Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 January 2015
Attorney Sentenced to 46 Months in Prison for his Role in Investment and Real Estate FraudsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, attorney was sentenced today to 46 months in prison for his role in a scheme that defrauded investors in connection with a Facebook IPO and several real estate deals, U.S. Attorney Paul J. Fishman announced.
Fred Todd, 61, of Lakewood, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of transacting in criminal proceeds.According to documents filed in this case and statements made in court:
Todd is an attorney with offices in Seaside Heights, New Jersey, and Los Angeles, California. His two co-defendants, Eliyahu Weinstein, 39, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to their roles in the scheme.
Weinstein, already convicted and sentenced to 22 years in prison in a separate Ponzi scheme, pleaded guilty on Sept. 3, 2014, to three counts of an indictment pending against him: one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering. He was sentenced on Dec. 15, 2014, on those charges to an additional two years in prison.
Glucksman has also pleaded guilty and was sentenced by Judge Pisano on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case.
In February 2012, Todd and his conspirators offered a pair of investors (referred to in the information as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by the conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use.
Around the same time, Todd and his conspirators also persuaded victims to invest in the purported purchase of an apartment complex in Florida. They told the victims that Weinstein had the opportunity to purchase the notes on the condominiums at a discounted price and immediately flip it at a substantial profit. The victims wired money to complete the purchase, but Todd and his conspirators instead used the money for their own purposes.
In addition to the prison term, Judge Pisano sentenced Todd to three years of supervised release and ordered him to pay restitution of $6.53 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Zach Intrater of the Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
15-025
Defense counsel: James Filan Esq., Westport, Conn.
Todd, Fred Information
Armed Athens Drug Dealer Sentenced to Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Shabazz Sangria Wingfield, age 22, from Athens, Georgia, was sentenced today by the Honorable C. Ashley Royal, United States District Judge in Athens, Georgia. Mr. Wingfield was sentenced to 60 months imprisonment for possession of a firearm in furtherance of a drug trafficking crime.Mr. Wingfield was stopped by officers with the Athens-Clarke County Police Department on November 21, 2013 on West Broad Street in Athens, Georgia after getting in a car which then committed a traffic violation. As part of his plea agreement, Mr. Wingfield admitted that when he got out of the car, an officer observed a piece of crack cocaine on the passenger seat where he had been sitting. A subsequent search revealed that Mr. Wingfield had a loaded 9mm semi-automatic pistol in his pants, along with crack cocaine, powder cocaine, oxycodone and marijuana.
“Although a young man, Shabazz Wingfield has already accumulated a regrettable number of arrests for charges involving firearms,” said U.S. Attorney Michael Moore. “I sincerely hope that Mr. Wingfield emerges after five years in federal prison as a changed man; in the meantime, the streets of Athens will be a safer place.”The case was investigated by the Athens-Clarke County Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Anderson Woman Gets Prison for Extensive Bank Fraud Scam and Environmental CrimeRead the Press Release
Contact Person: Will Lucius (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that NANCY MARIE STEIN, age 62, of Anderson, South Carolina , was sentenced by Senior United States District Judge Henry M. Herlong today in federal court in Greenville, to a total of 73 months in prison for six counts of violating Title 18, United States Code, Section 1344, commonly referred to as bank fraud; and 60 months for one count of violating Title 42, United States Code, Section 6928(d)(2)(A), for storing hazardous wastes without a permit. The sentences were ordered to run concurrently for a total sentence of 73 months. STEIN was also ordered to pay restitution in the amount of $17, 692, 974.00. STEIN’s Company, AMERICAN SREW AND RIVER CORPORATION (ASR) of Anderson, was placed on probation for 5 years and ordered also to pay restitution for its involvement in the bank fraud and storing hazardous wastes without a permit.
Both STEIN and ASR entered pleas of guilty to the charges on December 16, 2013. The case had originally been set for sentencing on July 15, 2014, but was continued due to issues raised by STEIN.
During the guilty plea hearing in December of 2013, the factual presentation revealed that had the cases had gone to trial, the Government would have presented evidence indicating that from at least 2004 and continuing until in 2011, while operating ASR, STEIN developed a scheme to defraud a number of financial institutions. As part of the ruse, STEIN created a number of fictitious manufacturing companies, organizations and business associations with apparent legitimate addresses, bank accounts and telephone numbers in various locations throughout the Southeast and the Midwest including Alabama, Georgia, Indiana, Ohio, and Pennsylvania. The addresses were mail drops, STEIN controlled the accounts, and the telephone numbers were answering services. One of the fictitious entities was an accounting firm which issued audits and financial statements attesting to the fiscal soundness of ASR.
STEIN would then apply to various financial institutions for loans for ASR. Often she would present to the institutions false invoices indicating that ASR had purchased types of specialized machinery from the fictitious vendors which could be used as collateral for loans. Often, STEIN would have the financial institutions forward the loan proceeds to the non-existent vendors’ accounts. The deception also involved removing legitimate identity plates on existing machinery at the ASR location and replacing them with false plates reflecting the serial numbers of the fictitious machines.
After a number of years of running the scheme, STEIN’s and ASR’s debts continued to grow, and ultimately, ASR’s creditors forced the company into involuntary bankruptcy in 2011. Thereafter, the United States Secret Service was asked to investigate. At least twenty six victim financial institutions were identified with cumulative losses in excess of $16 million. When the investigation focused on STEIN, in a statement to the Secret Service, she admitted what she had done and took full responsibility for the fraud.
Resident Agent in Charge of the Greenville, S.C. Office of the United States Secret Service, Thomas M. Griffin, stated: “Today's sentencing was the result of a criminal investigation which was initiated in 2010. The Secret Service utilized significant resources conducting interviews, reviewing bank records and other documents associated with the fraudulent loans obtained by these defendants. These investigative efforts have ensured that the defendants would be successfully brought to justice for the crimes which they committed.”
With respect to the environmental crime violation, the Government was prepared to show that some years prior to the involuntary bankruptcy, STEIN and ASR had been informed that they needed a permit from the South Carolina Department of Health and Environmental Control (DHEC) or from the United States Environmental Protection Agency (EPA) to store the large quantities of hazardous wastes generated by ASR’s manufacturing process. No permit to store hazardous waste was ever sought by STEIN or ASR or issued by EPA or DHEC.
In June, 2011, as a result of a DHEC search of ASR’s property, a large quantity of hazardous waste was discovered on site. Thereafter, more than 24,000 gallons of waste were removed from the sight and disposed of by EPA at a cost of approximately $1,720,000.00.
“For a number of years, the defendants stockpiled thousands of gallons of unpermitted hazardous waste at ASR’s location in Anderson,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in South Carolina. “This waste consisted of uncontained flammable and highly corrosive materials which were exposed to the elements. Today’s sentencing shows that those who refuse to comply with the law, putting public health and the environment at risk, will face the consequences in court.”
The cases were investigated by agents of the United States Secret Service, the Criminal Investigative Division of the United States Environmental Protection Agency, and prosecuted by Assistant United States Attorney William C. Lucius of Greenville.
#####Albany Man Pleads Guilty to Lottery FraudRead the Press Release
ALBANY, NEW YORK – On January 20, 2015, DOUGLAS E. WATSON, II, 30, of Albany, NY, pled guilty to three felony counts of mail fraud in connection with a lottery fraud scheme that targeted elderly victims, announced United States Attorney Richard S. Hartunian, United States Postal Inspection Service – Boston Division Inspector in Charge Shelly Binkowski, and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. Sentencing is scheduled for May 20, 2015, at 10:00 a.m. For each count of conviction, the defendant faces a maximum term of imprisonment of twenty years and a maximum fine of $250,000.
As part of the “advance fee fraud” scheme, victims were informed that they had won the New York State lottery but that they needed to send cash payments for taxes and processing fees to claim their winnings.
The defendant admitted that he received two packages from victims containing tens of thousands of dollars in cash and sent a false receipt to cover up the fraud. The defendant pled guilty immediately before a federal jury trial was set to begin in Albany before United States District Judge Mae A. D’Agostino.
The prosecution resulted from a joint investigation by the United States Postal Inspection Service, Homeland Security Investigations, the Pittsfield (Massachusetts) Police Department, and the Albany Police Department. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd.
20 January 2015
Woman, Two Men Indicted for Sexual Exploitation of ChildrenRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three southern Missouri residents were indicted by a federal grand jury today in separate and unrelated cases of sexual child exploitation.
USA v. Penn
Chelese Penn, 24, of Hartville, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Penn attempted to use a minor, identified as Jane Doe #1, to produce child pornography between July 1, 2012, and Oct. 3, 2014. Penn is also charged with receiving and distributing child pornography over the Internet during that time.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
USA v. Thomas
Kevin Robert Thomas, 42, of Bolivar, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Thomas received and distributed child pornography over the Internet from April 26 to May 2, 2013. Thomas is also charged with possessing child pornography on June 17, 2013.
The federal indictment also contains a forfeiture allegation, which would require Thomas to forfeit to the government a desktop computer and a laptop computer that were used to commit the alleged offenses.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cyber Crime Task Force, the Missouri State Highway Patrol, the Polk County, Mo., Sheriff’s Department and the Bolivar, Mo., Police Department.
USA v. Cannon
Christian Cannon, 42, of Lebanon, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Cannon received and distributed child pornography over the Internet between April 18 and July 21, 2014.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
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."
Wheeling Woman Sentenced to Probation for Counterfeit Currency ConspiracyRead the Press Release
PITTSBURGH – A resident of Wheeling, West Virginia, has been sentenced in federal court to two years probation and restitution on her conviction of conspiracy to pass counterfeit United States currency, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Senteria Nightengale, 42.
According to information presented to the court, Nightengale engaged in a conspiracy to pass counterfeit U.S. currency on Jan. 12, 2013.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Nightengale.
West Haven Couple Charged with Distributing HeroinRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ALYSSA JELLIFFE, 21, and CHRISTOPHER FOGLER, 29, both of West Haven, have been charged by criminal complaint with conspiring to distribute heroin.
JELLIFFE and FOGLER were arrested on Friday, January 16, and are currently detained. Detention hearings are scheduled for January 23 in Bridgeport federal court.
According to the criminal complaint, on January 12, 2015, a 39-year-old male died from an apparent heroin overdose at a residence in Milford. The investigation, which included analysis of text messages captured from the decedent’s cellular telephone, revealed that JELLIFFE and FOLGLER sold the decedent $170 worth of heroin on the evening of January 11, 2015.
On January 16, 2015, a court-authorized search of JELLIFFE and FOGLER’s residence revealed approximately 10 bags of heroin and assorted drug paraphernalia, including a digital scale, razor blades and cut straws.
JELLIFFE and FOGLER are each charged with conspiracy to possess with intent to distribute, and to distribute, heroin. The charge carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigating is being conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Visalia Woman Sentenced to over 3 Years in Prison for Filing False Tax Returns Using Stolen IdentitiesRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Rebekah Root, 34, of Visalia, today to three years and nine months in prison for wire fraud, making a false claim for a tax refund, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2011, Root obtained tax documents that were stolen from an Internal Revenue Service office in Visalia. She used those tax documents to submit false tax returns on behalf of six taxpayers, without their knowledge or permission, and claimed approximately $50,000 in fraudulent tax refunds.
This case was the product of an investigation by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant United States Attorneys Patrick R. Delahunty and Grant B. Rabenn prosecuted the case.
