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26 January 2015
Detroit man sentenced on firearm chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Demarco R. Bradberry, 37, of Detroit, pleaded guilty to being a felon in possession of a firearm, and was subsequently sentenced to 66 months in federal prison.
After responding to a call at a Red Roof Inn on U.S. Route 60 in Huntington, deputies with the Cabell County Sheriff’s Department approached Bradberry as he exited a room. A search of the room uncovered a Smith and Wesson .38-caliber revolver.
Bradberry had been prohibited from possessing any firearm due to four prior convictions in Detroit. They include drug convictions in April and November 1995, and weapons violations in December 2001 and May 2008.
Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was investigated by the Cabell County Sheriff’s Department, with assistance from the Federal Bureau of Investigation. Assistant United States Attorney Joe Adams was in charge of the prosecution.
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Conspirators in Gulf Oil-Spill Fund Fraud SentencedRead the Press Release
BIRMINGHAM -- A federal judge today sentenced three south Alabama family members to prison for running a scheme to steal more than $3 million from the claims fund established by British Petroleum for victims of the 2010 Deepwater Horizon oil spill, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The FBI investigated this case. Assistant U.S. Attorneys Henry Cornelius, Jacquelyn M. Hutzell and Xavier O. Carter are prosecuting the case.
U.S. District Judge Sharon Lovelace Blackburn sentenced MARCELLA TRUSS, 53, to 12 years and one month in prison. The judge also ordered Truss to pay $1.9 million in restitution and to forfeit that same amount as proceeds of illegal activity. Judge Blackburn sentenced Truss' husband, MARTEE DAVIS, 42, to 13 years and three months in prison. The judge ordered Davis to be responsible for the same restitution and forfeiture as Truss. Judge Blackburn sentenced Truss' brother, HOWARD LENARD CARROWAY, 42, to 8 years in prison. Truss and Davis lived in Grand Bay, Ala., and Birmingham, and Carroway lived in Mobile during the course of the scheme.
The overall conspiracy involved the filing of more than 50 fraudulent claims, in the names of 37 people, over about 18 months with the Gulf Coast Claims Facility, according to the government's sentencing memoranda for the three defendants. The conspirators executed their scheme by wire, mail and in person in three states, spanning four jurisdictions, according to the government. The scheme involved the repetitive and coordinated use of emails, phones, and a variety of falsified documents, including tax and payroll records.
"Stealing money intended to help disaster victims recover is a serious and heartless crime, as today's sentences reflect," Vance said. "These defendants saw a disaster that blackened and fouled the Gulf of Mexico, spoiled much of its coastline and damaged or destroyed the livelihoods of thousands of people, and they chose to exploit the tragedy for their own criminal profit. We place a high priority on investigating and prosecuting such fraud to ensure that funds available to help victims of natural and man-made disasters do not fall into the hands of criminals," she said.
“Relief funds meant to assist individuals, businesses and communities are essential in order to restore normalcy after a disaster," Stanton said. "This process is hampered by those few, like today’s defendants, who wish to defraud and siphon relief and disaster funds away from those who are most at need. The FBI, along with its law enforcement partners, will continue to investigate and bring to justice those who defraud the government for their own personal gain,” he said.
A federal jury in October found Truss, Davis and Carroway guilty of conspiracy to commit wire and mail fraud between August 2010 and December 2011 for filing false claims with BP Gulf Coast fund. Evidence at trial showed the oil spill fund paid almost $2 million on the fraudulent claims. The jury also convicted the trio of aggravated identity theft in carrying out the scheme.
The jury further found Truss guilty on 31 counts of wire fraud for submitting, or causing to be submitted, false claims to the GCCF, and on one count of mail fraud related to a check received as part of the scheme. It convicted Davis on three wire fraud counts.
The jury convicted Truss and Davis of laundering money stolen from the GCCF. It found Carroway guilty on five wire fraud counts and on two counts of obstructing justice for telling recruits in the scheme to lie to prosecutors.
BP owned the Macondo Oil Well where the Deepwater Horizon drilling rig exploded in 2010. The company established the GCCF in June 2010 to administer and settle claims made against it by individuals or business for losses, damages or other costs resulting from the massive oil spill.
Truss, Davis and Carroway originally were charged along with two other people, Truss' son, Robert Truss III, 26, of Houston, and Cedric Dion Ravizee, 37, of Birmingham. Robert Truss pleaded guilty last year to conspiracy, money laundering, wire fraud and mail fraud, and Ravizee pleaded guilty to one count of wire fraud.
In total, 20 people have been convicted in the Northern District of Alabama on charges related to the scheme to defraud the GCCF. Marcella and Robert Truss, Davis and Carroway recruited the 16 other defendants to provide personal information that was used to file false claims. Those recruited then received claim payments and provided a portion of the payments to the ringleaders. The 17 remaining defendants in the fraud are to be sentenced this week.
All of the fraudulent claims submitted to the GCCF falsely stated that the individual had worked for a company called Built by Request and had lost wages because of the Deepwater Horizon incident. Marcella Truss owned BBR and dissolved the company after the scheme played out.Connecticut Man Pleads Guilty to Tobacco TraffickingRead the Press Release
BOSTON – A Connecticut man pleaded guilty in U.S. District Court in Springfield today in a conspiracy to traffic in contraband tobacco.
Jugjeev Kharbanda, 29, of Seymour, Conn. pleaded guilty to conspiracy and three counts of contraband smokeless tobacco trafficking. In October 2014, Kharbanda and two others were charged in an Information. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 25, 2015.
Kharbanda, two co-defendants, and others, worked together to avoid paying large amounts of tobacco excise taxes on smokeless tobacco and cigars sold from warehouses in Springfield, Mass. and Danbury, Conn. Co-defendant Jaspal Singh pleaded guilty in October 2014 and is scheduled to be sentenced on April 21, 2015.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Veronica M. Lei of Ortiz’s Springfield Branch Unit.
Columbus Man and Two Women Charged with Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced the unsealing of a 5 count Indictment charging Mauro Torres-Castro age 38, Alicia Martinez age 23, and Ashley O'Flaherty age 23, all of Columbus Nebraska, with various narcotics offenses including conspiracy to distribute methamphetamine. Torres-Castro and Martinez are also charged with possession of a firearm in connection with the narcotic offenses. The maximum possible penalty for the offenses includes not less than 10 years and up to life imprisonment, a fine of up to $10 million, a term of supervised release of at least 5 years, and a $100 special assessment. The charges stem from an investigation where law enforcement seized quantities of marijuana and cocaine, over 1 pound of methamphetamine, 3 handguns, 2 shotguns, and over $32,000 in U. S. Currency.This case was the result of an investigation by the Nebraska State Patrol, Columbus Police Department, Schuyler Police Department, and the Colfax County Sheriffs’ Office
Clarksburg woman convicted of selling heroin near local playgroundRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alicia Radel, 31, of Clarksburg, West Virginia, was convicted in federal court today for selling heroin near a local playground, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Radel sold heroin in September 2014 near the Clarksburg City Park – North Side Playground.
Radel pled guilty today to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location.” She faces between one and forty years in prison and a fine of up to $2,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan is prosecuting the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Chinese National Charged with Access Device Fraud and Aggravated Identity TheftRead the Press Release
Follow @SDILNewsShu K. Chen, 38, from the People’s Republic of China, was charged by Indictment with Conspiracy to Commit Wire Fraud, two counts of Access Device Fraud, and two counts of Aggravated Identity Theft, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Chen faces up to thirty years in prison for the conspiracy and access device fraud charges and a consecutive two year sentence for each of the Aggravated Identity Theft charges, plus a $250,000 fine, up to three years supervised release, and restitution.
Chen was originally arrested by the Collinsville Police Department on December 12, 2014, at the Walmart store in Collinsville, Illinois, for using counterfeit credit cards to fraudulently purchase gift cards. Further investigation revealed that he had also used counterfeit credit cards the day before at the same Walmart and that he was traveling around the area with another individual. Additional information provided to the court in a Criminal Complaint indicated that Chen, with the assistance of another individual, had used counterfeit credit cards to make purchases at retail locations in other jurisdictions. The credit cards were encoded on the magnetic strip with legitimate credit card account numbers of area residents who were victimized. Chen provided a false New Jersey driver’s license at the time of the arrest in the name of Chang Zhang, which was the name embossed on the front of the counterfeit credit cards.
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 Secret Service, the Internal Revenue Service/Criminal Investigation and the Collinsville Police Department with the assistance of several other local police departments and the Madison County State’s Attorney’s Office.
The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
Broward County Resident Pleads Guilty in Identity Theft Schemes Involving Fraudulent Income Tax Refunds and Social Security BenefitsRead the Press Release
Broward County resident pled guilty in identity theft schemes involving fraudulent income tax refunds and Social Security benefits.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Sheldon Mozie, II, 23, pled guilty to one count of wire fraud and one count of aggravated identity theft.
According to court documents, law enforcement executed a search warrant at Mozie’s residence and seized papers/notes containing at least 182 victims’ personal identifying information (PII), a thumb drive containing at least 99 additional victims, Mozie’s computer, and debit cards. Computer forensic investigators determined that Mozie’s computer contained the PII of many of the same victims’ that were found in the notes/papers in Mozie’s bedroom, in addition to other victims’ PII. Mozie filed 49 federal income tax returns for tax year 2013 using the PII of many of the victims that were found on the papers/notes in his bedroom. Between February 10, 2014 and May 6, 2014, for the tax year 2013, Mozie claimed $208,559 on the fraudulent tax returns.
Mozie also utilized the stolen PII to divert Social Security benefit payments to himself that belonged to additional identity theft victims. To accomplish this scheme, Mozie logged onto the Social Security Administration website, “my Social Security,” with the victims’ names, dates of birth and Social Security numbers to open online accounts in those victims’ identities. Once the online accounts were opened, Mozie was able to divert the Social Security benefit payments from the victims to himself by having the funds deposited onto prepaid debit cards (mostly Green Dot cards) or by directly depositing the funds into his personal bank account. Between September 2013 and May 2014, Mozie diverted approximately $25,027 in Social Security benefits to himself.
Sentencing is scheduled for April 6, 2015, at 1:15 p.m. At sentencing, Mozie faces up to twenty years in prison for the wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, SSA-OIG, and BSO. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Brooklyn Felon Who Acquired Handguns in Vermont Gets Five YearsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Devon Holmes, a 26 year-old New York City man, was sentenced today to five years imprisonment by Judge William K. Sessions III in federal district court in Burlington. Holmes pleaded guilty to causing a young local woman to buy two handguns for him from a South Burlington, Vermont, firearms dealer in 2013.
With three felony convictions in New York City, federal law barred Holmes from buying or possessing firearms. He circumvented that law by arranging for the female to buy them for him. A few days after acquiring the handguns in Vermont, Holmes had the firearms in Brooklyn, New York, when officers with the New York City Police Department made a routine traffic stop.
The Bureau of Alcohol, Tobacco, Firearms & Explosives traced the two handguns recovered from Holmes in Brooklyn to the purchase in Vermont. After ATF conducted multiple interviews and utilized other investigative techniques, a two-count indictment issued, charging Holmes with possessing the guns as a felon, and arranging the “straw purchase.” He pleaded guilty to the latter offense.
The United States Attorney’s Office thanked ATF and the New York City Police Department for their fine work. Holmes was represented by Assistant Federal Public Defender David McColgin. The United States was represented by Assistant United States Attorney Bill Darrow.
Bossier City Woman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City woman pleaded guilty to filing false tax returns.
Susan Santoro, 40, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of making or subscribing a false tax return. According to evidence presented at the guilty plea, Santoro, who was the general manager of Top Dollar Pawn in Bossier City from 2009 to 2011, embezzled more than $300,000 from the company. She embezzled the money by falsifying records, which were under her sole authority to review and reconcile. A review of her personal bank accounts revealed numerous large, unexplained cash deposits that far exceeded her income from Top Dollar Pawn. The IRS considers the money, which Santoro did not report on her tax returns, as income. This resulted in Santoro owing additional taxes in excess of $88,000.
Santoro faces up to three years in prison, three years supervised release, a $250,000 fine, and restitution. A sentencing date of May 11, 2015 was set.
The FBI and IRS conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Cytheria D. Jernigan are prosecuting the case.
Bismarck Man Sentenced for Bank RobberyRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on January 26, 2015, Sean Michael Nichols, 38, of Bismarck, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of bank robbery. Nichols pleaded guilty to the charge on September 23, 2014.
Judge Hovland sentenced Nichols to 12 years and seven months in federal prison, to be followed by three years of supervised release. Nichols was ordered to pay a $100 special assessment to the Crime Victim’s Fund and restitution to Dakota Community Bank.
On May 6, 2014, at approximately 11:30 a.m., Nichols entered Dakota Community Bank, 1727 State St., Bismarck, North Dakota and demanded money and left the bank with money. No weapon was possessed or used. Police were able to develop Nichols as a suspect based upon witness information who saw an individual pass through a yard in the area and informed law enforcement officials that the person got into a certain type of vehicle. Nichols was located and arrested later that day and was found to be in possession of a portion of the stolen money.
The case was investigated by the Bismarck Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney David Hagler prosecuted the case.
