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23 January 2015
Palm Beach County Resident Pleads Guilty under the Espionage Act and Computer Fraud and Abuse Act for Accessing and Removing Classified Information from Military ComputersRead the Press Release
West Palm Beach resident pled guilty to willful retention of classified national defense information pursuant to the Espionage Act, one count of computer intrusion pursuant to the Computer Fraud and Abuse Act, and one count of conspiracy to commit naturalization fraud, while employed as a computer systems administrator at a U.S. Military installation in Honduras.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force, made the announcement.
Christopher R. Glenn, 34, gained unauthorized access to classified computer files containing national defense information that belonged to the Department of Defense and U.S. Southern Command’s Joint Task Force Bravo in Soto Cano Air Base, Honduras. Once Glenn accessed those files, he copied classified information stored under the Joint Task Force Commander’s account, which information he retained.
Glenn also conspired with his wife, Khadraa A. Glenn, 28, to commit naturalization fraud for her benefit by fabricating fraudulent documents and submitting false statements and the documents to the U.S. Citizenship and Immigration Services (USCIS). Khadraa A. Glenn previously pled guilty to naturalization fraud conspiracy and was sentenced on October 7, 2014.
“Obtaining national defense information when you are not entitled to it is a serious threat to our national security,” said U.S. Attorney Wifredo Ferrer. “In committing this crime, Christopher Glenn abused his position of trust. Violations of the espionage act and computer intrusion are unacceptable and we will continue to investigate and seek to hold accountable those who engage in it.”
“Christopher Glenn accessed, copied and retained classified information that belonged to the Department of Defense and the U.S. Southern Command’s Joint Task Force, without authorization,” said Assistant Attorney General Carlin. “Systems administrators occupy a place of unique trust in an organization due to their extensive access to the cyber systems they maintain. With today’s plea, Mr. Glenn is being held accountable for his violation of that trust.”
“The Cold War may be over, but espionage, spies trying to steal our nation’s most valuable secrets are still at it,” said George L. Piro, Special Agent in Charge, FBI Miami. “More than ever, the FBI remains vigilant to protect critical national secrets and assets. If you are aware of this type of activity, report it immediately to the FBI.”
Glenn is scheduled to be sentenced by U.S. District Judge Kenneth A. Marra, on April 17, 2015, at 2:00 p.m. He faces a possible statutory maximum sentence of up to 10 years in prison on each of counts 1 and 5, and up to 5 years in prison on count 10; 3 years of supervised release and a $250,000 fine.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Army’s 470th Military Intelligence Brigade, U.S. Army’s Criminal Investigations Division, the U.S. Southern Command (SOUTHCOM), USCIS, Internal Revenue Service, Department of Homeland Security and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro and Trial Attorney Christian Ford of the Counterespionage Section of the Department of Justice’s National Security Division.
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.
Palm Beach County Resident Pleads Guilty Under the Espionage Act and Computer Fraud and Abuse Act for Accessing and Removing Classified Information from Military ComputersRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George Piro for the FBI’s Miami Field Office and the members of the South Florida Joint Terrorism Task Force announced that a West Palm Beach resident pleaded guilty to willful retention of classified national defense information pursuant to the Espionage Act, one count of computer intrusion pursuant to the Computer Fraud and Abuse Act, and one count of conspiracy to commit naturalization fraud, while employed as a computer systems administrator at a U.S. Military installation in Honduras.
Christopher R. Glenn, 34, gained unauthorized access to classified computer files containing national defense information that belonged to the Department of Defense and U.S. Southern Command’s Joint Task Force Bravo in Soto Cano Air Base, Honduras. Once Glenn accessed those files, he copied classified information stored under the Joint Task Force Commander’s account, which information he retained.
Glenn also conspired with his wife, Khadraa A. Glenn, 28, to commit naturalization fraud for her benefit by fabricating fraudulent documents and submitting false statements and the documents to the U.S. Citizenship and Immigration Services (USCIS). Khadraa A. Glenn previously pleaded guilty to naturalization fraud conspiracy and was sentenced on Oct. 7, 2014.
“Christopher Glenn accessed, copied and retained classified information that belonged to the Department of Defense and the U.S. Southern Command’s Joint Task Force, without authorization,” said Assistant Attorney General Carlin. “Systems administrators occupy a place of unique trust in an organization due to their extensive access to the cyber systems they maintain. With today’s plea, Mr. Glenn is being held accountable for his violation of that trust.”
“Obtaining national defense information when you are not entitled to it is a serious threat to our national security,” said U.S. Attorney Ferrer. “In committing this crime, Christopher Glenn abused his position of trust. Violations of the espionage act and computer intrusion are unacceptable and we will continue to investigate and seek to hold accountable those who engage in it.”
“The Cold War may be over, but espionage, spies trying to steal our nation’s most valuable secrets are still at it,” said Special Agent in Charge Piro. “More than ever, the FBI remains vigilant to protect critical national secrets and assets. If you are aware of this type of activity, report it immediately to the FBI.”
Glenn is scheduled to be sentenced by U.S. District Judge Kenneth A. Marra, on April 17, 2015.
Assistant Attorney General Carlin would like to thank the investigative efforts of the FBI, U.S. Army’s 470th Military Intelligence Brigade, U.S. Army’s Criminal Investigations Division, the U.S. Southern Command (SOUTHCOM), USCIS, Internal Revenue Service, Department of Homeland Security and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Trial Attorney Christian Ford of the Counterespionage Section of the Department of Justice’s National Security Division and Assistant U.S. Attorney Ricardo Del Toro of the Southern District of Florida.
Pair Sentenced to Federal Prison Terms for Swindling $30 Million from More Than 100 Investors in Purported Telecom BusinessRead the Press Release
CHICAGO " Two defendants were sentenced today to federal prison terms for an investment fraud scheme in which they swindled more than $30 million from more than 100 investors in a purported voice-over-internet telecommunications business. One defendant, GAIL HOWARD, was sentenced to seven years in prison, while her co-defendant, JAMES JEDYNAK, was sentenced to 6½ years in prison. Together, Howard and Jedynak misappropriated more than $6 million of investors’ funds for their own benefit.
Howard, 64, of Springdale, Ark., and formerly of California, pleaded guilty to wire fraud, while Jedynak, 49, of Hemlock, Mich., and formerly of north suburban Northfield, was convicted of wire fraud at a trial in June 2013.
Both defendants were ordered to pay $30.27 million in restitution by U.S. District Judge Robert M. Dow, Jr., who imposed the sentences today in Federal Court in Chicago. Jedynak and Howard were each ordered to start serving their sentences on April 28.
According to court records, Howard was president and chief executive officer, and Jedynak was in charge of recruiting investors, at Unified Worldwide Transport, LLC (UWT), a Santa Monica, Calif., company that purported to be in the business of routing voice-over-internet protocol (VOIP) telecommunications traffic. UWT sold equity shares to investors through private placement offerings, and Jedynak was responsible for recruiting individuals and entities, including some from the Chicago area, to invest in the business.
Between 2003 and 2007, Howard and Jedynak raised more than $30 million through the fraudulent offer and sale of investment interests and loans to UWT. They falsely represented that investments and loans would be used to acquire telecommunications routes, build network infrastructure, provide working capital, repay debt, and purchase licenses and equipment. Instead, they misappropriated approximately $6.2 million to purchase luxury goods and services, such as a swimming pool, a boat, jewelry, and plastic surgery, to pay for home improvements, to make payments to friends and relatives, to make personal investments, to purchase real estate, and to fund outside business interests.
To facilitate the fraud scheme, the defendants falsely represented that UWT had a contract with Illinois-based Caterpillar Corp., which they claimed owed UWT a lot of money, when in fact there was no contract and no money owed.
Jedynak falsely represented to investors that he would receive no compensation from UWT until investors received all of their principal back. Howard told investors that she had a law degree and a master"s degree in business administration and had worked as a state prosecutor in Arkansas, none of which was true.
The sentences were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Department of Securities assisted the investigation conducted by the FBI.
The government was represented by Assistant U.S. Attorneys Rachel Cannon, Ryan Hedges, and Derek Owens.
Northern Colorado Heroin Network Dismantled by the FBI and the Longmont Police DepartmentRead the Press Release
FEDERAL CHARGES INCLUDE DISTRIBUTION OF HEROIN RESULTING IN DEATH
DENVER – Longmont Police Officers and FBI special agents today dismantled a heroin distribution network centered in Northern Colorado, the U.S. Attorney’s Office, FBI and Longmont Police Department announced today. Ten defendants were arrested based on an either a federal indictment returned by a federal grand jury in Denver or a state arrest warrant. One of the four federal defendants, Brice Alday, of Longmont, appeared in U.S. District Court in Denver this afternoon, where he was advised of his rights and the charges pending against him. Four defendants remain at large, and arrests are ongoing.
In September 2014, the Longmont Police Department’s Special Enforcement Unit (SEU), and the Federal Bureau of Investigations (FBI) initiated a joint investigation into a heroin use and distribution ring working primarily in Longmont, but with connections to other communities in Northern Colorado. As a result of this investigation, four persons were indicted on federal charges related to heroin distribution – including an allegation that the distribution resulted in death. In addition to the federal defendants, 10 others were named in state charges for possession and/or distribution of a schedule I controlled substance.
The federal indictment includes four federal defendants. Alday and his three co-defendant face four counts, including Conspiracy to distribute and possess with the intent to distribute heroin – the use of which resulted in death. All four defendants also face distribution of heroin resulting in death. Alday and two others also face use of communication facility, a telephone, in furtherance of the drug trafficking crime.
The Longmont Police Department is still looking for many of the suspects and are requesting the assistance from the public. Anyone with information on this crime, or any other crime, is asked to call the Longmont Police Department at 303-651-8501 or Northern Colorado Crime Stoppers at 1-800-222-TIPS (8477). Crime Stoppers provides a way for members of the community to assist local law enforcement agencies in the fight against crime. Crime Stoppers knows "someone other than the criminal has information that can help solve a crime". Crime Stoppers offers ANONYMITY to people who provide information about crimes AND pays rewards when the information supplied leads to an arrest. People providing information to Northern Colorado Crime Stoppers that lead to the arrest and filing of charges for this crime may receive up to a $2,000.00 reward and remain anonymous. Tips can also be provided to the Northern Colorado Crime Stoppers via the internet at www.nococrimestoppers.com or by Text to: 244637 (crimes) Keyword: NOCO (followed by your tip).
“Tragically, heroin use has climbed dramatically in Colorado, which has led to an epidemic of heroin overdose deaths,” said U.S. Attorney John Walsh. “Thanks to the FBI and the Longmont Police Department, a Northern Colorado heroin distribution network that was responsible for the death of an individual has been dismantled. But our work in this area is far from done.”
“These arrests highlight a commitment by federal and local agencies to address criminal enterprises responsible for a surge in the trafficking of heroin and resulting overdoses that take lives and destroy families,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “We extend our gratitude to the Longmont Police Department and United States Attorney’s Office for working together and using innovative strategies to dismantle groups that threaten the well-being of our communities.”