Verona Island Man Pleads Guilty to Firearm ChargeRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Oscar
Nunez, 28, of Verona Island, Maine, pleaded guilty today in U.S. District Court to unlawful possession of a firearm.Court records reveal that on July 23, 2012, investigators found a High Point .380 caliber semi-automatic handgun during the execution of a search warrant at the defendant’s Verona
Island residence. A Maine State Police Crime Lab forensic analyst found the defendant’s DNA on the handgun. The defendant was prohibited from possessing the handgun because of a prior felony conviction in New York for the criminal sale of a controlled substance.Nunez faces up to ten years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the Maine State Fire Marshal’s Office, the Maine Drug Enforcement Agency, the
Maine State Police as well as the Hancock and Penobscot County Sheriff Departments.USMS Captures Top 15 Subject Wanted in Murder of Army VeteranRead the Press Release
On January 15, 2015, U.S. Marshals Service (USMS) Top 15 Most Wanted fugitive Peter Castillo, wanted in Massachusetts for the killing of U.S. Army combat veteran Stephen Perez, was captured in the Dominican Republic. USMS Investigative Operations Division-International Investigations Branch (IOD-IIB) and Interpol Washington played a significant role in Castillo’s capture. Without the issuance of an Interpol Red Notice, and without inter-agency communication between Interpol Washington and Interpol Santo Domingo, Dominican authorities would not have taken Castillo into custody. Additionally, USMS/Interpol Washington coordinated the logistics surrounding Castillo’s overseas arrest, with the U.S. Department of Justice (DOJ)-Office of International Affairs (OIA).
http://www.usmarshals.gov/investigations/most_wanted/castillo/castillo-cap.htm
Two Yemeni Nationals Charged with Conspiring to Murder United States Nationals Abroad and Providing Material Support to Al-QaedaRead the Press Release
Defendants Allegedly Conspired to Carry Out Armed Attacks Against United States Military Personnel and Facilitated the Entry of an American Citizen into Al-Qaeda
A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Saddiq Al-Abbadi, also known as “Sufiyan al-Yemeni” and “Sufwan,” and Ali Alvi, also known as “Issa al-Yemeni,” with conspiracy to murder United States nationals abroad and providing material support to al-Qaeda. Alvi’s initial appearance was held before United States Magistrate Judge Steven I. Locke on Jan. 18, 2015, and Al-Abbadi’s initial appearance is scheduled today before United States Magistrate Judge Lois Bloom. Al-Abbadi and Alvi were arrested in Saudi Arabia pursuant to the pending warrants in this case and lawfully expelled to the United States.
The charges were announced by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
As alleged in the complaint, Al-Abbadi and Alvi are both members of al-Qaeda who engaged in attacks against United States military forces stationed in Afghanistan. Between 2003 and 2007, Al-Abbadi also fought against United States military forces in Iraq. In approximately March 2008, Al-Abbadi and Alvi traveled to the Federally Administered Tribal Areas of Pakistan for the purpose of training with and fighting for al-Qaeda. During that time period, both defendants helped an American citizen gain entry into al-Qaeda so that he could fight against U.S. troops in Afghanistan and U.S. citizens in the homeland.
In approximately late spring and summer 2008, Al-Abbadi and Alvi traveled from Pakistan to Afghanistan to conduct attacks against United States military personnel stationed there. Al-Abbadi led a battle against U.S. forces in Paktya Province in May 2008 during which one U.S. Army Ranger was killed and several others were seriously wounded.
“There is no escape from the reach of our law for violent terrorists, especially if they target our military,” stated United States Attorney Lynch. “Al-Abbadi and Alvi may have operated in the mountains of Afghanistan, but now they face justice in a courtroom in Brooklyn.” Ms. Lynch extended her grateful appreciation to the FBI.
“With the charges announced today, these defendants will face justice for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division. I want to thank the many agents, analysts, and prosecutors who are responsible for this matter.”
“The arrest and prosecution of these two individuals, who allegedly directly supported the mission of a designated terrorist organization, is a major step in the international cooperation to combat terrorism,” said FBI Assistant Director in Charge McCabe. “On a daily basis, the FBI is faced with a complex threat environment that is always evolving and changing. Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups and ensure that they are brought to justice.”
If convicted, each defendant faces a maximum sentence of life imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda, with assistance provided by Trial attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.
The Defendants:
SADDIQ AL-ABBADI
Age: 36
Nationality: Yemeni
ALI ALVI
Age: 30
Nationality: Yemeni
E.D.N.Y. Docket No. 09-MJ-372
Two Yemeni Nationals Charged with Conspiring to Murder United States Nationals Abroad and Providing Material Support to Al-QaedaRead the Press Release
A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Saddiq Al-Abbadi, also known as “Sufiyan al-Yemeni” and “Sufwan,” and Ali Alvi, also known as “Issa al-Yemeni,” with conspiracy to murder United States nationals abroad and providing material support to al-Qaeda. Alvi’s initial appearance was held before United States Magistrate Judge Steven I. Locke on January 18, 2015, and Al-Abbadi’s initial appearance is scheduled today before United States Magistrate Judge Lois Bloom. Al-Abbadi and Alvi were arrested in Saudi Arabia pursuant to the pending warrants in this case and lawfully expelled to the United States.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
As alleged in the complaint, Al-Abbadi and Alvi are both members of al-Qaeda who engaged in attacks against United States military forces stationed in Afghanistan. Between 2003 and 2007, Al-Abbadi also fought against United States military forces in Iraq. In approximately March 2008, Al-Abbadi and Alvi traveled to the Federally Administered Tribal Areas of Pakistan for the purpose of training with and fighting for al-Qaeda. During that time period, both defendants helped an American citizen gain entry into al-Qaeda so that he could fight against U.S. troops in Afghanistan and U.S. citizens in the homeland.
In approximately late spring and summer 2008, Al-Abbadi and Alvi traveled from Pakistan to Afghanistan to conduct attacks against United States military personnel stationed there. Al-Abbadi led a battle against U.S. forces in Paktya Province in May 2008 during which one U.S. Army Ranger was killed and several others were seriously wounded.
“There is no escape from the reach of our law for violent terrorists, especially if they target our military,” stated United States Attorney Lynch. “Al-Abbadi and Alvi may have operated in the mountains of Afghanistan, but now they face justice in a courtroom in Brooklyn.” Ms. Lynch extended her grateful appreciation to the FBI.
“With the charges announced today, these defendants will face justice for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division. I want to thank the many agents, analysts, and prosecutors who are responsible for this matter.”
“The arrest and prosecution of these two individuals, who allegedly directly supported the mission of a designated terrorist organization, is a major step in the international cooperation to combat terrorism,” said FBI Assistant Director in Charge McCabe. “On a daily basis, the FBI is faced with a complex threat environment that is always evolving and changing. Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups and ensure that they are brought to justice.”
If convicted, each defendant faces a maximum sentence of life imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda, with assistance provided by Trial attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.
The Defendants:
SADDIQ AL-ABBADI
Age: 36
Nationality: Yemeni
ALI ALVI
Age: 30
Nationality: Yemeni
E.D.N.Y. Docket No. 09-MJ-372
Traficante De Sexo Infantil Es Condenado A 10 Anos En Prision FederalRead the Press Release
Memphis, TN - Osbie Antonio Sea, a / k / a "Money", "Hard Money" y "Mr. Money ", (“Dinero”, Dinero Duro” and “Mr. Dinero”) de 32 años, de Memphis, TN, fue sentenciado el viernes a 10 años de prisión federal por conspiración para cometer tràfico sexual de un menor de edad, anunció Edward L. Stanton III, fiscal federal para el Distrito Oeste de Tennessee.
De acuerdo con la información y las afirmaciones hechas en audiencia pública, a principios de 2013, Sea entró en contacto con una chica que tenía 14 años de edad, mientras ella estaba de compras en un K-Mart en el àrea de Raleigh de Memphis. Sea se le presentó a ella como "Money", le entregó un volante, y le dijo la adolescente que lo llamara si quería hacer algo de dinero.
Poco tiempo después, a raíz de una discusión con un miembro de su familia, la víctima se escapó de su casa y llamó Sea. El primero se la llevó a su apartamento y después al Extended Stay America, cerca de la intersección de Kirby Parkway y Poplar Avenue. Según la víctima, Sea sabía que ella era menor de edad, pero ella se encargó de decirle a todos que ella tenía 18 años porque "sabía que podía meterse en problemas."
Durante su estancia en el hotel, Sea publicó fotos de la víctima en el sitio internet www.Backpage.com. La víctima declaró que había tenido relaciones sexuales con al menos dos personas por instrucciones de Sea y que Sea había tomado todo el dinero que había obtenido comercial de los actos sexuales.
Ademàs de la sentencia de prisión, el Juez de Distrito Principal J. Daniel Breen ordenó a Mar a cumplir cinco años de libertad supervisada. No hay libertad condicional en las prisiones de sistema federal.
Este caso fue investigado por la Agencia Federal de Investigaciones (FBI). La Fiscal Federal Auxiliar Leetra J. Harris representó al gobierno.
Version en Inglés
Third Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
A third member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” Leroux has been in custody since attempting to flee into Canada from Buffalo, New York, on June 16, 2014. A sentencing hearing is set before U.S. District Judge Judge Gregory M. Sleet of the District of Delaware on May 14, 2015.
Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Pokora’s guilty plea is believed to have been the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information. Charges against a fourth defendant, Austin Alcala, 19, of McCordsville, Indiana, remain pending.
According to Leroux’s admissions in connection with his guilty plea, he was part of the hacking conspiracy between January 2011 and September 2012. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works, and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Leroux admitted in court that he and others used the stolen intellectual property to build, and attempt to sell, counterfeit versions of the Xbox One console before its public release in November 2013. In July 2013, the FBI intercepted a counterfeit console built by Leroux, which was destined for the Republic of Seychelles.
Leroux also admitted that he developed a software exploit that allowed him and others to generate millions of “coins” for the FIFA soccer games playable on the Xbox Live platform. These coins are the virtual, in-game currency used to build a “FIFA Ultimate Team” in the games. Without the authorization of Electronic Arts, the intellectual property rights holder to the FIFA games, Leroux and others sold bulk quantities of the “FIFA coins” via online black markets.
The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada. The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
Third Member of International Computer Hacking Ring Pleads Guilty to Hacking and Intellectual Property Theft ConspiracyRead the Press Release
WILMINGTON, Del. – A third member of an international computer hacking ring has pled guilty to conspiring to break into computer networks of prominent technology companies and to steal more than $100 million in intellectual property and other proprietary data.
Nathan Leroux, 20, of Bowie, Maryland, pled guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” Leroux has been in custody since attempting to flee into Canada from Buffalo, New York, on June 16, 2014.
U.S. Attorney Charles M. Oberly III of the District of Delaware, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
“As the indictment charges, the members of this international hacking ring stole trade secret data used in high-tech American products, ranging from software that trains U.S. soldiers to fly Apache helicopters to Xbox games that entertain millions around the world,” said Assistant Attorney General Caldwell. “The American economy is driven by innovation. But American innovation is only valuable when it can be protected. Today’s guilty pleas show that we will protect America’s intellectual property from hackers, whether they hack from here or from abroad.”
“With this plea, we see not just rampant hacking and data theft, but the subsequent exploitation of stolen intellectual property to generate illicit funds online,” said U.S. Attorney Oberly.
“This group hacked into the computer systems of multiple companies, took their property and tried to make money capitalizing on someone else’s hard work and effort. When you put it in very simple terms, it’s theft and against the law. There are consequences to breaking the law in the U.S., whether you live here or in another country,” said Stephen Vogt, FBI Special Agent in Charge of the Baltimore Field Office.