Attorney General, Manhattan U.S. Attorney, and FBI Announce Charges Against Russian Spy Ring in New York CityRead the Press Release
Evgeny Buryakov, a/k/a “Zhenya,” Worked Under “Non-Official Cover” as a Bank Employee in Manhattan
Eric Holder, the Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York, John S. Carlin, Assistant Attorney General for National Security, and Randall C. Coleman, the Assistant Director of the Federal Bureau of Investigation (“FBI”) for the Counterintelligence Division, announced charges today against EVGENY BURYAKOV, a/k/a “Zhenya,” IGOR SPORYSHEV, and VICTOR PODOBNYY in connection with BURYAKOV’s service as a covert intelligence agent on behalf of the Russian Federation (“Russia”) in New York City, without notifying the United States Attorney General of BURYAKOV’s status as an agent of Russia, as required by federal law. BURYAKOV was placed under arrest earlier today in Bronx, New York, and is scheduled to appear before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court later today. SPORYSHEV and PODOBNYY no longer reside in the United States and have not been arrested. By virtue of their prior positions in the United States on behalf of Russia, both of them were protected by diplomatic immunity from arrest and prosecution while in the United States.
Attorney General Eric Holder said: “These charges demonstrate our firm commitment to combating attempts by covert agents to illegally gather intelligence and recruit spies within the United States. We will use every tool at our disposal to identify and hold accountable foreign agents operating inside this country – no matter how deep their cover. I want to thank the dedicated men and women of the FBI’s Counterintelligence Division and New York Field Office, the National Security Division’s Counterespionage Section, and the U.S. Attorney’s Office for the Southern District of New York for their skilled handling of this complex and highly sensitive matter.”
U.S. Attorney Preet Bharara said: “Following our previous prosecution with the FBI of Russian spies, who were expelled from the United States in 2010 when their plan to infiltrate upper levels of U.S. business and government was revealed, the arrest of Evgeny Buryakov and the charges against him and his co-defendants make clear that – more than two decades after the presumptive end of the Cold War – Russian spies continue to seek to operate in our midst under cover of secrecy. Indeed, the presence of a Russian banker in New York would in itself hardly draw attention today, which is why these alleged spies may have thought Buryakov would blend in. What they could not do without drawing the attention of the FBI was engage in espionage. New York City may be more hospitable to Russian businessmen than during the Cold War, but my Office and the FBI remain vigilant to the illegal intelligence-gathering activities of other nations.”
Assistant Attorney General John P. Carlin said: “The attempt by foreign nations to illegally gather economic and other intelligence information in the United States through covert agents is a direct threat to the national security of the United States, and it exemplifies why counterespionage is a top priority of the National Security Division. I want to thank the FBI’s New York Field Office and Counterintelligence Division as well as the U.S. Attorney’s Office for the Southern District of New York for their continued effort to conduct these highly complex and sensitive counterespionage investigations and prosecutions, and for their continued close partnership with the National Security Division and the Counterespionage Section.”
FBI Assistant Director Randall Coleman said: “This investigation is one of many that highlight the determined and prolific efforts by foreign governments to target Americans for the purposes of collecting intelligence and stealing secrets. This case is especially egregious as it demonstrates the actions of a foreign intelligence service to integrate a covert intelligence agent into American society under the cover of an employee in the financial sector. Espionage is as pervasivetoday as it has even been, and FBI counterintelligence teams will continue to aggressively investigate and expose hostile foreign intelligence activities conducted on U.S. soil.”
According to the Complaint unsealed in Manhattan federal court today:
BURYAKOV worked in the United States as an agent of Russia’s foreign intelligence agency, known as the “SVR.” BURYAKOV operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank. SVR agents operating under such non-official cover – sometimes referred to as “NOCs” – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the United States Attorney General. Department of Justice records indicate that BURYAKOV has never notified the United States Attorney General that he is, in fact, an agent of Russia.
SPORYSHEV and PODOBNYY are also SVR agents who worked in the United States to gather intelligence on behalf of Russia by posing as official representatives of Russia. From November 22, 2010, to November 21, 2014, SPORYSHEV served as a Trade Representative of the Russian Federation in New York. From December 13, 2012, to September 12, 2013, PODOBNYY served as an Attaché to the Permanent Mission of the Russian Federation to the United Nations. Based on their official government postings on behalf of Russia, SPORYSHEV and PODOBNYY are exempt from notifying the United States Attorney General of the true nature of their work. However, that exemption does not permit them to conspire with, or aid and abet, BURYAKOV in his work as an unregistered agent of Russia operating within the United States.
The intelligence-gathering efforts of SPORYSHEV and PODOBNYY included, among other things, (i) attempting to recruit New York City residents as intelligence sources for Russia; (ii) tasking BURYAKOV to gather intelligence; and (iii) transmitting intelligence reports prepared by BURYAKOV back to SVR headquarters in Moscow. Specifically, during the course of the charged offenses, SPORYSHEV was responsible for relaying assignments from the SVR to BURYAKOV, and SPORYSHEV and PODOBNYY were responsible for analyzing and reporting back to the SVR about the fruits of BURYAKOV’s intelligence-gathering efforts.
The directives from the SVR to BURYAKOV, SPORYSHEV, and PODOBNYY, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential United States sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, BURYAKOV, SPORYSHEV, and PODOBNYY regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of a bank in Manhattan (BURYAKOV), a Trade Representative of the Russian Federation in New York (SPORYSHEV), and an Attaché to the Permanent Mission of the Russian Federation to the United Nations (PODOBNYY). In particular, the defendants worked to safeguard BURYAKOV’s work as a “NOC.”
SPORYSHEV and PODOBNYY acted as covert intermediaries for BURYAKOV to communicate with the SVR on intelligence-related matters. As an agent posing as someone without any official ties to the Russian government or the SVR, BURYAKOV was unable to access the SVR New York Office – which is located within an office maintained by Russia in New York, New York – without potentially alerting others to his association with the SVR. As such, BURYAKOV required the assistance of other SVR agents, like SPORYSHEV and PODOBNYY, to exchange communications and information with the SVR through the communications systems located in the SVR New York Office.
From as early as March 2012 through as recently as mid-September 2014, the FBI has conducted physical or electronic surveillance of BURYAKOV and SPORYSHEV engaging in over four dozen brief meetings, several of which involved BURYAKOV passing a bag, magazine, or slip of paper to SPORYSHEV. These meetings typically took place outdoors, where the risk of effective surveillance was reduced relative to an indoor location.
These meetings were nearly always preceded by a short telephone call between BURYAKOV and SPORYSHEV during which one of the men typically told the other that he had an item to give to him. Typically, during these telephone calls, which were intercepted by the FBI, the item in question was referred to as some non-specific “ticket,” “book,” “list,” or other ordinary item (e.g., “umbrella” or “hat”).
Subsequently, at each meeting surveilled by the FBI, BURYAKOV and SPORYSHEV met and sometimes exchanged documents or other small items. Notably, despite discussing on approximately one dozen occasions the need to meet to transfer “tickets,” BURYAKOV and SPORYSHEV, were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert. In fact, BURYAKOV and SPORYSHEV used this coded language to signal that they needed to meet, and then met to exchange intelligence information.
Attempts by Sporyshev and Podobnyy to Recruit Intelligence Sources in New York City
In numerous recorded communications, SPORYSHEV and PODOBNYY discussed their attempts to recruit United States residents, including several individuals employed by major companies, and several young women with ties to a major university located in New York, New York (“University-1”), as intelligence sources for the SVR. On these recordings, the defendants discussed the potential value of these sources, and identified particular sources by use of a “source name,” which appears to be a coded name. In addition, during these recordings, SPORYSHEV and PODOBNYY discussed the efforts of other SVR agents to recruit a number of other Russian-origin individuals associated with University-1 as intelligence sources.
For example, SPORYSHEV and PODOBNYY discussed PODOBNYY’s efforts to recruit a male working as a consultant in New York City as an intelligence source. During this conversation, PODOBNYY explained his source recruitment method, which included cheating, promising favors, and then discarding the intelligence source once the relevant information was obtained by the SVR: “This is intelligence method to cheat. . . . You promise a favor for a favor. You get the documents from him and tell him to go [expletive] himself.”
In other recorded conversations, SPORYSHEV and PODOBNYY made clear that they worked for the SVR. For example, on January 31, 2013, SPORYSHEV and another SVR agent not charged in the Complaint (“CC-1”) had a discussion inside the SVR New York Office about their contracts with the SVR. SPORYSHEV stated that, “Everyone has a five-year contract,” and explained, in response to CC-1’s question about reimbursement for the travel of SVR agents’ family members, that “travel for military personnel and their families on authorized home leave is paid, and in our, in our SVR, this, the payment for getting to and from the duty station.” In addition, on April 25, 2013, SPORYSHEV and PODOBNYY discussed the use of nontraditional cover for Russian intelligence officers and, in particular, the Illegals program that ended with the arrest of 10 “deep cover” SVR agents in July 2010.
Buryakov’s Intelligence Taskings
SPORYSHEV was responsible for relaying intelligence assignments from the SVR to BURYAKOV. The FBI obtained electronic recordings of several conversations relating to such intelligence directives being communicated to and carried out by BURYAKOV in his position as an SVR agent acting under non-official cover. For example, on May 21, 2013, SPORYSHEV called BURYAKOV to ask for BURYAKOV’s help in formulating questions to be used for intelligence gathering purposes by others associated with a leading Russian state-owned news organization (the “News Organization”). BURYAKOV responded by supplying SPORYSHEV with a particular line of questioning about the New York Stock Exchange for use by the News Organization.
Buryakov’s Receipt of Purported Official United States Government Documents
In the summer of 2014, BURYAKOV met numerous times with a confidential source working for the FBI (“CS-1”). CS-1 posed as the representative of a wealthy investor looking to develop casinos in Russia. During the course of these meetings, and consistent with his interests as a Russian intelligence agent, BURYAKOV demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, BURYAKOV also accepted documents that CS-1 claimed he had obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about United States sanctions against Russia.
BURYAKOV, 39, SPORYSHEV, 40, and PODOBNYY, 27, are charged in two counts. The first count charges the defendants with participating in a conspiracy for BURYAKOV to act in the United States as an agent of a foreign government without first notifying the Attorney General, and carries a maximum penalty of five years in prison. The second count charges BURYAKOV with acting in the United States as an agent of a foreign government without first notifying the Attorney General, and charges SPORYSHEV and PODOBYNYY with aiding and abetting that offense. The second count carries a maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Bharara praised the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Assistant U.S. Attorneys Adam Fee, Ian McGinley, and Anna M. Skotko of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, and Senior Trial Attorney Heather Schmidt of the Counterespionage Section of the Department of Justice’s National Security Division.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v. Evgeny Buryakov, et al Complaint
Attorney General Holder Announces Charges Against Russian Spy Ring in New York CityRead the Press Release
Spy Ring Attempted to Collect Economic Intelligence and Recruit New York City Residents as Intelligence Sources
Evgeny Buryakov, aka “Zhenya,” Worked Under “Non-Official Cover” as a Bank Employee in Manhattan
Attorney General Eric Holder, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division announced charges today against Evgeny Buryakov, aka “Zhenya,” Igor Sporyshev and Victor Podobnyy in connection with Buryakov’s service as a covert intelligence agent on behalf of the Russian Federation (Russia) in New York City, without notifying the U.S. Attorney General of Buryakov’s status as an agent of Russia, as required by federal law. Buryakov was placed under arrest earlier today in Bronx, New York, and is scheduled to appear before U.S. Magistrate Judge Sarah Netburn in federal court in Manhattan later today. Sporyshev and Podobnyy no longer reside in the United States and have not been arrested. By virtue of their prior positions in the United States on behalf of Russia, both of them were protected by diplomatic immunity from arrest and prosecution while in the United States.
“These charges demonstrate our firm commitment to combating attempts by covert agents to illegally gather intelligence and recruit spies within the United States,” said Attorney General Holder. “We will use every tool at our disposal to identify and hold accountable foreign agents operating inside this country – no matter how deep their cover. I want to thank the dedicated men and women of the FBI’s Counterintelligence Division and New York Field Office, the National Security Division’s Counterespionage Section and the U.S. Attorney’s Office for the Southern District of New York for their skilled handling of this complex and highly sensitive matter.”
“The attempt by foreign nations to illegally gather economic and other intelligence information in the United States through covert agents is a direct threat to the national security of the United States, and it exemplifies why counterespionage is a top priority of the National Security Division,” said Assistant Attorney General Carlin. “I want to thank the FBI’s New York Field Office and Counterintelligence Division as well as the U.S. Attorney’s Office for the Southern District of New York for their continued effort to conduct these highly complex and sensitive counterespionage investigations and prosecutions, and for their continued close partnership with the National Security Division and the Counterespionage Section.”
“Following our previous prosecution with the FBI of Russian spies, who were expelled from the United States in 2010 when their plan to infiltrate upper levels of U.S. business and government was revealed, the arrest of Evgeny Buryakov and the charges against him and his co-defendants make clear that – more than two decades after the presumptive end of the Cold War – Russian spies continue to seek to operate in our midst under cover of secrecy,” said U.S. Attorney Bharara. “Indeed, the presence of a Russian banker in New York would in itself hardly draw attention today, which is why these alleged spies may have thought Buryakov would blend in. What they could not do without drawing the attention of the FBI was engage in espionage. New York City may be more hospitable to Russian businessmen than during the Cold War, but my office and the FBI remain vigilant to the illegal intelligence-gathering activities of other nations.”
“This investigation is one of many that highlight the determined and prolific efforts by foreign governments to target Americans for the purposes of collecting intelligence and stealing secrets,” Assistant Director Coleman. “This case is especially egregious as it demonstrates the actions of a foreign intelligence service to integrate a covert intelligence agent into American society under the cover of an employee in the financial sector. Espionage is as pervasive today as it has even been, and FBI counterintelligence teams will continue to aggressively investigate and expose hostile foreign intelligence activities conducted on U.S. soil.”
According to the complaint unsealed in Manhattan federal court today:
Buryakov worked in the United States as an agent of Russia’s foreign intelligence agency, known as the SVR. Buryakov operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank. SVR agents operating under such non-official cover – sometimes referred to as NOCs – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the U.S. Attorney General. Department of Justice records indicate that Buryakov has never notified the U.S. Attorney General that he is, in fact, an agent of Russia.
