital services for the American people: the DOJ News API and the DOJ Law Jobs API. These web APIs (application programming interfaces) provide web developers the ability to build mobile apps and other software applications that can search, sort, and filter thousands of press releases, speeches, blog posts, and law job vacancy announcements published by the Department. Consistent with the President's technology vision described in the Digital Government Strategy and Open Data Policy, this launch transforms collections of website documents into a transparent, interactive dataset.
Today's API launch is made possible by an effort led by the Office of the Chief Information Officer to replace the aging technology infrastructure of Justice.gov with a cloud-based, open source website management platform that will be used by hundreds of Department of Justice component offices across the country. This website upgrade adds search, sort, and filter capabilities to thousands of Supreme Court briefs, legal opinions, Freedom of Information Act (FOIA) court decisions, Congressional testimony, and more. To get started using the APIs or to learn more about developer resources from the Department, see www.justice.gov/developer.
“The APIs are part of an effort to replace aging technology with a cloud-based, open source platform,” said Deputy Assistant Attorney General, Information Resources Management/Chief Information Officer Joseph F. Klimavicz. “Website content that has been migrated to the new platform automatically adjusts to fit any device, including mobile devices and tablets, as well as desktops, making the Department's information assets more accessible than ever before. The open source platform also enables the Department to refresh content rapidly, providing better access to information to the American public.
In developing the website management platform and APIs, the Department followed guidance from the U.S. Digital Service and collaborated with the 18F program at the General Service Administration.
“It’s wonderful to see the Justice Department building out their suite of APIs,” said GSA Senior API Strategist Gray Brooks. “There's fantastic potential in government APIs, for the public as well as for agency operations. Simply put, this is the future of digital government and the efforts that go into justice.gov/developer will result in a more efficient and productive operation.”
Additional details about digital strategy and open government at the U.S. Department of Justice are available at www.justice.gov/digitalstrategy and www.justice.gov/open.
Daniel J. Casamatta Is Appointed Acting U.S. Trustee for Arkansas, Missouri and NebraskaRead the Press Release
WASHINGTON – Daniel J. Casamatta has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Arkansas, Missouri and Nebraska (Region 13), effective on January 1, 2015, the Executive Office for U.S. Trustees announced today. Mr. Casamatta replaces Nancy J. Gargula, the U.S. Trustee for Region 10 (Indiana and Central and Southern Illinois), who concurrently has served as the U.S. Trustee for Region 13 since 2006.
Mr. Casamatta has served as the Assistant U.S. Trustee in the Kansas City, Mo., office of the U.S. Trustee Program (USTP) since 2008. Prior to that appointment, he served as Assistant U.S. Trustee in Grand Rapids, Mich., for 18 years, and for periods of time was also the Acting Assistant U.S. Trustee in Indianapolis and the Acting Chief of the USTP's National Bankruptcy Training Institute located in the National Advocacy Center in Columbia, S.C. Mr. Casamatta currently leads the USTP's Data Integrity Group to ensure the accuracy and completeness of data in the Program's enforcement reporting systems. Before joining the USTP more than 26 years ago, Mr. Casamatta engaged in the private practice of law in Cleveland, specializing in commercial litigation and bankruptcy matters. He received his law degree from Case Western Reserve University Law School in Cleveland, and his undergraduate degree from Cleveland State University.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations. Region 13 is headquartered in Kansas City, Mo., with additional offices in Little Rock, Ark., and Omaha, Neb.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Dallas Woman Who Stole A Registered Nurse’s Identity and Used That Identity to Fraudulently Obtain Employment at Eight Metroplex Hospice Companies Faces up to 15 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas woman who stole the identity of a registered nurse and used that identity to work at several Dallas-Fort Worth (DFW) area hospice companies, appeared in court this morning before U.S. Magistrate Judge David L. Horan, and pleaded guilty to a federal offense stemming from that conduct, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jada Necole Antoine, 33, pleaded guilty to one count of fraud in connection with means of identification. She faces a maximum statutory penalty of 15 years in federal prison, a $250,000 fine and restitution. Antoine has been in custody since her arrest this past summer in Georgia on a related criminal complaint filed in May 2014 in the Northern District of Texas. She is scheduled to be sentenced on March 16, 2015.