Conspirators Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pled guilty to the same conspiracy charge on September 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Pokora’s plea is believed to be the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information. Charges against a fourth defendant, Austin Alcala, 19, of McCordsville, Indiana, remain pending.
According to the superseding indictment and other court records filed in support of today’s guilty plea, Leroux was part of the hacking conspiracy between January 2011 and September 2012. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation, and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works, and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.
Leroux admitted in court that he and others used the stolen intellectual property to build, and attempt to sell, counterfeit versions of the Xbox One console before its public release in November 2013. In July 2013, the FBI intercepted a counterfeit console built by Leroux, which was destined for the Republic of Seychelles.
Leroux also admitted that he developed a software exploit that allowed him and others to generate millions of “coins” for the FIFA soccer games playable on the Xbox Live platform. These coins are the virtual, in-game currency used to build a “FIFA Ultimate Team” in the games. Without the authorization of Electronic Arts, the intellectual property rights holder to the FIFA games, Leroux and others sold bulk quantities of the “FIFA coins” via online black markets.
The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, the U.S. Postal Inspection Service, the Canada Border Services Agency, the Western Australia Police and the Peel Regional Police of Ontario, Canada.
The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
See also: http://www.justice.gov/usao/de/news/2014/09-30.html
Tax Franchise Owner Sentenced to Two Years for Identity TheftRead the Press Release
NORFOLK, Va. – Sherry R. Kelley, 41, of Exmore, Va., was sentenced today to two years in prison, followed by one year of supervised release, for committing aggravated identity theft.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations Washington Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Captain Timothy A. Reibel, Virginia State Police Bureau of Criminal Investigations, made the announcement after Kelley's sentencing before Senior United States District Judge Robert G. Doumar.
A Norfolk federal grand jury indicted Kelley on June 18, 2014 on 10 counts of aggravated identity theft and 10 counts of using others' social security numbers. On September 16, 2014, Kelley pleaded guilty to aggravated identity theft, as charged in count one of the indictment.
According to court records, Kelley previously owned and operated four H & R Block tax franchise stores located in Belle Haven, Onley, Melfa, and Cheriton on Virginia's Eastern Shore. While overseeing the operation of these stores, Kelley gained access to and misused the identity information of approximately 20 tax clients. Unbeknownst to her clients or H & R Block, during a three year period Kelley electronically applied for and obtained 30 lines of credit from H & R Block Bank in her clients' names and forged her clients' signatures to account paperwork. Then, using debit cards issued with the approved credit lines, Kelley made thousands of dollars in purchases and ATM cash withdrawals against the fraudulently obtained accounts, before later repaying the sums taken.
This case was jointly investigated by agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the Virginia State Police. Assistant United States Attorney Robert J. Krask prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-92.Tangipahoa Parish Woman Sentenced for Concealing Fugitive from Federal AgentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SHANTELL WASHINGTON, age 43, of Independence, was sentenced today after having previously pled guilty to one count of misprision of a felony.
U.S. District Judge Jay C. Zainey sentenced WASHINGTON to three years’ probation.
According to court documents, agents with the Drug Enforcement Administration (DEA) and Tangipahoa Sheriff’s Office deputies were investigating Washington’s husband, JAMES BROWN, JR.., for heroin distribution beginning in July 2013. After having made several controlled purchases of heroin from BROWN, DEA agents obtained a federal warrant for his arrest. On November 21, 2013, agents went to BROWN’s residence to execute the warrant, but BROWN was not present at his home. Agents advised WASHINGTON that her husband was wanted for federal drug distribution charges, and that concealing him is a federal offense. WASHINGTON subsequently rented a hotel room for BROWN in Hammond, in order to conceal him from arrest. Federal authorities later located BROWN at the hotel room and arrested him. BROWN was convicted in federal court for conspiracy to distribute heroin and possession of a firearm as a convicted felon, and he was sentenced by Judge Zainey to 120 months in federal prison.
U.S. Attorney Polite praised the work of the DEA and the Tangipahoa Sheriff’s Office in investigating this matter. Assistant United States Attorney Matthew Payne was in charge of the prosecution.
St. Joseph Man Sentenced to 10 Years for Crack Cocaine, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for distributing crack cocaine and illegally possessing a firearm.
Brian K. Brewer, 23, of St. Joseph, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole.
On Aug. 5, 2014, Brewer pleaded guilty to distributing crack cocaine and carrying a firearm in relation to a drug-trafficking crime. Brewer admitted that he sold approximately one ounce of crack cocaine for $1,000 on April 14, 2011. Brewer also admitted that on that day he was in possession of a Glock .40-caliber handgun, which he sold for $500.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Buchanan County Sheriff’s Department.
Springfield Woman Pleads Guilty to All Charges related to Embezzlement from Former EmployerRead the Press Release
Springfield, Ill. – A Springfield, Ill., woman, Alice M. Foss, 53, entered pleas of guilty today to all the charges against her related to her embezzlement of more than $400,000 from her former employer, a Springfield consulting and lobbying firm. Foss’s pleas followed three days of evidence presented by the government in Foss’s jury trial which began last week.
In a hearing this morning before U.S. District Judge Sue E. Myerscough, Foss admitted that she embezzled money from Don Moss and Associates, a consulting and lobbying firm that specializes in services for disabled persons and other social causes. During the time of the fraud, from May 1997 to October 2009, Foss was employed as the firm’s chief financial officer, and in that capacity, had check-signing authority and control over the firm’s bank account and was responsible for paying the firm’s business expenses.Foss admitted that she repeatedly wrote herself fraudulent bonus checks from the firm’s bank account, for a total of approximately $144,852. Foss fraudulently and repeatedly wrote herself checks out of the DMA bank account, falsely representing that the checks were reimbursements for business expenses she incurred, when, in fact, she knew the false expenses were simply one of the means she used to conceal her embezzlement from DMA.
As part of the fraud scheme, Foss admitted that she repeatedly used DMA’s bank account and credit card account to pay personal expenses, including checks and wire transfers for personal car payments, donations to a private school, and mailing payments to personal credit cards, totaling more than $200,000. Foss used the DMA credit card to pay for personal expenses including payments for clothing, groceries, gas, car washes and rentals, hotel rooms, hair salon and spa expenses, and veterinary bills.
Sentencing is scheduled on May 26, 2015. Under terms of the plea agreement in this case, based on the parties’ agreement that the advisory sentencing guideline range is 46 to 57 months in prison, the government has agreed to recommend a sentence no greater than 57 months in prison. In addition, Foss agreed that the amount of restitution owed is in excess of $400,000. Foss was charged with mail fraud (five counts), wire fraud (seven counts), and access device fraud (one count.) Foss remains on bond pending sentencing.
The charges are the result of investigation by the U.S. Postal Inspection Service and the FBI. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.
South Shore Physicians Hospital Organization to Pay $1.775 Million for Alleged Kickbacks for Patient ReferralsRead the Press Release
State-Federal Agreement Alleges Defendants Operated Unlawful Grant Program
BOSTON – The South Shore Physician Hospital Organization (SSPHO) in South Weymouth has agreed to pay $1.775 million to settle allegations of operating a recruitment grant program through which it paid kickbacks to its physician members in exchange for patient referrals. The United States and the Commonwealth will share in this recovery.
Today, in a consent judgment, the South Shore Physician Hospital Organization, Inc. (SSPHO) and its member organizations, South Shore Hospital, Inc. and Physicians Organization of the South Shore, Inc., acknowledged that the SSPHO paid kickbacks in the form of cash grants to doctors who agreed to make referrals to SSPHO providers. From 2001 to 2010, SSPHO allegedly approved 103 separate recruitment grants to 33 different physician groups as part of this scheme. The recruitment grant program requested that grant recipients refer patients to participating providers, which included the South Shore Hospital.
“Unlawful patient referral schemes not only limit patient provider choices, but ultimately lead to higher health care costs,” said United States Attorney Carmen Ortiz. “Our close working relationship with the Commonwealth’s Attorney General’s Office on heathcare fraud matters including this one is a law enforcement partnership which puts patients care first and foremost.”
“Instead of giving patients lower cost options and flexibility in health care services, we allege these defendants looked to increase their referrals through an unlawful kickback operation,” Massachusetts Attorney General Coakley said. “We are pleased to have worked with our partners in federal law enforcement to ensure that improper incentives do not undermine the integrity of our healthcare system.”
According to the settlement, the defendants made disclosures about the recruitment grant program in 2012 to the Massachusetts Attorney General’s Office, the U.S. Department of Justice and the Office of Inspector General for the U.S. Department of Health and Human Services. The defendants cooperated fully with this investigation.
As a result of this conduct, SSPHO and its member organizations allegedly caused participating providers who received referrals from grant recipients to submit false claims for payment to the Medicare Program and the Massachusetts Medicaid program (MassHealth), because those claims were made in violation of the federal Anti-Kickback statute, and violated the Massachusetts Consumer Protection Act.
Under the terms of the settlement, SSPHO will pay a total of $1.775 million, including more than $620,000 to the Commonwealth, $310,625 of which will go directly to MassHealth. The remainder will be paid to the federal government.
This matter was jointly investigated by the U.S. Attorney’s Office for the District of Massachusetts, the U.S. Department of Health and Human Services, Office of Inspector General, and the Massachusetts Attorney General’s Office. This case was handled by Assistant U.S. Attorney George Henderson III and Assistant Attorneys General Courtney Aladro and Eric Gold of the Health Care Division and Assistant Attorney General Angela Neal of the Medicaid Fraud Division.
Sioux Falls Man Sentenced for Making Counterfeit CurrencyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Making Counterfeit Currency was sentenced on January 16, 2015, by U.S. District Judge Karen E. Schreier.
Joshua Shane Lajoie, age 29, was sentenced to 30 months in custody, to be followed by 2 years of supervised release. He was also ordered to make restitution of $560 to various businesses in the Sioux Falls area.
Lajoie was indicted by a federal grand jury on June 3, 2014, for one count of Making Counterfeit Currency, three counts of Passing Counterfeit Currency, and one count of Possession Of Counterfeit Currency. He pled guilty to the Making Counterfeit Currency charge on September 23, 2014. The other charges were dismissed.
The Sioux Falls Police Department received reports from several Sioux Falls businesses that they had received counterfeit $20 bills in late November and December of 2013. An investigation led to the arrest of several individuals, including Lajoie. It was determined that Lajoie had been making the counterfeit money and used it to purchase drugs. In turn, the sellers of the drugs spent the counterfeit money. It is estimated that 116 counterfeit $20 bills were passed in the area.
This case was investigated by the Sioux Falls Police Department, the Minnehaha County Sheriff’s Office, and the U.S. Secret Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Lajoie was immediately turned over to the custody of the U.S. Marshals Service.
Rochester Man Sentenced for Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Derek T. Floyd, a/k/a Derek Floyd, Jr., 40, of Rochester, NY, who was convicted of bank fraud and violating a previously imposed term of supervised release, was sentenced by U.S. District Judge Charles J. Siragusa to 77 monnhs in prison. The defendant was also ordered to pay restitution totaling $47,232.09.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between April 2011 and December 2013, the defendant intercepted checks to which he was not entitled. Floyd then used the information on the checks to create new checks, payable to the names of other individuals. Associates of the defendant then cashed and attempted to cash the fraudulent checks at banks throughout the area. During the time period, individuals attempted to cash checks valued at a total of $92,627.92, for a total loss of $47,232.09.
By being convicted of bank fraud, Floyd, who was serving a term of supervised release for a prior federal conviction, violated the terms of his supervised release.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster, Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Inspector in Charge, Shelly A. Binkowski, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Ontario Sheriff’s Department, under the direction of Sheriff Phillip Povero.