Sporyshev and Podobnyy are also SVR agents who worked in the United States to gather intelligence on behalf of Russia by posing as official representatives of Russia. From Nov. 22, 2010, to Nov. 21, 2014, Sporyshev served as a trade representative of the Russian Federation in New York. From Dec. 13, 2012, to Sept. 12, 2013, Podobnyy served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. Based on their official government postings on behalf of Russia, Sporyshev and Podobnyy are exempt from notifying the U.S. Attorney General of the true nature of their work. However, that exemption does not permit them to conspire with, or aid and abet, Buryakov in his work as an unregistered agent of Russia operating within the United States.
The intelligence-gathering efforts of Sporyshev and Podobnyy included, among other things, attempting to recruit New York City residents as intelligence sources for Russia; tasking Buryakov to gather intelligence; and transmitting intelligence reports prepared by Buryakov back to SVR headquarters in Moscow. Specifically, during the course of the charged offenses, Sporyshev was responsible for relaying assignments from the SVR to Buryakov, and Sporyshev and Podobnyy were responsible for analyzing and reporting back to the SVR about the fruits of Buryakov’s intelligence-gathering efforts.
The directives from the SVR to Buryakov, Sporyshev and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential U.S. sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, Buryakov, Sporyshev and Podobnyy regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of a bank in Manhattan (Buryakov), a trade representative of the Russian Federation in New York (Sporyshev) and an attaché to the Permanent Mission of the Russian Federation to the United Nations (Podobnyy). In particular, the defendants worked to safeguard Buryakov’s work as a NOC.
Sporyshev and Podobnyy acted as covert intermediaries for Buryakov to communicate with the SVR on intelligence-related matters. As an agent posing as someone without any official ties to the Russian government or the SVR, Buryakov was unable to access the SVR New York Office – which is located within an office maintained by Russia in New York City – without potentially alerting others to his association with the SVR. As such, Buryakov required the assistance of other SVR agents, like Sporyshev and Podobnyy, to exchange communications and information with the SVR through the communications systems located in the SVR New York Office.
From as early as March 2012 through as recently as mid-September 2014, the FBI has conducted physical or electronic surveillance of Buryakov and Sporyshev engaging in over 48 brief meetings, several of which involved Buryakov passing a bag, magazine or slip of paper to Sporyshev. These meetings typically took place outdoors, where the risk of effective surveillance was reduced relative to an indoor location.
These meetings were nearly always preceded by a short telephone call between Buryakov and Sporyshev, during which one of the men typically told the other that he had an item to give to him. Typically, during these telephone calls, which were intercepted by the FBI, the item in question was referred to as some non-specific ticket, book, list or other ordinary item (e.g., umbrella or hat).
Subsequently, at each meeting surveilled by the FBI, Buryakov and Sporyshev met and sometimes exchanged documents or other small items. Notably, despite discussing on approximately 12 occasions the need to meet to transfer “tickets,” Buryakov and Sporyshev, were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert. In fact, Buryakov and Sporyshev used this coded language to signal that they needed to meet, and then met to exchange intelligence information.
Attempts by Sporyshev and Podobnyy to Recruit Intelligence Sources in New York City
In numerous recorded communications, Sporyshev and Podobnyy discussed their attempts to recruit U.S. residents, including several individuals employed by major companies, and several young women with ties to a major university located in New York City (University-1), as intelligence sources for the SVR. On these recordings, the defendants discussed the potential value of these sources and identified particular sources by use of a “source name,” which appears to be a coded name. In addition, during these recordings, Sporyshev and Podobnyy discussed the efforts of other SVR agents to recruit a number of other Russian-origin individuals associated with University-1 as intelligence sources.
For example, Sporyshev and Podobnyy discussed Podobnyy’s efforts to recruit a male working as a consultant in New York City as an intelligence source. During this conversation, Podobnyy explained his source recruitment method, which included cheating, promising favors and then discarding the intelligence source once the relevant information was obtained by the SVR: “This is intelligence method to cheat. . . . You promise a favor for a favor. You get the documents from him and tell him to go [expletive] himself.”
In other recorded conversations, Sporyshev and Podobnyy made clear that they worked for the SVR. For example, on Jan. 31, 2013, Sporyshev and another SVR agent not charged in the complaint (CC-1) had a discussion inside the SVR New York Office about their contracts with the SVR. Sporyshev stated that, “Everyone has a five-year contract,” and explained, in response to CC-1’s question about reimbursement for the travel of SVR agents’ family members, that “travel for military personnel and their families on authorized home leave is paid, and in our, in our SVR, this, the payment for getting to and from the duty station.” In addition, on April 25, 2013, Sporyshev and Podobnyy discussed the use of nontraditional cover for Russian intelligence officers and, in particular, the Illegals program that ended with the arrest of 10 “deep cover” SVR agents in July 2010.
Buryakov’s Intelligence Taskings
Sporyshev was responsible for relaying intelligence assignments from the SVR to Buryakov. The FBI obtained electronic recordings of several conversations relating to such intelligence directives being communicated to and carried out by Buryakov in his position as an SVR agent acting under non-official cover. For example, on May 21, 2013, Sporyshev called Buryakov to ask for Buryakov’s help in formulating questions to be used for intelligence gathering purposes by others associated with a leading Russian state-owned news organization (the News Organization). Buryakov responded by supplying Sporyshev with a particular line of questioning about the New York Stock Exchange for use by the News Organization.
Buryakov’s Receipt of Purported Official U.S. Government Documents
In the summer of 2014, Buryakov met numerous times with a confidential source working for the FBI (CS-1). CS-1 posed as the representative of a wealthy investor looking to develop casinos in Russia. During the course of these meetings, and consistent with his interests as a Russian intelligence agent, Buryakov demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, Buryakov also accepted documents that CS-1 claimed he had obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about U.S. sanctions against Russia.
* * *
Buryakov, 39, Sporyshev, 40, and Podobnyy, 27, are charged on two counts. The first count charges the defendants with participating in a conspiracy for Buryakov to act in the United States as an agent of a foreign government without first notifying the Attorney General, and carries a statutory maximum penalty of five years in prison. The second count charges Buryakov with acting in the United States as an agent of a foreign government without first notifying the Attorney General, and charges Sporyshev and Podobnyy with aiding and abetting that offense. The second count carries a statutory maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The Attorney General is grateful for the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterespionage Section and Assistant U.S. Attorneys Adam Fee, Ian McGinley and Anna M. Skotko for the Southern District of New York’s Terrorism and International Narcotics Unit.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Buryakov, et al Complaint
Arizona Man Pleads Guilty to Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – David Mendez Bojorquez, 59, of Phoenix, Ariz., pleaded guilty this morning in federal court to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Mendez Bojorquez was arrested on Dec. 8, 2014, at the Greyhound Bus Station in Albuquerque, N.M., after DEA agents and task force officers executed a federal search warrant on his suitcase and found a package containing more than a gross kilogram of heroin. Mendez Bojorquez subsequently was indicted on Dec. 16, 2014, and charged with possession of a mixture and substance containing a detectable amount of heroin.
During today’s change of plea hearing, Mendez Bojorquez pled guilty to a felony information charging him with possession with intent to distribute a mixture and substance containing a detectible amount of heroin. In his plea agreement, Mendez Bojorquez admitted that he had heroin in his suitcase when he was encountered by law enforcement officers at the Greyhound Bus Station on Dec. 7, 2014. He further admitted that the officers found and seized the heroin after obtaining a search warrant for his suitcase.
Mendez Bojorquez will be in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum sentence of 20 years in federal prison.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. The case is being prosecuted by Assistant U.S. Attorney David Walsh.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Anderson County Man Indicted on Federal Income Tax ChargesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old Palestine, Texas man has been charged with federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jefferson Kincade appeared before U.S. Magistrate Judge K. Nicole Mitchell today and was released on an unsecured bond. Kincade was indicted on Jan. 21, 2015, and charged with 31 counts of preparing income tax returns with false statements in them, six counts of theft of government money, and six counts of aggravated identity theft.
According to information presented in court, Kincade prepared tax returns for individuals at a tax preparation business, EZ Tax, in Palestine, Texas. Kincade is alleged to have devised a scheme to prepare false tax returns, steal clients' refunds, and use the clients' and other individuals' identities to accomplish the theft. The indictment alleges that the goal of Kincade's false statements and representations in the tax returns that he submitted was to increase the amount of tax refunds to which the taxpayer would be entitled. All of these false statements and representations were about material matters, including such matters as filing status, dependents, wages, farm losses, business losses, withholding, education credits, distribution codes on retirement distributions, and itemized deductions. The indictment also alleges that Kincade was able to intercept the government tax refunds for his own benefit by printing the refund checks, not giving them to his clients, and then cashing them with the assistance of two individuals who were not associated with EZ Tax. This process involved Kincade's delivering refund checks along with his clients' identification information to an acquaintance who was also a client. Kincade's acquaintance would then deliver the checks to a third person, who owned a check cashing business located in Tyler, Texas. This third individual would cash the checks and give the cash to Kincade's acquaintance, and the acquaintance would deliver the cash to Kincade, who would keep the money.
If convicted, Kincade faces up to three years in federal prison for each of the 31 counts of preparing false tax returns, up to 10 years in federal prison for each of the six counts of theft of government money, and up to two years in federal prison for each of the six counts of aggravated identity theft.
Kincade was arrested by Texas Department of Public Safety. This case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Tom Gibson.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Anchorage Man Sentenced to 17.5 Years Imprisonment for Sexually Exploiting ChildrenRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage, Alaska man was sentenced in Federal Court in Anchorage on two counts of child sexual exploitation crimes. Kevin Callander was convicted of producing child pornography depicting a 10 year old girl. Callander’s victimization of the child began on July 10, 2012, while on a family vacation in Georgia, and continued on July 17, 2012, in Florida. Callander produced videos on those days using his iPhone, and then emailed them in interstate commerce.
Callander, 45, was sentenced January 22, 2015, by United States District Court Judge Sharon L. Gleason, to 17.5 years on each of the two convictions. Those sentences will run concurrently to each other, and to a separate 12 year prison term imposed by the State of Alaska for Sexual Abuse of a Minor. Callander’s prison terms will be followed by federal supervised release for the rest of his life.
U.S. Attorney Karen Loeffler stated, “The lengthy sentence in this case reflects the victimization perpetrated on innocent victims by Callander. Working with our law enforcement partners to protect children is a top priority and a constant mission.”
According to Assistant U.S. Attorney Audrey J. Renschen, Callander was under investigation for trafficking in child pornography by the Anchorage Police Department (APD) when they executed a search warrant at Callander’s home. APD then contacted U.S. Postal Inspection Service (USPIS) Agents when the videos that Callander produced were found.
Ms. Loeffler commends the USPIS and APD, members of the Alaska Internet Crimes Against Children Task Force, for the investigation of this case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative (PSC) which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Alien Smuggler Who Assaulted Border Patrol Agent Heads to PrisonRead the Press Release
LAREDO, Texas – Jose Luis Zavala-Rodriguez, 23, an undocumented Mexican alien, has been ordered to federal prison for assaulting a Border Patrol agent and transporting undocumented aliens, announced U.S. Attorney Kenneth Magidson. Zavala-Rodriguez was found guilty on four counts relating to assaulting a federal agent and alien transporting offenses in federal court on July 25, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo handed Zavala-Rodriguez a total of 80 months in federal prison. At the hearing, evidence and testimony from the jury trial was discussed including the agent’s injuries and fear during the attack orchestrated by the defendant. The court also heard about injuries to another alien and the testimony of a minor who identified Zavala-Rodriguez as the instigator of the assault on the agent and attempt to remove the agent’s handgun and TASER. In handing down the sentence, Judge Marmolejo noted the defendant’s behavior could have led to the serious injury or death of the Border Patrol agent or any of the aliens. The defendant objected to the lengthy sentence, but the court noted that he should not have attacked an armed Border Patrol agent. As an illegal alien, Zavala-Rodriguez is expected to face deportation proceedings following his release from prison.
On Oct, 23, 2013, at approximately 2:00am, a Border Patrol (BP) agent was pursuing a large group of undocumented aliens through large underground drainage tunnels. These tunnels are generally used by aliens and their guides to move secretly and away from public view.
The agent made his way to the drainage tunnel’s opening and saw legs of several persons hiding behind trees next to a building. He approached the group and instructed them in English and Spanish to not move and sit down. One of these persons - Zavala-Rodriguez - put his hands in the air and walked towards the agent telling him not to worry, at which time the agent continued to command Zavala-Rodriguez to stop.
Zavala-Rodriguez then lunged at the agent and took him to the ground. Zavala-Rodriguez then yelled in Spanish “Todos peganle,” meaning “Everyone hit him.” On the ground, the agent was surrounded and hit and kicked simultaneously by several persons. Zavala-Rodriguez was able to remove the agent’s service issued Taser.
As the agent pushed himself up from the ground, he then felt someone trying to extract his duty weapon. The agent then discharged his pistol twice and the group scattered. Other agents arrived almost simultaneous to the second shot and arrested Zavala-Rodriguez as well as other undocumented aliens.
The agent was hospitalized and diagnosed with trauma to the neck and other injuries. Zavala-Rodriguez received medical attention for his injuries and was released from the hospital and into federal custody.
Zavala-Rodriguez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The matter was investigated by the FBI with the assistance of BP and the Laredo Police Department. Assistant United States Attorney Christopher Coker and Homero Ramirez prosecuted the case.