The federal defendants face a variety of drug distribution related charges. All four also face the charge of Conspiracy to distribute and possess with intent to distribute heroin – the use of which resulted in death. The four also face distribution of heroin resulting in death. Each count carries a penalty of not less than 20 years, and up to life in federal prison, and up to a $1,000,000 fine. If convicted of use of a communication facility, each of the three defendants who were indicted on that charge face not more than 4 years in prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation, Fort Collins Resident Agency and the Longmont Police Department. In addition, the Boulder District Attorney’s Office is working closely with law enforcement on the prosecution of the state defendants.
The federal defendants are being prosecuted by Assistant U.S. Attorney Bradley Giles.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Norridgewock Man Sentenced to 65 Years for Child Exploitation and PornographyRead the Press Release
Patrik Arsenault, 28, was sentenced in U.S. District Court by Judge John A. Woodcock Jr. to 65 years in prison, to be followed by a lifetime of supervised release for sexual exploitation of a minor and transportation, receipt and possession of child pornography U.S. Attorney Thomas E. Delahanty II announced. Arsenault pleaded guilty on July 8, 2014.
According to court records, in June and July of 2013, the defendant, a former special education teacher, sexually abused three minors and recorded images and videos the abuse. The defendant then sent recordings of the abuse, as well as other images of child pornography, to several e-mail trading partners. The defendant also received images of child pornography from his trading partners. On Aug. 21, 2013, agents seized a hard drive during the execution of a search warrant at the defendant’s residence. A forensic examination revealed videos and images of the defendant’s abuse of the minors and over 7,500 images and 250 videos depicting child pornography.
“Despicable crimes like this rob our children of their innocence,” said Special Agent in Charge Bruce Foucart of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston. “We entrust teachers to serve as role models for our children and safeguard their welfare. As this sentence makes clear, when that trust is violated, there will be severe consequences. This case should also serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity on the Internet to sexually exploit children with impunity.”
“It was his hard work and diligence in identifying the defendant after his activity had been discovered that brought him to justice,” said U.S. Attorney Delahanty on the work of HSI Special Agent Anthony Castellanos. “These cases are very difficult because of the subject matter, but also because of the necessity to link the defendant to the disturbing images and on-line conduct. Special Agent Castellanos’s continued persistence has limited the exposure of the minors to further exploitation. People who engage in this conduct should expect to receive very lengthy sentences.”
The investigation was conducted jointly by HSI, the Maine State Police and the Computer Crimes Unit of the Maine State Police. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Orleans Couple Indicted for Violations of the Federal Controlled Substances Act and Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GROSS WILLIAMS, age 49, and his wife, KATHLEEN WILLIAMS, age 46, both of New Orleans, were charged yesterday in a five-count Indictment for violations of the Federal Controlled Substances Act, the Federal Gun Control Act, conspiracy to launder money and obstruction of justice.
According to the Indictment, GROSS WILLIAMS possessed with the intent to distribute and distributed one kilogram or more of heroin and five kilograms or more of cocaine. GROSS WILLIAMS is also alleged to have possessed a firearm in furtherance of those drug trafficking crimes and to have illegally possessed a weapon after a felony conviction. KATHLEEN WILLIAMS and GROSS WILLIAMS were also charged with conspiring to launder the proceeds of GROSS WILLIAMS’s drug trafficking. KATHELEEN WILLIAMS was additionally charged with obstruction of justice for destroying a cellular telephone.
If convicted, GROSS WILLIAMS faces a minimum term of imprisonment of 15 years to a maximum of life, a fine of up to $10,000,000 and 5 years of supervised release following any term of imprisonment.
If convicted, KATHLEEN WILLIAMS faces a maximum term of imprisonment of 40 years, a fine of up to $500,000, and 3 years of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, the New Orleans Police Department, and Louisiana Probation and Parole in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Monahans Man Pleads Guilty in Oil Theft SchemeRead the Press Release
In Midland, 33-year-old David Wayne Schroeder of Monahans, TX, faces up to ten years in federal prison for theft of approximately $58,000 worth of oil announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing yesterday before United States Magistrate Judge David Counts, Schroeder pleaded guilty to three counts of theft from an interstate shipment. By pleading guilty, Schroeder admitted that on three separate occasions in November and December 2013, Schroeder stole oil from different Permian Basin companies. On November 13, 2013, Schroeder admittedly stole a truckload of oil from Williams Oil Company in Crane County and delivered it to Itero Energy’s site in Monahans for payment. On November 27, 2013, Schroeder admittedly stole a truckload of oil from Devon Energy in Crane County and delivered it to Itero for payment. The estimated value of each load of stolen oil is $10,000.
The final incident, according to court records, occurred during the evening hours of November 30, 2013, and into the early morning hours of December 1, 2013, when Schroeder admittedly used a stolen vacuum truck and trailer to steal five tankerloads (approximately 520 barrels) of oil from a Whiting Petroleum lease in Ward County. Schroeder delivered the stolen oil to Itero for payment. A Ward County Sheriff’s deputy dispatched to investigate a possible stolen vacuum truck on Itero’s site witnessed Schroeder off-loading oil and attempted to question him. After a brief altercation with the deputy, Schroeder managed to flee the scene in a stolen vehicle, but was apprehended later that morning in Monahans. Investigators discovered Schroeder had left four tickets each documenting a separate tanker load delivered to Itero’s site. In the normal course of business, the tickets would have justified and likely led to Itero’s payment for the oil deliveries.
Schroeder remains in federal custody pending sentencing scheduled for April 10, 2015, in Midland before U.S. District Judge Robert A. Junell.
This investigation was conducted by the FBI’s Permian Basin Oilfield Theft Task Force, which consists of federal agents as well as law enforcement officers from the Midland County Sheriff’s Office and the Andrews County Sheriff’s Office. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
Mobridge Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man charged with Assaulting, Resisting, and Impeding a Federal Officer pled guilty to and was sentenced on January 20, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Ed Charles LeClair, IV, age 22, was sentenced to 6 months in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place in Timber Lake at the Days of 1910 City Celebration on or about July 27, 2014, when LeClair forcibly assaulted a Dewey County Deputy Sheriff. At the time of the assault, the Deputy Sheriff was assisting federal law enforcement officers in an arrest of the Defendant at the beer tent.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson. LeClair was remanded to the custody of the U.S. Marshals Service.
Missouri Woman Pleads Guilty in Kansas in Multimillion-Dollar Designer Drug CaseRead the Press Release
KANSAS CITY, KAN. – A Missouri woman pleaded guilty Friday to being part of a conspiracy to operate an Olathe-based business that sold at least $16 million worth of synthetic forms of marijuana and other street drugs, U.S. Attorney Barry Grissom said.
Cindy McRoberts, 49, Lees Summit, Mo., pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of conspiracy to distribute controlled substances and analogues of controlled substances.
According to court records, McRoberts was an employee who worked for co-defendants Tracy Picanso and Roy Ehrett, who owned Olathe-based businesses that produced and sold dangerous controlled substances and controlled substance analogues of THC (the active ingredient in marijuana) and methcathinones (stimulants). They used the Internet to market their products under exotic names including Pump It, Head Trip, Black Arts, Grave Digger, Voodoo Doll and Lights Out. Some of the drugs were manufactured in buckets on warehouse floors.
McRoberts worked as the office manager at the office in Olathe and at warehouses in Kansas City, Mo. She answered phones, handled online orders, leased post office boxes, picked up shipments of illegal substances and chemicals, and transported illegal substances and chemicals between warehouses.
She is set for sentencing April 27. She faces a maximum penalty of 20 years and a fine up to $1 million. Co-defendants Picanso and Ehrett are set for sentencing April 13.
Grissom commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force and Assistant U.S. Attorney Tanya Treadway for her work on the case.
Michigan Man Sentenced to Prison for Home Mortgage Fraud ConspiracyRead the Press Release
A Northville, Michigan, resident was sentenced today in U.S. District Court for the Eastern District of Michigan to serve 15 months in prison, five years of supervised released and was ordered to pay $394,000 in restitution to five defrauded banks for committing bank fraud, the Department of Justice announced.
Wasseem Shamoun pleaded guilty on Aug. 12, 2014, to conspiracy to commit bank fraud. The superseding indictment alleged that from approximately January 2006 to December 2008, Shamoun and his six other co-defendants conspired to defraud financial lending institutions to obtain residential mortgage loans by providing fraudulent information on loan applications. According to court documents, the defendants devised a scheme to purchase single-family homes for approximately $5,000 to $40,000 each, and then recruited straw buyers to submit fraudulent loan applications for home mortgages substantially above the original purchase price. The loan applications falsified the straw buyers’ assets, income and down payment, among other things. The straw buyers were paid fees for their participation, which were sometimes falsely disguised as “landscaping” or “construction” fees. The conspirators made a substantial profit and paid themselves commissions on the sales. Every home purchased and sold as part of the scheme went into foreclosure. According to court documents, Shamoun’s role in the conspiracy was to sell properties to the straw buyers. He was directly responsible for a criminal loss of approximately $394,000.
In addition to the seven individuals indicted in the case, two others connected to the scheme have pleaded guilty. One individual is a straw buyer of multiple properties who received substantial fees as part of the scheme. The other individual is a mortgage broker who assisted in the preparation of the false mortgage loan applications. Both are awaiting sentencing in their cases.
This case was investigated by the FBI, IRS-Criminal Investigation and the Drug Enforcement Administration. Senior Litigation Counsel Corey Smith and Trial Attorney Mark S. McDonald of the Justice Department’s Tax Division prosecuted the case.
Michigan Company President Sentenced for Fraud and Tax EvasionRead the Press Release
A Plymouth, Michigan, resident was sentenced today in the U.S. District Court for the Eastern District of Michigan to serve 42 months in prison to be followed by one year of supervised release for committing wire fraud and tax evasion, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Michael Stover was the president of Omni Facility Services (Omni), a janitorial company located in Southfield, Michigan. As part of his responsibilities as president, Stover approved and paid subcontractors of Omni. Stover incorporated a fictitious subcontractor called Envirovac Inc., and from 2004 through 2010, he created fictitious invoices from Envirovac that billed Omni for work that was never performed. Stover then approved payment of those invoices on Omni’s behalf. The payments to Envirovac actually went to Stover. Over the course of this scheme, Stover embezzled approximately $2.178 million from Omni. On his federal income tax return for 2007, Stover failed to report the income that he had embezzled from Omni.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Yael T. Epstein and Kenneth C. Vert of the Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Miami-Dade County Resident Sentenced in Identity Theft Scheme Involving over 8,600 Patients’ IdentitiesRead the Press Release
A Miami-Dade County resident was sentenced to 61 months in prison, followed by two years of supervised release.
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), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Noel Barrientos previously pled guilty to one count of possessing fifteen or more access devices (social security numbers of other people) and one count of aggravated identity theft.
According to court documents, law enforcement executed a search warrant at Barrientos’ residence based on suspected narcotics activity. During the search warrant, officers observed and recovered a total of 15 credit/debit cards that were located throughout the premises all in different names including names of men and women not associated with Barrientos or his residence. Three of the cards were located in Barrientos’ wallet.
Court documents also state that during the search warrant, law enforcement found a computer that contained a file with the names, dates of birth, and social security numbers of 8,678 unique patients. Agents determined that the list came from a doctor’s office located on Sunset Drive in South Miami. A former doctor’s office employee, Gillian Armstrong [1:14-cr-20339], had access to the patient list and sold it to Barrientos. Barrientos sold the names to other individuals who used the fraudulently obtained names to file fraudulent income tax returns. Law enforcement officers also tracked fraudulent income tax return filings to Barrientos’ residence.
