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26 January 2015
Sacramento Man Sentenced to over 7 Years in Prison for A Mortgage Fraud Scheme in Chico and SacramentoRead the Press Release
SACRAMENTO, Calif. — Leonard E. Williams, 52, of Sacramento, was sentenced today to over seven years and three months in prison for conspiracy to commit mail and wire fraud and two counts of money laundering, in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. Williams was found guilty on July 24, 2014, by a federal jury after a six–day trial.
At sentencing today, United States District Judge William B. Shubb stated that one of the factors he used in imposing the sentence was Williams' outburst in front of the jury during trial. On the last day of the trial, Williams began shouting at the jury about his case. Judge Shubb asked him to stop talking until the jury could be dismissed. Williams, nevertheless, continued yelling at the jury as they filed out. Today, Judge Shubb characterized the outburst as "unacceptable" and said that Williams had intended to cause a mistrial and mislead the jury about his defense.
According to evidence presented at trial, from late 2006 into 2008, Williams conspired with others to carry out a mortgage fraud scheme in the Chico and Sacramento areas using his companies Diamond Hill Financial and Bay Area Real Estate Holdings. The scheme resulted in the issuance of more than $2 million in home loans, with most of the buyers ultimately defaulting.
To carry out the scheme, Williams and his partner Joshua Clymer recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Williams and others assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers' employment, income, assets, and intent to occupy the homes as a primary residence. In most cases, at Williams' suggestion and encouragement, the loan applications falsely stated that the buyers worked at Diamond Hill Financial, and Williams himself maintained the charade by confirming this false information when lenders called to verify it.
The loan applications also listed false assets and were accompanied by various forged documents, which increased the amount of the loans to the buyers, which in turn increased the profits of the fraud to Williams, Clymer, and others. The profit to Williams and Clymer varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.
Prior to trial, Clymer pleaded guilty to conspiracy to commit mail and wire fraud and is scheduled to be sentenced on February 9, 2015.
This case is the product of an investigation by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; and the Butte County District Attorney's Office's Major Crimes Unit. Williams is the last of 14 defendants who have been convicted of mortgage fraud offenses in connection with this and related cases. Others who already been convicted and sentenced include William E. Baker, Shane Burreson, Christopher M. Chiavola, Carlos Chamorro, Eric Clawson, Niche Fortune, Garret Gililland, Kesha Haynie, Remy Heng, Nicole Magpusao, Brandon Resendez, and Anthony Symmes. Twelve of the defendants pleaded guilty. Juries have convicted the two defendants who went to trial, Williams and Haynie. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath prosecuted the case.Sacramento Defense Contractor Agrees to Pay $2 Million to Settle Allegations of Inflating CostsRead the Press Release
SACRAMENTO, Calif. — Composite Engineering Inc., a Sacramento-based subsidiary of Kratos Defense & Security Solutions that manufactures remote-controlled subscale aircraft for the U.S. military, has agreed to pay the United States $2 million to resolve allegations that it violated the False Claims Act by submitting inflated costs in connection with a 2007 contract, United States Attorney Benjamin Wagner announced today.
The contract at issue was a firm fixed-price contract modification for the procurement of spare parts to meet the requirements of the Air Force’s Subscale Aerial Target (AFSAT) program. The United States alleges that, in submitting its contract proposal, CEI knowingly or recklessly included significantly overstated materials costs and labor hours, resulting in a windfall to CEI. The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. By basing its contract price with the government on overstated materials and labor costs, CEI caused the United States to pay artificially inflated prices.
“In this era of shrinking budgets, it is particularly important to safeguard public coffers against the unnecessary expenditure of taxpayer funds,” said U.S. Attorney Wagner. “Ensuring the integrity of federal contracting programs is one of the objectives of this office’s Affirmative Civil Enforcement Unit, and results like this one help accomplish that objective.”
Deputy Inspector General for Investigations James B. Burch of the Department of Defense, Defense Criminal Investigative Service (DCIS) said: “Fraud directly impacts our armed services’ resources and capabilities. DCIS works closely with our federal investigative partners to identify and bring to justice those seeking to steal from the American taxpayers and harm our armed services. The results of this case will ensure troops can finish their jobs without the burden of shortages created by such opportunists.”
The settlement is the product of an investigation by DCIS, the Defense Contract Audit Agency, and the Air Force Office of Special Investigations. Assistant U.S. Attorney Colleen M. Kennedy prosecuted the case on behalf of the United States. The claims settled by this agreement are allegations only, and CEI denies liability.
Rochester Man Charged with Assaulting Mail Carrier, Brandishing FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Orlando Justice, 27, of Rochester, NY, with assaulting a U.S. Postal Service employee with a dangerous weapon, and brandishing a firearm to commit the assault. The charges carry a minimum sentence of seven years in prison, a maximum of life, and a fine of $250,000.Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, the defendant assaulted a Postal Service mail carrier while he was engaged in his official duties delivering mail in Rochester. During the assault, Justice brandished a firearm.
The indictment is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Real Estate Businessman Convicted of Tax Fraud by Concealing Income Using Nominee Entities and AliasesRead the Press Release
A federal jury sitting in Providence, Rhode Island, convicted a Cranston, Rhode Island, man of one count of corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), one count of tax evasion and two counts of aiding and assisting in the preparation and filing of false corporate tax returns, the Justice Department and the IRS announced.
John Fall was remanded into custody after the jury verdict. Fall faces a statutory maximum sentence of 14 years in prison and a $1 million fine at his sentencing on April 28 before U.S. District Judge John J. McConnell Jr. for the District of Rhode Island.
According to the evidence presented at trial, Fall was a real estate consultant who bought, sold and brokered real estate. Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., and Broad Street Investments. Between 1999 and 2010, Fall used numerous nominee entities and business names to conceal his business and financial transactions. Fall also used multiple bank accounts, including commingled or “warehouse” bank accounts, in at least six states to conceal his financial transactions, as well as certain financial transactions of Comfort Dental and Broad Street Investments. To further disguise business and financial transactions, Fall used fake names and aliases to conceal his ownership and control over his nominee entities.
The evidence at trial proved that Fall filed false federal income tax returns for 1998 and 1999, and failed to file any tax returns for the years 2000 through 2010. The IRS audited Fall for 1998 through 2000, assessing him taxes totaling approximately $72,000.
The evidence at trial further established that Fall caused the filing of false tax returns on behalf of Comfort Dental for the years 2005 through 2007. Fall caused his wife’s businesses to make payments to his various entities which were falsely recorded on the corporate tax returns as deductible business expenses. When Comfort Dental and Fall’s wife were audited civilly by the IRS in late 2008, Fall attempted to obstruct the audit by encouraging his wife’s accountant not to provide the IRS with information requested through an IRS summons, and instead provided false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities. Fall also attempted to obstruct his wife’s compliance with an IRS summons.
This case was investigated by special agents with the IRS – Criminal Investigation. The case is being prosecuted by Assistant Chief John Kane and Trial Attorney Jeffrey Bender with the Justice Department’s Tax Division.
Raleigh Man Sentenced to 51 Months in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss – Octavious Burkes-Palmer, 37, of Raleigh, Mississippi, was sentenced by U.S. District Judge Daniel P. Jordan III to 51 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, U.S. Attorney Gregory K. Davis announced today.
Burkes-Palmer was arrested by the Scott County Sheriff’s Office on November 13, 2013 after they responded to a 911 call concerning an attempted robbery. He was later indicted by a federal grand jury for possession of a firearm by a convicted felon. He pled guilty to the charge on January 26, 2015.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jerry L. Rushing
Previously Convicted Fraudster Faces Consecutive Sentence for Failure to Report to PrisonRead the Press Release
Follow @SDILNewsKevin D. Dowell, 38, of St. Louis, Missouri, pled guilty to failure to surrender for service of a sentence the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dowell faces a sentence of up to ten years in prison, a $250,000 fine and up to three years supervised release. Dowell was previously convicted of wire fraud in a scheme to defraud and embezzle from the FKG Oil Company and, in June of 2014, was sentenced to a year and a day in prison. On August 20, 2014, Dowell failed to surrender to the prison as ordered and was apprehended about a week later. If convicted of the new offense, the new sentence will have to run consecutive to the previous sentence of imprisonment. Sentencing has been scheduled for May 18, 2015.
The investigation was conducted by the United States Marshal's Service. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Phoenix Tax Preparer Sentenced to 12 Months Imprisonment for Preparing Fraudulent Tax ReturnsRead the Press Release
PHOENIX – On Jan. 23, 2015, Margaret Nicole Hall, 40, of Phoenix, Ariz., was sentenced by U.S. District Judge David G. Campbell to 12 months and one day of imprisonment. Hall was also ordered to pay $92,937 in restitution to the Internal Revenue Service. On Oct. 20, 2014, Hall pleaded guilty to one count of obstructing or impeding the administration of internal revenue laws and one count of aiding or assisting preparation or presentment of a fraudulent or false return.
According to her plea agreement, Hall owned and operated a tax return preparation service known as Taxes R Us which was located in Phoenix, Ariz. During an Internal Revenue Service civil audit proceeding, Hall falsely represented that this client received income from self-employment and that the client received tip income. Hall also knowingly provided fabricated lease documents and fabricated rental receipts to the Internal Revenue Service as purported substantiation for items claimed in the false tax returns that Hall had prepared for her client.
Additionally, Hall prepared a Federal income tax return that fraudulently stated the taxpayer's purported wages, purported business income, and tips.
The investigation in this case was conducted by the Internal Revenue Service Criminal Investigation. The prosecution was handled by Frank Galati, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00418-PHX-DGC
RELEASE NUMBER: 2015-007_Hall
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Owner of Miami Home Health Company Sentenced to 106 Months in Prison for $30 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of a Miami home health care agency was sentenced today to 106 months in prison for his participation in a $30 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ramon Regueira, 66, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud on Nov. 13, 2014. In addition to the prison sentence, U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida ordered Regueira to pay $21 million in restitution, both jointly and severally with his co-conspirator.
According to his plea agreement, Regueira was an owner of Nation’s Best Care Home Health Corp. (Nation’s Best), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Regueira admitted that he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided.
Specifically, Regueira admitted that he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services. Regueira and his co-conspirators then used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care services.