Alabama Agencies and Cities Receive over $21 Million from Justice Department for Crime Prevention and Victim ServicesRead the Press Release
Montgomery, Alabama - In 2014 the Department of Justice awarded $21,617,777.00 in grant money to Alabama agencies and cities in the Middle District of Alabama, announced U. S. Attorney George L. Beck, Jr.
The money is to be used for crime prevention and victim services in the form of state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice; to decrease the time necessary for DNA analysis; to aid in juvenile delinquent rehabilitation; and to provide a variety of victim services. The Alabama Department of Economic and Community Affairs (ADECA) Law Enforcement and Traffic Safety Division, the Alabama Criminal Justice Information Center, the Alabama Department of Forensic Sciences, and the Alabama Board of Pardons and Pardons received very large grants from the Department of Justice. However, several other agencies and cities also received grant funds from the Justice Department.
Municipalities receiving 2014 DOJ grant funding included:
• The City of Montgomery received $77,075.00 to be used for training and to purchase canines, canine vehicle inserts, Cellebrite equipment, and a low rise scissor lift and wheel balancer.
• The City of Dothan received $35,479.00 to purchase in-car video cameras, mounted lights, holsters, and flashlights.
• The City of Auburn was awarded $27,940.00 to purchase license plate readers, traffic radar units, body cameras, and digital video systems.
• The City of Phenix City received $20,462.00 to purchase an Automatic Fingerprint Identification System.
• The City of Enterprise received $11,771.00 for the purchase of tasers and accessories, and a digital in-car video system.
In addition to the cities above, fourteen agencies received grant funding as well. Those agencies include:
• The Alabama Department of Economic and Community Affairs (ADECA) Law Enforcement and Traffic Safety Division received nine grants totaling $13,930,417.00. This funding will be used for a variety of purposes including: enhancing crime victim’s services throughout the state; supporting drug and violent crime task forces; addressing violence against women; improving the juvenile justice system and reducing juvenile delinquency; providing substance abuse treatment in correctional and detention facilities; improving forensic and medical examiner services; and enhancing the safety of women incarcerated in correctional facilities.
• The Alabama Criminal Justice Information Center was awarded four grants totaling $1,940,629.00. This funding will be used increase the safety and security of citizens by improving background checks and the collection sex offender data.
• The Alabama Department of Forensic Sciences obtained $1,263,414.00 in grant funds. These funds will be used to update equipment used to process DNA samples which will allow such samples to be analyzed more effectively and efficiently.
• The Alabama Board of Pardons and Paroles received two grants totaling $1,057,176.00. These grants will be used for reentry and supervision programs that will seek to reduce recidivism.
• The Alabama Administrative Office of Courts received $509,112.00 in grant funding to implement the Alabama Family Drug Court Statewide System Reform project in an effort to serve families in the child welfare system affected by parental substance abuse disorders more effectively and improve child, parent, and family outcomes.
• The Alabama Department of Mental Health and Mental Retardation was awarded $499,185.00 to enhance information sharing between criminal justice and mental health/substance abuse agencies and providers.
• The Alabama Department of Corrections received $499,166.00 to enhance the safety of women incarcerated in correctional facilities.
• The Alabama Crime Victims Compensation Commission received $453,000.00 to enhance victim compensation payments to eligible crime victims.
• The Alabama Department of Public Health was awarded $400,000.00 to enhance prescription drug data collection in order to better address prescription drug diversion and abuse.
• The Alabama Department of Public Safety received $326,989.00 to maintain and expand its Internet Crimes Against Children program and improve the Task Force’s effectiveness in preventing, interdicting, investigating and prosecuting online crimes against children.
• The Alabama Office of Prosecution Services received two grants totaling $233.117.00. The largest grant will be used to improve programs that prosecute, register, monitor, and track sex offenders. A grant was also awarded for student loan repayment for eligible public defenders and prosecutors.
• The Alabama Coalition Against Rape was awarded $126,045.00 to provide services to victims of sexual assault and domestic violence.
• The Alabama Attorney General's Office received $125,000.00 to assist in solving cold cases using DNA analysis.
• The Alabama Coalition Against Domestic Violence was awarded $81,795.00 to provide services to victims of sexual assault and domestic violence.
“We must make sure our law enforcement officers and service providers have all the tools necessary to vigorously combat crime in this District,” stated U.S. Attorney George Beck. “These grants will allow law enforcement to purchase those tools necessary to protect the citizens as well as protect the law enforcement officers while fighting crime. I am proud that the Department of Justice chose to allocate grant money to these cities and agencies to prevent crime and provide enhanced services in our community.”
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761717 KC-Area Defendants Among 26 Indicted for $16 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 26 defendants have been indicted in a $16 million drug-trafficking conspiracy that involved smuggling large amounts of methamphetamine, cocaine and heroin from Mexico for distribution in the Kansas City, Mo., metropolitan area.
Operation Signed and Sealed was a two-year, multi-agency investigation into a drug-trafficking organization that sold over 700 pounds of methamphetamine, 250 kilograms of cocaine and multiple kilograms of heroin in the Kansas City metropolitan area, with an estimated total value of more than $16 million.
Jose Ramon Soto-Garcia, also known as “Monky,” “Mon,” and “Ramon Del Monte,” 27, Jesus Hernandez-Mujica, also known as “Chenton,” 32, Ricardo Hernandez-Mujica, also known as “Pollo,” 29, Maurio Belgrave, 31, Nefeg Isaac Aguilar-Valle, 27, Alejandro Salas, also known as “Oliver Echeverry-Flamenco” and “Panocha,” 30, Sergio Flores, 43, Sylvia Marron, 37, and Ivan Orion Rueda-Simental, 22, all of Kansas City, Mo.; Missael Guadalupe Soto-Vejar, also known as “Missa,” “Narizon,” and “Flaco,” 26, and Dennys Eliceo Sermeno-Campos, 27, both of Independence, Mo.; Aurelio Jimenez-Cimental, 31, Iriarte Tadeo-Soto, also known as “Tantan,” 24, Antonio Arroyo-Cardenas, also known as “Cholo,” 30, and Jose Gabriel Bernardo-Vasquez, 32, all of Kansas City, Kan.; Rosalia Avila, also known as “Rosalia Diaz” and “Rosalia Flores,” 27, of Overland Park, Kan.; Luis Miguel Lopez, also known as “Tito,” 29, of Shawnee, Kan.; Gilberto Castillo-Soto, 38, of Culiacan, Sinoloa, Mexico; Victor Manuel Castillo-Soto, 40, and Aurelia Castillo, 37, both of Van Nuys, Calif.; Jose Carlos Zazueta-Valenzuela, 26, Francisco Alvarado-Soto, 28, and Monica Soto-Garcia, 29, all of Sun Valley, Calif.; Frankie Eleazar Perez, 32, of Madera, Calif.; Oscar Alberto Lopez-Perez, 32, of Medellin, Colombia; and Myrna Nora Saenz, 33, address unknown, were charged in an 11-count indictment returned under seal by a federal grand jury on Dec. 18, 2014. That indictment was unsealed and made public following the arrests and initial court appearances of several defendants.
Jose Soto-Garcia, Jesus Hernandez-Mujica, Ricardo Hernandez-Mujica, Rueda-Simental, Soto-Vejar, Jimenez-Cimental, Tadeo-Soto, Arroyo-Cardenas, Gilberto Castillo-Soto, Victor Castillo-Soto, Zazueta-Valenzuela, Alvarado-Soto and Monica Soto-Garcia are all citizens of Mexico. Aguilar-Valle is a citizen of Honduras. Sermeno-Campos is a citizen of El Salvador.
The federal indictment alleges that all 26 defendants participated in a conspiracy to distribute 50 grams or more of methamphetamine, five kilograms or more of cocaine and one kilogram or more of heroin from June 2013 to June 2014.
According to the indictment, the drugs were transported from Mexico by Gilberto Castillo-Soto to California and then transported or shipped by his brother, Victor Castillo-Soto, and Zazueta-Valenzuela to Kansas City, Mo. Allegedly aiding in the California portion of the drug-trafficking operation were Monica Soto-Garcia (Zazueta-Valenzuela’s wife and Ramon Soto-Garcia’s sister), Aurelia Castillo (Victor Castillo-Soto’s wife) and Perez. In addition to transporting the drugs themselves, conspirators also paid couriers to deliver drugs to the Kansas City area.
The drugs arrived at the residences of co-conspirators, the indictment says, such as Aguilar-Valle, then were picked up by Ramon Soto-Garcia. Ramon Soto-Garcia, along with Missael Soto-Vejar, allegedly distributed the drugs to other members of the conspiracy, including Aurelio Jimenez-Cimental, brothers Jesus and Ricardo Hernandez-Mujica, Antonio Arroyo-Cardenas, Alejandro Salas, Dennys Sermeno-Campos, Jose Bernardo-Vasquez, Ivan Rueda-Simental and Iriarte Tadeo-Sosa. These individuals allegedly supplied drugs to their own customers. Because Ramon Soto-Garcia did not communicate well in English, the indictment says, he employed his girlfriend, Rosalia Avila, to help translate for him and also to transfer funds to pay for the narcotics.
The money from the drug sales was transferred back to California in a number of ways, according to the indictment, such as shipments in computer towers by Dennys Sermeno-Campos and the electronic transfer of funds by Rosalia Avila. Once in California, the indictment says, the money would be physically transported to Mexico by Francisco Alvarado-Soto.
For example, the indictment alleges that Dennys Sermeno-Campos attempted to ship $76,000 that had been wrapped in eight bundles in duct tape, carbon paper and dryer sheets and concealed within a hollowed-out computer tower from Raytown, Mo., to Sun Valley, Calif., on July 15, 2013. According to the indictment, federal agents also seized a total of approximately $180,000 that was similarly hidden in two computer towers on Sept. 10, 2013. They also seized $80,025 that was hidden inside a microwave oven on Sept. 17, 2013, and $70,000 that was hidden inside a CD player on Sept. 26, 2013.
The indictment also alleges that Aurelio Jimenez-Cimental arranged a meeting between an undercover law enforcement officer of the Jackson County Drug TaskForce and Oscar Lopez-Perez and Victor Castillo-Soto to discuss moving money to California. During that Oct. 4, 2013, meeting, Oscar Lopez-Perez and Victor Castillo-Soto allegedly attempted to give the undercover officer $350,000 to transport.
In addition to the drug-trafficking conspiracy, several defendants are also charged with participating in a money-laundering conspiracy. The indictment alleges that Jose Soto-Garcia, Gilberto Castillo-Soto, Victor Castillo-Soto, Jose Zazueta-Valenzuela, Missael Soto-Vejar, Oscar Lopez-Perez, Aurelio Jimenez-Cimental, Francisco Alvarado-Soto, Rosalia Avila, Dennys Sermeno-Campos and Aurelia Castillo participated in a conspiracy to conduct financial transactions that involved the proceeds of the unlawful drug-trafficking activity to promote the activity; these transactions allegedly were designed in whole or in part to conceal the nature, the location, the source, the ownership and the control of the proceeds.
In addition to the conspiracies, Jimenez-Cimental is charged with two counts of distributing cocaine, two counts of distributing 50 grams or more of methamphetamine and one count of distributing heroin. Aguilar-Valle and Salas are also charged with one count of possessing 50 grams or more of methamphetamine with the intent to distribute.
Hernandez-Mujica is also charged with one count of possessing 50 grams or more of methamphetamine with the intent to distribute and with one count of possessing a firearm in furtherance of a drug-trafficking crime.
Aguilar-Valle is also charged with one count of being an illegal alien in possession of a firearm. The indictment alleges that Aguilar-Valle was in possession of a Taurus .45-caliber pistol on June 18, 2014.
The federal indictment also contains a forfeiture allegation, which would require all 26 defendants to forfeit to the government $16,017,200, which represents the proceeds obtained as a result of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Jackson County Drug Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration and the Kansas City, Mo, Police Department.
13 Suspects Indicted in West Tennessee on Federal Drug Trafficking ViolationsRead the Press Release
Jackson, Tenn. –Edward L. Stanton III, United States Attorney for the Western District of Tennessee; A. Todd McCall, Special Agent in Charge of the Memphis Division of the FBI; Steve Isbell, Chief of Police for the Dyersburg Police Department; and Jeff Box, Sheriff of Dyer County, announced today the unsealing of an indictment charging 13 suspects with federal drug trafficking violations. The suspects were arrested early today during a round-up conducted by multiple federal (the FBI, DEA, ATF and U.S. Marshals Service), state (Tennessee Bureau of Investigation, 24th Judicial District Drug Task Force, and Tennessee Highway Patrol), and local law enforcement agencies (Dyer County Sheriff’s Department, Dyersburg Police Department, Jackson Police Department, Lexington Police Department, and Madison County Sheriff’s Department).
The indictments were returned by a federal grand jury in Jackson on January 20, 2015, but remained under seal until today’s arrests. Each indictment contained counts alleging violations of the Controlled Substances Act.
The suspects arrested during the operation were:
• Troy Richard Anderson Jr, 25 (already in state custody) • Tyler Demond Armstrong, 24, of Dyer County • Bree Anna Blalock, 26, of Dyer County • Tyrus Ray Blalock, 45, of Dyer County • Amy Hurt Dew, 50, of Dyer County • Antonia Marshell Jones, 30, of Dyer County • Marlos Lekeith Mann, 39 (already in state custody) • William Frank Perry Jr, 44, of Dyer County • Anthony Lee Randaul, 36, of Dyer County • Steve Lee Roby, 44, of Dyer County • Kenny Charles Vaughn, 37 (already in federal custody) • Terrance Terone Warren, 49, of Dyer County
During the course of this investigation, law enforcement officials have seized illicit narcotics, U.S. currency, firearms, and drug paraphernalia.