On September 16, 2015, Armstrong was sentenced to 36 months in prison, followed by three years of supervised release for her role in the scheme. Armstrong previously pled guilty to one count of possessing fifteen or more access devices (social security numbers of other people) and one count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Brooke C. Watson.
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.
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIGUEL ANGEL LOPEZ-HERNANDEZ, age 23, a citizen of Mexico, pled guilty yesterday to a one-count Indictment for illegal reentry of a removed alien.
According to the Indictment, on or about October 26, 2014, LOPEZ-HERNANDEZ was found in the United States after having been officially deported and removed on or about May 9, 2011.
LOPEZ-HERNANDEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for March 26, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
McLaughlin Man Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Brett Charles Roach, age 27, was indicted on January 14, 2015. He appeared before U.S. Magistrate Judge William D. Gerdes on January 16, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges Roach was released from custody on a previously indicted charge, upon certain conditions imposed by the Court, including the condition that Roach attend all matters scheduled by the Court. On September 29, 2014, Roach was set to appear before the Honorable Charles B. Kornmann, U.S. District Judge, at Aberdeen, South Dakota, for jury selection. Roach is alleged to have knowingly failed to appear at this hearing, as required.
The charge is merely an accusation and Roach is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Roach was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Maryland Man Sentenced in Manhattan Federal Court to 20 Years in Prison for Sex Trafficking and Transporting A Minor Interstate for the Purpose of ProstitutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JABAR GILLIAM was sentenced in Manhattan federal court to 20 years in prison for trafficking a 16 year-old girl (the “Victim”) from Maryland to the Bronx and forcing her to engage in prostitution. GILLIAM was convicted of one count of sex trafficking of a minor by means of force, fraud or coercion and one count of transporting a minor interstate for the purpose of prostitution in September 2012 following a four-day trial before U.S. District Judge Thomas P. Griesa and a jury. GILLIAM was sentenced today by Judge Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Jabar Gilliam forced a young woman into prostitution, and repeatedly subjected her to abuse of all kinds and threats, in effect terrorizing her physically and emotionally. Gilliam deserved a heavy punishment and that is what he received. I would like to thank the Federal Bureau of Investigation, the New York Police Department, and the Maryland State Police Department for helping this Office prosecute and punish those who perpetrate the heinous crime of sex trafficking of minors.”
According to the evidence at trial and documents filed in the case:
In October 2011, GILLIAM recruited the Victim to travel to New York to work for him as a prostitute. In addition to physically and sexually assaulting her, Gilliam threatened both the Victim and her family if she did not continue to work for him. In December 2011, GILLIAM traveled with the Victim from Maryland to New York, and thereafter, he arranged for her to engage in commercial sex acts with various individuals. GILLIAM set the prices for the commercial sex acts, and kept all of the money for himself. While in New York, he also continued physically, sexually and psychologically abusing the Victim. On December 2, 2011, GILLIAM was arrested as he and the Victim were returning to the apartment in the Bronx where he had prostituted her earlier that day.
In addition to the prison term, GILLIAM, 32, of Hagerstown, Maryland, was sentenced to five years of supervised release, and ordered to pay restitution in the amount of $2,100 to the Victim.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Maryland State Police Department.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Kristy J. Greenberg is in charge of the prosecution.
Manhattan U.S. Attorney Announces That Historic $5.15 Billion Environmental and Tort Settlement with Anadarko Petroleum Corp. Goes into EffectRead the Press Release
More than $4.4 Billion of the Money Expected to Be Distributed to Fund Environmental Clean-Up and Claims; More than $600 Million for Tort Victims
Largest Litigation Recovery by Government for the Clean-Up of Environmental Contamination
Preet Bharara, the United States Attorney for the Southern District of New York, John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division (“ENRD”), and Cynthia Giles, Assistant Administrator of the U.S. Environmental Protection Agency, announced today that the historic settlement between the United States, co-plaintiff Anadarko Litigation Trust (the “Trust”), and Anadarko Petroleum Corporation and its affiliates (the “defendants”) has gone into effect. This settlement resolves fraudulent conveyance claims brought by the United States and the Trust against the defendants in the bankruptcy of Tronox Inc. and its subsidiaries. Today, pursuant to the settlement agreement, the defendants paid $5.15 billion, plus interest, to the Trust. The Trust is expected to distribute more than $4.4 billion to fund environmental clean-up and for environmental claims. The settlement constitutes the largest payment for the clean-up of environmental contamination ever obtained in a lawsuit brought by the Department of Justice.
Manhattan U.S. Attorney Preet Bharara said: “The Kerr-McGee Corporation spent decades despoiling our Nation’s natural resources, leaving a toxic legacy for communities across the nation, from Sidney, New York, to the Navajo Nation. Then, Kerr-McGee tried to escape the consequences of its misdeeds by transferring its most valuable assets to affiliates, leaving an insolvent shell behind, unable to pay its environmental liabilities. As today’s historic payment shows, the Government will not allow polluters to escape paying for the damage they inflict on our land, water and people, and we will hold accountable those who attempt to shield themselves from responsibility behind improper corporate transactions.”
Assistant Attorney General John C. Cruden said: “This recovery will lead to cleanups across the country that will undo lasting damage to the environment, including contamination of tribal lands, by Kerr-McGee’s businesses. This result emphatically demonstrates the Justice Department’s commitment to environmental justice for all Americans, and it fulfills the Department’s promise to hold accountable those who pollute and those who try to foist their responsibility for cleanup on the American taxpayer.”
EPA Assistant Administrator Cynthia Giles said: “If you pollute the environment, you should be responsible for cleaning it up. From Navajo Nation to low income neighborhoods across America, more than $4.4 billion will be put to work cleaning up toxic pollution. This historical environmental cleanup will have a lasting impact on American communities.”
Settlement Approval
As noted by United States District Judge Katherine B. Forrest, in approving the settlement in November, this case arises from a “series of transactions [by the Kerr-McGee Corporation] that resulted in the spin-off of Tronox, which Kerr-McGee left saddled with the massive environmental and tort liabilities it had accumulated over the course of decades of operating in the chemical, mining, and oil and gas industries, but without sufficient assets with which to address these liabilities.” For this reason, as the District Court explained, both the United States and the Tronox estate (now represented by the Trust) brought fraudulent conveyance claims against the defendants.
On April 3, 2014, the United States announced this settlement resolving the claims against the defendants, which was then subject to a period of public comment and judicial approval. After receiving and considering comments from the public, the United States sought approval of the settlement agreement, and on November 10, 2014, the district court approved the settlement as “fair and reasonable.” The deadline for any appeals from the district court’s decision passed on January 20, 2015, without any appeals having been taken and therefore the settlement agreement went into effect on January 21, 2015.
Today, pursuant to the settlement agreement, the defendants paid $5.15 billion, plus interest from April 3, 2014, to the Trust. Pursuant to the terms of prior agreements in the Tronox bankruptcy, the Government estimates that more than $4.4 billion of this recovery will be paid to the United States, state governments, the Navajo Nation, and four environmental response trusts created in the bankruptcy to clean up contaminated property. An estimated more than $600 million will be paid to a trust created to pay tort victims.
Mr. Bharara again thanked the many federal, state, and tribal officials who worked tirelessly on this matter, as well as the Trust, its trustee, and its counsel, for their critical work on this case.
This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of the Office’s Civil Division. Assistant U.S. Attorney Robert William Yalen is in charge of the case, which he handled along with Assistant U.S. Attorney Joseph Pantoja and Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of ENRD.
Manager in Loan Modification Scheme Sentenced to 36 Months in PrisonRead the Press Release
A Broward County resident was sentenced today by U.S. District Judge Kenneth Marra to 36 months in prison, to be followed by two years of supervised release and was ordered to pay $350,470.00 in restitution in a loan modification scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Jeffrey Charles Leroy Taylor, 40, of Fort Lauderdale, previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided. All ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Taylor’s co-defendants received initial sentences ranging from 21 months to 134 months in prison.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Jeffrey Taylor served as a team manager of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments. According to the Sentencing Memorandum filed by the defendant, Jeffrey Taylor previously played football for the University of Miami and the Tampa Bay Buccaneers.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – Income tax return preparer Simon Makangula has been ordered to prison for willfully aiding and assisting in the preparation of a false income tax return for a client, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI). Makangula pleaded guilty Oct. 15, 2014.
Today, U.S. District Judge Gray H. Miller sentenced ordered Makanagula to serve 18 months in federal prison and must pay $51,645.00 in restitution to the IRS.
Makangula was convicted of assisting in the preparation of one false U.S. Individual Income Tax Return. According to the plea agreement filed in the record of the case, Makangula admitted that the return contained two false dependents, a false refundable education credit, a false earned income credit and a false Schedule C loss from a sole proprietorship that the taxpayer did not have. Makangula admitted that the tax loss on the return in question was approximately $9,731.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.Lower Brule Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 20, 2015, by U.S. District Judge Roberto A. Lange.
Loren Lee Goodlow, a/k/a Loren Goodlow, Jr., age 25, was sentenced to 27 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Goodlow was indicted by a federal grand jury on July 15, 2014. He pled guilty on November 3, 2014.
The conviction stems from an incident on or about June 11, 2014, when Goodlow went to the house of his juvenile cousins and started drinking. The victim and his wife were standing outside talking when there was a confrontation between Goodlow and the victim, which resulted in the assault. The victim was airlifted to a hospital in Sioux Falls and he was diagnosed with a traumatic brain injury. The victim also suffered severe mixed hearing loss in his right ear and mild sensorineural hearing loss in his left ear.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Goodlow was immediately turned over to the custody of the U.S. Marshals Service.
Louisiana Man Sentenced to Prison for Failure to Update Sex Offender Registration While Residing in New MexicoRead the Press Release
ALBUQUERQUE – Undrio Antwanne Roebuck, 43, of Shreveport, La., was sentenced this morning in federal court in Las Cruces, N.M., to a year and a day in federal prison for failing to comply with the Sex Offender Registration and Notification Act (SORNA) while residing in Hobbs, N.M. Roebuck will be on supervised release for five years after completing his prison sentence. He also will be required to register as a sex offender after he completes his prison sentence.
U.S. Attorney Damon P. Martinez said that Roebuck was convicted for violating SORNA, known as the Adam Walsh Protection and Safety Act. SORNA requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations. SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the U.S., and aims to close gaps and loopholes that existed under prior law and generally strengthens the nationwide network of sex offender registration and notification programs.
“The Marshals Service remains committed to the safety of our many communities, and by working with our local, county, tribal and state law enforcement agencies, every investigative lead will be exhausted,” said U.S. Marshal Conrad E. Candelaria. “The goal is locating and apprehending sex offenders, a collaborative effort which has been embraced by law enforcement because many of these fugitives remain elusive and go through great lengths to avoid detection and apprehension. Through effective partnerships, our successes once again have resulted in a dangerous fugitive behind bars so he will no longer be a threat to our children, families and communities.”