From January 2007 through January 2011, Nation’s Best submitted approximately $30 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $21 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer and Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Orlando Man Sentenced to 17 Years for Armed RobberiesRead the Press Release
Orlando, FL – Senior United States District Judge John Antoon, II has sentenced Joe E. Clinton, Jr. (23, Orlando) to 17 years in federal prison for aiding and abetting the attempted robbery of a Walgreen’s store, the robbery of a CVS store, and using and carrying a firearm during those violent crimes. Clinton pleaded guilty on March 24, 2014.
According to court documents and evidence presented during the trial of Clinton’s co-conspirator, Jacques Maddox, on the night of September 2, 2013, Clinton and Maddox went to the Walgreen’s store on South Kirkman Road near Universal Studios. After surveilling the store for hours, they walked into the store for the final time around 11:00 p.m. Maddox acted as a lookout near the center of the store, while Clinton forced the store manager inside an office at gunpoint. Clinton demanded that the manager open the store’s safe, threatening to shoot him if he failed to do so. When the manager refused to comply with Clinton’s demands, Clinton pistol whipped him, striking him several times in the head and shoulders. Clinton then ran out of the office, met up with Maddox in the middle of the store, and pulled his gun on other employees and store customers as he and Maddox fled the scene.
On the night of September 10, 2013, Clinton walked into the CVS store located at 1201 East Colonial Drive, in Orlando. He took a beverage from the cooler and brought it to the front counter. As the clerk tried to ring up the purchase, Clinton pulled out his handgun, pointed it at the clerk, and demanded that she open the register. The clerk gave Clinton all of the cash from the register; he then fled from the store.
Clinton admitted to committing a series of additional armed commercial robberies in Central Florida before being captured by police in Dothan, Alabama, on October 1, 2013.On July 9, 2014, a federal jury found Maddox guilty of aiding and abetting the attempted Walgreen’s robbery. He was subsequently sentenced to six years and six months in federal prison.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Ocala Man Sentenced to Prison for Methamphetamine Lab in Ocala National ForestRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges has sentenced Charles Michael Curry, Jr. (50, Ocala) to 30 months in federal prison for possession with intent to distribute methamphetamine. He pleaded guilty to the charge in November 2014.
According to court documents, on August 9, 2014, United States Forest Service officers responded to the Ocala National Forest based on complaints that individuals had been illegally manufacturing methamphetamine there. Upon arrival, officers found a campsite occupied by Curry and two other individuals. Curry initially fled from the officers, but was quickly apprehended. Subsequently, he directed the officers to his makeshift methamphetamine laboratory, where they found approximately 155 grams of a mixture and substance containing methamphetamine. Curry ultimately admitted that he had been manufacturing the methamphetamine with the intent to distribute it. Officers also recovered drug paraphernalia in the immediate area.
This case was investigated by the United States Forest Service and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Oakland Man Pleads Guilty to Counterfeit Media Scheme in FresnoRead the Press Release
FRESNO, Calif. — Emilio Perez-Solis, 39, of Oakland, pleaded guilty today to conspiring to commit criminal copyright infringement and traffic in counterfeit labels, documentation and packaging, United States Attorney Benjamin B. Wagner announced.
According to court documents, Perez-Solis used a building in a rural area of Fresno as a distribution point for counterfeit CDs and counterfeit DVDs. From the building, Perez-Solis sold counterfeit CDs and DVDs, including movies that were only in theatrical release and not yet available on DVD. On February 21, 2014, the building was searched and found to contain approximately 70,000 counterfeit music CDs and movie DVDs.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Fresno County Sheriff’s Office. Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty are prosecuting the case.
Perez-Solis is currently in custody, and is scheduled to be sentenced by Judge Lawrence J. O'Neill on April 20, 2015. Perez-Solis faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Notice of HearingRead the Press Release
September 29, 2014Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- An Initial Appearance has been scheduled in connection with United States v. Dorothy Barnett, a case involving International Parental Kidnapping and False Statements in a Passport Application. United States Magistrate Judge Bristow Marchant will preside over the proceedings as indicated below.
September 29, 2014, 1:30 p.m. 83 Meeting St. Charleston, SC 29401 Courtroom TBDNinth Circuit Affirms Former Nevada Lobbyist’s Conviction for Making Unlawful Campaign ContributionsRead the Press Release
The U.S. Court of Appeals for the Ninth Circuit today affirmed the convictions of a former Nevada lobbyist for making excessive campaign contributions and contributions in the name of another person, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
“We're pleased that today's decision confirms that the cornerstones of our campaign finance laws - contribution limits and transparency - are not subject to creative misinterpretations of those determined to break the law,” said Assistant Attorney General Caldwell.
“Harvey Whittemore knew the law, he knew how to raise money the right way, he knew right from wrong, and he knew how he could violate the law and avoid detection,” said U.S. Attorney Bogden. “He made a conscious and willful choice to violate federal elections laws in order to increase his own power and influence at the expense of the voting public and the election process.”
F. Harvey Whittemore, 62, of Reno, Nevada, a prominent Nevada lawyer, former lobbyist and land developer, was convicted by a jury in the District of Nevada in May 2013 of making excessive campaign contributions, making contributions in others’ names, and causing a materially false statement to be made to the Federal Election Commission (FEC). He was sentenced on Sept. 30, 2013, to two years in prison and a $100,000 fine.
According to evidence presented at trial, Whittemore was aware of the strict limits on individual federal campaign contributions. In an effort to circumvent those limits, he devised a scheme to unlawfully funnel more than $130,000 of his own money through approximately 29 family members, employees and their spouses to the campaign committee for a U.S. senator. This scheme allowed Whittemore to make an individual campaign donation in excess of the federal limits. Whittemore concealed the scheme from the FEC, the senator, and the senator’s campaign committee.
The case was investigated by the FBI and prosecuted by Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada. Appellate Chief and Assistant U.S. Attorney Elizabeth Olson White of the District of Nevada argued the appeal.
Ninth Circuit Affirms Former Lobbyist's Conviction for Making Unlawful Campaign ContributionsRead the Press Release
WASHINGTON - The U.S. Court of Appeals for the Ninth Circuit today affirmed the convictions of a former Nevada lobbyist for making excessive campaign contributions and contributions in the name of another person, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
“We're pleased that today's decision confirms that the cornerstones of our campaign finance laws - contribution limits and transparency - are not subject to creative misinterpretations of those determined to break the law,” said Assistant Attorney General Caldwell.
“Harvey Whittemore knew the law, he knew how to raise money the right way, he knew right from wrong, and he knew how he could violate the law and avoid detection,” said U.S. Attorney Bogden. “He made a conscious and willful choice to violate federal elections laws in order to increase his own power and influence at the expense of the voting public and the election process.”
F. Harvey Whittemore, 62, of Reno, Nevada, a prominent Nevada lawyer, former lobbyist and land developer, was convicted by a jury in the District of Nevada in May 2013 of making excessive campaign contributions, making contributions in others’ names, and causing a materially false statement to be made to the Federal Election Commission (FEC). He was sentenced on Sept. 30, 2013, to two years in prison and a $100,000 fine.
According to evidence presented at trial, Whittemore was aware of the strict limits on individual federal campaign contributions. In an effort to circumvent those limits, he devised a scheme to unlawfully funnel more than $130,000 of his own money through approximately 29 family members, employees and their spouses to the campaign committee for a U.S. senator. This scheme allowed Whittemore to make an individual campaign donation in excess of the federal limits. Whittemore concealed the scheme from the FEC, the senator, and the senator’s campaign committee.
The case was investigated by the FBI and prosecuted by Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada. Appellate Chief and Assistant U.S. Attorney Elizabeth Olson White of the District of Nevada argued the appeal.Nifty Fifty's Accountant Pleads Guilty to Tax Fraud SchemeRead the Press Release
William J. Frio, 58, of Springfield Township, pleaded guilty today to his role in a tax evasion scheme involving the Nifty Fifty’s restaurant chain. Frio pleaded guilty to conspiracy to commit tax evasion. Frio is the sixth defendant to plead guilty in the long-running scheme to avoid paying millions of dollars in personal and employment taxes, by failing to properly account for more than $15 million in gross receipts, thereby evading federal taxes of over $2.28 million. Frio also pleaded guilty to filing his own false tax returns, aggravated structuring of financial transactions, and loan fraud. U.S. District Court Judge Mary McLaughlin scheduled a sentencing hearing for April 29, 2015.
Frio, an accountant and income tax preparer who provided services to the Nifty Fifty’s organization since 1986, conspired with the owners and principals of Nifty Fifty’s. The defendants skimmed cash to pay themselves, their employees, and people and businesses who supplied goods and services to the Nifty Fifty’s restaurants, providing those persons and businesses with the opportunity to evade the payment of their own taxes.
In 2008, Frio submitted a false loan application to Sovereign Bank for a $417,000 mortgage for his personal residence. Frio submitted to the bank bogus federal income tax returns for 2006 and 2007, and bogus Forms W-2, falsely representing he had earned substantial income from Tanfasia, Inc. The 2006 and 2007 tax returns that he had actually submitted to the IRS showed far less income than the false returns supplied to Sovereign Bank, and Frio had not been employed by Tanfasia, Inc. in 2006 or 2007.
Frio also used his position as the Nifty Fifty’s accountant to embezzle over $4 million of funds that belonged to the organization. As part of that scheme, between 2006 and 2009, Frio knowingly structured cash transactions totaling over $2.6 million out of Nifty Fifty’s accounts at Sovereign Bank.
Frio faces a maximum possible sentence of 57 years in prison, full restitution to the IRS, a fine of up to $2.75 million, and criminal forfeiture.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Nancy E. Potts.
New York Man Involved in Danbury Home Invasion Drug Robberies Sentenced to 7 Years in PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on Friday, January 23, SCOTT MYRIE, also known as “Venom,” 27, of Bedford Hills, N.Y., was sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by three years of supervised release, for his participation in two Danbury-area violent home invasion robberies of illegal drugs and drug trafficking proceeds.
According to court documents and statements made in court, in January 2013 the Danbury Police Department began investigating a narcotics trafficking network that maintained a series of drug distribution locations, known as trap houses, in Danbury, out of which members of the organization sold crack and heroin. The organization also rented hotel rooms where they packaged and distributed narcotics. During the investigation, law enforcement learned that the individuals who headed the drug trafficking ring had organized and committed armed home invasion robberies of marijuana dealers.