The charges in the indictments stem from the illegal activity of selling, manufacturing, and distributing, powder cocaine, crack cocaine, and marijuana, as well as the unlawful possession of ammunition by convicted felons.
“These individuals are charged with serious drug crimes, and the consequences they face if convicted are also serious,” said U.S. Attorney Stanton. “Illegal drug trafficking and the violence that often accompanies it are a plague upon our communities. My office will vigorously pursue any and all involved in these illegal activities.”
“These indictments and arrests are the result of the cooperation of local, state and federal law enforcement agencies and the hard work of the men and women from all of the agencies involved,” said Special Agent in Charge A. Todd McCall. “The FBI is dedicated to continuing to work with our partners to target, investigate and bring to justice those who prey on our community.”
“I am grateful for our federal, state, and local law enforcement partners for their assistance. We are a team that is committed to suppress the criminal element in our community,” stated Chief of Police Isbell. “I would also like to recognize the men and women of the Dyersburg Police Department for their hard work. It is truly their work and dedication that has made this a successful operation.”
“This Task Force partnership with both our sheriff's office, police department and the FBI has been beneficial in providing the additional resources needed to make these type of cases targeting illegal activity,” stated Sheriff Box. “This operation is another example of how well our agencies work together in this partnership to attack drugs and criminal activity. Protecting our citizens of this community from crime is our highest priority, we will continue to work with our partners to detect, investigate and prosecute those who seek to advance criminal activity. I want to commend our TFO's, FBI agents and the U.S. Attorney's Office for being a dedicated team in the support of making Dyersburg and Dyer County a safer community.”
The case was investigated by members of the FBI’s Memphis Safe Streets Task Force (ME SSTF). The ME SSTF is a FBI sponsored task force comprised of agents from the FBI Memphis Division’s Jackson Resident Agency, the Dyer County Sheriff’s Department, the Dyersburg Police Department, the Jackson Police Department, and the Lexington Police Department. The ME SSTF focuses on bringing together the combined resources of the FBI and other federal, state, and local law enforcement partners to address violent criminal threats. This case is being prosecuted by Assistant United States Attorney Beth Boswell on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13 Sospechosos Acusados En El Oeste De Tennessee En Violaciones Federales Por Trafico De DrogasRead the Press Release
Jackson, Tennessee - Edward L. Stanton III, Fiscal Federal para el Distrito Oeste de Tennessee; A. Todd McCall, Agente Especial a Cargo de la División del FBI de Memphis; Steve Isbell, Jefe de la Policía del Departamento de Policía de Dyersburg; y Jeff Box, el Jefe de la Policía del condado de Dyer, anunciaron hoy la revelación de una acusación formal contra 13 sospechosos con violaciones federales por narcotràfico. Los sospechosos fueron detenidos la madrugada de hoy durante una redada llevada a cabo por múltiples agencias federales (FBI, DEA, ATF y US Servicio de Aguaciles), estatales (Oficina de Investigaciones de Tennessee, 24ta Distrito Judicial del Destacamento Antidroga y las Patrulla de Carreteras de Tennessee) y fuerzas locales del orden (Departamento del Jefe de la Policía del Condado de Dyer, Departamento de Policía de Dyersburg, Departamento de Policía de Jackson, Departamento de Policía de Lexington y el Departamento del Sheriff del Condado de Madison).
Las acusaciones fueron devueltas por un gran jurado federal en Jackson el 20 de enero de 2015, pero se mantuvo bajo sello hasta los arrestos de hoy. Cada acusación contenía recuentos alegando violaciones de la Ley de Sustancias Controladas.
Los sospechosos arrestados durante la operación fueron:
• Troy Richard Anderson Jr, 25 (ya bajo custodia estatal) • Tyler Demond Armstrong, 24, of Dyer County • Bree Anna Blalock, 26, of Dyer County • Tyrus Ray Blalock, 45, of Dyer County • Amy Hurt Dew, 50, of Dyer County • Antonia Marshell Jones, 30, of Dyer County • Marlos Lekeith Mann, 39 (ya bajo custodia estatal) • William Frank Perry Jr, 44, of Dyer County • Anthony Lee Randaul, 36, of Dyer County • Steve Lee Roby, 44, of Dyer County • Kenny Charles Vaughn, 37 (ya bajo custodia federal) • Terrance Terone Warren, 49, of Dyer County
Durante el curso de esta investigación, los agentes del orden han incautado estupefacientes ilícitos, moneda de Estados Unidos, armas de fuego y parafernalia de drogas.
Los cargos en las acusaciones se derivan de la actividad ilegal de venta, fabricación y distribución de cocaína en polvo, crack y marihuana, así como la posesión ilegal de municiones por criminales convictos.
“Estos individuos estàn acusados de delitos graves por drogas, así como las consecuencias que ellos enfrentan si son declarados culpable también son graves ", dijo el Fiscal Federal Stanton. "El tràfico ilegal de drogas y la violencia que a menudo la acompaña son una plaga sobre nuestras comunidades. Mi oficina perseguirà enérgicamente cualquier y todos los involucrados en estas actividades ilegales.”
“Estas acusaciones y arrestos son el resultado de la cooperación de las agencias policiales locales, estatales y federales y el trabajo duro de los hombres y mujeres de todas las agencias involucradas ", dijo el agente especial a cargo A. Todd McCall. "El FBI està dedicado a continuar trabajando con nuestros socios para orientar, investigar y llevar ante la justicia a los que se aprovechan de nuestra comunidad.”
“Estoy agradecido por la asistencia de nuestros federales, estatales y socios locales de la ley. Somos un equipo que se ha comprometido a suprimir el elemento criminal en nuestra comunidad ", declaró Jefe de Policía Isbell. "También me gustaría reconocer a los hombres y mujeres del Departamento de Policía de Dyersburg por su arduo trabajo. Es realmente su trabajo y dedicación la que ha hecho de esta una operación exitosa.”
“Esta asociación con los Grupo de Misiones Especiales de ambas Oficinas del Sheriff, tanto de nuestro Departamento de la Policía y el FBI ha sido beneficioso en el suministro de los recursos adicionales necesarios para hacer estos tipos de casos dirigidos a actividades ilegales", afirmó Sheriff Box. "Esta operación es otro ejemplo de lo bien que nuestros organismos trabajan juntos en esta alianza para atacar a las drogas y la actividad delictiva. Proteger a los ciudadanos de esta comunidad ante la delincuencia es nuestra màxima prioridad, vamos a seguir trabajando con nuestros socios para detectar, investigar y enjuiciar a aquellos que buscan avanzar en la actividad criminal. Quiero felicitar a nuestro Grupo de Misiones Especiales, agentes del FBI y la Oficina del Fiscal de Estados Unidos por ser un equipo dedicado al apoyo y por hacer de Dyersburg y el condado de Dyer una comunidad màs segura.”
El caso fue investigado por los miembros del FBI llamado Fuerzas Especial de las Calles Segura de Memphis, por sus siglas en inglés (ME SSTF). El ME SSTF es un grupo de misiones especiales patrocinado por el FBI compuesto por agentes de la Agencia de Residente de Jackson de la División del FBI de Memphis, el Departamento del Sheriff del condado de Dyer, el Departamento de Policía de Dyersburg, el Departamento de Policía de Jackson, y el Departamento de Policía de Lexington. El ME SSTF se centra en recopilar los recursos combinados del FBI y otras agencias federales, estatales y locales de la ley para hacer frente a las amenazas de criminales violentos. Este caso està siendo procesado por el Fiscal Federal Auxiliar Beth Boswell en nombre del gobierno.
Los cargos y alegaciones contenidos en la acusación son meras acusaciones y los acusados son considerados inocentes hasta que se demuestre su culpabilidad.
Version en Inglés
25 January 2015
Federal Officials Participate in New Mexico Pharmacists Association’s Mid-Winter MeetingRead the Press Release
ALBUQUERQUE – Representatives from the U.S. Attorney’s Office and the DEA participated in the New Mexico Pharmacists Association’s Mid-Winter Meeting held this weekend in Albuquerque, N.M., for the purpose of educating the Association’s membership about how prescription drug trafficking and abuse contributes to New Mexico’s heroin and opioid epidemic and enlisting their support in combatting the epidemic.
Group Supervisor Richard Stark of the Tactical Diversion Squad at the Albuquerque Office of the DEA delivered a presentation entitled, “The Prescription Drug Epidemic in New Mexico: How Promoting a Partnership between the DEA and Pharmacists Can Help.” Assistant U.S. Attorney Joel R. Meyers, Supervisor of the Organized Crime Section of the U.S. Attorney’s Office, discussed the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. This Initiative, which was launched earlier this month, is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center in partnership with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico.
“New Mexico’s opioid addiction and overdose death rates have been at or near the top of the national scale for years,” said U.S. Attorney Damon P. Martinez. “Under the HOPE Initiative, one way we will take on this epidemic is by educating medical professionals about how they can educate their patients, particularly young adults, about the dangers of prescription drug abuse.”
Special Agent in Charge Will Glaspy of DEA’s El Paso Division added, “DEA is committed to developing and maintaining strong working relationships with pharmacists and other registrants. By ensuring that pharmacists have the education and tools they need so they can educate parents and young people about the dangers of prescription drug misuse and abuse, we can and will make a difference in combatting this deadly epidemic.”
The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The participation of the U.S. Attorney’s Office and the DEA in the New Mexico Pharmacists Association’s Med-Winter Meeting was undertaken under the prevention and education component of the HOPE Initiative.
23 January 2015
Woodbridge Attorney Sentenced to Prison for Failing to Pay Nearly $400k in Federal Income TaxesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERRY GRUENBAUM, 59, of Woodbridge, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by one year of supervised release, for failing to pay taxes on more than $1.3 million in income over a six-year period.
According to court documents and statements made in court, from 2005 to 2010, GRUENBAUM, an attorney, failed to report approximately $1,310,100 in taxable income on his federal tax returns. For the 2005, 2006 and 2007 tax years, GRUENBAUM filed tax returns that he knew significantly understated his actual taxable income, and for the 2008, 2009 and 2010 tax years, he failed to file any tax returns. Through this scheme, GRUENBAUM failed to pay $394,226 in additional tax due.
GRUENBAUM also took steps to make it difficult for the IRS to determine his true income, including calculating the gross receipt figures for one of his businesses by reviewing just one of a number of the business’s bank accounts that he knew had reportable income. He also utilized corporate bank accounts to pay his personal expenses, and received compensation for services rendered from at least three different corporations in the form of stock shares and salaries, and failed to report this income on his tax returns.
GRUENBAUM is required to pay approximately $877,646 in back taxes, penalties and interest.On July 15, 2014, GRUENBAUM pleaded guilty to two counts of filing a false federal tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
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(203) 821-3722 [email protected]Woman Sentenced for Defrauding Gordon Oaks' ResidentsRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that Ashley Robinson Fuqua, was sentenced today to serve 3 years probation, and to pay $20, 962.32 and a $100.00 SA. This case came to the attention of the Mobile Police Department when it was reported that new residents at Gordon Oaks had given Fuqua, an employee of Gordon Oaks, cash and checks intended to pay their rent and fees at the assisted living facility. Instead, Fuqua altered the checks and deposited them into her own account.
This case was investigated by the Mobile Police Department.
Wise Dentist Sentenced on Drug ChargesRead the Press Release
BIG STONE GAP, VIRGINIA – A dentist from Wise, Virginia, who previously pleaded guilty to illegally possessing and distributing more than 10,000 dosages of hydrocodone, was sentenced today in the United States District Court for the Western District of Virginia in Big Stone Gap.
In August 2014, Newton Carroll Mullins, 66, of Wise, Va., waived his right to be indicted and pled guilty to a two-count Information charging him with one count of possession with the intent to distribute and distributing hydrocodone and one count of causing the possession of more than 10,000 dosage units of hydrocodone by fraud. Today in District Court he was sentenced to two months of federal incarceration to be followed by four months on home incarceration.
“The abuse of prescription drugs continues to plague communities in Southwest Virginia and across the country,” Acting United States Attorney Anthony P. Giorno said today. “The problem impacts all levels of society and destroys communities. Long-term abuse of prescription drugs often leads to use of other opioids like heroin. We will continue to aggressively combat the abuse of opioids through vigorous enforcement actions and targeted outreach initiatives.”
Mullins previously admitted that between December 2012 and March 2014 he ordered large amounts of hydrocodone from a drug distributor for use by his dental practice. However, Mullins and his friend used the hydrocodone for their personal use. In addition, Mullins admitted to writing prescriptions for hydrocodone to his employees, who would fill the prescriptions and provide the drugs to Mullins.
The investigation of the case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Winchester Man Sentenced on Child Pornography ChargesRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester, Virginia man who previously pleaded guilty to two charges related to child pornography, was sentenced late yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
Justin Katz, 22, of Winchester, Va., previously pled guilty to one count of possession of child pornography and one count of distribution of child pornography. Yesterday in District Court, Katz was sentenced to 96 months of federal incarceration.
“The United States Attorney’s Office, along with our federal and state partners, will continue to prioritize cases involving the exploitation of children,” Acting United States Attorney Anthony P. Giorno said today. “Those dedicated to investigating and prosecuting crimes again children will continue to search out those individuals who traffic in this obscene material and bring them to justice.”
“The possession and distribution of child pornography is not a victimless crime,” said Clark E. Settles, special agent in charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Each time a predator like Katz views or shares those images and videos, a child is victimized all over again. Let this sentence be a warning to child predators. We will find you, investigate you and ensure you are prosecuted to the fullest extent of the law.”