Robber Dubbed “Alabama Band Robber” Pleads Guilty to 2014 Bank Robbery SpreeRead the Press Release
A serial bank robber dubbed the “Alabama Band Robber” because of a hat he wore, pleaded guilty today in U.S. District Court in Seattle to five counts of bank robbery and one count of possession of a stolen firearm, announced Acting United States Attorney Annette L. Hayes. MICHAEL RYAN HARDESTY, 40, of Woodinville, Washington was arrested August 19, 2014, after law enforcement linked him to five bank robberies in King, Snohomish and Whatcom Counties. When HARDESTY is sentenced on April 23, 2015, both sides agree to recommend a sentenced between nine and 13 years in prison. However, U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can impose any sentence allowed by law.
According to records filed in the case, HARDESTY was identified as a suspect in multiple bank robberies after the FBI released surveillance photos from the banks and dubbed him the “Alabama Band Robber” because of a hat that had the band’s distinctive name above the brim. He wore the hat in the July 11, 2014 robbery. A tipster identified the robber from the photos. HARDESTY pleaded guilty to the following robberies:
Bank of America, Martha Lake Branch, Lynnwood, July 7, 2014
Whidbey Island Bank, North Seattle Branch, July 11, 2014
Washington Federal, Bakerview Branch, Bellingham, July 18, 2014
Washington Federal, Lakeview Branch, Bellingham, July 25, 2014
Wells Fargo, Martha Lake Branch, Lynnwood, July 30, 2014
Law enforcement identified two cars associated with HARDESTY. One car was located in Burlington, Washington, but HARDESTY was able to evade police. Later, the Snohomish County Violent Offender Task Force (SCVOTF) located HARDESTY on I-5 in Snohomish County. He fled on foot and was ultimately apprehended by a K-9 who tracked him to the 12700 block of 3rd Avenue West. Law enforcement discovered a stolen firearm in HARDESTY’s belongings. A total of nearly $35,000 was stolen in the five robberies.
The case is being prosecuted by Assistant United States Attorney J. Tate London.
Several agencies were involved in the bank robbery investigation, as well as searching for the suspect, including the FBI’s Seattle Safe Streets Task Force, King County Sheriff’s Office, Whatcom County Sheriff’s Office, Bellingham Police, Mt. Vernon Police, Burlington Police and Child Protective Services. The Snohomish County Violent Offender Task Force is a multi-agency unit partnership with the Snohomish County Sheriff’s Office, U.S. Marshals Service and Department of Corrections.Portland Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Anthony Thea, 20, of Portland, Maine, pled guilty today in U.S. District Court to transportation and possession of child pornography.According to court records, in August 2014, an undercover federal agent identified a computer later traced to Thea making images of child pornography available for download via a peer-to-peer file sharing program. On October 9, 2014, federal agents executed a search warrant at an apartment in South Portland where Thea occasionally stayed and seized a laptop. Thea admitted owning the laptop and using a peer-to-peer file sharing program to download images of child pornography. He also said that he had used his cellular telephone to make video recordings of minors in public restrooms and saved them on his computer.
A forensic analysis of the laptop’s hard drive revealed 2,680 still images and 903 videos of child pornography and about 80 digital recordings of minor males urinating in restrooms that
Thea recorded between June 2011 and May 2013 without the knowledge or consent of the victims.
Thea faces between five and 20 years in prison on the transportation count and up to 20 years on the possession count. He also faces a fine of up to $250,000, and supervised release of up to life on each count. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations, with the assistance of the South Portland Police Department.Pennsylvania Man Sentenced to Sixty-three Months in Federal Prison for Drug Distribution and Conspiracy to Commit Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ronald Belciano, age 42, of Newtown Square, Pennsylvania was sentenced today by United States District Court Chief Judge Christopher C. Conner in Harrisburg to 63 months’ imprisonment and 4 years supervised release of conspiracy to distribute 100 kilograms of marijuana in and through central Pennsylvania and conspiracy to commit money laundering between December 2007 and November 2011.
According to U.S. Attorney Peter Smith, in 2011 Belciano rented a vehicle and paid a co-conspirator to drive the vehicle, containing $1,184,340 in U.S. currency, from Pennsylvania to California to pay for marijuana, some of which was grown on Belciano’s 190 acre property in Northern California. Agents obtained a search warrant for one of Belciano’s homes, located in Villanova, Pennsylvania. During the search, agents located $2, 582,920 in U.S. currency and 1.5 kilograms of marijuana. Law enforcement agents later located 68 kilograms of marijuana, $316,800 in U.S. currency and 59 paintings valued at over $600,000 in a storage locker and at a co-conspirator’s farm in Douglasville, Pennsylvania, used to warehouse and distribute the marijuana transported from California to Pennsylvania. Belciano was indicted by a grand jury in November 2011 and plead guilty in February 2014.
The assets seized and forfeited in this case, including a residence, a 190-acre property in Laytonville, California, the artwork obtained with proceeds of the illegal activity and later appraised at over $619,000, and $4,084,060 in U.S. currency.
Co-defendant Stephen Fanfera is scheduled for sentencing on January 22, 2015. Fifty thousand dollars in cash was forfeited in lieu of the equity in his Douglasville property. In a related case prosecuted by the U.S. Attorney’s Office in Philadelphia, a Villinova art dealer Nathan Isen was charged with money laundering on January 8, 2015.
“Today’s sentencing concludes a long term investigation on a drug trafficker who was living on the Main Line of Philadelphia,” said John Kelleghan, HSI Philadelphia special agent in charge. “When HSI, the Pennsylvania State Police, the United States Attorney’s Office, Pennsylvania Attorney General Bureau of Narcotics Investigations, Internal Revenue Service, Philadelphia Police Department, and the Philadelphia District Attorney’s Office are able to seize over $4 million in cash, narcotics, and other assets derived from distributing narcotics from a main line drug trafficker, we know we have successfully dismantled a large scale sophisticated organization.”
This case was investigated by Homeland Security Investigations/High Intensity Drug Trafficking Area/Financial Group which includes members from the Pennsylvania State Police, Pennsylvania Attorney General Bureau of Narcotics Investigations, Internal Revenue Service, Philadelphia Police Department, and the Philadelphia District Attorney’s Office. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Pennsylvania Man Pleads Guilty to Selling 12 Gauge Pistol made from Modified Flare GunRead the Press Release
Also illegally sold practice grenade fuses
ALEXANDRIA, Va. – Eric Mark Way, 29, of Aliquippa, Pennsylvania, pleaded guilty today to charges of transferring an illegally modified flare gun.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Way was charged via a one count criminal information. Way faces a maximum penalty of 10 years in prison when sentenced on April 10, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with the plea agreement, Way sold multiple modified flare gun kits. These kits consisted of a flare gun, an insert that converted the legal signaling device into an illegal 12 gauge device, and a canvass carrying pouch. One the individuals who purchased this modified weapon from Way was a violent, convicted felon. In addition to selling the modified flare guns, Way was also caught illegally selling M228 practice grenade fuses. In order to sell these fuses, both the seller and purchaser must possess a federal explosives license. Way does not have a federal explosives license.
This case was investigated by ATF. Assistant U.S. Attorney Zachary Terwilliger and Special Assistant United States Attorney Caroline Friedman are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15CR08.New York Man Indicted for Attempting to Acquire Deadly Toxin, RicinRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director-in-Charge George Venizelos of the FBI’s New York Office, announced today that a federal grand jury returned a two-count indictment against Cheng Le for attempting to acquire and distribute ricin and committing postal fraud. Le was arrested on Dec. 23, 2014, by the FBI in Manhattan. He was presented on a Complaint before the U.S. Magistrate Judge James C. Francis IV on Dec. 24, 2014, and has been detained since his arrest. He is expected to be arraigned on Friday, January 23, 2015, before the United States District Judge Alison J. Nathan.
“As alleged, Cheng Le attempted to acquire ricin, a potentially lethal toxin, through the Dark Web so that it could be used for deadly purposes,” said U.S. Attorney Bharara. “Thankfully, with the help of our law enforcement partners he was intercepted and must now answer for his alleged crimes.”
“In the shadows of the Dark Web, criminals hide behind a veil of anonymity, sniffing out hidden opportunities to buy and sell illegal and potentially dangerous merchandise,” said Assistant Director-in-Charge Venizelos. “As alleged, in this case, activity carried out in the marketplace served as a conduit for Le to obtain ricin. In his desire to acquire this potentially deadly toxin, he picked his own poison and now faces the consequences of the justice system.”
According to the Complaint, which was unsealed today in Manhattan federal court, and the indictment:
Ricin is a highly potent and potentially fatal toxin with no known antidote. In December 2014, an individual (the Ricin Buyer) contacted an FBI online covert employee (the OCE) on an online forum. During Dec. 2014, the Ricin Buyer exchanged a series of messages with the OCE, during which the Ricin Buyer explored the possibility of the OCE supplying the Ricin Buyer with ricin, for the Ricin Buyer to resell to at least one secondary buyer.
On or about Dec. 18, 2014, the Ricin Buyer directed the OCE to send a quantity of ricin to a particular postal box in Manhattan (the Postal Box). The FBI later determined that the Postal Box belonged to Cheng Le. Later that same day, FBI agents observed Le wear latex gloves while retrieving a package from the Postal Box (the Package) and mailing it at a nearby post office (the Post Office). Law enforcement officers examined the Package, confirmed that it did not contain any hazardous materials, and determined that Le had listed a fake name as the Package’s return address. A postal employee (the Postal Employee) informed the FBI that the Postal Employee had seen Le at the Post Office on multiple prior occasions and that Le has worn blue latex gloves on at least some of those occasions.
The FBI prepared a package (the Sham Shipment) that was consistent with the Ricin Buyer’s request to the OCE, which was then delivered to the Postal Box. On Dec. 23, 2014, Le, wearing latex gloves, retrieved the Sham Shipment, opened it, and took the contents to his apartment, whereupon he was arrested by FBI agents.
* * *
The indictment charges Le, 21, in two counts. Count One charges Le with attempting to possess a biological toxin for use as a weapon, and carries a maximum sentence of life in prison. Count Two charges Le with using a fictitious name in furtherance of unlawful business involving the mail, and carries a maximum sentence of five years’ imprisonment. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Assistant Attorney General Carlin is grateful for the outstanding investigative efforts of the FBI, the New York City Police Department (NYPD) and the United States Postal Inspection Service (USPIS). Le’s arrest is the result of the close cooperative efforts of the Justice Department’s National Security Division, U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force—which consists of law enforcement officers of the FBI, NYPD, USPIS and other agencies.
The case is being prosecuted by the office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty are in charge of the prosecution, with assistance provided by Trial Attorney Joseph Kaster of the Justice Department’s Counterterrorism Section.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Indictment
Complaint
New Jersey Man Sentenced to Ten Years in Prison for Sexual Offense with A MinorRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Robert Joseph Butler, age 27, of Clayton, New Jersey, was sentenced today to 120 months in federal prison and five years of supervised release for each count of Transporting a Minor in Interstate Commerce with the Intent to Engage in Sexual Activity and Sexual Assault. The sentences will run concurrent with each other. The Honorable P.K. Holmes III in the United States District Court for the Western District of Arkansas in Fort Smith presided over the sentencing.
U.S. Attorney Eldridge commented, “There is no higher priority in our office than cases involving crimes against children. The AMBER Alert system, which Arkansas implemented in 2001, was a critical instrument in the successful recovery of this young victim, as were the efforts of our partnering agencies in the investigation. We remain steadfast in our commitment to identifying and prosecuting those who commit federal crimes targeting children, including those like the defendant who seek to contact children over the internet for sexual purposes.”