MYRIE participated in home invasion robberies on January 30 and February 18, 2013. During both of these robberies, and a third robbery in which MYRIE did not participate, several men wearing masks and armed with firearms forced entry into the residence of a known marijuana dealer. Once inside, the perpetrators attempted to or did steal marijuana and cash. In each instance, the perpetrators pistol whipped a victim and threatened to kill others within the home.
MYRIE was armed with a .32 caliber handgun during both of the robberies in which he participated, and children were present in both homes. During the robbery on February 18, MYRIE struck a male victim in the head with the handgun repeatedly before dropping the gun during a struggle. Investigators subsequently recovered the gun and found that it was fully loaded.
MYRIE has been detained since his arrest on October 16, 2013. On August 22, 2014, he pleaded guilty to one count of interference with commerce by robbery and one count of attempted interference with commerce by robbery.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Danbury Police Department. The DEA Task Force includes personnel from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New York Man Convicted of Sex Trafficking of MinorsRead the Press Release
Follow @USAO_CTDeirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a jury in Hartford has found EDWARD THOMAS, also known as “Fire,” 40, of New York, guilty of the sex trafficking of minors. The trial before U.S. District Judge Robert N. Chatigny began on January 15.
According to the evidence at trial, in September 2012, THOMAS, a New York-based pimp, answered an Internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon. Over the next month, THOMAS recruited and enticed MV1 to travel to New York to work for him. MV1 eventually agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by THOMAS. THOMAS discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.
After MV1 and MV2 arrived in New York, THOMAS and the two minor girls went immediately to a hotel in Milford, Connecticut, where they met Kayla Walters, THOMAS’ co-defendant, and posted prostitution advertisements. THOMAS knew that MV1 and MV2 were under the age of 18. In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of THOMAS. While MV2 escaped from a hotel room window after several hours, MV1 continued to work for THOMAS for about a month, turning over all of the money she earned in prostitution to THOMAS. When MV1 attempted to leave, THOMAS forcibly restrained her. Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012. Law enforcement seized nearly $4,000 in cash from THOMAS during the first recovery, along with several computers and cellular phones.
THOMAS recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast. After THOMAS sent Walters and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.
“This defendant preyed on the vulnerabilities of two girls whom he lured 3000 miles away from their homes,” stated U.S. Attorney Daly. “The U.S. Attorney Office is committed to prosecuting individuals who manipulate minors into committing sexual acts – often under the threat of violence – and profit handsomely from this illegal and reprehensible conduct. I thank the FBI for their vigilance in investigating these crimes, which have resulted not only in criminal convictions, but in the rescue of numerous girls and young women from terrible environments.”
“Human trafficking, especially for the purpose of underage prostitution, is a heinous crime,” stated FBI Special Agent in Charge Ferrick. “The FBI will continue to work with our law enforcement partners to aggressively pursue these criminals and hold them accountable.”
THOMAS was convicted of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor. Judge Chatigny scheduled sentenced for April 17, 2015, at which time THOMAS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
On November 10, 2014, Walters pleaded guilty to one count of conspiracy to commit sex trafficking of a minor. She awaits sentencing.
THOMAS and Walters have been detained since their arrests on February 28, 2014.
THOMAS’ criminal history includes a 2007 conviction in New Jersey for promoting prostitution with a child under the age of 18.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments have assisted the investigation.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722 [email protected]New York Man Admits Participating in Armed Robberies of Electronic Stores in New JerseyRead the Press Release
TRENTON, N.J. – A New York man today admitted participating in armed robberies of electronics stores in New Jersey, including armed robberies in Linden, Paramus, and Woodbridge, U.S. Attorney Paul J. Fishman announced.
Eric Williams, 34, of Brooklyn, New York, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information that charged him with one count of conspiracy to commit Hobbs Act robberies.
Williams was arrested on Feb. 14, 2013, and charged in a superseding indictment — along with Carl Williams, 31, and Unique Randolph, 28, both of Brooklyn – in connection with several armed robberies of electronic stores in New Jersey. Eric Williams has been in custody since his arrest.
According to documents filed in this case and statements made in court: On Sept. 20, 2012, Carl Williams and Leonard Arrington, 28, of Roslyn Heights, New York, walked into a T-Mobile store in Linden brandishing a firearm, while Eric Williams and other conspirators served as lookouts and get-away drivers. Carl Williams and Arrington then tied up the employees in the back of the store, stole 50 to 60 cell phones and fled in a Land Rover. Eric Williams and other conspirators then delivered the stolen phones to a cell phone store in Brooklyn.
On Oct. 2, 2012, Arrington entered a T-Mobile store in Woodbridge, brandishing a firearm, along with another man. After locking the front door, the men took the employees to the back of the store and tied them up, then stole approximately 40 cell phones. One of the robbers then called the getaway driver, who drove them away in a Land Rover. Eric Williams and others delivered the stolen phones to the same Brooklyn store.
Eric Williams participated in the planning of a subsequent robbery of an electronics store in Paramus, which took place on Jan. 16, 2013. Randolph and another individual entered an electronics store and, after forcing employees and a customer into the back of the store, Randolph tied them up using zip-ties, while his conspirator held them at gunpoint. As Randolph and his conspirator were looting the store of cell phones, a UPS employee walked into the backroom. Randolph forced him onto the ground and used zip-ties to tie him up. Randolph and his conspirator then fled, along with Carl Williams who was waiting outside as a lookout.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Carl Williams, Arrington and Randolph have previously pleaded guilty.U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked the Linden, Paramus, and Woodbridge police departments, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.15-033
Defense counsel: Carl Williams: Mark A. Berman Esq., River Edge, N.J.
Eric Williams: Michael A. Armstrong Esq., Willingboro, N.J.
Unique Randolph: Damian P. Conforti Esq., Newark
Leonard Arrington: Dennis S. Cleary Esq., NewarkNaples Man Indicted for Million Dollar Internet Fraud SchemeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jeffrey Ihm (47, Naples) with multiple counts of wire fraud and aggravated identity theft. Each wire fraud count carries a maximum penalty of 20 years in federal prison. In addition, he faces a maximum penalty of two years’ imprisonment for each aggravated identity theft offense, to be served consecutively to any wire fraud conviction. The indictment also notifies Ihm that the United States is seeking a money judgment against him in the amount of $1,064,664.74, and intends to forfeit the house located at 3343 Pacific Drive, Naples, Florida, which are both alleged to be traceable to proceeds of the fraud.
According to the indictment, Ihm assumed the identities of and posed as three different Roper Industries, Inc. executives. He then generated false and fraudulent emails and other documents in the names of Roper Industries, Inc. and Kynetic Technologies, LLC to defraud Wells Fargo Bank, causing the bank to wire him $1,064,664.74 to which he was not entitled.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service and the Federal Bureau of Investigation, with assistance from the Economic Crimes Unit of the Collier County Sherriff’s Office. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Dale R. Campion.
Montana Welcomes Bryan Garner for Tribal Court TrainingRead the Press Release
BILLINGS -- America’s foremost authority of training in legal writing, editing, and drafting, Bryan Garner, will be in Billings, Montana on January 26, 2015, for a legal writing workshop for tribal court judges and practitioners. The event is sponsored by the Bureau of Indian Affairs Tribal Court Services and hosted by the District of Montana’s United States Attorney’s Office. The Montana Department of Justice Office of Consumer Protection and Victim Services is a cosponsor of the event.
Garner is editor in chief of Black’s Law Dictionary and the author of many leading works on legal style, including A Dictionary of Modern Legal Usage, The Elements of Legal Style, The Redbook: A Manual on Legal Style, The Winning Brief, and The Winning Oral Argument. His latest books are Making Your Case: The Art of Persuading Judges, co-written with Justice Antonin Scalia, and Garner on Language and Writing, an anthology published by the American Bar Association.
"The United States Attorney=s Office is pleased to welcome Mr. Bryan Garner to Montana for this training,” said Montana U.S. Attorney Mike Cotter. “We are excited to have a tribal court training that features the highest caliber of trainers. In addition to welcoming tribal court practitioners from Montana, we welcome our out of state tribal court practitioners to Billings for this unique opportunity to advance writing skills.”
"As part of the Office of Indian Affairs' commitment to provide exceptional tribal court training, the BIA is excited to collaborate with the United States Attorney's Office for the District of Montana and the Montana Attorney General's Office," said Assistant Secretary for Indian Affairs Kevin K. Washburn. "This collaboration insures that tribal courts will receive first class training because Indian people deserve first rate justice."
Fifty applicants, representing five states and 18 different tribes and tribally connected entities, have been accepted for this event. Bureau of Indian Affairs intends to offer two more national trainings featuring Garner in other venues, in the future.
Mexican National Sentenced to 15 Years for Participating in a Brutal Family Run Sex Trafficking OrganizationRead the Press Release
The Department of Justice today announced a sentencing and guilty plea for two members of a family run sex trafficking organization based in southern Florida. Rafael Alberto Cadena-Sosa was sentenced by U.S. District Court Judge Joes E. Martinez to serve 15 years in prison and Carmen Cadena pleaded guilty before U.S. District Court Judge Jose Martinez for participating in a brutal family run sex trafficking organization.
Rafael Alberto Cadena-Sosa
Cadena-Sosa, 46, a Mexican national, was sentenced to serve 15 years in prison for conspiring and holding a person in a condition of involuntary servitude. Judge Martinez also ordered Cadena-Sosa to pay $1,261,563 in restitution to sixteen different victims.
On Oct. 9, 2014, Cadena-Sosa pleaded guilty to conspiracy and to holding a person in a condition of involuntary servitude. As part of his plea, Cadena-Sosa admitted that he, along with other family members and associates, approached women and girls, some as young as fourteen years old, in Veracruz, Mexico, and lured them into coming to the United States using false promises of legitimate jobs. After illegally smuggling women and girls into the United States, Cadena-Sosa and other family members imposed a smuggling debt and used brutal physical force and violence, sexual assaults, and threats of death and bodily harm to the victims and their families to compel the victims to engage in prostitution 12 hours a day, six days a week and turn over the proceeds to the defendants to pay down the smuggling debts the defendants imposed. Cadena-Sosa and other family members would also search for victims who had run away from a brothel and subject them to beatings and rapes upon capture.
Carmen Cadena
Cadena, 48, a Mexican national, pleaded guilty to one count of conspiracy for conspiring with other members of the Cadena organization to unlawfully encourage and bring undocumented victims into the U.S.; unlawfully transport victims within the U.S.; unlawfully harbor victims within the U.S.; unlawfully coerce and transport victims, including victims as young as 14-years-old, into the U.S. for purposes of illegal sexual activity; and unlawfully use extortionate means to collect extensions of credit made to the victims.