According to documents filed in the case, Antoine, who was not licensed as a physician, registered nurse, or other health care provider, stole a registered nurse’s driver’s license and social security card, and used that victim’s driver’s license, social security number, and other means of identification to obtain employment at eight different hospice companies in the DFW area, including Heart to Heart Hospice of Texas, Odyssey Healthcare GP, LLC, Community Hospice of Texas, Elysian Hospice, Hospice Pharmacy Solutions, New Century Hospice, Keystone Custom Care Hospice, and Silverado Senior Living Hospice.
Having fraudulently obtained employment as a registered nurse at Heart to Heart and Odyssey, Antoine had direct responsibility for patient care. She submitted documents to Heart to Heart and Odyssey that falsely indicated that care was provided to patients under her supervision by a registered nurse, namely the registered nurse whose identification she had stolen.
Antoine’s false statements, theft of the victim’s identity, and other fraudulent activity caused Heart to Heart, Odyssey and other hospice agencies to submit false claims for, and obtain reimbursement from, Medicare and Medicaid for hospice services provided to Medicare beneficiaries and Medicaid clients. From approximately January 2009 through April 20, 2012, approximately $2.3 million in hospice claims were submitted to Medicare for services purportedly performed by Antoine while she was impersonating the victim registered nurse.
Antoine received compensation of $5,077 from Heart to Heart and $49,851 from Odyssey.
The FBI, Department of Health and Human Services Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Special Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
- Dallas Man Charged with Selling Unapproved Drugs Online
Criminal Charges Filed Against Postal Service EmployeeRead the Press Release
JOHNSTOWN, Pa. – United States Attorney David J. Hickton announced today, December 9, 2014, that a criminal Information has been filed in federal court in Johnstown charging a United States Postal Service employee with misappropriation of postal funds.
The one-count Information named Douglas J. Kubenko, 33, of Johnstown, Pa.
According to the Information filed with the court, from Sept. 28, 2012, to Nov. 7, 2013, Kubenko used a United States Postal Service credit card 21 times for purchases totaling $946.15 in gas for his private vehicle.
The law provides for a maximum total sentence of one year in prison, a fine of $100,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The United States Postal Service/Office of Inspector General conducted the investigation leading to the filing of charges in this case.
A criminal Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbus Man Sentenced to 13 years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Bryan Groene, 33, of Columbus, Nebraska, was sentenced on December 5, 2014, to 13 years in prison by United States District Judge John M. Gerrard. Groene had previously pled guilty after an incident on January 19, 2014, when a police officer encountered him outside a Columbus residence. The officer knew that Groene had an active warrant for his arrest. Upon contact, Groene was informed of the arrest warrant at which time he ran from the officer. The officer caught Groene after a short chase, but not before Groene discarded a plastic bag containing 6.41 grams of 88% pure methamphetamine. Thereafter, investigators located additional witnesses who identified Groene as a multiple ounce methamphetamine distributor in the Columbus area dating back to September of 2013. After serving his sentence, Groene will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Columbus Police Department and the Nebraska State Patrol.
Cherokee County Men Sentenced in Armed Robbery Crime SpreeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two Jacksonville, Texas men have been sentenced in connection with a violent crime spree targeting area businesses in the Eastern District of Texas announced U.S. Attorney John M. Bales today. The sentences were handed down today by U.S. District Judge Michael Schneider.
Jonathan Roshard Brown, 22, pleaded guilty on May 20, 2014, to interfering with interstate commerce by robbery (Hobbs Act conspiracy) and possessing a firearm during a crime of violence and was sentenced to 180 months in federal prison for the Hobbs Act conviction and 80 months for the firearms conviction.
Michael Dangelio Johnson, 25, pleaded guilty on Feb. 12, 2014 to interfering with interstate commerce by robbery (Hobbs Act conspiracy) and was sentenced to 100 months in federal prison today.