Crawford County Sheriff Ron Brown stated, “Fortunately, this case had a good ending. During the investigation it was discovered that the abductor had hidden out in rural Crawford County and disguised the stolen car by painting it a different color because of the AMBER Alerts. This signifies the importance and success of the AMBER Alert System. I commend the Deputy U.S. Marshals and the Sheriff Deputies who were able to locate the victim and apprehend her abductor, and the U.S. Attorney’s office for presenting a solid case of which brought the abductor to this sentencing date.”
“FBI Arkansas commends the work by the U.S. Marshal Service, Crawford County Sheriff’s Office, and the U.S. Attorney’s Office, rescuing this child, apprehending the subject, and prosecuting this offense,” said David T. Resch, Special Agent in Charge at the Little Rock Federal Bureau of Investigation, “Our children are targeted each day, but Arkansans should be proud of the consistent cooperation exhibited as we all work to protect them.”
According to court records, Butler communicated with the fourteen-year-old minor victim through social media and text messaging for over a year before meeting her for the first time at her home in New Mexico in late 2013. The two remained in contact, and on March 31, 2014, Butler made arrangements to meet the minor victim in Albuquerque, New Mexico. At the pre-arranged meeting, the two decided to leave town and began traveling through Texas, Oklahoma, and ultimately the Western District of Arkansas. During their travels, Butler engaged in sexual activity with the minor. On April 17, 2014, deputies with the United States Marshal Service and Crawford County Sheriff’s Office located Butler and the minor victim in Fort Smith, Arkansas and placed Butler under arrest. Later, Butler admitted to an FBI Special Agent that he knew the minor was fourteen years old when he met her. Butler pleaded guilty to the charges on August 29, 2014.
This case was investigated by the Crawford County Sheriff’s Office, the U.S. Marshal’s Service and the FBI. Assistant U. S. Attorney Kyra Jenner prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), 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.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
New Haven Man Involved in Marriage Fraud Scheme Is SentencedRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SYED NAQSHBAND, 33, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to three months of home confinement and three years of probation for his role in a marriage fraud scheme.
According to court documents and statements made in court, between July and August 2013, NAQSHBAND persuaded a female friend, who is a U.S. citizen, to travel with him to Pakistan and marry his nephew so that the nephew, a citizen of Pakistan, could enter the U.S. NAQSHBAND offered to help pay the woman’s travel expenses and assured her she would not have to live with his nephew once they returned to the U.S.
The scheme was disrupted just before the planned travel when the woman, accompanied by NAQSHBAND, applied for a U.S. Passport and the U.S. Passport Office alerted the FBI of certain suspicious observations.
On October 31, 2014, NAQSHBAND pleaded guilty to one count of conspiracy to commit marriage fraud.
This matter was investigated by the Federal Bureau of Investigation Joint Terrorism Task Force, the Bureau of Diplomatic Security, the U.S. Passport Office, Homeland Security Investigations and the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Mountain Region Drug Task Force reflects on successful 2014, looks forward to 2015Read the Press Release
ELKINS, WEST VIRGINIA – The leaders of the Mountain Region Drug and Violent Crime Task Force announced the results of their collaborative efforts in 2014 and discussed what they hope to accomplish in 2015, including forming a stronger partnership with the public.
According to its board members, Mountain Region Drug Task Force investigations led to a total of 47 individuals being prosecuted in federal court last year. The prosecutions were for a variety of offenses, including methamphetamine distribution (23), prescription pills (17), marijuana (4), cocaine (2), and unlawful possession of firearms (1). Noteworthy prosecutions in 2014 included:
- Michael Wayne Johnson, of Elkins, West Virginia, who was sentenced to 120 months in prison for methamphetamine trafficking in Randolph County.
- John A. Boyles, of Kerens, West Virginia, was sentenced to 97 months in prison for crack cocaine distribution in Tucker County. His wife, Arica Boyles, was also convicted of cocaine distribution. She faces up to 20 years in prison and a fine of up to $1,000,000 when she is sentenced.
- Elizabeth Allison Sweatt, of Nice, California, was convicted of marijuana trafficking after authorities discovered that she was shipping marijuana from California to Randolph County, West Virginia for redistribution and sale. She was sentenced to five years of probation and ordered to forfeit $15,402.98 in U.S. currency and to pay a money judgment in the amount of $60,000.00.
- Arnold Lee Mayle, of Canton Ohio, and Dorothy Ellen Metz, of Athens, Georgia, were both convicted of selling prescription painkillers. Metz was sentenced to twelve months and one day in prison.
- Shawn David White and Christina Lee Kimble, both of Bartow, West Virginia, were convicted for methamphetamine trafficking in Pocahontas, Randolph, and Harrison counties. White faces up to 10 years in prison and Kimble faces up to 20 years in prison. They each face a fine of up to $250,000.00.
- Matthew L. Cordero, of Vineland, New Jersey, Jonathan Paul Calain, of Elkins, West Virginia, and two additional West Virginia residents, were charged with oxycodone trafficking in a 17-count superseding indictment. In addition to prison sentences, the Defendants face a money judgment of nearly $400,000.00.
In 2014, Defendants investigated by the Task Force were required to forfeit more than $31,000 in U.S. currency, two residences used to distribute controlled substances, two motor vehicles, multiple firearms, and money judgments in excess of $400,000.
“The Mountain Region Drug Task Force had an extremely successful 2014,” commented United States Attorney William J. Ihlenfeld, II. “Enhanced cooperation among law enforcement agencies has proven to be effective, and the Task Force has made it increasingly difficult for drug suppliers from different states to conduct business in North Central West Virginia. In the past year, we have successfully identified and prosecuted drug suppliers from Pennsylvania, Ohio, Georgia, New Jersey, Michigan, Florida and California. We hope that the public will join the fight in 2015 by supplying information to our hotline.”
The Task Force was formed in the fall of 2013 and is comprised of representatives from the U.S. Attorney’s Office, the Drug Enforcement Administration, the U.S. Forest Service, the West Virginia State Police, the Tucker County Sheriff and Prosecuting Attorney’s Offices, the Randolph County Sheriff and Prosecuting Attorney’s Offices, and the Pocahontas County Prosecuting Attorney’s Offices. Task Force investigations are also supported by the United States Postal Inspection Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Task force board members are pleased with the results produced by the unit.
“I believe that the Mountain Region Drug Task Force has been very effective in promoting the sharing of information and utilizing investigative resources for the benefit of all member agencies and jurisdictions,” reflected Randolph County Prosecuting Attorney Michael Parker. “The task force continues to do vital work to combat drug and violent crimes in Randolph, Tucker, and Pocahontas counties and has the full support of the Randolph County Prosecuting Attorney’s Office.”
“The Mountain Region Drug Task Force has brought greater cooperation between all levels of law enforcement,” stated Tucker County Prosecuting Attorney Raymond LaMora, III. “Even though we have not seen an uptick in state prosecutions, the information developed in many Tucker County investigations has led to federal indictments and prosecutions in surrounding counties. Each arrest, and each prosecution in our region, is a benefit to our county as the flow of narcotics begins to trickle less and less into the homes of our communities.”
Individuals with information on drug activity in the region are encouraged to call the Task Force hotline at 304-636-TIPS. Regular updates on the work of the Task Force are available at mountainregiondtf.com and via the official Twitter feed of the United States Attorney’s Office, @NDWVnews.
Mountain City Resident Sentenced for Role in Methamphetamine Manufacturing ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 20, 2015, the last of 42 individuals charged in related methamphetamine manufacturing cases was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge. Tony Jerome Snyder, 37, of Mountain City, Tenn., was sentenced to serve 135 months in federal prison for conspiring to manufacture more than 50 grams of methamphetamine. Upon his release from prison, he will be supervised for five years by U.S. Probation. There is no parole in the federal system.
Snyder and 19 others were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. Twenty-two others were also indicted in related methamphetamine manufacturing cases arising from the same investigation. All have now been sentenced.
The charges stemmed from a lengthy investigation spanning from 2006 to 2013 wherein these individuals conspired to obtain pseudoephedrine and other products needed to manufacture methamphetamine from various sources in the Eastern District of Tennessee, Western District of North Carolina, and Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine was used and distributed throughout the Eastern District of Tennessee.
U.S. Attorney Bill Killian praised the efforts of law enforcement involved in these cases stating, “These cases demonstrate the tremendous impact that collaborative investigations among law enforcement agencies can help to combat methamphetamine production and distribution. Our office has worked hard to help reduce the number of methamphetamine labs in east Tennessee and will continue to aggressively prosecute these cases.”
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Methamphetamine Task Force, Watauga County (North Carolina) Sheriff’s Office, and Drug Enforcement Administration. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represent the United States.
Morgan Hill Engineer Sentenced to 59 Months in Prison for Possessing Child PornographyRead the Press Release
SAN JOSE, CA—Paul Lawrence Vella was sentenced on January 15, 2015, to 59 months in prison for possession of child pornography, announced United States Attorney Melinda Haag, and Tatum King, acting special agent in charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) San Francisco.
On August 4, 2014, Vella pleaded guilty to possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). In pleading guilty, Vella, 60, of Morgan Hill, Calif., admitted that he used his computer to download child pornography through a P2P network and saved those images on hard drives, discs, and other digital medium. Vella also admitted that he knowingly possessed over 600 images of child pornography, including images of prepubescent minors and images portraying sadistic or masochistic conduct. Vella further admitted that law enforcement had identified approximately 86,284 images and 2,162 videos of child pornography, and that the National Center for Missing and Exploited Children identified 915 known child victims from his collection of child pornography. Filed documents and statements in open court confirmed that Vella possessed one of the largest collections of child pornography ever discovered in Silicon Valley, including numerous images and videos depicting the forcible rape of, and other sadistic violence against, very young children.
The Honorable Edward J. Davila, U.S. District Court Judge, handed down the 59 month sentence. Judge Davila also sentenced the defendant to a seven year period of supervised release, ordered him to register as a sex offender, to participate in a sex offender treatment program, and to pay $29,500 in restitution. Vella has been in federal custody since he pleaded guilty on August 4, 2014
Assistant U.S. Attorneys Joseph Fazioli and Daniel Kaleba prosecuted the case with the assistance of Laurie Worthen. The prosecution is a result of an investigation by HSI and the Santa Clara County Sheriff’s Office.
Manhattan U.S. Attorney and FBI Assistant Director Announce Arrest of New York Man for Attempting to Acquire Deadly Toxin, RicinRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that a federal grand jury returned a two-count Indictment against CHENG LE for attempting to acquire and distribute ricin and committing postal fraud. LE was arrested in Manhattan on December 23, 2014, by the FBI. He was presented before the U.S. Magistrate Judge James C. Francis IV on December 24, 2014, and has been detained since his arrest. He is expected to be arraigned on Friday, January 23, 2015, before the United States District Judge Alison J. Nathan.
U.S. Attorney Preet Bharara said: “As alleged, Cheng Le attempted to acquire ricin, a potentially lethal toxin, through the Dark Web so that it could be used for deadly purposes. Thankfully, with the help of our law enforcement partners he was intercepted and must now answer for his alleged crimes.”