Cadena faces a maximum sentence of five years in prison and a fine of $500,000. Sentencing is scheduled to occur on May 18, 2015. According to the terms of the plea agreement, the parties will jointly recommend the maximum sentence of five years in prison and $1,261,563 in restitution to 16 victims.
Sixteen defendants were charged in a superseding indictment filed in 1998. Mexican authorities arrested Rafael Alberto Cadena-Sosa and Carmen Cadena and extradited them to the United States in November 2013 and December 2014, respectively. Four other members of the Cadena sex trafficking organization have been convicted, including Cadena-Sosa’s uncle, Rogerio Cadena, who pleaded guilty in 1999 and was sentenced to 15 years; Cadena-Sosa’s brother, Abel Cadena-Sosa, who was convicted in Mexico and sentenced to 24 years, and two other brothers, Hugo and Juan Luis Cadena-Sosa—Carmen Cadena’s husband—, who pleaded guilty in 2002 and 2008, and were sentenced to five years and 15 years respectively. Six other defendants previously pleaded guilty in federal court in connection with the scheme, and one was convicted in state court for a murder outside a Cadena-run brothel.
Since 2009, the Departments of Justice and Homeland Security as well as law enforcement agencies in Mexico, have worked to develop high-impact prosecutions to dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children held under the trafficking networks’ control. These efforts have resulted in numerous successful prosecutions, including U.S. federal prosecutions of over 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009.
“No human being should have to endure the violence and brutality these young women and girls suffered at the hands of the Cadena organization,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These violations of the victims’ individual rights and freedom are intolerable and the Department of Justice will continue in its commitment to bringing human traffickers to justice and restore the rights and dignity of the courageous survivors of this crime.”
“Rafael Cadena-Sosa and Carmen Cadena preyed on vulnerable girls and young women and lured them to the United States with the promise of a better life,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “Instead, Cadena-Sosa and his family and associates robbed these victims of their freedom and dignity, brutally beat them and subjected them to modern-day slavery. The dismantling of the Cadena organization reaffirms our unwavering commitment to prosecute those who seek to profit at the expense of the suffering of to others. We will continue to work with our domestic and international law enforcement partners to bring justice to those who engage in this inhumane practice. This case is one example of bilateral progress to effectively dismantle human trafficking networks operating across the U.S.-Mexico border.”
“The long prison sentence imposed upon Rafael Alberto Cadena-Sosa is a testament to the cooperation and commitment of numerous law enforcement agencies both here and in Mexico to stop this appalling criminal activity,” said Special Agent in Charge George L. Piro of the FBI Miami Office. “We will continue working with our partners to dismantle human trafficking networks such as this one that operate in the shadows and brutalize their victims.”
Acting Assistant Attorney General Gupta and U.S. Attorney Ferrer praised the collaborative efforts of multiple law enforcement agencies throughout the investigation and prosecution, including the Federal Bureau of Investigation, the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco and Firearms, the Office of International Affairs, Criminal Division, U.S. Department of Justice, Florida Department of Law Enforcement, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Okeechobee County Sheriff’s Office, Fort Pierce Police Department, Avon Park Police Department, Boynton Beach Police Department, and Lee County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Adam McMichael and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Members of Drug Organization IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a federal grand jury indictment in Operation Drop the Hammer, an extensive investigation into a drug trafficking network operating in the Baton Rouge and Denham Springs area.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The following nine individuals have been charged:
- Darryl Q. Cobb, also known as “Hammer Bob” and “Hammer,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine and cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
- Tabari A. Wilkerson, also known as “T,” age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; unlawful use of a communications facility; and forfeiture.
- Morgan M. Dillon, also known as “Mo,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
- Thurman Ray Morris, age 57, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; unlawful use of a communications facility; and forfeiture.
- Gerald Norwood Cobb, age 63, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine base; unlawful use of a communications facility; and forfeiture.
- Lashonda Desiree Cobb, age 31, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture.
- Dequincy M. Conley, also known as “Dee Dee,” age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and forfeiture.
- Troy Lee Albert, also known as “Shine,” age 32, of Albany, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and forfeiture.
- Shabass J. Dantzler, age 25, of Springfield, Louisiana, is charged with unlawful use of a communications facility.
If convicted, each defendant could face significant incarceration, fines, restitution, and supervised release following imprisonment.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue to focus our energies and resources on eradicating drug trafficking organizations and the violence that comes with them. To be clear, dangerous drug dealers will find no safe haven within the federal criminal justice system. I greatly appreciate the hardworking team of agents and prosecutors for their tireless efforts during this important operation. In particular, I would like to recognize the tremendous contribution of the late Officer James E. Foster, Jr., Denham Springs Police Department, who recently lost his life in the line of duty while responding to an emergency. In remembering Officer Foster, we are reminded of the sacrifices that law enforcement officers and their families make every day to ensure the safety of our community.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Today’s indictment and arrests stand as a warning to those individuals whose greed drives them to pollute the greater Baton Rouge area with poisonous contraband. The message that law enforcement continues to send to drug dealers is, selling drugs will bring an end to your freedom. DEA and our other federal, state, and local counterparts will remain steadfast in our resolve to rid our community of this clear and present danger.”
Livingston Parish Sheriff Jason Ard stated: “It’s an honor that the hardworking men and women, who make up my Narcotics Division, played a vital role in this extensive investigation. The teamwork between agencies helps to keep us all safe.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Agency, the Livingston Parish Sheriff’s Office, and the Denham Springs Police Department, with assistance from the 21st Judicial District Attorney’s Office, East Baton Rouge Sheriff’s Office, Baton Rouge City Police Department, and the Louisiana State Police. This matter is being prosecuted by Assistant United States Attorney Cam T. Le.NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
- Darryl Q. Cobb, also known as “Hammer Bob” and “Hammer,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine and cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture.
Marvin Tyrone White Is Sentenced to Wire FraudRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Marvin Tyrone White was sentenced today on a guilty plea to one count of access device fraud. White received $29,000 dollars in claims benefits from the Gulf Coast Claims Facility that he was not entitled to receive.
White was sentenced to the five years of probation and ordered to pay full restitution to the Gulf Coast Claims Facility. This case was investigated by the United States Secret Service and prosecuted by the United States Attorney’s Office.
Local Tax Preparer Charged with False Tax Return PreparationRead the Press Release
HOUSTON – A Houston federal grand jury has returned an indictment charging Doyle J. Blevins Jr., of Willis, with 27 counts of preparing false client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation.
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned Jan. 21, 2015. Blevins surrendered to authorities this morning and will make his initial appearance before U.S. Magistrate Judge George C. Hanks at 2:00 p.m. today.
According to the indictment, Blevins operated a tax return preparation business in Willis under the name Total Refund Tax Service. The indictment alleges he prepared dozens of materially false client tax returns during calendar years 2008 through 2010. The indictment also alleges he included in these tax return bogus “side business” losses in order to generate excessive refunds totaling approximately $285,000.
If convicted, Blevins faces up to three years in federal prison and a possible $250,000 fine on each count.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that James Craig Lebo, 46, of Lincoln, Nebraska, was sentenced on January 23, 2015, in Lincoln, Nebraska, to 60 months in prison by United States District Judge John M. Gerrard, for possessing child pornography. Jones was also ordered to complete a ten-year term of supervised release after serving his prison sentence. Jones will also be required to register as a sex offender for the remainder of his life.
On April 24, 2014, an investigator with the Lincoln Police Department was investigating computers sharing child pornography files via the internet. On that date, an IP address was identified as having files available for sharing and investigators were able to download files from a computer at that IP address. Subsequent investigation revealed that the IP address was registered to Lebo. In June of 2014, investigators executed a search warrant at Lebo’s residence and made contact with him. During the execution of the search warrant, Lebo was interviewed and admitted he used file sharing software on his computer to file share and download files which have been identified as child pornography because they depict sexually explicit conduct involving children under the age of 18 years old.
A forensic investigation of Lebo’s computer showed that he had received images of child pornography from December of 2013 through June of 2014. The forensic exam also revealed that Lebo received 153 videos and approximately 10,000 images of child pornography. Included in the items were videos and images of prepubescent minors engaged in sexually explicit conduct.
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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Lincoln Police Department.
Leader of Mail Theft Ring, "Superman," Charged in 18-Count Indictment with Three Co-ConspiratorsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that four Anchorage residents were charged in an eighteen-count indictment for their role in a mail theft ring that involved distribution of methamphetamine.
Jonathan Ortiz Escalante, aka “Superman,” 45, of Anchorage, was charged in an eighteen-count indictment with conspiracy, theft of mail, credit card fraud, bank fraud, counterfeit securities, aggravated identity theft, trafficking in methamphetamine, and being a felon in possession of firearms in relation to a shooting in Anchorage. Escalante was previously convicted of conspiring to commit bank fraud in Washington and is therefore prohibited from possessing firearms.
Neasha Martha Moore, 24, of Anchorage, is charged in three counts of the indictment with conspiracy, bank fraud, and counterfeit security, for her role in cashing checks stolen from the mail.
Ralph Edward Oliver, 20, of Anchorage, is charged in two counts of the indictment with conspiracy and attempted bank fraud for his role in attempting to cash checks stolen from the mail.
John Fred Brittain, 23, of Anchorage, is charged in two counts of the indictment with conspiracy and theft of mail for his role in stealing mail in exchange for methamphetamine.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Escalante aka “Superman” is alleged to be the leader of a mail theft ring in Anchorage. The indictment charges that Escalante solicited Brittain and others to steal mail and identification cards that he then altered and used to cash stolen checks. Escalante also used stolen credit cards and forged counterfeit securities, and distributed methamphetamine to Brittain and others in exchange for stolen mail. Escalante solicited Moore, Oliver, and others to cash the fraudulent checks. The felon in possession count alleges that Escalante possessed two different Ruger 9mm pistols while he carried out his drug trafficking crimes.
Escalante made his initial appearance before United States Magistrate Judge Kevin McCoy on January 23, 2015. The remaining defendants are not yet in federal custody.
Escalante is facing a mandatory minimum of five years’ incarceration and a maximum of forty years’ incarceration, and a $5 million fine. Moore and Oliver are facing a maximum of thirty years’ incarceration and a $1 million fine. Brittain is facing a maximum of five years’ incarceration and a $250,000 fine.