According to evidence presented at previous hearings by Assistant United States Attorney Elizabeth G. Wright, on April 10, 2012, an agent with Homeland Security Investigations, working out of San Diego, Calif., was working in an undercover capacity while browsing the Gnutella network, a large peer-to-peer file sharing network often utilized by child pornographers to trade child pornography.
Through the file sharing feature of the network, the undercover agent was able to download two child pornography video files from an IP address associated with the residence of Mr. Katz in Winchester, Virginia. A search warrant of the defendant’s residence was executed in September 2012. A forensic examination of the defendant’s computer revealed 194 images depicting child pornography, which included 172 images depicting pre-pubescent child pornography, and 202 videos depicting child pornography, which included 100 videos depicting pre-pubescent child pornography.
The investigation of the case was conducted by Homeland Security Investigations with assistance from the Computer Forensic Unit of the Virginia Office of the Attorney General. Assistant United States Attorney Elizabeth G. Wright prosecuted the case for the United States.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Jerome White, 25, of South Bend, Indiana pled guilty to the felony offense of possession of a firearm in furtherance of a drug trafficking crime. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for April 24, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Dion Courtney, 38, of Gary, Indiana pled guilty to the felony offenses of theft of public funds and aggravated identity theft. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Secret Service, and Social Security Administration-Office of Inspector General. Sentencing has not yet been scheduled. This case is being prosecuted by Assistant United States Attorney Toi Denise Houston.
- Jarrett Danley, 30, of Gary, Indiana pled guilty to the felony offense of distribution of crack. This charge was filed as a result of an investigation by Federal Bureau of Investigation GRIT task force. Sentencing has been set for April 17, 2015. This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Juan M. Sosa, 51, of Fort Wayne, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Warren County, New Jersey, Construction Business Owner Admits Concealing Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Belvidere, New Jersey, man today admitted he concealed a mortgage fraud scheme carried out by his wife, a former real estate title agent, in which they obtained seven loans, totaling more than $3.7 million, on two properties located in Belvidere and Wood-Ridge, New Jersey, U.S. Attorney Paul J. Fishman announced.
Zbigniew Cichy, 45, pleaded guilty before U.S. District Judge Stanley R. Chesler to a superseding information charging him with one count of misprision of felony.
According to documents filed in this case and statements made in court:
Cichy owned and operated Global Builders LLC, a construction company. His wife, Ania Nowak, 48, also of Belvidere, was the owner and operator of A.N. Title Agency LLC and was an agent for Stewart Title Guaranty Company.
Nowak obtained seven mortgage loans through fraudulent means, including: an April 2005 loan for her sham sale of the Wood-Ridge property to Cichy; Cichy’s November 2005 refinancing loan on the Wood-Ridge property; a 2005 construction loan to build a house on the Belvidere property owned by Cichy; Cichy’s August 2006 loan on the Belvidere property; May 2007 loans for Cichy’s sham sale of the Belvidere property to another conspirator in the scheme, Kim Salvemini, 60, of Wallington, New Jersey; Salvemini’s May 2007 refinancing loan on the Belvidere property; and Cichy’s November 2007 refinancing loan on the Belvidere property. Nowak admitted that, for each of the seven loans, she lied on loan documents, failed to pay off prior mortgages at closing, failed to record the mortgages and any deeds and that most of the loans went into default for non-payment.
Cichy admitted that although he was aware of the mortgage fraud scheme, including Nowak’s failure to pay off existing liens at closing, he failed to report the fraudulent mortgage transactions to authorities. Instead, Cichy took steps to conceal the scheme by making mortgage payments on a number of the fraudulent loans out of his personal and business accounts to prevent foreclosure and thereby conceal from lenders that the loans had been obtained through fraud. Cichy also admitted to lying on certain loan documents that were used in furtherance of the scheme.
The charge of misprision of felony to which Cichy pleaded guilty carries a maximum penalty of three years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for May 5, 2015.
Nowak pleaded guilty on Jan. 15, 2015, and is also scheduled to be sentenced May 5, 2015. Salvemini previously pleaded guilty to her role in the scheme and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu and Senior Litigation Counsel Leslie F. Schwartz of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
Today’s guilty plea 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. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
15-031
Defense counsel: Carl J. Herman Esq., West Orange, New Jersey
Virginia Man Pleads Guilty to Contraband Cigarette TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Virginia man pleaded guilty in federal court today to his role in a multi-million dollar, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
Gerald E. Barber, 68, of Virginia, pleaded guilty before U.S. District Judge Brian C. Wimes to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking from July 2010 to Jan. 26, 2012.
Barber was the president of the Seneca-Cayuga Tobacco Company (SCTC) in Grove, Okla., which is a corporation operated by the Seneca Cayuga Tribe of Oklahoma, a federally recognized Indian tribe.
Although SCTC manufactures its own brands of native cigarettes, Barter was interested in selling unstamped and untaxed premium-brand cigarettes to smoke shops on other Indian nations, specifically in the state of New York. New York pre-collects an excise tax of $4.35 per pack of cigarettes from wholesalers for sales to Indian nations and tribes. Federal and New York state law requires that tax stamps be affixed to cigarette packages – prior to their sale to consumers – reflecting that the required state taxes have been paid. As part of this conspiracy, New York’s state excise tax of $4.35 per pack was not paid.
Barber ordered premium-brand contraband cigarettes from a co-conspirator, who in turn purchased those cigarettes from co-defendant Craig Sheffler, 45, of Independence, through his business, Cheap Tobacco Wholesale.
Sheffler, who pleaded guilty to his role in the conspiracy on Dec. 19, 2014, made regular purchases of contraband cigarettes from undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Barber then sold those premium-brand cigarettes to smoke shops located on New York Indian reservations, including Jan’s Smoke Shop and AJ’s Candy & Tobacco, LLC, both of whom have pleaded guilty to their roles in the conspiracy. The contraband cigarettes were transported to New York without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. The benefit to those smoke shops was that they did not pay New York state cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers by over $40 per carton.
To pay for the cigarettes (which were charged on delivery), the Indian smoke shops wired money across state lines, often to SCTC. SCTC then wired money across state lines to co-conspirators, who wired money across state lines to Cheap Tobacco Wholesale. Sheffler paid the undercover ATF agents, often in cash.
Under the terms of today’s plea agreement, Barber must pay a money judgment in the amount of $80,000, representing the remaining profits obtained by SCTC as a result of his role in the conspiracy.
According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Approximately 201,340 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.
Under federal statutes, Barber is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.
Vermont Man Convicted of Fraudulently Obtaining United States CitizenshipRead the Press Release
BURLINGTON – A Bosnian-born Burlington, Vermont man was found guilty today of obtaining his naturalized citizenship through fraud by giving false information to a U.S. official while applying for an immigration benefit and lying to gain entry into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Eugenia A.P. Cowles of the District of Vermont, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Special Agent in Charge Bruce Foucart of the HSI Boston Office and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Field Office made the announcement.
Edin Sakoc, 55, of Burlington, Vermont, was convicted following an eight day jury trial on one count of obtaining naturalization contrary to law in violation of 18 U.S.C. 1425(a). The jury unanimously concluded that Sakoc had lied on his naturalization application when he denied previously lying to U.S. immigration officials to gain an immigration benefit and when he denied ever lying to obtain entry to the United States. Sakoc faces a sentence of imprisonment of up to 10 years and a $250,000 fine and denaturalization as a consequence of his conviction. He will remain on release conditions until his sentencing.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863 or the HSI tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.The case was investigated jointly by HSI Burlington and the FBI’s Albany Division. ICE’s Human Rights Violators and War Crimes Center assisted in this investigation. Valuable assistance was provided by the Criminal Division’s Office of International Affairs and its counterpart at the Prosecutor’s Office of Bosnia and Herzegovina. The case is being prosecuted by Senior Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Acting United States Attorney Eugenia A.P. Cowles of the District of Vermont.
United States Settles False Claims Act Allegations Against Florida-Based Dermatology Practice for $3 Million; Three Whistleblowers to Collect more than $500,000Read the Press Release
Orlando, Florida - The United States has settled a lawsuit brought by three whistleblowers that alleges a central Florida based dermatology practice knowingly billed the government millions of dollars for procedures that lacked basic indicia of medical necessity and, in some cases, had been performed by unlicensed, uncredentialed, and unsupervised employees. The qui tam complaint, filed by three former employees of the clinic, alleges that the defendants – a dermatology practice and its owner – violated the False Claims Act (FCA) by knowingly submitting false claims to the government for payment.
The government announced today that it has reached a settlement with the defendant, Associates in Dermatology, and the physician who owned the practice, Dr. Michael Steppie. In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until October 2013, Dr. Steppie operated a dermatology practice that had an unlicensed medical assistant performing radiation therapy without proper supervision. The whistleblowers, in many instances, alleged that the medical assistant lacked the basic knowledge to perform the tests she was performing. In addition, the allegations included that the clinic performed unnecessary destructions of skin lesions and that these destructions lacked proper documentation. Associates in Dermatology and Dr. Steppie agreed to pay the United States $3 million dollars to resolve these allegations.
"The United States Attorney's Office is committed to taking the necessary steps to protect Medicare, TRICARE, and other federal health care programs from fraud," said A. Lee Bentley, III, U.S. Attorney for the Middle District of Florida. "By bringing FCA cases such as this, we recover funds obtained through fraud and deter others from attempting similar schemes."
"This case underscores how important it is for health care providers to properly document the services they bill to Medicare," stated Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services - Office of Inspector General. "We will continue to work with our law enforcement partners to protect the integrity of federal health care programs."
This lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Katherine Brown, Amber Bradshaw, and Vanessa Santos, former employees at the clinic. Under those provisions, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. The three relators will receive more than $500,000 as part of today’s settlement.
This matter illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $23.4 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated by Federal Bureau of Investigation, the Defense Criminal Investigative Services, the Health and Human Services - Office of Inspector General and Office of Counsel to Inspector General, and the Defense Health Agency Program Integrity Office. It was handled by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against the defendants was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Brown et al v. Associates in Dermatology, Michael Steppie, and William Steele.
Two Sioux City Brothers Sentenced to Lengthy Prison Terms for Violent Crime SpreeRead the Press Release
Contact: Steve Young
Sioux City brothers have been sentenced to federal prison after they were convicted by a federal jury in Sioux City on August 29, 2014, following a two and one-half day jury trial.
Jamal Dean, 23, of Sioux City, was convicted of conspiracy, felon in possession of a firearm, carjacking, and two counts each of robbery, and twice brandishing a gun in furtherance of a violent crime. He was found not guilty of one count of carjacking and one count of interstate transport of a stolen vehicle. His brother, Levon Dean Jr., 25, also of Sioux City, was convicted of conspiracy, felon in possession of a firearm, and two counts each of robbery and possessing a gun in furtherance of a violent crime. He was found not guilty of both counts of carjacking and one count of interstate transport of a stolen vehicle. One count of interstate transport of a stolen vehicle was dismissed.
Evidence at trial showed the brothers conspired to rob two local drug dealers. On April 15, 2013, they traveled together from Nebraska to Iowa where they beat and robbed the first drug dealer at gunpoint inside a room at a Sioux City motel and then left with his car, methamphetamine, cash and other items. On April 24, 2013, the brothers again traveled to Iowa where they beat and robbed a second drug dealer at gunpoint inside his Sioux City home taking his car, methamphetamine, cash and other items. After both attacks the men retreated back to Nebraska.
Evidence at the sentencing hearing additionally revealed that while an Iowa arrest warrant was pending for Jamal Dean, he was a passenger in a car that was stopped by Sioux City Police Officer Kevin McCormick. Dean exited the vehicle and began firing a number of rounds at the officer, one of which struck him in the head. After this shooting, Dean fled but was captured in Texas traveling south just 70 miles from the Mexican border. Evidence at sentencing also revealed Dean had assaulted a woman and shot two other men, before shooting Officer McCormick.
Jamal Dean and Levon Dean Jr. were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Jamal Dean was sentenced to life imprisonment. Levon Dean was sentenced to 400 months’ imprisonment, to be followed by a life term of supervised release.
There is no parole in the federal system. Both Jamal Dean and Levon Dean Jr. are being held in the United States Marshal’s custody until they can be transported to a federal prison.
Gregory Gant, Special Agent in Charge of the Kansas City Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives commended the law enforcement collaboration that this case highlights saying, "This case is a powerful example of law enforcement agencies working together to rid our neighborhoods of the most violent criminals that tear at the very fabric of our communities."
Woodbury County Sheriff David A. Drew echoed similar sentiments adding, “Once again Siouxland, in the highest traditions, has pulled together in a unified effort by police and citizens to bring these cases to resolution. Our goal is to continue this spirit of cooperation, rely upon citizen involvement and continue building upon our open relationships of mutual trust, respect and understanding.”
Kevin W. Techau, United States Attorney for the Northern District of Iowa, added, “One of the United States Department of Justice’s top priorities is helping our federal, state and local law enforcement agencies protect our nation’s communities as safe places where our citizens can live work and raise a family. Violent criminals are a threat to the law-abiding people of our communities. This case is an excellent example of the federal-state-local partnerships working today. The collaboration of all of the agencies involved was pivotal in this case and would not have been possible but for superior working relationships. My office shares great pride with our partners in successfully prosecuting the Dean brothers and bringing them to justice. It should also serve to remind others who break the law that we will continue to work to bring them to justice.”
Douglas Young, Chief of Police, Sioux City Police Department, added, “Today, the Federal Government has fulfilled its obligation to protect its citizens with the sentencing of Jamal Dean. This was a case of drugs, guns and gangs that has left a trail of victims over the past years. The successful prosecution of this case is a testament to the partnerships and relationships we have formed with our Federal, State and local agencies over the years".