Roebuck was arrested in Nov. 2013, in Shreveport, La., on an indictment charging him with failure to register as a sex offender while residing in Lea County, N.M. Roebuck was required to register as a sex offender because he had been convicted of sexually assaulting a minor in 1999. Based on that conviction, Roebuck is required to update his sex offender registration every 90 days for the rest of his life. Roebuck pled guilty to the indictment on March 11, 2014, without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the U.S. Marshals Service, the Lea County Sheriff’s Department and the Caddo Parish (Louisiana) Sheriff’s Department. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Local Man Sentenced on Wire Fraud and Interstate Transportation of Stolen Property ChargesRead the Press Release
St. Louis, MO – MARTIN BACHERT was sentenced to 18 months in prison involving his scheme to sell equipment to an out-of-state buyer, receive payment, but never deliver the equipment sold. Bachert also sold stolen property to another out-of-state victim.
According to court documents, in November 2012, Bachert, using the alias "Martin Federoa," told a California man, referred to in documents as "MR," that he worked for Emerson Electric Company and that he had connections to various companies to buy electric testing equipment. MR began purchasing equipment from Bachert, and arranged wire transfer payment to Bachert’s PayPal account. In early August 2013, Bachert sold MR additional merchandise for $15,800, which MR paid via wire transfer. Bachert admitted with his plea that he never intended to provide the equipment to MR. Instead, Bachert posed as his father and communicated to MR via text message that he had been in an accident, and while he was recovering in the hospital, someone broke into his van and stole the equipment he was going to sell to MR. Bachert then told MR that he was taking a job in the Ukraine and would be able to repay the money for the equipment, plus seven percent interest. However, Bachert after making even more false representations, ultimately never repaid the money or delivered the equipment. Instead, Bachert used the money he obtained from MR and another victim, to whom he sold stolen merchandise, to pay restitution to the Court at his sentencing in another case involving prior fraudulent and illegal conduct.
Bachert, St. Louis, Missouri, pled guilty last October to one felony count of wire fraud and one felony count of interstate transportation of stolen property. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Anthony Franks handled the case for the U.S. Attorney’s Office.Loan Broker Sentenced to 5 Years in Prison for Defrauding Investors of More Than $17.4 MillionRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, today to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and obstruction of justice from a $17.4 million investment fraud scheme. Judge Motz ordered Phelan to forfeit and pay restitution of $17,414,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement and court documents, Phelan and others were part of a fraudulent scheme carried out by Brian McCloskey and Patrick Belzner. McCloskey owned a real estate development business known as the McCloskey Group, LLC. Belzner, a home builder, began working with McCloskey in late 2008 or early 2009. Mervyn Phelan operated IAG Underwriters (IAGU) which maintained an office in Newport Beach, California. IAGU was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities. Phelan employed Gregory Grantham, an attorney who held the position of IAGU’s general counsel; and Sean Krondak who was the Vice President – Loan Officer & Underwriting. IAGU began working with the McCloskey Group to locate sources of financing for its projects in about 2009.
Beginning in 2009 and continuing through June 2011, McCloskey and Belzner persuaded a number of private lenders to loan funds to the McCloskey Group to establish that it had cash reserves or “liquidity” in connection with its efforts to secure funding for real estate development projects through IAGU. McCloskey and Belzner falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, an attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the lender’s funds, McCloskey and Belzner promised to pay substantial rates of interest.
Beginning in the late summer of 2010, Phelan and Grantham cooperated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade lenders to make loans to the McCloskey Group in order to establish “liquidity”; (2) telling the lenders that the funds had to be placed in an escrow account controlled by Sniffen; and by (3) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question. In particular, Phelan and Grantham repeatedly advised escrow account lenders that funding for a particular project was imminent when they knew this was not the case, and in one case falsely represented that they were holding millions of dollars in escrow funds tendered by one group of lenders. Krondak sent emails and other communications that he knew contained false information to victim lenders directly, or to Belzner, McCloskey and Sniffen to use in their contacts with the victim lenders.
Once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey, Sniffen, and other conspirators to remove those funds from the escrow accounts without the knowledge of the lenders. Belzner and McCloskey then used the stolen funds to repay earlier loans to the McCloskey Group and to Belzner personally; to meet ongoing business expenses of the McCloskey Group; and to support Belzner’s life-style. The total losses resulting from the scheme were approximately $20 million.
Phelan and Grantham also obstructed grand jury proceedings from September to December, 2012, while a grand jury in Maryland was continuing the investigation of the fraud scheme. On September 26, 2012, FBI agents served Phelan and Grantham with grand jury subpoenas requiring the production of documents relating to the scheme. By this time, it was publicly known that Belzner had been indicted for conspiracy to commit wire fraud. Phelan and Grantham agreed that they would not produce certain emails in their possession, because those emails would reveal their cooperation with Belzner and McCloskey in the scheme. The emails that Phelan and Grantham were willing to produce were provided to the FBI on November 19, 2012; incriminating emails were not produced or were deleted from their computers and compact discs.
Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware, was sentenced to 15 years in prison for wire fraud conspiracy, wire fraud and tax evasion, and was ordered to pay $19.805 million in restitution. Gregory E. Grantham, age 57, of Oceanside, California, was sentenced to five years in prison and ordered to forfeit and pay restitution of $17.4 million. Brian McCloskey, age 42, of Baltimore, and Kevin Sniffen, age 53, of Phoenix, Maryland, were sentenced to 41 months in prison and three years in prison, respectively, and both ordered to pay restitution of $15.850 million.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the FBI and IRS – Criminal Investigation for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Jefferson M. Gray and Kathleen Gavin, who prosecuted the case.
Little Eagle Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Adrian Spotted Horse, age 35, was indicted on January 13, 2015. He appeared before U.S. Magistrate Judge William D. Gerdes on January 16, 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 August 26, 2014, and November 17, 2014, Spotted Horse, 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, knowingly failed to register and update his registration as required by law.
The charge is merely an accusation and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Leader of Identity Theft Ring Sentenced to over 7 Years in Prison in “Instant Credit” Fraud SchemeRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Kier Hicks, a/k/a “Mouse,” age 41, of Baltimore, today to 94 months in prison followed by three years of supervised release for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use personal identity information to open instant credit accounts at retail stores and buy high value merchandise. Chief Judge Blake also entered an order that Hicks pay restitution of $194,674.60.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police; and Chief Gary Gardner of the Howard County Police Department.
According to his plea agreement, from May 8 to August 17, 2012, Hicks obtained compromised identity information from individuals over the internet, and paid for the information by sending money transfers to Eastern European countries. Hicks then obtained credit reports for the identities.
Hicks recruited individuals whom he knew and either took pictures of them or had them provide passport photos. He used these photos to create counterfeit identification documents, usually state driver’s licenses from the state where the individuals resided. These counterfeit licenses contained the personal identity information of the victim, but the pictures of his co-conspirators. In addition, he manufactured a counterfeit credit card bearing the embossed name of the victim.
Hicks provided his workers with the counterfeit driver’s licenses and credit cards, as well as information about the victim. Initially, new recruits “shadowed” an experienced participant for about a week to learn the scheme before they began to conduct transactions themselves. Co-defendants Ashley Avery, Tyrone Gregg, and at least three other individuals worked with Hicks. They used the identity information and counterfeit documents to apply for store “instant credit” accounts. If approved, they immediately purchased items up to the credit limit allowed. Some of the items purchased were given to Hicks, and some were retained by the co-conspirators. Hicks resold the fraudulently purchased items at a discount and gave his co-conspirators a percentage of the money he received.
During the course of the conspiracy, Hicks and his co-conspirators obtained credit in excess of $400,000, using the identity information of more than 50 institutional and individual victims. The Court determined at today’s sentencing that the scheme resulted in an actual loss of $194,674.60.
Hicks also made counterfeit identifications for others engaged in separate fraud schemes, including individuals prosecuted in U.S. v. Bratton-Bey, et al., Case No. 12-CR-04621, with actual losses of over $1.2 million, and U.S. v. Lavon Caldwell, Case Nos. 07-CR-00293 and 13-CR-04180, with actual losses of approximately $50,000.
Tyrone Kevin Gregg, age 45, of Baltimore; and Ashley Nicole Avery, age 28, of Baltimore, previously pleaded guilty to their participation in the scheme. Gregg was sentenced to 54 months in prison and ordered to pay restitution of $139,990.45. Sentencing is scheduled for Avery on March 11, 2015 at 11:00 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore and Howard County Police Departments and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Las Vegas Federal Court Permanently Bars Husband and Wife from Preparing Federal Tax Returns for Others and from Giving any Advice Related to Federal TaxesRead the Press Release
A federal court in Las Vegas has permanently barred a husband and wife from preparing federal tax returns for others and from providing any advice related to federal taxes, the Justice Department announced today.
Judge Richard F. Boulware II entered the injunction order after sanctioning Wayne Reeves and Diane Vaoga for willfully refusing to comply with previous court orders directing them to participate in discovery. The court had warned Reeves and Vaoga that sanctions, including entry of the injunction against them, might be imposed for failure to comply with court orders.
In its injunction order, the court found that Reeves orchestrated and promoted, and that Vaoga assisted in, an illegal tax scheme. According to the order, Reeves advised clients to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability. Reeves also instructed clients to name him, Vaoga or another trusted third party as a signatory on their trust accounts. Both Reeves and Vaoga acted as trustees and sent clients pre-signed blank checks to allow them access to their money, collecting fees in the process. Reeves and Vaoga advised clients that there were numerous tax benefits associated with these trusts, including that the income from the trusts was nontaxable and did not need to be reported on tax returns; that clients could deduct personal expenses and count them as business expenses of the trusts; that clients worked for the trusts and thus were paid in tax-deductible management fees; that clients no longer needed to file federal tax returns; and that there were no problems with the Internal Revenue Service (IRS) in making these financial arrangements. The court found that Reeves engaged in this conduct knowing that such actions would improperly result in the understatement of his customers’ tax liability.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Kotzebue Man Sentenced to 9 Years Imprisonment for Sexually Exploiting ChildrenRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kotzebue, Alaska man was sentenced in Federal Court in Anchorage on two counts of child sexual exploitation crimes. Culum Campbell was convicted of receipt and possession of child pornography. Campbell was using a peer to peer network to traffic child pornography, and had both distributed and received videos of children being sexually exploited.
Campbell, age 33, was sentenced January 23, 2014, by United States District Court Judge Sharon L. Gleason, to 9 years on each of the two convictions. Those sentences are to run concurrently to each other. Campbell’s prison terms will be followed by Federal supervised release for 16 years. Judge Gleason described the harm to the victims depicted in the videos as serious offenses. She stated that these crimes are not “just watching videos, they are making a market for this business,” and noted the continuing harm and pain caused to the victims. “When you are one of those viewers, you are dangerous.”
U.S. Attorney Loeffler stated, “The 9 year sentence in this case reflects the victimization perpetrated on innocent victims by Campbell. 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, Campbell was under investigation for trafficking in child pornography by the Federal Bureau of Investigation (FBI) and when a search warrant was executed at Campbell’s home in Kotzebue, 73 videos, including one that was close to an hour long, were found there.
Ms. Loeffler commends the FBI, the Kotzebue Police Department, and the Alaska State Troopers, members of the Alaska Internet Crimes Against Children Task Force, for their cooperation and investigation of this case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative 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.