Ms. Loeffler commends the U.S. Postal Inspection Service, the ATF, the FBI Safe Streets Task Force, and APD for the investigation of this case.
Lanham Man Sentenced to over 3 Years in Prison for Using Stolen Personal Information to Buy Precious MetalsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Olusegun Adebiyi, age 42, of Lanham, Maryland, today to 39 months in prison followed by three years of supervised release for wire fraud and aggravated identity theft arising from a fraud scheme to obtain precious metals using stolen personal information of two victims. Judge Chasanow also entered an order that Adebiyi pay $122,500 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea, on July 3, 2013, Adebiyi and his co-schemers faxed a copy of a fraudulent Maryland driver’s license in the name of a victim to Gold Bullion International (GBI) to complete the process of opening a trading account. Between July 23 and August 27, 2013, Adebiyi and his co-schemers fraudulently purchased precious metals from GBI worth $122,500 in the victim’s name, and caused GBI to deliver those precious metals to an address in Washington, D.C. The payment was made by transferring money from the victim’s bank account without his knowledge.
Similarly, on September 26, 2013, Adebiyi and his co-schemers faxed a copy of a fraudulent Maryland driver’s license in the name of another victim to GBI to complete the process of opening a trading account in this second victim’s name. The fax was sent from a store in College Park, Maryland and Adebiyi’s activities were captured on video. Shortly thereafter, GBI requested that the documents be resubmitted. On October 9, 2013, Adebiyi sent the same information to GBI from the same store which was also captured on video. Thereafter, Adebiyi attempted to purchase precious metals worth $44,833.50 in the name of the second victim and attempted to cause GBI to deliver those items to an address in Washington, D.C.
On November 6, a controlled delivery of the precious metals to the Washington D.C. address was attempted through UPS. Law enforcement observed the defendant drive into the area shortly before the delivery was scheduled. The package was recalled because the delivery address was incomplete. Law enforcement saw Adebiyi leave the area approximately 15 minutes after the package was recalled. GBI, working with law enforcement, rescheduled the delivery for November 14, 2013. Law enforcement again observed Adebiyi drive into the area shortly before the delivery was scheduled. The UPS driver went into the apartment building carrying a package and was observed exiting the building carrying the same package. Law enforcement arrested Adebiyi as he was leaving and seized pieces of paper containing the UPS package tracking numbers for the November 14 delivery, the second victim’s identifying information and the UPS tracking numbers for the November 6 delivery.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Lake Jackson Man Gets Five Years for Distributing Child PornographyRead the Press Release
HOUSTON – Lake Jackson resident Bradley Beckerdite, 25, has been sentenced to federal prison following his convictions for distribution and possession of child pornography, United States Kenneth Magidson announced today. Beckerdite pleaded guilty May 12, 2014.
Today, U.S. District Judge Lynn Hughes, who accepted the guilty plea, handed Beckerdite a term of imprisonment of 60 months. He was further ordered to serve five years of supervised release following completion of that term. Beckerdite must also register as a sex offender.
Beckerdite was indicted on April 24, 2013, following an investigation conducted by the Houston FBI Child Exploitation Task Force. That investigation revealed that Beckerdite was making child pornography available to others through the use of peer-to-peer software over the Internet. A special agent downloaded an image of child pornography from the images/videos Beckerdite was making available online. The images included children under the age of 12 being sexually violated by adults and children under the age of 12 in positions which caused their genitalia to be displayed in a lewd/lascivious manner. Bondage involving children was also present on the defendant’s computer.
Law enforcement executed a search warrant on Sept. 6, 2012, at the home of a third party. Beckerdite used the Internet connection at that residence to receive and distribute child pornography in an attempt to avoid detection. The examination of the computer media ultimately obtained from Beckerdite revealed more than 11,000 digital images and approximately 145 videos which contained child pornography.This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KTM Industries, Inc. Resolves False Claims Act Allegations Involving National Science Foundation AwardRead the Press Release
GRAND RAPIDS, MICHIGAN – KTM Industries, Inc. (“KTM”), a Lansing-based company that develops and manufactures biodegradable engineered foam, has agreed to pay $170,923.65 to the federal government to resolve allegations that it fraudulently obtained funding under a National Science Foundation (“NSF”) award in violation of the federal False Claims Act. As part of the settlement, KTM’s CEO agreed to pay an additional $25,000 and submit to a three-year exclusion from participation in federal programs, grants, and contracts. The government previously received $54,076.35 from Michigan State University (“MSU”) in a related investigation into whether, under a subcontract with KTM, MSU spent NSF award funds on unallowable equipment. KTM, KTM’s CEO, and MSU did not admit liability as part of their respective settlements.
In September 2010, NSF awarded KTM Phase II funding under a Small Business Technology Transfer (“STTR”) grant to support the development of chemically-modified plastic starch bio-foams. The United States alleged that to obtain and maintain this funding, KTM and its CEO knowingly made a number of false statements and supplied NSF and NSF contractors with false documents. These false statements and false documents concerned, among other things, KTM’s accounting system and timekeeping records, the actual expenditure of NSF award funds, and the primary employment and payment of the principal investigator on the NSF project. The United States further alleged that during the investigation of this case, KTM produced 24 false and fraudulent employee timesheets in response to an administrative subpoena, the creation of which timesheets was directed by the company’s CEO.
“Those who seek federal funding must be truthful and accurate in their dealings with government agencies,” said U.S. Attorney Patrick Miles. “Companies and individuals that make misrepresentations to obtain such funding undermine the integrity of the grant process and unfairly divert funds from qualified grantees who will play by the rules.”
Allison Lerner, NSF’s Inspector General said, “STTR funding is a valuable tool for small businesses to develop innovative technologies. Unscrupulous individuals and companies who lie to fraudulently obtain these funds will not be tolerated. I commend the U.S. Attorney for his support in this case.”
This case was investigated by NSF’s Office of Inspector General. Assistant U.S. Attorney Adam B. Townshend represented the United States.
KTM Industries, Inc. Resolves False Claims Act Allegations Involving National Science Foundation AwardRead the Press Release
GRAND RAPIDS, MICHIGAN – KTM Industries, Inc. (“KTM”), a Lansing-based company that develops and manufactures biodegradable engineered foam, has agreed to pay $170,923.65 to the federal government to resolve allegations that it fraudulently obtained funding under a National Science Foundation (“NSF”) award in violation of the federal False Claims Act. As part of the settlement, KTM’s CEO agreed to pay an additional $25,000 and submit to a three-year exclusion from participation in federal programs, grants, and contracts. The government previously received $54,076.35 from Michigan State University (“MSU”) in a related investigation into whether, under a subcontract with KTM, MSU spent NSF award funds on unallowable equipment. KTM, KTM’s CEO, and MSU did not admit liability as part of their respective settlements.
In September 2010, NSF awarded KTM Phase II funding under a Small Business Technology Transfer (“STTR”) grant to support the development of chemically-modified plastic starch bio-foams. The United States alleged that to obtain and maintain this funding, KTM and its CEO knowingly made a number of false statements and supplied NSF and NSF contractors with false documents. These false statements and false documents concerned, among other things, KTM’s accounting system and timekeeping records, the actual expenditure of NSF award funds, and the primary employment and payment of the principal investigator on the NSF project. The United States further alleged that during the investigation of this case, KTM produced 24 false and fraudulent employee timesheets in response to an administrative subpoena, the creation of which timesheets was directed by the company’s CEO.
“Those who seek federal funding must be truthful and accurate in their dealings with government agencies,” said U.S. Attorney Patrick Miles. “Companies and individuals that make misrepresentations to obtain such funding undermine the integrity of the grant process and unfairly divert funds from qualified grantees who will play by the rules.”
Allison Lerner, NSF’s Inspector General said, “STTR funding is a valuable tool for small businesses to develop innovative technologies. Unscrupulous individuals and companies who lie to fraudulently obtain these funds will not be tolerated. I commend the U.S. Attorney for his support in this case.”
This case was investigated by NSF’s Office of Inspector General. Assistant U.S. Attorney Adam B. Townshend represented the United States.
KC Man Sentenced for Crack CocaineRead 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 sentenced in federal court today for possessing crack cocaine to distribute.
James C. Allen, 52, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 10 years in federal prison without parole.
On Sept. 22, 2014, Allen pleaded guilty to possessing crack cocaine with the intent to distribute. Allen admitted that he was carrying 3.8 grams of crack cocaine in one of his boots, where it was packaged in over 30 separate plastic baggies for sale. Allen was arrested at a park located at 918 E. Ninth Street on July 30, 2013. At the time of his arrest, Allen also was in possession of an SCCY 9mm pistol.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and Huntsville City Schools Announce Proposed Consent Decree to Provide Equal Educational OpportunitiesRead the Press Release
The Department of Justice announced today that it has filed a proposed consent order in Hereford v. Huntsville Board of Education, a longstanding school desegregation case, to resolve issues related to school attendance zones, black students’ access to quality academic offerings and student discipline, among other areas. The department and counsel for the Huntsville City Schools in Alabama jointly filed the proposed consent order in district court in Birmingham, and are now seeking public comment prior to presentation of the proposed consent order to the Huntsville Board of Education and to the court for final approval.
The proposed agreement, if approved, would resolve the parties’ dispute over the district’s 2014 plan to reconfigure student attendance zones. The Justice Department had objected that the plan did not further desegregation or address racial inequalities in students’ access to quality academic offerings. If approved by the court, the proposed consent order would require the district to provide equal educational opportunities to black students by taking steps including:
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revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
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expanding access for black students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
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implementing measures to promote faculty and administrator diversity;
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ensuring that all students are aware of and can equally participate in extracurricular activities;
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creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory, and does not unnecessarily remove students from classrooms;
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establishing a desegregation advisory committee consisting of students and parents to advise the district and inform the court about implementation of the consent order;
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providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias, and supporting positive student behavior; and
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continuously monitoring racial disparities to ensure meaningful and sustained improvement in areas including student performance, students’ access to courses, and rates of student discipline.
“A quality education is the key that opens the door to a better future,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This agreement aims to ensure that African American students in Huntsville schools can access that quality education on an equal basis. We look forward to working with the district to implement the measures required by this proposed order, if approved, and eventually bring this case to successful resolution after so many years.”
“The Department of Justice is committed to ensuring that Alabama schools provide African American students, and all students, with the equal educational opportunities guaranteed under federal law,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama.