Assistant Director-in-Charge George Venizelos said: “In the shadows of the Dark Web, criminals hide behind a veil of anonymity, sniffing out hidden opportunities to buy and sell illegal and potentially dangerous merchandise. As alleged, in this case, activity carried out in the marketplace served as a conduit for Le to obtain ricin. In his desire to acquire this potentially deadly toxin, he picked his own poison and now faces the consequences of the justice system.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court, and the Indictment:
Ricin is a highly potent and potentially fatal toxin with no known antidote. The “Dark Web” is a colloquial name for a number of extensive, sophisticated, and widely used online criminal marketplaces, which allow participants to buy and sell illegal items, including ricin.
In early December 2014, an individual (the “Ricin Buyer”) contacted an FBI online covert employee (the “OCE”) on a particular Dark Web marketplace using an encrypted messaging service. In December of 2014, the Ricin Buyer exchanged a series of messages with the OCE, during which the Ricin Buyer explored the possibility of the OCE supplying the Ricin Buyer with ricin, for the Ricin Buyer to resell to at least one secondary buyer.
The Ricin Buyer’s messages to the OCE included the following:
- “If [the ricin’s] good quality, I’ve already had buyers lining up.”
- “Does ricin have antidote? Last I check there isn’t one, isn’t it?”
- “I probably told you this before, about mixing one and only one toxic pill into a bottle of normal pills. They all look identical. And as the target takes the medicine every day, sooner or later he’d ingest that poisonous pill and die. Even if there is a murder investigation, they won’t find any more toxin. 100% Risk Free.”
- “I’ll be trying out new methods in the future. After all, it is death itself we’re selling here, and the more risk-free, the more efficient we can make it, the better.”
- “Also, besides that one bottle of pills with one poisonous pill in there, can you send some extra loose powder/liquid ricin? I’d like to test something.”
On December 18, 2014, the Ricin Buyer directed the OCE to send a quantity of ricin to a particular postal box in Manhattan (the “Postal Box”). The FBI later determined that the Postal Box belonged to CHENG LE. Later that same day, FBI agents observed LE wear latex gloves while retrieving a package from the Postal Box (the “Package”) and mailing it at a nearby post office (the “Post Office”). Law enforcement officers examined the Package, confirmed that it did not contain any hazardous materials, and determined that LE had listed a fake name as the Package’s return address. A postal employee (the “Postal Employee”) told the FBI that the Postal Employee had seen LE at the Post Office on multiple prior occasions and that LE had worn blue latex gloves on at least some of those occasions.
On December 22, 2014, the FBI prepared a mock shipment of ricin (the “Sham Shipment”) that was consistent with the Ricin Buyer’s request to the OCE. The Sham Shipment included both a fake “ricin” tablet concealed in a pill bottle (the “Pill Bottle”), and a quantity of loose fake “ricin” powder. The next day, the Sham Shipment was delivered to the Postal Box. LE, wearing latex gloves, retrieved the Sham Shipment, opened it, and took the contents to his apartment. When FBI agents entered LE’s apartment to arrest LE and to search the apartment, pursuant to a search warrant, they saw the Pill Bottle open in his apartment.
The Indictment charges LE, 21, of New York, New York with one count of attempting to possess a biological toxin for use as a weapon, which carries a maximum sentence of life in prison, and one count of using a fictitious name in furtherance of unlawful business involving the mail, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the outstanding investigative efforts of the FBI, the New York City Police Department (“NYPD”), and the United States Postal Inspection Service (“USPIS”). LE’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, USPIS, and other agencies – and the National Security Division of the U.S. Department of Justice.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v. Cheng Le Indictment
US v. Cheng Le ComplaintLeader of Las Vegas Playboy Bloods Street Gang Sentenced to 23 Years in PrisonRead the Press Release
A leader of the Las Vegas Playboy Bloods street gang was sentenced to 23 years in prison today for engaging in a racketeering conspiracy and possessing crack cocaine with the intent to distribute it, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
Markette Tillman, 31, of Las Vegas, Nevada, pleaded guilty on July 29, 2014, two days into his jury trial, before U.S. District Judge Kent J. Dawson of the District of Nevada.
According to Tillman’s plea agreement and evidence presented at trial, the Bloods is a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the national Bloods gang with local control and operation within the Las Vegas metropolitan area. The Playboy Bloods operate primarily in the Sherman Gardens Annex, a Las Vegas public housing complex commonly called the “Jets.”
Tillman admitted that on Jan. 20, 2004, he aided and abetted the murder of a security guard at the Jets. The guard approached Tillman and several other Playboy Bloods and told them to leave the property. An argument ensued and the guard rode away on his bicycle to get help. One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him.
Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf. Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine over the course of the racketeering conspiracy.
Tillman was the last of 10 gang members charged in the indictment filed in 2008 to be sentenced. The nine other convicted gang members received the following sentences:
-
Jacorey Taylor, aka “Mo-B,” 31, was sentenced to life in prison on Oct. 21, 2013, after being convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, engaging in a drug-trafficking conspiracy and possessing crack cocaine with the intent to distribute it.
-
Steven Booth, aka “Stevie-P,” 27, was sentenced to 20 years in prison on April 10, 2013, after pleading guilty to engaging in a racketeering conspiracy involving two murders.
-
Reginald Dunlap, aka “Bowlie,” 30, was sentenced to 20 years in prison on April 9, 2013, after pleading guilty to engaging in a racketeering conspiracy involving one murder.
-
Demichael Burks, aka “Mikey P,” 29, was sentenced to 6 ½ years in prison on Dec. 3, 2010, after pleading guilty to engaging in a racketeering conspiracy.
-
Anthony Mabry, aka “Akim Slim,” 43, was sentenced to 14 years in prison on Oct. 20, 2010, after pleading guilty to engaging in a racketeering conspiracy.
-
Delvin Ward, aka “D-Luv,” 37, was sentenced to 11 years in prison on Sept. 17, 2010, after pleading guilty to engaging in a racketeering conspiracy.
-
Terrence Thomas, aka “Seven,” 40, was sentenced to 10 years in prison on June 16, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.
-
Sebastian Wigg, aka “Rock,” 36, was sentenced to five years in prison on March 29, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.
-
Fred Nix, aka “June P,” 36, was sentenced to five years in prison on March 29, 2010, after pleading guilty to engaging in a drug-trafficking conspiracy.
The case was investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and was prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Nicholas D. Dickinson and Phillip N. Smith Jr. of the District of Nevada.
-
Lea County Man Sentenced to Twelve and a Half Years for Violating Federal Firearms LawsRead the Press Release
Little Prosecuted as Part of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Cody Allen Little, 34, of Lovington, N.M., was sentenced today in federal court in Las Cruces, N.M., to 150 months in federal prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Lea County Sheriff Steve Ackerman.
U.S. Attorney Damon P. Martinez said that Little was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“It is an honor to work with our federal partners to take dangerous criminals off our streets,” said 5th Judicial District Attorney Janetta B. Hicks.
“This investigation is an example of the hard work of ATF special agents and the excellent cooperation we have with our law enforcement partners. Because of this cooperation, we were able to seize these stolen firearms and remove them from this prohibited possessor,” said Special Agent in Charge Thomas G. Atteberry. “This sentence sends a clear message that gun crime equals hard time. The success of this investigation is attributed to the excellent undercover work that was conducted and the solid partnership between ATF, our law enforcement partners, and the United States Attorney’s Office.”
Little was arrested on a criminal complaint in June 2012, and subsequently was charged with being a felon in possession of firearms and ammunition and possession of stolen firearms in a superseding indictment. The superseding indictment alleged that Little unlawfully possessed firearms and ammunition, including a stolen assault rifle and a stolen shotgun, on Nov. 1, 2011, in Lea County, N.M. At the time, Little was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 5th Judicial District Court for the State of New Mexico in Lea County: (1) burglary, battery on a peace officer and possession of drug paraphernalia, (2) battery on a peace officer and resisting an officer, and (3) burglary and larceny.
On May 21, 2013, a federal jury found Little guilty on both counts of the superseding indictment. The trial evidence established that on the night of Oct. 24, 2011, the “Southwest Arms,” a gun shop in Lovington owned and operated by a federal firearms licensee (FFL), was burglarized and seven weapons, including several assault rifles, were stolen. Within days, law enforcement authorities and the FFL received tips leading them to focus on Little, who was renting in a converted well-house located on a residential property less than half a mile away from the gun shop, as a potential suspect in the burglary.
On Nov. 1, 2011, officers went to the residential property on which the well-house was located to follow up on the tips. While speaking with an individual at the residence, the officers saw Little walk out of the well-house and away from the area where the officers were standing, and disappear from sight. When an officer walked to the area where Little was last seen, he observed a storage shed with its doors secured in the open position. Glancing into the shed, the officer observed parts of an AR 15 style assault rifle and AR 15 style assault rifles in plain view.
After obtaining a search warrant for the property, officers recovered two firearms and ammunition from the well-house where Little was living. The first firearm, a .308 caliber assault rifle with a loaded 19-round magazine, was found inside a sleeping bag in the well-house. The second, a 12 gauge shotgun, was found under the bed in the well-house. Two shot gun shells were found on a shelf above the bed. Both firearms were among the weapons stolen from the gun shop on Oct. 24, 2011. After confirming that Little was residing in the well-house, the officers arrested Little on state charges on Nov. 2, 2011. The state charges against Little were dismissed after he was arrested on federal charges.
The case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the 5th Judicial District Attorney’s Office, the Lovington Police Department and the Lea County Sheriff’s Department, and was prosecuted by Assistant U.S. Attorneys Marisa A. Lizarraga and Shaheen P. Torgoley.
Key Player in ‘Silk Road 2.0’ Arrested in BellevueRead the Press Release
A Bellevue, Washington resident who assisted in the management of the Silk Road 2.0 website was arrested late last week on a complaint charging him with conspiracy to distribute heroin, methamphetamine, and cocaine, announced Acting United States Attorney Annette L. Hayes. BRIAN RICHARD FARRELL, 26, who used the moniker “DoctorClu” on the Silk Road site came to the attention of Homeland Security Investigations agents last July. Silk Road 2.0 was a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. The investigation of FARRELL resulted in a search warrant that was served earlier this month, and the arrest of FARRELL. He will appear in U.S. District Court in Seattle at 2:00 PM today.
“The arrest of Mr. Farrell is proof that federal law enforcement continues its efforts to root out those who subvert the Internet to set up black markets for illegal goods,” said Acting U.S. Attorney Annette L. Hayes. “Those who attempt to hide their tracks using sophisticated computer networks will be found because of the determined work of law enforcement agencies such as Homeland Security Investigations, the U.S. Postal Inspection Service and the FBI.”
“The coordinated efforts of U.S. and international law enforcement agencies to disrupt anonymous black market websites continues to pay off with this arrest,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “It is one of HSI’s top priorities to shutdown these hidden websites and bring their criminal operators and customers to justice."
According to the criminal complaint, Silk Road 2.0 went online in November 2013 following the government’s seizure of the first Silk Road website and the arrest of its alleged owner and operator, Ross William Ulbricht, a/k/a “Dread Pirate Roberts.” In November 2014, Blake Benthall, a/k/a “Defcon,” the operator of the Silk Road 2.0 site, was arrested in San Francisco. The complaint filed today charges that FARRELL was a key assistant to Benthall in running the site.
“Silk Road 2.0” was one of the most extensive, sophisticated, and widely used criminal marketplaces on the Internet. The website operated on the “Tor” network, a network of computers on the Internet, located around the world, designed to ‘anonymize’ or conceal the true IP addresses of computers that used the network and thereby the identities of the network’s users. Since its launch in November 2013, Silk Road 2.0 was used by thousands of drug dealers and other vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to buyers throughout the world, as well as to launder millions of dollars generated by these unlawful transactions. As of September 2014, Silk Road 2.0 was generating sales of at least approximately $8 million per month and had approximately 150,000 active users.