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. It was investigated by the Sioux City Police Department, South Sioux City Police Department, Woodbury County, Iowa Sheriff Office, Dakota County, Nebraska Sheriff’s Office, The Woodbury County, Iowa County Attorney’s Office, United States Marshal’s Service, Iowa and Texas Departments of Public Safety, Iowa Department of Motor Vehicles, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4082.
Two Sentenced in International Heroin, Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Alexander Tovar, 26, and Miguel Valentin, 30, of Providence, have been sentenced to 5 years in federal prison for their participation in a heroin and cocaine trafficking conspiracy, that ended with the seizure of more than 486 grams of heroin and 462 grams of cocaine, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
At sentencing today, U.S. District Court Chief Judge William E. Smith also ordered Tovar to serve 3 years supervised release upon completion of his prison term. Tovar pleaded guilty on September 12, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine and heroin, possession with the intent to distribute heroin, and possession with the intent to distribute cocaine.
On November 14, 2014, U.S. District Court Chief Judge William E. Smith sentenced Miguel Valentin to 5 years in federal prison to be followed by 3 years supervised release. He pleaded guilty on July 31, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine and heroin, possession with the intent to distribute heroin, and possession with the intent to distribute cocaine.
According to court documents and information presented to the court, on December 21, 2013, a United States Customs and Border Protection (CBP) agent inspecting packages arriving in the United States from Venezuela discovered two similar packages, one containing 486.4 grams of heroin and the other containing 462.2 grams of cocaine. The packages were addressed for delivery to separate Boston area residences. CBP shipped both packages to Boston where they were turned over to the Criminal Investigations Division of Homeland Security.
On December 26, 2013, following two failed attempts by HSI Task Force undercover agents and Massachusetts State Police to deliver the package containing the heroin to the addressee, the package was returned to the shipping company office. While attempting to deliver the package, law enforcement spotted a vehicle with Rhode Island license plates and the two defendants. During the second attempted delivery, Valentin approached the delivery truck attempting to accept delivery of the package. He was refused delivery because he was not the addressee and could not prove he was authorized to accept delivery. Valentin then left the area in the vehicle with Rhode Island plates, being driven by Tovar.
According to information presented to the court, later the same day, the delivery company notified law enforcement that a person purporting to be the addressee called the delivery company and authorized release of his package to Miguel Valentin. The shipping company also received a telephone call requesting that the second package be released to a female whose name was provided to the shipping company. The next morning, Valentin arrived in a vehicle which also contained the female authorized to receive the package. Valentin went inside and accepted delivery from undercover agents who were posing as shipping company employees. Valentin was detained as he left the building.
Subsequent to Valentin’s arrest, HSI agents arranged to have the packages forwarded to Alexander Tovar. Tovar was observed by investigators taking receipt of the packages in Providence and was arrested.
The defendants have been detained in federal custody since their arrest.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Two Men Indicted for Burglarizing Sand Point Post OfficeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen Loeffler announced today that an indictment had been returned charging two men with burglarizing the post office in Sand Point, Alaska.
Sheldon Wilson Shuravloff, 21, and Keith Lee Wilson Jr., 18, both of Sand Point Alaska are named in both counts of the two-count indictment. The first count charges the men with conspiring to burglarize the post office in late December 2014. The second count charges both with forcibly breaking into the post office with the intent to commit a larceny or other crime once inside. The indictment stems from a break in that occurred at the post office on or about December 28 of last year. The burglary resulted in damage to the post office itself and to some postal equipment kept inside. It also forced the post office to close for a week, thereby preventing Sand Point residents from receiving their mail.
Assistant United States Attorney Stephanie Courter, who presented the case to the grand jury, indicated both Shuravloff and Wilson face up to five years in prison and a fine of up to $250,000 on each of the two charges. The law also allows a court, upon a conviction, to order the men to pay restitution in the amount of the damage done to the post office as a result of their actions. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
The men will be arraigned in federal court in the coming days. The United States Postal Inspection Service, the Sand Point Police Department, and the Alaska State Troopers conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Men Charged with Sex TraffickingRead the Press Release
CINCINNATI – A federal grand jury has charged Anthony Lee Brown, 48, of Cincinnati, Ohio and Christopher Combs, 25, of Cincinnati, Ohio, with sex trafficking in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Federal Bureau of Investigation (FBI) Acting Special Agent in Charge - Cincinnati Division, and Jeffrey Blackwell, Cincinnati Chief of Police, announced the indictment returned yesterday.
The indictment alleges that beginning on or about October 7, 2014 through November 18, 2014, Brown and Combs used a facility of interstate commerce to coerce and entice individuals to engage in sexual activity. The defendants allegedly transported individuals from Ohio to Kentucky and elsewhere to engage in prostitution.
Coercion and enticement is a crime that is punishable by up to 20 years in prison. Transportation of an individual to engage is prostitution is a crime punishable by up to 10 years imprisonment.
Brown and Combs were arrested by Officers assigned to the Cincinnati Police Department – Vice Unit and Special Agents with the FBI on January 22.
U.S. Attorney Stewart commended the investigation of this case by the FBI, Cincinnati Police Department, and Assistant U.S. Attorney Christy Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Turkish Man Sentenced for Smuggling Adulturated and Misbranded Cancer DrugsRead the Press Release
St. Louis, MO – SABAHADDIN AKMAN, the owner and manager of a Turkish drug wholesaler, was sentenced to 30 months imprisonment and fined $150,000 for smuggling misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) that he sent from Turkey to Chesterfield, Missouri. Akman also paid a forfeiture of $150,000 before sentencing.
According to Akman’s plea agreement, Akman’s company used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or "product sample" with no or low declared monetary values. Akman’s company also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments. Akman admitted that he shipped some prescription cancer treatment drugs that required constant cold temperatures to maintain their stability and integrity to the United States with no effort or ineffective efforts to maintain temperature protection for the drug shipments. Akman further admitted that some chemotherapy drugs he shipped to the United States had different lot numbers on the exterior packaging than the lot numbers on the drug vials inside the packages.
Further, Akman admitted in his plea agreement that his company sold Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s ("FDA") Office of Criminal Investigations ("FDA-OCI") previously seized Altuzan® from various U.S. physicians and customers of Taylor in 2012, and ultimately determined that this Altuzan® had no active drug ingredients inside the drug vials and contained mold and water instead of medicine. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer and Greg Martin, as well as prosecutions in the Southern District of California.
"Patients receiving cancer treatment drugs should be assured that the medications meet FDA’s standards for safety and quality, said Catherine Hermsen, Special Agent in Charge, FDA Kansas City Field Office. "OCI will continue its vigilance over the prescription drug supply chain to ensure that the drugs reaching patients comply with federal law, and that those who attempt to circumvent the agency’s oversight will be brought to justice."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service; the United States Attorney’s Office for the District of Puerto Rico; the Office of Inspector General for the U.S. Department of Health and Human Services; the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory; Europol; the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police; the German State Criminal Police (Landeskriminalamt, LKA); the U.S. Department of State’s Diplomatic Security Service; the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration.
The case was prosecuted by the Health Care Fraud Unit of the U.S. Attorney’s Office for the Eastern District of Missouri.
Three Perry County Residents Plead Guilty to Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn January 22, 2015, Brant A. Sizemore, 38, and Clinton Waters, 37, both of DuQuoin, and Jamey A. Carson, 36, of Pinckneyville, entered guilty pleas to a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that the offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Evidence at the plea hearings established that Sizemore, Waters, and Carson were involved with each other and with others in the manufacture of methamphetamine. They are all being held without bond pending May 22, 2015, sentencing hearings.
The offense carries a penalty of a term in federal prison of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Texas Man Pleads Guilty to Stealing $930,000 from St. Joseph EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Weatherford, Texas man has pleaded guilty in federal court to a mail fraud scheme in which he embezzled more than $930,000 from Herzog Contracting Corporation in St. Joseph, Mo.
Daniel Reif, 48, of Weatherford, Texas, pleaded guilty before U.S. District Judge Beth Phillips on Thursday, Jan. 22, 2015, to one count of mail fraud and one count of filing a false income tax return.
By pleading guilty, Reif admitted that he engaged in a scheme to defraud Herzog from January 2006 through Aug. 26, 2011. The government’s evidence establishes the amount embezzled by Reif totaled at least $931,256.
Herzog, which constructs railroads, highways, bridges, and airports, has a regional office in Irving, Texas. Reif began working for Herzog in the Irving office in August 2005. Reif was the manager of signals for Herzog and responsible for procuring materials and services from vendors in order to fulfill the needs of existing jobs; he was also responsible for oversight of the installation and performance of those services and materials. Reif was authorized to approve payments to vendors under his supervision and responsibility.
Reif founded his own company, Railway Signal Solutions, LLC (RSS), in February 2005. Reif began ordering project materials and services from supply vendors through RSS, then re-selling those products and services to Herzog at inflated prices. The RSS invoices made it appear as though the materials and services were being provided directly by RSS, an ostensibly independent supply vendor.
Reif, on behalf of RSS, paid the original, true vendors with a personal credit card or cashier’s check. Reif then, through RSS, invoiced Herzog for a higher price. The difference between the true price and Reif’s inflated price varied from 10 percent to over 100 percent. After RSS invoiced Herzog, Reif actually authorized payment of the inflated invoices himself.
Over the course of Reif’s scheme, RSS invoiced Herzog a total amount of at least $3,883,306, and Herzog paid RSS a total of at least $3,657,896.
Today’s plea agreement cites one instance of a $292,241 check from Herzog made payable to RSS that was mailed on March 10, 2010. The check was sent as payment for two invoices, one of which was sent by RSS to Herzog for a signal material package in the amount of $246,856. Reif, through his company RSS, had paid $152,686 for this same part, thus marking up the part by $94,170 and defrauding Herzog that same amount.
Reif also admitted that he filed a false federal income tax return on April 19, 2009, for the year 2008. According to the plea agreement, Reif claimed $990,159 in business expenses, although $498,301 of his business expenses had already been reimbursed by Herzog, his employer. The return materially understated his taxable income, resulting in a tax loss to the government of $192,230.
Under the terms of the plea agreement, Reig will be sentenced to 36 to 38 months in federal prison without parole and must pay restitution in an amount to be determined by the court. Reif must forfeit to the government $105,000 seized from his TD Ameritrade account and a 2010 Tige boat and trailer; Reif also must make a $225,000 payment on or before the date of sentencing. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and IRS-Criminal Investigation.
Tennesse Business Owner Sentenced to 10 Years for $3.5 Million Cargo Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Memphis, Tenn., business owner was sentenced in federal court today for his role in a cargo theft scheme that included a theft in West Plains, Mo.
Earl Stanley Nunn, 60, of Memphis, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole, which is the maximum sentence for the offense. The court also ordered Nunn to pay $3,514,521 in restitution.
On July 14, 2014, Nunn pleaded guilty to theft of an interstate shipment. Nunn, the owner of Nu World Trucking, LLC, was the leader of a cargo theft ring that used the resources of Nu World Trucking to steal cargo in various states. They did so by “bob-tailing” (meaning they traveled in a road tractor truck, without a semi-trailer attached) through truck stops and service stations located on or near interstate highways, looking for semi-trailers that had been left parked and unattended, and were not coupled to road tractors. When they located a semi-trailer that appeared to be unattended, they would steal the semi-trailer and the goods it contained by coupling their road tractor truck to it and driving off. After having stolen a semi-trailer and its contents, they usually transported the stolen goods to the Chicago, Ill., and Detroit, Mich., areas to be “fenced” or sold.
Co-conspirators committed thefts in various states, including Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Missouri, Nebraska, Ohio, Tennessee, Texas, and Virginia.
Nunn’s co-conspirators included his nephew, Michael Lee Sherley, 50, of Memphis, his son, Roderick Nunn (who pleaded guilty in a related case in the Western District of Michigan) and others. Sherley was sentenced on Sept. 18, 2014, to four years and six months in federal prison without parole. (The sentence includes a 33-month term for his conviction for theft of an interstate shipment, plus a 21-month term for the revocation of his supervised release in a prior unrelated federal conviction in the Western District of Tennessee.)
The specific charge to which both Nunn and Sherley pleaded guilty involves a theft that occurred on May 11, 2013, at the Snappy Mart Truck Stop in West Plains. Nunn and Sherley stole a 2000 Wabash trailer (valued at $7,500), which contained a load of Green Giant canned corn (valued at $73,008). The trailer, owned by Bryant Freight, LLC, was in transit from Minnesota to a food bank in Arkansas. Nunn and Sherley admitted that they traveled through Missouri and Indiana with the stolen cargo before being apprehended in Michigan.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI’s Memphis Cargo Theft Task Force, the U.S. Marshal’s Service, the West Plains, Mo., Police Department and the Michigan State Highway Patrol.
Tax Fraud Scheme Results in Five ConvictionsRead the Press Release
PENSACOLA, FLORIDA – At the conclusion of a twelve-day trial in Pensacola before Senior United States District Judge Roger Vinson, five defendants were convicted yesterday of a federal tax fraud scheme. A federal jury convicted John David Castleberry, 64, and Teresa Haggerty, 61, both formerly of Pensacola Beach, Florida, Mark Douglas Stokes, 61, and Melinda K. Stokes, 60, of Colleyville, Texas, and Christopher Stephen Baum, 57, of Arlington, Texas, of conspiracy to file and assist in the filing of fraudulent tax returns and conspiracy to defraud the United States by making fraudulent tax refund claims and impeding the IRS in the assessment and collection of federal income taxes. Castleberry and Haggerty were also found guilty on two additional counts of aiding the filing of false federal income tax returns in which they fraudulently claimed tax refunds. Castleberry was also convicted of filing a false income tax return in his own name. Prior to the trial, Barbara Denise Stephens, 52, of Arlington, Texas, Sheila Lin Castleberry, 63, of Portland, Oregon, and Deborah Tenney, 61, of Sarasota, Florida, each pled guilty to conspiracy to file and assist in the filing of fraudulent tax returns and conspiracy to defraud the United States by making fraudulent tax refund claims and impeding the IRS in the assessment and collection of federal income taxes. The verdicts and guilty pleas were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that between 2008 and 2010, the defendants helped to prepare and file fraudulent tax returns seeking more than $9 million in refunds. The defendants perpetrated the scheme by falsely reporting to the IRS, using an IRS form, that defendants’ or their clients’ creditors had paid large amounts of interest, withheld equally large amounts of federal income taxes, and paid this money over to the IRS. As a result of the fraudulently overstated income tax withholdings, the tax returns that were filed on behalf of the defendants, or their clients, claimed large refunds to which they were not entitled. The defendants used this method in an attempt to pay off their debts with fraudulent tax refunds.