If the proposed consent order is approved, the Justice Department will monitor and enforce the district’s compliance. The district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
The proposed consent order can be found at www.proposedconsentorder.com, which also provides information regarding opportunities for public comment, including a series of community forums.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race and other factors in public schools, is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its web site at www.justice.gov/crt.
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Inmate Housed at Florence Correctional Complex Found Guilty of Threatening to Assault and Murder Correctional Officers and Their FamiliesRead the Press Release
DENVER – Following a three-day trial, a jury late last week found Theron Maxton, age 59, an incarcerated inmate, guilty of four counts of influencing a federal officer by threats to the officer and/or the officer’s family member, the U.S. Attorney’s Office and the FBI announced. The jury deliberated for approximately three two hours before handing down their guilty verdicts. The trial was held before U.S. District Court Judge Philip A. Brimmer, starting on January 20, 2015, and concluding on January 22, 2015. At the conclusion of each trial day, as well as at the conclusion of the trial, Maxton was remanded into custody.
Maxton was an inmate at the Florence Correctional Complex, in both the United States Penitentiary and the Federal Correctional Institution at the time he made the threats. He is scheduled to be sentenced by Judge Brimmer on May 1, 2015.
According to the Second Superseding Indictment, obtained on May 8, 2014, in November of 2012 the defendant allegedly threatened to assault or murder prison correctional officers, and in some cases, their families, in retaliation of the officers performing their official duties. The threats were made in letters, either to the correctional officer directly, or in one instance to a former now released cellmate. In that letter, Mr. Maxton attempted to persuade the former inmate to kill the Prison staff members and their families. In December of 2012, Maxton also said directly to an FBI special agent that if given the opportunity he would try to kill prison staff members.
For each count of influencing a federal official by threats to the officer and/or family member, the defendant faces not more than 10 years, and up to a $250,000 fine, per count, for each of the four counts.
This case was investigate by the Federal Bureau of Investigation.
The trial was handled by Assistant U.S. Attorneys David Tonini and Valeria Spencer.
Indiana Drilling Company COO Sentenced to 8 Years in Prison for Embezzling $9MRead the Press Release
PITTSBURGH – A resident of Indiana, Pa., was sentenced in federal court on Jan. 23, 2015, to 96 months imprisonment, three years supervised release and $10,206,425 in restitution on his conviction of conspiracy to commit mail fraud, forged checks and tax fraud, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Larry Dean Winckler, 53, of Indiana, Pa.
According to information presented to the court, the court was advised that between 2007 and 2012, Winckler, the Chief Operating Officer at Falcon Drilling Company in Indiana, Pa., conspired to embezzle nearly $9,020,687 from his employer by creating forged checks and fake company invoices. Winckler conspired to defraud Falcon through embezzlement of company funds by using forged checks, fake invoices to fictitious or real vendors, and false statements to auditors. In imposing sentence, Judge McVerry noted the seriousness of the crime, and enormity of the embezzlement over several years.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Winckler.
Illegal Alien Sentenced to Two Years' Imprisonment for Illegally Reentering the United States and Using Fraudulent Identificaion DocumentsRead the Press Release
Contact: Steve Young
An alien who illegally reentered the United States after being deported and used fraudulent document to obtain employment was sentenced today to two years in federal prison.
Jaime Rodriguez-Andres, also known as Alejandro Govea-Salvador, age 41, a Mexican citizen living in Waterloo, Iowa, received the prison term after an October 10, 2014, guilty plea to one count of illegal reentry into the United States by an aggravated felon, one count of unlawful use of identification documents, and one count of making a false claim to United States citizenship.
At the guilty plea, Rodriguez-Andres admitted he re-entered the United States without permission after being removed from the country on October 6, 2005. Rodriguez-Andres was convicted on April 6, 2009, in Black Hawk County, Iowa, on forgery and identity theft charges, aggravated felonies, and removed from the United States a second time on September 16, 2009. Rodriguez-Andres also admitted that he used a Social Security card in someone else’s name in completing an employment verification form to obtain a job in Waterloo. He also falsely claimed to be a United States citizen on that employment form when he applied for work. Immigration officials became aware of Rodriguez-Andres illegal return to the United States in July 2014 after Rodriguez-Andres was arrested in Waterloo, Iowa, for assault domestic abuse causing bodily injury.
Rodriguez-Andres was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 24 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez-Andres is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2034.
Illegal Alien Sentenced for Firearms OffenseRead the Press Release
McALLEN, Texas – Emilio Padilla, 24, of Taumalipas, Mexico, two counts of being an illegal alien in possession of a firearm, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in McAllen convicted Padilla on Oct. 24, 2014, following a two-day trial and less than an hour of deliberation.
Today, Senior U.S. District Judge Randy Crane, who presided over the trial, handed Padilla a sentence of 21 months in federal prison. At the hearing, the defense contended that Padilla had possessed the firearms to protect his family. As an illegal alien, Padilla is expected to face deportation proceedings following his release from prison.
During trial, the jury heard the testimony of several law enforcement officers who stated they had met with Padilla at his residence in Alamo on April 29, 2014. At that time, he admitted to having several firearms, including two Glock 9mm pistols. Padilla was in the United States illegally and not permitted to possess firearms.
Agents conducted a search of the residence and discovered the weapons, which were manufactured in Austria and had traveled in interstate and foreign commerce.
Padilla’s brother, Mariano Padilla, pled guilty to the same offense on June 6, 2014, and was sentenced to 18 months in federal prison by Judge Randy Crane on Oct. 22, 2014.
Padilla will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the San Juan Police Department. Assistant U.S. Attorneys Leo J. Leo III and David A. Lindenmuth prosecuted the case.
Huntington man sentenced on heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Mark R. Tabb, 46, of Huntington, West Virginia, was sentenced to 30 months in federal prison.
Tabb pleaded guilty to possession with intent to distribute heroin in October 2014. During a search of his home in the 500 block of 4th Avenue on Aug. 12, 2012, Tabb was found to be in possession of more than 10 grams of heroin, which he intended to sell.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The case was investigated by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Greg McVey was in charge of the prosecution.
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Huntington man pleads guilty to oxymorphone chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Eric Lawrence Silverstein, 39, of Huntington, West Virginia, pleaded guilty to distribution of oxymorphone.
Silverstein admitted that he made multiple sales of oxymorphone to a confidential informant.
On July 25, 2014, the informant arranged a controlled buy of 10 40-mg oxymorphone pills through Silverstein. Silverstein drove the informant to the 1400 block of 4th Avenue in Huntington, where a third individual entered the vehicle and sold the informant the pills for $600.
On July 28, 2014, the same informant arranged a similar purchase through Silverstein. The informant purchased eight 40-mg oxymorphone pills for $480.
Silverstein faces up to 20 years in federal prison and a $1 million fine. He is scheduled to be sentenced on April 27, 2015.
Chief United States District Judge Robert C. Chambers presided over the hearing.
The case is being investigated by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Greg McVey is in charge of the prosecution.
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Houston Man Convicted of Using Counterfeit Cards in Nearly 400 Transactions at Sam’s ClubRead the Press Release
HOUSTON – Guang Fa Lin, 47, has entered a guilty plea to one count of using counterfeit access devices, announced United States Attorney Kenneth Magidson. Lin resided in Houston but has no legal status in the U.S.
During his plea hearing today, Lin admitted that between 2012 and 2013, he used counterfeit credit cards, debit cards and credit and debit account numbers to obtain goods, services and other things of value.
According to the factual basis in the plea agreement filed in the case, Lin used scores of credit and debit cards in approximately 395 transactions under various Sam’s Club Memberships bearing different identifying information to purchase items such as cigarettes, iPads, gum and gift cards.
The counterfeit cards bore account numbers banks and other financial institutions issued to account holders, many of whom reside outside of Texas. As a result, Lin caused more than $200,000 in losses.
The plea agreement requires Lin to make full restitution.
U.S. District Court Judge Sim Lake, who accepted the guilty plea, has set sentencing for April 17, 2015. At that time, Lin faces up to 10 years in prison and a $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation by U.S. Secret Service. Assistant U.S. Attorney Stephen L. Corso is prosecuting the case.
Houston Man Charged with False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that RACE ADDINGTON, 49, of Houston, Texas, was charged today in a two-count Bill of Information with making false statements to agencies or departments of the United States in relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal 225 located on a federal mineral lease in the Gulf of Mexico.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer pressure chart that recorded the testing of the blowout preventer testing done on November 27, only recorded 6 of the 7 required components as being tested and was not signed nor dated by any representative on the platform.
On or about November 28, 2012, ADDINGTON, as the well site supervisor for the platform saw the results of the blowout preventer testing and had workers create a false blowout preventer test. The next day when Bureau of Safety and Environmental Enforcement (BSEE) inspectors conducted a routine inspection of the platform, ADDINGTON presented the fabricated blowout preventer pressure test chart to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system.
On December 6, 2012, during an investigation of the veracity of the blowout preventer test by the Department of Interior’s Investigation and Review Unit, ADDINGTON lied and told investigators the false chart he provided inspectors was a test of the chart recorder and that the inspectors mistakenly retrieved the wrong pressure chart from the files when in truth and in fact he knew that he had the blowout preventer pressure test chart fabricated and personally presented the chart to inspectors as the actual test record for the platform’s blowout preventer system.
If convicted, ADDINGTON faces a maximum term of imprisonment of 5 years per count and/or a maximum fine of $250,000 per count.
The U.S. Attorney’s Office praised the work of the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit is in charge of this prosecution.
Four Members of Virtual Kidnapping Ring SentencedRead the Press Release
SAN DIEGO - Four members of an extortion ring were sentenced in federal court today for collectively duping 124 Latino families across the United States, in some cases falsely claiming a family member had been kidnapped and forcing them to pay almost $190,000 in ransom for kidnappings that never took place.
The defendants – Ruth Graciela Raygoza, Maria Del Carmen Pulido Contreras, Adrian Jovan Rocha and Jonathan Rocha – were sentenced by U.S. District Judge Jeffrey T. Miller to 40, 21, 21 and 14.5 months in prison, respectively. They pleaded guilty in July of 2014 to conspiracy to commit wire fraud and conspiracy to launder money.