FARRELL was one of the small staff of online administrators and forum moderators who assisted Blake Benthall with the day-to-day operation of the website. Benthall and this small staff controlled and oversaw all aspects of Silk Road 2.0, including, among other things: the computer infrastructure and programming code underlying the website; the terms of service and commission rates imposed on vendors and customers of the website; and the massive profits generated from the operation of the illegal business. The complaint alleges that FARRELL, operating under the moniker “DoctorClu,” was involved in activities such as approving new staff and vendors for the website, and organizing a denial of service attack on a competitor. When the search warrant was served at FARRELL’s Bellevue home, agents seized $35,000 in cash as well as silver bullion and various types of drug paraphernalia.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Seattle-Tacoma Border Enforcement Security Task Force (BEST Seattle), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Postal Inspection Service (USPIS), and the FBI. The case is being prosecuted by Assistant United States Attorney Thomas Woods.
BEST Seattle is comprised of members from HSI; U.S. Customs and Border Protection's Office of Field Operations; the U.S. Secret Service; the U.S. Coast Guard Investigative Service; the USPIS; and the Seattle and Port of Seattle police department. BEST Seattle investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.
Kentucky woman sentenced for arranging drug buysRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Tonda Click, 58, of Ashland, Kentucky, was sentenced to five years of federal probation.
Click pleaded guilty in September 2014, to using a telephone to facilitate a drug crime. On Dec. 26, 2013, Click made a series of calls to a known dealer to arrange the sale of cocaine to a third party.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The case was investigated by the Drug Enforcement Agency, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department. Assistant United States Attorney Greg McVey was in charge of the prosecution.
###
Justice Department and the City of Albuquerque Jointly Select Independent Monitor to Oversee Police ReformsRead the Press Release
The Justice Department announced today that, jointly with the city of Albuquerque, it is notifying the District Court of the selection of Dr. James R. Ginger—a nationally recognized expert on police reform and organizational change—as the independent monitor of the settlement agreement entered into by the department and the city of Albuquerque to reform the Albuquerque Police Department (APD). Ginger and his team will be responsible for independently assessing the full implementation of the settlement agreement; reporting on the status of compliance to the court, the parties and the community; assisting the parties in resolving compliance challenges that may emerge; and providing technical guidance as needed to the APD.
Ginger has successfully overseen similar court-enforceable agreements aimed at increasing community trust and implementing sustainable police reforms. He has first-hand experience in ensuring critical reform across the country and a proven record of timely implementing reform. He was appointed as independent monitor over the first consent decree ever obtained by the Justice Department in Pittsburgh, Pennsylvania, as part of its enforcement of civil rights laws aimed at ensuring constitutional and effective policing. He worked closely with the parties and the Pittsburgh Bureau of Police to implement comprehensive reforms, designed to address excessive use of force, false arrests, improper searches and seizures, failures in the disciplinary system and inadequate first-line supervision. He was also appointed as monitor over the consent decree involving the New Jersey State Police and its efforts to eradicate discriminatory policing practices. Ginger has been a leader in developing monitoring technologies and methodologies used in evaluating compliance with federal consent decrees. Ginger has also worked with law enforcement agencies in New York, Ohio, Texas, Florida, Georgia, Alabama, Indiana and others. He is currently the Chief Executive Officer of Public Management Resources Inc. (PMR) and is responsible for strategic planning, marketing, budgeting and management.
Before founding PMR, Ginger worked as an Associate Professor of Criminal Justice, Executive Director for the Center of Justice Policy, Deputy Director of the Police Foundation and Director of the Southern Police Institute. Ginger was credited with planning, developing and implementing a nationwide technical assistance and training project for the United States Bureau of Justice Assistance and developing nation-wide programs as part of the Southern Police Institute.
The monitoring team led by Ginger includes experts who have proven experience in assessing reform similar to those contained in the settlement agreement with Albuquerque. The members of the monitoring team will include, among others, G. Patrick Gallagher, President of the Gallagher-Westfall Group; Dan Giaquinto, legal specialist and partner at Kern, Augustine, Conroy, & Schoppman, P.C.; Phil Coyne, Principal of Coyne Enterprise Solutions LLC; Mary Kealoha, Vice-President of the Gallagher-Westfall Group; Albert Preik, former Training Director for the Pittsburgh Bureau of Police; Peter Sarna, nationally recognized expert in police training and use of force; and Dave Torres, former Commandant of the New Jersey State Police training academy.
“We thank all of the individuals and firms that submitted letters of interest to serve as monitor and for their many accomplishments,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The decision to select the most qualified candidate from among the field was not an easy one, and we thank the community and other stakeholders for their input on this critical step of the implementation process.”
“Dr. Ginger’s proven success with police departments and criminal justice systems in the United States will assist in promoting compliance with critical structural and systemic reforms that are necessary to restoring public confidence and achieving effective and constitutional policing in Albuquerque,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are pleased to have worked collaboratively with the City to select Dr. Ginger, who we believe is uniquely positioned to assess and report on the Albuquerque Police Department’s reform efforts.”
Ginger’s application materials can be found here.
A copy of the complaint, the final agreement can be found at www.justice.gov/crt/about/spl.
Justice Department and the City of Albuquerque Jointly Select Independent Monitor to Oversee Police ReformsRead the Press Release
ALBUQUERQUE – The Justice Department announced today that, jointly with the city of Albuquerque, it is notifying the District Court of the selection of Dr. James R. Ginger – a nationally recognized expert on police reform and organizational change – as the independent monitor of the settlement agreement entered into by the department and the city of Albuquerque to reform the Albuquerque Police Department (APD). Ginger and his team will be responsible for independently assessing the full implementation of the settlement agreement; reporting on the status of compliance to the court, the parties and the community; assisting the parties in resolving compliance challenges that may emerge; and providing technical guidance as needed to the APD.
Ginger has successfully overseen similar court-enforceable agreements aimed at increasing community trust and implementing sustainable police reforms. He has first-hand experience in ensuring critical reform across the country and a proven record of timely implementing reform. He was appointed as independent monitor over the first consent decree ever obtained by the Justice Department in Pittsburgh, Pennsylvania, as part of its enforcement of civil rights laws aimed at ensuring constitutional and effective policing. He worked closely with the parties and the Pittsburgh Bureau of Police to implement comprehensive reforms, designed to address excessive use of force, false arrests, improper searches and seizures, failures in the disciplinary system and inadequate first-line supervision. He was also appointed as monitor over the consent decree involving the New Jersey State Police and its efforts to eradicate discriminatory policing practices. Ginger has been a leader in developing monitoring technologies and methodologies used in evaluating compliance with federal consent decrees. Ginger has also worked with law enforcement agencies in New York, Ohio, Texas, Florida, Georgia, Alabama, Indiana and others. He is currently the Chief Executive Officer of Public Management Resources Inc. (PMR) and is responsible for strategic planning, marketing, budgeting and management.
Before founding PMR, Ginger worked as an Associate Professor of Criminal Justice, Executive Director for the Center of Justice Policy, Deputy Director of the Police Foundation and Director of the Southern Police Institute. Ginger was credited with planning, developing and implementing a nationwide technical assistance and training project for the United States Bureau of Justice Assistance and developing nation-wide programs as part of the Southern Police Institute.
The monitoring team led by Ginger includes experts who have proven experience in assessing reform similar to those contained in the settlement agreement with Albuquerque. The members of the monitoring team will include, among others, G. Patrick Gallagher, President of the Gallagher-Westfall Group; Dan Giaquinto, legal specialist and partner at Kern, Augustine, Conroy, & Schoppman, P.C.; Phil Coyne, Principal of Coyne Enterprise Solutions LLC; Mary Kealoha, Vice-President of the Gallagher-Westfall Group; Albert Preik, former Training Director for the Pittsburgh Bureau of Police; Peter Sarna, nationally recognized expert in police training and use of force; and Dave Torres, former Commandant of the New Jersey State Police training academy.
“We thank all of the individuals and firms that submitted letters of interest to serve as monitor and for their many accomplishments,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The decision to select the most qualified candidate from among the field was not an easy one, and we thank the community and other stakeholders for their input on this critical step of the implementation process.”
“Dr. Ginger’s proven success with police departments and criminal justice systems in the United States will assist in promoting compliance with critical structural and systemic reforms that are necessary to restoring public confidence and achieving effective and constitutional policing in Albuquerque,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are pleased to have worked collaboratively with the City to select Dr. Ginger, who we believe is uniquely positioned to assess and report on the Albuquerque Police Department’s reform efforts.”
Ginger’s application materials can be found here.
The complaint, the final agreement, and other information regarding this matter can be found at http://www.justice.gov/usao/nm/APD.html and www.justice.gov/crt/about/spl.
Jury Convicts Three Gang Members and A Former El Paso County Juvenile Probation Officer of Federal Sex Trafficking ChargesRead the Press Release
In El Paso, a federal jury convicted four Folk Nation/Gangster Disciples members, one of whom was a former juvenile probation officer, of federal sex trafficking charges announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On Friday, jurors returned guilty verdicts against gang members Deion Lockhart, age 26, Richard Gray, age 25, and Emmanual Lockhart, age 24, and Timothy McCullouch, Jr. a 29-year-old former El Paso County juvenile probation officer of one count of conspiracy to commit sex trafficking of persons. Jurors also convicted: Deion Lockhart of one count of sex trafficking by force, fraud and coercion and one count of aiding and abetting sex trafficking of children; Richard Gray, one count of sex trafficking by force, fraud and coercion, one count of sex trafficking of children and one count of transportation for prostitution; and, Timothy McCullouch, one count of sex trafficking of children.
Testimony during trial revealed that between May 2012 and March 2013, the defendants were involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang. The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and, in Colorado.
Each defendant faces up to life in federal prison. Sentencing is scheduled for April 2015, before U.S. District Judge Philip R. Martinez.
Two fellow gang members and co-defendants pleaded guilty prior to trial. In May of last year, Tai Von Lynch and Brandon Shapiro pleaded guilty to conspiracy to commit sex trafficking of persons. On October 28, 2014, Lynch was sentenced to 15 years in federal prison followed by five years of supervised release and ordered to pay a $2,500 fine. Shapiro, who remains in custody, is awaiting sentencing scheduled for February. He faces an agreed sentence of five years in federal prison.
In a separate, but related matter, Folk Nation/Gangster Disciples members Kiry Hakeem Nalls, age 25, and Grant Rutledge, age 25, were sentenced to federal prison for their roles in a forced prostitution scheme. In April 2014, Nalls was sentenced to ten years in federal prison followed by five years of supervised release and fined $2,500 after pleading guilty to one count of forced labor. In March 2014, Rutlege was sentenced to ten months in federal prison followed by five years of supervised release and fined $500 after pleading guilty to one count of misprision of felony.
These task force investigations were conducted by the ACTeam (Anti-Trafficking Coordination Team) comprised of personnel from Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), U.S. Department of Labor and the United States Attorney’s Office together with the El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“This verdict is a major victory for HSI and its law enforcement partners within the ACTeam,” said HSI Special Agent in Charge Waldemar Rodriguez. “HSI plans to employ its ample authority, resources and resolve to investigate human trafficking activity in our community, identify and rescue victims, and bring traffickers to justice."
“The FBI has a zero tolerance on Human Trafficking and all traffickers, whether gang members or government employees, and will be aggressively pursued and held accountable,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these cases on behalf of the Government.