Kotzebue Man Sentenced to 9 Years Imprisonment for Sexually Exploiting ChildrenRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kotzebue, Alaska man was sentenced in Federal Court in Anchorage on two counts of child sexual exploitation crimes. Culum Campbell was convicted of receipt and possession of child pornography. Campbell was using a peer to peer network to traffic child pornography, and had both distributed and received videos of children being sexually exploited.
Campbell, age 33, was sentenced January 23, 2014, by United States District Court Judge Sharon L. Gleason, to 9 years on each of the two convictions. Those sentences are to run concurrently to each other. Campbell’s prison terms will be followed by Federal supervised release for 16 years. Judge Gleason described the harm to the victims depicted in the videos as serious offenses. She stated that these crimes are not “just watching videos, they are making a market for this business,” and noted the continuing harm and pain caused to the victims. “When you are one of those viewers, you are dangerous.”
U.S. Attorney Loeffler stated, “The 9 year sentence in this case reflects the victimization perpetrated on innocent victims by Campbell. 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, Campbell was under investigation for trafficking in child pornography by the Federal Bureau of Investigation (FBI) and when a search warrant was executed at Campbell’s home in Kotzebue, 73 videos, including one that was close to an hour long, were found there.
Ms. Loeffler commends the FBI, the Kotzebue Police Department, and the Alaska State Troopers, members of the Alaska Internet Crimes Against Children Task Force, for their cooperation and investigation of this case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative 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.
Kewa Pueblo Man Sentenced to Seven Years in Federal Prison for Rape ConvictionRead the Press Release
ALBUQUERQUE – Javin Keith Reano, 22, a member and resident of Kewa Pueblo, N.M., was sentenced this morning to 84 months in federal prison for his aggravated sexual abuse conviction. Reano will be on supervised release for five years after completing his prison sentence. He will be required to register as a sex offender after he completes his prison sentence.
Reano was arrested in May 2014, on an indictment charging him with aggravated sexual abuse. According to court filings, on July 19, 2013, Reano sexually assaulted the victim, an Indian woman, in a location within Kewa Pueblo in Sandoval County, N.M.
Reano entered a guilty plea on Sept. 22, 2014, to the indictment and admitted raping the victim on July 19, 2013. In his plea agreement, Reano acknowledged forcing the victim to engage in a sexual act against her will.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jury Finds Waggaman Woman Guilty for Drug Importation ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced the jury trial conviction of YOLANDA SMITH, 34, of Waggaman, on all three counts, namely: conspiracy to import methylone from China into the United States; conspiracy to possess methylone with the intent to distribute; and possession of methylone with the intent to distribute. According to evidence and testimony introduced at trial, SMITH, along with three other co-defendants who pleaded guilty and testified as government witnesses at trial, provided her address to accept mail parcels from China containing approximately half-a-kilogram each of methylone. The parcels were intercepted by Customs and Border Protection agents in San Francisco, tested for the substance, and forwarded to this district for controlled deliveries by United States Postal Inspectors and Homeland Security Investigation agents. The parcel addressed to SMITH at her Waggaman residence was control-delivered on May 30, 2013, and SMITH was arrested soon after that.
SMITH faces a maximum of 20 years imprisonment, along with a $250,000 fine and three years of supervised release on each count of conviction. U.S. District Judge Helen G. Berrigan set sentencing for May 6, 2014.
U.S. Attorney Polite praised the work of Homeland Security Investigations, U.S. Customs and Border Protection, and the Border Enforcement Security Taskforce, the United States Postal Service, Jefferson Parish Sheriff's Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Michael E. McMahon and Michael S. Simpson were in charge of the prosecution.
Judge Sentences Former PA Turnpike Worker to 15 Years in Prison for Producing Child PornRead the Press Release
PITTSBURGH - A resident of Jeannette, Pennsylvania, has been sentenced in federal court to 15 years imprisonment, followed by 15 years supervised release, on his conviction of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Nora B. Fischer imposed the sentence on John S. Longo, 58.
According to information presented to the court, Longo, a retired employee of the Pennsylvania Turnpike Commission, from June 2009 through November 2010, requested another adult produce and send him digital images depicting the sexual exploitation of a child victim who was 12 years of age. The images included those produced on Jan. 30, 2010, of the minor victim by the other adult. In addition to retaining the images for his own benefit, Longo distributed the images to others over the internet, as well as posted some of the digital photographs on a Russian website that catered to child pornography.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations - Immigration and Customs Enforcement and the Pennsylvania State Police for the investigation leading to the successful prosecution of Longo.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Joplin Man Sentenced to 10 Years for Attempting to Entice a Minor for SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man has been sentenced in federal court for attempting to entice a minor for illicit sexual activity.
Erik Leroy Clark, 35, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool on Thursday, Jan. 22, 2015, to 10 years in federal prison without parole.
On Aug. 26, 2014, Clark pleaded guilty to the attempted coercion and enticement of a minor. Clark believed he was meeting a 10-year-old girl at a Joplin park for an illicit sexual encounter, which in reality was part of an undercover law enforcement investigation.
A Jasper County, Mo., Sheriff’s Department detective assumed an undercover identity and posted an advertisement on an online social networking Web site on July 14, 2014. The ad was titled “Looking for someone into incest/taboo things –w4m-40.” The ad included a narrative, which read: “Looking for someone who is practicing incest or is interested in incest. Mother daughter. No spammers put incest in subject line so I know you are serious. Disease free.”
Clark responded to the ad on July 20, 2014. The undercover detective told Clark that the ad was for someone to teach her 10-year-old daughter about sex. Very quickly, Clark started suggesting a meeting and said he was willing to help, but that the 10-year old girl’s mother needed to be present.
In subsequent e-mails, Clark offered to engage in various sexual activities with the 10-year-old girl and suggested meetings on several occasions. The undercover detective repeatedly told Clark no to each meeting request, but finally agreed to meet Clark at a park located in Joplin.
On Aug. 6, 2014, law enforcement officers identified Clark as he drove through the park, using a photo he had e-mailed to the undercover detective. Officers stopped Clark and arrested him. Upon initial contact, Clark immediately stated, “I knew it, I knew it, I knew I was going to get in trouble.” Officers searched his car and found a “Hello Kitty” ball, Durex tropical-flavored condoms and a bottle of Equate warming liquid personal lubricant.
Clark admitted to searching for incest pornography over the Internet on a regular basis, and that he had a curiosity that scared him because he could not control it.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
January Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 29 indictments charging 33 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Emmanuel Alvarado, age 26, of Omaha, is charged in a three-count Indictment. Count I of the Indictment alleges that on or about February 25, 2014, the defendant falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges on or about February 25, 2014, Alvarado made a false claim to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about February 25, 2014, the defendant used a Social Security card knowing said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.* Charles Baker, age 33, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute 50 grams or more of a mixture of methamphetamine between on or about August 14, 2013 and November 20, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Baker with possession with intent to distribute 5 grams of more of methamphetamine on or about November 20, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment.
* Howard Bassett, III, age 34, of Winnebago, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with assault with a dangerous weapon on or about August 3, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Bassett with assault resulting in serious bodily injury on or about August 3, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Juan F. Castano, age 57, of Bridgeport, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges the defendant with possession of a stolen firearm on or about December 6, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Castano with being an unlawful user of a controlled substance in possession of a firearm on or about December 6, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Guadalupe Chairez-De La Rosa, a/k/a Rosa Villagomez, a/k/a Guadalupe Chairez, age 36, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment alleges that on or about February 14, 2014, the defendant falsely represented a Social Security account number as belonging to her for the purpose of obtaining a benefit to which she was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges on or about February 11, 2014, Alvarado made a false claim to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Adalid Cruz-Funes, age 30, of St. Paul, Minnesota, is charged with illegal reentry into the United States on or about December 16, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Robert M. Davis, age 62, of Omaha, is charged with bank robbery of approximately $965.00 from the American National Bank, 9009 Maple Street, Omaha, Nebraska, on or about October 17, 2014. The maximum possible penalty if convicted is 25 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marcos De La Torre-Cases, age 57, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with distribution of methamphetamine on or about December 19, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the Indictment charges De La Torre-Casas with illegal reentry into the United States on or about December 20, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Herman A. Fessehai, age 30, of Bellevue, Washington, and Emanuel Haile, age 24, of Lynnwood, Washington, are charged with possession of unauthorized access devices on or about August 22, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ismael Godin-Sanchez, age 24, is charged with illegal reentry into the United States on or about December 15, 2014, following deportation after conviction for an aggravated felony. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Daniel Gonzalez-Gutierrez, age 35, of Blair, Nebraska, is charged with illegal reentry into the United States on or about January 8, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Kenneth E. Hart, age 42, of Wahoo, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about December 11, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment should be forfeited to the United States.
* Crispin Herra-Herra, age 28; Ines Rivadeneyra-Herrera, age 24; Jesus Munguia-Aguilar, age 32, all of Omaha; and Jose Consospo-Perez, age 26, are charged with conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine from an unknown date but at least as early as December 8, 2014, and continuing to on or about December 9, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment should be forfeited to the United States.
* Albert H. Hines, age 49, of Lincoln, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with production of child pornography between on or about August 31, 2005 to on or about September 22, 2006. The maximum possible penalty if convicted is 30 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Hines with receipt and distribution of child pornography from on or about July 31, 2011, and continuing to on or about May 14, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count III of the Indictment charges the defendant with possession of child pornography on or about May 14, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* David Johnson, age 47, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with tax evasion during the years 2008, 2009, and 2010. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Johnson with making a false statement on or about March 14, 2012. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Rolando Lorenzo-Nicolas, age 35, of Omaha, is charged with illegal reentry into the United States on or about November 14, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Luis Martinez, a/k/a Victor Manuel Godinez Milian, a/k/a Victor Manuel Milian Godinez, a/k/a Omar Alexis Barguez, a/k/a Omar Vargas Perez, a/k/a Omar Alexisbar Perez, a/k/a Omar Perez, a/k/a Luis Soto Martinez, age 30, of Bellflower, California, is charged with possession with intent to distribute 500 grams of more of a mixture of methamphetamine on or about November 14, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Leonides Pena-Ramirez, age 43, of Omaha, is charged in a two-count Indictment. Count I of the Indictment alleges that on or about March 6, 2014, the defendant falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Pena-Ramirez with illegal reentry into the United States on or about March 6, 2014, following deportation after conviction for an aggravated felony. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jebert Pena-Soto, age 35, of Bellevue, is charged in a three-count Indictment. Count I of the Indictment alleges that on or about August 25, 2014, the defendant used a Social Security card and Lawful Permanent Resident Card knowing said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about August 25, 2014, Pena-Soto falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with illegal reentry into the United States on or about December 8, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Leonel Perez-Cordova, age 28, of Omaha, is charged with illegal reentry into the United States on or about December 9, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Rafael Rangel-Villalon, age 35, of Omaha, is charged with illegal reentry into the United States on or about January 8, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jorge Robles-Aguirre, age 33, is charged with illegal reentry into the United States on or about October 30, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Angel Sauzo-Martinez, age 38, of Omaha, is charged with receipt and distribution of child pornography from at least on or about February 12, 2014, and continuing to on or about October 30, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Lawrence A. Smith, age 20, of Walthill, Nebraska, is charged with failure to register as a sex offender from on or about November 6, 2014, and continuing until November 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Artemio Sotelo-Zagal, age 39, of Madison, Nebraska, is charged with illegal reentry into the United States on or about October 1, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Raymond A. Vanvalkenburg, age 30, of Bellevue, Nebraska, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine on or about November 10, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Vanvalkenburg with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. Count III of the Indictment charges the defendant with felon in possession of a firearm on or about November 10, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release and a $100 special assessment.