According to the plea agreements and other court documents, the ring targeted victims from Mexico and Central America that spoke primarily Spanish and were not United States citizens. As part of the scheme, co-conspirators of the foursome called numerous families in the United States and falsely represented that they were holding a loved one captive, and demanded money for his or her safe release. The extortion victims were usually instructed to send thousands of dollars through either MoneyGram or Western Union. Defendants would then pick up the money in Southern California. After picking up the money, defendants re-wired or delivered the money to other conspirators in Mexico. The money was divided among defendants and co-conspirators in Mexico to fund and promote the scheme.
“This has been by far the worse experience of my life,” one victim wrote in a statement to the court. “I could not sleep for days because I was waiting for their phone call to give instructions since they told me that they would kill my niece if I did not send the money requested. I got sick as a result of not sleeping, not eating well and the stress that I was subjected to and feeling so powerless.”
U.S. Attorney Laura Duffy said, “This was a cruel hoax that caused significant emotional and financial damage to a large number of people. These sentences are appropriate for defendants who preyed on a vulnerable population with no regard for their suffering.”
“Homeland Security Investigations is committed to dismantling criminal rings that seek to exploit vulnerable victims through their daunting scams,” said interim Special Agent in Charge Joe Garcia. “These unscrupulous criminal networks are motivated by extreme greed and will go to extreme measures to gain illicit proceeds.”
DEFENDANTS Case Number: 13CR3984-JM Ruth Graciela Raygoza Age: 64 Chula Vista, California Maria Del Carmen Pulido Contreras Age: 43 Los Angeles, California Adrian Jovan Rocha Age: 27 Tijuana, Mexico Jonathan Rocha Age: 24 Tijuana, Mexico CHARGESTitle 18, United States Code, Section 1349 - Conspiracy to Commit Wire Fraud
INVESTIGATING AGENCIES
Title 18, United States Code, Section 1956 - Conspiracy to Launder Money (international promotion)U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Fort Washington Man Exiled to Three Years in Prison for Illegal Possession of A Firearm and for Theft of Government PropertyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Lawrence Kutrelle White, age 29, of Ft. Washington, Maryland, today to three years in prison followed by three years of supervised release for being a felon in possession of a firearm and for theft of government property.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to his plea agreement, on October 29, 2013, White, along with unknown co-conspirators, broke into three vehicles owned and operated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), causing approximately $1,180.70 in damages to the ATF vehicles. White and his co-conspirators stole tactical vests, portable radios, a taser, night vision goggles, ammunition, rifle and pistol magazines loaded with ammunition, and other items belonging to ATF, worth at least $30,503.87.
In addition, White and the unknown co-conspirators stole approximately $650 worth of personal property belonging to ATF Special Agents.
On October 29, 2013, some of the property stolen from the ATF vehicles was found at a park in Bowie, Maryland.
On November 29, 2013, White, on a recorded jail call, directed another individual to retrieve a .40 caliber pistol belonging to White from a residence. White had at least three prior felony theft convictions, which made him ineligible to possess a firearm and ammunition.
On January 6, 2014, members of law enforcement executed a search warrant at a home in Bowie and recovered some of the property stolen from the ATF vehicles. The value of the stolen property that was recovered from the park and the home was approximately $19,772.33.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Nicolas A. Mitchell, who prosecuted the case.
Fort Pierce Tax Preparer Sentenced to Jail for Preparing False Tax Returns and Identity TheftRead the Press Release
Fort Pierce tax preparer was sentenced today to 81 months, to be followed by three years of supervised release, for preparing tax returns that included fraudulent information. As part of his sentence, the court ordered Maurival to pay $349,992.00, in restitution to the IRS.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
On November 17, 2014, Rony Maurival, 39, pled guilty to four counts related to his filing of false tax returns, one count of theft of government funds, and one count of aggravated identity theft.
According to the indictment and details discussed in open court, from July 2008 to March 2012, Maurival owned and operated “RJ’s Tax & Services,” a tax return preparation business located in Fort Pierce, Florida. Maurival admitted to adding false wage and income information to his client’s tax returns in order to illegally maximize the earned income tax credit (EITC) claimed on their tax returns. The EITC is a refundable tax credit designed to assist low to moderate income taxpayers. Maurival admitted that his actions resulted in a tax loss to the IRS of between $1 million and $2.5 million.
Maurival also admitted to filing his own false tax returns for years 2009 and 2010. Specifically, Maurival admitted to not reporting more than $250,000 in tax preparation fee income earned through his business in those years. Maurival further admitted to using stolen identity information to file false tax returns with the IRS in order to steal money from the United States. In doing so, he would direct the false tax refunds to bank accounts that he controlled.
Mr. Ferrer commended the investigative efforts of the IRS-CI. This case was prosecuted by Assistant United States Attorney Russell R. Killinger and Department of Justice Tax Division Trial Attorney Charles M. Edgar, Jr.
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 Teacher Sentenced to 210 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton. Jr. today sentenced Matthew C. Graziotti (43, Edgewater) to 210 years in federal prison for producing, distributing, and possessing child pornography. The Court also ordered him to serve a lifetime of supervision following his release from prison and to forfeit the electronic devices that he had used to commit the crimes. Graziotti pleaded guilty on October 30, 2014.
According to court documents, Graziotti distributed 141 images and 6 videos depicting the sexual abuse and exploitation of children to an undercover FBI agent. During the execution of a search warrant, agents located thousands of child pornography images on Graziotti’s computer involving children under the age of 12. One computer folder, named “personally known,” contained sexually explicit photographs and videos of 29 children that Graziotti had sexually abused when they were under the age of 12. Graziotti stored the sexually explicit images that he produced in subfolders bearing each child’s name. He produced these images from 2010 through 2014. During this period, Graziotti taught elementary school in South Daytona and was the director of the school’s summer day camp program. He also coached youth sports.
“Together with our law enforcement partners, the FBI will remain vigilant to ensure our children are protected,” stated Michelle S. Klimt, Special Agent in Charge, FBI – Jacksonville Division. “Let this sentence be a clear message to others involved in this horrendous crime that exploits the most innocent among us. The FBI is committed to locating and removing sexual predators from kids’ lives through the U.S. justice system.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.justice.gov/psc.
Former North Carolina House of Representative Pleads Guilty to Theft from A Non-ProfitRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, of Kinston, North Carolina, pleaded guilty to the theft of $150,000 from a federally-funded nonprofit organization in violation of Title 18, United States Code, Section 666. LAROQUE also agreed to pay $300,000.00 in full restitution to East Carolina Development Company (“ECDC”), which is a nonprofit organization based in Kinston, North Carolina. ECDC was originally created to provide loans to small rural businesses using federal funds provided to ECDC by the United States Department of Agriculture under the Rural Development Division’s Intermediary Relending Program.
On April 17, 2013, a 12-Count Second Superseding Indictment was returned charging LAROQUE, among other things, with the theft of $300,000 from ECDC. According to the Indictment, LAROQUE accomplished the $300,000 theft through four disbursements made by ECDC under the guise of loans to LAROQUE’s wholly-owned company. A review of bank records established that such funds were funneled through LAROQUE’s wholly owned company and then used for his personal benefit, including his investment in an ice skating rink in Greenville and to help fund his purchase of rental property in Kinston.
On June 7, 2013, after a three-week trail, a jury found LAROQUE guilty on each of the twelve counts. Later, the court granted a new trial based on an issue regarding a juror’s internet research during deliberations.
At sentencing scheduled for the court’s May 12, 2015 term in Greenville, LAROQUE faces a maximum of 10 years imprisonment followed by up to 3 years of supervised release.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, and the Federal Bureau of Investigation. Assistant United States Attorneys, Dennis M. Duffy and Adam F. Hulbig prosecuted the case.
Former CIA Officer Convicted for Unauthorized Disclosure of National Defense Information and Obstruction of JusticeRead the Press Release
A former CIA officer was convicted today by a federal jury in Alexandria, Virginia, of illegally disclosing national defense information and obstructing justice.
Attorney General Eric Holder, FBI Director James B. Comey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement.
“This is a just and appropriate outcome,” said Attorney General Holder. “The defendant’s unauthorized disclosures of classified information compromised operations undertaken in defense of America’s national security. The disclosures placed lives at risk. And they constituted an egregious breach of the public trust by someone who had sworn to uphold it. As this verdict proves, it is possible to fully prosecute unauthorized disclosures that inflict harm upon our national security without interfering with journalists' ability to do their jobs. And I want to thank the investigators, prosecutors and support staff who made this outcome possible for their relentless efforts in advancing a complex case that spanned multiple years.”
“He violated his sworn duty to protect our nation's secrets and he betrayed our country,” said Director Comey. “The FBI will continue to pursue these cases vigorously.”
“Jeffrey Sterling was trusted with the nation's most sensitive secrets and chose to expose them - putting our national security at risk, and endangering lives in the process,” said Assistant Attorney General Caldwell. “These cases are challenging, but vitally important to our efforts to secure critical intelligence on behalf of the American people.”
“Over 10 years ago a disgruntled former CIA employee disclosed extremely sensitive classified information to a journalist,” said U.S. Attorney Boente. “That classified information was critical to our national defense, and releasing it was illegal and went against Mr. Sterling's professional commitments to the CIA. Mr. Sterling's vindictive and careless choices ultimately led us here today and to this unanimous verdict. I would like to thank the trial team and our partners at the FBI's Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
Jeffrey Alexander Sterling, 47, of O’Fallon, Missouri, was convicted today in the Eastern District of Virginia of six counts of unauthorized disclosure of national defense information, and one count each of unlawful retention of national defense information, unauthorized conveyance of government property and obstruction of justice. Sterling was indicted on Dec. 22, 2010, and arrested on Jan. 6, 2011. Sentencing is scheduled for April 24, 2015.
According to evidence presented at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006, when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington, D.C., Field Office, with assistance in the arrest from the FBI’s St. Louis Field Office. This case was prosecuted by Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel James L. Trump and Assistant U.S. Attorney Dennis Fitzpatrick of the Eastern District of Virginia.
Floyd County Ambulance Services Company to Pay U.S. Government $948,000 to Settle False Claims Act ViolationsRead the Press Release
LEXINGTON, KY -An ambulance services company in Floyd County agreed to pay the U.S. Government $948,000 to settle civil allegations that it billed federal health care programs for medically unnecessary services over the course of several years.