Jamaican National Sentenced for Illegal Re-Entry and Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Carl Spencer, a/k/a Carl Spence, a/k/a Barrington Antonio Stewart, a/k/a Clyde Crenshaw, 51, of Kingston, Jamaica national, who was convicted by a federal jury of illegal re-entry and aggravated identity theft, was sentenced to 66 months in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney John J. Field, who handled the case, stated that Spencer was previously deported and removed in 2006 after being prosecuted and convicted of drug crimes. On November 9, 2012, the defendant was found by agents with Immigration and Customs Enforcement. When stopped by agents, Spencer presented a fake Georgia driver’s license in the name of Clyde Crenshaw, a United States citizen and resident of the NYC area.
The verdict is the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Ironworkers Business Manager Convicted in Racketeering ConspiracyRead the Press Release
PHILADELPHIA – Joseph Dougherty, 73, of Philadelphia, former Secretary/Business Manager of Local 401, was found guilty today, by a federal jury, of racketeering conspiracy and other charges connected to a dozen members of Ironworkers Local 401. The jury returned guilty verdicts on the counts of RICO conspiracy, malicious damage to property by means of fire, use of fire to commit a felony, attempted malicious damage to property by means of fire, and conspiracy to damage to property by means of fire. The 11 co-defendants in the case pleaded guilty. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for April 29, 2015.
The indictment details incidents in which the defendants threatened or assaulted contractors or their employees, and damaged construction equipment and job sites as part of a concerted effort to force contractors to hire and pay Local 401 workers, even when those workers performed no function.
The defendants had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members. The business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. The defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.”
At sentencing, Dougherty faces a mandatory minimum term of 15 years in prison up to a statutory maximum of 110 years.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Howes Man Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Howes, South Dakota, man has been indicted by a federal grand jury for Larceny.
Leland Logg, age 38, was indicted on January 13, 2015. He 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 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. Restitution may also be ordered.
The Indictment alleges that on or between April 7, 2014, and June 20, 2014, Logg took and carried away, with the intent to steal and purloin, money, funds, and assets, which were the personal property of Dakota Oyate Challenge Basketball Tournament, and had a value of more than $1,000.
The charge is merely an accusation and Logg is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Logg was released on bond pending trial. A trial date has not been set.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDUIN ALEXANDER BETANCOURTH-SALGADO, age 27, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Jay C. Zainey sentenced BETANCOURTH-SALGADO to two months imprisonment followed by one year of supervised release, and a $100 special assessment. Following his incarceration, BETANCOURTH-SALGADO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about November 10, 2014, BETANCOURTH-SALGADO was encountered by agents of the Immigration and Customs Enforcement outside the Jefferson Parish Juvenile Court. ICE agents interviewed BETANCOURTH-SALGADO regarding his immigration status and he admitted to agents that he had illegally reentered the United States after having been deported. An ICE records check confirmed that BETANCOURTH-SALGADO was in fact a citizen of Honduras who had been deported from the United States on April 15, 2011. ICE agents arrested BETANCOURTH-SALGADO and placed an immigration hold on him.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Harrold Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Harrold, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Lonnie Patrick Big Eagle, age 38, was indicted on January 13, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction 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. Restitution may also be ordered.
The Indictment alleges that between August 9, 2014, and August 10, 2014, Big Eagle committed a domestic assault upon his common law wife, causing substantial bodily injury. At the time of the assault, Big Eagle had a final conviction, on at least two separate prior occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The charge is merely an accusation and Big Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Division. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Big Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Grand Prairie, Texas, Real Estate Investor Sentenced to Federal Prison for Conspiring to Commit Wire FraudRead the Press Release
FORT WORTH, Texas — A local real estate investor, who operated Steelman Homes, was sentenced today for his role in a wire fraud conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Calvin Richard Ford, 45, most recently of Grand Prairie, Texas, was sentenced today by U.S. District Judge Terry R. Means to 37 months in federal prison and ordered to pay $433,849 in restitution to Fannie Mae and Freddie Mac. Ford pleaded guilty on June 18, 2014, to an Information charging one count of conspiracy to commit wire fraud. He must surrender to the Bureau of Prisons on February 9, 2015.
Ford admitted that he conspired to defraud Colorado Federal Savings Bank. According to documents filed in the case, Ford encouraged people to buy homes as investments, and he told these potential investors that he would arrange to have the homes they purchased rented and would make all of the necessary mortgage payments from the rental proceeds.
Ford purchased the homes and then sold them to investors at an inflated price. To ensure these investors could qualify for the loans they needed to purchase the homes from him, Ford gave them money from the sales proceeds that they could use as a down payment. This arrangement was intended to deceive lenders into believing the investors had sufficient assets to make a down payment. The arrangement, however, was not disclosed on the HUD-1 forms or loan applications.
After selling the homes to investors, Ford often failed to find renters and did not pay the mortgages as promised. Consequently, the mortgages went unpaid and homes went into foreclosure. Ford sold more than 80 properties to investors during the course of the scheme.
The Federal Housing Finance Agency – Office of Inspector General and the FBI investigated.
Golden Grove Corrections Officer Pleads Guilty to Providing Prison ContrabandRead the Press Release
St. Croix, USVI – Former Virgin Islands Bureau of Corrections (BOC) officer Marcel Scotland pleaded guilty Friday in District Court on St. Croix to providing prison contraband, announced United States Attorney Ronald W. Sharpe and Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito S. Guarino.
According to the plea agreement filed with the court, on January 31, 2014, Scotland appeared for work at the Golden Grove Correctional Facility on St. Croix where he was employed as a corrections officer. As he entered the Golden Grove facility, he was asked topresent his bag for a search by a BOC official. When the official took possession of Scotland's bag, Scotland fled. A search of the bag revealed multiple cigarette lighters, rolling papers, cookies, multiple dime baggies, and a bag of marijuana. The BOC official called the Virgin Islands Police (VIPD), and VIPD notified the DEA. Scotland subsequently surrendered and told the DEA that he brought the items for an inmate but was unaware that drugs were present.
“It is a violation of federal and local law to introduce, or attempt to introduce, contraband into a prison or detention facility,” U.S. Attorney Sharpe said.
A sentencing date has been set for May 20, 2015. Scotland faces up to five years in prison and a fine of up to $250,000.00.
The case was investigated by the DEA and VIPD. It was prosecuted by Assistant U.S. Attorney Alphonso Andrews.
Georgia Men Sentenced for Recruiting Local Homeless Men in Check Cashing RingRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shrerod Terry, age 37, and Akram H. Muhammad, age 37, both of Atlanta, Georgia, were sentenced today in federal court in Greenville, for conspiracy to negotiate counterfeit checks, a violation of Title 18, United States Code, Section 371. Senior United States District Judge Henry M. Herlong of Greenville imposed a 15-month sentence for Terry and a 24-month sentence for Muhammad. He ordered the men to pay over $23,000 in restitution.
Evidence from the change of plea hearing established that Terry and Muhammad traveled from Atlanta, Georgia, to Greenville. The men went to “Tent City,” a known location in Greenville for homeless people. Terry and Muhammad proceeded to recruit homeless people to cash counterfeit checks for them. Terry and Muhammad would provide the homeless recruits with clean clothes, a place to wash up, and then would take them to various banks to negotiate the counterfeit checks. The activities of the duo were first discovered by deputies with the Greenville County Sheriff’s Office when conducting a traffic stop. A K-9 alerted on the vehicle and a small quantity of marijuana was discovered during a search. While looking for additional drugs, deputies discovered counterfeit checks and called Inspectors from the U.S. Postal Inspection Service for assistance. Law enforcement estimates that Terry and Muhammad used homeless people to cash $23,159.56 in counterfeit checks before they were apprehended.
The case was investigated by deputies of the Greenville County Sheriff’s Office and agents of the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Fourth Laguna Pueblo Member Sentenced for Assault Conviction Arising Out of Drive-By Shooting of Acoma Pueblo HomeRead the Press Release
ALBUQUERQUE – Andrea Carrillo, 22, a member of the Laguna Pueblo, N.M., was sentenced this afternoon in federal court to 21 months in federal prison followed by two years of supervised release for her assault conviction arising out of the drive-by shooting of an Acoma Pueblo home.
Carrillo is the last of four members of Laguna Pueblo to be sentenced in this case. Her three co-defendants three were sentenced in Dec. 2014, based on guilty pleas to assault charges. Preston Chino, 22, and Cameron Joseph Kasero, 21, were each sentenced on Dec. 2, 2014, to 96 months in federal prison followed by three years of supervised release. Joseph Edward Lucero, 25, was sentenced on Dec. 9, 2014, to 74 months in federal prison followed by two years of supervised release.
The four co-defendants were indicted on assault and firearms offenses in July 2013. The indictment alleged that the quartet assaulted two men and a woman on Dec. 9, 2012, by discharging firearms at a residence located in Acoma Pueblo in Cibola County, N.M.Chino pled guilty on Aug. 27, 2014, and admitted aiding Kasero and Lucero in assaulting the victims by providing them with shotguns and ammunition. He also admitted driving them to the victims’ Acoma Pueblo home where they discharged the shotguns multiple times in the direction of the residence. Kasero pled guilty on Sept. 2, 2014, and admitted assaulting the victims by discharging a shotgun at a residence while it was occupied by the victims. Lucero pled guilty on Sept. 9, 2014, and admitted repeatedly discharging a weapon at the victims’ residence.
Carrillo pled guilty on Sept. 2, 2014, and admitted aiding the assault on the victims by providing her co-defendants with directions to the residence while knowing that they intended to commit an assault at that location.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, the Acoma Pueblo Tribal Police Department and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Four Men Plead Guilty in International Counterfeit Currency ConspiracyRead the Press Release
ALEXANDRIA, Va. – Itzhak Loz, 47, and Ronen Fakiro, 47, both of Rishon Le Zion, Israel, along with brothers Arkadiy Bangiyev, age 37, of Rego Park, New York, and Eduard Bangiyev, age 39 of Forest Hills, New York, have all pleaded guilty to RICO conspiracy involving multiple acts of counterfeiting of U.S. currency and money structuring.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Joseph Clancy, Acting Director of the United States Secret Service, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady.
According to court documents filed in this case, Loz, Fakiro, and the Bangiyev brothers participated in a criminal enterprise that engaged in multiple acts involving counterfeiting of U.S. currency and money structuring. From 2004 through 2014, the Bangiyevs distributed counterfeit high-quality $50 and $100 federal reserve notes that were manufactured in Israel and the United States by Itzhak Loz and others through the off-set printing process. Beginning around January 2014, Fakiro and Loz imported into the United States from Canada and Israel numerous printing presses and machines. They shipped this printing equipment to a warehouse they purchased in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes. At the New Jersey warehouse, Fakiro and Loz manufactured over $2.56 million worth of counterfeit $100 notes. In addition, Fakiro and Loz were in the process of counterfeiting the $100 note released in October 2013 at the New Jersey warehouse, including certain security features for the $100 note, including watermarks, security thread simulations and blue 3-D ribbons. In May 2014, the U.S. Secret Service seized approximately $2.56 million worth of counterfeit $100 notes from a storage unit leased by Loz in New York. According to the United States Secret Service, over $86 million in counterfeit U.S. currency linked to this organization have been passed or seized by law enforcement globally since 1999.
Loz, Fakiro and the Bangiyev brothers were indicted by a federal grand jury on August 7, 2014. Loz will be sentenced on May 15, 2015. Fakiro will be sentenced on May 8, 2015. The Bangiyevs will be sentenced on May 1, 2015. All four face a maximum penalty of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Secret Service. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon L. Kromberg are prosecuting the case on behalf of the United States.Tweet