* Bernardo Vidal Osorio, age 24, is charged with illegal reentry into the United States on or about September 7, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Joe L. Welch, age 39, of Omaha, is charged with felon in possession of a firearm on or about December 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Gary Wilson, age 64, of North Platte, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession of unregistered firearms, specifically destructive devices, on or about December 17, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Wilson with possession of firearms by a prohibited person on or about December 17, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.Jacksonville Man Sentenced for Drug Distribution, Firearm, and Money Laundering ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that on January 20, 2015 in federal court, United States District Judge Terrence W. Boyle sentenced JONATHAN BAYSDEN , 25, of Jacksonville, North Carolina to a total of 120 months imprisonment, followed by 3 years of supervised release.
BAYSDEN was named in a seven count Indictment filed on May 7, 2014. On July 14, 2014, BAYSDEN pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute a Quantity of Oxycodone; Possession of a Firearm in Furtherance of a Drug Trafficking Offense; and Conspiracy to Launder Monetary Instruments from July 2010, to May 7, 2014.
According to the investigation, the Jacksonville Police Department, the Onslow County Sheriff’s Office, the United States Postal Inspection Service and Homeland Security Investigations opened an investigation into BAYSDEN’s drug trafficking activities in 2010. Based on that investigation, BAYSDEN was arrested on state charges in August of 2010 after a package containing just under a kilogram of marijuana was intercepted while it was in transit to BAYSDEN. A search of BAYSDEN’s residence revealed a loaded .45 caliber handgun and other items associated with drug trafficking.
BAYSDEN was released on bond. While his case was pending, BAYSDEN was arrested again in December of 2010 after the United States Postal Inspection Service intercepted a package containing Oxycodone that was intended for BAYSDEN. BAYSDEN was again arrested on state charges and drug paraphernalia was seized again.
BAYSDEN was again arrested in February of 2014 after the United States Postal Inspection Service intercepted two packages containing Oxycodone that were intended for BAYSDEN. A search warrant was again executed at BAYSDEN’s residence where investigators seized Fentanyl, Oxycontin, hydrocodone, marijuana and a loaded .40 caliber handgun. Further investigation by law enforcement determined that BAYSDEN was receiving shipments of Oxycontin from an international source, and then selling the Oxycontin in the Jacksonville and Greenville areas. During the course of the conspiracy, BAYSDEN sent $598,796.82 overseas to pay for illegally imported Oxycontin.
Investigation of this case was conducted by the United States Postal Inspection Service, Homeland Security Investigations, the Internal Revenue Service Criminal Investigation, the Jacksonville Police Department, and the Onslow County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells represented the government.
Indiana County Woman Pleads Guilty to Defrauding Social Security of $154K in BenefitsRead the Press Release
PITTSBURGH – An Indiana County resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Joyce Anne Gromley, 71, of Commodore, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that from in and around April 1986 and continuing until in around March 2014, Gromley converted to her own use $154,293.00 in Social Security Income Benefits from the Social Security Administration.
Judge McVerry scheduled sentencing for May 15, 2015. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General conducted the investigation that led to the prosecution of Joyce Anne Gromely.
Illegal Criminal Alien Sentenced to Federal PrisonRead the Press Release
Deported Alien Returns to Southern Oregon and Continues Trafficking HeroinMEDFORD, Ore. – Zeus Apolo Guzman-Aguilar, 37, from Mexico was sentenced to federal prison for illegally reentering the United States. On Tuesday, January 20th, Senior U. S. District Judge Owen M. Panner sentenced Guzman-Aguilar to 57 months in prison following an earlier deportation and conviction for drug trafficking.
On December 17, 2013, the Medford Police executed a search warrant at Guzman-Aguilar’s residence in Medford after receiving information that he had heroin packaged for sale at the residence. Police seized heroin and digital scales during the search. Defendant had acquired both heroin and cocaine and was breaking them down for sale. On February 5, 2014, he was convicted in state court for delivery of heroin and sentenced to 21 months in prison.
Immigration and Custom Enforcement agents became aware that Guzman-Aguilar was detained in state custody after the state drug conviction and also confirmed he had been sent back to Mexico on six prior occasions after earlier drug convictions. On June 17, 2013, he was deported from the United States following his release from state prison. Within four months of his deportation, he again illegally reentered the United States and returned to Medford for the specific purpose of continuing to sell and distribute heroin in the Medford area.
The case was investigated by Immigration and Customs Enforcement and was prosecuted by Assistant U.S. Attorney Byron Chatfield.
Hopedale Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
BOSTON – John Faherty, 56, of Hopedale, Mass. pleaded guilty to an information charging him with filing a false federal income tax return. U.S. District Judge F. Dennis Saylor, IV scheduled sentencing for April 17, 2015.
Faherty’s wife received substantial commissions as a manufacturers’ representative, promoting products from various factories to retailers. Faherty, who compiled the income and expenses for his wife’s business, repeatedly withheld a portion of the commissions his wife received from their return preparer. As a result, the returns prepared, and filed with the Internal Revenue Service were false in that they failed to report a significant portion of his wife’s income. In total, the couple owed an additional $100, 678 on the income Faherty failed to report between 2007 and 2009.
The charging statute provides a maximum statutory sentence of no greater than three years in prison, one year of supervised release, and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen Heymann of Ortiz’s Economic Crimes Unit.
Historic $5.15 Billion Environmental and Tort Settlement with Anadarko Petroleum Corp. Goes into EffectRead the Press Release
A historic settlement reached with Anadarko Petroleum Corp. and Kerr McGee has gone into effect, allowing funds to be disbursed for cleanups across the country, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Assistant Administrator Cynthia Giles of the U.S. Environmental Protection Agency (EPA).
This settlement resolves fraudulent conveyance claims brought by the United States and the Anadarko Litigation Trust, the trust against Anadarko Petroleum Corporation and its affiliates, the defendants, in the bankruptcy of Tronox Inc. and its subsidiaries. Today, pursuant to the settlement agreement, the defendants paid $5.15 billion, plus interest, to the trust. The trust is expected to distribute more than $4.4 billion to fund environmental clean-up and for environmental claims. The settlement constitutes the largest payment for the clean-up of environmental contamination ever obtained in a lawsuit brought by the Department of Justice.
“This recovery will lead to cleanups across the country that will undo lasting damage to the environment, including contamination of tribal lands, by Kerr-McGee’s businesses,” said Assistant Attorney General Cruden. “This result emphatically demonstrates the Justice Department’s commitment to environmental justice for all Americans, and it fulfills the department’s promise to hold accountable those who pollute and those who try to foist their responsibility for cleanup on the American taxpayer.”
“The Kerr-McGee Corporation spent decades despoiling our nation’s natural resources, leaving a toxic legacy for communities across the nation, from Sidney, New York, to the Navajo nation,” said U.S. Attorney Bharara. “Then, Kerr-McGee tried to escape the consequences of its misdeeds by transferring its most valuable assets to affiliates, leaving an insolvent shell behind, unable to pay its environmental liabilities. As today’s historic payment shows, the government will not allow polluters to escape paying for the damage they inflict on our land, water and people, and we will hold accountable those who attempt to shield themselves from responsibility behind improper corporate transactions.”
“If you pollute the environment, you should be responsible for cleaning it up,” said EPA Assistant Administrator Giles. “From the Navajo Nation to low income neighborhoods across America, more than $4.4 billion will be put to work cleaning up toxic pollution. This historical environmental cleanup will have a lasting impact on American communities.”
As noted by U.S. District Judge Katherine B. Forrest, in approving the settlement in November, this case arises from a “series of transactions by the Kerr-McGee Corp. that resulted in the spin-off of Tronox, which Kerr-McGee left saddled with the massive environmental and tort liabilities it had accumulated over the course of decades of operating in the chemical, mining, and oil and gas industries, but without sufficient assets with which to address these liabilities.” For this reason, as the district court explained, both the United States and the Tronox estate, now represented by the trust, brought fraudulent conveyance claims against the defendants.
On April 3, 2014, the United States announced this settlement resolving the claims against the defendants, which was then subject to a period of public comment and judicial approval. After receiving and considering comments from the public, the United States sought approval of the settlement agreement, and on Nov. 10, 2014, the district court approved the settlement as “fair and reasonable.” The deadline for any appeals from the district court’s decision passed on Jan. 20, 2015, without any appeals having been taken and therefore the settlement agreement went into effect on Jan. 21, 2015.
Today, under the settlement agreement, the defendants paid $5.15 billion, plus interest from Apr. 3, 2014, to the trust. Pursuant to the terms of prior agreements in the Tronox bankruptcy, the government estimates that more than $4.4 billion of this recovery will be paid to the United States, state governments, the Navajo nation and four environmental response trusts created in the bankruptcy to clean up contaminated property. An estimated more than $600 million will be paid to a trust created to pay tort victims.
This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of the Office’s Civil Division. Assistant U.S. Attorney Robert William Yalen is in charge of the case, which he handled along with Assistant U.S. Attorney Joseph Pantoja and Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of the Department of Justice’s Environment and Natural Resources Division.
Heroin Trafficker Pleads Guilty in Federal Court; Faces Additional Federal Prison Term for Violating Terms of ProbationRead the Press Release
PROVIDENCE, R.I. – Andres Garay, 27, of Providence, faces between 5 – 40 years in federal prison when he is sentenced by U.S. District Court Chief Judge William E. Smith on April 10, 2015, having pleaded guilty today to possessing with the intent to deliver more than 100 grams of heroin, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Additionally, according to court documents, at sentencing, the government will recommend that Garay serve a consecutive term of imprisonment of between 12 – 24 months for violating the terms of federal probation imposed in August 2011, for possession of cocaine with the intent to distribute. The court imposed a term of five years probation in that matter.
According to information presented to the court, on June 25, 2014, Providence Police encountered Garay outside his Providence resident where he was found to be in possession of two glassine packets of heroin. A subsequent investigation at the scene led Providence Police to believe that additional quantities of heroin may be stored inside Garay’s residence. A search of the residence resulted in the seizure of 1,850 glassine packets containing various amounts of heroin, two coffee grinders with a total of more than 118 grams of heroin, and various items used in the packaging and distribution of heroin.
Garay has been detained since his arrest.The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.
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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]Garrett County Attorney Indicted in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Angela M. Blythe, age 51, of Oakland, Maryland, on charges of conspiracy, bank fraud and making a false statement to a bank. The indictment was returned on December 16, 2014, and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the four count indictment, Blythe was an attorney licensed to practice in Maryland and West Virginia, with an office in Oakland, Maryland. The indictment alleges that Blythe, who also acted as a settlement attorney for real estate transactions, participated in a scheme with Samuel R. VanSickle, to defraud financial institutions. Specifically, the indictment alleges that Blythe prepared deeds, mortgages and notes for VanSickle in false identities, then recorded those fraudulent documents in the official land records of Garrett County, Maryland and Preston County, West Virginia, which concealed VanSickle’s ownership and control of the properties. Blythe also allegedly conducted property settlements in which VanSickle participated as buyer, seller and/or borrower through the use of false identities, which Blythe concealed from the lenders. The indictment alleges that Blythe failed to conduct the settlement transactions as described on the settlement statement and paid over the seller’s proceeds as VanSickle directed.