According to information presented in court, Brown, Johnson and two co-defendants conspired to commit robbery, which unlawfully obstructed, delayed and affected commerce in violation of federal law. Specifically, they committed four armed robberies in Jacksonville during a crime spree which began on Oct. 2, 2011 when they stole $9,465 from the Wal-Mart Supercenter in Jacksonville. On Nov. 2, 1012, they robbed the Razorback Grocery on Hwy 69 in Jacksonville. Brown brandished a handgun and demanded money from the owner. Razorback Grocery suffered a loss of approximately $16,000 in cash and $6,900 in Texas lottery tickets. On Nov. 16, 2012, Brown, Johnson and another defendant again robbed the owner of the Razorback Grocery while he was waiting in the commercial drive-thru line at the Austin Bank on West Commerce Street in Jacksonville. During the robbery Brown fired a handgun, striking the victim. The bullet passed through the victim’s hand, throat and shoulder. The victim survived after being airlifted to a Tyler hospital. The defendants obtained an undetermined amount of cash from the victim’s vehicle. The armed robbery resulted in the closure of Razorback Grocery and the temporary closure of Austin Bank. On Nov. 23, 2012, Brown and another person attempted to rob the owner of the Fast Fuel on Hwy 69 in Jacksonville. The owner was able to strike Brown and flee.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the FBI East Texas Gang Initiative and the Jacksonville Police Department with assistance from the Cherokee County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Richard Moore.California Man Pleads Guilty to Multi-State Bank Fraud SchemeRead the Press Release
Defendant and Co-Conspirators Used Counterfeit Debit Cards
To Defraud a Financial Institution of $30,505.52ALBUQUERQUE – Kevin Cohn, 31, of Rialto, Calif., pleaded guilty this morning to conspiracy to commit bank fraud under a plea agreement with the U.S. Attorney’s Office. Cohn is the third member of the conspiracy to enter a guilty plea in the case.
Cohn’s co-defendants, Denny Smith, 50, of Hesperia, Calif., and Michael Anthony Bjornethun, 40, of Riverside, Calif., were charged with bank fraud offenses in a criminal complaint filed on Jan. 13, 2014. The two subsequently were indicted on Jan. 22, 2014, and charged with conspiracy to commit bank fraud and five counts of bank fraud.
Cohn was added as a defendant to the case in a 12-count superseding indictment filed on March 26, 2014. Count 1 of the indictment charged Smith and Cohn with conspiracy to commit bank fraud and Count 2 charged Smith and Bjornethun with the same offense. Counts 3 through 12 charged the three men with individual bank fraud offenses. According to the superseding indictment and other court filings, Cohn, Smith and Bjornethun perpetuated a scheme in Jan. 2014 to defraud a bank by using counterfeit debit cards to purchase items from U.S. Post Offices in New Mexico, Arizona and Texas.
This morning, Cohn pled guilty to Count 1 of the superseding indictment charging him with conspiracy to commit bank fraud. In entering his guilty plea, Cohn admitted that in Jan. 2014, he traveled with Smith from California to Arizona, New Mexico and Texas, where they visited various post offices and purchased stamps, gift cards and other items with counterfeit debit cards. Cohn admitted that the purpose of the trip was to commit fraud. In his plea agreement, Cohn admitted that he and his co-conspirators perpetuated fraud in the amount of $30,505.52 during the life of their bank fraud scheme.Cohn has been in federal custody since his arrest in Sept. 2014, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Cohn faces a statutory maximum penalty of 30 years in prison. Cohn, together with his co-defendants, will be required to pay restitution in the amount of $30,505.52 to the U.S. Postal Service as part of his sentence.
Cohn’s co-defendants previously entered guilty pleas and have been sentenced. Smith entered a guilty plea on June 24, 2014, to Counts 1 and 2 of the superseding indictment, and was sentenced on Aug. 25, 2014, to 27 months in federal prison followed by three years of supervised release. Bjornethun plead guilty to the original indictment without the benefit of a plea agreement on March 19, 2014. On June 30, 2014, Bjornethun was sentenced to 172 days of time served followed by two years of supervised release.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistants U.S. Attorney Samuel A. Hurtado and C. Paige Messec.