According to the settlement agreement, from February 1, 2006 until December 31, 2012, Lafferty Enterprises, LLC, doing business as Trans-Star Ambulance Services, transported Medicare patients to and from dialysis clinics by ambulance when an ambulance transport was not medically necessary. The government contends that Trans-Star violated the False Claims Act by billing Medicare for routine, non-emergency ambulance transports provided to patients who were able to safely travel to and from the dialysis clinics by other means. Medicare covers non-emergency ambulance transports only when all other forms of patient transportation are considered a medical risk.
“It is vitally important that the resources available to federally funded healthcare programs be used only to pay for medically necessary services,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “Our office and our agency partners are committed to protecting the integrity of these important programs on which so many of our citizens depend.”
In addition to the payment of the settlement amount, Trans-Star has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG), which obligates Trans-Star to undertake substantial internal compliance reforms and to commit to a third-party review of its claims to federal health care programs for the next three years.
The settlement was based on the penalties associated with the alleged violations and Trans-Star’s financial ability to pay.
The investigation and settlement stem from a complaint filed by a former owner of another ambulance company in eastern Kentucky, pursuant to the whistleblower provisions of the False Claims Act, which permit private individuals to bring a lawsuit on behalf of the United States. The whistleblower, Kevin Fairlie, will receive $189,600.
The investigation was conducted by the Department of Health and Human Services, Office of the Inspector General; the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit (“MFCU”) and the U.S. Attorney’s Office.
Florida Lobster Divers Convicted for Illegal Harvesting ActivitiesRead the Press Release
Three Florida lobster divers pled guilty for illegal harvesting activities. Additionally, a Florida corporation pled guilty for their illegal activity related to the illegal harvesting activities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, Sean Morton, Superintendent of the Florida Keys National Marine Sanctuary (FKNMS), and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, made the announcement.
Charles Veach, 39, of Coppitt Key, Florida, Ryan Veach, 41, formerly of Bay Point, Florida, and Tyson Veach, 36, of Stock Island, Florida, pled guilty to the offense of knowingly transporting, selling, receiving acquiring, and purchasing lobster, when in the exercise of due care they should have known the lobster was taken, possessed, transported, and intended to be sold in violation of the laws and regulations of the State of Florida. Additionally, Super Grouper, Inc., a Florida corporation with its principal place of business in Key West, Florida, pled guilty to knowingly engaging and attempting to engage in conduct that involved the sale and purchase of, offer of sale and purchase of, and intent to sell and purchase spiny lobster, with a market value in excess of $350.00, and did knowingly transport, sell, acquire and purchase said spiny lobster in interstate commerce, knowing that said spiny lobster was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws and regulations of the State of Florida, specifically, Florida Administrative Code, Sections 68B-24.006(10).
According to the Indictment filed against the defendants, a Joint Factual Statement submitted to the Court, and statements in Court, at all relevant times Charles Veach was the president and director of Super Grouper, Inc. The corporation was the registered owner of a 32’ Invincible, center-console fishing vessel, the “Super Grouper.”
In August 2006, on the eve of the opening of commercial lobstering season in Monroe County, U.S. Fish & Wildlife Service agents placed a Global Positioning System (GPS) tracker on the fishing vessel “Super Grouper.” The GPS device permitted enforcement officers to identify sites in the Gulf of Mexico where the vessel operated by C. Veach and R. Veach had lingered for significant periods of time over the following week in the FKNMS.
On August 10, 2009, C. Veach and R. Veach operated the vessel “Super Grouper” in the course of spiny lobster harvesting activities in the FKNMS. During that voyage, surveillance aircraft operated by the Florida Fish & Wildlife Conservation Commission (FWCC), observed and videotaped them diving within the FKNMS. Special Agents of NOAA Office of Law Enforcement videotaped the return of the “Super Grouper” to the residence of C. Veach on Big Coppitt Key. The agents also videotaped five bins and one bag of spiny lobster being unloaded from the vessel, which C. Veach sold to a wholesale dealer in Key West according to trip tickets and receipts filed with the FWCC, as required by law, and retained by the dealer.
The August 10, 2009 sites, identified by the GPS tracker and surveillance, were later surveyed by the U.S. Fish & Wildlife Service Region 4 Dive Team. Artificial habitat, also known as “casitas,” were located at each site. Additionally, thorough search of the areas surrounding the sites revealed no natural habitat suitable for sheltering spiny lobster.
On August 19, 2014, NOAA Special Agents observed and photographed C. Veach and T. Veach departing Hurricane Hole Marina, Stock Island, on the “Super Grouper” and enter the FKNMS waters in the Gulf of Mexico. During that trip, Customs and Border Protection air assets observed, videotaped, and documented multiple locations at which T. Veach engaged in diving activities within the FKNMS. On their return, NOAA Special Agents photographed the landing of spiny lobster at a Stock Island commercial wholesale dealer. T. Veach was identified as one of the two occupants of the “Super Grouper” participating in the landing and subsequent sale of spiny lobster to the wholesale dealer.
On August 15, 2014, the vessel “Super Grouper” was observed in the FKNMS by Customs and Border Protection air assets who again videotaped multiple locations at which an individual deployed from the “Super Grouper” engaged in diving activities. Surveillance videos reflect the harvesting and presence in multiple locations on board the “Super Grouper” of spiny lobster. At the conclusion of the trip NOAA Special Agents witnessed the landing and sale of spiny lobster to a Stock Island commercial wholesale dealer. The occupants of the vessel included C. Veach. The spiny lobster harvested by the “Super Grouper” were sold in two transactions, to a wholesale dealer on Stock Island and a wholesale dealer in Key West for a total exceeding $3,000.
The FKNMS is a 2,800 square nautical mile area that surrounds the entire archipelago of the Florida Keys and includes the productive waters of Florida Bay, the Gulf of Mexico, and the Atlantic Ocean. The FKNMS encompasses coastal and oceanic waters, and the submerged lands thereunder, surrounding the Florida Keys, and extending westward to include the Tortugas islands, but excluding Dry Tortugas National Park.
Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, NOAA issued regulations in January 1997 to govern the conduct of activities within the sanctuary. Title 15, CFR Subsection 922.163(a)(3) prohibits any alteration of, or construction on, the seabed. Drilling into, dredging, or otherwise altering the seabed of the Sanctuary, or engaging in prop-dredging; or constructing, placing, or abandoning any structure, material, or other matter on the seabed of the Sanctuary is prohibited.
Pursuant to an agreement reached with the United States, the defendants agreed to jointly recommend a term of six months imprisonment, a $25,000 fine, and a one year term of supervised release, during which they will be barred from any involvement in lobster harvesting. Additionally, the defendants surrendered a list of all their illegal harvesting sites to the government, and are committed to removing all the sites at their own expense from federal and State waters under agent supervision. The defendants also agreed to forfeiture of the 2008 32” Invincible fishing vessel used in the offense, and its engines, tackle, and appurtenances as instrumentalities of the crimes, and surrender of their various crustacean and dive endorsements issued by the State of Florida.
C. Veach, R. Veach and T. Veach each face possible terms of imprisonment of up to one year. Additionally, they may be fined up to $100,000, ordered to make restitution to identifiable victims of the offenses, and be placed on supervised release for up to one year. The defendants are scheduled to be sentenced on May 5, 2015 at 2:00 p.m. at the Key West Sidney M. Aronovitz Federal Courthouse by U.S. District Judge James Lawrence King.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of NOAA Office of Law Enforcement, and the U.S. Fish & Wildlife Service Office of Law Enforcement who led the long-term investigation into the illegal harvesting and sale of spiny lobster. Mr. Ferrer also thanked Customs and Border Protection, the Florida Fish & Wildlife Conservation Commission and the U. S. Fish & Wildlife Service Region 4 Dive Team for their investigative efforts. This case is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonio Barnes.
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.
Ex-Employee of Southern Illinois University Charged with LyingRead the Press Release
Alleged to Have Lied to Federal Agents About Providing False Information to SIU
Follow @SDILNewsKwa Mister, 38, Fairview Heights, Illinois, was charged by Indictment with two counts of Making A False Statement to the United States Department of Transportation, Office of Inspector General and the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. United States Attorney Wigginton noted, “There is no right to lie to federal agents conducting an investigation.” If convicted, Mister faces up to ten years in prison, a $250,000 fine and up to three years supervised release.
According to the Indictment, the Illinois Department of Transportation entered into an intergovernmental agreement with Southern Illinois University at Edwardsville (SIUE) to be the fiscal agent for the Highway Construction Preparatory Training Program. The indictment charges that Mister was the Director/Project Manager at the Small Business Development Center at SIUE and served as the project manager for the Highway Construction Preparatory Training Program. The indictment alleges that an investigation and an audit revealed that Mister obtained five contracts between SIUE and Phoenix Support Services for Phoenix Support Services to purportedly serve as an independent consultant to assist with the training program. The indictment further alleges that from March 2010 through January 2011, an audit discovered five (5) Purchase Orders, five (5) Contracts, and at least four (4) Justification for Sole Source Purchase or Contract forms concerning the procurement of services from "L. A. S" [name removed]., Director, d/b/a Phoenix Support Services. The indictment further alleges that the procurement of these contracts with Phoenix Support Services was initiated by the Program Manager for the Highway Construction Preparatory Training Program, Mister. Mister procured the services of his mother, L. A. S., for sole source contracts and concealed the family relationship and the potential conflict of interest from SIUE. The indictment alleges that when the propriety of the contracts with Phoenix Support Services was under investigation by SIUE, Mister lied to SIUE as to whether the owner of Phoenix Support Services was his mother. Mister is charged with lying to federal agents concerning whether he provided false information to SIUE.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The indictment is the result of an investigation conducted by the United States Department of Transportation, Office of Inspector General, the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations and the Federal Bureau of Investigation with the assistance of Southern Illinois University and the Office of Executive Inspector General for the Agencies of the Illinois Governor. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
Distributor for Atlantic City 'Dirty Block' Gang Sentenced to 10 Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 120 months in prison for engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Aree Toulson, a/k/a “Beyah,” a/k/a “Beyeazz,” 26, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Toulson acted as a distributor on behalf of Mykal Derry, 34, of Atlantic City, helping Dirty Block distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court in Atlantic City.
Toulson was arrested on March 26, 2013. He and others travelled with Mykal Derry to a shooting range in Lakewood, New Jersey, on Oct. 18, 2012, where Toulson – a previously convicted felon – used, possessed, and discharged a firearm. According to filed documents, members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
In addition to the prison term, Judge Irenas sentenced Toulson to serve eight years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
The charges and allegations against Derry are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
15-034
Defense counsel: Paul George Esq., Philadelphia