The indictment also seeks the forfeiture of $1,725,000, alleged to be proceeds of the scheme to defraud the bank.
Blythe faces a maximum sentence of 30 years in prison for the conspiracy and for the bank fraud; and 30 years in prison for each of two counts of making a false statement to a bank. An initial appearance has not yet been scheduled.
Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 50, of Accident, Maryland, and Louis W. Strosnider, III, were previously indicted by a federal grand jury on conspiracy and bank fraud charges in a related case. VanSickle is scheduled to go to trial on March 16, 2015. On August 7, 2014, Strosnider pled guilty to conspiracy to commit bank fraud and is scheduled for sentencing on April 9, 2015.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Joyce K. McDonald, who is prosecuting the case.
From United States Attorney William J. Hochul, Jr. and Immigration and Customs Enforcement, Homeland Security Investigations Special Agent in Charge James C. SperoRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Over 150 years ago this month, President Abraham Lincoln signed the Emancipation Proclamation abolishing slavery. Sadly, however, the pernicious practice continues. In the past year alone, our Offices have prosecuted twenty persons for engaging in human trafficking - modern day slavery.Directed at those whose acts span from forcing children into prostitution to coercing undocumented aliens to work long hours in a wide variety of legal and illegal industries, the federal statute protects against a wide array of exploitation directed at society’s most vulnerable. Statistics tell us that millions are enslaved world-wide, and that in the United States alone, over 250 children are taken each and every day by criminals who seek to exploit them.
January has been declared Human Trafficking Awareness Month because the crime is so pervasive, and the damage to victims so vicious. It provides the opportunity to dispel myths, including that children/victims are runaways. In fact, our experiences suggest that those victimized are not merely the troubled but the child next door. Lured by predators through drugs, threats of violence, or even the cell phone that virtually all carry, no child is immune from being targeted by these predators.
The best protection lies in recognizing the scope of the problem. Children and parents should also remember common sense tips – all of which begin with “T”:
Young people, watch your TECHNOLOGY, including internet-connected phones, computers, on-line games and social media sites. The THREAT does not come solely from men, women also are predators and lookouts for victims. Watch your TALK, as strangers look and listen for vulnerable children. TRUST your gut, and always TURN to parents, counsellors and loved ones at any sign of danger.
For parents, recognize the THREAT, TALK to your child, and be aware that traffickers most often TARGET the young, lonely, alienated or those who have no one to protect them.
Our Offices have many other helpful tips. Rest assured that with your help we will continue aggressively to prosecute modern day slavers so that we will not have to look to a second Emancipation Proclamation to eliminate this type of involuntary servitude.
Former Postal Service Employee Sentenced for Stealing and Embezzling over 20,000 Pieces of MailRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jeffrey L. Shipley, age 48, of Millersville, Maryland today to 20 months in prison followed by three years of supervised release for stealing and destroying mail while employed as a postal employee. Judge Hollander also entered an order that Shipley pay $19,358.75 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to his plea agreement, Shipley worked as a postal service carrier beginning in 1993. From about 2005 to March 10, 2014, Shipley stole and embezzled mail. Shipley was a letter carrier at the Brooklyn Carrier Annex from 1994 to January 2007, at the Parkville Branch until August 2007, and at the Catonsville Carrier Annex from August 4, 2007 to 2014.
Shipley embezzled mail that he was entrusted to deliver on his assigned route, and stole mail directly from the Catonsville Carrier Annex that was not part of his assigned route. Shipley also took Postal Service property, including stools, mail bags, signs and a mirror, valued at over $500.
Agents executed a search warrant at Shipley’s residence on March 10, 2014 and at a storage facility that he rented in Glen Burnie on April 18, 2014. Agents seized 20,413 pieces of mail, including gift cards and credit cards. Agents also seized 55 gift cards and 15 credit cards which were located separately from the stolen and embezzled mail, along with prescription bottles of medicine, checks, passports, a U.S. citizenship and immigration card, jewelry, clothes, books, a Nook, sunglasses and other items.
The total loss resulting from the scheme is over $10,000 and involved over 250 victims.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service - OIG for its work in the investigation and thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Former New Orleans Police Officer Pleads Guilty to Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACIE MEDUS, age 39, of New Orleans, pled guilty yesterday to theft of government funds.
According to court documents, MEDUS admitted that she defrauded the federally funded Small Rental Property Program, a Louisiana Road Home program to enable low-income families displaced by Hurricane Katrina to return to Louisiana. The program provided money for landlords to repair units to be rented at specified low rates to approved low-income tenants. Road Home required that tenants be approved for income eligibility and to reside in units prior to landlords receiving funds.
MEDUS obtained preliminary approval for an award by representing to Road Home that two low-income individuals were residing in her rental property and that they were paying low, Road Home-authorized rents. To support her application, MEDUS submitted a purported lease for each tenant. The leases were false in that they indicated that MEDUS charged the authorized rents when in fact she actually charged her unwitting tenants higher, impermissible rents. Additionally, one of the leases was also false in that it listed an approved low-income tenant, when in fact a different person resided there instead.
At her January 2010 award closing, MEDUS reaffirmed that the tenant of the first unit was paying the approved rent amount, knowing that in fact she had been continually overcharging him. MEDUS also reaffirmed that she was renting the second unit to the previously reported purported tenant and charging the authorized rent. In truth, she instead had been continually renting to an unreported person and charging more than the authorized rent. Based on these renewed misrepresentations, Road Home issued MEDUS $158,700.
When she accepted the award, MEDUS acknowledged that she could be legally required to repay it if she failed to abide by its conditions. Unbeknownst to Road Home, MEDUS immediately violated the conditions by continuing to overcharge her tenants and by renting to the unreported tenant. In October 2010, MEDUS submitted a purported lease to Road Home indicating that a new tenant would pay the authorized rent. Again, the lease was false, as MEDUS actually charged her new unwitting tenant a higher, impermissible rent.
MEDUS, who was employed as a New Orleans Police Department police officer at the time of the crime, was suspended upon being charged and resigned prior to pleading guilty. MEDUS faces up to ten years’ incarceration and a fine of up to twice the theft amount. Sentencing is scheduled for April 30, 2015 before the Honorable Mary Ann Vial Lemmon.
U.S. Attorney Polite praised the work of the Department of Housing and Urban Development - Office of Inspector General and the Federal Bureau of Investigation in investigating this matter and thanked the New Orleans Police Department’s Public Integrity Bureau and the Internal Revenue Service’s Criminal Investigation Division for their assistance. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
Former Hamilton Man Sentenced to Prison for Bankruptcy FraudRead the Press Release
MISSOULA – A former Hamilton man who concealed assets from a bankruptcy trustee and lied under oath during a bankruptcy deposition was sentenced today to four months imprisonment and four months home confinement by the U.S. District Court for the District of Montana. Timothy James Pulliam, a 67-year-old contractor from Las Mesa, California, was convicted of two counts of concealing assets and one count of false oath in bankruptcy after being found guilty during a two-day jury trial.
In a sentencing memorandum filed with the court, the U.S. Attorney’s Office told the court that Pulliam and his wife filed for bankruptcy on April 7, 2010. According to a deposition of their former attorney, prior to filing the Pulliams’ schedules, the attorney met with the Pulliams for over twenty-four hours over two days during which the Pulliams discussed a 1957 Thunderbird extensively. It was Pulliams’ plan to sell the car in order to raise enough money to finish a large house the Pulliams were building in Hamilton. The Thunderbird was listed in the Pulliams’ bankruptcy schedules as personal property valued at $80,000. An enclosed trailer was also listed in their bankruptcy schedules with a value of $10,000.
Assistant U.S. Trustee Neal Jensen held a section 341 meeting of creditors on June 17, 2010. Jensen asked Pulliam how he planned to maintain the Chapter 11 case. Pulliam responded, “I’d like to sell the ‘57 T-Bird. It was a car that I had when I was—my first car in high school, and I kept it all these years.” Pulliam also stated, “I’m the second owner of the car.”
On July 16, 2010, the Pulliams’ Chapter 11 bankruptcy was converted to Chapter 7 on a motion by the U.S. Trustee. Chapter 7 Trustee Richard Samson held a meeting of creditors on September 10, 2010. At the meeting, Pulliam stated that he had a title to the Thunderbird, and he had an enclosed 2006 thirty-foot trailer at his residence.
On October 4, 2010, Pulliam, Samson and a classic car appraiser met at the Pulliams’ residence. Pulliam supplied the keys to a number of his vehicles but claimed that he could not find the keys to the Thunderbird. Samson suggested that they put the car in neutral in order to move it, but Pulliam objected, stating that the car was not insured if it went into possession of a third party.
Sometime between October 4th and October 9th, 2010, the Thunderbird and enclosed trailer disappeared. Samson spoke with Pulliam, who stated that he had no idea what happened to the Thunderbird.
Assistant U.S. Trustee Jensen conducted a deposition of Pulliam on November 10, 2010, to discuss the Thunderbird. By that time Pulliam stated, under oath, that he had given the car to his son in 2005. Pulliam supported his claim by asserting that the car’s title listed “Timothy J. Pulliam,” a name shared by his son. Pulliam stated that he suspected that his son had taken the car and trailer from Pulliams’ residence without Pulliam’s knowledge, but he did not know that for certain. Pulliam also indicated that the first time he had seen his bankruptcy schedules was at the Chapter 7 meeting of creditors on September 10, 2010, and he had neither reviewed nor signed the schedules before they were filed.
On November 14, 2010, a new attorney filed amended schedules on behalf of the Pulliams. The schedules, signed by Pulliam under penalty of perjury, no longer listed the Thunderbird and trailer as the Pulliams’ property.
On December 13, 2010, Samson continued the Chapter 7 meeting of creditors he had begun on September 10th. Pulliam admitted he had lied under oath at the September 10th hearing and, this time, claimed that he called his son and told him to come get the car.
In February 2011, a family member contacted Pulliam’s son about the 1957 Thunderbird. Pulliam’s son traveled from California to Montana, where his father met him. Pulliam asked his son to state that he had possessed and owned the 1957 Thunderbird and enclosed trailer. On February 10, 2011, Pulliam’s son testified in the manner requested by his father in the United States Bankruptcy Court for the District of Montana. In fact, Pulliam’s son had never owned nor been in possession of the 1957 Thunderbird and trailer.
Prior to the hearing, on February 9, 2011, Samson had filed an adversary proceeding against Pulliam’s son seeking a declaratory judgment that the 1957 Thunderbird and trailer were property of the bankruptcy estate. Pulliam created false bills of sale in an attempt to show he had transferred the Thunderbird and trailer to his son. On June 10, 2011, the bankruptcy court entered a default judgment against Pulliam’s son declaring that the Thunderbird and trailer are property of the Chapter 7 estate.