In announcing the verdicts and the guilty pleas, United States Attorney Marsh said, “I commend the Treasury Inspector General for Tax Administration and the IRS for their hard work in this case. The United States Attorney’s Office is committed to aggressively pursuing and bringing to justice those who steal tax dollars and willfully undermine the tax system.”
Special Agent in Charge James D. Robnett stated, “Tax fraud against the government takes many forms, but the most egregious is the blatant theft of government funds under the pretense of make-believe earnings and tax withholdings. The IRS will continue to vigorously enforce the tax laws and for those who think that far-fetched ideas for quick cash from the government using false information is a good idea, they should take note that there are dire consequences to be faced should they decide to follow internet myths and fallacies.”
Defendants Mark Douglas Stokes, Melinda K. Stokes, and Christopher Baum are all scheduled to be sentenced on April 15, 2015. Defendants John David Castleberry and Teresa Haggerty are scheduled for sentencing the following day. All sentences will be held before Senior United States District Judge Roger Vinson.
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA) Dallas Field Division. The case was prosecuted by Assistant United States Attorneys Randall J. Hensel and J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tampa Man Charged for his Role in Stolen Identity Refund SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Demetrius Wright with four counts of theft of government funds, two counts of aggravated identity theft, and one count of conspiracy to commit aggravated identity theft and theft of government funds. If convicted, he faces a maximum penalty of ten years in federal prison for each of the theft charges, two years for each aggravated identity theft charge, and up to five years’ imprisonment for the conspiracy offense. The indictment also notifies Wright that the United States is seeking a money judgment in the amount of $165,317.00, the proceeds of the criminal conduct.
According to the indictment, between February 2012 and December 2014, Wright engaged in a conspiracy with others to file fraudulent federal income tax returns on behalf of taxpayers who had no knowledge of the scheme. As a result of the numerous fraudulently filed tax returns, the Internal Revenue Service paid a total of $165,317.00 into various bank accounts to which Wright had access.
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 Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Tampa Man Charged for His Role in Stolen Identity Refund SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Demetrius Wright with four counts of theft of government funds, two counts of aggravated identity theft, and one count of conspiracy to commit aggravated identity theft and theft of government funds. If convicted, he faces a maximum penalty of ten years in federal prison for each of the theft charges, two years for each aggravated identity theft charge, and up to five years’ imprisonment for the conspiracy offense. The indictment also notifies Wright that the United States is seeking a money judgment in the amount of $165,317.00, the proceeds of the criminal conduct.
According to the indictment, between February 2012 and December 2014, Wright engaged in a conspiracy with others to file fraudulent federal income tax returns on behalf of taxpayers who had no knowledge of the scheme. As a result of the numerous fraudulently filed tax returns, the Internal Revenue Service paid a total of $165,317.00 into various bank accounts to which Wright had access.
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 Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Springdale Man Sentenced to Five Years for Felon in Posession of Firearm ViolationRead the Press Release
Fayetteville, Arkansas – Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that James Ray King Jr., age 57, of Springdale, was sentenced today to 60 months in prison with three years of supervised release for being a felon in possession of a firearm. United States District Judge Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
United States Attorney Eldridge commented “Felons in possession of firearms pose a serious threat of harm to police officers and citizens in our communities. Our office, along with local authorities, will continue to relentlessly investigate and prosecute these types of cases in order to keep communities throughout the Western District of Arkansas safe from senseless violence.”
According to court records, on March 26, 2014, officers with the Springdale Police Department were dispatched to a disturbance at Johnson Meadows Apartments in Springdale. Upon arrival, officers observed King outside of his apartment in possession of a firearm. King was taken into custody at that time, and officers determined that the firearm was stolen. At King’s residence, officers located pipes, digital scales, and numerous plastic baggies used for packaging drugs. Outside of King’s apartment, officers located 14 grams of methamphetamine in yard debris near the location where King was taken into custody. King has previously been convicted of two felony drug charges coming out of Howard County, Arkansas, and as a prior felon is prohibited from possessing firearms. The stolen firearm in King’s possession was determined to have been manufactured outside the state of Arkansas. On July 8, 2014, King pleaded guilty to one count of being a felon in possession of a firearm.
This case was investigated by the Springdale Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Rosebud Woman Sentenced for Two Second Degree MurdersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of two counts of Second Degree Murder was sentenced on January 20, 2015, by U.S. District Judge Roberto A. Lange.
Crystal Red Hawk, age 37, was sentenced to 300 months in custody, 3 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund. Restitution will also be ordered.
Red Hawk, along with co-defendants Billy Ray McCloskey and Riley McCloskey, were all indicted by a federal grand jury on February 12, 2014, for First Degree Murder, Kidnapping, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Interstate Transportation of a Stolen Motor Vehicle, and Larceny. Red Hawk pled guilty to two counts of Second Degree Murder on October 27, 2014.
The co-defendants in the case were both previously sentenced on October 27, 2014. BillyRay McCloskey, age 24 from St. Francis, South Dakota, was sentenced to two terms of life imprisonment for two counts of First Degree Murder, and a $200 special assessment to the Federal Crime Victims Fund.
Riley McCloskey, age 21 from St. Francis, was convicted of two counts of Second Degree Murder, and sentenced to 210 months in custody, 5 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
In the late evening hours of December 23, 2013, BillyRay McCloskey and Calvin Kills In Water physically fought each other at a home in St. Francis. BillyRay McCloskey knocked Kills In Water to the kitchen floor and kicked him repeatedly in the head, face, and body until Kills In Water lost consciousness. Crystal Red Hawk was present during the assault on Kills In Water. Riley McCloskey arrived at the residence after the assault, while Kills In Water was lying on the floor unconscious and bleeding. Seventy-six year old Benjamin Clifford was asleep in the living room.
The Defendants decided to remove Kills In Water from the residence. The plan was to wrap a shower curtain or blanket around Kills In Water to keep the blood from dripping on the upholstery in the car in which they intended to transport him. The car belonged to Benjamin Clifford.
BillyRay McCloskey and Riley McCloskey supported Kills In Water between them and “walked” him out to Clifford’s car. They loaded him in to the rear passenger seat of the vehicle. As they were doing so, Clifford, the owner of the vehicle, ran outside and said he would drive his own car.
Clifford drove the vehicle as they left the residence, with Crystal Red Hawk in the front passenger seat, Riley McCloskey in the driver side rear passenger seat, and BillyRay McCloskey in the center of the rear passenger seat. The plan was to drive to the community of St. Francis to a trailer house located behind a store where they could drop off Kills In Water with someone who knew him. Clifford suggested that they take Kills In Water to the hospital, but BillyRay McCloskey said no. Clifford then drove the vehicle behind the trailer house according to the original plan and honked the car horn in an effort to get someone’s attention inside the trailer. As he did so, BillyRay McCloskey reached over the back of the front seat and placed his forearm around Clifford’s neck in a sleeper hold until he lost consciousness. The vehicle was driven away from the scene and down a highway south of St. Francis, where the vehicle stopped and BillyRay McCloskey searched the front of the car until he found a screw driver. BillyRay McCloskey then turned around to face the back seat, got on his knees, and stabbed Kills In Water in the chest several times with the screw driver.
The Defendants then proceeded into Nebraska, stopping in front of a gate into a pasture in rural Cherry County. BillyRay McCloskey opened the gate and Crystal Red Hawk continued to drive the vehicle into the pasture, coming to a stop near a grove of trees. BillyRay McCloskey and the others removed both Clifford, who was unconscious but alive, and Kills In Water from the vehicle and drug their bodies from the car to the grove of trees.
After leaving the location where the bodies were dumped, BillyRay McCloskey threw the screw driver out of the front passenger side window. The Federal Bureau of Investigation (FBI) ultimately recovered a Phillips screw driver, and DNA testing of the screw driver indicated the presence of blood from both Clifford and Kills In Water.
The bodies of both Clifford and Kills In Water were located and recovered in the early morning hours of December 30, 2013. Kills In Water was found with his hands bound behind his back with a pair of pants.
Several days later, law enforcement authorities apprehended BillyRay McCloskey, who admitted he strangled Clifford until he was unconscious and also admitted to stabbing him in the chest at least 5 times with a screw driver. He also admitted that he stabbed Kills In Water at least seven times in the throat and had dumped the bodies in a remote area.
An autopsy was performed on the bodies of Clifford and Kills In Water. The autopsy report of Benjamin Clifford concluded that the cause of death was stab wounds to the left chest, with neck compression “asphyxia” as a probable contributing factor. The autopsy noted seven puncture wounds in the upper chest region.
The autopsy report of Calvin Kills In Water indicated that the cause of death was stab wound type injuries involving the head and neck area, with a likely contributing factor of blunt force trauma to the head.
This case was investigated by the FBI and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Red Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kameron Jackson, age 22, was indicted on August 19, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 20, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 15, 2014, and August 7, 2014, Jackson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to register and update his registration.
The charge is merely an accusation and Jackson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Jackson was remanded to the custody of the U.S. Marshals Service.
Registered Sex Offender Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
MISSOULA – A Kalispell man was sentenced today for possessing child pornography. Darrin Evan Malley, 36, was ordered to serve 120 months in prison followed by 15 years of supervised release in connection to his October 2014 guilty plea. U.S. District Court Judge Dana L. Christensen presided over the sentencing.
Assistant U.S. Attorney Zeno Baucus told the court that law enforcement received a complaint from a concerned citizen who had viewed child pornography on the defendant’s computer. At the time, the defendant was a registered sex offender who had previously been convicted of transporting/shipping child pornography. A forensic review of the defendant’s electronic media revealed over 1,000 images and roughly 20 videos of child pornography. The defendant acknowledged that he knew it was illegal to possess child pornography.
The investigation was conducted by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Zeno Baucus.
Postal Service Employee Sentenced to Probation with Home Detention for Stealing from MailRead the Press Release
PITTSBURGH - A resident of Parker, Pa., has been sentenced in federal court to two years probation, which includes three months home detention, and a $500 fine on her conviction of theft of mail by a Postal employee, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Pamela D. Vogt, 44.
According to information presented to the court, on or about Feb. 6, 2014, Vogt, while working as a U.S. Postal Service employee, removed a $20 bill from a greeting card contained in an envelope which was addressed and intended for delivery by the U.S. Postal Service.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Postal Service-Office of Inspector General (USPIS) for the investigation leading to the successful prosecution of Vogt.
Police Officer in Fulton, New York, Sentenced for Assaulting a Man in His CustodyRead the Press Release
Joseph Arigo, 47, a former sergeant with the Fulton Police Department in Fulton, New York, was sentenced today in federal court to 15 months in prison and three years probation for beating a handcuffed man inside the Fulton police station. In September 2014, Arigo pleaded guilty in federal court to one count of deprivation of rights under color of law.
According to court documents filed in connection with his guilty plea, Arigo was sitting at the sergeant’s desk on June 28, 2014, when a handcuffed man, G.B., was brought into the police station. G.B. was yelling, but was not physically threatening any officers or himself. Arigo pulled the video camera out of the wall to stop it from recording, walked into the room where G.B. was, shoved his head into the bench and punched him in the head multiple times. G.B. suffered cuts and bruising, lost consciousness and required seven stitches. After the incident, Arigo lied to his supervisors and in two official reports in an attempt to conceal his actions.
This case was investigated by the Syracuse Resident Agency of the Albany Division of the FBI and was prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Phoenix Man Sentenced to 327 Months in Federal Prison on Federal Child Pornography ConvictionsRead the Press Release
LUBBOCK, Texas — Gregory James Flohr, 54, a former resident of Phoenix, Arizona, was sentenced today by U.S. District Judge Sam R. Cummings to 327 months in federal prison, following his guilty plea in August 2014 to one count of transportation of child pornography and one count of possession of child pornography. Today’s announcement was made by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Flohr has been in custody since his arrest last summer on a related federal criminal complaint.
According to the factual resume filed in the case, when Flohr traveled from Arizona to Texas, he intentionally transported videos depicting a prepubescent female minor engaged in sexually explicit conduct. In addition, on the evening of July 2, 2014, Flohr knowingly possessed a Samsung cell phone that contained a child pornography video that had been transported from Arizona.
According to the complaint filed in the case, the investigation began on July 2, 2014, after Flohr entered a T-Mobile store in Lubbock, accompanied by “Jane Doe,” a female minor under age 12. Flohr purchased a new cell phone for himself and requested that the T-Mobile staff transfer data from his existing cell phone onto the newly purchased cell phone. This process involved Flohr telling the T-Mobile employee his Google Gmail account and password to facilitate the data transfer. During the data transfer, the employee noticed several images and videos of Flohr engaged in sexual contact with Jane Doe. After Flohr left the store, T-Mobile contacted the Lubbock Police Department to report the incident.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force, the Hockley County Sheriff’s Office, the Phoenix Police Department, Phoenix, Arizona, and the FBI, investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.