On October 30, 2012, an IRS Special Agent interviewed one of Pulliam’s neighbors. The neighbor stated that in the fall or early winter of 2010, Pulliam asked if he could store a vehicle on the neighbor’s property. The neighbor agreed to help, and Pulliam showed up a day or two later with a 1957 Ford Thunderbird. Later the neighbor also discovered a white utility trailer on his property; the Thunderbird was no longer present. According to the neighbor, the trailer remained on his property for one or two months before it disappeared. Just prior to the trailer’s disappearance, Pulliam stated he needed to turn the Thunderbird over to the bankruptcy court in order to pay some of his creditors.
California DMV documents show that Pulliam and his mother were owners of the Thunderbird, and its title was never transferred to Pulliam’s son.
The case was investigated by the U.S. Trustee’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service. Assistant U.S. Attorney Chad Spraker prosecuted the case for the U.S. Attorney’s Office
Former Davenport Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
DAVENPORT, IA – On January 22, 2015, Shawn Daniel Starling Moore, age 25, formerly of Davenport, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 72 months in prison for possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Moore was also ordered to serve five years of supervised release following the imprisonment, pay restitution to a victim in the amount of $500, and to pay $100 to the Crime Victims Fund. A cellular telephone was ordered to be forfeited.
On August 1, 2013, two adults came to the headquarters of the Davenport, Iowa, Police Department to report that they were aware that images of children engaged in sexually explicit conduct could be seen on Moore’s cellular telephone. Moore had left his cellular telephone at their residence and one of them went through photographs stored in the telephone and saw child pornography. Moore later admitted that he viewed child pornography on the cellular telephone and that he used the cellular telephone to save and store some of the child pornography that he received. A search warrant was obtained to search the contents of the cellular telephone and police found numerous images of child pornography on the device.
On October 28, 2014, Moore entered a guilty plea to the charge of possession of child pornography and agreed to forfeit his cellular telephone.
This case was investigated by the Davenport, Iowa, Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Florida Marine Life Dealers Plead Guilty to Illegal Wildlife TraffickingRead the Press Release
Two Florida marine life dealers pled guilty today before U.S. Magistrate Judge Lurana Snow in Key West, Florida, for trafficking wildlife.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracey Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, made the announcement.
Robert V. Kelton, 60, of Hollywood, and Bruce Brande, 59, of Cooper City, pled guilty to conspiring together and with others to transport, sell, receive, acquire, and purchase Live Rock and invertebrates, specifically Ricordea florida, with a fair market value in excess of $350, knowing the wildlife was taken, possessed, transported, sold, in violation of the laws and regulations of the State of Florida, and for knowingly making and submitting false records and accounts for wildlife, by submitting required declarations to the U.S. Fish and Wildlife Service which intentionally understated the value of the wildlife, said wildlife having been and intended to be imported, transported, sold, purchased, and received from a foreign country.
According to the information filed against the defendants, a joint factual statement submitted to the Court, and statements in Court, beginning in October 2006, the defendants conspired with different marine life collectors located in the Florida Keys to purchase quantities of live rock with marine life attached to it, such as Ricordea florida, which was illegally harvested and transported from the Florida Keys National Marine Sanctuary (FKNMS). Live rock is an essential building block of the reef system of the Florida Keys. To conceal the transactions, Kelton produced numerous false invoices through October 2010, reflecting sales of live rock with marine life attached, purportedly imported from Haiti, to the marine life collectors on Grassy Key, to serve as a cover in case questions arose regarding the legality of the products, which were actually harvested from the FKNMS. Records seized by the federal agents reflect $37,108.41 in wholesale sales of live rock with Ricordea and other marine life by Kelton and Brande through the business known as D. R. Imports, Inc. (DRI), a Florida corporation with its principal place of business in Miami. The records also demonstrated that from November 12, 2008 through 2010, 11,567 Ricordea polyps were sold to DRI for a wholesale price totaling $38,637.50, half of that value being attributable to live rock illegally harvested from the FKNMS.
The government’s evidence includes photographs, shipping, and sales records reflecting that from February 2011 through May 2011, Kelton and Brande, shipped and sold in interstate commerce to a dealer in Rhinelander, Wisconsin, large pieces of live rock with a wholesale value of almost $5,000, bearing Ricordea florida and Zoanthus pulchellus which they knew had been illegally harvested from the FKNMS. The live rock was falsely advertised for sale as originating from Haiti. Unknown to the various co-conspirators federal agents had begun to monitor their harvest and sales activities, including covertly recording harvest operations and marking illegally acquired products to trace them through their interstate sales.
Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, the NOAA has established regulations governing the conduct of activities within the Sanctuary. Title 15, Code of Federal Regulations, Section 922.163(a)(2) prohibits the removal of, injury to, or possession of coral or live rock. Section 922.163(a)(2)(I) prohibits moving, removing, taking, harvesting, damaging, disturbing, breaking, cutting, or otherwise injuring any living or dead coral or coral formation, or attempting any of these activities.
Florida Administrative Code, Section 68B-42.008, prohibits the harvest of live rock. Florida Statute 370.07 requires that a person who sells salt water marine related wildlife such as Ricordea florida, to hold a State wholesale and retail license. None of the individuals and corporations, including the defendants herein, were authorized to harvest or attempt to harvest any live rock from the FKNMS or State waters during the time period relevant to this Information, or held the marine related wholesale and retail permits required by Florida Statute 370.07
During the period from January 2009 through December 2012, Kelton and Brande made and submitted declarations to the U.S. Fish and Wildlife Service and Customs and Border Protection which were required by law in order to secure the clearance through those agencies of shipments of marine wildlife imported by and at their direction from the Dominican Republic and Haiti for commercial re-sale. Comparison of the entry documents submitted to the government agencies with records seized from the business premises of DRI pursuant to execution of a federal search warrant revealed a consistent pattern of misrepresentation in the records. By linking and comparing documents related to each transaction (e.g., air waybill, CBP entry, FWS declarations, and commercial invoices), investigators identified importations from the Dominican Republic and Haiti businesses for which a second set of “supplier’s” invoices existed at DRI, reflecting commercial values significantly higher than on the invoices and records submitted by Kelton and Brande on behalf of DRI. The value declared to the federal agencies in the course of the presentation of the importations for clearance was intentionally understated by $352,594.
Sentencing for Kelton and Brande is scheduled for March 23, 2015 at 2:00 p.m. in Key West before U.S. District Judge James Lawrence King. Kelton and Brande each face possible up to five years in prison on each of the two counts to which they have pled. Additionally, they may be fined up to $250,000 per count of conviction, ordered to make restitution to identifiable victims of the offenses, and placed on supervised release for up to three years per count.
Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement, analysts with the NOAA Office of Law Enforcement Crime Trade Analyst Team, and the U.S. Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
First Cousins from La Plant Plead Not Guilty to IncestRead the Press Release
United States Attorney Brendan V. Johnson announced that a La Plant, South Dakota, man and woman have been indicted by a federal grand jury for Incest.
Nicholas Ray White Eagle, age 27, and Fawn Lynn Scott, age 22, were indicted on January 14, 2015. They appeared before U.S. Magistrate Judge Mark A. Moreno on January 15, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each of them is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each charge. Restitution may also be ordered.
On or about October 21, 2013, first cousins White Eagle and Scott had consensual sexual intercourse that produced a child with a genetic disability. This is the third child born to these two cousins. At the time of the sexual act, White Eagle and Scott were not legally married and were within the degrees of consanguinity with each other, within which a marriage was void.
The charge is merely an accusation and White Eagle and Scott are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
White Eagle was released on bond to address separate state court charges and Scott was detained pending trial. A trial date has not been set.
Federal Jury Finds Lee County Man Guilty of False Tax Claims and Obstructing the Functions of the IRSRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Ronald F. Croteau guilty of ten counts of filing false tax claims and one count of obstructing or impeding the administration of the Internal Revenue laws. He faces a maximum penalty of five years in federal prison for each false claims count, and up to three years’ imprisonment for the obstruction offense. Croteau is being detained pending his sentencing hearing, which has been scheduled for April 20, 2015.
According to testimony and evidence presented at trial, Croteau belonged to a sovereign citizen, anti-government group; claimed to be a member of the Little Shell Pembina Band of North Dakota; and deemed himself to be an ambassador of the Kingdom of Heaven. Between September 2008 and May 2010, Croteau filed ten false and fraudulent income tax returns claiming refunds ranging from $46,701 to $957,670. These tax returns were false and fraudulent in that they claimed federal tax withholdings from fraudulent 1099-OID forms purportedly issued to Croteau by financial institutions. However, witnesses from the various financial institutions testified that the institutions did not create these forms and, in fact, had not withheld any federal income taxes for Croteau.
After being informed by the IRS that his income tax returns were frivolous, Croteau continued to file fraudulent income tax returns. In addition, he obstructed the administration of the Internal Revenue laws by filing false liens against IRS employees, submitting fraudulent instruments to the IRS in an attempt to discharge his tax liabilities, and recording false documents with the Lee County Clerk of Court.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Father and Son Sentenced to Federal Prison for Stealing Military EquipmentRead the Press Release
Ocala, Florida – Senior United States District Judge Wm. Terrell Hodges has sentenced Pedro Luis Infantes (47, Ocala) and his son, Luis Rafael Infantes (21, Elizabethtown, KY), to 21 months in federal prison for theft of government property. Both pleaded guilty last year.
According to their plea agreements, on July 11, 2014, Pedro Infantes and his son unwittingly met with a confidential source who was working in cooperation with law enforcement. The father and son approached the source about finding a buyer for stolen military equipment, as they believed that the source had connections to Mexican drug trafficking organizations. The father told the source that he had been removing serial numbers from the items so that they could not be traced. Ultimately, they negotiated a sale price of $153,500 for 17 military-grade, thermal-imaging monoculars, rifle cleaning kits, and other stolen military equipment.
When Pedro Infantes later attempted to complete the transaction, he was arrested and interviewed by the FBI. He then provided false statements to agents about how he had acquired the military items and how the serial numbers on the items had been removed, telling the agents that he had purchased the equipment in that condition at assorted gun shows. In reality, Luis Infantes, an active-duty soldier for the United States Army, had stolen the equipment from the Fort Knox military installation. A subsequent search of a storage unit rented by the father revealed additional stolen military equipment, including an aviation helmet, boxes of batteries, firearm accessories, and tactical gear.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Enid Tax Preparer Pleads Guilty to Filing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – CESAR E. LEON, owner and operator of Cesar’s Tax Service in Enid, Oklahoma, pleaded guilty this week to making and subscribing a false 2009 tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Leon was charged by information on January 12, 2015, with filing a false tax return for the 2009 calendar year. As part of his guilty plea, Leon admitted that he caused a tax loss amount of between $80,000.00 and $200,000.00 to the Internal Revenue Service (“IRS”). He further agreed to pay restitution to the IRS for all taxes due and owing for the 2008, 2009, 2010, 2011, and 2012 calendar years. At sentencing, Leon faces up to three years in prison and a $250,000 fine.
This case is the result of an investigation by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Lawrence Bowker, a/k/a Larry Bowker, age 47, was indicted on January 13, 2015. 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, 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 9, 2014, Bowker unlawfully assaulted an adult male with shod feet, resulting in serious bodily injury.
The charges are merely accusations and Bowker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Bowker was released on bond pending trial. A trial date has not been set.